Full text of Commercial and Financial Chronicle : May 10, 1956, Vol. 183, No. 5532, Section 1

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

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>

to

1

I

-

.

I

OF MICHIGAN

MAY 14 1956
ESTABLISHED 1S39

Section 1

In 2 Sections

muni

fuc. U. 8. Pat. Office

New York

Number 5532

Volume 183

Price 40

7, N. Y., Thursday, May 10, 1956

EDITORIAL

;

[

" In reply to

feSe,? Jt

Seating

Mr. Martin describes Board's

was a

in order to prevent

! believe,

loan demands

Mr. Khrushchev is said to have added,
I that they have a superior, economic and social
so

on

horizontal business movement
when slowly rising production and
expenditures in all principal categories except inventories
will set in—providing restrictive credit policy is changed
to allow above seasonal bank credit growth. Discusses:

continuation

borrowers from crowding banks with
scale greater than average

a

normal

into monetary

system and that they intend to do all they can

the frame work of peace to see that it
its superiority by ultimately push¬
ing the so-called free enterprise system off the
map. This profession, for the once in the case of
the Soviets, seems to conform very well with the
actions of the Kremlin. At any rate, the so-called
Western World, particularly possibly the United
States, appears to have come to the conclusion
that this is precisely the strategy of the Kremlin
v under its new leadership: Planning ways of meetring the challenge thus thrown down appears ac¬
cordingly to be absorbing a large part of the
attention of a large part of the non-communist
i demonstrates

Reiterates Board's limitation in

keeping

employment level requiring $13 billion increase in GNP,
and (4) the fall in farm products prices preventing n
rise in wholesale price index.

.

economy pros¬
The Extended Horizontal Movement of

,

without inflation.

perous

from

the

reason

the

Principal Economic Series

More than a generation ago, President Wilson ex¬
plained that his passionate belief in democracy stemmed

•

present

unions

policy decisions: (1) recognition of Treas¬
ury needs and responsibilities;
(2) meeting business
seasonal needs; (3) relating growth in money supply to
economy's growth; (4) adjusting to psychological
changes, and (5) counteracting inflation or deflation.

j within

of

(1) planned plant and equipment expenditures; (2)
and slowly rising prices; (3) maintenance of

Enunciates five basic considerations entering

growth.

problem confronting As

until fourth quarter

policy of letting supply and

demand for credit be reflected in market rates of interest

the realm of peace or at least short of war. They

Harvard University

is opposite that envisaged by Keynes. Foresees

economy

Federal Reserve System

,

belief in "peaceful coexistence," but

^competitive coexistence—competitive, that is, in.
;

Professor Slichter finds savings

Chairman, Board of Governors of the

j effect that he and his confreres were quite sin-

jthat their concept of peaceful coexistence

Stable Economy

«

Lamont University Professor,

By WILLIAM McC. MARTIN, JR.*

Khrushchev is reported recently to have said in

; cere in their

Copy

By DR. SUMNER H. SLICHTER*

direct "question, Russia's blunt

a

a

Nearing Boom's Peak?

Role of Monetary Policy in

As

Cents

this

that

form

For the last few months the economy

through

an

of

has been going

extended horizontal movement. There was
virtually no change in the Gross

.

•i

world at this time.

/

'■

social

sian

the
•

•

As

about

the

relative

'

of

merits

•

system and what we like to
term the free enterprise system. We are certain
in our own minds, and we are confident that the

majority of

fair field and

our

no

readers

to

me

that

helps to explain

we

a

have survived great

Continued

great
the
Sumner

28

of

ment

SECOND

Astoria,

appear

in

the

Association

of

New York

prices

September or earlier.

In addition, there has

Continued
♦An

on

page

28

by Prof. Slichter before the 4th Annual Business
Conference, University of Oklahoma, May 3, 1956.

address

Executive

SECTION—Candid shots taken on the

Security Iraders

are

32

by Mr. Martin before the 62nd Annual Convention
Pennsylvania Bankers Ass'n, Atlantic City, N. J., May 4, 1956.

of the

the first

preceding

higher

quarter, one reaches the concluaoh
that output in the first quarter of
1956 was probably slightly less than
in the last quarter of last year.
r
Industrial production, factory bill¬
Slichter
ings of goods, retail sales, and total
expenditures on fixed private invest¬
all series that have been moving horizontally

since last

address

IN

H.

military

on page

in

quarter of 1956 than in the

American history in

the remark:

rise of around

slightly

Mr.- Wilson's

perils and moved to higher rank among the nations of
the globe; also, how we have survived great economic

Annual Dinner

20th

about

How

PICTURES

STANY

DEALERS

falls in the year

interval since he made

W. McC. Martin, Jr.

*An

page

occasion

seems

deal

are sure,

on

this

observation

favor the American system

Continued

The dollar figures show
four-tenths of 1%,
which is not enough to indicate real
change./When allowance is made for
the fact that the figures on services
and
investment
are •! based
upon

a

Wil¬
being honored on the 100th
anniversary of his birth, it seems
fitting to recall that remark—espe¬
cially so for one who serves in the
Federal
Reserve
System,
which;
President Wilson helped to establish.
It

that given
of
individual freedom and private initiative would
prove so far superior to the authoritarian system
of the Kremlin that it would have to be called
a

of this year.

is

son

communistic.

vast

1

master-mind

quarter of 1955 and the first quarter

when the memory of Woodrow

We do not believe that there are many readers
i of the Chronicle who would agree with the Rus:

.

freedom and

*

//

.

National Product between the fourth

organization, with its emphasis
opportunity for the *
individual, "releases the energies of
every human being."
;
^
•

on

occasion of the

at the Waldorf-

State, Municipal

Second Section of today's issue.

in

and

U. S. Government,
State and

Municipal

American Steel Foundries

Securities
telephone:

Yields

Sells

HAnover 2-3700

over

•—

MUNICIPAL

AND

COPIES OF OUR

5%

than

less

at

STATE

LATEST

times

7

BONDS

estimated earnings

Public Housing Agency
Bonds and Notes

"ATOMIC ENERGY

REVIEW"

CHEMICAL

Available

Bulletin

CORN EXCHANGE

ON

J. R. WlLLISTON & CO.

BANK

CfTAILilHCO

MEMBERS

BOND

AND OTHER

DEPARTMENT

30 BROAD ST.,

N.Y.

NEW

YORK

STOCK AND

THE FIRST NATIONAL CITY BANK

llll

STOCK

EXCHANGE

COMMODITY

EXCHANGES

OF NEW YORK

115 Broadway, New York 6, N.Y.
Miami Beach

—

Bond Dept. Teletype: NY 1-708

Rye, N. Y.

REQUEST

HARRIS, UPHAM & CQ

THE

Chase Manhattan

Members New York Stock Exchange

120

bank

BROADWAY, NEW YORK 5

34 offices from coast to coast

ffl^t'Actite Markets Maintained

U. S. Thermo 'V

Tb Dealers, Banks and Brokers

Bank and

T. L.Watson &_Co.
ESTABLISHED

CANADIAN

1832

SECURITIES
Members

Insurance Stocks

Commission Orders

-

CANADIAN

American Stock Exchange

BROAD

STREET

DIRECT WIRES TO

MEMBERS NEW YORK STOCK EXCHANGE

COMPANY

FIRST

'RIDGEPORT
D&uas




MONTREAL AND TORONTO

Goodbody & Co.

NEW YORK 4, N. Y.

•

PERTH A MB (TV

-

Control Co.
COMMON

BONDS & STOCKS

Analysis
♦

our

upon

request to

Unlisted Trading Dept,

DEPARTMENT

Teletype NY 1-2270

25

CANADIAN

Executed On All

Canadian Exchanges At Regular Rates

New York Stock Exchange

DEPARTMENT

BOND

ARE NOW AVAILABLE

115 BROADWAY

CHICAGO

Grporatioti
40 Exchange Place,

New York 3, N.Y.

IRAHAUPT &CO.
Members New

York Stock Exchange

and other Principal

111 Broadway,
WOrth 4-6000

Exchanges

N. Y. 6

Teletype NY 1-2708

1 NORTH LA SALLE ST.

NEW YORK

Domdiiom Securities

Teletype NY 1-702-3

WHltAaU 4-8161

Boston

Telephone:

Enterprise

1820

<•"

*

»

V

77 "i
2

'Ill',-

For Banks,

(The articles contained in this forum

Try "HANSEATIC"
a

they to he regarded,

nationwide

In

i.

the

old

Wires

curity

be

oppor-

an

further

tightened

my

% matter of its

-

"Se¬

U

c

Cities

of

-

&

I hit with

a

m

MCDONNELL & QX
Members

Exchange
Exchange

BROADWAY, NEW YORK 5
TEL. REctor 2-781S

liiiiiiii

=

-

^ofa1tse™
Expenses

Virginia

Alabama-Tennessee Natural
Gas

Company

Southeastern

of

Scott, Horner &
Mason, Inc.

representative

.

,

De gained

Tele. LY 62

LD 33

Members New Yorli Stock

.

th

f

th

t

t

irom me iaci mai

capitalization of its

:.

,

,

1954/to 736

the

forced

losses

the

^Zut

Projement which is already under

in the

$8,550,000

it. While this amount

was,

to

of

was

way*

,

...

Moreover, the high quality-and
character of ;thesecun-

ties
*

portfolio

in: its

would

certainly stand" the

most

JAPANESE

- in
&ood stead should there arise any
period of decline in the stock

company

.

.

STOCKS

.7

-

-

_

-

nevertheless,

hit

this ;

with

after

-

•

.

.

reason to>

to

as

a

repetition
as

1
'

7

severe

a

current
.

Call

information

or

Established

sucn

Home

re-,

/

.

write-

Office Tokyo

Brokers

;.

111

A

1897

—

70 Branches

Investment

*

Bankers

\

BruadwayrN.Y.6 COrtlandt 7-5S80

History will show that the lead-

•

.

new- needs

•

an

Firm

more in-

'develop
develop,

Trading Market

Maintained in—

and

and

.

investor does have the satisfac-

tion ^ lowing that insurance;
unlike competitive industrial

CANADIAN

DELHI

H

PETROLEUM, LTD.
Common Stock

,

,\.y\

;;

WISENER

«m

COMPANY*

'1, * LIMITED

••

i

;

v

13 King St Wast-Taraata, Caaada

ing at just about 10 times invest- than average value for his money;,
ment earnings as against an averThe security is unlisted and I

it

if61wftlT^n 0,!nr

body

believe the shares of the Provi-

been

combination, 1 it

1907 it would be hard to find very

"

CENTURY ENGINEERS, INC.

banks " and

companies,

surance ;

conservative investors.

TABLE I
J

;

Yamalchi:' ;:
Securities Co., ltd/

such

of

has been

.

appear to be stirring due
improved Japanese economy,

V'-/ For

by the govern-.

a xepeiuion oi

damage

enormous

^

•

!

'

.

weli as local authorities,

prevent

7,7

'

*.

now

-.

many remedial steps have already\

ment

;•

*

to

scientific

and will be of less intensity from
now on. Even if this were not so,
undertaken

if

^

remaining at practically

stationary levels for three years

income alone works out to $2.48 pany- would certainly seem' to
Per share so that the stock is se%»-offer the patient investor far more

upon

net

brunch offices

our

,

«,<!, :• f^t"t?r3Luun.derw/in? -rate of $l,: the shares of Proviprofit of $23,001. .The investment dence. Washington Insurance Copl¬

1954 "

cut by

$4,415,000

NY 1-1557

-

...

lime givlng

?he

at
same
reflection to the marked imy retiecuon 10 tne mancea im

"Edna"

fail

"

Birmingham, Ala.
Mobile, Ala.

Direct wires to

.

pres-

in: 1955,

"Carol "

in
of

HAnov* 2-0700

time its under-

of

"Hazel"

'

per'shire*o?

a

until the most unusual

corner

combination
and

same

Exchange
Exchange

Stock

St., New York 6, N. Y. '

New Orleans, La.-

• i?rom the earnings standpoint products, ds an indispensable
the group showed an - operating service for which no known subwriting policies were completely Profit of $1,173,695 for 1955, this stitute has yet been found. "
'
revamped It then looked as figure being composed of $1,150,-- While t there ds no immediate
though the company was turning 694 from ne* investment income prospect of a raise in the dividend

817

American

Memoers

^op in marKet value, wnne tne lng insuranee companies over a
™
$U44 16
long pe£od of
have always
?
to ^>44.io per snare or grown bigger and better in spite.
?. decline of t nnly 17%. - These 0f the hazards to which they have

■

:

..

■ ■

...

:

A Low-Priced Investment in

■

r-

^

1955

Lynchburg, Va.

.«■

.

,

Bought—Sold—Quoted

a'

such

at

t00® ^^^^^^^^^.beenexpos^More and

blow. Had the company not
.

pre-

as.-asarcsysf
""'^"ket'value" whilelhe

employees from 985—

re-insurance

Telephone Co.

may

redu^d

dr^tlcany^includSg a drop
1953-

Products, Inc.

As

nt

were

average

Some id*ra of the way the stock
0ver_disc0unted its troubles

,

the"

hit

1954

in

of the

hag

oyer in 1954 andI imitated a complete overhauling of the organizanumber

stocks

earnings.-

been

dis-

the

which

excess

.

Steiner, Rouse & Co.

selling

Tor other
companies in the insurance field,

and had

with

alone

seaboard

Atlantic

tion

in

is

the stock

oldest

result of its dismal underwriting

while at the

Trading Markets

insurance,

hurricanes

astrous

TUTi"Hnuurr T QmHfS

Bank of

one

the

combination of inferior

management

Since 1917

>

of

of $25

vailing

McDowell

J* Irving

i—.a

i

™

-

*

•

prognostications, that the peak of
at a discount of oyer 43% from its hurricane cycles for the Northliquidating value. This discount is eastern , States has been reached
price

,

far

i

quality

-

per

is,

nf

•

.

(

,

-

.

for 1954, a startling recovery inm
Table II)
f: deed when one considers the short
.,
■,
*
i
time that the new management'* r
there is»good
-"has been at work. At its present, believe,
according to

comDanies in meicoimur wriung
companiesm the country writing
„

Air Control

o

Als°<

cur-

$25

ent

,,

i

19 Rector

modest

/

•

.

f44J®iIs agai.n:sta flgure

)

rently has a
market price

multiple line

120

„

"

the

in

xtT

^Vi oSCe.

Company

Insurance

Stock

*.

'

_

.

Gas
r^T Partner,
New York,

y-;

ratios, as
*;

expense

• j

r>

would

which

belt

its

Table I will show.

i

Insurance,

| Specialists in

American

.

.

1

^

'

'

««

„

a,?*/

many

5

Wa shingtor*

Exchange

CHICAGO

Stock

-.

,

Arkansas

.

i

Providence

York

1

,

.

agai^t inadequate re-insurance and m 1955 has

Washington

New

a

measures

share.

RIGHTS

shown

losses

u

Co.,

.

rective

k

be Providence

Member

Principal

have

McDowell,
Diamond
&
Providence,'R. I. (Page 2)

7

profit of $854,978.

Every

1 Like

Rest"

SAN FRANCISCO

to

the

that

saying

calamity pan also
tunity." With
this thought

1920

•

be, nor
sell the securities discussed.)

It is gratifying to note that the generqus discount from book
management has now applied cor- vajue ag weu as
such a

for

Teletype NY 1-40

PHILADELPHIA

to

would

Mcdowell

present choice

120 Broadway, New York 5

•

offer

J. I. McDowell, Partner,

—

ha^ bad P„ciaQ7o°ry underwritin£

Corporation

BOSTON

Louisiana Securities

Co.

heed

New York Hanseatic

WOrth 4-2300

as an

looking

in, mind,:

Stock

Providence Washington Insurance "

around for undervalued issues it might be well to

Your inquiries are cordially invited
No obligation of course.
:

American

V.!

Alabama &

;

not intended to

are

for

of private wires—pro¬
viding markets in more than 400
unlisted issues—be of help to you
in executing your orders?
As
O.T.C. specialists, the facilities
of our organization are at your
disposal.

Associate

*

Participants and

Their Selections

percentage
plus loss expenses inPartner, McDowell, Diamond & Co.,
curred of 53.6% of earned premiProvidence, R. I.
urns in that year instead of 70.1%,
Providence Washington Insurance Co.
and the underwriting end would
x.

network

Established

Thursday, May 10, 1956

.

This Week's
Forum

week, a different group of experts
advisory field from all sections of the country
participate and give their reasons for favoring a particular security.
are

firm with

Security I like Best

A continuous forum in which, each

Executions

a

..

'■» IV

in the investment and

Over-The-Counter
'

'

The

Brokers, Dealers only

Improve Your

Private

LiNl

'

.

'<KJ

The Commercial and Financial Chronicle

(2238)

Could

,»«->}

t

1953

1954

premiums written
$24,669,562 $24,786,152 $25,894,053
SIDNEY R. WINTERS
The GUIDED MISSILE
Underwriting expenses other than
e in o /mc
Partner. Abraham & Co., N. Y, City
commissions and taxes—^
4,233,171
4,910,293
5,418,410; Members New York Sto^k
and ROCKET PROGRAM
Exchange>'
Ratio of all underwriting expenses
and Other Leading Exchanges
Enjoying a record backlog of $5V2
44.3
to written premiums/—
48.2
48.5
1
million and announced 'first quarter
Arkansas Louisiana Gas Company
•;
Ratio of losses and loss expenses
sales of %\l/2 million, we believe the
to earned premiums
57.7
70.1
In a speech before the New York
stock
of this r important > California
Policyholders'surplus—Convention
7 Security Analysts made in January
company
is greatly undervalued ' in
'value basis
14,481,079
12,735,745
13,275,354, 0f this year, the President of relation to other
companies engaged
Ratio of policyholders' surplus to
"•'/
/ Arkansas Louisiana
Gas Co. relargely in this increasingly important
68.5
56.9
54.3 ferred
unearned premium reserve—
to
changes * which
have sector of the national defense
program.
Net profit per common share (be¬
taken
place
Annual earnings of $.92 and a divi¬
2.58
fore income tax)
in
the
com(2.15)
(2.10)* p
dend of $.20 per share are indicated
Net profit per common share after
pany's sta¬
for 1956.
:
7
''
allowance for change
tus since the
in un¬
Net

•

—

.

.

.

ELECTRONIC STOCKS
Amphenol Electronics
Dynamics Corp. Pfd.
Eastern

Industries

Hycon Mfg.
Pyramid

Electric

Ultrasonic
-

Corp.

Trading Markets

ftfreene<mdConvpanu
ESTABLISHED

•

*

earned

premium resOrvb
(before income tax)

acquisition

equity
1.30

Bonds

New

-1955-

municipalities
other

Canadian and

7.2
21.8

West German

$416,500
2,754,200

1.1%

of

Preferred Stocks

Sidney R. Winters

Securities

Public utilities

Banks and insurance companies.——

New York 4

Dlgby 44460

NY 1-3222

Branch Office:

Buenos Aires

0.4

4,400,050

11.6

$7,738,750

-

•-




first

operations^

under

'

controlling

new

leaves

no

20.3%

Banks and insurance companies. —
Industrial and miscellaneous

7.8%
-

Total

$7,983,958

interests, >
is.,

doubt but that the^e

3.3

beginning

of
growth ahead.
Arkansas

9.9

21.0%

a

long

only .the

period

of

N. Q. B.
OVER-THE-COUNTER

is

an

processing,

14-Year Performance of
35 Industrial Stocks

$38,054,049

100

%

Continued

on

REQUEST

in¬

National Quotation Bureau

transmis16 Front Street

•

.■

INDUSTRIAL STOCK INDEX

FOLDER ON

Louisiana

tegrated natural gas company, en¬
gaged in the production, purchase,

gathering,
Total investment securities

of

"new look" to this picture. Tre-i
mendous progress has been made
in a relatively short span of time
and in my opinion this is

$2,955,720
i 1,260,043
3,768,195

the

a

Common Stocks
—

vear:.

guidance
the

Representative:

Key West, Fla.

7.2

168,000
1

Public utilities
25 Broad St.

—

Industrial

Total

OmenhemeJi

;

•/ New York 6, N. Y

of

'55,.

for

the

58.7%

Railroad

S. D. Fuller & Co.
39 Broadway

the annual re¬

$22,331,341

—

on request

ex-i

amination

port
Total

New

Look." An

*"

3.9

1,464,071

"The

as

selling around $6!/2.

Our latest report

'54

local interests,

25.8%

$9,827,510
2,724,860
8,314,900

Housing Authority

State and

Firm Markets in

of

by prominent

,,

'

Now
•'
,

1929

Tel. HAnover 2-4850

of

control in De¬

(4.08);

cember

TABLE II

United States Government

31 Wall St., N. Y.

(4.25)

page

31

New

Yerk4, N.Y.

Number 5532

Volume 183

.

.

Commercial and Financial Chronicle
The

.

(2239) -3

N D EX
Articles and News

'

Role oi
'

-

Advertising

Page

mmmmm

Role of Monetary Polity in Creating a Stable
Economy
—William McC. Martin, Jr.,,,

Cover

Nearing Boom's Peak?—Sumner

By ROSS D. SIRAGUSA*
:

Admiral Corporation head predicts 100 million TV sets will be
sold in next decade—double the first 10 years'- record—and

Cover

H.

Slichter

A MESSAGE TO GARCIA
Tom, Dick & Harry, too.

Growth Prospects of TY and the Role of Advertising
-—Ross D. Siragusa_

*

-

We
That

.

Retooling for the Atomic Age and Increased Foreign Spending
—Harry A. Bullis_^___^___^

of .influencing mass consumer

.market,to buy more high stand-"
ard-of-living products, in receiving the Advertising Club's
Award for Achievement in the-field of printed circuits and
automation. Personal. TV* sets are 'seen as the major factor in
sales boom which is expected to amount to 1.5 to 2 million
sets during 1956. Anticipates a vast overseas market for the
lightweight receivers. Points out the industry is second in size ^

Oil

Development and Its' importance to America

have

in

you

obsoletes

stew!

a

"

4

_

Canadian

cash for

pay

3

•.

assigns to the marketing and advertising profession the task

AND COMPANY

-

*

President, Admiral Corporation

licHTtnsTfiii

B. S.

"

Obsolete Securities Dept.

;

—E. H. La Border

5

99

WALL

STREET, NfeW YORK

-

.

'Automation Helps Coal Pick Up—Ira U. Cobleigh_

■t-.y i

t^

strong com¬

a

bond with this audiencer-One

mon

of my
our

primary responsibilities in
company since it was founded

22

years

ago

has been

keting
w

i t h

for

of

as

I

least

am

of

officio

as

fraternity.
Certainly I

in

deep

from " the
of

well

as

as

under¬

an

based on experience of
satisfaction that comes

standing
the

,

knowledge of the trials and

tribulations

execution

and

creation

successful advertising opera¬

a

tion.

*

•

«

■

+

Advertising Creates Demand
Admiral

At

believed

have

we

that

advertising

was.

a

for creating demand rather
merely a method of obtain¬
ing sales when people were in a
buying mood and business was
good anywawr In-the 10 postwar

from 194&to 1955, we backed
with
advertising

conviction

million.

totaling

$100

that

sum

son

with

is, it is minor in compari-?
our sales in the decade,

which exceeded
billion dollars.

Large

as

and one-half

one

This investment in

advertising, in addition to play¬
ing a prime part in moving that
huge volume of merchandise, ad¬
vanced

Admiral

the

brand

from

comparative obscurity to its pres¬
ent standing.
:
,

.

More

than

the

one-half of

whole;

a

advertising

behalf

en¬

1,500

over

expenditure

Admiral

of

the nation.

has

in
in

been

throughout

newspapers

The balance has been

spent in national magazines, trade

magazines,

television

outdoor billboards and

in

signs

and

radio,

spectacular

metropolitan

centers.-

used

possibly

except

smoke signals.
•

As

..."

advertising

hardly
*An

need

'

%•

v

6

t

/

'

tell

specialists,'

one

can

Power Utility Sees It

a

how

you

all-

address

by Mr. Siragusa before
Advertising
Club
of
Washington,
Washington, D. C., April 30, 1956.

Materials
<

*'

_____

A Challenging Period for Consumer Credits-Charles

1946

■:v7

continue/
economy

invested
almost 200%'

rose

13

Earth

P. Fiske

v

■

-

j

*

,

*

*

*

*

14

>

Purchasing Agents Note Rise in Prices and Industrial Activity 14

.

V Ricliard Hall Supports Dr. Walter E. Spahr's Price Views
r/. (Letter to Editor)

J.

'

24

and

1955, while the
./ Richard Spitz Comments on Price Level Factors in Disputing
'
nation's output rose 85 %t I look
; Views of Dr. Ernest R. Gutmann (Letter to Editor)
24
a continuance of this relative
rate

of

gain "for

future.

ing

Not

the foreseeable

only

and

are

42
<

the

one-third of

as

electronic

and

industries will have

in

the past.

"As

are

with greatly improved models.'
Size

of Industry

■

which

counted for eight

business
in

second
mobile

size

industry

-

.

5<

should

the

interim
Both

and

will

'

Cover

Stocks,i_L

Insurance

by

we

Co., Ltd. Units
*Circular

8

X

Einzig: "Britain's Automation Strike Augurs Precarious'
Future'^ L.__^
i.'
___^
i__^

'•

.

«

.

Mutual

Funds

the

HA 2-0279

'

44

.

News About Banks and Bankers,

*

Philadelphia

22

Reporter's Report._i.___

Public

on

'

!

b

J

Utility Securities

Railroad

1L—

telling

are

you

television
this

optimistic for

on

page

Security

Salesman's

The Market.

Class

..

and

Offerings/
Corner

27

Security I Like Best—

and

/

TELETYPE

Y.

Th«

•

Boston

Nashville




•

•

Chicago

Schenectady

•

•

Glens Falls

1

>

DANA

B.

Park

wniT1M
WILLIAM

Drapers'

Oftrdens.

London,

c/°

X.

Reentered
,,,.1..^

COMPANY, Publishers

Place, New York
2-9570

to

S°"1/

'
25.

ary
york

• New

Y

C.

Eng-

n.K.
DANA

city

SEIBERT, President

issue
news,

—

3,

I1L

135

market, quotation
bank clearings,

news,

etc.).

South

at

the

post

office

at

New
1879#

under the Act of Maroh 8(

Possessions.

Salle

tJnlted

In

Dominion

U.

8.

Members

of

$60.00 per year;

In

Territories

Pan-American Uniosi,
of

Canada.'

Other
Bank

St.,

(Telephone STate 2-0613);

and

$40.00 per

States,

and

$63.00

per

year.

Quotation

Record

account

of

tbe

such

diversified industries

pharmaceutical, medical, food,

Company is financially sound. Very
conservative capitalization.

•

Production first four months,
times

6

1955

greater

than

entire

output.

for

worth

Free

while

Report

growth

on

this

very

situation.

—

fluctuations

rpmitfcpnra*

for

In

General Investing Corp.

for-

eign subscriptions and advertisements must

be made In New York funds.

of largest nationally

cosmetic, chemical, etc.
•

Send

Publications

Monthly,
year. (Foreign postage extra.)

Note—^
rat*

La

Serves
as

Other Countries, $67.00 per year.

Worcester
Offices:

•

n

some

advertised brands.

.

cfirfrt

corporation

n

Subscription Rates

SEIBERT, Editor & Publisher

statistical
ana

Chicago

triple output.,

Used by

second-class matter Febru-

as

7, N. Y.

9576

Thursday (general news and advertising issue) and every Monday (com-

Other

new,

equipment arriving in 90 days,

should

Company

1942,

N

Every

state

a

.,

5

;

Reg. U. S. Patent Office

records,

is

process.

Company
on
24-hour
schedule
with backlog of orders.

48

FINANCIAL CHRONICLE

plete

Albany

$3

Management long experienced in
capsule field.
i1

•

Weekly

COMMERCIAL and

HERBERT D.

1-5

Under

•

Thursday, May 10, 1956

N.

Common

•

2

J

You

Published Twice

ST., NEW YORK 4, N. Y.

A

seamless capsule
revolutionary patented

16

State of Trade and Industry/

Washington

30

Chip?

•

You—By Wallace Streete

The

full

Buy This

The

41

r

Subscriptions

Stock Exchange

~

*

Los Angeles

36

the

future.

their

Spencer Trask &. Go.
•

to

*

GENERAL CAPSULE

23

•

!

Registration

The

long-term

contribute

Securities

PREFERRED STOCKS

24300

Chicago

Time To

•

Prospective

-

optimistic.

REctor

BROAD

*

25

Securities

-Securities Now in

25

HAnover

Exchanga PI., N. Y.

Potential Blue

47

con¬

_

25

more

4

Governments, _J

Our

auto¬

Wilfred May___;

Reporter

WILLIAM

TELEPHONE

40

Direct Wires

20

■

New York

in

securities

Teletype NY 1-1025 & 1-4044

16

-

Members

markets

,

*,

NSTA Notes

<

.

trading

over-the-counter

i, INC

'___ 46

.

_____

have specialized in

350

Singer, Bean'

18

the

For many years we

maintain

than

v

-

Our

fact,

the

and

Continued

Request

10

Indications of Current Business Activity-^—_*__^_X__/
t
t
t '•
■

on

'

8"

*

'

.

22

i

Observations—A.

ac¬

in

are,

among

begin

very

(Editorial)

From Washington Ahead of the* News—Carlisle Bargeron

billion dollars of

appliance

and

year

It

goods lines.'

that at Admiral
for

and

Mining Corp.

Westcoast Transmission

-

-

I

Rare Earth

These two.

only to

durable

sumer

See

Leaseholds, Inc.

Pacific Uranium Mines Co.*

We

T

last' year

at, retail,

45

Dealer-Broker Investment Recommendations.^

:

•

industries,

.zi

Coming Events in the Investment Field

i While many of you may not be
directly interested in the televi¬
sion ; and
appliance
industries/
they bulk large enough in the
/;
economy that their future course
has a bearing on practically every
other line of business.

We

Bank

,

greater

Both/industries

if,

Regular Features

advertising and promo¬
the future than they have

continually developing new prod¬
ucts and obsoleting old products

Corpus Christi Refining Company
Gulf Coast

'

(Tribute to late Mrs. Roger■ W. Babson)

for

tion in

24

Women Can Be "Horatio Algers"^

'■i

.appliance

an even

24

New York State Creates Mortgage Facilities Corporation

-

production1, is in the
category of
optional purchases;
Influencing the mass of consumers
to decide to buy is the big job
facing marketing and advertising
today.
-

need

ton, D. C., Denver and Salt Lake City

24

Guaranty Trust Co. "Survey" Applauds Reserve Board's
Credit, Policy
/
•!_*_•

-

nation's

The

Philadelphia, Washing¬

more

much

as

Teletype: NY 1-4643

Direct wires to

Interest Rates in Curbing Inflation Trend_i__

-

Broadway, New York 4

DIgby 4-4970

/First National Bank of Boston Questions Efficacy of Higher

produc¬ /

we

goods, but an
increasing percentage, of our out¬
put is in high standard of living
products
which
consumers
can,
more

industries for the balance of

I

Strategic

9

10

for

I

don't think there is any media we
haven't

g

of the': / United States Steel Plans $3.25 Billion
Capital Outlay
make

-

tire

.

be¬

and

one

The money

advertising

currently

always

means

this

'

__

■

/•/ —Howard D. Philipp

subsist without. It is estimated that
..

than

years

Prospects for Atomic Energy: As

rising intensity

predictions

between

Siragusa

D.

Ross

first

have

this/fact,
ever

competition^" I think

advertising .will
to grow faster sthan the

your

hand

j

un-j.

an

Tsc that

mem¬

of

ber

i

this

/

of

of the

Purest

at

ex-

an

'

1".
,

is

cause

an

advertising
man,

•

Has>the Bond Market Hit Bottom?H-Robert Van Cleave______

of-

brand.

Because

desig¬

nated

1

.

14
Today,' the* same
becoming /increasingly,
/.Key to Progress: The-Uncommon Man—C. H. Greenewalt—_ 15
evident V in marketing
even' the
least expensive items.
Worry as Depression Causes-Roger W. Babson_______
20

been of¬

ficially

buyers in

homes carrying

their

trend

tising. So eyen
though I have
never

since

years

kno'wh

adver¬

course,

establishment

.

Threat and Need for Increased Savings

•

WHitehall 4-9581

■■

Bases of. Economic Strength in the .Business Outlook
/—Leonard K. Firestone
i_

country parted with several hun¬
dred dollars for ? capital asset

nfi',

a

the

"

6

a
brand /name: is in marketing
/ Brazil's Investment' Opportunities—J. Peter Grace
11
television and radio and major '
v;
*
household appliances. It has been • "
Full Employment and Free Markets—Emerson P: Schmidt:./, 12

many

mar¬

i t,

important

»*

'■■

I

W. Randolph Burgess__.__-

;"

■

I feet that I have

^

The Inflationary
^

only to the automobile industry among the tonsUmer durable~*t
'
\
•- goods lines.
•*'' //"i
-

f.-

.Telephone:

80 Wall St., New York 5 •

B0 9-1800

4

The Commercial and Financial Chronicle

(2240)

...

Thursday, May 10, 1956

ards of living and financial woes.

Retooling for the Atomic. Age. and
Increased Foreign Spending
By HARRY A. BULLIS*

vTo

^offering eeo*aid, loans pn unrealistic
terms, trade and in addition, arms.
These

and

mined

unless

increased

They

will create

economic

an

maintain

our

though

as a

,

and

know it is evil, packed with
slave labor production.

\

ilfc

,

■>

K<d&

%

v

"

For

been

many

that

have

moment
doubted

mittee-*

develop
the
strongest
and most dy¬
namic

to

to

Economic

in

reshaping
the

his¬

a

than

that

Now, as a confirmed economic
optimist, I face this awesome era
called the atomic age with con-

with

tempered

realism

rand with the belief that some de-

wholesome fear of the
be a positive influence.

of

can

When
the

speak of retooling for

we

atomic

regard

it

age,

as

a

we are
nroblem in

mathematics toTe

soWed

apt

to

hieher

the

on

for

shoot¬

a

survival

be¬

communism

and

democ¬

economic

war

that

Harry A. Bullis
an

ruthless

future

for

economy

atomic

war

war—a

tween
.

faith.

gree

today's
The

war.

racy,

fidence,

this

is

and ferocious.

And the outcome

long trade competitionless-developed countries

the

for

stalemate
between
Soviet Russia ; and the
United
States
is
keeping
the
bombs ih reserve.
But there is

terms

more

Competition

that is on—not

war

ing

payrolls
and incomes,
justified

economic rival;

„

of

has

\

.

First of all, in my opinion, re¬
tooling for the atomic age means

spelled

tory,

-

of

Our

man.

:

business.

econ¬

recent

out

have
This

known

omy

Soviet

the

iSIf

w,

:

likely determine which
communistic or democratic,1
the world will go.
;
All,of us here today, business¬
men
and
industrialists, have a
fairly clear idea of what ' the
Soviet policy is, how it is being
applied and where. We are be¬
ginning to feel the pull. We can
guage the political consequences.
will very
way,

think too many of

I

But

are

us

busy hating and fearing com¬
munism, that we are a little fuzzy
so

of multilateral assistance in cbrn'r*

c u r- >

rently report-- parisoh with* bilateral, theJ Presiing on otir dent's emissary gave his conflicttechnical
asing views as follows:
sistance

"Multilateral

pro-

offers

aid

a

way

surely to prevent the so-called 'auction'
represents the which some are trying to promote
grams,

.

America's
power

I

now

us.

statement * by other than hlsvtop-level key: of-v
Senator-Mike ficial, the United States AmbasM a n s f i e I di -^sadof to the United Nations, Henry.
Chairman of a Cabot • Lodge "Jr;, has endorsed '
Foreign Rela- Mr; Stevenson's Opposition 'policy.

'

in

even

I

downturn,

admit that

the dynamic factors in our plans
for retooling for the atomic age. Union's tactics are immoral,. de¬
periods of It is the force that will jar us out ceptive, supercharged with politi¬
of our social rut.
cal guile; that their entire scheme
never for
Let's consider the phrase "re¬ of living and propaganda is based
tooling for the atomic age;" Let's on godlessness and slavery. But'
define just what it may mean to the
fact
remains
that
Sovietus today, to our families and our
Russia is still our number -one-

years

economic optimist.

an

means

Let

_

^ tiohs subcom- Tn a forpal Statement on the valuej

i

i: *

.

_...

,

Ambassador Lodge

s Dissent
On the other hand, in' direct
contradiction of his Chief, - none
;

policy.". T hi s

:

out through bilateral
'

-

factor in American

-foreign

-

we

upon

eign aid

,

-

be carried

arrangement*.

independent evaluation of all for-

that the. end, which is
world
domination, justifies the
means
of getting there.' Above;
.all,- they are designed to * upset
economic
relationships
in - the
Free World, to alienate millions:
of people from the ideal of;de-;
mocracy. With every cent.of this ;
cut-rate interest, goes (adollar's.
worth of" political penetration.
-

To
freedom, Mr. Bullis suggests it would be suicidal

lies, and based

CONFUSION UNCONFINED
"What the Senate requires and
what the country requires is an

dogma

to

penetration and political .infiltration.

credit challenge even

By A. WILFRED MAY

the

at

The monies and credits are
offered
on
the classic Marxian

foreign
and,

underestimate this Communist economic trade

to

us

vacuum

historical

the

offered

are

state.

ourselves,
into which will quickly flow

the inconvenience

matter

no

in

commer¬

the benefit of the. colossus of

for

private investment abroad have been inadequate

Russian economic

for

an

by trade, Mr. Bullis believes our attempts at

aid and

not normal

expense
of the Russian slave
labor economy, a system whereby
each human being
exists solely

economic cold war of the atomic age,
that the Soviets know that a nation's destiny is deter¬
in

are

relations

cial

sense.

we arc

Observations...

nomic

,

Chairman of the Board, General Mills, Inc.

Noting that

less-developed nation's

these

»the Communists »are

one

A. Wilfred

clear con-

elusion

May

between the United States and the
U.S.S.R. as to which will spend

ema-

from

nating

the

the foreign aid area of discussion,
In

his

desperate quest .for a
foreign policy issue to
the vague anti-Dulles-

concrete

bulwark

"A

-carpings, candidate
Stevenson has hopped on to Henry
Wallace's 1948 campaign plank of
demanding that our foreign economic aid be distributed through
the United Nations, instead of direct giving by the U. S. as the
donor. "We should try to remove
development

of the Cold War.

arena

first

.

.

'

multilateral

program

sup-

contributing to such a fund; yet
influence it constructively,

we can

"The percentage which a coun-

try

like ours contributes to a
multilateral program is less than
^ WOuld be under a bilateral pro-

Our

purpose

ment

.

underdeveloped

an

'

which we are unjustly suspected
of wanting to do.
We thus get
credit for unselfish motives in

the

from

in

plies no cover for engaging in
political
penetration,
which is
what
the
communists
do
and

Eisenhower

economic

most

country.

and

is
human better- gram because more countries are
anything less is a bysharing the expenses.
."
combat these forces.
You know product," was Adlai's pronounce/s a^vocacy of United
the story about the two phychia- ment via the American Society of
trists who met on the street. One Newspaper Editors' meeting of a Nations-channelling is being vigvictory m the political arena,
said to the other, "Hello, you are fortnight ago. (How this contenseconded by Ambassador
The Russian big guns and jet
tion by the Democrats'titular head todge.s assocl^s
fine. But how am I?"
fhe World
fighters in this economic war are
I think that story applies here.
reconciled with his equally vocifDr. ^ John C.
fi? e + an<? c?f.f
competition, We know about Russia's plans in erous castigation of the Admini'
*
Representative m
Threats of military penetration
the economic war.
But we seem stration, in the same speech, for ?
Economic and Social Council,
" moment are soft-pedalled, a little ignorant about our own "presiding over the reduction in in. a, P^ess interview last week
£
' ibey are determined to industrial
health
and
national our armed strength," and for "hav- raised the danger of insulted refitter free world patterns of state of mind.
ing Tost' a clear margin of mili- cipients resentment against Uncle
^ade and international relationtary superiority in the field of
as a. s6R-aggrandizmg' mdiCan We Afford Foreign Aid
ships, hoping thus to weaken us
air-atomic power," is a bit diffi- Vldual giver.
Soviet economic and political
cult to understand.)
Economically, we are doing all
The Road to Self-Depreciation
Penetration into other nations right in our nation. In 1946 our
Incidentally this Wallace-StevWhat a far cry this self-abneParticularly into less - developed Gross National Product was $209 enson tack not
only contradicts
ting attitude is from that at the
+
1° hrmg the billion, equal to about $290 bil¬ Pres'dent Eisenhower's desires,
initlating of the Point Four proU*ied States cto
kPees- ™ lion in present-day dollars. This

Soviet

Russia
,

..

,

is

out

.

,

to

strike

..

,

,

the ppcketk°°k- 9nce she has won in the
economic area, she counts on easy

"s where it hurts-in

what

about

have

we

to

to

do

.

A

.

.

_

2^?^lzaTT101^
.

^

We tend to overchanges it will
demand, among them perhaps the
uprooting of many of our deepseated
cultural prejudices.
Instinctively, we will resist drastic
change.
We will try to retard,
rather than take advantage of, the
drawing board.
look

social

the

atomic forces that must upset the
status
that

That is

quo.

why

I

said

.degree of fear of the
a wWesome infhi-

some

future can be
ence.

Intelligent,

realized

fully

well do the Soviets know that

J

.

,

nations is de-

termined by trade*
During

the

past

six

months,

Russia has been putting pftpfesof sure. They have penetrated coun-

fear of the forces to be loosed in

the

future

must

become

one

tries

which

*An, a.d.dr®?s byf1Ur* ?ulllsuat th.e 44th stable
Annual Meeting of the Chamber of Com-

and

*

merce

d.

of the

United States,

Washington,

c„ May i, 1950.

f

politically
whose people

are

un-

are

,.,uu

inflamed With nationalism, COUntries staggering under low stand-

it will be $400 billion, 40%
higher.- Ten year* ago we ^were
producing, steel: at/ the. urate of 83
million tons annually. This year

year

it

will be

128 million tons.

Signs point now to a balanced
budget in the near future.
In
each of the past three years, our
Federal Government has collected
in taxes

Soviet

a

almost

sum

Russia's

tional income.

as

total
Yet

large

gross

na¬

taxes

our

as

are

not

1956'

J5th

of

Soviet

na¬

tional income devoted to military

expenditures far exceeds the per¬
centage of our income devoted to
armament purposes together with
foreign aid. All this should re¬
inforce

our

faith in

free

a

econ¬

omy.

It is

The partners
the

announce

of Fahnestock & Co.

going to cost us money to
fight the economic war with Rus¬
are

proud to

completion of seventy-five years*

continuous service

to

New York Stock

Exchange; and welcome this

opportunity to
to

their many

record

investors

as

members of the

their sincere appreciation
clients and friends who made this

sia.
we

Yes, billions of dollars.
have

duction

the

substance

techniques

win, however,

But

and

to do

pro¬

it.

To

need more than

we

that.

First, I think,

the basic fact that
alone

possible.

we

in

the

live

we

plethora

ia"'y„toS0%fuQ.udJr0

of

differing views and conflicting
policy recommendations
cannot

P

merely be written off as a partisan by-product in an election
van.

Villi

offidab

iZ
the
..

United

States

®(t4ni*™

'^

Far

rifp

ha„

with obligations for apology, W6

within

«he

Uien imd the "temerity" frankly

ri]ntiiFif?

ovp

kev

/

.

Administration-^from The Presi! to envisage—and proelaim-some
denT down
practical return, as restoration of
In his

news

conference of

W

President (agreeing
with the basic principle of the Trur
man. Doctrine cited above)
most
decisively expressed his disapproval of transferring any substantial part of the United States forFriday

the

eigri aid
Nations.

program

to the United

Because of the world

or-

ganization's politick-ing, said Mr,

Eisenhower,

as a

practical matter,

alone

in

the

that

we

world.

United

States.

We

cannot

afford

to

<ty/ur£

(ojx/um^e and odter- /ending (oxc/taiupe&

BROADWAY, NEW YORK 6, N. Y.
Philadelphia

London

Paris

Caracas

permit half of the earth's pop¬
ulation to be economically sicki
Less-developed countries lack the
economic vitality
to resist the
bullying of the Soviets, especially
when
threats
are
disguised in
easy

credit and empty promises.

Our

this

course

evil,

we

is

clear.

must

Continued

To

spend
on

meet
more

page

We act

It

25

on

as

.

...

.

..

..

_

.,

.

insistence

that

the

proposition

to be a strictly U. S. affair.
Accordingly, the implementing
was

Continued

on

page

Specialist and Odd Lot Dealer
Exchange in

UNITED AIRCRAFT

NATIONAL GYPSUM

HOUDAILLE INDUSTRIES

Member firms orders

are

invited

JOHN J.' O'BRIEN & CO.
Members New York Stock

Exchange and Other Principal Exchanges

231 South LaSaile Street, Chicago

'

0,^ ^ ^
President, the
State Department^ and the ,Congress firmly proceeded under the

the Midwest Stock

SANGAMO ELECTRIC

I

•

gowrnmlnt
° P
^
guarantees), and the

do not live

world—or

enough for free enterprise
prosper
in
the
territorial

to




the

must accept

is not

Chicago

-

Unfortunately

express

can

65

.

foreign aid must be continued to

We Cannot Live Alone

Although promulgated by

eram.

insisted president Truman in his
Inaugural

tMt.WctainiSpptrol ofJhe M?r-, Address of 1949 tis i ^6id new
i
°
program," and widely regarded
?.<?it>t Fopj,distribptipps.,,..,,.,as an epochal
give-away move,'its
Intra-Administration Conflict
Proponents still displayed the au-

twCe'n

killing us.
The percentage

1881

™ia S^e as President
pC:Lf,w
man, who

•

One Walt Street, flew York

45

Volume

183

Number 5532

.

.

.

The Commercial and Financial
Chronicle

5

(2241)

/7

The
*

•

*

■

*

-

'

The

re¬

Carloadingi V

and

to

-Retail Trade

Industry

Auto Production

"

industrial

a

production

of

] the

country-at-large

evidence warranting

;

•/'

v

.

duction.

Initial claims

for, unemployment insurance declined 10% the
past week and were 13% below the
corresponding level a year ago.

{

.

~y

:

The most noticeable decreases
occurred in New

rand

Pennsylvania,... where there

York, Illinois
layoffsvin mining, ;
!. • x» ■« V :

fewer

were

strade and

manufacturing.
.7
* V.
y,
<
In the week ended April 28, first claims for state
jobless pay.
dropped by 2,400 to 200,400, the Government
reported.
\
The. Labor

;

.

of Employment
Security
claims, which, reflect lay-offs, was reported
by 36 states. Cutbacks in the auto
industry were offset by seasonal

•

•

a

the

■

year

•' '

needed

e ^

■

35,000
i c a n

in

:

-

.

_any

■*

it.

&-a

o«,i av.

,

is the

'

■

west, particularly; Alberta, and has

expensive and some steeh leaders are not disposed to
give
•in without a fight,
according to "The Iron Age,"/national-metalfworking weekly, this week.
t
-

,

•

•

V :

had

a

»V

AAA

VJ^ViHVWU

hit

133,000

nearly

—

;*"••••

ton., to

the border,

the.

Production

next

year

still

to

•

Whether negotiations are settled
peacefully depends on how
labor is about going after, the more

•'

288

—«

~

growth

the

was

discovery

and extended
Puget Sounds

marked effect

on

the

-

--

---

_

-

This took
and

millions

prosperity

and

limits of the oil worker and the
oil industry. The farmer continues
yelopment and facilities was at the i° grow his grain and graze his
rate of $1,'million per month. The: cattle among the wells. He ^ has
{ndustry spent over $500 million plenty of room because well spaciaW vear and t orovidihs Trans-V mg ranges from '40 to-160 acres
exDenditure

Canada

overon

6f Canada in. general.

Naturally,, the

; bulging pay cheques from all this
vision, technical;skill activity has spread far beyond the
;

of

for

dollars;

In

exploration

Pipe Lines makes

its all-Canadian line

tures will reach

some

a

1946 :
de-

Well. The butcher, the baker

per

start

expendi-. aod the candlestick maker have
million all got their share of this prosper-

^850

.

by JndUStry C4n aC': P^^sing

bu?lt fn

.

.

'111

zoomed.

De^'opme'.t K^iewed:; :
brief review of this progress

serious

when

J

of the Pembina Field. Jan. 1,1954,
it had one well, a year later there

pro^

Transmission line
;; A
will show graphically what a conexpensive demands-,
it; is. expected to make, particularly premium pay: for* weekend :
comDlish
plant is being
"work.
This would be
costly in terras .'of both money; and re¬
rru'
*li'- '*
' L-'J' u
' Northeastern British Columbia.
/
This activity was sparked by
scheduling of operations, states.this trade authority.
• •
•InterprovinciaLPipe Line plans
X
Regardless* of the .outcome of the SteelMvage-negotiations, Mhe" discovery vof the Leduc oil
'more steel people are growing.optimistic over the
j field in 1947 by lmperial Oil. Prior
119 miles of line looping mainly-;
third quarter,
to.that Canada's crude production' on the Canadian sector,
-market outlook. While the
at, a costingot rate is expected to drop from
Was120,000 barrels'per day, and' of $9 million; Alberta Gas Trunk
•present levels, at least part of the decline will be due to
vacation,
this supplied 10% of Canadian re-- Line,
the gathering system for
'maintenance, and hot weather slowdowns, it adds. \ >.> ♦ v
-;/.
quireraents. Most of the oil came' Trans-Canada, will cost $47; mil-.
; Detroit, it points out, seems to be on the fence at the
•••

.

■

reached

was

year
■■

* One of the great forces behind,
recent

seven

7: ?"

.

,

1

l._--

In 1953 the Trans-Mountain line were 85 and production was 6,500
built westward from Edmon- ; barrels per day. Today -there are

.

■

all economy

.

March of this

m

•.,1 ments, with the demand increasoil ing 30o%.

;

•

stage,:

v

t

Luward

..

: The stage is being ^set forgone of the toughest steel wage
'bargaining sessions in ^recent years. Steel labor is talking, big

growth

,

^The

Alberta Government Is the
only government in Canada, and I
dare

there

say

is

not

similar

a

government in the United States,
which has cash reserves exceeding
This

debt.

its

•

fairs

results

happy state of affrom

the

sale

of:

.

J

•

Crown leases and reservations and

•

from oil and natural gas

royalties.:
To the end of 1955, its total reve-;
nUe

from these

was

$456,-;

two

sources

years'-

•

moment-

from Turner Valley and suppHed;

Automotive steel buyers are
holding off on making third quarter
comnritments until the last minute. Most claim their inventories

>J

'are ample*" A pickup in new car sales would
bring a quick turn-,
The auto companies still" have to
place . tonnage orders :
for 1957 modefproduction. »>
•:

•'

^Appliances

taking

are

up a

lot of-the slack in sheets

caused

.

Several

weeks

steel scrap headed

ing

■

>

Price declines of

industry United States

building ebbed

car

the-year a week ago as Chevrolet scheduled
-its first major reduction since late last
February, "Ward's Auto¬
••

Reports," stated

On

tap for

.Laurel, Washington. liigineer-

mg is under way to increase ca.pacity to 200,000 barrels daily. r

;>

"•

Incidentally,
jgnd

sale

°

'"

the

on

work

1

ir

i

'

M

Friday last.session

were

u

f

116,165

car1

"

■

*

•

,

We Are Now A Member of The
•

Midwest Stock

•-

Exchange

•

assemblies,

18.7%

below the previous week's. 127,277-unit volume and
lowest
count since the Christmas week
yield last December of 105,670
units. Truck erecting, pegged at 22,290 last

William T. Bowler & Go.

week, remains relatively
(Strong; such scheduling has ranged between 19,103 to 26,690 units
-weekly this year, "reflecting the sales strength of the heavy-duty
.market, declared "Ward's."

Chevrolet, General Motors'

volume

fall-off; the division's

29,900

the

completions

for

period

compared

program

with

called

37,483

in

for

the

previous week and a 32,680 to 38,919-unit range maintained
throughout the first four months this year. Elsewhere, Mercury
showed a slight decline indicating elimination of
Saturday over¬
time maintained during the previous two work
periods. The rest
of the industry remained relatively firm.
General Motors' portion of total industry car
building the
past week will be 49.6%, Ford's 29.8%, Chrysler's 17.3% and the
remaining producers 3.3%. "Ward's" noted that these percentages
indicate

a

General

Motors

marked

shift

garnered

in

ratios

55.5%

since

of all

the

car

first

quarter

making,

when

Ford 25.3%,

Chrysler 14.6% and the others 4.6%.
'

Across the border, Canadian motor manufacturers
at

the

best production

rate in

-.l.w-Vv-.;




v

-.

history.
».

...

Investments

producer, accounted for

the bulk of last week's

April

car

are

and

Continued

on

soaring

combined

page

35„

I.O.O.F. Bld'g.

Bradford, Pa.

Branches
New

York, Olean, Johnson

City, Ellicottville,

Wellsville, Lackawanna

been-*108^ mfl--

there

the
X.

will

24th
j•

Continued

:

-

on

^
f

rv

'.

past

tl^paCT w^S'be^m^ntMned.^^50

as

to the lowest level of

motive

CaKf., April 30, lass.

d?yt 14 p,la^ a "C1I pun2,p „s.,atlon

.

setting, a. new all-time high, prices of
sharply^downward this wefek in most consum-

In the automotive

?

^

::

the

this revenue has

after

much, at $3 per ton were reported.
.The reductions took the pressure off demands for
more stringent
•scrap export restrictions.■'•'* v"*"V
%
•
areas.

r-

'•An addrea. l>y Mr. La Borde
before
•Villi Security Analysts ©r Los Anxeies

by reduced automotive buying;

A Detroit- steel producer?. that
'sells both, to auto companies and appliance makers
says it expects
"to be busy on sheets through the third
quarter. Its- deliveries
continue to lag behind promises,
x:.
•*

refineries in Alterta and

;^!lan-;

'about.

Trans-Mountain; Pipe -Line.

For

375^00.

'

of

be

'

a

May in'

t

on

-

even

wells, with production normally between 80,000 and 100,000^
Today; barrels per day, depending upon
operating at half the maximum market requirements. There are
efficient rate, production is near, still some 4,000 wellsites in thi$
1400,000 barrels daily, and supply- vast field, and at the peak of ac'
rt? i^g
"%%"*orWC^^^Ti^^re- tivity some 70 drilling rigs active.

.

^and

that

understandably fast, the

out the year. A peak

Interprovincial

daily rate of
V
I

v

:

•

J

day

1946

"

industry.:That industry
r-

initial

•'

^

show

was

greatest ; ;ex-

seen

.were

the

production

per

times the

-'/.v "•;i'
;v-,
States with heaviest, auto lay-offs in the Week ended
April 28 v : The progress made more than;
catches the imaginationit stag-:
Michigan, 1Q,700;. Ohio, 4,200;. Indiana; 1,700 and New
York, '
gers it. The advent of all-out
;i,30o;, •.'
.'Major---recallsiwere.in Ohio, 2,300; Michigan, 2,200 and In-' >ploration and development of petroleum has completely changed
'diana, 900. v-M
; ■/ •V"'"
M"-; tV>;
7; ; thb
^concunic and social life of the
;

.

duction.

ever;

;

which is

built from Edmonton

jf/AJj/VAJ.I.JV

barrels

pansion ; Can-■
ada has

/

was

J

in

esti-

an

figures

the

after

*..■

;citizens talcing;
part in the
■

and

pipeline

alone, there
,

"'

These

.

Canadian

mated

v

; Three out of five; of, the 137,000 workers were from
Michigan,
where 84,000 auto workers
werejstill idle at the end of that week.,
.In second and third place, were- Indiana with
18,000 .and Ohio'

;with 12,000:;vr.

■;

Province

Zi A m

.number of laid-off auto workers who have
yet to be called'back
•

duck-shoot-

Alberta

are.

•

;•.'/%

or

i

Today,

;ago was 1,474^300. .V-**. .'
v. "
;
\r.r
\ - The Labor Department said reports from seven states with more
.than 75% of the nation's auto workers showed
18,000 new layoffs
iand; 6,090 recalls in the week ended April 28.: This
Represented
•a net ^increase of
12,000 in lay-offs and brought to 137,000 the:

.V

hunting

used
•

rate for

success

wildcat wells is 25%.

.

-

of

rate of 76%. The

.Then

dreds;

-

1

During

by the hun-.

,

*

visitors

ican

employment gains in apparel, leather goods and food
processing.
\ First claims for
unemployment insurance benefits a year ago
totaled 207,800.
I,V In the week ended April 21,.the total of workers
drawings
.jobless pay declined by 57,200 to.
,1,323,500, due to a pickup in
(the outdoor activities and seasonal industries. The total

•to their "jobs."

•

Terri-"

•*!:

things started to move.; growth continues at an amazing
'
the next two years the rate.
:
Redwater and Golden Spike fields
The year 1952 saw an avqji-age
were
discovered. Markets were
drilling rigs active through-

Canada

to have Amer- ;
a

Northwest

-

little

a

ing. We

.

said the decline in first

:

Western

mainly for its cattle and
wheat, and as a good place to go
for

Department's. Bureau

1946

was noted

.

number of progressive

;

in

in. the

: Well completions totalled rough-"
My.2,900 last year and it.is expect-..
; ed
3,500 will be drilled in 1950.
; In the first quarter 690 were completed, with a development success

independents in Western Canada af the threshold of vast
expansion, and anticipates an investment need of close to $28
billion'in next 25 years in order to continue
present oil
r
development pace.
v

i-Back

.

,

Mr. La Borde indicates the

61

and

: tories.

oar

other

J.

:•••

'

changing from Middle Eastern and
foreign oil to Canada as the most dependable, safest,
and logical source of crude
supply to augment American pro¬

in

the similar 1955 week with
production of steel; electric
power,
automobile and petroleum sustained at
or close to
the peak of
the
preceding week. Moderate increases were noted in the lum¬
and coal industries.

million, not

.

President, Canadian Homestead Oils Limited
.

for

totals- $595

the
con¬

By the end of 1950 there were

Canadian oil producing head reviews Canadian oil
develop¬
ments and the Royal Commission's
forecast; and finds therein

period ended on
Wednesday Of the past week continued at
high level."Output registered noticeable improvement over that-

ber, paperboard

-

Business Failures

the

.

:

-

-

W
Over-all

.;

cm

under

-2,100 wells capable of production
in Canada. At the beginning of
this year there were 8,588; Of
these 6,261 were in Alberta, 1,7Q0
in Saskatchewan, 566 in Manitoba.

By E. H. LA BORDE*

Food Price Index
..

pipelines
and

all to be spent this year, of course.

' V,

Commodity Price Index
•„

of

board

struction

Electric Output

state of Trade

value

..drawing

Steel Production

page,26

6

The Commercial and Financial Chronicle

(2242)

and

Automatic n Helps

Coal Pick Up

coal

has

long been the step child. Oil
companies have come from modest
beginnings and speculative status,
to rank among

blue

Cash

December.

excellent, with
4.7

to

stock

stock

V,

position

is(

current ratio of

a

1.

The Inflationary Threat and
Need for Increased Savings

1,

the

is

dividend

basic
companies contributing impor¬
company in mine machinery, with
bulge in bituminous production.
an
expanding outlook for this
year
from
coal
industry
sales
and devices into the mines. Some
-(which
deliver 40%
of total),
of
these
inventions
have
been
foreign business, and the excel¬
amazingly successful; but they do
lent current results reported from
require a lot of original money
its oil equipment division.
;
outlay.
Hence the current urge
to merge among coal companies,
Goodman Manufacturing Co.

tantly and mechanically to the

our

100%

about

An underground look at two

Of the so-called fossil fuels,

of

last

Enterprise Economist
t

present

result

By IRA U. COBLEIGH

The
a

March

due

debentures

1975.

chip

corporations.'

to pool

working capital so expen¬
Natural
gas,; sive machinery can be bought and
an
infant
in: installed;
and to work kindred

v

-

more

*

w

•

r

.

■

„•

* *

By W. RANDOLPH BURGESS*
Under
>

*

,

Secretary of the Treasury
'

■

Treasury official calls for higher savings rate to permit

I.

eco-

growth without inflationary financing, and attributes
threat of inflation to the disparity between greater demand

\ nomic
the
r'!

Vi

for than supply of capital with bank credit sustaining the

spending

Points

gap.

the inflation antidotes in the

up

areas

of

savings, Federal budget-spending-tax and public debt policies,

relationship between the banks and Federal

and harmonious

uneven

Mr. Burgess states that in 1953 the Administration

Reserve.

It operates

performer than Joy.
in the same general

'**''»»

'»./•'»»»

■*

Joy is the

somewhat

a

»* t»

*

Goodman Manufacturing Co. has

been

Thursday, May 10, 1956

.

.

sinking

in 3%%

$20 million

fund

.

properties at top efficiency, by
area serving
pledged the Federal Reserve "would he free to exercise the
streamlining operating and sales
principally the. coal industry,; and
i,' • ■
functions given them by law. ..."
. .
producing, organizations.'
the mining of salt, gypsum and
Our theme today, however, is
pipeline and;
potash as well.
It makes mine
Economic events in the United seeds of future trouble are often
distributing; not mergers, present or incipient,
locomotives and has developed a States in the
past year have made sown in times of prosperity. This
machinery, and two
corporations, but mine
broad assortment of. mining ma-: the business of your Association is the time to examine ourselves
whose securi-' makers thereof.
They should be
chines including cutters, loaders,; even more
important than it was to see how we may build better
ties bask in credited with a big "assist" in the
haulers and conveyors. Its*, most,
a
year
ago. and more firmly for the future,
the 1930's,now.

boasts

m a

nry

.

the

Cobleigh

In

coal.

it is not

vestment in-

fact, only

one

outline

the

biggest

an

first,

amusement park!).

Joy Manufacturing Co. is an $80
million

com¬

company

with

i

success.

one

Joy Manufacturing Co. (no, junior,

stitutions. But

.

f

not

U.

score

We

in¬

elite

our

Ira

of current coal

box

sleek

portfolios of

1955 sales

dramatic
tinuous

items

are

.(1)

which

Borer

its

Con-;"
in a

can,

For

single operation, dig and load up:
to eight tons of coal per minute
a solid seam;
(2) its No. 965.'
loader which can gather as much
as
10 tons a minute in free coal'

for
t

the

quarters of

industry,

a

in

three-

century, has

long-

growth
try

c o u n

needs

r

even

higher

a

rate of saving.

has

What

the

that

de¬

future

than

in

decades.

than 5%

of U. S. present produc¬

twice

large

as

as

1 f

s e

be

to

the

V

'

of
capital.The
sought to build

;

amount of money

supply

factories, roads,
and
public
facilities
has
been
greater : than - even
the
large

houses,

build

to

of

amount

savings

these purposes.
of

-

the

have

As

this

,

money

bank credit

from

met

for

result, some

a

for

demands

been

available

,

,

year.

done

much, in times

by, to
price coal out of the market, and
gone

deliver the business to competitive
So bright and practical en¬

fuels.

gineering brains have been busy
bringing labor saving machines

that

basis, Joy common at 50 is
selling at 10 times earnings, with
a
$1.60 dividend that can very
easily be jogged upward.
Capitalization consists of 1,787,908

common

shares, listed NYSE,

yet

to

billion

be

mechanized,

must

be

spent

and
to

$1.5
keep

This

great progress is based on
confidence in our country and in

production on target for the next
decade.
Joy and Goodman offer
the

stepped

makes

the

up

automation

"Sixteen Tons"

of

ESTABLISHED

in

great

FRANCISCO

do

so

no

with

picks.

of

«

EXCHANGE

(Special to The Financial Chronicle)

*

FRANCISCO.

STREET

CALIF.

EXbrook

2-2580

DOuglas

215

WEST

7th

STREET

2-3173

TELETYPE

SF

LOS

ANGELES,

CALIF.

Rosen,

712

- own

Clarence

R.

Shuey

BETWEEN




SAN

witn the
like the
savings bankers here today, have
been
and are being
reasonably
successful in keeping things on an

FRANCISCO a LOS ANGELES

OFFICES

rent to

So

lesson

to the staff of Columbia Securities

South Beverly Drive.

-

have

35th

held

war.

cold

We

striking
a

is

progress

our

have

power

to

a

strong deter¬

have good cause for satis¬
But

we

•From
the

forward con¬

aggression.

we

and* faction.

Company, Inc., of California, 225

.

other

and

own

our

we

our

an

history teaches

must

never

address

Annual

keel.

even

.The great increase
in

on

that is going

productive capacity—to turn

out more 'goods by more efficient
methods—will, in the long run,

help to keep prices stable and, at
the same time, pay higher wages.
*

'

Inflation's

Cause

The large savings of
ican

to build

witn

the Amer¬

providing money
this larger capacity, along

people

are

and better homes and

more

facilities. It is when we
spending faster than the
of savings, and
do it too

public

rush the
rate

heavily
that

borrowed

with

<

run

we

money,
of inflation.

the risk

We have tended to do this in the

Home building was a
illustration.
We tried to
homes in early 1955
than we had building materials,
past year.

good

build

more

building workers, or money avail¬
Therefore, the cost of build¬

able.

or 5%.
taken
have

ing rose 4
were

The steps that

by

Mr.

Confaro-re
of

one

into balance.

people have said that we

Some

going into debt faster than we

are
are

That

saving.

is

Burgess at
ct

Mutual

i

:e

tional

Association

Banks,

Washington, D. C., May 8,

Na¬

Sayings
19oo.

true.

not

Americans set asiue about $17 biLof

lion

than

rather

spending

almost

know,
total

income

their

$2

represents

last

it.

year

As you

this
de¬

billion of
increased

posits in your own institutions.
Savings and loan shares rose by
billion, and almost $4 billion
into checking and savings

$5

went

banks.

went

into

United States Government securi¬
ties

and

the

local
In

over

twice

corporate

that amount

stocks

obligations

and

bonds

of state and

governments.

individuals added
the value of their
insurance
last
year.
They put
close to $30 billion into tne pur¬
chase
of homes and
the plant,

$6

addition,

billion

to

equipment, and inventories of un¬
incorporated businesses and farms.
Even when you
creases

forget:, the

that

brought

particular situation

billion

point where it is

Charles E. Todd have been added
DIRECT WIRE

the

in

increased

steps that the

commercial

economic

feel

we

country,

in

countries have gone

Curtis, Peter J. Giambalvo, LeRoy
Green, Jack A. Makes,
Alfred
Miller, Milton C. Miller, Jr., Wil¬
liam
C.
Philipson,
William
I.

this

In

government has taken,
cooperation
of people

and

that

since

increased

$2

generous

was

then.

Another

■

fidently in

have

pressures

into

reason

there

accounts

world.

reflects

partly

war

Bank,

The

the

recovery

One

E. Alaska, Forrest S. Amove,
Jackson
A.
Brown, Darvin
M.
SAN

is shared

and in many

Monetary Fund and the

in these countries

of

parts

ours

of the 58 countries

agreement by all present that in¬
flation was a threat. Inflationary

States.

Join Columbia Sees.

ert

CALIFORNIA

of

Europe

from the dislocations and distress

BEVERLY HILLS, Calif.-^-Rob¬

527

more

5V2%; Can¬

3%; Germany to
Istanbul meeting

members of the Inter¬

are

International

cooperative action by the United
r

MINING

Western

other

doubt con¬
mechanized

sound

on

It
means
people at

than ever before.

This prosperity

1890

MEMBER
SAN

to

for

better pay

picking up; it will

R. L. COLBURN COMPANY

jobs

more

the

based

policies.

government

popular song (traditionally fab¬
ulous output per day for a single
coal miner)
look puny. Coal is
tinue

is

It

ourselves.

that

the

autumn,

national

year

a

ada has gone to

same

England

of

Bank

The

has raised its rate to

last

the

countries have

Other

problem-

ital has shown

greater than

as
indi¬
of inflation.

problem,

major

which

instead
of
by savings, and the
earlier. - price of money has risen.
Against 1954 production of 400
Net sales for 1955 totaled $14,This is, in fact, one of the prin¬
million tons, 600 million is pre¬ tion coming from continuous
140,002. This figure is expected cipal reasons why a threat of in¬
dicted
for
1960
and
about
800> miners, you can perceive the mag¬
to be moved up substantially this flation has developed and why the
million by 1970. Why? Well, first nitude of the future market for
Goodman,- while small in Federal Reserve System has raised
in this country year.
because coal's customers are ex¬ this equipment
comparison to Joy, may well be- its' discount rates from Wz% a
panding faster than the national alone; not to mention urgent needs
for mechanization in British and undervalued at its present market, little over a year ago to 2% and
average of industrial production.
" '
For example, electric power gen¬ European mines where production price (American Stock Exchange)* 3% today.
of -73.
There is over $75 a shareerating is growing at an annual efficiency is way behind ours.
Mature Economy Disproved
in working capital, a current bal¬
rate of 9%, aluminum above
In addition to drills, conveyors,
10%,
For some years it was popular
ance
sheet ratio of 6.4 to 1 and
and nuclear energy (vast coal sup¬ shuttle cars and other mine ma¬
in this country to talk about our
a
book value of $112 a
share.
plies are required at atomic power chinery, Joy makes drilling ma¬
"mature economy." The economists
stations) 40%. Steel demands, too, chinery for oil wells, air com-1 Capitalization couldn't be simpler, who used this
language said that
merely 120,000 shares of common
are rising but less
pressors, fans, scrapers and hoists
spectacularly.the growth of our country was
which earned $4.30 last year and
Not only are existing use demands —plus replacement parts for all
might .conceivably * double r that slowing down, and that we did net
on
the
upgrade,
but low-tem¬ of these. Royalties from overseas
result this year. Current indicated" need as much capital as in the
perature carbonization, delivering manufacture, binder Joy patents,'
They emphasized the im¬
dividend is $3. Consider, too, that past.
both energy and by-products, is a
are
becoming an increasing in¬
portance of spending rather than
big potential for the future; and come factor. Foreign business is Goodman, although serving a his- '
cyclical
industry,
has* saving.
chemists are beaverishly busy on significant, delivering above 20% torically
•In recent months we have been
paid uninterrupted dividends sinceI
low cost methods of converting of net sales.
1901. That argues pretty well for' demonstrating the very great ca¬
coal into gas or oil.
Earning power seems definitely
sustained good management, pacity of this country for growth.
•'
While the economics of coal are on the up-grade.
Per share (on
We are building a better America
which, in recent years, has placed
thus currently favorable, the im¬ present stock) for the 1955 fiscal
at
an
exceptionally rapid rate:
great stress on research.
:
•
portant industry problem is, and year was $3.18 against $2.12 in
new houses, new production facil¬
If you
accept the thesis that
has
been, cost control.
Some¬ 1954; and sales this year are run¬
ities, new public services.
We
soft coal is definitely on the up¬
where between 50% and 55% of ning at the
highest rate in history.
have disproved the old theory of
grade, then consider the prospects
the gross cost of coal above ground Latest
quarterly earnings were
stagnation because of maturity.
has traditionally been for labor. $1.27 per share giving promise of of the two enterprises we've just
outlined.
Basis for Progress
95% of the industry is :
This high cost labor factor has $5 or better for the full
On

brighter

One

cated, is :the danger

mand for cap¬
it

avoid trouble.

can

we

Inflation: Major Problem

is AVz%.-> At

happened

—

how

see

that

its

e r m

the

to

give

evidence

from

(fiscal year ends Sept. 30) run¬
ning $2 million above that. Joy
and deliver it to the shuttle car;'
approached the status of a Stand¬ specializes in mechanized equip-'
and (3) its Rope Belt Conveyor, i
ard Oil; and that one is Pittsburgh ment designed for the extractive,
which
can
be
swiftly installed,Consolidation
Coal
Co.
Cursed industries
minerals, metals,"
and supports linked idler rollers,:
first
with
over-production
and stone, oil and gas. No other coirH
with
wire ropes instead* of the*
dog-eat-dog competition,
then, pany manufactures" such a wide
customary rigid frame structure. >
fierce,r competition from oil and diversity of percussion and rotary
This
latter mentioned
conveyor*
gas, aggravated by rapidly rising drills; and no company has so far
has many advantages.* It is cheap-V
costs deriving from highly union¬ contributed more to automation in
er than others, conforms to varia-i.
ized labor—all these things have the coal mines than Joy. It pio¬
tions in the size and weight of;
kept the business of mining soft neered in - so-called "continuous
material handled, and cuts down!
coal an erratic and volatile trade, mining" and has in the field today
jolting, breakage and spillage. It;
"with the "downs" outnumbering some 325 Joy Miners.
These ex¬
may even be possible for this ex-*
the "ups."
pensive and vordcious excavators
tensible
type conveyor to turn
f
But now, curiously enough can, depending on structure and corners.
t;
when atomic energy is looming in thickness of seams, and require¬
Goodman
machinery is " being;
the offing as still another com¬ ments for roof support,- produce
from 250 to 650 tons per machine most favorably received by thee
petitor, soft coal has turned about
shift, delivering same to shuttle coal industry, and the backlog of!
and
the
larger
units
have
a
cars or conveyors.
With no more orders on hand Jan. 1, 1956 wast
in

pany

these

events

in

allow for tne in¬

mortgages,

consumer

and business debt that individuals

incurred during the year, and

for
is
constantly taking place, individ-

property

depreciation

which

Volume

183

Number

5532

,

.

The Commercial and Financial Chronicle

.

f

(2243)
uals'

savings

still

added

to

up

about $17 billion in 1955.

Inflation Antidotes

To Hold Dinner

In spite of this remarkable
ord of

savings last

individuals saved

ings

than

are

1953.

Personal

of

now,

as

income

our

sav-J

against

8%

in

after

an

other recent

Xhis is disturbing and
ther .indication

that

we

D.

Nominating

note liam

D...

Smith,

L.

Weeks,

,?

is

John

Agency.

Oliver,- Wil¬

-

*

"Coffee—Keystone
Hemisphere Trade."

the

of

objectives

Bank; Kenneth Post, First

With E. H. Hansen Co.
(Special to The Financial Chronicle)

Bank of New York.

York

is

Tariff

should

be. made

;s

-

$4.75.

-

/

with

Robert

J.

North

Bright Avenue.

Mr. Mar¬

•

Secretary:

Justin F.

Kurau, Grace National Bank.
Speaker will be Frederick

McCarthy,

Industrial Bank of Commerce.

M.

tinson was previously with Dempsey-Tegeler & Co.

H.

-

•

...

'.

•

of

endeavor.

same

One. of the ways your govern¬
is trying to keep the econ-.

ment

in

omy

balance

continued

country

—

to

the

assure

vigorous growth of the

without setbacks

is

—

to

bring the budget into balance.
;; In
late 1952, Mr. Eisenhower
said

that

the

his

goal

budget

into

years.

We

four

shall have

against

as

lion

We

again

next

keep

on

New Issue
'

a.

the

shall

year

have

!

1

ji

'

•

1.

.

•

"

'

,000,000

bil¬

•

,•

i

•

.

r

♦

,

' ■' 1

4

■

City

took,

we

a

Los

Angeles County, California

balance

the

if

year,

"*'

>

inherited $9^

in

over.

it

This year
balanced budget

a

an

deficit

;

bring
within

doing

are

little faster than that.
we

to

was

balance

I

■-

citizens

314%,

the pressure against un-'

2V2°/oand 2Va%

-

•

spending and the world

necessary

Municipal Improvement Bonds, 1956

situation continues to improve.
Taxes have, as you know, al¬
-

ready been reduced by $7 Vz
lion

as

bil-;

AMOUNTS, RATES,

incentive for. increased

an

In the

long run, if

YIELDS OR PRICES

keep

we can

government spending

under

(Accrued interest

800,000

;

keep

our

proved

mechanism

have- for

we

economy

helping

in. balance

direct

controls

oveir

the. first

tion
the

in

1953

is

controls.

.,-

;

,

But

do

we

ditiorial and
of

ence

believe

banks

%■

V

>75,000*:
775,000

:.

1'/i%

June

on

on

order;

or

and prior to

:

2.30%

2.30%

in

or

on

1,

>/j%

i 96S-*

-

2 40%

W$ believe that these bonds

2.45%
100

100

and trust funds, in

;'

,

of the System

a

described

depends, of
the understanding and

course, on

vestments for

offered when, as and

if issued and received by-us and

be redeemed

after June I,

after

or

no

June

premium

long personal

are

are

or

in

In inverse

port,

1,

par

/

and

1963, and prior to June ), 1964;

1968,

on

and

or

ofter June 1,

prior

to

June

1966,

1,

1970

thereafter.

bonds,

issued <under

be invested in bonds which

eligible

are

which, under the laws

'

Attorneys; Los Angeles, Calif.

amount upon

or

legal in¬

provisions

as

of Article

I,

Chapter 4,

Division

Government Code for various city purposes,

now

,

security for deposits of public
in California.

4,

in the

in force may

be levied without limitation

as

$

to rate

all of the taxable property, except certain personal property,
within said

city.

ex¬

perience the problems in running
bank, whether it is a commer-:
or

in whole

legal Investments in New York for savings banks

v

a

cial bank

both

■

Massachusetts and Connecticut for savings banks, and in

cial institutions.

I know from

•

•

option

to

as

interest payment dote thereafter, at

any

on or

on

sayings banks, and

cooperation of the nation's finan¬
%

•

the

at

only

opinion of counsel constitute the legal and binding obligations of the City of
Pasadena and are payable, both principal and interest, from ad valorem taxes

sub\ecf to

approval of legality by Messrs. O'Melveny
and Myers,

Y.,

banks, subject to the legal limitations upon the amount of
bank's investment, end ere.likewise legal investments in California for trust

above.

'

«'

N.

Los Angeles

in

California for sayings

•'

These

by law to r influence the credit
supply in the public interest. The

Interest.

York,

registerable

of the

office

the

at

said City

existing statutes, regulations and court decisions.

Title 4 of the California
ore

New

61,000

of

In the

Reserve System would

The above bonds

payable

1964, and prior to June 1, 1966; .1%

1968;

moneys

be free to
exercise the functions given them

and

or

of

I)

agency

2.35%

1971 *

as

fiscal

Illinois,

may

on

plus premiums of 2%

June 1,

Supply and price of money.
In
1953* we pledged that the Federal

success

1964,

1,-1963,'or

funds and for other funds which may

1, 1963

any

denomination

after June 1,

June

after June

,.2.35%

"1970*

; '

December

and
at

Chicago,

or

bonds

1

or

opinion of counsel, interest payable by the City upon its bonds is exempt
from all present Federal and State of California personal income taxes under

fYieltfYo maturity.
^Callable

the

California,

Coupon

(June

California,

■

965*.;

1969*

2%

2%

;;

100

1967*

•

2%

-

maturing

numerical

2.20%

1966*

L- 2Vz ./

77-5,000

holder.

accrued interest,

2.25%

1964*

A

r

775,000

;

1963

;

2%

Francisco,

the

interest

Pasadena,

and

zyA"V >

!

in

principal

2.10%

, ,

1962

>

V .2%

775,000

the tra--

over

of

or

•2.15%

1961

' vu >

775,000

'

1960

-

•

general influ-'

more

central

in

2%

-

775,000 <

abolish

*

"

,

remaining wartime price and

wage

semi-aniwal

;2.oo%

•

1959

3% ;

775,000
.V

,

to

was

.1958

>

V/A

.

800,000c

One of:
Administra¬

things the

did

.

-C 800,000

and

wages

prices and commodities.

1, 1958-71, incl.

Due June

Pr'cef

Bonds

>"

8oo,ooo

to

the Federal Reserve System. This
Administration is opposed to trying: to manage the country by

Due

3 V4 %

-jVfA

800,000

gradually to

which

and

San

or

J

reduce taxes further.
other

Principal

added)
Yield

p-a»'

„•

$800,000;;

easier to carry and we should be
able both to make reductions in
the public debt and

.

to be

Coupon
Amount

continuing growth of the country
should make our military burdens

-The

1, 1956

City Treasurer

con¬

trol, can keep on giving the peo¬
ple confidence and incentives, the

\

Dated June

MATURITIES AND

enterprise and increased savings.

:*.•:•

>

•

•

savings bank, when
money is tight as it is today. It is
most gratifying to see the wisdom,
with

a

which

the

banks

are

work¬

ing in harmony with Federal Re¬
serve policy to see that all sound
and legitimate needs for credit are
are

I

deferred

It

gives

dence

rious

us:

that

for

grounds

we

"We

this
se¬

The Northern Trust

Company

Smith, Barney & Co..

-

''

"

',f

'

CJ.flerheiCo..

.

Americas Trust Company

y

*

.

Weehen & Co.

Dean Witter 6 Co.

1 The Philadelphia National Bank

Kidder, Peabody & Co. •

looking to the savings

are

of

America

Brown Brothers Harriman & Co.
Schwabacher & Co.

individual

investors

H. E. Work & Co.

bonds

in

and

all

saving respond

Paine, Webber, Jackson & Curtis

-

-

Laidlaw&Co.

William R. Staats & Co.

in

other

as

we

and

economic

savings
forms

rapid

<

hope,

advance

in

our

ple.




Third National Bank

we

G'nlher, Jotrs:on & Co.

in Nashville

-

Stcne &

.

of

—

well-being of

Roosevelt & Cross

Taylor and Company

San Fraatisco

-

-

R. H. Mouiton & Company
■.

Heller, Bruce & Co.

Shuman, Agnew & Co.

.

i

.

Youngberg

.

Hill Richards & Co.

Kenower, MacArthur & Co.

.

J':.

>

'/

v

'

:

..

Redheld & Co.

May 9, 1956

the
peo¬

A. G. Edwards & Sons

-

*

'Z <

E. F. Hutton &

Company

Incorporated

,

look forward to financing—
inflation
the steady,

without
sure,

The First Boston Corporation

of Los Angeles

to ; help
further the dynamic growth of our
nation through the encouragement
of greater individuals'
savings. If

may

Security-First National Bank: Biytti & Co, Inc.

confi¬

weather

can

.

difficulty.

institutions

-

The Chase Manhattan Bank

Merrill Lynch, Pierce, Fenner & Beane

reduced.

or

period of adjustment without

v

Bank of Atreria N. T. & $. A.

while less essential demands

met

i

Thornton and Robert A. Wade are.
now with E. H. Hansen & Co., 124

Reservations

Treasury savings bonds pro-i.
gram,, which is celebrating the..
15th anniversary of the E bond
this month. Your institutions are!
in' this

!

WHITTIER, Calif. —Albert J.
Hausman, Mark H. Hawley, How-!
ard
W.
Martinson, Richard ML

the

enlisted

of

on

„

Paterson; Henry Finck, Manu¬
facturers Trust Co.; Thomas
F.
Mulkeen,
First
National
City

-

.

group

Western

of

Battista,

New

Silence of Ruffner, McDowell
Burch, Inc., who will address the

National Bank & Trust Company

Midland

J.

forr Two

Stein, Bank of

otherwise capable.;

are

one

tional

Francis

Marine

Jr.,

Treasurer;

We need to develop thrift and en¬
courage it by attractive rewards.:
This

William

President:

Swiss .Credit -Bank,

Kent,

and. William

Vice

R.

International; Alfred L.
Brewster,
Empire
Trust
Co.;
Harry J. Loester, Franklin Na¬

Kurau,

Bank.

President:

Vice

Governors

Harold

America

Trust Co.

-

Committee,

of Raymond

J.

Smith, Irving Trust Co.
Second

Machinery

Robert

National

First

of

annual

> :>'>

years..' composed

the rapid rate of growth of

which

;;

The.

of

are

their

D.

is.a fur¬ Chairman, Harry S.

we

Associates

hold

Railroad

at., the

club.

saving today quite enough to fi¬
nance

Credit

will

.Grace

dinner meeting May

taxes

average

Bank

Meeting

17

little

was a

The

Years:

President:

of

Board

nominations:

election and

accounting for only about

6Vz%
about

.

New York

little less than

in 1954, which in turn

lower

rec¬

however,,

year,

a

Ellis, has submitted the following

Bank Credit Assoc.

«

'

Lawson, Levy & Williams

'

;;: Kalman &

Company, Inc..

Stern, Frank, Meyer & Fox

Irving Lundborg & Co.

C. N. White & Co.

8

The Commercial and

(2244)

National Bank of Franklin

Franklin
&

Broad

Noel &

Juniper

Oil

D. Robbins

Mining Co.—Circular—C.

&

744 Broad Street,

of atomic industry as of

York

York Air

N.

5,

Also available

Y.

Brake

Company.

Gardner,

is a bulletin on New
i r*
Tax Rates
Transfer Com¬

and

rates—Registrar

current

of

Northern Illinois Gas
122 South La Salle

Old

& Co., 1 Wall Street, New York

up-to-date com¬

Railroad

Hutton

F.

&

Co.,

N.

bulletin—First

news

*

American

Steel

American

Riverside

Cement

Co.—New

115

R.

Williston

H.

COMING
EVENTS

Broadway, New York 6, N. Y.

Apex Uranium
25 Broad

In

Mines Inc.—Study—C.

E. Stoltz & Company,

May

New York 6, N. Y.

way,

70

Hospital

of Louisiana—Bulletin—Park,
New York 5, N. Y.

Pine Street,

County Trust
Broad

Denver

Ryan,

Inc.,

Rio

Grande

June

1L 1956

(Baltimore, Md.) *

Chicago has announced the
opening of its New York City of-:
fice at 39 Broadway.

Association

13-16, 1956

Company Limited—Review—James Richard¬
Sons, 179 Portage Avenue, East, Winnipeg, Canada
and Royal Bank Building, Toronto, Canada.

Salesmen in

t

was

Association of

pT^ ClUb'N<!Wtown

square

the Brookside

"

Security Dealers of Nashville
annual party i cocktails and dinner May
17; at the Hillwood
Country Club; golf and other

Speed
•

—

Yours for the

Dependability

You will find

us

.

.

Nationwide Coverage

primary markets to you in
we

more

through

our

coast

to

June 4, 1956 (Chicago,

coast

network

party Is for
t

on

out-of-town
al.

i

Women

City)/'

annual

xt.

„

Association
34th

,

.

.

of

Convention

meeting

Radisson;

Firms

,

at

the

Bank
and

Hotel

(New York City)

Club of New York

sum¬

outing at Sleepy Hollow
Country Club, Scarborough, N.Y.

mer

"

24-27,

1956

Midwest Exck. Member
BRADFORD, Pa,—William T,
Co., I.O.O.F. Building*
announce that their firm, is now
a- member of the Midwest Stock
Bowler &

*

meeting of Board of Gov¬

ernors.

Oct
Bond

of

in the

guests,
-TT

Oet. 4-6, 1956 (Detroit, Mich.)
Association of Stock - Exchange

•''

111.)

Midwest Stock Exchange annual
election.

June 8, 1956

You will have instant access to markets tn other

cities

■

(New York

than 385 Over-

trade and position.

Mclnnes & Co.*

—

William T. Bowler Go.

Country Club.
—

•

Inc. has been formed with offices

York outing at the Westchester

ready, willing and able to make

The-Counter issues
•

.

"

Opens Finn in Miami
MIAMI, Fla.

Twin City Bond Club 35th an
nual picnic and outing Cocktail

National

Municipal Bond Club of New

Asking

,t.

....

Sheraton Pldza.;

—

icle of Feb. 9.

_

1

June 1, 1956

DEALERS

previously reported in the Chron*

Huntington Medical Build*
ing, to engage in the securities
business. The firm holds memberr8
oe,
1.col!et S,1t,e.1' ship in the Pittsburgh Stock Ex¬
plode June 21 at the. White
change.
Raymond
Mclnnes,
Bear Yacht Club.
formerly of Davis-McInnes, Inc.
outdoor activities followed _by
of Pittsburgh, is President of the
dinner May 18 at the Richland June 29, 1956 (Toledo, Ohio)
Bond Club of Toledo summer, new firm,
■'
Country Club.
outing at Inverness Club.
May 20-24, 1956 (Boston, Mass.)
-National Federation of Finan¬ Sept. 1-21, 1956 (Minneapolis,
Minn.) »V;.n
•
s
cial Analysts convention at the
't

■

—

Equitable Gas Company—Review—The First Boston Corpora¬
tion, 100 Broadway, New York 5, N. Y. Also available is
an analytical brochure on 16 Life
Insurance Stocks.

'

r

May 17-18,1956 (Nashville, Tenn.)

is

JCeyes Fibre Co.

th^e new office in¬
Martift, David P.

,®2grd Thon,p4

.

Report — Boenning & Co.,
1529 Walnut Street, Philadelphia 2, Pa. Also in the same
bulletin are reports on Stonega Coke & Coal
Company and
Ayrshire Collieries, also available is a memorandum * on

David

clude

(Canada)

June 20-21, 1956 (MinneapolisCountry Club, Linworth, Ohio.
St. Paul)
.

annual outing at

Coi—Memorandum^Moore, Leonard & Lynch,

Eastern Gas & Fuel Associates

Franklin, Meyer & Barnett,

New York City.

Investment Dealers' Association
of Canada annual convention,

Exchange Firms 8th Anot*uare» ra*
Wright
Memorial
Golf June 19, 1956 (Detroit, Mich.)
Tournament, at Leewood Golf
Securities Traders Association
Club, Crestwbod, N; Y. • * * *
of Detroit &-Michigan 21st an„aw
1QKC
r*u\n\
nual summer outing at the Plum
May 17, 1956 (Celumbu., Ohio)
Hollow Golf Club.
Columbus Stock & Bond Club

&

Union Trust Building, Pittsburgh 19, Pa. Also available
a
memorandum on Newmont Mining Corp.
'.'V-T1-'

with

nual

Dominion Bridge

Dow Chemical

Joseph H. Meyer, Vice-Presi¬
dent, will be in charge of the New
York branch.
He was formerly

-

Stock

&

Co., 120 Broadway, New York 5, N. Y. Also in the same
bulletin are data on Pittsburgh Consolidation Coal and Joy
Manufacturing Company.

son

of

10 Post

Club, Whitemarsh, Pa.

Investment Field

McLhters5Dlvfafon

Railroad—Data—Abraham

Western

Co.,

of Philadelphia summer outing
at
the
Whitemarsh
Country

-

Company—Analysis—Hayden, Stone & Co., 25

Street, New York 4, N. Y.
&

&

Schor, Irvin Jacwin, Alan S. Ra-:
detsky, Claire Scheiner, Jerome
Algonquin Hotel, St. Andrew- Judin, and David Wittman. Also
Baltimore Security Traders
on the staff are Max Mamet, Ber¬
by-the-sea, N. B., Canada.
Association 21st Annual Spring
nard Zores, Jerome
Schneir,
Outing at the Country Club of June 15, 1956 (Philadelphia, Pa.)
PhiladelphiasSSoftS*!*.
Maryland.
:
tion annual outing at the

Street/New York 4, N. Y.

Century Engineers, Inc.—Report—S. D. Fuller & Co., 39 Broad¬

Charity

(Limited);
(Limited).;
'

Krensky Go.
Opens New York Office

Square, Boston 9, Mass.

Co.,

&

Hulburd

Arthur M, Krensky & Company

views—Lerner

Investment Traders

Foundries—Bulletin—J.

.

Arthur M.

June 8, 1956 (Philadelphia, Pa.)

Inc.—Analysis—$2.00 per copy—John
Co., 63 Wall Street, New York 5, N. Y.

.

of

Hulburd Johnston

Security Bank of Utah,

Airlines,

Lewis &

\

.

DeForest

&

Inc.—Analysis—Aetna Securities Corporation,

*

*

.

Broadway, New York 6, N. Y.

A., 79 South Main Street, Salt Lake City 10, Utah.
f

The home of¬

Fahnestock & Co..
William F a h n e s toe k, Jr.;
Sherburn M. Becker, Jr.; John J.
Rudolf; M. Donald Grant; Thomas^
B. Walton; Charles J. Doerrler;'
Roy R. Coffin; John V. Farnam;
Allan
J.
Mcintosh
(Limited);

Company of California—Bulletin—De Witt
Organization, 100 Broadway, New York 5, N. Y.

Resort Airlines,

Office

(Palm

Springs

Exchange.
The firm maintains
branch offices in New York. City;
Olean, Johnson City, Ellicotville,
Wellsville, and Lackawanna.
; •

Calif.)
National Security Traders Ass*
ciation Annual
Convention at

Established

1856

the El Mirador Hotel.

H. Hentz & Co.

correspondents.

Members

It's Yours for the

DEPENDABLE MARKETS

Asking

New

Analyses

...

New

MOUNTAIN FUEL SUPPLY

TROSTER, SINGER & CO.
New

York

Security

Dealers

Stock

York

Exchange

Cotton

York

Exchange

Exchange,

Commodity

Board

Chicago
New

of

Inc.

Trade

1

Orleans Cotton Exchange

exchanges

other

and,

Association

.Exchange

Stock

American
New

Members

I

74 Trinity

Place

•
«

New York

HAnover 2-2400

CHICAGO

-

DETROIT

LOS ANGELES




6, N. Y.

EQUITY OIL

Teletypes NY 1-376-377-378
Private ,Wires

-

-

HOUSTON

DALLAS

-

PITTSBURGH

-

HARTFORD
-

Chicago

-

-

Exchange BIdg.

N. Y. Cotton

NEW YORK 4,

to

CLEVELAND

-

United,

company is in New
Some of the more impor-i

Partners

J.

Peabody

the

are:

McKinnon," 11

Corp.—Memorandum—Kidder,

operates

now

the

Lebanon.

Supply

Conklin

Broadway, New York 6, N. Y.
Utah—Business

Steel

a

its.

in

Wall Street, New York 5, N. Y.

17

Republic

61

Company,

&

bro¬

tant branch offices are in Chicago,
Philadelphia, Paris, London, Ca-;
racas, Buenos Aires and Beirut,^

Corporation, 52 Wall Street, New York 5, N. Y.
Portsmouth

111

Industry—Analysis—E.

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

of

York.

Pigeon Hole Parking of Texas, Inc.—Report—Leslie Securities

producers—Joseph Faroll & Co., 29 Broad¬

on

fice

and

brought

in

States and abroad.

,

Co.—Memorandum—Albert
J

offices

branch

28

has

The firm

facilities.

Co.—Memorandum—A. C. Allyn & Co.,
Street, Chicago 3, 111.

Insurance

Life

other

16

expansion

corresponding

Hentz & Co., 60 Beaver

Elevator

Wall

New York 6, N. Y.

way,

Republic

Otis

parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau Averages, both as to
yield and market performance over a 13-year period —
National Quotation Bureau, Incj, 46 Front Street^ New
York 4, N. Y.
Oxygen—Data

Co., 120

investment

business

kerage

Caplan & Co., 1516 Locust Street, Philadelphia 2, Pa.

.

Over-the-Counter Index—Folder showing an

Harris, Upham &

—

firm's

the

Street, New York 4, N. Y.

information — Yamaichi Securities
Co., Ltd., Ill Broadway, New York 7, N. Y.
New York City Bank Stocks—Quarterly analysis of 13 stocks
—Laird, Bissell & Meeds, 120 Broadway, New York 5, N. Y.
5, N. Y.

Analysis

National Tea Co.—Memorandum—H.

Japanese Stocks—Current

Oil Stocks—Analysis—Cohu

—

of

member

a

leading security and commodity
exchanges. A steady growth of

Railroads.

50 Church Street, New York 7, N. Y.

pany,

Distillers

is

now

Broadway, New York 5, N. Y. Also available are analyses
on
G. D. Searle, Atlantic Refining, Panhandle
Oil and
Siegler Corp., a study of the Department Stores and the
Packaging Industry, data on International Paper, Kenneeott
Copper, and three Sulphur Companies, and a discussion of

Co., 14 Wall Street,

Federal & State Stock Original Issue and Transfer
—Booklet

observing its 75th anni¬
Holding membership in
the Exchange since the founding
of the firm on May 10, 1881, it

Company, 160 South Main Street, Salt Lake City 1, Utah.
an analysis of Equity Oil.

National

& Co.,

Co., 65
City, is

today

Also available is

N. Y.

120 Broadway, New York 5,

Drug Industry—Bulletin—Smith, Barney &
New

Upham

Review—Late issue—Harris,

Energy

&

York

New

versary.

& Co.,

Mountain Fuel Supply Company—Analysis—Edward L. Burton
&

Fahnestock

of

Broadway,

Newark 2, N. J.

Glass Company—Analysis—Reinholdt &
400 Locust Street, St. Louis 2, Mo.

March 31, 1956 together with illustrated portfolio—Atomic
.Development Securities Co., 1033 Thirtieth Street, N. W.,
Washington 7, D. C,

Atomic

firm

Corporation—Analysis—Van Alstyne,
Co., 52 Wall Street, New York 5, N. Y.

Mississippi
Atomic Commentary—Current status

The New York Stock Exchange

Ilaskelite Manufacturing

the firm$ mentioned will be pleased
send interested parties the following literature:

75th Anniversary

.......

Street, New York 4, N. Y,

Capsule—Report—General Investing Corporation, 80
Wall Street, New York 5, N. Y.

It is understood that

Thursday, May 10,1956

...

Faknestock & Co.

Pitfield & Co., Inc., 30

General

Recommendations & Literature
to

Square—Analysis—Blair

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

Geco Mines Limited—Analysis—W. C,

Dealer-Broker Investment

Financial Chronicle

Edward L. Burton & Co.

GRAND RAPIDS

PHILADELPHIA

Established 1899

ST. LOUIS

DEMPSEY TEGELER & CO

City, Utah,

,

Miami Beach

Detroit
.

•Hollywood,. Fla.
■

'

'."

160 S, Main* Salt Lake

•

•

,

•

•

N. Y.
Pittsburgh
Coral Gables

Beverly Hills, CaL

Geneva, Switzerland

Amsterdam/Holland

»

' =

Volume 183

Number 5532

.The
Commercial and. Financial Chronicle

..

(2245)

nearly 1Q iqilUon. That, represents
'increase of well

ail

over

,

vBut«it is sufficient only to know years ahead.

.

that

100% and

in

Iii the Basinets Outlook
By LEONARD K. FIRESTONE*

i.

only 15 years. During the same
period, intercity bus mileage in¬
creased from 893 million to

than

President, Firestone Tire & Rubber Company of California

of

cars

to

the

in., 1955

topic assigned^ to

torian
ness

me

of the

and that of an oracle,
with:

scene

with

or

out

r

crystal
looking

a

ball,
into

the

ture,

tiveness

divining

the

fu¬

things

Any

to

one of
al ap-

proaches
might be tak¬
en
to a topic
as-

broad

as

one

as¬

the

persons

Years
a

People would have called you
a balmy visionary. And still that
is where the figure stood in 1955,

attain

i'

be, interested in know¬
that in Russia,- with 225,000

passenger

and

niifSt

Consumption Pace

production, and if

so,

how and

uroiecf

I

believe

it

will,

reasons^

,

for

several

^ie reason

V

my

belief. It is to be found m our
democratic ideals and practices,
Particularly in our freedom to
our freedom

fre^to^s iirthis*count**
jS&FK V

standard of

^

the

4 Finally

years.

duced

a

the

With good reason, you may ask:
will consumption keep ; pace with

wAri imake decisions and

gdld out of baser* metals.
team went to work.
It

create

But
took

population
of 193 million, the ratio is almost
1,000 persons for one car. And
believe me, that is quite a load;
for one. car!
/;
;
•
cars

*

aeo our enmnanv

team ofscientiststo this

At

on

plastic. But, ever since why?

a

the" same spot that the alchemists
of bid wero in when th^y tried to

YOn may

ing

It is

grown rubber

per

v-

situation

to produce a synthetic rubber with
the properties of natural, tree-

laughed.

at 3.2.

a

ment of products already
market,

they

pro¬

synthetic;'rUbbef with the

a

ing steadily since the end of the
Second World War.
-

same

molecular structural features

All

of

us

can

-:

remember

the

This, I gloomy economic forecasts made
might say in passing, was a great after the war.t The country was
found in natutal rubber.
achievement for

our research

sci-

1° 8° through
"depression,"

entists.

"recession** or

a,

depending

on

a

the

At the beginning, the cost of
producing this rubber was about 19^6, then at the end of 46, then
$100 a iwund, which made com- »'mid-1947 and so on. Evidently
vid7rwp"contini?P 7n Vnw?
mercial application of it out of
Management has. speeded up the will we continue to grow?
average American did not
process of product innovation —
* imagine that whenever that the question. But since that time 5??r.
?. Pr0Phecies or, if he
the development and introduction Question is . asked m a large group, our development people have de' he paid no attention to them,
of new products.
there are some, perhaps only a vised new production methods and
an(* bought w
>
And it is one of the key elements few* who hear the bones of 1929
techniques which have reduced wan^e^*
course, there were
many shortages of consumer goods
in the present acceleration of the rattling in the closet.
I suppose costs considerably.
because of the war.
But these
long process of change and growth *hat that is quite natural. Our
And, at this time, it appears
it,0
(;ftci
were
readily filled.
And the
by which distribution is slowly fealth as a nation depends upon +w
American consumer went right on
but surely becoming more and
e nealth of our business and

come.

sever

doing,

so

1920

at.

their proper growth and stature."
The acceptance of the scientific
tools and techniques of Marketing

of

course

in

and

3.2

car, you would have been

decision to develop a
product to its actual sale.
Many companies are beginning
to realize that only in some such
fashion
can. they
merchandise
their goods with maximum crear

contemporary busi¬

all.

figure would have

been reduced, to

piuts from the.

double role: that of his¬

a

this

find

we

scientists started their research in
this field, their ultimate goal was

were 13.1 persons for each
and if you had predicted that

car,

,

in

In

rubber,

of syn-

As you probably know, so-called
synthetic rubber is not rubber at

country in relation

population.

back only

we go

which illustrates that point.

there

disposable income jump from $209 to $350 billion in the same
period; (2) scientific and technical progress furthering produc¬
tion and product improvement; and (3) capacity to constantly
improve standard of Mving. Noting that upward trend is bound
to dip occasionally, warns that the best
way to prevent deeper/
prolonged dips is by avoiding ''excessive actions" by business;
government labor, and. individual consumers.

,^he

That represents

nearly 75%.

in the
total

example, if

few years in the field

thetic

Another index which reflects
the tremendous growth of the vital
automotive industry is the number

Firestone President envisions extremely good economic outlook
and cites as favorable factors: (1) rise in American bousebolds from present 47,700,700 to 51,700,000 by 1961, and

me

1 Vi billion.

increase of

an

We can expect lit
creasing production and improve-

they are coming.

For
a

more

•

A^

Future Growth Prospects

But

to

return to the question:

.

signed to me.
Of. great in¬
terest

are

scientific

more

Leonard K. Firestone

the.

•

;

and

less

the

hit-

industry.

natta^"thrubSb°e;CwiU bf brough't

v

or-miss function which it has been
in the past.

Today we are healthy. And I
believe we will continue to be
This, then, is the trend today healthy. Of course, we are still

.

changes • that have been taking
place within the management of
industry. But of even greater and
more general interest is the future
of industry in terms of its ability
to expand, to create new products,
to improve those already on the

in industry, toward scientific

man-

subject to

I^tHive^lth^oth'natural'^'ubber
and

occasional national

an

the

in

the

general

Orioe ratine of

rubbers^

svnthetic
syntnetic rubbers.

other

of

Pande<* and 1S still exXdtag In"
expanding. Industry developed new products,

It improved old ones. The result
analogy has been a constantly rising curve
operation.
generally dropped off. But I do could be applied in every research on the chart of production and
not think that we, as a nation, are and development center through- consumption, and the greatest era
And while this trend has been
out the country.
There are un- of prosperity ever known,
developing and gaining momen¬ susceptible to the killer of 1929.
In other words, I think that the doubtedly thousands of research
Another reason why consumptum, we have been enjoying a
economic outlook for the country and development projects in vary- tion will keep pace with produc¬
boom.
•
:
••
ing degrees of completion. There tion is found, in the fact that the
is extremely good.
Present Boom
undoubtedly
hundreds
of average American citizen is one
There are many reasons for are
There isn't much that I can tell
thinking this. One of the main others in which the goal has been who wants constantly to improve
you about the present that all of
achieved
and
the
development his standard of living.
reasons lies in our scientific and
In this

agement for maximum growth and

ultimately

an

market, and of the ability of the
public to consume these products.

efficient

business

case

of the flu, as we were in 1949

when

production

and

I

business

am

that

sure

this

.

:

i

Managerial Revolution

;

There

is, at the present time,
in industry a managerial
revolution. Basically, industry is
becoming more efficient and bet¬
ter managed. And this improve¬
ment
is
being
brought
about
through the use of modern devices
of managerial control which facil¬
itate the making and the execu¬
tion of sound short - range and
going

on

us

there

are

almost

no

in the

midst of

precedented
of

aware
an

the

try.

year

of

un¬

We

are

era

fact that

outstanding

of American

an

prosperity.

1955

was

in the annals

commerce

and indus¬

Production, sales and profits

reached record highs. Employment

long-range plans, and more prof¬
itable
operation in general.
I
think

do not know. The United States

is

highest peak. Home
building, the purchase of automo¬
biles and suchu home appliances,-

large

technical
last

ten

knowledge.
years

we

in

the

broad

business,

particularly

areas

in

of

those

The big question right now is: will
it continue? Will we, continue in

after
goods are produced. This trend has
given rise to what is called Mar¬
keting Management. In its simp¬

casting,

I've observed it during
the last 20 years, has been this:
were

a

vast amount of such knowl¬

me

1940

there

were

passenger

the road.

There

were

cars

some

on

Mortgage Bonds, 3J4% Series due 1986
Due May

Dated May 1,1956

1, 1986

Price 102.239%

and accrued interest

The

Prospectus may be obtained in any State in which this announcement is circulatedfrom only such
of the undersigned and other dealers as may lawfully offer these securities in such State.

who

shook their heads. They said: "too

high"—''overly
still,

not

20

optimistic." And
but 15

later, in 1955, there were
on American highways 52 million
privately owned passenger cars,
12 million more than the 40 mil¬
lion predicted for 1960.

years

a

Even

more

astounding

is

Purchasing Agents Association of Wash¬

of

the

»

SHEARSON, HAMMILL & CO.
WM. E. POLLOCK A

CO., INC.

ANDERSON A STRUDWICK

COURTS A CO.

FREEMAN A COMPANY

country.

THOMAS A COMPANY

INTERSTATE SECURITIES CORPORATION

JOHNSON, LANE, SPACE AND CO., INC.

WYATT, NEAL A WAGGONER

the

the

JOHNSTON, LEMON A CO.

the

increase in the number of trucks
on

HALSEY, STUART A CO. INC.

years'later,

ington, Seattle, Wash., April 27, 1956.




First

looked at this increase of 33% and

before
of

Company

nearly 30

road, and the number of
miles rolled up by intercity buses.
Fifteen years ago there were 4.6
million trucks on the highways

Conference

Savannah Electric and Power

cars

there would be 40 million

partment, the function of which
is to coordinate every activity,
by Mr. Firestone

solicitation of an offer to buy these securities.

out

registered
country. Automotive au¬
thorities, at that time, predicted
that by 1960 — 20 years later—■.

vice-president in charge of the de¬

Northwest

or a

this

in

The trend today is toward Mar¬

address

offer to sell

offering is made only by the Prospectus.

$4,500,000

extremely conservative. Let
give you an example:

In

Today there are

a

opportunity

made, seemed almost ridicu¬

million

other

Pacific

an

The

as

lously optimistic but turned

it.

*An

Qf

.

This announcement is not

to be

words, all these im¬
portant and related functions were
spread
around, with the result
that many Un-coordinated
gaps
appeared between the develop¬
ment of a product and the sale of

'

do it. There is

u

that many predictions, when they

and sold the product.

the

can

product possible. With many more f
J
scientists than
we
had only a here/ both m terms of the Oppordecade
ago
working on these tunity to get ahead and the fact
come, in the years ahead, many projects, and working with better that the better or more desirable
research tools and greater knowlnew
products, the nature and
goods or the ^.called
character of which we cannot edge, we can expect many new
* 6
'
even visualize at this time,
products to be introduced in the
Continued on page 26
lated

The trouble with business fore¬

title.

keting Management often with

^

edge in these related fields. Out
this knowledge is bound to

living and of business
industrial activity?

and

Heretofore, one group in man¬
agement would decide what prod¬
ucts were to be developed and
produced. Another group decided
the product's price. Other groups
developed the promotion and ad¬
vertising campaigns. And finally,
the sales department stepped in

.

to make country he

steady growth in terms of the

our

means—selling. But in the com¬
plexities of modern industry, sim¬
ple terms do not comprehend the
full import and scope sometimes
contained in a title. Marketing

In

at work

.development of the

standard of

lest terms, Marketing Management

a

are

commercial

the end of the Second World War.

functions which take place

Management is such

engineers

of

companies that are not employing as television sets, radios; laundry
devices of these types for more and electrical equipment were
efficient controfc-and management -higher than ever.
Personal inof the enterprise. And their use comes were never
higher, dispos¬
is now spreading to medium and able incomes were never
larger.
smaller companies.
Our whole standard of living
There is also a well - defined
moved, another notch higher in
trend toward the realignment of
1955, as it has been doing since
functions

Over the
have accumu¬

|
May 10,1956

NORRIS A HIRSHBERG, INC.

10

The Commercial and Financial Chronicle

(2246)

-

,

«

mm

rn

at

1%

ffi.

a

4

■ ■

.

Nevertheless,

make

j_. ■

Vice-President, C. F. Childs and Company

.

C. F. Childs' Vice-President expects
be favorable—based

to

upon

optimistic

more

will

]

prices. Moreover, I
the possibility that,
describable as reces-'

bond

s|op

in

The listener's major interest
talk

is, quite

market and interest rates

than

j

bond [back

the

about

this

like

>ness

ment

based
find

latey
What

so

on

foundation in

a

*

'

,

.>

f

„

sketching

by

where we've
are

We

have

a

in

been

took

change
deeper

:

•

March,

which

mum

and where we,

been

now.

since

in
sense

sell

brief,

it

million

few

a

latest survey of tneir atu-

J0

era*

new

a

The change -tudes and intentions, are optiplace then was
a > mistlc and disposed
to. continue
policy
in
a
much/Spending. If last year s business
than that involved in • J^se was mainly due to consump1951.

^ion spending, this year certainly
shoHld be well sustained by
.caP1^al spending,

Federal Reserve decision to buy

or

rates projected for this year,
but no signs of cutting back have
appeared.*
Consumers,, according

of

picture

a

was

bills.

In:

that

declaration

a

thereafter Federal Reserve opera-'
lions would
be
guided by eco- r

The demand for bank loans
continues terrific, and rates for
nomic
considerations
affecting < business and securities loans have
the
good of the whole nation, ( been advanced to new highs for
andi not primarily by an exag-• recent years.
At the same time,,
gerated regard for the conven-,the
volume of new corporate
ience of the Treasury.
Its sig- debt issues has been above most
nificance was that rigidity of in- expectations.
„

terest

low

at

rates

levels

to

was

Also

,

,

bullish side in the

the

on

X rash of Republican books is appearing on the stands, in¬
of the tremendous publicity that is to accompany the
Republicans in their forthcoming campaign. Two books, friendly,

/y

/

V

;

like-f

than likely to fall below the

more

ies will require

velt's earlier days in office.

less money to fi-

To add to the

dealers'

in

automobiles

nance

I

hands, and this type of loan' is
likely to slide off. There is likely;
be

to

gains,

may

or

even

clines.

*

will

There

that

be

must

boom

;

the

argument

followed

be

*'

3ts

■

byf'

were

scalp

ly it is true the upward leg of the

gone

far

so

with its

study of the man's life which I

there

recession eventually, and certain¬

has

A

he has been

were

embattled

Carlisle

Bargeron

am

having the opportunity

have seldom

we

ever

had here in

Secretary of Agriculture,
Congress most of the time. In 1954

with

year as

widely published reports that political demands for his
This year there have been those same

to be yielded to,

demands and the

same

widely published reports.

\V

'

,

T- But what the

Congress

is

against is that such attacks
against Mr. Benson leave him with a complete serenity and inner
satisfaction that he is right and has done his job well. "
r

up

.He heard demands for his scalp at a very early age, when he
about 20 years of age, as a matter of fact. At the time he was

was

his

serving

period

missionary for the Mormon

as; a

sacrifice .which all good Mormons make.
hard-boiled

coal

mining community

He

was

of Newcastle,

Church, a
serving in the
England. On

occasion as he was making his "soap box" talk and passing
pamphlets, an unruly crowd gathered and soon there were
demands, "Let's take him off his feet." The crowd moved in. He
and a companion stood back-to-back. He resorted to a practice
taught him from birth and which he has practiced ever since. He
prayed.'
'
; f
■.
;
•v ■/ . 4.
{'
one

.

.out

as an

dictated

r

an

sucb as
Washington.. Now in his fourth

factor

actions

<

family,, and "what:"

in mid-August.

give

*;

book

Production plans call for its

to make, reveals a man

,

cycle now is becoming a fairly.
long one. So thoughts will begin
to turn to 1957,- and preliminary /
forecasts
will
be
put together

that

against in trying to force a farm bill on him
:
that he doesn't want, that he doesn't think is good for the country.

v

.

a

rJ

7

say

However, this is
advanced plug to the book, but
to say [that the politicians in Congress, I am
sure, don't realize the type of man they are up

figures in'.
show only
slight de¬

factor

product

third quarter

small

his

and

Benson

publication

Reflecting these fac¬
production and gross na¬

tional

Ezra T.

not to

rapidly.

tors,
the

•

by corporations/ Totals
loans
therefore may
rise

bank
less

funding of short-term

more

-

production, I might

engaged in the research-for

now

makes him tick.

debt

bank

am

on

though right now I personally/
independent at the time the decision was made/
doubt that strongly.
forcing
interest)
All this was contrary to a very
But
we
can * count
rates to move upward in perverse '
upon
a'-"
great number of economic fore-:
fashion.
$
icasts made just before the turn of steamed-up discussion of mone¬
tary policy, nevertheless. It againThe truth is, of course, that the f the year.
The 'better than ex-5
will be argued that the System
System does not act in this waj?.i pected business level, accompancausal

1

,

that attended Franklin D. Roose¬

to the flow

Finance compan-y

half rate.

first

a

trarily—that is,

Pus'ey,

Merlo 'J..

by

one

ly to rise more slowly in the sec- 'f and Bob Donovan of the New York "Herald V,
ond quarter.
In the third, there; Tribune," have come out in the last two weeks. 4
may be some liquidation, related;; Two. others have appeared, friendly, on Vice^. v
mainly to dealers' stocks of autos .> President Nixon. There are others, undoubtedly
and to steel.
Steel production isin the making. The production is not yet up;.

replaced by flexibility.

For

Administration,

Pulitzer prize winner for his two volumes on
the late Chief Justice Charles, Evans Hughes,

which probably will have a rather
: business outlook should be listed
bearish tinge.
long time many people the latest rise in the Federal Re-;
It is conceivable that these and
were unable fully
to accept this serve discount rate.
• It clearly
similar items may be enough"; toidea of a new order of things. I implies, it seems to me, that the
frighten the Federal Reserve Sys¬
They continued to believe that'expert analysts advising the ditem into positive action toward
the
Federal
Reserve
System • rectors of the several
Reserve
money -market,',. al-;
could and did act almost arbi- > banks held a very confident view easing - the

be

"Eisenhower

the

on

Recession Arguments

,

-News

argu-. dicative

A

3 million, despite the cutin auto production.
Busiinvehlories rose a little in the

head the
of

By CARLISLE BARGERON

facts.

these

of

some

are

ments?

naturally, in the outlook. Where, [first''quarter, but the rate of
tney want to know, are we going? [growth slowed somewhat.
So I'm prepared to give you some >
Capital
investment
expendiguesses
about that—if you will ;tures by business, in this second
allow me first to lay a ground- quarter, are at nearly the maxiwork

A

that a move-V
psychology may

follow,

may

Business inventories seem,

a

From

to

not deny

of the attrac-

at this time, possess the funds to take advantage
tive yields of governments.

•

and

views,

*"14:

-»r

pretty good case for

a

something

the bond market. Believes few concerns,

on

out

higher

economic outlook
capital spending. On

near

weighing long-run outlook, reviews bullish and bearish arguments and sees, in the shorter run, possibility of being a little

,

i

it is

as

the

their

supporting

Thursday, May 10, 1956

».

year
♦

By ROBERT VAN CLEAVE*

3

this

later

•

the Bond Market Bit Bottom?

as

.

restric-

..

t

■

Suddenly,/a big burly fellow at the far edge of the crowd,
began moving through toward him. "I've heard every word you've
said," he shouted, "and I am for you." •*
/v
'
/'

;-v

-

.

by eco-vied by a larger than expected de-'
tive policy and forced the cost of
they are?mand for funds both long-term
.•«This sought to check the mob until policemen arrived. He is
money so high
that it will not
one
of
the
factors
modifying > and short-term, produced the dea devout believer, in prayer.
In his household he opens the day
dare
do anything more
in that—
Ihose conditions.
'
'cline in bond prices and the rise
with prayer. He closes it with prayer and it is difficult to find a
in interest rates which we have direction. Those pinched by tight ;
•happier family of six children anywhere in the world.
Flexibility Really Exists
(
witnessed
since
February as a money already are screaming for"
relief and predicting dire conse-v
1
He introduced prayer into the White House Cabinet meetings.
Experience
since
-1951
has consequence,
In his struggles now with Congress he will frequently bow his
quences.
fhown clearly that flexibility in
Moreover, it still is an?
head in prayer and ask if he is doing right. Reassured, nothing
election year, and although this
Future Outlook
v
Federal Reserve
operations, and
nomic

are

conditions,

and

,

in

Now, what guesses

money rates and bond yields,
y±ally exists. The discount rate
* gain has become an
active tool,

you

It

look

has

been

ilve times

raised

since

less

no

April,

than

this

f erstood.

.posed

n

_

i^ymptoms
economic
fJmost

.

weakness

in

c^asy

this

tendency

turn

policies.

money

nately,
3

instant

an

carries

to

if

toward

with

it

change

a

This

case.

upward
ported

a

was

restraint

sometimes

real

losses.

For

the rise in

From

August

year,

and

unsup-

facts, and

example, there

government'
to

again

subsebonds

November

in

last

January this

year.

Present

Outlook

This present
situation, as far as
Available
statistics allow
us
to
judge, is one of continued highlevel
prosperity.
Gross national
product in the first quarter was

nearly
fourth
ftarts

$2

billion

quarter
have

above

rate.

the

Housing

recovered

somewhat

from

it

still

were

employment,
mand

act,

.

was

there.

and
finally

Minimum

for

the

the

unceasing de¬
building of more

houses, larger spending

to

produces

r*/-.+

rates, annual increases in
negotiated wage rates, nearly full

weak-

price movements
by

c:uent

from

4-

wage

jesses, and an eagerness to antici-

l£*te

long it

r\vr\

rem°ved, most people and nearly
all politicians still act and talk as

Unfortu¬

' exaggerate

■

by

gov-

Based

largely upon them are
the long-range
capital spending
plans of business firms, and the
confidence
and
willingness
to

„

d Market m Shorter Run
But *or the shorter rurv it is
Possible to be
mistic

on

a

little

more optiThis

the bond market.

yiew at present rests more upon
intangibles—the psychological at^tudes and expectations of in-

Unemployment

vest°rs and of professional

still is

slightly less

ket

,

ed
ered

1956

ISorp4?!.before the
°Cia

Nashville

c,eave deHv-

Secur^y

,

,

au-

Nashvil,e* Tenn., May




1,

are

have

a
sufficiently
intrigue people
hungry for profits after

the

rise

last, I cannot

may

be

may

no

and

go,

may

more

say.

It

than that of last

people—than

that

we

sion

which

drug

on

are

upon

headed
will

for

make

the market.

mar-

a

belief

a

reces¬

money

a

.

the

future

of,the

economy

proved right, it may go con¬
siderably further and last longer.
this

moment

few

Nevertheless, I
surprised to see
the

I

an

outbreak

of

discussion

and

have

outlined

fairly

sort

ment

not

The

be

and

close

ments is

are

.to feel

than

to

ever

tremendous struggle in this

all

the

It is all

of them have

come

to look to

farmer,

the

once

warmth

greatest

cur

Government

of

Benson gets his philosophy from the doctrine that "the Lord

.

helps those who help themselves."

I

He doesn't want
-

farmers with

one

as

it is

very

drastic

possible to get.

personable

conception of

,

man

as

near

their former individualism

He is quite firm in this determination,

of whom there is nothing like the

in this country, and my

important being waged politically

prediction is that although he

may

of

argu¬
soon

develop¬

required.

Anderson Strudwick

Eastman, Dillon Co.

To Be NYSE Member
RICHMOND,
Anderson
a

To Admit 3 Partners

C.

Va. —Edward

May 17 will acquire

on

membership in

the New York

Stock Exchange, and the firm

will

LOS

ANGELES,

Calif. —On

May 17, Dwight C. Baum, John W.
Mackey and Elbert J. Evans will
admitted
to
partnership in
Eastman, Dillon & Co., members,
be

Tex.—Ellis

Green¬

berg Company of Brooklyn, N. Y.,
have
4204

opened
B-35th

rection

a

branch

office

at

Street, under the di¬

of Herbert Greenberg.

of the New York Stock

Partners

Greenberg Branch

LUBBOCK,

have to

give and take, he will win in the end.

become members of the Exchange.

Ellis

a

common

;

man.

His battle is one of the most
•

*

He wants the farmers to be gradu¬

move.

ministerial

a

-

-

the Government to step out from under the

ally restored to their feet, to

be

ticklish things,

attention

more

a

determination which

individualist, too has come
protection, not realizing that
it is like taking "happiness" drug pills which are bound to create
an awful hangover.
'
7
.
,5
•

,

by fundamentals then
the big question.
These

turning points

in

price supports. All too many
the Government for their support.

supported
will

in

Men

reared

farm

concerns

should

symbol in

a

to be able to cope with.

well for industrialists now to sit around and complain about

very

are

At

seem

Government, to any outstretched hand that "promised."

year,

about

a

faith,

a

ranks of life had been broken.
They had
private enterprise system but the depression
had reduced them, all too many of them, to dependence upon the

how

when prices rose IV2 or 2
points, during a space of three
months.
Or,, if those who long
have
entertained
forebodings

It is

Capitol Hill don't

Benson has become

been

protracted market decline. How

far

to disturb him.

seems

country/ The New Deal introduced the "gimme" concept of Gov-:

to

case

sPend °f consumers. They imply —perhaps within a few weeks. A
a demand for money which at rise in quotations will
accompany
most times will exceed savings.,
it, and whether that rise will be
~

/

to me, the

seems

ernment for more and more dif- actually have funds available
ferent purposes, the official de¬ with which to buy governments,
termination
that
no
recession even though yields appear ex¬
must be permitted even to get tremely attractive. They are at¬
started — all these things are tractive, of course, precisely for
that reason.
"
^actors.

last year's
low, and appear
to have stabilized
at or
slightly
fcelow a 1.2 million
annual rate.
—

will

plausible
a

v\l

earth

the politicians on

ernment.

Altogether, it
bulls

who

r«vv»

on
,

so

down.

employment
though the adjective

the

situation, confident that

anything pointing in that
be taken as a sig-

for

inflation¬

an

far, the idea
that it must bring about an' easy
money
policy
simply will not

,

full"

direction may
3/al

_

visible influence

no

the System

upon

in the Employment Act of 1946.
That law was originally titled.

for

«

of

,

fact has had

related to the concepts embodied

the market—and who of

not?—anxiously watch

J

—

that for the long run my outis for a gradually rising

bias in the economy,, mainly

ary

clearly unbullishly
dis-

more

Those

on

is

lu

is

warn

the idea that there is

oditiously lowered.
Now

make

trend of interest rates and of
bond yields. This view rests upon

1955, and

it could be just as
easily and ex1

can we

I should

about the future?

Mr.

mund

are

Mr.

Anderson,

Ed¬

Strudwick, Jr. and George

Wayne
member

Anderson.
of

Exchange.

the

The

firm

Richmond

is

a

Stock

Evans

Board

and

President

Inc.,

with

is
Mr.

Baum

of First

is

of
a

the

Vice-

California Co.,

which Mr.

also associated.

Exchange.

Chairman

Mackey

is

Volume

183

Number 5532

.

.The Commercial and
Financial Chronicle

.

ll

(2247)
To

start off with, I would like *
from 1940 to
1950,qlon,e, Brazil al*
to give you a' f e W
highlights on' mos't doubled the number of her
Brazil. First of
all, Brazil is big industrial establishments
from
—both in area and in
population. 49,000 to 89,000' and
they are esti¬

Brazil's Investment Opportunities
By J. PETER GRACE*

President, W. R. Grace

&

/

.

Co., New York

changing investment develop-

ments

»

already undertaken, and the massive growth potentials
"unmatched in the world," in
advancing the assertion that
Brazil offers a unique
opportunity v for American private
capital with much of her economic potential yet to be

of

economic

development;

and

•

Ford Motor

is

an

In

that

tons

This

recently

become

k

the

in

A visitor to Sao Paulo

practically

the

'.

'

1949,

by

added

^

f K cTtury.2if
that

vd eve

imTni

m mlgem!nt,
rapidly, head;of cattle and: 155,000
lopi n g of/land this /pompanyvftas
nd,

SKSfWW*M

the

praise

of

present
J

i

population

^

as,

1920's

area

buildings

of

Sao

being

are

11.8 mil¬

on

of the tempo of

activity, there

approximately

Brazil

40

•

had

round

are

trip

flights

daily, excluding interna¬
tional flights, between Sao
Paulo
and

Rio.

Excluding

in-transit

passengers, air traffic through Sao
Since 1938, Brazil's, Paulo
has increased from a total
cement production has risen from
of 264,000
passengers in and but
681,OOQ tons to >2.7 miliion tons,
during the year 1946 to 997,000
or by 290%—about twice as
fast passengers in
1955, an increase of
as the 150% increase in the
United some
277%.
States during this period.
Belo Horizonte is another
|
Ex¬
In .1946
electric refrigerators
ample of a Brazilian boom town.
meet demand.

•

..

/jri_^^ ^mp^ssiye

Brazilians for

the

urban

being
rising sky¬

the average of one
every
18 minutes. As a further
indicator

increased

,

'..In

Paulo's

the

new

started

con¬

skyscrapers

Sao

In

Paulo,

only
one cement plant.
Today it has 31
and the
industry is planning to
ofthe;
spend $50 million in expansion to

acres:;United,States."
also;,>;

newsprint

from 5.4 million tons to
lion tons—120%."

new

to

line.

being

Last year he would have

47

seen

can

own

skyscrapers

structed.

109,000 tons of
paper
other than newsprint in
1938 and, by
1954, 298,000 tons, an
increase of 175%. In the United
States,. the production of paper

.

.

he

three

■

today

this growth taking
eyes. Back in
would have seen only
see

place with his

from 32 million

million* tons,; or
•'

excluding

is

Chile.

Brazil produced

•

amount

exception of Venezuela, Cuba and

'

n o w n

►

88

rose

175%.

Kleberg family of the at the
amazing rate of 2.4% a year
King Ranch, is revolutionizing the: —or at a
30% faster rate than in
primarily
as
a
United
States cattle
raising industry in central the United States.
*
chemical company, it has its roots Brazil
by introducing the Santa
', To put it another
deep m Latin Gertrudis breed. This has
way, Brazil's
enabled
present population is greater than
.-had...dh
Englislvbe^? type of.cattle for ,he United
the lessons we the first .time to
Kingdom, and four
resist the local
times that of Canada.
have learned .ravages of hoof
By the end
and.mouth disease
,0f 1980, its population is
in
mote than and climate.. In addition to
estimated'
highly to equal'over 105
million/ or 60%
:
more

to

This

area.

,

steel •" production

United States

Paulo

greater than for any of the other
Latin American
republics with the

1938, Brazil's

crude

country's vitality can
be further
appreciated by the fact
that its population is
increasing

........

Sao

"

tons. By 1954, its production had
risen to 1,292,000 tons, an increase
of 1,200%.
During the same period,

,

.America's total of about 122 mil¬
lion.

25% of the

.

crude steel pro¬
duction amounted to
only 101,000

big in anybody's book.
Brazil's

petroleum refining
capacity.

,

—

other products.

population ;•* presently
stands at 58 million
people, which
is just under
one-half of South
.

..

with

make

States, including Texas—and

despite revolutions,-

Company.

& Co. has

To

pointed comparison—

is bigger than Texas!
As a mat¬
ter of fact, it is
bigger than Texas
plus all the rest of the United

.

Although W. R. Grace

America.

more

hope that some of my Texas
friends may hear this
one—Brazil

•

political unrest, exchange difficulties and
inflation, Americanbusiness has done exceedingly well in
Brazil, as illustrated bythe remarkable
expansion of such firms as Americani Home,
Products, Sears Roebuck, Lone JStai: Cement Company, and -

-

,

and I

idevel-,.

and

South

.

steel and laminated
115,000 today.
>.■
products output.
Today Brazil is manufacturing
At the end of 1954 it is
ail
esti¬
increasingly substantial part of
mated that about
its own needs
$600 million of
including railway
United States direct
equipment, radios, refrigerators,-,
private in¬
vestment— 60% of
machine tools* precision
instru¬
xthe total for
Brazil
was
concentrated in the
ments, diesel motors and many

Brazil accounts for half

area

even

oped. States the Brazilian investment climate is
good-; foreign
investors are eagerly
sought for the long pull to hefyj her indus¬

trial

In

.

railway'mileage."

65%. of the

mated at

Brazilian Highlights

Mr. Grace reviews the
rapidly

"..35% of the
:

® Vu3--

•

On- various
occasions

fo

m

mention/ International

vaster

Sears

Roebuck

Har-

were

*£ucu ;yiin quicK intelligence
great common sense.
They

Fairbanks

S:i,Jlld

.mostly imported j.nd were
theXwealthYT
Today

only .'for

.

Brazil

produces^LPOjOOO

units

a

and production is scheduled

year

•to be doubled within the next two

Before the

years.

vital

.

^

role

-of.*" -Chile,-

Colirmhin Mevi™

nnH
Columbia,Mexico,and

American
American

which

being

-

yji

other!Latin-

countries m
countries in

is

time

Venezuela,
nth^r

written

In

of

our

other.

vital

more

to

s.

j

est.

economic
m

greatness,

and

I

should

like to discuss it from the
point of
view of a businessman.
But before going any

emphasize that 20

years

of train-

ing in the Grace organization have
taught me that no North Amerishould think of

a

important role in

our

•future.-The point is that we can
engage in business there, earning
a profit for our
stockholders, and
at

the

the

time

same

contribute

Although
ican

^

Opportunities

main Latin Amer-

our

interests

have

been

any

concen-

investment

creased

225%

for

in

tury
From

more

trade

our

Latin

than

and

long

America

half

a

in

cen-

commerce.

experience.

we

in

convinced

are

that, for massive growth potential,
the opportunities in Bram are unmatched in the world.
I hasten
to
*

state that

our

of the industrial

by

no

of

many

.

knowledge

in

BrazJ> 1S.

profound as that
American c o n c e r n s

means
.

own

field

:

_

and

in

Brazil

in-

manufacturing

investments, where
portunities lie, at an
rate—325%.
-

Fifteen

t

a

1S

total

middle

best

our

as

op-

turned to the First National Bank

select
Herbert
Prochnow. A Chicago firm, International Packers, in partnership
to

„

'

»An

-

address

Execot^es'

by

Club

Mr. Grace before
Chicago, April

of




51%^of the
in

all

of

the

mineral-rich

Today

it has

twice that many

over

ple—440,000.
outside

the

filled'and

An

•

city

-

the
20,

peo¬

industrial

limits

has

area

been

one
is being
planned.. A German firm has ;set
up a 96,000-ton rolling mill. RCA
a

new

is building an assembly plant .for
tubes and electronic parts. Some
12

other

plants are either being
already in operation. Pop¬
ulation is increasing at the
yearlybuilt

or

rate

of

5.4%,

or

over

rate of the entire

twice

country.

the

Fifty-

five

flights a day are handled, by
city airport. Belo Horizonte,
in short, has all the sounds and
sights, of a first-class industrial
the

boom

town.

■

*

*

'

\

Specific Industries
In specific industries the
names

,

here' Bra?xl bas turned itself from

an

agricultural country which irp-

'America and accounts for the fol¬

ported just about everything, ineluding

ice^- to

industrialized
America

Amer ca-

the

most

nation

In

the

1

40%

of Brazil's total

highly

in

45%

neriod

Vy

P

that

of the

installed

lead

industrial
are

Soviet

In

chemicals

Pont,

electric

Solvay

you

of

will find

Belgium,

Continued

$3,750,000

Premier. Bulganin's remanifesto to Latin

America

indicates

danger of

a

that

*

there

in

vacuum

is

New

economic

leadership in the Western Hemisphere.

The
that

it

United

on

•

work

closely with Brazil.

challenge

Brazil is not

Nation, /for

one

our

been friends for
before

Brazil

repubiic and

nomjc

the

as

..

.

'*

•

'

.

'*

Equipment Trust Certificates
(Philadelphia Plan)

it pertains to

countries

have

To

-

>■

mature

$125,000 semi-annually December 1, 1956

to

generations, even

adopted
after

herself

a

our

challenge is

an

<

,

constitu-

a
•

tion
now, therefore,
is whether
American private capital is going
to increase substantially its investment in Brazil, working with
Brazilians
in
developing
their

tremendous natural

resources

and

huge industrial potential.

v

■

'

Priced

,

*

•

as to payment oj par value and dividends
by
Chicago and St. Louis Railroad Company

,

eco-

June I, 1971, inclusive

To be guaranteed
unconditionally
The New York,

-

own.-

one..
.

*1

3%%

'

of political culti-

declared

m0(jelled

Rather,

Equipment Trust of 1956

particularly
.

;

York, Chicago and St. Louis Railroad

must

leadership, and to do

must

>phe

States

to

yield 33/s% for all

maturities

*'

r

'

Issuance and sale of the Certificates

are

subject to authorization by the Interstate Commerce
Commission,

The Offering Circular
may be obtained in any state in
such

of the

undersigned

and

other

dealers

as

may

which

this

announcement

is

circulated from

lawfully offer these securities

in

such

only

state.

-

^

DICK

&

THE

-

'

'

HALSEY, STUART

MERLE-SMJTH

R.

W.

May 10, 1956

&

CO.

Inc.

& CO.

WM.

INCORPORATED

SHEARSON, HAMMILL

A CO.

PRESSPRICH

ILLINOIS COMPANY

fields

far from,

strangers in Brazil—
industrial

capacity.

Oy

the

throughout the world

establishments.

Latin

in-vear

e

lowing:

cent economic

headquarters are here, in You will all recall that Brazil-s
Chicago.
In fact, Chicago is a. dynamic new President Kubitsreally * great center of knowledge chek made a special trip to the
in this country regarding Brazilr* United States just before his-inian and'other foreign business. auguration last January. He in*
When this country needed an vited
American businessmen to
Assistant Secretary of State for bring their talents and their exinternational economic affair^, it perience to his country. The quesChicago

for

spindles

for

greater

even

whose

of

accounts

cotton

.Latin

'

'

years

was

Brazil

Bmted ;*atef Srew m £conomic strength.
A strong

.

* ago
the Sao Paulo
important principally as
coffee,;cotton and textile center.

area

X
story

capital

a

state of Minas Gerais and laid out
like Washington and Paris.

Soviet Offer to Latin America

assert

active

V

exciung

made :c]ass
this direction. To- '

private

So

been

"

-

already

other Latin American country.

organization

has

*

•

sym-

!bol of Brazil's economic
growth is
the dynamic area ; of Sao Paulo.

million

a

r

Undoubtedly, the greatest

businessman

make

tbe'-y^ 7T^F^

Equally impressive ' is the fact
that, during the eight years from
1946 to 1954, total U.
S. direct

trated in the West Coast countries
of South America, still the Grace
Brazil

small

before he quits
wX
n

century.

,

The

firmly expects to

-

*

Brazil's Unmatched

,

growing market.

assistant
assistant tnriav
today
assistant tndav
6ne-man repair shop to-

our

for

20th

a

morrow

the

in

policy

the

have

we

of

one

•

years ago it was staked
population of 200,000 as

to

future security of the WestHemisphere.
" «'■'

ern

is

.

a

.

Latin Amer-

ican country purely as a business
proposition. Latin America has a
vital part in our present and a

,

im-

billion.^ Exclud-

further, I should

more

of

was

America, 45% of which are
with increasing
a good start in
purchasing located in Sao Paulo.
Exports of
power
is rapidly developing in
tal U S. direct private
•cotton and coffee from, this area
investment Brazil;
This opens up
in
Brazil
promising account for
at
the
end
of
1954
46% of all of Brazil's
new
economic vistas in an area
amounted to $1.1
which is big in» a market that is exports." ' Furthermore, the Sao
ing the $1 billion of U. S„ capital
growing- and in
a 'countrv
Paulo district today represents the
that
invested in the petroleum
indus-.wants American capital.
try in Venezuela, Brazil has more *
largest concentration of industrial
y •
U.S.direct private investment than
01
strength and potential in Latin

manifest destiny of economic and

much

of develop-

elements

foreign

half

Today

opens

States-Brazilian

think

.....

The < mechanic's
*

V""

relationship to the full-

important

second

;

This vast and dynamic.nation is
now within
striking distance of its

can

United

This-1

.

,

„

j

-

political

the

most

any
,

we

.

+

that all of you will
agree
thaf we-have not even
—.v
j:v

economic

the future

western world
than
I refer to Brazil.

mu-

me

ing

the significance of a
Latin American
country which is

all window

gJ:at .,C0T vstreet cleaner sees his son go into ported.u. Today four large modern
have'in Brazil l f
8
SOn,g°
'°
3 e n f*razll> 1 factory work earning good wages. plants are supplying the ever¬

begun to begin thejob

t

you

perhaps

sure

with

;*—

-

ohA, iA
tlj. *
Today I should jlike *
to discuss

with

rr

am

..our ■

.

Desnite the alreadv great eco—'

nomicHake
om c

the hktnrv
ine nistory

war

glass installed in Brazil

Fifty-eight
out for

E.

FREEMAN

&. COMPANY

POLLOCK & CO.,

McMASTER HUTCHINSON

*
.

.

•

&

INC.

CO.

du

Kop-

page

31

The Commercial and Financial Chronicle
12

Thursday, May 10, 1956

...

(2248)

ought

be

to

:

.

and

nonpolitical

should serve the members of, the

objective

House and Senate in an

limited number of prob¬
lems dealing in general with eco¬
nomic growth and stability.
way on a

P. SCHMIDT*

By DR. EMERSON

Research Department
Commerce of the United States

Director, Economic
Chamber of

....

which

Council

of

Economic Ad¬
visers and the

Con-

Joint

i

g r e s s

nal

o

Committee

on

officials

have

Economic Re¬

House.

With 10
of his¬
tory, has this
Act justified

are on

port.

years

itself?

Per¬

haps
a

brief
i s a 1

a

;p p r a

would

b

i

e

n

A

Schmidt

minority

individuals

of

and

organizations are still skepti¬
cal. In part, this skepticism is a
carry-over from the original ver¬
sion

of

1945.

bill

the

that

At

introduced

as

time,

the

in

growth

and progress of our economy were
not foreseen and some people in

Washington

were

the "mature

economy" thesis and

the

view

tem

was

sive

to

that

economic

our

stagnant and

human

that the

created

still struck

bill

bureau,
for over-all tight

way

economic

planning
Washington.

Even

felt

have

superplanning

a

paving the
from

Some

would

1945

sys¬

unrespon¬

needs.

of

by

the

if

control

and

and

some

Bureau
White

System;

Budget

the

Interagency staff groups
call by the Board. Possibly
of the other lending and

some

lishes

minutes

no

issues

and

no

releases. This has helped to keep
of

out

politics.

offi¬
cial
agency
which attempts to
get the benefit of the experience
and thinking of key government
departments and bureaus within
the Administration.
It provides
This

Board

provides

checks and balances.

of

establishment
Council

an

Prior to the

the

the

Board,

viewed, at times, as
stepchild or an interloper. But

a

was

establishment

the
has

of

Board

the

to give the Council
prestige.
This has added
weight to its
recommendations
and
better internal responsive¬
helped

ness.

law

had

not

such agency

obviously
needed.

was

ber's

been

as

the

something

more

Each Cabinet

mem¬

primary concern is with his
particular jurisdiction.
The

own

is

same

true

of

the

dependent agencies

heads
and

in¬

of

bureaus.

With the central government col¬

lecting some $75 billion annually,
spending a similar amount (about
$65 billion net) and, at the same
time, having to manage a debt of
over $275 billion and 'concern it¬

1'0-year

period,

the

of enormous proportions.

Council

of

as

Economic

Ad¬

concerned with the gov¬

ernment's
its

great

may

own

"housekeeping" is

value.

Correct

policies

help foster conditions

able

to

and

the

private

economic

stability of the

favor¬

growth

value

of

our

money and of the economy, as
the U. S. Chamber
pointed out in
its study "Can We

did

different

Council

bers

Not only
the

of

members

have

rather

the

of

Council

ought to be
objective analysts and exercise
a passion for anonymity.
Obviously, the
have

advisers

confidence.
in

be

the

President must

in

whom

These

reasonable

President's

he

advisers

has

must

sympathy with

general

economic

and

In

Our

1953,

President
a

Eisenhower

reorganization of

*Text of
testimony by Dr. Schmidt be¬
fore
the
Joint
Committee on
the
Eco¬

Report,

of the House and

members

other

Senate.
Means

The

emphasive which the Eco¬
nomic Report places on freedom
of enterprise, initiative, innova¬
tion,

capital

venture

there

admirable

is

motive

are

a

profit

and
—

although

number of deviations

tles.
must

Washington, D.




the

C.

crash

of

This does not
be

recluses.

ticipate

in

political bat¬
mean that they
They

public

can

par¬

discussions

of

technical
questions,
make
speeches and publish professional

articles

of
analytical character.
they should not publicly be¬
partisan party hacks if their
work is to command the respect
of both political
parties and the
public.
But

come

.

from these basic concepts.

social

The

free

importance

the

of

market, while recognized, is

taken too much for granted

with¬

explicit elucidation it de¬
For this reason, we would
stress the importance of

serves.

to

usefulness.
The

ence

and

market

of

price control

interfer¬
are

ever

present in any democracy; some¬
times the threat-is general, some¬

control.

Some of the Latin Amer¬

ican countries have taken similar
action

with

other

commodities.

General

price rollbacks are be¬
ing discussed by several legisla¬
tures throughout the world. Thus,
in parts

of the world, symptoms

treated

Joint
on

Congressional
the

President's

nomic Report is required
to
evaluate
the
annual

causes.

A

high official of the International
Monetary Fund recently
stated
takes

cues

in these

from the United States

policy

areas.

Com¬
Eco¬

by law
report.

a

our
own
country there
disposition at times to resort

to government

price control

as an

out. Agriculture is not
the only example. Just last year
easy

way

labor

leader

urged the Joint
investigate prices
on
a
broad front right after he
had
secured
"the largest wage
package
increase
in
history."
Government
lending and loaninsurance
programs
frequently
a

Committee

specify
terest

to

some

rate—a

predetermined in¬
price fix¬

form of

ing.

tively,

free

vivid

that

it

and

a

host of legislative
No

the members of this Com¬

doubt

feel

a

artificial

and administrative headaches.

place for the

see

and

price supports are likely to lead
shortages and gluts, respec¬

it

apd

controls

to

mittee

Committee,

icon noo

are aware

of this, but per¬

haps the danger of displacing the
market

can

be

made

by an illustration.

more

resources

The

to

are

be

in

used

plight of agriculture illus¬
clearly what happens when

trates

At the free market

price of 50c

the

900

prices

demand

the

price level.
Obviously, the price

For

may

in part of

to

tend

In

dollar

of

receipts.

At

reduced.

almost
and

a

The

lands.

control

rent

with

ences

the

1

important equili¬

brating functions of the free pric¬
ing
system
may
cause
more
solve, although
shifts in supply and purchases are

troubles than they
not

instantaneous, taking time to

come

On

about.
the other hand,

let

us

sup¬

that, for political or other
reasons
the government decides
pose

10c above the free
level, to 60c per pound.
The demand line, DB, crosses the
to

40%

price line at 900 pounds per

But the

out

opposes

of

Economic

that

Report

1954-55

cotton

our

in

exports

over

were

under

producers at this higher

case

of

"increasing proportions

tobacco,

are

moved

under

'

special export programs"
(page 57).
Again 7 theReport
points oyt, "The moderate rise in
our
total
agricultural
exports
from

the

than

low

of

accounted

1952-53

for

is

more

by subsidized

sales, sales for foreign currencies,
sacrifice sales, and donations."
Again

we

are

told, "Increasing

proportions of gross and net farm
income have come from the pub¬
lic Treasury.
In spite of this,
farm income
has
declined
and

farmers have continued to

many

be

subject

to

tight

restrictions."

(Page 58.)
The Report says that in consid¬

put prices

market

60c

sur¬

price.

special programs,
including the Export-Import Bank

interfer¬

other

lower

a

con¬

ship

Department

loans. And in the

why price ceilings,
and

at

The

points

inevi¬

•'/»

State

domestic
and

this for fear of alienating further
the agriculture producers in other

manufac¬

'•

shows

abroad

moved

substitute it for other metals and

This

grain under which

charge
one
price

pluses

the

now

materials.

solutions, some
two-price system

would

sumers

an¬

figuring that copper
bargain, will study Ways to

turers,
is

become

Fabricators

resources.

for
a

we

Shortages then arise.

Scarcities

reallocate

for cotton and

artificially depressed price it now
finds that losses occur, so output
is

to

the search

people suggest

reduce

production just brings in

indicated, mild types
tight supply." (Feb. 12,

High-support prices reduce the

output.

other

over-all

an

is

incentive

Then their losses
may be minimized.
That is, each
company tends to expand produc¬
tion until the last dollar expended
on

a

stor¬

1956.)

his output, all produc¬
will

"Although

say

in

are

producer is marginal

time

in

ers

in

story headlined "Paradox
Coffee Industry," went

surplus

And

out.

drop

had

we

wheat

we

to

on

,

tag fixed

Producers, furthermore, at this
price may reduce ex¬
traction and refining.
High cost
every

of

certain

Times"

depressed

producers

while

bushels

Plagues

about

since

the

and

have actually been short
types of high-grade
milling ' wheat.
A
"New
York
of

government is not bringing
an equilibrium price.
De¬
supply.

by

example,

billion

1,100

,

products

so much to prevent the
price
system from allocating resources
and guiding production.

only

,

farm

done

crosses

curve

of

farmers, while due to
many
factors, is heavily condi¬
tioned by the fact that we have

pounds as can be seen by notiug
where

as
ac¬

income of

age,

the 40c

The

exports and the drastic decline of

price

But at this new low
demand

displaced

cumulation of unmanageable sur¬

pounds.

(b)

.

consumers"" will

is

market

pluses, the decline in agricultural

(a) At the price of 40c, the sup¬
ply offered by sellers will be

free

the guide to production.

day.

Within
is

Many individuals who supported
the bill as finally
passed, or favor
now

of

.

The Joint Committee

Joint

instead

controlling

controlled if produc¬

be employed most constructively.

times

piece-meal, step by step.
The Province of Quebec, for ex¬
ample, has just adopted an in¬
volved scheme of newsprint price

be

must

the way consumers desire and our
human and other resources are to

Quantity

table.

threat

Price

The

9oo

their

that much of the rest of the world

the

Prices

rather than

mand exceeds

of

mittee

the Council and the
establishment

nomic

ies, it could, over a period of
time, deepen the prestige and in¬
fluence of its findings with the

are

-

Economy?"

recommended

hearings, releases and stud¬

political outlook, but at the
same
time avoid being yes-men.
"Speak out boldly within the halls

Depression-

Proof

1

mittee adheres to these essentials
in its

on

of unfairness
whose ox is gored,

ring against each other.

rampant

less

abroad.

explaining the nature of the free
market, its function and its social

avoid

visers, in theory at least, is nonpolitical and is a nonoperating
agency.
Its study, research and
advice

it is

like

rough going.

some

depending

into politics,

feelings

and finally may drive a citizenry
into hostile, opposing camps war¬

we

Council of Economic Advisers has

Executive, but prudently
elsewhere," expresses this well.
self with credit and
monetary pol¬ Above all, if they are to be of
icy and with multibillion dollar most influence and
use, they must
lending and loan-guaranteeing ac¬ not lose the
respect of their col¬
tivities, the impact of all these leagues in the academic and busi¬
upon our economy is,
inevitably, ness world. Therefore, they must
The

is

present,

out the

the

generates

high-level
employment, the per pound, 1,000 pounds are sold
in this market each day. This is
sanctity of private property, free
the equilibrium free market price.
competitive enterprise, the im¬
At
very
high
prices
demand
portance of the profit system and
would be relatively low. At low
sharing
the
benefits
broadly
through the natural workings of prices, say below 40c a pound, the
demand exceeds 1,100 pounds in
that
system among- all
groups
this market each day.
within our economy. Growth and
If by law a ceiling or maximum
stability are on the tongue of all
students of our society.
Conflict price of 40c per pound is fixed in
between
means
and
ends,
al¬ this market, trouble starts:
than

produc¬

#nder what

and consumer groups

any

though

whose?

and

tive

States

but

What of the compli¬
enforcement problems?
But such action drives producer

judge.

United

to cut out some:

or

—-

conditions?

as

more

Over

mand

tion

and

had

tion of decision- and policy-mak¬

ing,

in

here

divergent
Council
of
Economic
Advisers views on proper economic policy,
would probably Have -come into but 'considerable
diversity
in
existed
being. Today, the United States views
concerning
the
central government is Tr$"75~ bil^r proper-public -function—of-mem¬
lion industry."
While the White bers of the Council. Some wanted
House and
the weekly
Cabinet to be in the thick of the political
meetings provide some coordina¬ battle. Others felt that the mem¬
passed,

Senate

the

of

;
^...
loan-guaranteeing agencies should
But here we have a few essen¬
be represented on this Board since
they deal in billions of dollars. tials on which all or nearly all
The Board meets weekly. It pub¬ of us can agree. If the Joint Com¬

it

order.
P.

E.

Dr.

including

Reserve

the

of

lifting, attempts may be
made to invent or create new de¬

ance

other major country.
Americans are widely agreed on
a number of key essentials,
such

than

Council;

Federal

price

SA the supply;

today less fundamental po¬
and economic divisiveness

litical

other high-level

this Board,

on

ceiling-price filing jnay be at-

other

from

deserve

the

Within

Agriculture; Com¬
merce;
Health,
Education and
Welfare; Labor; State; Treasury;
the

The

OX.

is

Economic

the

House is difficult to

marked the 10th an¬ of an Advisory Board on Eco¬
the passage of the nomic Growth and Stability. Ten
divisions of the government now
Employment Act of 1946 which
have Cabinet or

they

committees

of

President's

—

represented' along the
vertical axis—OY. DB represents
tfie demand at various prices and

price

findings and recom-*
mendations receive the attention

February

the

horizontal, axis

the

Committee

Council analyze this and, also, inventory
annually changes in free market expansion and construction.

for

in

covered

issues

Dr. Schmidt suggests

provided

of

that the number

suppose

Report. These hearings have add¬
ed a considerable volume pi use¬
ful literature.
Whether the Joint

stressing price level stability. The Report is cited to substan¬
tiate troubles caused by free market pricing interferences, and

niversary

us

io an
pounds id .vCPRper. de^ldp4
and' supplied in a local market- effort to establish an,equilibrium
are
shown in the figure, along price, or in the case of artificial

haps in part by the vast array of

and

budget balancing and debt cut intentions,

free enterprise,

Let

riety of subjects—stimulated per¬

simplification, emphasizing

valuation and administration

toms

held

has

Committee

Joint

The

hearings each year on the Eco¬
nomic Report and on a wide va¬

President's
1956 Economic Report and states an agency like the Conned
of Economic Advisers would have appeared if the Employment
Act of 1946 had not passed. Dr. Schmidt questions the
Report on: depressed area aid, minimum wage fixing, merger
curbing, catastrophic iHness reinsurance, and Government's
contribution to money market complexity. Commends the
Report for: recommending fewer transportation controls, cus¬
Economist reviews the

U. S. Chamber of Commerce

,

■

of

erable
quences

part, "These are conse¬
of price supports that are

out of line with market conditions
and of production restraints that

do not work well."

Even under the proposed soil
encouraged
to offer
more
product, 1,100 pounds, as bank program, the Report points
shown by the supply line,
SA. out that in order to insure that
Production, fabrication and scrap "the increased acreage in protec¬
metal collection under a higher tive uses will not lead to expan¬

price

are

price is

now more

profitable. Out¬

sion

of

forage-consuming

put will tend to expand.
But demand at this higher price

stock, it

is less

live¬

land put into the

than

supply.' So, the gov¬

that

has

been

recommended

grazing be prohibited

on

the

Acreage Reserve
specified period,. on

ernment, if it wants to make the

and,

artificial

land retired from crop production
under the Conservation Reserve

price

something

stick,

must

do

stimulate demand
"foreign aid," by
putting copper in storage, or it
may have to set up a bureaucracy
to establish and enforce "copper
for

copper

to

by

for

a

Program." (Page 60.)
While

the

commended

President
for

is

putting

to

be

these

forthright comments into the Eco¬

production," and "copper market¬
ing" quotas. Perhaps higher tar-

nomic

riffs

in

be

or

even

suggested.

In

import

quotas will

Report, advantage in gen¬
eral is not taken of the timeliness
spelling out the lesson which

such market interference teaches.
The colossal problems of admin¬

a free market, the free mar¬
istering all the market interfer¬
price is the only equilibrium ence farm
programs
are
overprice—where supply and demand,
Continued on page 33
are equal.
Rationing in the case

ket

Volume

183

Number 5532

The Commercial and Financial Chronicle

...

(2249)

13

Thus, it is conceivable that if this quarters of a pound of coal—a groups are active.
Manufacturers
"continues,
the
estimated 13-fold improvement in .our .use;.of j>ower
equipments,t chemioal
850-'y<?ar"'sii(>p'ly Would'.be' idh"**
•
•
llraa/electric" power companies,
siderably reduced.. '
In contrast here is the new kind engineering ana construction ortrend

.

As

Power Utility Sees It

a

It is
and

By HOWARD D. PHILIPP*

,

♦

p

.

on

plant; (2) there

power

by

the

of

major

of

use

commercial
with for

energy is
the
New

you

atomic
to

concern

first

the

would

from

we

of

interest

to

would, therefore, like to

sent

views

our

—as a

atomic

on

utility

power

of

electric companies
in

active

are very

the

atom

for

electricity.

the

They

generation

of

Edison

pany of New York,

firm
On

now.

It

the

over

reflects

Niagara

the

ton. Other

data

sorbed

obtained

in

a

are

cost

large

coal.

As

Thic
This

growth

During
be

the

the

to

activities

companies/'

the

a

generating

Today, the, New York
utilities"

5

million

serve

customers

with

generating capacity in

fuel

a

This

is

typical
today—a

industry

power

we

proud.

are

will

costs

continue

to

rise

(a)

re¬

more

the

on
•

'

difficult mining due to

deeper

as

and

total
of

In

growth of

assuming
have

we

have

been

(c) increased labor costs/;
We also believe that

ma¬

of

resoived

to

we

"

are

have

accepted

availability
sources.

tn
to

concern

what

as

of

our

Both

off

*

energy

these

are

re¬

di¬

au7P

But

in

operating

and

future

steam

in

in

exist¬

planning

for

system.

main

the

sources

of

conventional

oil, and

This

Increased

piece of

first part of our two-fold
is

something

we

have been faced

•An address by Mr.
Philipp
Atomic Energy Conference
N.

Y.

and

State

of

Polytechnic

Troy, N. Y., April 4, J956.
11954 Datat 5,133,846

before the

sponsored by
Commerce

Department

Rensselaer

the

problem,

In

become

an

Customers; 8,-




Receives

the

Challenge

"visualizing"
for

the

these posof

use

nuclear

-

to engage
studies
in

.

.

industry was invited
in design and economic
reactor

power

as

went
10

the

Street

into

1882,

year

when

the
ini-

for

generating

operation,

it

'

of

required

electricity.

obtained

in

was

tht| nudeLrTeariors

only

a

little

over

one

Be-

fuel-fired

p

The

Atomic

vited industry to engage in
reactor

study

carrying
ment

with

on

efforts

the

groups

their

have

own

under

*_ v

Power

Develop-

lts beginning m 1950,

was

to

more

This advertisement appears as a matter

nf

orgamza"on

TjnilPfi

th

of

its

type

in

Droiect

.

In

addhfon

manv

as:

Constructors
Inc.;
Ford
Company, and others.
Th

j

Motor

obiective of the Droi-

f breeder tv7e reac^

p^ucTetctrict^

™

iga MTyTyou LeTq^'n ed
with thfs t™e nf reaetor !n toat
7 nrod7^ m7e
nuclear
new

£uel than it burns up
Tflis quan.
.
excess
fuej mav then be
^

in

0ther

reactors.

We

^/Tower "generation'0 ^ther
Toups 7r indi7duai co!-

porations

follow different paths
their development studies. As

result, the United States should

a

At

a

full working knowledge

valuable experience of

many

tyPes of power reactors by the
en<* of ten years. Thus, our coun-

the

than 16 such>i;t?

.,

Continued

on page

of record only. T^o public offering

being made of these obligations.

fuels.

The

reserves

results

.„.,v

•,

Arrangements have recently been completed for
$235,000,000 of credits, of which $95,000,000

great

nuclear

fuels.

The

of

the

billion

total

heat

energy

of

were

$12,000,000

an

aggregate

represents
a

new

of

fi¬

refunding and

4 % Notes due 1976

4V8% Notes due 1976
Bank Loans due 1957

to 1962

Senior Subordinated Notes due

1964

conventional
Btu.

It

is

so-

The undersigned assisted the company in the negotiations for the above credits.

energy

is not
,

reserve

fuels

is

80

LEHMAN BROTHERS

estimated

that,
present rate of usage, this
supply will last the world ap¬
at

the

proximately 650

/

However,

heat

over

energy

years.

the past 40

consumption

wdrld has ^doubled every

10

7,/

Company

recasting of previous loans.

$23,000,000

years,

in

the

years.

May 8, 1956.

are

pursuing what we believe to be
0ne
pract!cal approadh t0 the

develop-

nancing since December 31, 1955 and the balance
in

uses

The

vftrn0Crornnra^Mon°^f Ampr£aCr° £ n
rllflnv Sn ^nairfpprc l

Fruehauf Trailer Finance
•

the

of the

power
facilities of the
ctatp<? arp rPnrP<5PntAH in

firms are members, such

j,;„ $235,000,000

fuels—coal,,

in-

the

^arch^nd dwdODment

have

been

agreement

Commission.

present time,

is

the

^erv Associates, Inc., which had

in

power

studies—a number of in-

dustrial

which I

anions

tnvoflLin
8
to

Gmdy

Since 1950—when the AEC in-

plant

of the increased thermal ef-

ficiencies

That

the Atomic Energy

the year ago.

pounds of coal to produce one

cause

passed

those installed by the New

York State electric companies.

Pearl

gress

plants

power

nroieTt

tech-

and,
during
1954,
*mrgy «s™

Act of 1954, under which private

steam

this One

are

k

£ompany> United ^ngineers &

-

.

19S0>

3 kilowatthours of electric
energy

in. modern

jpa

romr,

SgeTnlstria? orengme™"^

have gone much further

we

nology;
basic reason,
ng; Atomic

coal

4X

upon

coal, oil, and gas—and the

The

Institute,

.113,000 Kilowatts (Generating Capacity).

fa-

earliest date. Subsequently, Con-

ap¬

energy

of falling water, of course,
taken into account here.

costs,

generating

not feasible.

!

we see in

nfi

eartiet

re! c?u"try- °ver
m-re
electric

conven-

fuels

tnHav
today.

n«
us

mentioned

The types of conventional fuels

called

operating

are

thp

weighs 2Vi
pounds. From it, we can generate

such

piAPtVirntiTiiiAcfx^iAhT
plApfrip

? !, ^e?tc, ,uflllties

I

in

,

■

quite surprising.

generating capacity

Fuel Costs

hv

reactor

gas.

These, the world
quantities.

are
our

nuclear

ppnnnmv

fuel-fired

sibilities

natural

plants

because

jnrrpaspH

than just

importance

ing

L

corporated under the laws of

of

Industry

$100,000,000

an

energy

areas

termine the available

maintaining

our

atomfc he^sou^ces
use °* atomic heat sources
mote
where small

$100,000,006

to

and

of

Furthermore,

low
cost* supply
of electric power and are of
prime

related

abundant

Sfif-SS

fUe'f T 50 «>™entrated. and 80 zatfon and ^
easily transported, we can visu- nruan^tinn

A few years ago,
the United
States Atomic Energy Commission
made a worldwide survey to de¬

rectly

we
we

T have brought with me a box
develop five major
types
containing two kinds of fuel—one which
seemed
most
likely
to
conventional, one nuclear.
achieve economic power at the

(1) The hydraulic energy of fall¬
ing water, and
(2) The thermal or heat energy
released by the burning of

special

a

subiect..
subject,

resources.

cilities

Coal.

may

present energy resources.

two

today, we are faced with an
altogether different type of prob¬
lem—one, which you. might say,
challenge. It is principally a two¬
fold
problem dealing with in¬
creased
operating costs and the

-

of Fuels

We have been dependent

t

But

we

SL1

utilities,

\

produce electricity:

abilities.

the
the

to
to

availability

by tional

our energy resources are
pnnrprn

problem deals with availability of
our

with

which

electric

The second part of our two-fold

great state.

all

—

our

Availability

eco¬

responsibility,

confronted

carefully

the best of

a

continued

this

been

problems

many

power is

our

system

largely

operating costs and avail-

proaching the maximum thermal
country. ■ In our efficiencies which can be obtained
business, we are all well aware in coal fired
plants.
that an
abundant and low cost

nomic

vs.

the

supply of electric
jor factor in the

.

•

.

million kw.1
This amounts to
almost 8% of the total
generating

in

future

met

f
operations $re required,. plants today, we can now produce
(b) higher costs of transportation,- .the same energy from only three-

8

capacity

cxrofATvt

of

movement

fuel from the mines

future

that
be

^f

than

excess

must

kilowatthour

increased

after

■

show you our

in

because of the:

electric

more

product—

our

ca¬

pacity of 900 kilowatts and
portedly-served 59 customers
its first day.
power

have, in
decrease in

a

However, we can foresee in¬
creasing difficulty in combatting
these rising costs. We believe that

steam-eiectric plant — the Pearl
Street Station in New York
City.
had

the

record for which

Seventy-four years ago, in Sep¬
tember, 1882, TTiomas Alva Edi¬
son
placed in operation the first

plant

which

kilowatthour.

of

Electric Power in New York State

This

economies

general, resulted in
the selling price of

of

means

atom

me

in

face

other

presentation, I will

my

referring

these six

:'•*:■■■ '

\

abaD-

be
oe

years

and

economical and plentiful fuel. Let

energy

interesting to note that, in
of rising costs such as
this, we have been able to effect

Power

two

Recognizing this fact,

It is

Mohawk

•

thSe

close
close

verv
very

in-

power

would
wouia

-

mpahc

ability of

generated by hydro
1955—spent well over
$27 Vz million for coal alone.
the

-(6)
Niagara
Corporation.
;

the

our

generating
capredicted rate of

The Atom

creased

an

total

Electric

Ih

fuel-burning plants,,
,

con¬

(4) New York State Electric &
Gas Corporation.
&

exists,

From my remarks, you can see
why the two-fold problem of in-

tions—even with almost 40% of its

Gas

We," in

*

similar

tric

(5) Rochester
Corporation.

be-

a

use

example,
Niagara Mohawk Power Corpora¬

power

true.

with

nf nrimp
ol prime

of

sumers

not

installation.

Power

types of fuel have in¬

in

is

additional" supply
supply

level of $8.00 a

1955

Most all utilities

(3) Central Hudson Gas & Elec¬
Corporation.

.

atomic

energy

aaaixionai

past 25

Mohawk

of

source

pacity. At the
growth for the electric

my

manner.

Com¬

Inc.

the

some

electrical

new

creased

(1) Long Island Lighting Co.
(2) Consolidated

time

fuel

of

ton to

a

are:

,

®

State, firmly believe that it will be the
example, the desirable hydro fuel which will supplement and'
sites either under construction or compete with :our
existing fuel
not yet developed, would add only
supplies;
thereby,
solving
our
approximately IV2 million kw of problem of increased fuel costs

Since 1930, the cost of delivered
coal has risen from less than $3.50

furthering the development of

™

aI^iS^Ti»> '/u5??a!

approxi-

for

the state.

At least six of the New York State

generate

21/*

—

poten-

„

this

This

typical of all companies within

are

it.

sees

coal

—rrv

are

Corporation, but the trends shown

pre¬

energy

to

energy

of

sufficient

,

among
York State

competitiveness.

some

cost

years.

and

you

piece

has

others

many

fwt
people in New cahnot afford to overlook this
nroilrt
tiAtroif
th?
i
as Well as
throughout great new
potential
source
of
three years
the world, that an endless supply
years. Sk of the NeW York
Six
New
CUcigjr.
energy.
To those of us who are.
xv
muac
ui
us
wuu
aic
hef

slide, I would like to show
just what - has happened to

York State electric companies. We
believe our efforts in this work
be

tial

It

and

-

operate in next one to six
research and development by

electricity

generation; of

of

reserves

cerned, there appears to be

1955 ahd $5.2 million to be spent
by 1956; and (4) immediate
building cost savings are not expected bat starts are

The

heat

the

as

pounds.

ganiiations,

comprise these different groups,

hca

fuel and

being made to determine

known

same

*

...

..

proposals to build and

(3) $7.2 million spent

the

of fuel—nuclear fuel. This is a
bar of
uranium
weighing
the

mately ;8 million kilowatthours
The Atomic, Power Developfuels are approximately 23 times
electrical energy as compared fnent Associates, Inc., is just one
that of our conventional fuels.
to onlys 3 kilowatthours from an,
these many inaustriai study
j.
equal weight of coal.
In other groups who are actively engaged
Availability of Hydraulic Energy words,, we can
say that a pound ln nuclear research ana developTnsnfar as the
Insofar nc thA use r»f HvHranliA of uranium is pnuivalAnt tn nhnnt ment WOl'k. It liappens to be the
of hydraulic of uranium is equivalent to about
one
study group witn which I
energy from falling water is con- 1,300 tons of coal.

are

build the country's largest atomic

years;

that

;

energy

actively furthering atom
electric generation to meet the
challenge of increased operat¬
ing costs and reduced future availability of energy resources
according to Mr. Philipp in citing the atom as a possible eco¬
nomical and plentiful fuel which Utilities cannot afford to over¬
look. Mr. Philipp
reports: (1) Consolidated Edison proposes
nine Other

then, that we,
of us, should

s

Six N. Y. State electric utilities

to

: Note

.

V

-

all

means

definitely concerned about the
future of our. energy resources.

Mechanical Engineer, Niagara Mohawk Power Corporation
Syracuse, New York
On Loan to Atomic Power
Development Associates, Inc.,

Detroit, Michigan

wonder

no

that

be

\

34

14

(2250).

A

i

*

'

The Commercial and Financial Chronicle

j.

U. S. Steel Plans $3.25 Billion Capital

Challenging Period

'

v

_

For Consumer Credit
^

planned capital outlays. Calls for

support or finance

'

United States Steel

supporting non-excessive auto credit finding and, also,

reasons

,

at

also.

approaching the subject
earefully since never before to
my knowledge has consumer credit
been in

the spotlight
today.
Everywhere

much

as

as

it is

one

turns

challenge
ists

here today may differ,
informed people in this
country believe that continually

other.

May-^7

The current nationwide

available.

accumulated

the

it

Is

quantity

in

of

savings

1940

in

was

individual

total

of

an¬

Annual

1929

debt

repayment

.

.

,

M

re-

standing/ too
high? Has the

of annual disposable income

in out¬

crease

show

1953
and
1954.
The
GMAC.'average
monthly instalment on new and
only

of in¬

rate

—t
percent

ment dent

standings been

used

too

rapid in
the
past 12

a

cars

age of

Charles

P. Hsae

slight

now

a

over

lower percent-

the monthly disposable innf
of

pnmA
come

is

increase

thp
the

avprapp

average

household
-

months?

Are

-

than for many years.

down payments too

low and terms
too long? Are too liberal extensions borrowing from future sales?

We

in

GMAC

believe

that

the

amount of auto credit outstanding

that

out

wear

I

seriously

;

h

us

hurt

He asserted that such

;

Is*

Federal

Government

control

The changes in down pay¬
terms, which have con¬
tributed substantially to the quan¬
tity increase,
have
served
the
I should like to give you the
purpose
of absorbing price in¬
GMAC point of view on some of
creases and of keeping the amount
these interesting questions and, at
0f the monthly instalment stable,
times, to make one or two sug¬
(3) While more people have
gestions as to what we all might
bought cars on credit, there has
da to meet some of the challenges
been
more
income
available
to
imposed by pur current situation.
liquidate the debt. The stability
I shall confine my remarks
large¬ of
the monthly instalment has, no
ly to automotive credit.
doubt, attracted a new group of
buyers whose income standards
Auto Credit
terms of instalment sales? You

can

amount increased about

p y*

$4 billion

billion.

that

Few

people

increase

an

may

of

the

same

(4)

individuals.

This

ratio

is

much

greater percent¬
age took place from the spring of

better

1952 to the summer of 1953. This
fact does at least show that there
is no novelty in the current sit-

(5) Annual repayment of total
individual debt of all kinds calls

amount and

even

nation.

than

in

and

slightly

better than in 1940.

for only 15% of annual disposable
a

slight increase

over

would all agree
in 1955 was a

accent years when debt repayment
bas been absorbed comfortably,
development directly resulting The existence of more health and
from record auto sales. In the case unemployment benefit,
plans, soiiow

of

that

this

General

we

rise

Motors,

sales

of

cars

and trucks in the United
States in
1955 were 36%
higher than the

preceding

year

and

auto

proportionately.

dence

credit

One

need

^—I

in

ii...

continued

prosperity,

It r,r/ion arng in most
automo
dealers
resulting
resulting
uve

most

in

attractive prices to the
buyer, and
keen competition
among

lending

agencies.
'

considering

quantity

of

whether

consumer

standing is excessive,

debt

there

the
out-

r tonal

ences,

address
ABA

St.

by Mr.

Fiske

Instalment

Louis,

at

is

Credit

Mo.




the

ivzi

standard of living,
(6)

Dealing

with

auto

Confer¬

credit

5Hgher
ncnm»nrnh^7gS nnd.1lsp°^le
"c°™f p™bab1/ car to family livreflect the rising
mportance of a
6
ment*

new
.

f°F the

engineering improvew
7
has largely meant

Thi«
his

Contmued

on

page

43

we

that

the

Mr"

rafp

said;

—about

one-seventh

of

milk,

no

I

were

:

It is time to reappraise
a

^

0f

for

ton

mies could

total sales will be wiped
replacing this open hearth.
The new open hearth I have
just described will produce about
our

the total

4y2

times

capacity,

as

the

original

Mr.

; T"

■■

;

;

,

.,

could

competitive

industry,*

it

as

wears

out

or

sence

of

a

more

realistic

equip-

becomes

capacity it needs for its economic

renortine
reporting

„",d
7ooo 000 ton^
-L,UUU,UUU
LU11&

ths
that

U.

a

an

S.

v
year
J

tX

its

to

pacity during the next decade, the
-5t-*

would

"by

cost

the

$150,000,000

most

annually
conservative esti-

S.

Steel is

now

moving for-

ward with a program designed to
accomplish 2 500,000 tons of the
projected expansion in the next

f

J

d

one:half

to

three

vears

e^Insfon^

Respite
our
cent

the rapid
steeknaking capacity
years>

we

stili

all the-demands

of

continuing inflationary econ¬
means higher steel prices in

the future.

in recannot meet
our

custom-

*

re¬

higher prices for other

dustrial commodities

we

further

in-

?s

nf

have all

7

and

an¬

Cole¬

who

man,

is

;tne

Board

United
.

Com

bon

and
of

of

Car-

par,y1

director

a

several-

other

Sylvan C. Coleman

firms,

will

also

But

an

as

ample supply of

Where,.then does our re¬
sponsibility lie? And as a corol¬
lary to that question, I would pose
you another: Which condition is
likely to produce the lowest steel

of Dynamics*

and

as

a

mem¬

Committee,

Hopkins said.

He

was

torious
work

the recipient of the Meri¬

Civilian

during

office

of the

of

Award

World
the

for

War

II

his

in

Undersecretary

Navy.

Two Join Staff of

M« S. Wien&Co.
JERSEY CITY, N. J.—Robert S.
Wien and

prices in the end—a plentiful sup-

added

ply

& Co.,

the

member

ber of the Retirement

steel is.

of

a

-

"Inflation is not in the public

interest.

of

Chairman of

the

further evidence of the inflation
°f which I have been speaking,"

director

a

Cor-,

,

ivir.

Mr.

v"But higher steel prices, along
with

Mr. Blough continued.

'

mates."
U.

n«

named

Executive Board

of

ca¬

;

operations

Ly-

serve

omy

'

Steel

average

been

growth and military protection in

■

add

Steel's

this

obsblefe will average $350,000,000
a year for the next five
years at
,

S.

nounced.

treat-

.

the

present construction prices....

1

*

Company, New York City,

Dynamics,

as

keep the nation's supply of steel
intact and supply it with the steel

make

of

pound

President of,

,

...

Blough said that, according'm?nt of depreciation,, /there/is
" simply no other course.^
Tjo

cost of replacing plant and

T
In

on

method—

£0 £be most careful estimates U. S.

engineers

bottle

poration, John"
Jay Hopkins,

circumstances require and permit," Mr. Blough said. "In the ab-

facility

'

did."

highly

of

ton

and

&

namics

last.- resort—is"
by ' raising
prices from time to time in this

it will still cost
per

U.

savings possible by this .Chairman

"The; sole remaining

the
But taking this

much

as

a

or a

!*"-k

ocneiai

the

steel /than

present one does.
into full account

be effectuated

method.

.

more

of

has

vy^

one-third

loaf of bread,

a

ing the previously-announced

Steel stockholders that the Corporation was constantly making

out in
.

can¬

After analyzing for the Corpo-

sults

open

one

we

Sylvan Coleman Dir.

total

our

that

that

If that course of attack on in- during 1955 and the first quarter
dustry's financial problem is una- of 1956, Mr. Blough said the secvailing, the "only other possible ond quarter of this year presently
solution" is to increase the profit promises "to be the most active
margin substantially, Mr. Blough in our history."
asserted.
The first of two ways in which
that can be- accomplished' is. "by )
increased efficiency of operations
and consequent cost reduction," 7 Sylvan C. Coleman, a partner in
Mr. Blough said. He told U. S. the investment firm of E. F. Hut-

great strides in that direction, but
hearth plant.
So every penny .of .that there were frigid limits" on
profit „we made on one-seventh the rapidity with which econo¬
pay

*

al¬

ration's stockholders at the meet¬

realis-

0 revlse

>

forever paying more
each year for the same

of steel."

in-

tically."
have

we

,

?

6n

article—whether it be

depreciation
longer serve the

for which they

elsewhere—are

their feeling,

more

tended.

$64,-'
today's

customers

our

share
and

provisions

>

that

go

come,,

.

gov-

and

not

has

»

ready gravely concerned by the
seemingly-endless wage-price spi- ■'
ral since the beginning of World
War II.
These people feel, and I -?-

the

law.

Chairman

said

ernment

The

purpose

on

from

for

Board

"many thoughtful people—in

,

he said,

■>

further

a

meeting of stockholders, the U. S.

to the fact that these

c

however, will have to come out of
profits—our
profits ; after
taxes.
But in order to earn $54,000,000 in profits after taxes, we
have to earn $112,500,000 before
taxes.
And, last year, it took the
profit on 600,000,000 of the dollars
received

_

have

we

steel."

think, when
Congress should face up squarely

our

we

,

whole

a

responsibility to avoid, if possible,
strike that would choke off the
supply of steel and bring serious
financial
hardships to ?• workers
and owners in hundreds of plants
that
depend on that supply of

Steel

can only be done by

provisions, of the

time

the

spent

we

.

and aspirations
employees. And to the na-

as

Earlier in his talk to the annual

■-

'

u

tion

'

open

an

.,

a

,

that
TT

Blough

our

tion

decelerated ra*e> Mr.

government,

original $10,000,000
this facility," he
"The remaining $54,000,000,

that

proportion of

a

Na-

l

particu-

wno can look forward to a higher
wft0 can l00k. forward to a higher

many
An

nor+ioi

o-rnnnc

groups,

alor?e; its increased

Debt-Savings Ratio
In

inmmo

upper Jucome

corn-

Tp
of the difficulty lies in the
inadequacy of normal deprecia¬

plant which cost $10,000,-

recovered

nient

linnpr

of

;

riprp1pratpf3

But .that

a

"AA

.

000,000
to
replace
at
prices.
■■
"Through depreciation

ba^® confidence in his ability to

emergency.

<

000 to build in 1930 will cost

steel

rePay

.....

,

reported

hearth

security and pensions undoubtedly increases the individ-

debts, even in times of
Life insurance coveronly look back and put together a&e exists on many instalment
the factors which were behind the
wnicn
£°ni;ract? dna nome mortgages,
JYmx1clLI/ aPd borne mortgages.
record
sales
les; namely, unusually The bulk of instalment debt apattractive product, public confi- Pears to be held by middle and
rose

Blough

.

income, only

I think that

1929

,

.

sales—to

The amount of individual
debt at the end of !955 is only
recall balf ?f the aggregate sayings of

during 1955, from somewhat over
$10 billion to somewhat over $14

A

laws,

over¬

.

,,

illustration

concrete

a

long

already

-

,

(2)

have been raised This new group
ba® demonstrated its capacity to

if

S®"J*

replacement of facilities .is U. S.
Steels foremost problem, M

ments and

First, let's take the question of
quantity of retail auto credit. The

As

■

the

probably think of others but these
are enough to illustrate my point.

H

the proper needs

present

,

not the inflated cost of
replacing them—Mr. Blough Urged
"a prompt and realistic revision"
by " Congress of
depreciation
"is

was

our

soiufQnsto^

"cilities

due."

year

reduce ;

^40USU said. - .
\
^-.iatinn
He averted that the best and

US

revision

last

V" V

U. S. Steel

Because present deprecigt
most
logical solution
could
be
law permits an enterprise to
'^achieved through prompt and recover only the original cost of fa- ajjstic revision of the deprecia-

the
consumer
being
over- excessive.
The principal reasons
charged for his accommodation? for our conclusion follow:
Is the seller, vjhen he participates
(l) The size of the recent, inin-the risk, assuming a potential
crease is not unusual in a period
loss burden which may cause him
q£ rising disposable income, havtrouble
eventually?
Should the ing taken place before in 1952-53.

of

end

major

said
that, - while
recognized "a definite
responsibility"
to
keep
annual

United

|7m7f/om Dasf inflatioTknd

modernize

.and

This is where inflation
the most~
v ,

problem.

statutes.

the

Mr.

that

profit level, and would thus

«"»** becomer totditfituU
th
today, is our most difficult

not

at

Blough added

arrange

less than

S deSSex°pnress°ed "To
expressea as a

out¬

in¬

wage

become
a
' V;

-

®'ates Steel will also - be con-■
fronted this month with 1 "wage wage changes within
bounds,. it
^demands which, if granted even also^ had the
responsibility "to ;
'in part' would—-in the absence of meet, to the best of our ability, "r
a compensating price increase—

consumer

credit

have

,

-

expansion, however, we must first • p0Und the financial problem
to keep our present- fa- must face in the future "
unties intact," .'Mr. Blough -de-.'.,
There
are
on]v
two clared.
"We must replace those..

to

is less than
far

and

larger annual rounds of
creases

^eel that this nation will need."

shortage of the type of data reported
quired to arrive at a conclusion i
Qt
tho Pnrnncompletely free from argument,
rot We ■•'.aV
Roger M. Blougn
Economists
disagree
on
many
nual
meetini
things and this question of quanU(1
iv 1 t
tity. is no exception.
However*- of stockholders in Hoboken, ?IN,,J*
there is some helpful information
"Before we can even talk about
ratio

one

or

are

cahse of inflation."'

are

v

.

ex¬

on

point

inflation,
conflicting re¬

.

,

a

talk of

we

other

For while our labor friends

who

Mr. Blough said. t"And
since this same condition prevails
throughout. the
industry; ^there

Mr.
am

-

•

presently and -prospectively"
Since labor accounts for 75% to
painful shortages of certain steel.
85% of the non-tax cost of the
10
-years, 1 in" products in America today."
7average. product, from raw mate¬
order .to play- * .Mr.
Blough declared that, while"
rial to finished product, "it would
its full part in
1955
^as r
rnost
prosperous
seem /logical and inevitable that
supplying tne^ year for U. S. Steel since
1940, the '
repeated increases in wages must
nation
with fac£ is. that "our
profits, at, their sufficient steel
naturally exert a strongly infla¬
present level, could neither suptionary
influence
for ^economic
upon
prices
port nor finance the heavy capital
growth
and expenditures that we must make: generally," Mr. Blough asserted.
"And our owh financial records
national ^d er in future
years if we are to play
over
the years will clearly sup¬
fense,/JBoard 4<)Ur full part in4
providing the
port that fact."
u
C h airman

.

evaluation; (2) total individual debt to savings does show a
far lower ratio than in 1929; (3) average monthly repayments
have been $80 for past four years on new cars while average
disposable income has been rising; (4) banks ate turning to
"collateral" instead of "credit" approach; and (5) competition
is based on service and not terms. Endorsing limited recourse
plan with protection system limiting dealer responsibility to
an
agreed maximum, Mr. Fiske believes this and product
competiiton helps make it unnecessary to impose credit controls

I

J

sponsibilities to be reckoned with

'

ers/'

,

.

points out: (1) data's inconclusiveness prevents objective

0>

Corporation

conservative
estimate,
have to expand its capacity by an
average of 1,000,000 tons a year
*
{
for : the/next

will,

•

|

to

answer

many

policy and points that rise in
auto credit last year was no larger, and even smaller percentagewise, than was the case in 1952-3. Mr. Fiske lists six

r

be

should
-

are

-

it? -: Our /

.

the

us

"But when

realistic change in depreciation Jaws to prevent raising prices
as a last resort.

-

of

farmers,

one.

there

GMAC Executive defends credit

•

give

that

.

r

shortage.the

able,, to

10-year expansion, and

announces

Thursday, May 10, 1956

.

friends,

plans, expresses concern for seemingly endless
spiral since 1941, and states present high earnings level

cannot

,

Executive Vice-President

General Motors Acceptance Corporation

Blough

.

critical

Outlay

modernization
wage

By CHARLES P. FISKE*

Chairman

Board

.

commodity

or

a

Stephen Wien have been

to the staff

of M. S. Wien

1 Exchange Place.

'
*

Volume 183

Number 5532

.

.

The Commercial and Financial Chronicle

.

(2251)
monumental kind has

Key to Progress:

through the business
„

The Uncommon Man
By CRAWFORD

President, E. I.

Much

du Pont de Nemours & Company

ness

by a growing emphasis on group action and
conformity which stifles the creative individual by "submerging

trend in:
upon

tion;

(3)

To achieve future

developments

startling

as

~

individual the human
_

,

.

Win

■

.

somewhat rugged individuals to
the relatively quiet
anonymity of
the
group.

in

from

these

r

this

that

me

to

will

as

whole

a

It

always

has

become

large

tion,

ciinjng

.

velopments

tho

C.

in

H.

of

De-

What

individual

it

'

1

^

been

hncinpco

ueitgaiion

of

;

for
grad-

a

we

essential

encom-

to

sue-

operation, with the result

In spite of all this,

we seem

to

continue the practice of substitut-

ing for the individual
ated,

with

kind

a

caricature

of

associ-

with

absent-minded

causes

people

the

im-

life

at-

oeoole

or

to become absent-

have, if

libelous

you will forinebriated reporter,

inference

work

newsoaoer

the

academic

tracts

We

holds

being that
lure

a

for

alcoholics, or that there is something about newspaper work that
drives

to

men

haired

drink.

musician
.

types that I

or

The

long-

scientist, the

*!LartL..sai™
am sure
you

will

„are
rec-

ognize.

Of

that

course,

about

the

business

The

.

The.busmessman, according to

this

dictionary of typical specif
V
lii*
is / materialistic,
selfish,
V.

mens,

rT-:,-"'.:-"rirritable with h's
employees, indifferent to his wife, contemp_

tuous

of

...

the

..

.

tine

type-casting

this

irritating

theless,
and

the

arts,

*

has

'An

the

is

at

casJmgat best
,1S' a,1
and

of

or

,

and

.

m-

S

worf'

wryly

professor,
up

any

created

or

havior.

26,

accumu-

life

a

labor

carburetors!

or

'




*

genius.

as

Ul. XXXldlll,

almost by definition
to the sublimation

unions

dedicated

are

of the individual to the general

pass

on

Q«+i+vr

the present effect

a
+n

entity

rpwarHc

to

to

make.

We

are

proud record of fruitful

a

over

the

period

a

American

of

of

the

of

human

creation

of

upon

an

And behind every ad¬
is

race

a

in the

growing

individual

perform-

of

the

Even

folklore

of his • unique

man is indispensable.

It

that

participated
n/L—

^

^

^

him

f

The crreat problem

isPto

tiJ

e

^ithinqJ™™

busi-

of

itself will provide

safeguards asainst nub-

ftffronf

this country andthe.;.
have bqen enriched and<
invigorated most conspicuously by
me

tern rise

adpmiate

to

world

wui

nature
en

no

seems

ho

original contribu-

.

.

admonishes

in the tlred> old doctrine that

150

Kll+

'with'thTld^

ac-

us with pious phrases to put our
trust in mass rather than man, as

scene

individual may circumvent tno
„tiu

curbing

•

+1™

^f'beTo^rmedl/d shape""%

future,the often

prospect

dreams

^

Ji,
the

leveling the

'^jT to™rd individual
compiisnment.

con-

than

more

of

and, for the

frightening

old

an

r»f

rewards
ance

Pont Company

any,-tributionr to
non-

musician,

business,,

*

tract

.

the

particular

a

*»

•

in

type,

morally w"-1-

w/ckeaiv

■

ninty tor- carrying

:

me

It

framework

the

the

develop
the

of
of

individual

the

;

-

Tf

.
" is a nroh1*>m for management
problem tor management,

seems

that

to

sent

a

limitations
this

on

earth.

inter-est

in

all

of

its

the

human

the

and

of

bad.

dull,
grasping,

4i*AV» /4 n

n Ann

the

a

nientioned

off

Business

.,

with

with

one

I know of no

of

will

lose

problem so press¬
so
vital.
For

issue

no

.

f

of'

Of

concern.

the

tne

the

agegoverns,

.

r

t

"reason

inrrtA

units,
nylon
A1.rti_

whether
or
U1

1850,

xi

•

and

x

a

in

and

cannot exlst without

an

m toe Past and, in an

fnt'IrJ -zons

to be made in the future
the

of

„

units.. As our

lie weal. In

thing
.

birds.

course

'

bG

;

broaden

.

many

large

«11U
and

lliucdac
increase

of

the atom

and
Us

tlieg

JNev YorK. i^iiy, nt
wilt

office

The

MU?pmn^rined

handle

to

IrALr-tinrK?
transactions

brokerage

all

that

corner

is

still

are

are

right.e

an unassailable fact that
progress

of

the

most

I view this with satisfaction,
not with alarm, for the pressures
of society will inevitably produce
.

may

difference to

the

promise

the
us

of a completely
telephone system. Effective
May 7, there will be a new tele,
phone
Phone number, REctor 2-6000,
number,
corvino
hnth
thp
serving both the firm's main office at 14 Wall Street and the new
11^
nfficp
115 Broadway office.
new

In

With Guss Securities

new

corner

ahead

us

be

What

sure.

does it make

precise

source

now

of

its

will

how well

we

take
are

Colo.—Pd-

ward C. Jones and Margaret K.
Jones

have

joined

staff

the

Guss Securities Company,
Lake

developments
on

GRAND JUNCTION,

reabze this

of the future and how far

depends

(Special to The Financiai Chuonicle)

of

The future in bright-

we

f

installation

the

age'.th.ere have been new

today.

deT what

only

box.

prmcples just around the

creaslnS- aggregations of talent, brilliance may be.
ntanpower, and resources.
Just when we will

which

i_.

was

Pandora's

*or increasmg T?.^er

things which

„

_x

In 1925,

unlocked

But emphasis on

wrong must not be allowed to ob-

electricity

_

ri-.n

identified and corrected promptly.

,

In

1900, flight was somerestricted to angels and

111
in 01 that
of mat

complexity, the demand will be

use

,nnn

•_

an

technological hori-

affairs.

could have foreseen

universal

white.'he^v°nf^n^jecLoloev'"'simnlv"6V?ry™

bladk and

humari

on

one

^
and thp uplift it gave tnthP m,h.
the
to the pub-

improved living standards.

Errors have been made by busioast

no

the

®e„t'Inever
.

effect

its

news,
news,

iA

oro

the things

is

an-

Exchanges, nave an

^ced the
third office in

.

Honorable mam_ haveT decent• a"d must be large enough to support
^the instincts 1 helievp 11
the scale of activity to which they
must necessarily ioiiow max mose the scale of activity to which they
cooio
.
businG„ wnr]d will av'
are dedicated, and that scale is
™
static, but increases con°
a dOOUt Lne same moiai ^ni1qnv<I,{4h
lGvel
tinually With technological growth

the

The

mem-

Ameri»

have

FvPuanCTes

Stock

can

.

must necessarily follow that those

in

on

& re,

thpNPw York and

^eased AeTrs^nd*1wilWnSe^ fPplefne- The future invariably At the same timeitwas an^
.3^at tha| '1° ™nib' si ":
from new
^
ub5?"*'a y,„' JS? P«n«ples specific form be visual- "aa"«d ^
that cannot
g^wing V u" ,-ieDhone ^
p
lzed by the forecaster. In 1800,
a
.7
availabl'e han
WelT accepted^o be open hf d°eanl See^lreau/Tcre^ef thro^l

^Mvn»i104"(UA

r

ry

'j®®* 5" "^arf^a"dl

can

V, /:

virtue,

Third New York Office

f^},linS far shoT} of

actuality.

...

T.

^it=hffcplA W-n fjnd }'^at / ne*y h?Ve ?1Wi.ay?
economy has in"

its

men

Shearsoil, Hammill Upen&

am

past prophets
intelligent ones—you

the

—even

all

afraid

I

If you would take note

opments.

for

brightness, and its promise.

disappoint the pie-

,

.

So
if
concede that neo-^bate*
Business
^^ •<JWUL;C1I1CU with
concerned W1LU
jn thp main have decent
in the rnsin hsve decent and

economic

nros

to
each
individual tho
dignity whi^h t« hl« hirthwhich is his birth¬

ing.

l«*n;

in-pe-sky department by noting
! A 1
5 notninS ^
^er ?S w nf
to the exact nature of these devel- beriso

and

Slze of our

t¥ffn

com-

Dip
e

For ^ is

^

of

^nurce

the spiritual one'of in

right.

my

prove at least as
of the past 50 years.

par-

of the form book

the

composite, that

at

Talent
f

together
together

exuberance

with

and

(luestl0n of the

\

maturity
and
wisdom of the old. Whatever in- '■
dividual dispositions may be

scure

nrnrfurtivP

and

human

opinion,
startling as those

,

Size

f.
? \
'the^other^to tial to a strong

of

baexfectedl" tba
tion
that
will, in
I shall have to

the

the eood

grouped

strength

nessmen

4

be'TxoeTHT/fhf neTaeTTrf

are' ordinary

Here

beings

temper

TlAPmtfl

numbeTof 'peoTle," busTness™

society—" Increasing
the-

the

and

plement the weakness of

young

Future Developments

facets

rv>ncf

^gS

the'curing

world could ill afford to dispense•
h 1 eir dlscoveries-

duct wl„ in iteelf reflect the
pub_
as
it may exist in a

particular'setting^^

in organizations designed to
the

nBvumef,

'

- ~

expansive and the oettv

and

manv

newwn,

j'"dr,a

axio-

the long stretch

over

CQrporate life, no business can
prosper unless it serves the public

characterize, ticular time.
They repre\

cross-section

brilliant

generous

almost

me

fectly normal, reasonable human ijc
interest
beings, subject to whatever frail-and

^

Franklin, Archimedes, Gutenberg,

•

incuued

shining armor.
It is, on"tne
hand, comprised": of per-

ties

enterprise

neither And

other

er

theemvth

by Mr. Greenewalt before
Anniversary Dinner of the Bu-

1956.

Du

wish

is

Business, in short, does not at-.*

,

in

that
person the myth that

pXlisL^VAss^fu«meN^n YoHkSPc?tvr
April

gears

c

IXXL.

create

can

"imperiously" by nature

enterprise, rand have what I think

|0f ipeople" with all' kinds; bf;~

made its mark

address

43rd

UXXCXXX

we

typical

th^it has'r—continue he madein
^ *neVer" crmtlnn/tn

average

to Speak

—--

Tolabusinessm\raSsUi\nmvTduaeiys' often8judged"^
E

than

Viic

is an
outstanding example of the point

prac-

is "utter

t—1

we

;

_u

rather

will,

as we

would

the

professor,

give me, the

AUV1XV&

Try

synthetic genius, no composite
leader. Men are not interchangeable Parts like s0 many pinion

no

would b
a

minded

any

that

ixm+V-i

Business'

other

man

minded.

MV1UWAV

as an institution, . years. I can assure you that the
recruits its people from tne same-traditions of the
past/ the ethics
melting pot which * supplies the and 'high
performance
of 'ithe
human- raw1- material
for
any' many men who have

given vocation,
There is, for example, the absentplication

plishments.
.

Werifv JeL
others lie
w
J those dreams for to.a™e need those: drewns, lor to
^,so
vof fn \hl

I

.

in

A"d toe good that allmenaccom-

P 'sh can be no more than the
sum of their individual accom-

jSdividua^1^
ual

so

call, like all other professions, is made,
forward.

now

be

can

authority .-becomes

more

stereotype

from being interred with their
bones, goes on and on forever,

become necessarily dependent
upon team effort. Our trade and

chlldren adopted with

profession

sense-

U

that there remain very few largescale activities that can be clearly
identified with a single individual,
:

man can do survives them only a
short time, whereas the good, far

their owrlj starting in some cases
jn the remote past and
going on

hawk-wsecT

,

and

balance

We

onniind

ixto

uncommon man.

the country's long-term
would sustain me here,

sure

organizations. Science and production and administration have

passed and directed by. a single, backgrounds, all kinds of motiva-;
£atic
mind,
j As
our enterprises grow, tions, all kinds »f habits of
be-:;-of
more

enrlincf

no

constellation

etar.

chances

my

of

lated>

the

^

titioners

contribu-

happening

Only, what

businesses

cessful

1

business enterprises have

was,

■.

replacement of the individual
by the group.. This is a. natural,
even
an
inevitable development
as our economy and its
component
parts havev grown.,in size and

:

Im~

.

disconcerting

generalization

ual

small

hio

after having made the

great

a

the last 50 years has been

stature.

mf <^

other

has

..

how

being

commercial

Individual Replaced by Group

>

musician.

,

i'unie
*
The fact is, of

person,

*

„•

....

a

only

are

one

.

r»

years

and by the "Daily Worker''; cessors and
aspiring to
as
a
bloodless capitalist.
"Time. healthy and dvnomin
onri
Time,
dynamic
Inc „ was kinder
calling me their suecessors.

Greenewalt

science

into

tA

%

direction.

am

^sedo^'tev*

through the synthesis of

*

J

riage,

have

.

1

the

see

laboratory to
the business office, to find
my- into the
unforeseeable future. Its
self characterized
by no less an.
managers have become torchbearagency than the Department of.
ers,
accepting the responsibility
Justice as a "monopolist
by mar-

rarely attributable to

-

1*

_

that

choice

To play Mark Antony in reverse,
it seems to me that the evil that

in-

upon

take

might call the

we

i

germ

transition from

s^TempeuJveyeo"rs of education.

tions.

—

jn

ug

intent

rather

vance

amateur

an

agme

personal jour¬
nalism. Uni-

number

Uiai

seems

lifeless
a

a

individual.

some years

longer

come

1QUL

Society, indeed,

sometimes

the

with

ing the creative force represented
by the gifted individual, or what

;

also

itself

versities

would

of

denominator.

faced

were

with the scoundrels than risk los-

The averavemS fnd

on

shut

we

people by

society that sublimated
the good with the bad, I think I

less responsive to these
pressures
than any other
group.

develops and

I

between

haired

institu¬

no

If

time,

engaged in the
rough-and tumble of

and

LilC

many
ago

ewsp a per

now sees
an

L.I.U1 IX

com¬

by many .peo¬
ple. The large

as

1

segment

ablest

our

tomb of

humanity concerned with business will be no

a

pany managed

n

lillCilL

are

The

the responsible individual to the
responsible group has greatly increased emphasis on continuity of

businessmen

4*™+

X

are

rapidly if

very
on

absorbing them in
mediocrity,

unenforceable"

do, not because
required, but because
right. This strength is
we

more
potent and compelthan the law.
The law is
essentially negative and prohibitive.
Ethical principles are vi—
brantly and affirmatively alive.-

Standard Oil
11ULC.

called

ling

been

concept.

men

the

been

much

intelligent and
never

things

they
they

y
./
indnd6euieiu aecismu.
The change over the years from

way
pro-

caricature.
u

"obedience to
—the

has

move

the door

anv

the public welfare is in some
in danger, that society needs
tection

crossbred

that

area

particularly in

This averaSinS process can
have its bad side' of course, as
develop with it In business en- well as its good. If the organizedeavor there is an added uressure tion of modern society can hold
for conformity to toe
public to-' a. s,coub^el in ch«*> ™ ™n the
terest, arising simply out of the r sk' a
,the saia? tmae that it can
numbers
of
people involved in stl,fle the creative individual by
given
management
derision
submerging him into the common

,

dignity which is his birthrate.

Today, the emphasis has passed
colorful, personable,
and

of

particular moral code

a

great indeed,

aUy^the*tadtvWuals comnrisinefit

"

-

.

from

the

i

public education, government, church and press—to recognize
and encourage individual
development. Sees at stake preserv¬
ing the productive source of progress and insuring to each
_

been

race

ac,cept

to

society

those in the

as

recent

.J]16 society in which they
**Ve,,jV
resPOn<i to its pressures,
its
ideals, and its customs.
As

(2) depend¬

everyone—management,

urges

to

seems

.

teamwork in science, production and administratrade and labor unions, and (4) taxing methods.

past 50 years, Mr. Greenewalt

a

not

are

"new

had

past

able

-

*

organizations;

our

tion of

ji

as

kindly poodles. I have

denominator."* Finds evidence of this

(1) the growth of

ence

t»

able to recognize and encourage
individual achievement/ We can-

Poodles

in

riers and bloodhounds of the busi-

produce

common

ji

said

type of busiif, by some process
of sexless eugenics, the bull ter-

Mr. Greenewalt expresses
plea in behalf of the "uncommon

;

the

nessman,"

man" threatened

him into the

Tr•

been

own controls and stabilizers,
These pressures for the preserva-

process.

Kindly-

as

has

of

years

GREENEWALT*

H.

.

Businessmen

their

about

come

15

j

*

Mrs.

City.

Mr. Jones

with

Filosa

Jones

was

Securities

was

previa

Securities

with

Ox

of Salt

Co.;

rninmhii

Co

Company of Denver.

16

The Commercial and Financial Chronicle

(2252)

Burroughs in the office by an enforced dividend trim
equipment field has been able in 1953, but the company has
to
shrug ' off dour market just restored the old 40-cent
periods rather prominently, quarterly rate again.
in part due to the dawning
[The views expressed in this

THE MARKET... AND YOU
By WALLACE

,

STREETE

realization

Another

desul¬ centrated

period of
tory price action was chalked

in the high¬

more

that

office

the

equipment field has emerged
as one of the fastest growing

traffic control area segments of the electronic in¬
up by the stock market this which, however, would be a
dustry.
This industry also
week with the railroad aver¬ necessary part of any mas¬
reached the $100 million sales
age continuing to work higher sive highway program.
line last year, but some of the
#
#
*
to its best posting since 1929
more optimistic estimates in¬
while the industrial average,
Another of the public im¬ dicate a 10-fold increase to
exchanging roles with the rail provement groups that have the billion dollar level in the

index

of

months,

the

last

dozen

way

had

placid and, up to now,

a

the laggard one largely uneventful time
rather stubbornly refusing to are the issues that must
any serious bid for a
all-time top. There were

four

to

six

years.

of it roughs' achievement is

was

make
new

next

Bur¬

article
time

do

not

coincide

"Chronicle."
as

those

are

any

the

of

presented

Thursday, May 10, 1956

..

CORRECTION
In

the "Financial Chronicle" of

May 3 it
M.

was

Klauber

New York
that

this

Klauber

New

is
&

York

continue in
at 120

reported that E. &

had

formed

been

City.

in

are

informed

error.

Murray

We

in

Co., members
Stock

the
will

of

Exchange,

business from

offices

Broadway, New York City.

Edward
of the

Planning

Mass.

erly

Edward

—

F.

Ernest S. Camelio, Jr.,
Praino, Walter D. Sel¬

Bentley,

Thomas

and

J.

Shire

They were form¬

associated

in

E.

M.

&

Klauber.

Jerome A.

lers

Klauber, also a member
Exchange, has retired from

active business.

(Special to The Financial Chronicle)

BOSTON,

Joins Nelson Burhank

have

(Special to The Financial Chronicle)

been aded to the staff of Investors

highest research budgets
essarily benefit from the high in the industry running
and growing requirements for around
5% of sales. Its newer

Corporation

England,

the

They

With In v.

Planning

nec¬

those

of the author only.J

of

one

necessarily at
with

.

Inc.,

of

New

68 Devonshire

St.

BOSTON, Mass.—Nathaniel
Ryder is now with Nelson
Burbank

D.
S.

Company, 80 Federal St.

few

signs of broad scale dis¬ new schools. American Seat- products, consequently, have
apparent, however, i n g and Brunswick-Balke- been
increasing rapidly giv¬
so that market opinion
by and Collender are the prime ex¬ ing rise to a belief that its
large was constructive.
amples because they n|ust,. gross will double even before
*
*
*
first of all, provide the class¬ the
industry reaches the bil¬
tribution

the

before

furniture

room

lion dollar mark.
April and so far
makers of laboratory equip¬
May the market has been
Joyous Joy News
building up something of a ment, pencils, etc., start to
Some
evidence
that
the
weekly pattern of easiness feel the impact of the vast
coal industry is finally about
early in the week with strong schoolbuilding needs.
*
*
*
to snap out of its doldrums
but inconclusive windups in
each week's trading. The
Another group that is has made Joy Mfg. something
overall indication was a con¬ linked to
the
large school of a favorite in several quar¬
solidating phase with some of needs in part and also has ters. The company is the lead¬
the market spectators antici¬ been benefiting importantly ing producer of
machinery
pating a rather prolonged rest from the entire construction for underground
mining
For all of

Notes

NSTA

into

of this nature for

some

time

to come,

barring any sudden
developments.

news

*

*

Among the
actions

the

was

oils

decisive

profit-taking
least

at

which has been

showing con¬

other issue around. But it

in

tem¬

was

clipped back somewhat sharp¬
ly in mid-week. Amerada,
had

market
it

ignored the bull

ever

since

finally posted

this

year,

some

was

realizing

Interest

1952 until

high
also given to
a

new

pressure.

in

was

still

the

industry finally became a
$100 million one. The top two

some

should

sold

program,

in¬

recently in

a

case

6% class.
prop
in

is the road's continu¬

ing plan to reacquire and
tire its
000

boost

own

shares

stock,

some

being

re¬

120,-

acquired
more this

its

revenues

and

its

petered out, at least tempo¬
rarily. One such that seems operating performance looms
somewhat neglected, when among the better in the field.
❖
*
*
measured
against others in
General Railway Signal,
the group, is Gamewell which
while it has had a good mar¬
has been
turning in unspec¬
ket run, is still generally re¬
tacular but
steady increases
in quarterly income. While garded as capable of further
other
roadbuilding shares are gains particularly in view of

jump of 2Vi times in profit

selling at around 15 times
earnings, Gamewell is avail¬

a

able

year,

about

half

of

that

in the first
quarter over

although the first

last

quar¬

figure with an above-average ter is normally the slow one.
yield. The stock is somewhat The stock, like that of Gamescarce

if there should be
any

surge

built

other
lines • that
account for a shade

up

finally

half of gross with a good
portion of the revenues de¬
rived from parts and service
over

business

with

inherent

its

*

*

*

Koppers Co., like Joy, has
steadily lessened its depend¬

organization,

Business




con¬

things, is also
date.

a

Twenty-first annual summer outing of the Securities Trad¬
of Detroit and Michigan, at Plum Hollow Golf

Association

Club, wall be held June 19, 1956.
SECURITY DEALERS OF NASHVILLE
The

of

Dealers

Security

Nashville will hold

their annual

party May 17th and 18th. A cocktail party and dinner
at the Hillwood Country Club on Thursday, May 17.

will be held

On Friday,
outdoor activities, followed
by a party and dinner that evening, will be at the Richland
Country Club.
Tariff $25. Reservations should be made with
Jack Zeitler, Third National Bank, Nashville, Tenn.
May 18, a full day of golf and other

SECURITY TRADERS ASSOCIATION OF NEW

YORK

Association of New York, Inc. (STANY)
Bowling League Standing as of May 3, 1956 is as follows:
Security

Traders

'

Team:

'

f,

Points:

.

(Capt.), Gold, Krumholz, Wechsler, Gersten

Serlen

Hunter
Kaiser (Capt.), Kullman, Werkmeister, O'Connor, Strauss.
Barker (Capt.), Bernberg, H. Murphy, Whiting, McGovan__
Leinhardt (Capt.), Bies, Pollock, Kuehner, Fredericks
Donadio (Capt.), Brown, Rappa, Shaw, Demaye
Krisam (Capt.), Farrell, Clemence, Gronick, Flanagan
Groney (Capt.), Define, Alexander, Montanye, Weseman...
Meyer (Capt.), Corby, A. Frankel, Swenson, Dawson Smith
Manson (Capt.), Jacobs, Barrett, Siegel, Yunker
Leone (Capt.), Gavin, Fitzpatrick, Valentine, Greenberg__
Topol (Capt.), Eiger, Neiman, Weissman, Forbes

Bradley (Capt.), C. Murphy, Voccolli, Picon,

48V2
45
43
42
41^
38
38. »

34^
33^
33

:

27JA
25V2

200 Point Club

5 Point Club

217

Hank Serlen

Hank Serlen
'

!j

y'

-

NSTA CONVENTION

National

Jack Manson

211

Will Krisam

H ■"
" "

211

'

Security

Traders

Association

announces

the

following plans in connection with the 23rd Annual Convention
at El Mirador Hotel, Palm Springs, California, October 24-27th.
;
Wednesday the opening day will be largely taken up with

lines and

registrations, renewing old acquaintances and enjoying the recrea¬
tional facilities that are available at El Mirador.
The National
Committee Meetings, Forums and Business Meetings will be held
on Thursday and
Saturday. Friday will be a day for Sports and

ical

general

on

the

coal

and

steel

stepped up its chem¬
activities, including a

plan to construct a large
plant to turn out a

new

chemical

plastic. Earnings have,
increasing steadily and.
have come close to doubling;
the previous figures not only
last year but for this year's*,
first quarter as well. Chemi¬
cals are now up to around a
quarter of sales making it of
growing importance in that
field, the premier growth in¬
dustry of them all.
new

been

Outstanding Drug
As far

cerned,
out

as

Issue

as the drugs are con¬
Bristol-Myers stands

one

that sold for about

twice the present

level in the
market, which

well, is also limited, a scant 1946 bull
demand, about, a
333,587 shares outstanding. pretty well ignores the vast
quarter of the 357,000 shares
growth in wonder drugs since
locked up in the portfolio of The
issue,
among
other that time, in which Bristol
Statistics. Its business is

ers

The

in

one

MICHIGAN

ket standards.

ence

cluding the firms that will
last year and some
supply the bulk of the roadbuilding equipment now that year so far. On a more routine
plane, industrial expansion
the
original play in the
has been helping the road
cement shares seems to have

at

fits of diversification and has'

dividend tive
price tag by present mar¬

the

not-too-common

this

highway

r cover

twice over, but
despite this fact the issue has

cull¬

on among the issues
that stand to benefit from
any

moreover, has not
been unmindful of the bene¬
company,

stability. The company's prof¬
some
of the issues in this it for the fiscal
year is being
group. Denver & Rio Grande figured at around $6 which
Western generally is con¬ leaves the stock
selling at less
sidered something of a lag¬ than nine times
earnings
gard in the group. Earnings which, despite its recent
expectations for this year strength, is still a conserva¬

A

ing going

Federal

into its own,

improvement with an¬ to trim their high labor costs
25% gain in sales pro¬ and increase productivity to
jected for this year. Last year the competitive level. The

payment

Roadbuilding
Equipments

There

come

producers strove mightily

sistent

in the field are Gladding Mcporarily, killed off their run¬
B°an and American Encaustic
up which was among the
better recent group actions. Tile.
Royal Dutch, in particular,
A Prosperous Rail Laggard
was
something of a regular
The superior action of the
in posting about as many suc¬
rail average, naturally, con¬
cessive
new
highs as any centrated a bit of attention on

which

as

other

*

more

that,

boom is the ceramic tile field which has

SECURITIES TRADERS ASSOCIATION OF DETROIT,

split candi¬ participates importantly. The
company was held back a bit

relaxation. Cocktails will be served at the Pool each
Dinner and Dancing following.
A special Train will leave Chicago, Monday morning October
22 at 8:30 a.m. Special cars leaving New York and Philadelphia,
Sunday afternoon, October 21 will connect with the Special Train
evening with

leaving Chicago.
The

will arrive at Las Vegas,

train

Nevada,

Tuesday after¬

will visit Hoover Dam.
Cocktails and
dinner have been arranged at the Riviera Hotel where we will
noon

where

the

group

enjoy one of the Floor Shows for which Las Vegas is famous.
Following dinner there will be time to visit some of the other
hotels and attend one of the Midnight Floor Shows. The Special
Train which will be parked for occupancy

early

Wednesday

morning

with arrival

at Las Vegas will leave
at El Mirador shortly

before luncheon.

Following the Convention the

Special Train group will visit

Angeles for two days leaving Tuesday evening October 30 for
San Francisco. Leaving San Francisco Friday afternoon November
2nd the train will arrive in Chicago Sunday morning.
The cars

Los

for

the East will arrive in

Philadelphia and New York, Monday

morning November 5.

Trip which includes Round Trip
Chicago, all meals on the train, four

The cost of the All Expense

Rail

and

Pullman

from

nights at El Mirador, American Plan, two nights at Hotel Statler,
Los Angeles and Mark Hopkins, San Francisco will be approxi¬
mately $425 per person from Chicago in a Roomette or sharing a
Compartment and $550 from New York. The cost for your wife
on the family plan will be about $60 less.

Special Train Reservations or Information, communicate
Christian, Stroud & Co., Incorporated, Philadelphia,
Pa.; Glenn W. Hyett, Asst. Gen. Agent, Milwaukee Road, Union
Station, Chicago, Illinois; or John F. McLaughlin, McLaughlin,
Cryan & Co., New York, N. Y.
For

with Edgar A.

Volume

183

Number 5532

.

.

.

The Commercial and
Financial Chronicle'

(2253)
ADVERTISEMENT,,
ADVERTISEMENT

ADVERTISEMENT

UNION PACIFIC RAILROAD
COMPANY
FIFTY-NINTH ANNUAL REPORT

—

YEAR ENDED
DECEMBER 31,

REPORT OF THE BOARD OF
DIRECTORS

TO STOCKHOLDERS OF UNION
PACIFIC RAILROAD COMPANY:
The Board

of

increases in expenses caused
by higher wage rates and other
employe benefits.
Success in thus
holding down operating expenses
may be attributed
the increased
chiefly to
proportion of trains hauled
by diesel and gas-turbine locomotives
as the result
of acquisitions in 1954
and 1955, with
consequent savings in cost
of locomotive
fuel, enginehouse expenses,
etc.; sharp reductions in mileage of
unprofitable passenger trains and in
number of
dining cars and Pullman sleep¬
ing cars operated over the
Company's lines; reduced charges for
personal
injuries and for freight loss and
damage; more sales of scrap material (credited
to
operating expenses); less new rails laid in
renewals; and economies achieved
through various additions and betterments
to road
property and rolling stock.
The principal increases in
expenses, other than those
primarily attributable to
increased freight traffic or higher
wages, were in cost of ties

New York, N. Y.,
April 26, 1956

-

.

Directors

submits

the

following report

for

the

'

Union

Pacific

Railroad Company,
including its Leased Lines,* for the year ended Dec.
31,1955.

CONDENSED STATEMENT OF INCOME
:

■'

Operating
Operating
Taxes

'

•

expenses

on

1954

$481,786,451

$370,526,330

$365,858,880 15 *

-

,

____

(including taxes

1955

$509,362,476

•

;

revenues

-

income from oil and gas

operations and other
non-transportation sources)
Equipment and joint facility rents—net
charge___—

72,517,848

Net income from
transportation operations
$
Net income from oil and
gas operations (excluding
income taxes)
__

22,679,243

Total income

New rails

(track miles)

33,743,135

12,133,390

$ 85,022,292

Total

$ 75,438,075

5,795,036

5,815,410

——

sources

$ 79,227,256

rails

were

was

largely

a

reflection of the

nation-wid9

activity and general prosperity in. 1955,. Ton-miles
8.7 per cent greater than in
1954 and represented the

tities of the
many different commodities carried.
rates in 1955 was
unchanged from

The

general level of freight
1954; however, the temporary increase in
rates effective
May 2, 1952, which was to have expired December
31, 1955, was
made permanent
by the Interstate Commerce Commission.
The largest increases in
revenue were in:
automobiles and parts, as the result
of the
record-breaking output and sales by manufacturers in
1955; iron and steel
products, bituminous coal, and iron
ore, chiefly because of expanded operations
of steel
plants; lumber (during first nine months of the
year) and plywood,
reflecting increased construction activity; canned and
packaged food products,
resulting from greater eastbound movement from Pacific
Coast points in re¬
sponse
to increased consumer
demand; less than carload freight, due to
improved business conditions, a strike of
truckers in Pacific Coast and other
Western areas for a short
period in the late spring, and recapture of some
traffic from
highway carriers; machinery and parts, with more shipments of
machines both for industrial
purposes and for household
use; soda products,
resulting principally from continued expansion of
production at Westvaco, •
Wyoming; and forwarder traffic (consolidated shipments tendered
by freight
forwarders for movement in carload
service), as the result of the increase in
business volume and the strike of
truckers mentioned above.
The most substantial decreases in
revenue
attributable to reduced Government

were

in: ammunition and

traffic; wheat, due to decline

to Pacific Northwest
ports for export and a greater
proportion
year's crop havi*g been stored locally under

eocplosives,

in shipments

of the current

Government loans; sugar, result¬
ing primarily from smaller sugar beet
crops; hay, because of less movement to
supply farms in Missouri, Arkansas, and
Texas, which suffered from drought
in 1954; and
com, chiefly because of smaller
crops and reduced
areas

(track miles)

The

The increase in Express revenue
rail express traffic.

was

due to

a

832,568

important of the increases in wage rates
referred to above were
per hour starting October
1, 1955, granted to operating
employes
conductors, engineers, brakemen, firemen, and
switchmen) and 14%
cents per hour,
starting December 1, 1955, granted to
nonoperating employes
(such as shop,
maintenance, clerical, and telegraph employes).- Since these
as

increases

were

granted late in the. year, their effect

on
operating expenses will
indicated by the fact that if
operating expenses in 1955 would
million. In addition to the
wage

naturally be much

more pronounced in
1956,
in effect for the entire
year,

they had been
have

been greater
by approximately $16
increase granted to
nonoperating employes,

February 1, 1955,
plan to

standing the considerably greater volume

also

were

granted, effective

half of the cost of

one

of

only 1.3 per cent, notwith¬
freight traffic moved in 1955, and

n

a

consolidated

basis,

excluding

Navigation Co.,
Ry. Co. Figures

offsetting

accounts

a

hospitalization expenses (effective March
1, 1956,
such allowance will be
increased to cover the entire cost of the
plan).
'
.

TAXES
greater primarily because of
;

sharp increases in

•

The increase in Federal
income taxes resulted
principally from increased tax¬
able income in
1955, but was also due partly to the accruals in 1954
having been
reduced by a credit adjustment for
over-accruals in 1953.
In determining
income taxes in recent
years, taxable income has been reduced

by substantial
amounts
representing excess of (a) deductions for
amortization, on a 5-year
basis, of portions of the cost of equipment and other
improvements certified

by the Office of Defense Mobilization to be
necessary in the interest of national
over (b) annual
charges against income, under Interstate Commerce
Commission regulations, for
depreciation based on the estimated total lives of

defense,

such

improvements.

with 1954

were

as

The

approximate

amounts

follows:

involved

for

"

1955

compared

"
,

Increase

over

1955

Amortization deductions--

fixcess

of amortization

over

$28,659,788

-

1954

$6,427,143

depreciation

22,934,114

The

reduction

nature of

a

in

income

taxes

common

stock

5,183,470

11,925,739

Reduction in income taxes

Betterment in net income per share of

2,695,404

$2.68

■

resulting from this situation

is

$.60
in

more

tax deferment than

the cost of the

the

a true tax
saving, because in future years, after
improvements has been amortized, income taxes will be
greater

than if the accelerated
amortization had not been allowable.

The

increases in Federal

ment

taxes

unemployment insurance taxes and Federal retire*

were due to
larger payrolls and to an increase from $300 to
$350
month in the maximum amount of
compensation per employe subject to
the taxes
beginning July 1, 1954.

per

Total taxes for 1955 were
equivalent to 14.2 per cent of total
operating revenues
and to $1,457.82
per employe. Total taxes were also equivalent to
$16.31 per
share of common
stock, or only 62 cents less than the Common Stockholders'
equity ($16.93 per share) in net earnings.

OIL AND

GAS

OPERATIONS
Per

Receipts from sale of oil,

and other products

gas,

1954

Increase

Decrease

Cent

$8,326,066

$6,760,469

$1,565,597

3,186,885

94,744

3.0

4,379,130

866,779

19.8

$16,853,604

$14,326,484

$2,527,120

17.6

$28,075,475

(including

$48,069,619

5,245,909

expenses

$44,929,079

3,281,629

Production

$33,743,135

depreciation).

6.5

$3,140,540

23.2

16.8

$5,667,660

$2,218,111

$2,603,736

$10,719,000-in

work,

1954,

are

Represents costs ^uch

clearing

ground,

included

in

operations,

s"

under

,

of

approximately

Transportation

14J

$385,625
1

t

Lines are: Oregon Short Line R.R.
Co., Oregon-Washington R.R. &
Angeles & Salt Lake R.R. Co., and The St.
Joseph and Grand Island




they

and

i

Leased

stated

as

monthly allowance representing

a

medical

cover

Drilling and development costs not charged against receipts

The decrease in the
"operating ratio" from 75.94 in 1954 to 72.74 in 1955 (the
lowest since 1950) resulted from an
increase of 5.7 per cent in
operating rev¬
enues. with an increase in
operating expenses of

are

+243,242
+ 184,173

cents

(such

and

companies.

.06

switching and demurrage,

OPERATING EXPENSES

Account

11.93

+

•

in Other revenue was
principally in
because of the expanded volume of
freight traffic. :

Income

11.87

+

general increase in movement of

The increase

between

1954

—

454,823

handling and trans¬
porting mail for the last quarter of 1953, and reduction
in volume of mail
handled because of diversion to other
forms of transportation.

the

follows:

Decrease (—)

most

10V2

•

(number)

The decrease in Mail revenue
resulted from inclusion in 1954 of
credit repre¬
senting retroactive 10 per cent increase in
compensation for

Los

were as

or

vs.

•:

332.68

1955

revenue was

occasioned by less rail travel
generally,
military personnel, and continuation of the trend toward
greater use of coach service at low fares.
However, passenger revenue per train
mile increased 22
per cent because of a reduction of 21.6
per cent in unprofitable
passenger-train miles.

in

Increase ( +)

requirements

for livestock and
poultry feed.

The decrease in Passenger
fewer movements of

*

4

-

94.95 V,

Ballast (cubic yards)™

->

State and county taxes
were
rates of ad valorem taxes.

largest volume of freight traffic hauled
by the Union Pacific in any year since
the World War II
year of 1945.
There was a drop of 1.6
per cent in average
revenue per
ton-mile, which can be ascribed partly to an increase of .7
per cent
in average distance hauled
per ton and partly to fluctuations in
relative quan¬

•

v

237.73

(track miles)

certain

7,

The increase in Freight
revenue
improvement in business

Ties

$ 69,622,665

OPERATING REVENUES

in Pacific Coast

~

.

Second-hand rails

28,075,475

ing from the rapid write-off, for income tax
purposes, of the cost of
improvements.
"

freight

;

$ 29,561,550

,

Net income from all
sources, before dividends on preferred and
common stocks
of Union Pacific Railroad
Company, represented a return for the year of 7.90
per cent on the average
equity (par value of capital stock plus
surplus) of
Union Pacific
Stockholders, compared with a return of 7.23
per cent in 1954.
Net earnings per share of
common
stock, after preferred dividends, amounted
to $16.93, or $2.17 more
per share than in 1954.
However, if wage increases
granted to employes during 1955 had been in
effect for the entire
year, operat¬
ing expenses would have been increased
by approximately $16 million, which
after allowing for a
consequent decrease in Federal income
taxes, would have
reduced net earnings
per share of common stock in 1955
by about $1.73.
It should also be
noted, as explained under "Taxes," that about
$2.68 of the
net income per share arose
from the deferment of Federal income
taxes result¬

of revenue

tracks, charges representing value of

property retired, and depreciation
charges.

■

Fixed and other charges
Net income from all

road

1955

43,739,492

13,207,325

All other income

laid in renewals,

expense of removal of snow
and ice from

non-depreciable

Quantities of rails, ties, and ballast used
in main track renewals

63,686,778

22,578,806

1955

$8,372,100

.

In

1955

Operations."

labor, fuel, repairs and hauling in connection with drilling, geological
building roads, and certain materials with no salvage value.
as

The decrease in receipts was due
primarily to reduced oil production in the
Wilmington field, partially offset by increased production in the
Rangely field
other areas. The increase in
production expenses was caused chiefly by
higher wages and material prices, more extensive redrilling and well stimula¬
and

tion measures, and increased
expense for maintenance of dikes protecting the
Wilmington field. Greater drilling activity in various areas, coupled with higher
wage and material costs, caused the increase in intangible expenditures.

17

18

The Commercial and Financial Chronicle

(2254)

expanding the output U
the fall in demand.

be used for

Britain's Automation Strike

because

existing circumstances automation must aim not at increasing

In

aid of

I
•i

■'

j
I

F

.

LONDON, Eng. — The contro¬
over automation, to which
repeated reference was made re¬

these

in

cently

the

be

conflict.

men

the

At

of

time

could

find

against

came

about

as

result of the

a

decision of the

Standard

Einzig

miss

num¬

a

of

ber
about

dis¬

to

pany

work¬

become

to

superfluous when the installation
of automatic transfer machines
works

is

in

completed.

Although the strike is unofficial,
it is certain to. receive

ing

of

the

-

only they could be made to, real-'

the bless¬

Unions

Trade

What

they are i
have 4t>" J

For the moment

that

convinced

given to

J

reasonable, attitude in the

more

they

can

and

additional

totalling

overtime

some

is

con¬

even

more

a

may have to
additional travelling costs. '

British
tude

incur

employers, in their atti¬

towards

social

essarily mean a reduction in em-'
ploymeht.
Britain's." future < de-^
pends
largely on * whether thief,
,

aspects

of;,

workers

be

can

made

distinctly
less
such elementary truths.
progressive than their American
opposite numbers. The difference
may be explained by the fact that'
automation,

in

Britain

the

has shifted to

of

balance

realize"

much

a

favor

;

,

National Petroleum,

power

Calgary Oil Company,;
Enlarges Directorate

greater ex¬
organized labor
than in the United States. During
the
postwar years British
em¬
ployers had to put up with a great
in

tent

to'

are -

of

National

Petroleum

who

refused

to

carry

the

lective

pendent

own

Unions

the

on

Automate

Industrial

thus

is

has

active

re¬

This

with

at¬

grave

only by the Govern¬

ment and by

employers in indus¬
try, but also by the more intelli¬
gent and responsible Trade Union
leaders

who

industries

in

their

that

realize

more

or

of competition

face

by
rivals

progressive

These Union leaders

overseas.

however, helpless in face

the

of

effective
Communist
agitation against automation. The
very

why

reason

effective

this

agitation

that

is

the

is

so

arguments

appeal to the workers who are
only interested in their immediate
position. In any case, no adequate
effort

has

been

made

the Government

enlighten

by

by employers

or

the

either

workers

about

the advantages of automation.
What

dominates

the

a

which has

patented

tion

de¬
is

announces

the election of

rectors

its Board.

were

cidedly

of

that

true, during

million

employees

of their

would

own

be

1955 some two
changed jobs

free will.

dismissed

Those who

through

re¬

dundancy will experience no dif¬
ficulty. in finding alternative
employment amidst the prevailing

not

usually in
position.

plovers

should

forced

feel

to

In

arise
but

of

out

whether

to

the workers is based

ological conception
should be

run

Britain's prospects would

pessimism.

„

Vicious

present

it

must

be

ad¬

mitted that in the present instance
the fault lies not exclusively on
side.

Motor

Although the Standard

warned

Company claims to have
the
Unions
that there

would

soon

be

redundancy




dis¬

Wall

on

NBC-TV's "The Big

on

Sur¬
$2,500 scholarship to his

a

alma mater, the Wharton School of Finance at the University

.

;

t

Rise in Prices and Industrial

;

v:

Activity Noted

:

N.A.P.A. Business .Survey Committee April report confirms
;the consensus made previously in March of rolling adjustment
taking place v/ithin high industrial activity level. Finds unabated rising prices,*
>'

particularly in

*

materials/ non-ferrous

raw

metals and electrical equipment.

"

;.t

-

Composite opinion of the pur¬
chasing agents comprising the Na¬
Association of Purchasing
Agents' Business Survey Commit- ♦
tee latest report issued by Mar-,

tional

City banking firm of H. O.; shall
Pease, Assistant Manager of
Co.
■
'
Purchases, the Detroit Edison Co.,
Detroit,
Mich.,
states
that the
gary, Alberta.
'
April business survey clearly

Peet &

condil^on
noted

-

of rolling adjustments
production
and
new

in

orders.

;

Expectations
have
been
ex¬
ceeded, say 58% who answered
the

following

special

question:

,

"Are

George Harris, financier of Cal¬
s. Mvon

Z^dmer, President of

tional importance of the company.,

(Special to The Financial Chronicle)

situation

has

brought about by their

their

the

wages,

would

not

been

own

ex¬

have

felt

The trend would be

had

it

as

a

Government

impelled

disinflationary

expansion¬

as

been

to

before

measures,

even

increase

would have moderated the rate of
ago

the

Austin

some

18 months

Motor

Company

automatic

transfer

ma¬

chines it did not dismiss any of its
workers, because, amidst the then
prevailing
expansionary - condi¬
tions, it was possible to employ
them for the purpose of increasing
the output.

Meanwhile,
trend

has

the

been

expansionary

halted.

quently automation

FRANCISCO,

Calif

—

Oliver R.

Dibblee, Lincoln Leong,

Louis

Martin, Clarence Peter¬

L.

James A. Petrella and Harry
C. Sackett have joined the' staff

sen,

of Mutual Fund Associates Incor¬

porated,

506

Montgomery

Street.

can no

Throe With Daniel Reeves

the

purchasing power

When

SAN

'

measures.

more moderate

consumer

installed

fairness

I,

the

Kansas

Circle

cessive wages demands. Had it not
been for the inflationary rise in

employment.

all

in

Join Mutual Fund Assoc.

.

The workers fail to realize thatthe

expansion.

Employer Progressiveness

that factories

for the sole benefit

Products,'

have to be viewed with the utmost

safeguarded against
being compelled to change their

British

ide¬

Bentley, well known
industrialist and Presi¬

Partner

authority

an

Oil

whiz,

.

D.

Welch,

market

reflect

demands

industrial pro¬

on

duction
same

or

lower than you

they

the

in

would

general
be

as

the
expected

greater,
we

the

enter

.

though

be

'

G.

D.

as

Stanwood

,

di¬

new

;

Gus

operations

"rolling
adjustments
National Petroleum.
'
of those who work
in
it.
The
taking place within the high level
Mr.
Corlett, Mr. Bentley and of industrial
present strike is a clash between
activity." When con¬
Mr. Welch are newcomers to the
fundamental
trasted with March, the varying
principles
and
its
Board
of
National
Petroleum.
outcome is liable to affect Bri¬
percentages emphasize that condi¬
Their presence on the directorate,
tain's entire industrial future.
tion.
For instance, • in the April
reflects the; expanding interna-, returns 37% reported increased
Should the workers have
their

of

to

the

on

.

$100,000 jackpot

the

of

stock

..

perforaoil wells,

Ltd.

are

labor-

saving equipment for the purpose
of saving labor.
The attitude of

want to

want

of

use

10-year-old

for

dent of Canadian Forest

principle

managements

make

L.

Canadian

compensation claims

the

entitled

L.

Kaye, President

lowed to go to Harvard, the college of his choice. -Mr. Kaye gladly
agreed.
'
..
* ' •.
v
v" '
J ■" ;

to

the fundamental

on

of

like

having

A.

Ross,

of Pennsylvania, Lenny said he could only accept it if he were al-

;

new

own

Corlett, President
and Director of Standard Screw

the strike did not

case

any

adoption of these

They

to

won

permeator for National Petroleum.

to

be at liberty to walk out
jobs whenever they feel
having a change, but they

method

completing

Webster

em-

contracts.

ary

their

that,

agree

that it is for them to decide when

posts.

It

and

;
»

w.

certain Co.; and also President/ of its
terms, they are under no moral wholly owned subsidiary, Chicago
obligation to pay a penny beyond Screw Company, which manufac¬
the
the
amounts
patented
magnesium
prescribed in the tures
been

resort to

their

a

surprising therefore, that

conditions of labor shortage. The
workers take the line, however,
relinquish

which

stronger

dismissals through redundancy
must be
prevented at. all costs.
It is

in

recently

John

Lenny

:

the

bargaining

way,

minds

workers is the determination

one

company,

recently perfected

working

are

prise." When Mr. Kaye awarded Lenny

Canadian, inde¬

Automation

British

auto'mate

must

perish

In

known

oil

conditions have been the result of
Unions

Britain

upon

viewed

not

concern

in

automation.

to

titude

Perish

or

labor

embarked

sistance

to

and

wages

well

hard

task.

are,

on

the

with

agreements

here

Street' and stock market

tion, Limited, of Calgary, Alberta,

agement of their works, and col¬

sus¬

equipment had to
work because its

Shown

*

Corporation," and

Corpora¬

engaged in the installation of the

workers

•

earnings.;
£270 million -a
year. They seem to ignore the fact
that should their wages claim be
accepted the Government would

that -the

jobs almost

new

deal of interference with the man¬

pend" its

pll

only be satisfied at the'lcost'-/*
of dismissals,. they might1 adopt >

can

significant, the firm of contractors
automatic

GHPNNNM^™1

r

ize that excessive wages demands,}

hardship or inconvenience.
In
be forced to intensify greatly "its •
instance the men will have
to accept lower-paid jobs in which disinflationary effort, in order; to '
counteract the inflationary effect'
their specialized I skill would be
of this addition to consumer pur¬
wasted. .In other instances ; they"
chasing power.
The intensified £
may have to change their resi¬
disinflationary drive would nec- ;
dence or they

Motor Com¬

cerned.

employment

many

strike

tractor

.

both iull

have,

can

Even so,' their dis¬
certain amount of

immediately.
missal entails

automation. It

the

-j|

Up to qcW; it was
assumed -that,-wai4jets>,*#

generally

future.

assumed

reasonably

encing its first

are

-

both

writing Bri¬
tain is experi¬

who

-

.and the non-stop rise in wages.

men was

industrial

Dr. Paul

reduced manpower.;

a

the long run.

a

missals the actual notice

manpower,

ways, judging by the recent',
just over a fortnight.
resolution
of the ' Amalgamated
There has been no suggestion of
Engineering Union demanding' a
notes, has now any severance pay or any other
complete ban on redundancy; dis^"
developed in¬ form of compensation arising from,
missals and also wages increases
to an acute their dismissal. It is true, it may

versy

ers

:

automation and—dismissal of workers.

*

Market Wait Looks Gift Horse in Mouth

m

Perhaps it is not unreasonable
to hope that the lessons oj
experience may be beneficial in

unofficial but active resistance to automation. Views gravely: ,,.*
(1) lack of effort to enlighten the worker; (2) shifting of
bargaining power to labor which prompts British employers':
lack of progressiveness, and (3) vicious circle of labor's full
employment and non-stop wage rise demand causing—price
rise, Government's disinflationary measures, cost catting with

/;

Thursday, May 10, 1956

.

aid

the

with

output

unchanged

By PAUL EINZIG

Dr. Einzig believes Britain must automate or perish, and finds
the answer is dependent upon British workers' realization of
elementary truths, in commenting upon the first instance of

.

of an
but at
maintaining the output with the
the

Angus Precarious Fntnre
J

of

.

Conse¬

longer

.(Special to The Financial Chronicle)

-

BEVERLY

HILLS, Calif. —M.
Romine, Alfred Libby and
Laurence L. Doty have become

Donald

connected

Co.,

398

members
Los

with

Daniel

South
of

Reeves

Beverly

the

New

&

Drive,

York

and

Angeles Stock Exchanges.

(Special to The Financial Chronicle)

SAN

FRANCISCO,

Calif.—

Guy A. Q. Jossey-Bass and Bruce
A.

Merickel

nolds

Street.

&

are

Co.,

now

425

with

Rey¬

Montgomery

11%

April; 45% said no change, and
19% reported reduced volume of
incoming orders. By comparison,
those percentages in the March

indicate

moderation

in

the

there

was

r3oidly

rising

strikes, employment is reportedly
holding at high levels, and the
Committee members still find a

skilled

personnel. Buying policy remains
essentially
inventory

members
Not

continued

reflected

felt

unabated.

the

advancing

price
68%

in

March.

While

the
were

only

21%

in

April.

category
were

price

In April, those report¬
increases rose to 76%,

pressures.

to

in

of Committee

since last September have so

many

ing

prices

reports

March,

-

be¬

in

Lower

indicated by 3%,

31%

same

in
this

prices

compared

1% the previous month.
Inventories
Where inventories of purchased

materials
it is

are

reported

increased,

generally attributed to good

business

and

protection

price advances

against

strikes.

Thirty-

or

four percent of the Committee
say
inventories
with

32%

are

in

higher, compared

March.

The

same

reported .by

50%,

and

the

inventory

confirms

the

against 57% last month, and 16%

unchanged,
position

March

no

price structure, with the emohasis
noted on raw materials, nonferrous metals and electrical enuip-

shortage of engineers and

the

rising

reported .prices

and

The Business Survey Committee
members

That industrial

Commodity Prices
The

from

in

50%

quarter?"

found April production
anticipated levels.

low

orders, 36% reported improvement

reporting were 33%,
17%, respectively:

second

output is, at least, as high as was
estimated is reported
by 31% of
the Committee members, and
only

production compared with 33% in
March, while 49% reported Aoril
production remained the same, as
against 57% so reporting in March.
Declining production in April wasv
reported .by 14% 'of'those par¬
ticipating, compared
with only
10%
who
reported declines in
March.- In the category of new

ment. With the settlement of local

Two With Reynolds Co.

•

is

>

Volume 183

Number 5532

.

.

.

The Commercial and Financial
Chronicle

(2255)
inventories

say

lower,

are

pared with 11 % in March.

com¬

•«* *

* * *

^'

Employment
I Higher
employment
was
re¬
ported for April by 26%, against

23% for March.

There

compared with 66%

60%,

were

the

previous

month, who said employment

was

the

less

and

same,

14%

showed

employment compared
in

with

11%

March.

In the manufacturing
especially, skilled people are

areas

much

in

demand.

Buying Policy

<,

Buying for production materials

'

remains

predominantly in the 30-

to-90 days' range. The breakdown
shows 24% in the
30-day range;

36%

in

26%
are

the

60-day

bracket, and

covering for 90 days.

There

still £4% who report that they

must coyer
On MRO

for 120 days or more.
supplies, there is little

change from last month.
report

Only 1%
need for 120 days' lead

a

time,

Bank of America

Devine

Markets $11 Million
of

Bank

an

America

N.T.

&

Company;

S.A.

underwriting syndicate Co.; William

pany;

1, 1958 to 1971, inclusive.
The bonds are priced to yield from
2%
to
2.50%, according to ma¬
turity.
'
"
:
the

Bank;

Security

Bank

of

Boston

Los

-

First

Third

Trust

Co

and. Savings

C.

National

Electric Meters Co., Inc., of

1971,
are

inclusive.

being

The

offered

to

yield 3.375%.

Bank

in

Ginther,

Johnston

Edwards

Issuance and sale of the certifi¬

Nash¬

cates

&

G.

elected

to June 1,
certificates

Incor¬

&

Co.;

tion

Sons; Lawson,
Levy & Williams; H. E. Work &
Co.;- Stone
&
Youngberg; Hill
Richards & Co.; Kalman & Com¬
pany, Inc.; Irving Lundborg & Co.;
Shuman, Agnew & Co.; Kenower,

National

Company;

Cross

A;

are

of

subject to the authoriza¬

the

Interstate

Commerce

Commission.
The
500

issue

box

is

to

be

secured

estimated

cars

Associated

to

by
cost

I.

Emerson
Director

a

has

been

of

Therm

Ithaca,

N.

Y., it was announced.
Mr. Emerson is the Manager of
the
Ithaca
office
of
Hemphill,

Noyes & Co., investment bankers
and

members

of

merly

a

the

Exchange,

New

and

general

York

for¬

was

partner

of

the

firm, and Vice-President for de¬
velopment of Cornell University.

in

the

offering

are:

Redfield & Co.;
Stern, Frank, Meyer & Fox; C. N.

Dick &

White & Co.

J.

Willard

Stock

$4,728,355.

MacArthur & Co.;

Bank; Smith, Barney & Co.; The
Northern

&

ville;

Angeles; The First

Trust

Roosevelt

Willard Emerson Dir.

turing semi-annually Dec. 1, 1956

Schwabacher & Co.

offering

Corporation; Blyth &

Harris

Co.

St. Louis RR. 3%% serial
equipment trust certificates, ma¬

porated; E. F. Hutton & Company;

are—The Chase Manhattan

group

Inc.;

of

Co. Inc.; Wm. E. Pollock
Co., Inc.; Shearson, Hammill &
Co.; and McMaster Hutchinson &
&

cago &

R. Staats & Co.; Hel¬

ler, Bruce & Co.; Brown Brothers
Harriman & Co.; Taylor and Com¬

due June

members

Illinois

Halsey, Stuart Group
Offers Equip. Tr. Clfs.

Halsey, Stuart .& Co., Inc. and
Painej Webber, Jackson & Curtis;
Kidder, Peabody & Co.; The Phila-" associates yesterday (May 9) of¬
delphia National Bank; Laidlaw & fered $3,750,000 of New York, Chi¬

offering $11,000,000 City of Pasa¬
dena, Calif., 31/4%,2y2% and 2¥4%
Municipal
Improvement
Bonds,

Other

,•

Weeden & Co.; Dean Witter & Co.
R.
H.
Moulton
&

Pasadena Bend Issue
heads

&

Co.; Merrill Lynch,
Pierce, Fenner & Beane; American
Trust
Company, San Francisco;

Group

19

prich & Co.; Freeman & Co.; The

Merle-Smith; R. W. Press-

He

is

also

Southern

Director

a

Railway,-and

of the Cornell

of Norfolk
a

member

University Council.

with

17%
in
the 90-day
in the 60-day range;
39% at 30 days, and 17% ordering

26%

range;

needed.

as

For

I

capital

report

expenditures,
for

need

a

61%
1

f

lead

a

of

120

.

l
_

'

r>
"

days to

one

'

18% require 90

year;

/

1

■

.

■■

'

'

•

'4

.

days;

11%, 60 days, and 10%, 30
days or less.
Specific

Commodity Changes

'

Corrugated

products and

paper

aluminum had the greatest
ber reporting
On

the

brass,

side

up

some

num¬

Aluminum,

are.

products,
nickel, some steel items, tin, pig
iron, oxygen, acetylene, alcohol,
paper, corrugated cartons, lumber,
coal, lubricants, electric motors,
electrical equipment, linseed oil
and

tin

On

Only Chryslci Corporation

price increases.

copper

cars

have the modern

cans.

the

down side

are:

rubber, burlap and

Copper,

nylon

yarns.

In short supply are:

Aluminum,
copper,
nickel, steel
(stainless,
alloy, pipe, plates, shapes, struc¬
tural, sheets), selenium, titanium
dioxide, monel, paper, corrugated
cellophane,

papers,

lumber,

advantage of siimple mechanical
"

•

.

1

.

*

'•*

'

1

..

■

*

'-v>i

-

.

\T;vy."

1

J

•

*'■ :!

y

and

cement.

Pushbutton d riving now,

L. A. Inv. Cashiers

To Hear Wendell
LOS

ANGELES,

Harlan

L.

P.

Calif.

Wendell

of

—

the

du

Pont

Company will
speak
on
"Progress
Must
Be
Created"
when
of

he

the

House

May

addresses

Association

Cashiers

15,

at

the
of

members

Tuesday

the

623
South
Western
Mr. Wendell will doc¬

ument

the

which

speaker

story

and

progress

of

stress

create

will

American
the

factors

give

With

of

the

1948

the

du

as

Pont

an

company

Company

assistant

editor

of

the

relations

serve

advisor

to

as

a

public
Oveta

a

Mrs.

Culp Hobby, Secretary of
Health,

Education,

and

on

Welfare

in

the

the agenda for that

engineering k:adership

cabinet.

ning is the annual election of
ficers, according to Russell

Hendrickson,
Company,

of¬

1

J.

of Oscar F. Kraft &
President
of
the

Cashiers Association.

find in

Joins Reynolds Staff
(Special to The Financial

Reynolds & Co., 2150 Franklin

to

(Special to The Financial

STOCKTON,
Train is
nolds

now

&

M

De

Soto, Chr>^sler & Imperial, i

Staff

Calif.—Daniel
301

—

Chronicle)

connected with

Co.,

•

*

Street.

Reynolds Adds

Plymo uth, Dodge,

Chronicle)

OAKLAND, Calif. — Ernest E.
Borel has been added to
the staff
of

you

eve¬

Eisenhower
Also

motorists. Th is is the kind of

informa¬

division, Wendell received

leave in 1953 to

s;ifer for

employee publi¬

cation, and head
tion

simpler and

examples

of how Americans have
"unlocked
the door to production."

since

making life

The

progress.

also

prover

night,
Castle

Blarney

Restaurant,
Avenue.

tested,

Investment

East

Avenue.




E.

Rey¬

Weber

V

20

The Commercial and Financial Chronicle

(2256)
"

vl

♦ *

j- *

»

i

11

*

.Thursday, May 10, 1956

...

(toil

of

April 5, page 1690.

lr
-V

•

Issue

News"

"At the

•

By ROGER W. BABSON

>

^

:

the

In its May

Newark

'"Evening

said:-*-

.

--f.tr yx

•

meeting of the National

State

''

Continually I

"What could

being asked:

am

Depression**

ness

be

couid

It

overbuilding too much instalment
speculation )
IV

market
IIlcHKtH

<?tock

buvinff
ouymg,

sick, is.

fear, and exhaustion.

-

»

«

.

Unemployment

Real Causes of

Already
ecutives

attacks,

heart

have

to

causing ex-

is

worry

and

Joneses,

kept

have

-

tertainment in

people

me

guess

as

nrpvents

and

jesus

our

scar

stop

buying,

to

Street

mid.western

several

*

.*

states.

*

Our

Tome^and appointed

Director of the First

a

National City Bank of New York,
Mr. Horner also is-a'Director of

them

:

;

Bank & Trust Co.
unless
r

•

we

from

free

are

i +

accounts

to

up

hv

xmoo

Wrixrl

Yonkers* N. Y. recently opened
branch

new

office

at'

1

a

Buena

Vista Avenue, in the Yonkers passenger station of the New York

the

12,000

shares

truck

nrmr

'

>

of

Irvington

««fct>v.^

ization up $400,000 to $4,900,009.
National State directors intend
to incorporate a 20 cent extra
dividend voted last year into the
regular dividend, thereby placing

Central RR.

the

*

V

■' *-

*

'

■

-

•.

..

The

Sullivan
of

County

stock

new

on

a

Liberty,

N.

Y.

55-cent quar_

National-terly basis
has

in*

as against a comparable 50 cents quarterly last year.

creased its capital from $150,000 - v
"
4
*
;
to $350,000 as of April 23. -The
Edwin E. Spoerl, Vice-Presiincrease in capital resulted from a dent of the First National Bank of
stock dividend of $100,000, and Jersey City, N. J., died on May
the sale of $100,000 of new stock. 1. In advices from a staff correspondent

Jersey1

City,

5.000 share^'-Guarantee & Trust Co. in 1915.
Par $50 each, to $400,000, in 8.000
'ata'
the Jackson
same par value have
.Co., and joined First Na-

;.\_<>p00r conaisjlhg. of

'-

.

,

The First National City Bank of

-

-

Bank

,

>

•• '•

happiness all depend primarUy upon making correct decisions

worry.

joint

to

take

H- Mansfield Horner, President
of United Aircraft Corp. has been

from

dericjons

^

Pine

18

S

nerson

a

P

apply

,
CCAnAA

,

Tooilo

wny

CTd»r

worry

at

charge of the bank's business in

,

to

xt.....

1,

*»

32,000 additional shares of stoek

dividual accounts from $10 to at the new par value, with this
$25,000. The 2%% rate will also extra stock to be exchanged for

.

"get

ed

..

.

Let

/Irrv

almost

office

Decisions

seek"more6en- ou?

Roger W. Babson

I

stock, with par value changed
$25 to $12.50.
The stock¬

from

holders also approved issuance of

be associated with the New York

Correct

of

Importance

get

divorces, a n d

i.

City district. Mr. Taylor will head
the bank's Fifth Avenue and 44th
Street branch, succeeding J.
Stewart Baker, Jr., Vice-President, who is moving to the main

of

out

debt!

security, caus¬
ing house¬

causing

of

.

CAPITALIZATIONS

Moreover, we have both tried to
live
naturally,
pray
sensibly,
avojd
keeping
up with
the

pension

to

given

f-/"

OFFICERS. ETC.
'

REVISED

„i

workers to de¬

wives

NEW

f
after our evening meals.
Neither of us ever "carried cur
troubles upstairs," so to speak. We , Robert, L.
Hatcher, Jr., and
never
discussed anything after-John L. Taylor have been apgoing to bed.
If ever we had pointed Vice-Presidents of The
s
s

causing wagemand

NEW BRANCHES

.

me

the next Busi-

cause

stockholders, approval wa§
to :a '2-for-l. split : of;' the.
hank's 180,000 outstanding shares

CONSOLIDATIONS

Forecasting the next depression may come from worry, Mr.
Babson presents an insight into fear and how it can interfere';
with correct decision-making.

shares of the

ly bring on
unemployment.

our'<pers<onaiS rehgioiTfor

fear

being called "hypocrites."
risk

the

"of m^'qtotfly to^y^'gkr-;Owto

But at

being so-called

of

my-

I will this week make a con-

self

education as
stat,fession.-My education as a stat
a
fp«inr»-

Mv

allowed

never

Birds

the

What

myself

to

den; or in the N. H. woods;
the seashore at Gloucester.

by

or

But

to get the cobwebs of
old
oia

my
w

brain,

I

n an,

worry from-.
surelv must be York,

i sureiy.must

_

on May 7 the
q£ Donald c power tfy

announced

oe

President

worry.

B

in

example

an

for

MllllgS.'DflllK

Public Relations Forum

(Matthew, 6th Chapter, Verses 26
to 29)
29), He realized that the birds
are
obliged to hunt their own
their

nestS

for

-

compels the

them,

birds

God

even

build their

to

own
neStsI&Jnlike most young
teople today, the birds build their

houses"

and

for

pay

getUng
ing little birds! Jesus
us

not

to

PREPARE

Read

row.

"His

and

be-

rail
told

never

not to THINK about

or

them

Carried"

fore

tomorrow,

for

parable

of

the

Virgins in the 25th Chapter
Matthew, Verses 1 to 13.
It
,r

of

WORRY

was

.

,

which

Mav

-

—

Jesus

i

is

11

the

closinv

Hate

far

bank

to

the

First

National

Bank

I"

A letter from Peter J. Rescigno
President, outlining the offer has

Hughes; formerly As-

^

-

■

$

,

S.

*

5s.!

sistant Vice-President of the In-

Buffalo, May 17 and

Trust Company

of Paterson.

the s31® of 15'000 additional shares
stock. .Under the proposals it
!s ann°unced the capital will be
increased from $250,000 to $500,-

^Jldl S KI

Worthington, has been elected a

18. Checks
for $15 per person should be made

payable to

William J. CunningSecretary-Treasurer,
and

ham,
mailed

to-

William

jJ!'

ham

The

J

Cunning-

Savinfs

Bronx

Bank, 429 East Tremont Avenue,
New York
m.

.

57,

New

.

dinner

aa^V

Both

men

are

assigned to

.

mcTfwi!;

con¬

k at 5.00 p.m. (DST) Wednes-

:

*

•

,

*

*

members will become

a

part

Vice-President of First National

Promotion of Richard M.

£o ^ vicerPresident of Guar-

cox

i

; Pirst- <hc 10,000 shares of
stock now^utston^ing (wi«i par

value at $25
classified

a share) will be reinto 25,000 shares of

stock, with par value at $10 a
?h"e- ™'s vvill give each share-

ana John C. Linares, and all holder 2% shares of

receptions oi^Thu?.^ lha Commercial Division of the ^ the First National organization.
a receptions on Thurs Industrial Bank of Commerce.
.jweome-

.

naa
had

it

faced

,

.Linares

,

&

new stock
for each share of old stock held.

"Secondly, a stock dividend of
YO^OO shares of new $10 par
value

each

stock

oi
of

share of the

and

during |he Great Depression when
my many clients got scared and

b..,.™.
learned

liquor

to

Two
avoid

one

—

things I have
—

often

to

$26.64

taxes

to

my

SS

Religion

are

and

to

Jesus
Jesus'

They, moreover, must realthat worry is a vice which
harm

them

like

any

CO

R.

w,«




*

:j

vea?s' assocaR?on

bank

Mr

S P

■*""

^

Wilcox
„

-

.

erad-

was

^

Tt

wUh
•

Jsck
son'

Paniln
Caplin,

Douglass M. noar%

wU^' ^ ^

Leab-

walk
tellers
™a

windows.

Adolf

^Prerident

the

nf

be

m

b

th

portico of the

b

k

we would
nal Bank and
u^gesL that - they assume the resPonsibility for continuing • to
Proyide our customers with the
banking services we have sud-

Plied in
apPi** }" the past." Subject to apl
past."proval of the proposal on May 21,

S
two

free

center

trance

to

J. —Michael

M.

_

,

Johnson Avenue

-

...

,

.

between

the

the

en-

as

*

*

State

Effective May 1st the Long Island Trust Company of Garden
.

r

^

City,
would

T

\T

lr

L.

L,

N.

Y.

pay

2M>%

j

announced

interest

on

ij.

it

in-

*

The plans for the merger of
the Irvington Trust Co. of Irv-

ington,

bank.

*

Pearlstone is engaging in a securities business from"offices at~16
..

from

columns

the

Pearlstone Opens

,

ar-

fC"SerWSrlm %
'window^ will

passage

N.

j

^vaSx0ni,^ na^ra^ that

^o^ide'colln^^lvTnTthe ^ bUSmeSS

•»

vard-

•

cated that for many years there
has ^)een a close relationship between the
T
.aj

chitectural firm which specializes
in bank design» to plan two side-

gJW' ^
-

^^er*plan, Mr. Rescigno indiCommenting on the proPos€d

D,J ^
Halsey, McCormack & Helmer,

HILLS, Calif—-Mil

'lr m
Aronson, Jack M.

NEWARK,

Babson, more than anykalna/j
4«
else, helped me to avoid
worry by never talking grief to
ol

the

ef-

increase

Shelley, Roberts

BEVERLY
ton

other

drug.

Mrs.

IA
one

rate

30

Brooklyn, N. Y. has commissioned

teachteach

ings.

or

the

his

0f

including

il Chronicle)
(8pecial to The Financial chronicle)

was' m^companton

ignorins
ignoring

•

person,

Sft-W—»
Statler direct.

He^r|rt^h|aadersntX
wo ry
worry

per

anH

Join

Furthermore, I do not give any
psychiatrists, or to pills,
or
to reading books.
I give the

vice

he has been identified diirine mn«?t

the

credit to

will

Avenue,

and

worry

leads

is

Debt to My Wife

ize

a6' ^°°^w218' York 17
v66vestment Department, with which
• New

mgton

bther.

credit

new

15,000

tuoercuiosis
tuberculosis

gjven up for dead ; then,: (Murray Hill 9-5400). The tariff

^as.

will

proved
UUIII

N.

Bank

u

by

J.,
of

DOin DanKS ?n

the

Newark

the

t

UdllKS

with

National
were

stockholders

ap-

of

1

be

stockholder

me

attack
auacK

an

"g

Rutherford

del lish«i by three steps,

and

!

aav

Bank.

.

.

tto?af Ban^wflL ass'unfe"^

which, as °','March «31,
Xlcf;PrS?ld®n,t:11'sa™ou"ceAuy nSsent Jftii?t^;-h ' ^
^alter E. Kolb President of the .P«^nlt oiticegf Ujafta^loi^ed
Bank. Mr Hughes joined the In- aL.
Market Street tbill eondustnal Bank of Commerce ..in tjnue in operation, at. least for the
1952; Mr Worthington was for- Present and Present^officers of
5?er»y wlth "?eDBaSkera ,Trusf
ta?ud
Company and Public National

York.

,,

to

Therefore,
I
fought worry and

;when

•

:y".Fol»wrag.recommendations of

-been sent to the stockholders of
Linares & Rescigno. Under the

Louis

■

Jew Yorlfha's bee^p^Zted

„

demned.
•

a

registration for the Annual Meeting of the Public Relations Forum,

tomor-

Ten

also

phone subsidiaries.

follow

to

us

is

capital, effective May L
$3,135,000 to $4,180,000. Kef^

and

,

as

and

1951

bank s

Director of several General Tele-

Us

Teach

D ivtsiV n^Caribbeah: .^TheNaS
M
■_
-y.
the Connecticut National Bank of
ofNewJewey-At
" *
"" *
^
» the amount ^ death Mr. Spoerl was 59 years
- Irving Trust
Company of New of $1,045,000 has increased the VM.: """

District.

declarpd

getting
stock

shares

be sold at

$25Ca sna.fe,
shar^

f

IT ,/

I

one
each

for

with

of
a

the

price

Dreserd

with

present

stockholders given the right to
t>uy^ 1%. shares of new stock for
each- share

of

old

stock

held.

S VSHtL £,'£
Drice;».
c^ie

-,9?

ef

isnnn

u

«

^

15,000 shares at
whiuh
raiSi? ^375'0?®
?AAw^h ^12^000 will be paid
?

ci9snnn

into the surplus account, while
the, balance of^ $250,000 will go
of $250,(
!?ward capital account to pay for

^^ ^
\ dectore'a^iviTendreteof
cents a share
the
stock,
on

new

CQuwalent to $2.80 a share on the
°r
stock, against the $2.50 a
s"are Paid during the last two

The changes

I™ dividends.

are expected to be-

May h The plans C0An?e effe0ctitYf by July 13.

were Slven ln detail in our issue

Adams & Hinckley, Newark

se-

Volume

Number 5532

183

curities

.

.

The Commercial and Financial Chronicle

.

and

dealers, are underwriters

of the new issue.
*•

Advices
National

to

*

-

that

of

Bank

'

,4

•

■

,

effect

the

State

N. J., and
of

*

general

agreement

which

said

that

next

regular
*

plan

meeting

Mich.,

with

compared

previously.

Ste

Both

Marie,

San

of

stock served to

new

bank's

by

now

fornia.

$50,000

P.

of Ralph

€.
of

on

nections

nounced

Democrat"
"From
two

of

St.

-

until

1934

his

•

on

Dec.

million.'

of

it
San

has

until

his

1
*

Amalie,

-1

..

of

National

(United

-

*

capital

Islands
lotte

member

a

1913

;

the

Bank

St.

Virgin
Char¬

at

Thomas,

States)

has

V.

been

I.

in¬

creased from

$150,000 to $200,000.
addition, effective April 25,
brought about by a stock

The
was

dividend
of

of

stock.

new

*'

v '

of

BUFFALO,

the

Stores, vestment
seat

a

been

gating

Finance

owned

subsidiary
Trailer Co., were announced on
May 8 by Roy Fruehauf, Presi¬

and

In¬

Miami,

Fla.,

have

opened

branch office in the Rand

a

loans

1957

to

to

and

1962

the

loans.

"These
available

ary,"

;

amount
new

credit
to

our

enviable

an

Commerce

had

■

r

pre¬

DENVER,
E

have

finance

Honnold

subsidi¬

said Mr. Fruehauf, "are in

been

17th

Ross

added

and

the

Mercantile

tional
time

of

his

director
Bank

an

Na¬

Louis.. At

death

the

of

of

<

St.

he

latter

the,

was

a

bank,

the

111.,

and

Edwardsville,

the Hunter Packing Company. At:
his death Mr. Griffin was 77 years
of age.
V
T, ; •'

,

the

Christi

''

•;

Under

title

State

of

the

National

consolidation

Corpus

Rank^

effected

was

*"

,

a

of

as

April 20 of two National Banks of4
Corpus Christi, Texas> The two
k

banks

which

have

thus

become

united

are

tional

Bank, with common' stock

of

$750,600,

tional

\

State

the

and

Bank

with

.

the Corpus Christi Na-

of

Corpus

;

Na¬

ChrisJ,

stock iof

common

$500,000.
.The newly created Corp; s Christi
State National Bank, which oper¬
ates

under

the

-

Charter

-

of 'the *

Corpus Christi National Bank^has
a
capital stock of $2,500,000, in,
100,000 shares of common stock,
par $25 each, surplus of $2,500,000 and undivided profits,, includ¬
ing capital -reserves, of not less
than $1,369,885.
.*

RESULTS OF OPERATIONS
For the three months

ended March 31
*■

'

'

*

*

*

-M"

'

>

.
»■.

'

t

A

•

charter

.■»

•£ *'XA

7-

v

*-

issued

was

Electric

/,

<

*1'•

•

>

<.

♦

*,-•

*

•

•

•

•

•;

*

f
'

the

Hari in gen

National

Harlingen, Texas.
which

April
of

The

for

opened

Bank

new

•

*

■*

»•

■ -V

The

Bank

of

California, N. A. of
Francisco, retired * on April

San
30

Wilton, Comptroller of

under

the

bank's

retirement

program, after 40 years of service.

Mr.

Wilton

joined

Aug. 20, 1917.
in

1929

Mr.

Comptroller in 1948.

Wilton's

troller

R.

and

will

Cox,

duties

be

who

has

years

the bank on
He became auditor

Comp¬
by Sam

as

assumed

for

served

the

past

as*.

,

four

Auditor.

Prior to that he occupied" a simi¬
lar position at the bank's

Seattle,'

Wash,
a

office.

member

Bank

of

years.

of

Mr.

Cox

the

has

staff

of

been

The

California for nearly 30
'Louis
Arlie, Assistant

Cashier, advances to the position
of

Auditor

fornia.

He

35 years
were

of

is

the
a

Bank

of

veteran

of

Cali¬
over

service, 27 years of which

spent as

a

staff member in

the General Ledger and
Auditing

{

•
I

'101:

$ 9,852

$40,336
1

16

15

$10,747

$ 9,867

.

:.f 30

9

*

4"

l.\

ri\'* >•

./

-i

.

.Total

•

.

•

.

.

Operating

,

.

.

.

taxes

i:

ii^m) f.

•

•

§

•

•

-t

724

3,033

1,043
783

4,471
3,123
6.367

1,786

•

'

$ 6,380
8.366

2,105
763

.

•

•

$ 1,457
1,988

1,226

•

•

•

.

•

•

*

•

•

V-

$ 1,633

872

•

depreciation and amortization

taxes

Federal income

'

uction

.

.

m

>

,$.8,385,,

1,631
r.

$ 7,626-,

9

$ 2,362

•

$

'

$ 8,626

Other Income
Rentals and interest income from

Increase*

subsidiary

"

to

.

.«•••-

income

.

.

.

.

$

.

.

.

.

102

$

/<• Shareholders

and.

1

First

Company of San Francisco

Western

Bank




and

12*

$

307

25
$

140

'$ 8,933

$ 7,749

619
56

.

*-

$ 2,479

$ 2,330

182

119

519*

342*

4

116*

6

6

36

$

513

$ 2,178

$

2,148

$ 1,839

$

1,729

$ 6,755

$

5,601

215

860
$

4,741

$

•

♦

215

on common

623

6 25

•••••

«

$

shares

S

1,624

S

1.514

$

5.895

41

860

Common Shares

Outstanding at End of Period
Thousands)
Earnings per common share
(In

2,651
$0.61

.....

This is

an

interim

statement.

financial

The

statements

Company's fiscal

are

2,401
$0.63

2,651

2,401

$2.22

$1.97

ends December 31, at which time its
examined by independent public accountants.

COLUMBUS AND SOUTHERN

year

OHIO ELECTRIC COMPANY

of

both
Trust

127

48

.

directors

$

143

$ 2,242

56*

Preferred Dividends

Earnings

9

$ 2,464

construction (Credit*)

.-«•«••••

Total

116

'

bonds

on

charged

•*$

■ •

first mortgage
interest expense

Interest

Net

$

.«•••••••

Income Dedurtions

Other

30
38*

36

••••••••

.*••••••••••

Interest

26

for deficit of
40'

Gross income

Other

reserve

.

Other••••
Total

subsidiary,

.

.

reduction of

or

departments.

; v.,.{'\

■'

$31,740

$ 2,241

$

income

less expenses
Lewis A.

r

.

Provisions for
General

bank has

*

$10,731

.

4

.

Other operation

Harlingen State Bank of
Harlingen.
The
newly
formed

*

.

.

Maintenance

the

,

.

Fuel used in electric

on

a capital of
$300,000 and
surplus of $219,422.60. D. B. Dunkin is President and James'"L.
Mayer is Cashier.
;

11

*

f
1

"

conversion

a

'

Operating Expenses-

of.

bank,

business

16; represents

.' *"V >

1956

•

-y

Total

April 13 by the office of the U. S,"
Comptroller of the Currency .for

'

(Thousands of Dollars)

Heat f* •?;

-of

as

>1955 /

,

Operating Revenues

'

■

1956

vi.:

v.':~

t.

ma.

'

"

J,

Gregory,. Jr.

to

•"

and-Trust

Commerce

in

Bank

I,

the

staff

of

Company, Inc., 524

Street.

now ; the ; Mercantile
Company, .and- later with

Trust

'

y

Colo. —Andrew

and

uncan

accommodations

Company,
1

•

'

said:

been

ex¬

Honnold Adds Two

retirement

Bank

more

•

.

.

one,

highest

our

(Special to The Financial Chronicle)

executive, first with the Mercan¬
tile

the

$35,-

....

,

in

..

financing

refunding and recasting of

ing under the direction of George
;

trailers
,

justifying
pectations."

the company's fiscal year?
end Dec. 31, 1955, and the balance

vious

truck

States.

is

ence

aggregate

by the
Fruehauf

Co., the largest manufac¬
of

than

represents

of

e

companies," said Mr.
Fruehauf, "and its credit experi¬

since

Build¬

1

"Although only formed in 1948,
subsiuiary has grown
rank among tne nation s largest

in negotiations with fi¬
institutions. \
•

the

to
in¬

of

volume

generated

paper
s a

to

finance

1964:
assisted

] J
un¬

used

be

the finance

subordinated

Brothers

stock and

Company

Finance
greater

a

stalment

turer

of

senior

Lehman

Argeros.

„

due

due

notes

Mr.

./

tne

expanding ;

$100,000,000
4%
noies
due
1976; $^3,000,00J
4i/8% notes due 1976; $100,000,000

$12,000,060

ox

will

credits

acquire

vided

an¬

Francisco.

enable

United

bank

equity
has

company

i^rm

in tne

the

Trailer

Of

Company

der

dent of the trailer manufacturing
concern.
The funds will be pro¬

in the form

substantial
parent,

Tire"'increased? Do'riroWings

ag" re-

for Fruehauf
Co.,
whollyof
Fruehauf

$235,000,000

Trailer

a

of

accommodations

Credit

000,000

N/Y.—Makris

Bankers

to

the

whicn

; subordinated obligations."^,

company

New Makris Branch

addition

proviuea

Fruehauf Unit Credit

$25,0C0 and the sale

$25,000 of

31, 1955,

"

Lehman Bros. Arranges

nancial

the board of directors of Bank

in

as

-

-

The

Cali¬

Hale,Chairman
Broadway-Hale

America,

-

*

1930 and has de¬

throughout

from

aealh in 1936.

man¬

Inc., has been appointed to

"Globe

Louis

he

ago

years

Louis

to

1945.

close associate of A. P.

was a

of 'America

own

Its assets

D. Griffin,
Louis, Mo., occurred
at Palm Beach, Fla., on April 30.
As to Mr. Griffin's banking con¬
banker of St.

St.

bank, located in

has 77 offices serving 60

totaled $877

enlarge the

.

the

Biggs,

It is staffed and

its

founded in

Board
death

H.

Joaquin Valley about 3d

communities

capital.

The

named

May 7.

ern

$150,000

of $100,000 and the sale of

R.

posits of about $3,500,000.
With
the Orosi acquisition, First West¬

stock dividend

a

and

personnel, who
retain tneir seniority after
joining
First Western. The only bank in
its
community, the Orosi bank

*

Sault

of

last

aged

capital of $300,COO is reported
May 1 by the First Na¬
Bank

of

Council

Of the board of directors of Bank

on

effective
tional

member

a

Giannini and served

was

A

as

Advisory

s

inc.,

Western

miles southeast of Fresno, became
the Orosi office of First Western

of April 26,

May 10.
*

has served

bViK

-

founder of Hale Brothers Stores.,

the

the directors of the Newark bank
their

Lie

Vice-President of the Orosi bank.

will be submitted for approval by
at:

Kale

The

merger

detailed

a

in

the

First

terms were contained in the New¬

ark "Evening News"

Bank

approved

Coats, Chairman of the Board of

reached

on

National

have

father, P. C. Hale, Sr.,

the

Newark,

J., have

N.

Cal.,

njprger of the two banks, it was" trie-Board" of directors since
announced on May 4 by T. P. Mr.,Hales

.i.

the First National Bask

Miilburn,

First

the

Orosi,

21

(2257)

'

"

The Commercial and Financial Chronicle
22

.

.

Thursday, May 10, 1956

.

(2258)

Wallach, Ross Named

Bank and Insurance Stocks

Ira

WALLACE-

By ARTHUR B.

Our

By Central National
Wallach

D.

By JOHN T. CHIPPENDALE, JR.
It

Inc.,
international wood
pulp merchants, and of Central
National Corporation,
100 Park

Stocks

was

,

<

though there appears to be differences of
opinion as to the effects that a further tightening of interest rates
I would have on the economy, it is believed in many quarters that
show signs of tapering off.

It is well known that there are several
appearing in the economy.
The intermediate and long-term sectors of the Government
market have been able to show signs of doing better even though

soft spots already

•«

being

so

bit difficult to get

great in relation to

used to loan volume

governments.

.'

r

the short-term issues.

Arthur Ross

Waiiacb

D.

Avenue, New

companies, succeeding D.

Samuel

market

appears

'

'

y

'
4

Mr. Sproul's Retirement

/

money

V;

.

.

,

.

taken the news of the

to have

resignation of Allan Sproul, as President of the Federal Reserve
Bank of New York, pretty much in stride. There is no question in
specialists but what we are losing the
active services of one of the best and most capable "Central Bankers" in the business. Mr. Sproul has been very important to the

>

„

York City, at spe¬
cial meetings of directors of both

■

•.
■

/

The

-

;

■

'

;

.

Ira

■„

i

.

7

The broad and active market im Treasuries

still thin and limited.

'is still confined to

entirely in cash and governments.

a

.

; the pressure will come off very fast if business as a whole should

In the

perhaps

Even

concerned.-

are

either related to deposits
cr
to government obligation holdings.
It must be remembered
that the principal historic function of a bank has been the lending
cf its depositors' money to business. It was only the result of the
depression of the 1930's that loans were relegated to an asset of
secondary importance, with high grade bond holdings constituting
the mainstay of bank earnings. It was that era that gave us "100.%
Nichols," the bank president in the Chicago area whose assets

tended that it is

money mar¬

•

mounting volume of loans and discounts

present boom period the banks have been returning to
the old relationship, and the vacation away from it was so ex¬

though the feeling is growing in the

as

trend of loans for the next month or so will have an important
influence upon what happens as far as the level of interest rates

:

in

were

seems

kets that the interest rate raising operations of the powers that be
has reached a peak for the time being. It is also evident that the

.

brief comment here about the relationship
leading banks' statements of condition between government
bond portfolios and loans and discounts, and as the subject is
beginning to have the attention of large investors in bank stocks
perhaps some further observations will be in order.
,
A canvass of a number of the larger banks indicates that in
no case is it felt that the banks have "gone overboard" in their
Recently there

Governments

on

President of Gottesman and Com¬
pany,

This Week —Bank

Reporter

elected

was

'

the minds of money market
•

-

*

is, however, a feeling in some banking quarters that
the trend toward greater loan volume has taken some banks so

Gottesman, deceased. Arthur Ross
was elected Executive Vice-Presi¬

system and has helped its development tremendously in the years
that he was head of the New York Central Bank. It was reported

that any further moves in that direction
would begin to require close study.
Of course, a "hot deposit"
bank, that is, one in which the flow of deposit money moves
rapidly into and out of accounts, has greater need of the stabilizing
influence of an adequate amount of governments than the institu¬
tion in which this is less of a factor.
Some bank officers of the
more conservative stripe are thinking in terms of not wanting to

director
Central National Corporation.

of

•,

that he is desirous of returning to his home State of California in
order to spend more time with his family or to start a new career

There

far out

of governments

beyond the present relationship, and they are seeking ways of
curbing loan growth.
r
One means is to cut down on their brokers' and security
dealers' accommodation, and, indeed, eliminating those that do

go

satisfactory deposits. After all, a bank will be subject
lending to commercial and industrial bor¬
for lending to finance security speculation.
This

not carry
to

less

rowers

criticism for
than

little attention to the fact that historically
loans are very low in volume when set alongside the
commercial and industrial borrowing.
attitude gives

Another

keeping

approach at

a

brokers'
totals of

tight rein on further bor¬

rowing is to make the prime rate applicable to fewer borrowers.
This not only acts as a damper, but, from the bank's point of view,
it has the advantage of putting more borrowers on higher rates.
Borrowing is likely to continue

strong.

One of the factors

affecting it is the Mills plan for accelerating Federal income tax
collections. This, it will be recalled, is the Treasury's method of

dent

managing

and

had

.

served

that is less demanding than being President of the Federal Reserve

as

Executive Vice-President

and

Wallach

Mr.

of which he is still ~
member of the executive committee. He is a di- '*
Corporation

their payments.

As between the

year-end and that of 1955 the shifts from governments into
loans were fairly sizable, but if we then add the March 31, 1956
ratios we get a realization of the extent to which loan volume has
1954

grown

in only this year's first quarter.
Ratio of Govts, to Deposits

12/31/54 12/31/55

Ratio of Loans to Deposits

3/31/56 12/31/54 12/31/55 3/31/56

52%

56%

Bankers Trust

23%

19%

19%

Bank of New York—

30

23

25

43

49

Chase Manhattan

28

18

18

42

52

Chemical Corn Exch._

32

19

19

37

First Nat. City__

34

22

18

41

Guaranty Trust

38

30

25

53

«

.

45

.

,

64%
59

'

•

,/

49

56
52

56

55
•

62

46

President

and

Hanover Bank

40

Irving Trust

32

25

24

44

46

54

Trust.

35

26

28

30

36

40'

& Co._.

24

20

24

48

47

35

23

24

42

52

31%

23%

___

Manufacturers
J. P. Morgan

~

Gottesman,:

H.

the

New York Trust

Averages

_

,

•

.

,

Returns

Lake

in

honeymoon
Indiana
is

Russell

-

J.

has- been Cashier for Oscar
Los Angeles,
Calif.
His bride is the former
Lorraine R. Stodolny of Walker-

restricted

will

his.

end

Los

when

on

The

dinner-dance will

a

be held in the Fox Hills

43%

47%

BELLINGHAM, Wash.—William
engaging in a securi¬

A. Quick is

ties

business

from

offices

in

the

Bellingham National Bank Build¬
ing under the name of Arthur
Quick & Co.

Moseley Branch

CHICAGO, 111,

the

in

Forms Newark Company.

The

.

The firm

of

Trent &

Co.,

New York Citv

has

name

NEWARK, N. J.—A. J. Grayson
? Co', of New Jersey» Inc-> has
.

^oroaaway \ew lorx city, nas been formed with offices
been
changed to A. Trent & Co.




Washington Street.

of

Room

Adams

Hotel.

the Mid-

when it

to

the

Standard

Oil

Company,

.

9:30

a.m.

served

will

front of

in

small

evidence in Government

measure

also to the favorable

Electric

comes

Company

bonds will be very well received

-

along.

money

continues

to find

an

outlet

in the most

liquid Government issues, with some evidence now that maturities ,
upon to 1961 are getting more attention than was the case recently.
It is also reported that quite a number of switches are being made ;

{

in

the

more

distant Government bonds, with those selling at the

.

largest discount getting the bulk of the reinvestment demand.

Two With Schwabacher

•'

(Special to The Financial Chronicle)

■>

the Mid¬

Burnett

to

the

refinery

over-all

the

operation..

Robert

.

E.

David

and

Chairman,,

rela-

s

Wilsoh,
Graham,

During the afternoon

be present.

will

search

be

and

Engine

/

Laboratory.

of

tour

a

*

the

Automotive

CLINTON,
Addison

is

S.

Broad Street.

from

On May 10, Hoppin Bros. &

Co.,
New York City,
members of the New York Stock
120

Broadway,

Schwa- < Exchange, will admit G. P. Pollen

Ex-

Stock

a

offices

H. Haughey,

Benedict Zeman to part

O.

and

Carlos

Jr.,

Jewett,
nership.

changes.

Bruns, Nordeman Branches

*

Forms Maynard Inv.

_V

■

,

Co.

(Special to The Financial Chronicle)

Bruns, Nordeman & Co., members
of the New York Stock

have

an inunder the firm

pjne

Jr.,

is

engaging in

vestment business

Opens
in

Hoppin Bros. Admit

r

HAMLET, N. C.—Elbert E. May-

name

of

.

Maynard

Investment

Exchange,
branch office in
Exchange Building,

opened

a

Cotton

the

Bluff,

direction

of

Arkansas,
Harris N.

under the
Draughon,

E.

Company from offices at 49 Main

and in

secun-

Street. Mr, Maynard was nreviously representative for McCarley

Spring Street, under the manage-

& Co., Inc.

ment of Wiley G. Beane.

C.-Thomas

engaging

business

with

100" Montgomery

Francisco

San

and

nard,

T. E. Addison

now

Co.,

members of the New York

Re¬

-

-

are

&

bacber

company

Financial Vice-President will also

ties

no

A

discuss

there

which has been in

; SAN
FRANCISCO, Calif, r
luncheon will be ;
William A; Baxter and George E.
and *Dr.
R.
C, Gunness

Hotel.

tion

-

Discount Issues in Demand

on:. v

at' 15 Tuesday, May 15; busses leaving
land

as

subject to

Society .will take a field^
the Whiting Refinery,?pf

trip

at

is

It is indicated that yields in some of the non-Treas¬

Short-term

7

7

;

*

it

bonds have reached levels which were attractive to those that
It is also believed that the large offering

General

of

NEENAH, Wis.—F. S. Moseley Dietz, President of C. I. T. Cor¬
Co., members of the New York poration, will discuss the corpo¬
ration and consumer credit at the
Stock Exchange, have opened a
luncheon meeting of the Invest¬
branch office at 104 North Com¬
ment Analysts Society of Chicago
mercial Street under the direction
to .be held May 10 at 12:15 p.m.
of William S. Eddy.
»
land

thinness,

had funds for investment.

Arthur O;

—

tone

&

Now A. Trent & Co.
39 Broadway

better

tax-exempts.

Chicago Analysts to Hear
New

this

of

reception which has been given to new offerings of corporates and
ury

Arthur Quick Opens

because

securities is attributed in

Country

c

55%

and,

-

obligations continues to be

Corporates and Municipal Bonds Well Received

of/

Cashiers

House

Investment
June 2

Association

Angeles

ever

Agencies Help Market

Government

of

President

as

as

for

in both directions since it does not take very
much in the way of buy or sell orders to have a marked effect
upon the prices of these issues.
At the present time, it seems as
though the buyers are having the better of the argument, due prin¬
cipally to reports of active purchases of selected obligations by
Government agency accounts. This is one way in which the Treas¬
ury can influence the money market and at the same time give
much needed support to the Government market.

The wedding ceremony
April 21 in the home
of the bride's parents,
Mr. and
Mrs. Clyde E.-Ricketts, and the
reception was held in the Lincoln
Highway Inn, South Bencl, Ind.
office

market

rather easy movement

on

of

The

;

,

ton, Ind.

Hendrickson

Government

.

years

held

>

that be, would be carried out.

••

F. Kraft & Company,

was

open

for the last 10

who

Hendrickson

inclusion of Government issues other than

market operations would tend to give much
needed stability to the Government market, while at the same
time the credit loosening or credit limiting policies of the powers
Treasury bills in

Calif.Back
atKoontz

LOS ANGELES,

his

ket followers that the

Benedict'

a

dub.

22%

.

Market

v

the

64-

Open

powerful

•

•

51

mone¬

Committee of the Federal Reserve Foundation.
\
' : ;• :
System which puts into operation the credit tightening or credit "
r relaxing policies which the powers that be have decided upon.
Up
Mr. Ross is a director of the ;:
to now the only way in which the money markets have been eased
'
Mexican Light & Power Company, -,
or tightened has been through the purchases and sales of Treasury
Ltd.
of Toronto;
a
director of
bills by the Federal Reserve System. It is very well known that
Rayonier, Inc., New York;-a di¬
Mr.. Sproul has been the leading advocate of having open market ■
rector and member of the execu-.
operations, not confined entirely to Treasury bills, but also to intive committee of St... Lawrence
v elude
certificates, notes and bonds when as and if this kind of 7
Corporation, Ltd., and a director;
action appears to be warranted.
of United North Atlantic Securi- j
The amount of Government securities outstanding has in- ;
ties Ltd., both of Montreal. •"" - >.■
creased very substantially in the last 20 years and this makes mat¬
"
;
ters very different than they were when the national debt was \
Russell Hendrickson
1 much smaller^ Accordingly, it is the opinion of many money mar- •

tenure

23

reports that the

tary authorities have not been seeing eye to eye as to the ways in J"

.

25

Reserve Board's Policy

which the policies have been carried out. As President of the FedInc., and Vicedirector of the... eral Reserve Bank of New York, Mr. Sproul is Vice-Chairman of

a

R.

and

S.

D.

Mr.

51

37

on

On the other hand, it is evident from

-

rector of Rayonier,

from

accompanying schedule is enlightening.

Disagreement

.

and

director

a

'

The

-

..Bank of New York.

chief executive officer of Eastern

getting corporate taxpayers on a current basis, as individuals are.
This has brought many large borrowers to the banks, and will'
continue to do so until the corporations have caught up and are
current with

•'

at

200

-

.

Xupelo Miss
.

.

at 301 South
.

Volume 183

Number 5532

.

.

The Commercial and Financial Chronicle

.

(2259)
line " passenger

service

is

fully

Named

dieselized, only 53% of. freight
operations had been so converted
as

last,reported.

been slow to

This

move

Northern Pacific
Revenues

of

the

Northern

Pa-

road

on

April

29

placed

to

80

April

10,

1950

when

split effective

instance, supplies
000,000,000 •; kilowatts

the highest since
road
had
the

were

y,

for

the

and

nearly

2,-

of ' power;.-;

will

..

of

the

goods.

gain

haul

There

in

revenues

of

from

component

in¬

in the

manufactured
little

was

agriculture

from

came

of

the

movement

would

age

of box

ern

Pacific

been

will

cars

during the period of

to

most

in

this

until

has

The

■

is,

retained

for the
in the

average

oil

and

a

year

about

Class

I

oil

companies

high last

of

on

year

the

$1,327,019

for

and

con-;

the

that

in

gain

the

completion

the

Butte

brought

indices based

100:
::

/'.a

*

'

;

even

out

following comparison

of

by
as

7.';-:V

1

1955.—i"

122

1954

114

108
118

117

116

108

106

1950._'_i

.

■'

-

■*•

-

f

116 ;

;

:

111

twice

as

The

than

without

increase

.

in

period were also a factor.
The latter asserted itself in March
net which was $1.12
per share as
against $1.08 for March, 1954.
an

annual

bring the
additional
wage

basis

the

granted
road

about

revenues

increase of

lion annually.
rate
increase

7

$9

as

$8.3

mil¬

passenger
Mav
1

^5°,000

an-

The 6,900 mile Northern

Pacific

is

erns"'

of

one

three

extending

"North¬

betweenthe

Twin Cities and Great Lakes
ports
to the Pacific, the Northern
Pa¬

cific

lies

between

Northern, which is
and the

these

the

three

Great

farthest north,

"Milwaukee."
roads

For

years

shared

a

sparsely settled territory with the
Great

Northern

route because of
across

the

400

the

preferred

lower gradient

a

the Rockies.

Consequently

average
haul is
long-over
miles for the Northern Pa¬

cific.
•t

Several things

have

in the last several
years,

happened

however,

I




the

which

has

of;

the;;'

10%; in-

a

value

price

stock.

70

of oil

.

,

;

by

r

of

the

oil 7

substantial

a

of

Northern

Capitalizing

cents

1955

of

share
the railroad

taxes,

per

less

before

operations;

60%

of

its current price of
43V&V
to time it has been
wondered if the oil element

From

The

time

might

not

/

be

"spun off," but this does;1;
not appear to be feasible. The
oil
lands
of

are

the

gr^nt

subject to the first lien
prior lien and land

road's

4s

of

1997

which

are

now

The

Northern

fornia,
world's

Grove, Cali¬

suburb of Los Angeles, is the thousandth unit in
the

a

largest

system of finance

offices—serving the United

and Hawaii.

V

Bcneficial's steady growth
during the past 42 years demon¬
Pacific- and

the

•

Great Northern are
making joint,
exploratory studies of the possible
advantage of a merger of these
.

Beneficial Finance office in Garden

new

States, Canada

'

callable.

million

effective
over

by:

should

against the

some

The 5%

should be worth

nually.

On

freight rate

March

.

component in the price of North- "1
Pacific .common
would
be*"
somewhere around 25 or less than

off¬

any

this

increase

•

ern

earnings suffered a slight set¬
This was due in
large part
to bad weather conditions but the
rate

Pipeline in

relatively small oil factor

much percentage gain for
as for the year
1955,

freight

i

adjusted net per share of $3.86 at:V
eight times and allowing for the !l.

back.

setting

'

this

facilitated

properties is

in

Pacific

■

increases

is

Pacific

potential

factor

period

wage

.

ex¬

from

*

.

strates the

continuing and increasing need for the kind
helpful service these offices

provide—friendly, realistic

ance

.

tw0 roaus and merger at tne same
with the Chicago Burlington
& Qulncy and Spokane Portland

to

families in
meeting unexpected demands

budgets. Last

& Seattle, the latter two
being V
jointly controlled by the Northern

Pacific and Great Northern. These
y
four roads together have an
ag- • '
gregate mileage of. about 25,000

than

year

2,000,000

totalling in

excess

of

assist¬

on

their

Beneficial Finance System handled

more

loan

and

other

financing transactions,

of $675,000,000.

,

which

would "make the'
merged
system by far the most extensive
in the country even if
substantial

abandonment
areas

These

where

effected

were

there

studies

is

were

recently and it will

begun
some

only
time

before any findings are disclosed.
In the
meantime, the Northern
Pacific is a rather
high cost op¬
eration due to light
density, sub¬
stantial branch mileage and

only

partial dieselization.

a

BENEFICIAL loan is for

a

beneficial purpose

in

duplication.

be

...

While main

•

-

£

uiance
BENEFICIAL

a

member of the

a

Kf*

and gas

strong upward trend with about

the

as
''

112

^Although revenues for the first
two months this year continued in
a

year

is

last November

rail..

: 118

115

1952.__yt: 119

,

$3 million this

revenue from movement

.

119

1951—

!"

.

'

tive committee.

vantage of the loss of $1.4 million'

104

121

.•*

1953....

113

,

It

,

terest but the road
estimates thatzit will suffer the
offsetting disad-;-'

•

'

Northern Northwest Class I
Pacific
District
Total -

■

Northern

rev¬

1947-49

on

serve

opemA iti

against

as

1953.

revenues

1955 annual report
morel* strikingly

the

and

job
com¬

plete line of matrices for stereo¬

Oil
new

all,

type casting. Mr. Kleiner also will

royalty basis-

previous

reach

This

tive percentage gains in the road's

enue

New

manufacturers

various

and produced total

in

will

source

year.

a

to

$1,6816,153

$987,017

pected

two. years

especially.
This feature is well
portrayed in a chart of compara¬
but it is

at

Universities.

the'

of

printers and also produces

oeneficiaifinance <Sudem

and

it

ago

to farm it out

revenues

past

and

carton

acresv

area

gas

own
exploration and
operations.
It was then

phase remains

and

Banking
Columbia

on

magazines,

of

its

drilling

rate, the road's

district

American In¬

plates

mineral

and this has had
good results.
and gas operations reached a

progress has been well above

of

and

the

printing

kinds for newspapers,

Northern

Northern Pacific in the past five
or six years
represent growth or
At any

stitute
York

at

factures

benefit

Pacific

three million

over

rich

ducted

year's

cyclical

studied

listed

American Stock Exchange, manu¬

develop¬

direct

decided

a

Personnel Club of New York and
has

Cincinnati,

144,-

gains on
the relatively greater gain for the

seen.

1951.

Electro-

of

important,

are

publicized

of

operations.

Pacific

acquire a 100-car
fleet of refrigerator cars.
;

to be

1929 and in personnel work since
She is also a member of the

G.

board of

225,000
supply 200,000

Northern

rights in

spent to

merely

The company,

Wall

Professional
Women's
Club, of
which she is president.
Miss Rice, who will serve from

the

Rapid

irrigate
to

as

foregoing
and

the

gas

Another $2 V\ million is

last

Ohio.

the

parent organization
Street Business and

to

The

course, the Williston Basin oil and

shortage in future
years by authorizing a $9V2 mil¬
lion car building program involv¬
ing 1,000 50 xk foot double door

Whether

well

the most

ment

rence of the car

.

Company

Women,

of

power.

The
but

crop movement. The road
taken steps against a recur¬

be

as

kw. of

heavy

to

ultimately

acres

which, according
to
the
road's
1955
report, was
especially critical on the North¬

box cars.

stage are the

type

of

elected

1,638,000 kw.
None of the
foregoing has irriga¬
tion features, but the Yellowtail
Dam which has been authorized

this

have

higher and total revenues would
have been even greater if it had
not been for a nationwide short¬

has

nel

been

000 kw. Ice Harbor Dam and the
two Priest River dams with com¬
bined
capacity of

change

products, but

planning

has

directors

July of 1956 until June of 1957,
has been with the
company since

eventually irrigate
a
benefit, in the last * half of the farm area larger than Rhode Is- MacKay is engaging in a securities business from offices at 1361
year, of large military movement land.
Others, the McNary Dam Teall
Avenue. Mr. MacKav was
of freight and personnel due to
and the Dallas Dam with
526,000
formerly
with
Carl
M.
the "Korea affair."
Loeb,
About half kw, 562,000 kw.
respectively, are Rhoades & Co. and Putnam
Fund
of last year's bulge was due to the
scheduled for completion next
sharply increased movement of year, and the 500,000 kw. Noxon Distributors, Inc.
lumber to meet the demands of
Rapids Dam in Montana is schedthe building boom
and another- uled for completion in 1959.
Still
creased

Fitzgerald & Co., Inc.,
Beverly Hills investment bankers*

ternational Association of Person¬

a

^

Kleiner, vice-president of

Cantor,

Department, has been elected
corresponding secretary of the In¬

addi-

;M. Ci. MacRay Upens
SYRACUSE, N. Y. Melville

Rice,

tion

a

to the two-for-one

Burt

of Bankers Trust
Company's Personnel Administra¬

availability

build up this territory.
Among $13.3 million order for
hew high in 1955 and these have been
irrigation and the tional diesels.
earnings of $7.72 per old share, development
of .cheap
electric •; v..
vs. $3.86
per share giving effect; power.
The Grand Coulee Dam

25%

Alice

cheap.coal mined by its subsidiary, the Northwestern
Im¬
provement Company. Nevertheless
the

cific made

has

of

Railway

Kleiner Director

Of Personnel Women

toward diesel-

ization because of the

By GERALD D. McKEEVER

road

Corresponding Sec.:

23>

BUILDING, WILMINGTON, DELAWARE

Co:

execu'

'

'

'

'

4

and Financial Chronicle

The Commercial

Thursday, May 10,1956

...

(2260)

H

higher cost of borrowing may not
have much of an immediate ef¬

EDITOR:

LETTER TO THE

fect,

Views

Supports Dr. Spahr's Price

devotion

ing by member banks. It is here
that restrictions can be imposed

Gutmann.

voiced by Dr. Ernest R.

for borrow¬

most sensitive source

Financial number of ounces of gold reprepptivp
howsen ted by each dollar. When this
To be really effective, how
Dr Frnest R
latter number is decreased, as ever
the discount,
Dr.^Ernest k. happe ied i
haDDened in 1933
more dollars must be coupled with open marw,th Hr Wal>
with Dr. Wal
other ket operations - Federal Reserve
pome

Chronicle*
take

agree

,'y

•

7

of stable

cause

and

money,

Maintains current rate is not too

that

discount rates showed

central banking au-

nation's

the

iriflfltiVin

rp^Arri

fhnntipR

signifying

not

high.

of attempting to control it. Unless
the market is allowed to behave

The recent rise in Federal Reserve

as

inflationary, not recessionary, threat

concern over

much

completely free market

as a

hpKuvo

tx/rviiTH

tp«

Hp

nnnf

H

py-

in the latter's com¬

E. Spahr

ter

mechanism

with

issue
issue

ntmann anH
Gutmann and

the

to

increasing

Editor, Commercial and
T
I

7

"

B

"Guaranty Survey" interprets recent rediscount rate advance
as indicative of Federal Reserve's courage, independence, and

window—the

at the discount

ence

criticism of New York Univer¬

Richard Hall of Boston disputes

sity Professor's article

can

Applauds .Reserve Board's Credit Policy

the Federal Reserve banks
exercise a restraining influ¬

parison
deposits
dex (125) in 1920 with the totals

^4UWAt

wholesale price ing the member

ot'Lifd.^UlIw/and^i^ras^

devalued in terms of gold in

UUi,

iur

lOOK.

)UId

though the total of
deposits was, in round
figures, $43 billion in 1920 and
$57% billion in 1936.
Prices reflect
the number of
even

money and

7

*

in

The

about

the currency has been twisted into

such

aggravated form that gold

an

-

—

--

^

*V

M

iCVVi

edict

of

governmental

that

amortization
the

to

and

\

;

^ ' :*>,

:

'

continuance * of

a

QDTT7

For,

SPITZ, Esq.

Fortune's Rocks

Biddeford, Maine
May 8, 1956

there

generated
ments

bank deposits contracted. Finds

expanded while

warning signal in the slower

a

of disposable personal income to much faster lending rise
particularly that occurring outside of the commercial banks.
operating

First National
the

current

Bank

threat

a

The

says

of Boston

issue

of

its

in

"New

England Letter."

Continuing, the

bank

is

This

says,

leveling

a

off

indicated

industrial

in

ue e,n1

by

pro-

"The demand for credit has become

so

strong that, in

avoid

inflationary

count

rates

the f<fth

all other

scaled

have been

time within

\Xest

upward.

order to
dis-

nressure

a

rates

In

raised
vear

Le

for
anH

being

general,

the

cost of business borrowing is now

the third the highest since the early 1930s,

quarter, while bank loans showed
a

Effectiveness

squeeze

porate
market.

for the credit

reason

is the two-pronged corinfluence on the money

Not

only

was

there

a

"It

is

question!"

a

however

whether

a higher interest rate in
itself will constitute an important

deterrent

the

to

application

for

loans

meet

relatively small proportion of the
total cost of doing business. Moreover, interest charges are a tax

and

record

equipment,
time
ances
in

firms

and

March tax

payments

outlays for plant and
but also at the same
withdrew
invested

bank

the

bal-

proceeds

Treasury, state and municipal
obligations.
The net

short-term

consequence was an

bank

loans

bank

deposits.

and

a




expansion in

contraction

„

in

since

it

combined

the

that

.

with

Tr easury

the fact
bill

rate

promptly rose above the new discount .rate,
raised the question

....

whether.: still - another
increase
might not be in prospect. In the
paSt,

automatically
develop¬

is

unless checked result
,

depreciation of the purchas-

a

.

rise of the Treasury bill

represents

but

a

> f.

-■*,

*

v

prevailing rate to the highest
since May,

level in 23 years.i Not

"What

most

mention

is

>.

onstrateTouV'pr^
economic achievement. But that is not enough. We
must also be able to demonstrate
our ability to avoid over-expansion by means of excessive borrowing that can lead to dangerous
consequences.
The key to controlling business cycles lies in
keeping expansion within reasonable bounds, and the valiant
efforts of the monetary authori-

for spectacular

:Vf

'V-/w7;
ings banks* tkA

r,

sav-

panies

savings

and'

and loan associations:
.

'^.Friday,

P

':

'

H a r r i m a il;
sjeneta the'

^

8

•

.

bill

Abrams

level.
in the

Corporation.

The pur-

this Corporation is to pro-

mote, encourage and

stimulate the

do development and rehabilitation of
the present blighted areas by, making firstlonger perspec- mortgage loans in such areas on

untn 1930 did any
go

Mortgage

that

tive, are not high but low.
rate

George A. Mooney

creating the

commentators

rates, viewed in a

.

rampant.'

trust cam-

pose of

not

-ii

banks and

pacj^ies

since

by

.

.

a—.-I

—x

ifnp^1 eTpntearvTq^
January, 1935.

level

statement

-

1933, had the New York rate been
above 2 V2%. Nowhere inthe svs-

h""k"

.

following

The

George A. Mooney, New* York:
State Superintendent of Banks, .
New>

rate above.the discount rate has
often heralded an advance.la the

discout

the dollar.

"The American record has demlucnuictAt.u^vutuuaouu..-

strong demand for bank credit to

heavy

*

Not

Federal Reserve
3%. The
"Furthermore, public psychol¬ great depression of the 1930'sushered in an era of low money rates
ogy has in the past played a de¬
that has continued up to the prescisive role in bringing a boom
Only by comparison with
to a dramatic end.
As C. Canby ent.
conditions during and since the
Balderston, Vice-Ghairman of the
depression are current rates high.
Board of Directors of the Federal
"Aside from the outright inflaReserve"
System,
has
recently
reserve
oysiem,
+;onists, those disposed to criticize
warned:'Financial history records the rate advance may be expected
boom after boom that burst
to
base their argument on two
cause men "chased the fast buck"
^
at the sacrifice of prudence . . . main grounds. One is that for the
neither monetary control nor fis¬ last six or seven months business
cal policy
.
can maintain eco¬ has tended to move in a sidewise
direction, with little change of
nomic stability if group psychology
runs

Higher Interest Rate's

gain of nearly 10% during this

period.
"The chief

.•

,xl^

pace

is

York State Creates

centers,

inflationary

that

in the

there

apjni0ns will differ. It must be
agreed, however, that the rate advance reflected the independence,

* conform, is to provide maximum
employment and at the same time
maintain a relatively stable dol¬
lar.
But when plants are operat¬
ing
at' capacity, with growing
shortages of manpower and ma¬

ing power of

inflation,"

Whether the develop-

ments 0f recent weeks constituted
a turn is a question on which

convertibility the'national
,,
v
"
monetary and credit policies must

First National Bank of Boston traces the threat of intensified

capacity,

decisive turn one way or

a

0ther.

7,
^
, "Even more has been made of
policy,, with which the fact that the advance carried
the

inflation and explains how bank loans have

of intensified

taken

Employment Act of 1946

terials,

near

business

the

un^i

what going price

Can Higher Interest Rales Curb Inflation Trend?

ec«nomy

a'wait-and-see'policy
situation had

to maintain

debased period. This, sharp and
govern-"'gap .between,, the.t gain

a

suggest is purely

fTPM ARn
RICHARD

apparently does not believe

mann

; "As for the sidewise business^
movement, this also can be interpreted as an indication of thei
stresses and distortions that arise]
during a period of swift expan-,
sion, and a reflection of the consequent need for corrective brak-i
ing action. Markets for some raw

^

^

^

upon

so long as gold
is not the remedy?

Gut-

Dr.

uctici

s

ards

retirement

and

which

years,

and inflation,

been

expected the monetary authorities

.

billion, that runs, and
runs and runs, without any pres¬
ent plan to find some fiscal plan
over

have a

trying to bring
proper balance between
and deflation. Curbing
by means of monetary

"The curbing of inflation, how-level will ever,: extends, beyond that of.
government bonds be paid off and " credit expansion.
The Employin what kind of monetary stand- ment,Act of 1946 prescribes that.
At

-

about $275

of

had
hxA

strangely mixed and the Federal
Reserve had given little indication
of its attitude.
Many observers

of the same,

m0re

to

amounts

seems

negative

On all of this was superimposed

debt

founded

mann

subsidies, governmental
orders, stockpiling and
purchases.
national

boom

signs
siffns

on the side of easy
overexpansion of credit,"

money,

Mfge. Facilities Corp.

in

tUllUitlUlia

level

parities,
military

a

likely be used

weather

nomic

growing
monetary concept that
in debt
mental pricing edict and govern- and income is' a warning signal
mental borrowing has contributed, that must be heeded or the day
the remedy for which Dr. Gut- : of reckoning will surely come,

gold, according to Dr. Gutmann.
But he fails to point out that there
have been many artificial price
level changes that have ignored
free enterprise.supply and demand
price level markets, and substithe

a

for

•

of

tuted

five terventiori

pact of a national debt that is not
planned for amortization and the vate the situation, the largest prevailed since the recovery from
effect of the same on the going gains have been made by some of the 1953-54 recession. These five
price level.
*
the new institutions with a com-, advances have carried the rate at
A The continuance of gold conver- partively short lending experi- New York and most other Reserve

MAMMVAVii

»

<xu

.

*

his discussion of
and sound monetary
conditions.
Yet,
all economists
must admit the inflationary im-

commenting that "monetary

of
ui

interval
nuuvai

an

which the since the "accord' with the Treas- upward.'*
authorities have ury five years ago.
"In weighing the significance of
no
direct jurisdiction.
CommerNew
for
the Federal Reserve's action, it
cial - banks,
which account
about 42% of the total, showed has been repeatedly stressed that
a gain of 166% in the last decade,
the rate advance was the fifth
while all other institutions in the within a year, indicating a conNew agency to issue stock and
aggregate increased from around tinuing and presumably increas—
obligations, according to George
$29 billion to over $114 billion, ing concern Over the strong exMooney, Superintendent of Banks
or by nearly 300%. To aggra- pansionary tendencies that have

price level

processes are relentlessly logical"
and prove that the debasement of

Under such condi-

Federal Reserve

a

It is interesting, indeed, to read
Dr. Ernest R. Gut-

for restraint.

excep-

mercial banking, over

several factors affecting price, and expresses

the views of

of

was

materials, especially metals, show!!
signs of strain. In the face of these
signs, businesses report sharply
increased plans for new investment in plant and equipment, conous
inflationary developments.
courage, and devotion to the cause
sumers are still in a spending
"Then, too, there is a broad of stable money which have char- mood, and construction is well
field of lending outside of com¬ acterized Federal Reserve policy sustained, if not actually turning

Factors

significant

and

policy is a delicate operation that
calls for great skill, as untimely
and to vigorous action could bring
about
a
recession, but an unchecked boom could lead to seri¬

Dr. Gutmann, Richard Spitz describes
the view that a
sounder price level results from gold convertibility than from a
A
debased monetary standard. . ,< - ~
'

after
cuici

came

CctHIC

in

task

inflation

Entering Into Price Level

Chronicle:

disruption

system

managers

money

difficult

In taking exception to

Editor, Commercial and Financial

in-

,Uariintion

except in an emergency.

Street

LETTER TO THE EDITOR:

on

banking

the

that reason will not

a

Reader Comments

ori'H

M.inf

.

_

flexible, would cause

of

Boston 15, Mass.
May 7, 1956

being bid for a given
quantity of commodities—not the

mann,

revelation

eco-

<

dollars

4+

.

,

.

RICHARD T. HALL

'

177 St. Botolph

uivi capui5

ciil

Sis ,i -ass
months during which the

manipulation.

money

luuivat^a

uouauj

i-mx"

Vey," monthly review of the Guar- utilization of available credit reanty Trust Co. of New York.
sources and a corresponding need *

J^alid-th'e'raistag'^f reLr'.e J'on^"in^r^ a"d dadoaWnaa"" (ions, a refuel to foHow the mac-.

ctv-

nomic I.e.
.ution, not to the will-o'-the-wisp

xx it uuaiauvjr

xoout vi

luaj

^

This

(StWetaXrif,2e™MueMhatl,the
1933),

banks to oeco

dependent upon borrowing

more

ZSLVAXSUZ srxfi BW.S
problems and their soluwas

Kflnnmp

i

i

#

by the fall in the
iiidex in 1936.

deposits and whole¬
sale prices index ((79) in 1936.
Dr. Gutmann attempts to show
of money and

below

a

sound economic basis.
«Tbe bill is

a

,

,

result of consulta-

leaders of the financial industry and a committee of
commissioners established by the
Governor.
The Banking Depart-;

^ion among

ment has
fuj

study,

given the matter careand is confident that

sufficient safeguards exist so

that

Corporation
will be financially sound and eco-

the activities of the

nomically desirable,
"It is suggested that your Board
be made aware of the investment
opportunities in the stock and obligations to be issued by the
Mortgage Facilities Corporation,
Another is that money rates You may also inform your Board
open market had tended to that
the Banking Department

rise for several weeks prior to the wholeheartedly supports the obadvancebe asked, should the Whv, jectives of this legislation. _
in discount rates. Fedit may
1
,1"w®
'c,«
eral Reserve take an action that Form Lakewood oecs. \^Oip.
certainly did not counter the upward trend and perhaps served to

LAKEWOOD,

Ohio—Lakewood
been formed

Securities Corp. has

1_

.

•
with offices at 14714 Detroit £.ve"The obvious answer to this last nue to conduct a securities b^sideductible
expense
so
that, for
question is that monetary authori- ness. Officers are James C. Mcfirms with profits and a 52% levy,
ties who believe that a relatively Collum, President; Theodore Male,
an
increase
0f
in
jntGrect
free money market, like other free Vice - President; Chnsta Lerch,
f
,
markets, has an important role to Secretary, and J°yce
cftarSes> for instance,, would rep- tieg toward this end should have play in maintaining equilibrium more, Treasurer. Mr. McCollum
resent a net cost of less than one- the unstinted support of- the in a free economy will, in general, and Mr. Male wer® previously
half of one percent.
While the American people."
tend to follow the market instead with Brew-Jenkins & Co..
.

.

.

intensify it.

J-

Volume

Number 5532

183

.

,

The Commercial and Financial Chronicle

..

(2261)

Continued

from

4

page
n

■

■'

tries, to help them put
their-

in

w

national

dollars

more

more

food

.bellies

into

25

and\

uncontrolled

trade with the West.

Public

If we fail to

do

this, regardless of the money '
might save, we will be creat¬
ing and economic and sociological

Utility Securities

we

Into

vacuum.

that

By OWEN ELY

So¬

vacuum,

Electric Utilities in Iowa

viet Russia will be quick to pour

and

money

policy of lending
freely to other nations.
in

for us to underestimate its politi- her ideologies and offers of
cal and economic potentials.
nomic aid.
Of course, we have been trying
Jt •
th
normal fear of

must adopt a re-

we

examined

more

1

S

0

eco-

The Iowa electric utilities offer attractive
yields to the inves¬
tor.

Following

are some recent

snch

Recent

31 Iear 01 sucft
may strengthen

Russia's

to promote economic development

developed
countries, as well as into France,
Italy, Finland and Latin America,

in those areas which are now
dealing with Russia.
We have
programs
of government loans

economic aid to other nations

and grants; we have made an ef-

has averaged less than 2% of our

fort to stimulate private invest-

Iowa

national

ment

Iowa Southern Util.

Even

the

infiltration

our

face

into

of

less

income.

-

The

of

amount

private lending and investment is
also low.
With only 7% of the
world's
about

population,

37%

able to

the

of

sumption.

Surely

multiply

world's

pay.

/

<

of

pace

>

industrial

;

.

,

•

year,

to

need

to

•'

keep

if

record,

that

up

clearly

nas

Thp

^

gone

Ipckj-tIp-i

ine less-ae-

fierce struggle between the
Free World and Russia> could use

ec^mvSroS^nur^

free

mat
:

*a

...

u

We

into

us

unwise

an

We ;

ac-

have

the

eco-

J:

+i„

.*

pani;Lpd?

f

•

;

■

of- makes sense to invest capital in
less-developed areas in order to

part

;

'

•

-

~

Is Our Story Convincing

,t

vast

are

.

^

.

of

telling

we

th** right

wav?

tne.ngnt

our

Arp-

way.'

wp

Are we

storym
ron-Jin^convinc-

wobblv

" f

,j

nations

u

private capital would be best, in
my

opinion. Public

money

we

say

Our public funds should

„

want to help be used mainly for power, transthejr economies portation,
communications
and

we

strengthen
can

'grants

„

help, themselves .^

Re-r irrigation

projects

member, the communist world is

trade

HrfM
lacin8

essential

to

stabilizing these governments. We
spending over $3 billion; a Yeaf might also use our agricultural
merely to spread their doctrine./: surpluses to promote economic
How much are we • spradiiuf
-^development, if that can be done
explain -the doctrine of.freedom, * without - disrupting international
} Russia has built up her military
markets,
strength in air power and atomic *
"
;
weapons so that she feels relaRe-Examine Our Program

tively

At the same time,v

Oh

have spent
she has built her industrial ma- billions of dollars on foreign aid.
chine and made, economic; prog-- Perhaps some of it was not wisely
secure,;

ress.

Now

haps

finds

is

she

able,';or

:

yes,

I know,

we

spent.
Perhaps there has been
mismanagement in spots. .Not aleconomic devices to further, her- ways has-it worked in favor of
aims abroad and expand her pat- the Free World.
We must now
its

tern of trade.

per-

to

necessary

'

use

c

<

.

"

re-examine

vigorously

•She has served notice that she

our

pro-

in light of today's threats

grams

and junk old methods once highly
cherished. All this will plunge
supply .many of! u. into political name-

is extending the cold war to the
economic front. To prove it, she
deal with Egypt to

made

a

arms

from

essence

Czechoslovakia
incursion

an

and the Middle East.

aid

to

dam
a

to

into

in building a huge
the Nile, agreed to build
mill in India, promised

on

take

factories

ties.

nh«-ihiiffv

Furthermore,
invited

has

with

the

facili-

will

she

technicians

change

oil

ex-

earlier

spoke

ern

Asia

wholesome

technical help
when
they need it.
She also
speaks openly of financial assistrequest

world

must

of

hold.

in

fear

Such

the

face

a

of

danger can dissolve opposition of

coun-

isolationist groups. It might hold
in check deep-seated prejudices

raise their
Communist
aid to Egypt, India, Afghanistan,
Yugoslavia,
Indonesia,
Syria,

against some of the less-developed nations because of their ancient cultures and religions, both
often difficult for Americans to

the

to

ance

tries

to

help

standards

Burma,

less-developed

of

and

them
living.

a

of

number

other

too

hptwppn

ourselves

lone

and

markets,

we:

certain

able

to weaken their ties with Russia.
Our

products speak

louder than

political*" "jabberv from - the So¬
viets.
In fact,
American goods
might be the best propaganda
device

at

disposal to weaken
position.

our

Soviet

the

America

the

face

can

and

comprehend

tolerate.

That

nations is estimated to total about

tain that industrial

nations know the newness,

the freshness, the
rewards of

the

self-government.

democratic

of

Only then, will they recognize
the Soviet system for the slavery
that it is—the

This
the

developed
East

and

front

away

Call it evil,

may

from

the

on

very

West.

political, packed with

lies, but let

us

security by

our

superiority.

be

engaging in

securiltrns busm<ess fromuoffices
West 179tn street, . .
y.
porm Fund Analysis Corp.

not be lulled into

war

are

#

in

an

economic

of the atomic age.

offensive

is

to

spread

cold

Our best
tech-

our

feeling of moral nological and managerial skills to
It would be suicidal help industrially backward coun-




new

not shown much

change

shares, to be issued soon, 1956 common earn¬
\

*

,

He remarked: "Industry is strong and growing in our
The active and thriving Quad-Cities

area.

industrial

com¬

new

rolling mill of Aluminum Company of America, which

again is expanding; plants of Dewey Portland Cement Com-

once

papy,,

psqar,.tyUyer, Packing^Company-,,.and/,^Bendix Aviation.'?

Other

firms

in

Collins Radio,

the

area

Quaker Oats, Pennick & Ford,

include

Allis-Chalmers, Square D, U. S. Gypsum, National

Gypsum, Certain-teed Products, Celotex, Morrell Packing, etc.
company's electric plant has increased 160% in the past

The

decade and the gas plant 155%, after
facilities.
the

units until; 1960,

Power will

with Illinois

since an interconnection

permit purchasing firm power from that company.
faces

Iowa-Illinois
Iowa

capacity is about 23% and

will probably not have to complete any new gen¬

company

erating

retiring its gas manufacturing

The present electric reserve

Power

&

the

same

gas

problems

Mr. Whitmore is

its

as

of house-heating

Saturation

Light.

neighbor,

in the Fort

districts only about

hopeful of getting an increased supply of

for the eastern areas in 1957-8.
The company

48-12-40%.

maintains

an

unusually strong financial setup—

Permanent financing will not be required until next

p'

fTre

1

Secretary

and

Carl

Turk

U
^ Y
Vice-President. Mr. Gilbert

formerly with First Investors Corporation.

The share earnings

record has admittedly been
$2.37, compared with $2.66 in

or

year

1958.

In earlier years

1950.

the return

and hence it was necessary

.

narrower

We

/

rather drab with the latest figure at

interests face

aid

.

<

Company, Deere & Company, J. I. Case Company and others; the

huge

a

nff:noC!

'

munity includes farm machinery plants of International Harvester

gas

Max Kaufmann Opens

galloping need for expanded

foreign

service

73%.

Max Kaufmann is

from the standpoint

of additional

care

Dodge district is 93% but in the five eastern

tory.

even
though their
Fund Analysis Corp. is engaging
self-interest might be a in a securities business from_ofIt may turn many less- little hurt.
ftces at 545 Fifth Avenue,^ New
countries toward the
Conclusion
SrSnt H i

communistic challenge

economic

effective.

the

Y

expected to remain in the $1.90-$2.00 range.

oldest and most de¬

praved institution in human his¬

:

portant cities served are Cedar Rapids, Iowa City, Ottumwa, and

dignity and the

American system

years
v

industrial

226,00.0

are

Fort Dodge.

counted borderline or behind

these

;

Charles H. Whitmore*
described that company's eastern area as mainly the "Quad-Cities"
with a metropolitan area population Of about 225,000. Other im¬

,

Only then will

36

Iowa-Illinois Gas & Elfectric's President,

nripp

fear could also serve to make cer-

$500 million during 1955 and the
first few months of 1956.

ings

yen®®nc;® n^r0S,?iVwav°to liTsoim
to Igo out of o^ way to hiy s,ome
extra money on tlle line to e

the Iron Curtain.

70

'

fl'a"k'y'

now

33

13.4

1951

for the

it does not shirk

,,,hatpvPr

75

although the $1.99 in 1955 was the best figure. The
dividend rate has remained unchanged at $1.40. After allowance

Rs responsibilities. The price of
freedom has always been dear,
Vn<vfr1 fuf
1
with their blood, their fortunes,
fheir, families, and their all. we
an, opportunity to pledge a
certain part of our standard of
|.lvinS
its continuation. Quite

nQV

15.1

Earnings .of Illinois P. & L. have
since

Atomic

Age with confidence and with op¬
timism provided

1.06
1.71

development" in the area, President
Gussett remarked "progress in Iowa is most gratifying—intense
promotional efforts are being made by the utilities, the Iowa De¬
velopment Commission and numerous cities,'' and he presentedthe Analysts with some brochures to prove his point. As to pos¬
sible Federal competition from big new projects on the MissouriRiver, he stated that the firm hydro power being developed will
be but a small part of the 1.5 million kw connected power pool
capacity and' that it would be absorbed largely in the Dakotas,
Minnesota and Nebraska, without serious dislocation of utility
.■plants. :■' " •"/'■'f*
v.
i">
.i.
•/. "•

2°"f

might be

70

5.0

;5.2

vastly improved in recent
security and adequacy of service.
~

Regarding

between ourselves antlBy gain¬
certam
Iron Curtain countries.
ing

13.6

0.80
1.20

electric rates.

real

during

the Middle East and Southeastern
to

hefore

that

very

hall hav€ to engage in trade

w

+r.

penetration into areas the West-

and

reilsUcally

an election
year,
f
, L^hroaflene l the
But the urgency cuts across party mantle of freedom to cover the
freedom to cover the
lines and sectional interests,
less-developed nations that are
I

.

irusiaci reansucany,

——

India,

exchange for industrial equipment, and will assist Afghanistan

to this fact

35

1.99

16

In addition to the uncertainties regarding additional gas sup¬
ply, Iowa Power & Light has been plagued by delays in obtaining
rate increases, and by the lag between pipeline gate-rate filings,
applications under bond, and final FPC decisions. The company
has no escalator clauses in residential or commercial gas and

In

politician hopes to

every

avoid

,

—

countries of

surplus rice from Burma

build

.

—

intelligent,
fully-realized fear. I was trying
to point out its value as a dyr^amic force needed to blast a
throughway to national unity in
our
fight against Russian economic and political penetration—

in

and

.thing

Africa

She offered

Egypt

steel

to

—-"b,

—m

■

to

survive

to

are

should consider the

we

*

.

thev

un

obliged

simply

are

'if

40

space-heating requirements
the company installed a propane gas peak-shaving plant last year,
and capacity has been further increased this year. The company
needs additional firm gas and is interested in the development of
underground storage projects by Northern Natural Gas and Natural
Gas Pipe Line. Saturation of residential house-heating is 68% in
the Des Moines area, compared with a possible maximum of 85%.

fa9* that political orientatiop

should

St 0S.ni<in' Fu^li.c m°ney snuuiu

sincere

we* are-

,

they

investment

more

these

to

concessions?;--Do
believe-*;

nations

so

supplying

we otter require take the form of long-term loans
vother .at iow interest rates, rather than

•V*

military

them

We should give sharp thought

canital

ing enough in our offers of-aid?
Does
wev offer -reauire
the aid

when

of

sources

31%

75

23

Service

In order to take

°* nations like Japan and Indo-,
nesia will follow the routes of
trade. These two nations, for ex-;
ample,

...

to follow wirmethods.-, to

areas

But:

mi

*

of

Supply.

Yes, our record should inspire
*

ourselves

'assure

-

Pub.

has also been

i

communist-led

the

world.

the

69%

13.4

fact that the company had practically no electric reserve in 1950
and has now built up the reserve to nearly 20%; The gas
supply

emotional and seeks only the best
advantage. That is precisely why
k

over

13.4

2.39

5.2

outperform* centrally

can

$2.18

5.6

1.40

Iowa P. & L.'s plant increased from $70 million in 1950 to
$125 million in 1955, a gain of 79%, although revenues during the
period increased only 63%. This discrepancy is explained by the

l

twice as much;as that. In self- certain borderline nations have;
planned socialistic and commu- defense we must dig deeper into eagerly
accepted the Russian
nistic economies.
If we make1 it our P°cketsovertures. The enticement of maevident that we want to help by"
Our foreign aid is small as ter^ reward took precedence
sharing our know-how and our compared with our military ex- over whatever objections of
substance, we can spur what is penditures. We are increasingly idealism were present. In fact,
left of the Free World into en- dependent upon the rest of the whether , we like: it or not, we
larging its margin of productivity world for raw materials and it
w?-Jres.1Soed to
tured

1.80

27

companies, Iowa Power &•;
Light and Iowa-Illinois G. & E., recently gave talks before the
New York Society of Security Analysts, which may be summarized
briefly, as follows:
'
; * •
i
<

+i

in eXctCtly trie fields
.

$1.50

32

Own.

The Presidents of the two largest

competition. It has demonstrated
leadership in industrial pro-

.

Equitv

5.2%

29

first quarter showing.

b 1 e competition. Why
should this nation fear economic

r e a s o n a

tll6

Stock

Out

Iowa Electric Light & Power has had the best
earnings record
of any of the group since 1951, when it earned
only $1.47 compared
with the recent $2.18. This year the dividend rate has twice been
raised to the present $1.50 rate. The company made an excellent

•

of

economy

Pay-

Ratio

Earnings

Iowa Power & Lt._

.

have

Div.

Earns.

Yield

Iowa-Ill. G. & E.

Hut we should not permit fear
to
stampede

Price

Share

Current

Rate

Iowa Elec. L. & P.

awaken every Ameri¬
dream of fruitful se-

can

Recent
Div.

About

it.

veloped nations, many of them where it is best equipped.
which toduy are so vita.1 in.
For the most .psrt9 tr8de is un**

understood,

should inspire every* unprejudiced
observer with the conviction-that
a

oi

Amprira

^axm America,

™

Our

pace.

lviusi

Latin

prevent

billion^durtion it not betechnology. meet
and its willing to Why
should

of a mtle more than S1

We

progress.

<

j

to

nomic strength that can meet any

States and other countries into
-less-developed areas is at the rate

<

.

It

from

can

will

yields and price-earnings ratios:

„

Price

bring unified economic ef¬

can

fort.

abundance.

But let's face it. Capital investment funds from the United

small

a

It

tion.

Capital

setting a fast
setting a iasi

are

assistance

Less-developed Nations Need

con¬

should be
loans two or

national

our

Yes,

program

-

__

we Americans
We Americans

countries.

technical

a

we

That would be

price to

have

we

three times for the sake of world

stability.

foreign

enjoy

we*

our

„

in

which

vacuum

a

costs.

Eventually,

rate

increases

greater difficulties have been
no
a

on

the rate base was quite high,

for several years to absorb increasing
were

statewide commission and some of

little difficult to deal with.

tained
and

obtained in

•

the municipalities have been

Recently a court decision was ob¬

establishing the principle of fair value for

it is hoped

in Iowa.

Illinois but

encountered in Iowa where there is

that this will improve the general

the rate base,

rate situation

„

26

The Commercial and Financial Chronicle

(2262)

people

9

Continued from page

of

Bases oi Economic

their

in their
and their incomes, in their

Strength

within his reach, and

are

them if

buy

therefore, may

he wishes to.
Because

are

we

classless

a

so¬

ciety, the average American cit¬
izen may entertain ambitions to
live as his
better-off neighbors
and

live

have the things

to

And

possess.

he

creases

they

his income in¬
frequently

as

and

may

acteristic has

does

making an
produc¬
tion five years hence.
That, as
you can readily realize, is a rather
important figure for anyone in
the tire business.
that

at

In order to

ar¬

figure several other

estimates had to be made first.
In

passing, it may be of interest
you
that we estimated this

to

year's production at at least 6,700,000 cars, and that by 1961 the
figure could very well be 9,150,000.
However, it was two sets of the
other figures which I found to be
of

if not greater, interest
person looking into the broad

equal,

to

a

future

of

business

American

and

industry.
increase

set concerned the

One

in the number of American house¬

holds

by

accordingly.

1961.

there

Today,

are

approximately 47,700,000. By 1961
there will be 51,700,000, an in¬
crease
of 4,000,000.
Think what
that will mean if only to the con¬
struction industry and the home
appliance industry, 4,000,000 addi¬
tional households by

ac¬

business it¬

of

part

the part of government,
on the part of labor, even on the
part of ourselves as individuals,
on

could
a

trouble. It could

mean

deeper and
As

mean

prolonged dip

more

1961.

businessmen,

Disposable Income
set

dis¬

though

increasing

products and are
building the facilities today which
will

take

our

of

care

tomorrow,

we

the

demand

of

must guard against

overbuilding. The

holds true

same

with inventories, which should, at
all times, be
adequate, but not
than

more

in

excesses

and

that.

pricing

our

the

in

must

We

methods

Alberta and I predict it will net
restless spirit, this na¬
the Government between $25 and
striving for improvement,
that is appealed to by the enemies $30 million.
Certainly, if the natural gas pic¬
of free enterprise. They say, "We
ture
clarifies and Trans-Canada
will make changes and, therefore,
gets started, it will set off a new
improve the lot of everyone. We
boom
in lands adjacent
to the
will do things differently from the
manner
in which we have been pipeline, not only in Alberta, but
in any prospective area along its
doing them, and, therefore, every¬

disposable,

This will

per¬

increase

$81 billion to $350 billion by 1961.
The

disposable personal income
family should increase from

per

average of

$5,647 to $6,774.
growth in popula¬
tion, of itself, does not always
mean
corresponding growth in
production and consumption:
If
it did, some of the unfortunate
an

Of

course,

countries

of

the

be

in

this

growth

would

producers

and

increases

avoid

policies
to

use

we

production

and

which, in turn,

increases employment because

greater

consumption

in

our

to

however, the
population is a

increased

demand

consumption- and

and

industrial

business

that

reason,

expansion. And for
the growth in our
population will have a profound
effect

on

There

of the

our

are

of

of

other indicators

shape of things to

If you

simple

come.

merely to make a
projection on a chart of
were

paper on

There is also

porting

vast

evidence,

annual

our

a

2Vz%

which you

ranging
increase

from
in

per

number
of
with high school and col¬

lege educations, and the effect of
suph education on their desire for
a

higher standard of living.
Our

the

future

basis

In

past.
ahead

of

my

with

greater

can

be

great

basis, to
products

a

we

and
can

on

a

on

the

look

confidence

productivity

to

stable

constantly rising standard of liv¬
ing.
Rising Trend Line

a

chart.

steadily rising line

That line is bound to

dip

occasionally.

will

be

But

its

trend

upward, and the dips of
nature provided
we, as
individuals, and as members of
a

all of

minor




under¬

dictate

to

as

that

I

finally

one

to

thing which

should realize

us

and

strongly
do

not

as

clearly

as

I feel

we can.

have

to

emphasize

this point with this audience.
But,
on the other
hand, the point is so

that

fact

other

various

economic

the Edmonton

living
not

bank

a

in

account.

is

of plenty,

economy

an

He

of need. And of
importance, he is rea¬
sonably certain of his future.
an

of

Because

that, and his native currently taking

good sense,. he is going to look
closely at any idea or proposal
which might
affect his present

can

society.

It

this:, there

is

tampering with
enterprise

our

either

must

the

*

are

throughout the world,
visionaries

no

system of free

by

subversive forces that
tive

be

They

subtle,

risen to

at work

by

great, but because there is no real¬
istic past history upon which to
build a trend, no projection be¬
yond 1970 was made. Present re¬
serves are 18 trillion cubic feet, in¬
dustry estimates they will increase

2.7

greatest

the

source

It is

in

the

system

the foundation of
structure.

free

of

is

strength.

our

entire

Under

enterprise,

our

every

may follow his ambitions,
plans, his dreams as far as his

person

his

will and his

For if
ture

one

is

still

must be

resisted.

small nick in the struc¬

followed

by

another and

another, inevitably the struc¬

ture

becomes

nally

weakened

and

fi¬

to be

our

so.

And

constantly
economic

we

might mention here that the
important' factor governing:

mit

to

States. Since West-

export

gained its per-'

300 million

day - to ■ the
Pacific
plans for exploration
Northeastern
have

been

feet

a

Northwest,
activity in

British

Columbia

accelerated.

v

.

covered

usually^headed

by

a mem¬ to drill 7fr wells and prove

the

Pacific

judiciary.

reserves

with

,

future.

the

the

looking 25 years
Its findings will

Government

*

to*

plan

petroleum; industry

was
asked for its views and forecasts,.

and I would like to summarize the

Petroleum

of British

area

alone

plans
further
in the great Fort St. John
Columbia.

1

Should Trans-Canada Pipe Lines
Limited gain a permit for gas in¬

terchange with its United States
affiliates,exploration along its
route

would flourish.

s

All

that is

hoped for is that the Federal Pow¬
Commission will eventually de¬
to dance to the Tennessee

er

cide

Pacific Northwest

tential

Soule's

R.

as

Vice-Presi¬

a

consideration

that firm.
secu¬

years

of which

wholesaling

he

mutual

has

spent

funds.

He

will service dealers in the Chicago

metropolitan
dealers

in

area,

the

as

states

of

well

as

Indiana,

study

For this purpose
submissions of

the

Petroleum Association,

the

growth of
industry and the

the

economic and cultural well-being
of Canada

is conducting a
ness
from offices

at

1407

West
•

'•

|

W. H. Little Opens
ROANOKE,

Va.

—

nation.

White, President of
Imperial Oil Limited; M. S. Beringer, President of The British
American Oil Company Limited
and A. V. M. Ash, President Of
Shell Oil Company of Canada Ltd.
Woven

William H.

missions

know

through all these sub¬
the golden threads of

Building to engage in
this

their

must, therefore,
vigilant to defend

a

securities

success

intention

rosiest

business.

to

of free

en¬

terprise against the attacks that
in various ways, made against

are,

it.
A
word
about
the
American
character is in order at this
point.
It is
basic
with
the American

present

,

the

picture obtainable, but to

draw reasonable conclusions from
known

Joins Boettcher Staff

factors

and

from

minute

DENVER,
has

Colo. — Bernard
joined the staff

of

Boettcher & Co., 828 Seventeenth

Street, members of the New York
Stock

Exchange. He
with L. A. Huey Co.

was

Phenomenal

C.

formerly

The
will

nia, and possibly Japan. The as¬
also saw great potential
in the Minneapolis-St. Paul mar¬

sociation

ket

consensus

is

saw crude produc¬
increasing from the present
average of 400,000 barrels to 548,000 barrels daily in 1960, to 781,000 in 1965 and to slightly over

million barrels dailv in

one

1970.

By 1980 is forecast production at
1.48 million barrels per

day.*

Barrels of Production
.

Canadian demand would, in the

next 25 years,

between

continue to remain

200,000 and 300,000 bar¬

rels greater than production. How¬
ever

in

a

portion of that demand is

Eastern

crude

must

Growth

that

area.

The C. P. A.

cally,

study of basic trends.

(Special to The Financial Chronicle)

Cowsert

po¬

that

increasing

are

and prosperity. These are
visible from the facts. It was not

has

major

tion

made by J. R.

Gar¬
securities busi¬

Alaska Place.

a

The company submissions were

F. T. Garner Opens
DENVER, Colo.—Fred T.
ner

as

a

felt

for offshore shipments to Califor¬

Iowa, Minnesota, North and South

petroleum

as

Canadian

presidents of three major
companies which have made a vi¬
to

It

and those

upon

based.

the

tal contribution

outlet.4

by
throughputs,
Trans
Mountain Pipeline could reduce
tariffs and place Canadian crude
in a strong competitive position

are

I have chosen

the
of

careful

factors

all

of

and

which their forecasts

rities business since 1919, the last
10

exhaustive

of

we

system

and

by 1970.

be

opened offices in the
Colonial-American National Bank

destroyed.

businessmen

-

Paul

Little

Defend Free Enterprise
As

while
50

natural gas development is Cana¬
da's1 ability to export its surplus

general outlook as seen by the
distributor of leaders of the industry in Canada.
Selected American
are
Shares, Inc., Their views
certainly "big
has
announced
the
election
of thinking", and they are the result

economic

our

system, whether it be under the
promise of greater personal se¬
curity or pious promises of na¬
progress,

annually,
between

to

Dakota, and Wisconsin.

ability permit.

structure of

be

55 trillion feet of reserves

intelligently for what lies ahead.

Any impairment, however small,
of the

would

In dealing with future crude oil
markets, the * C. P. A. sees the

America's

economic

There

Waltz. -/

nation

enterprise
of

feet

Company, national

Mr. Soule has been in the

free

trillion

the C. P. A. estimate is 2.5 trillion.

President of Selected Investments

dent of

*

barrels.

intentions

whose

entirely selfish, but
would ultimately
destroy the freedom and liberty
under which this country has be¬
the

10.8 billion

net

a

CHICAGO, 111.—Harry L. Sebel,

methods

come

average.

year

na¬

or

be

not

whose

per

The potential for natural gas is

is

The Royal Commission on Canada's
E c o n 0% i c Prospects
is

■7l The

is

Briefly, this is

In five years they will be 4.43 bil-;
lion, by 1965 they will be 5.96 bil-;
lion and in 1980 they will have

up a

enable

Selected Investments

in !

industry

2.76 billion barrels.

are now

coast Transmission

charged

Paul SouleV.-P.of

direction

sees:

million barrels

To this end it set

into

opinion, I cannot

my

■

Net liquid hydrocarbon reserves :
will increase at the rate of 350;

all

.

level of Ameri¬

the

petroleum

headed in Canada.

what it

any

the

to

as

the

from

However,

to the United

throughout
the
entire and is
economy and a constantly rising
ber of
standard of living that will have
every

represent
more

and forecast leave:

of the country.

intended

A.

aloof

the economic and industrial future

growth

on

P.

optimism.

which

Royal Commission. A Royal
Commission is a fact-finding body
status, or jeopardize his future.
appointed by the Government and
It is for this reason, and the
usually given wide terms of refer¬
others I mentioned, that I believe
ence. It is made up of experts in
the years ahead mean substantial
the field

its effect

C.

remain

doubt

no

careful look at

a

the

C. P. A. study

so.

Government

*

-

I

Canadian

Vice-President in

1

undue

Canadian Royal Commission

The

:
-

con-

economy

the utmost

is

but perhaps

to

ency

vital part in the growth of the in¬

dustry and will continue to do

with,

Canadian

servative thinking, with the tend-

This
would be
utilized
have been tried out iij nipeg.
various countries, and have failed mainly for the transporation of
liquid propane gas and kindred
miserably.

has

of

forward,

systems

He

Kartzke

views

to Win¬

area

the

charge of exploration and produc- >
tion for Shell
Oil
Company. 11
should point out here that the

erected

from

deal first

of

the C. P. A. Board of Governors.:
Mr.

by Northwest NitroChemicals.
Canadian
Hydrocar¬
source
of such promises.
They bons Ltd. has signified its inten¬
are
evidently not aware of the tion of building a products line
ing

to

submission

Association, presented
by Paul L. Kartzke, Chairman of

fallacy

apparent to everybody. There are
some
who do not question the

like

would

Petroleum

addition, new gas processing
contained in that plants are being built at Jumping
statement, that change is neces¬ Pound, Pincher Creek, and at Redsarily followed by improvement, water. In southeastern Alberta an
is not, unfortunately, immediately
$11 million chomical plant is be¬
The

ignore it.

be

This will not, of
course, be rep¬
on

their

desires

There is

rise in demand for the
of industry, and to a

resented by a

allow

They

their good sense.

tional

judged

the present

opinion,

not

standable

1940, to

ever-increasing

persons

should

credit.

on

system

of sup¬

area

capita productivity since
thd

buying

The

making the projection.

were

over¬

world.

would go upward, and its height
would
be
limited only by the

width of the

while

and

production
since 1946, the

consumption

not

are

by overextending themselves

omy

line

increasing

our

consumers

goods.

present time, they
adversely affect the econ¬

could

may

economy.

many

While

important, in

the world.

country,

stimulant
and

Far East

greatest

consumers

In

the

I

the

route.

will benefit!"

one

extended at the

total

processing capacity. Expenditures
for exploration and
development
and for capital construction will
soar to great heights.
*
:

tional

,

billion

in

And

success¬

But it is

however, another side products
All that has been accomplished,
Government, local, State and to this picture. Mr. and Mrs.
and what remains to be accom¬
American,
particularly
Federal, should avoid excesses in Average
plished in the future, is the result
the taxes it imposes, in the num¬ during the last ten years, have
and end product of big thinking.
ber and character of the rules and become more astute in matters of
Into
this
thinking goes vision,
This is
regulations it makes. There is a politics and economics.
determination, technical skill and
very
real danger in excessively purely my own opinion. I do not a vast amount of
enterprise. For¬
restrictive and ill-advised regula¬ know exactly how to prove it.
tunately
in
Canada
and
the
tory
attempts by governmental But I think I can give you a very United States we have the
sys¬
agencies which would retard and good reason why this is so, assum¬ tems of
government under which
perhaps
cripple
the
growth ing that it is, of ; course.
these qualities have the freedom
process.
Since the end of the Second and
scope for unshackled devel¬
Labor must hold within reason World
War, the standard of living opment.
its
demands
upon
business and of the average American has been
The big thinking, of course, is
industry. It must, if we are to steadily rising. He has become a not confined to
big men and big
advance,
look
more
favorably person of some substance.
He corporations. The smaller inde¬
upon
an
advancing technology owns property. He owns stocks. pendents in Canada have played a

a

income.

and
are.

There is,

posable income for these families^
Today's families have about $269
sonal

that we

Development
Its Importance to America

just this

compete.

cuts unit costs and

the

on

was

to

Canadian Oil

com¬

into becom¬

us

5

page

In

even

forward

look

we

demand for

which

The other

excessive

Any

the

on

self,

were

estimate of passenger car

rive

particular groups, reajize that our
economy
is a complicated and
delicate mechanism, and act
tion

led

ing the progressive

in the line oh the chart.

just that.
Recently we

from

jobs

children,

ful nation

he,

Continued

munities,
in
their
government.
This extremely worthwhile char¬

In the Business Outlook
luxuries

seek improve¬

forever

to

ments—in tneir lives and the lives

Thursday, May 10, 1956

...

cannot

Canada

where

penetrate

our

economi¬

and
therefore that
depend upon imports.

area

The impact of petroleum indus¬

Canada

try development is shown by the

phenomenal growth of
hydrocarbon reserves, in
demand for petroleum products, in

following figures. In 1946 the in¬

liquid

dustry produced 10% of Canadian
demand for crude and products.

pipelining antLimrefining and gas

At

see

the enrl

nf

1955

it ooilld

satisfv

Volume

183

Number 5532

.

.

The Commercial and Financial Chronicle

.

27

(2263)
80%

the

of

demand,

doubled since

which has

Canadian crude will continue to
acceptance in the U. S.

1946.

lina wiaer

supplies

of crude

North

to

be

can

America

denied

easily

as

as

The majors took the view that turning off a tap.
over $400 million >■ the problem of tariffs should be a
Iranian Lessons
the search for and development
matter for consideration and disoil and natural gas. Since 1946, cussion by the Canadian and U. S.
Are we to forget so soon the
lesson learned in Iran?
excess of $iy> billion has been- governments.
• ■
•

The C. P. A.-estimates that 280

-

companies spent
in
of
in

....

spent for exploration and development, $1 billion on refineries and
on

.

Here

fnvMtment

a half billion-dollars>
petrochemical plants and allied

Investment Needs

industries.

what

.

happen in

k

ferred

I

would

like

to

-White

figures.
..

.

A

detailed

,

.

their

round
analysis of

.

.

would

take up

too much of your time.

$4 bml

;

figures..We will,
also deal separately with individual viewpoints on particular phases
of the industry. The key factors
upon which these forecasts were
made were the projected energy
demand
population growth and
gross national product. The companies have converted this and
energy demand
industry may be
supply. Knowing

it

needs

naturally

accurate

estimates

biUi
_

u

v,

i

A-

R

pur^0ses.

e

~

.,

ac

y

.

.

W'th security uppermost

Ber- ;

tinhiiiinn

cPPa

action of an unstable regime
staggering.
minds, let

were

in our :

dissatisfied with your servanother
competitor

because

iXTc

remember that the

us

comes

ice

.

has seen fit to
relationship

But Prove the Facts

skillful handling of complaints
undermine your also must be backed up by facts.
condemning the If a client COmnlains that vou
wuii/cwiyi

by

^e.st sources of oil lie in countries

i

sold to h*m*

having democratic systems of gov- This is not a common occurrence,
ernn?ent and where the govern- hutit does happen even today
ment must periodically wait out- durmg these times when we are
side

the

polls

while

the

voters

supposed to have

a

ethical

more

, pn].

in

"... I do not see, with the enormity of the figures confronting us,
how we can afford to be selective

the

,,

„]r)n.v

0

hundred

that

about the nationality of the dollar
that may become available to us."

ex-

i

seniatives

who

feel

they

can

assure

you

that tens of

exolain

to

that

it

is

the

develnn

,

,

PftSrS?n*iwiv nlJtinJ fh
fpofratially oil of„hlndslght pickingrTeUmm
Sometimes
b

p „

?i

Texas

n

an

nf

o

the 45 00toauare mUes of

th/vast

and

good

unlisted

investor
holds
.....

and

lesser

known

moment analyze

a

all

not

fhat

tft

date

later may change

two

welU

npr

drilled

on

corn-

Many people start out as invest¬
ors
and try to prove you are a

chips." Not being

XTec^
fart

months
pletely.

because all the stocks

recommended

potential 770,-

Secure Oil Sources

from 7 ' We might for

and

.

...

^A

of its

would, rise

better

must

securities and he is told he should

energy

successfUl,

undermine their competitors in "t 'ks wffl advance In price to¬
order to gain accounts. They cause
m whe'nTou wanf tomto
custon)e.r to lose confidence in do so stick to your guns and rey.
his securities by showing him mind' vour customer that what
99(7' they could have done a better job may be the picture today six

Cord

for^energywould^in^Sr^SWKr^'
^artless
tutonaltty.
that

that have not been too

don>t try to be a miracie man and
convince him that you did. It is

and^ftvvLrsofneiehborlvco
,«***£ years* nmghborly co-

its proper perspective
when he told the Comm ssion:,

ploration and production activity

of

have made some recommendations

^

tion

the

future

un-

Some concern was expressed judge
account of its steWard- relationship toward other memthe
oicturethatcounts Take
before the Commission by others ship.
bers of the securities business as-°„®, nenril aU 4ow him the
that toounuch nsh: capital was beCana(Ja stan<Js
besidfi
the well as the public. There are some Xle deck not one o^two cards.
c"?tes Mr. Ash nm that concern United States as the safest source
,^r ASh put that concepa"^„cuflto,m^s repre7 Sometimes it takes time for a sitSlates.,

ex-

follows
of

billion

overall need for $8 to $10
ln the next ten years.

-

what por-

the

of

petroleum
pected
to

$14

minimum for primary development ^
whbe Asb of sheii

other production

tion

thp

f

nf

.V I will, however, point out any •
great differences in forecasts or

other data to establish

between

sees

ration and development, and $3 to

.

submissions

nation

a

imperial's ? President

years.:

nresent-

their estimates in average,

By JOHN DUTTON

the prime example of

was

can
_

Handling Complaints
Revenue fronrrthese .markets, der the thumb of an ambitious
Plus risk capital, must^ be > found despot. Virtually shut down for
to provide the tremendous sums
""
t"hr?e vearl after bein"s taken ovir a
hT ?igher ra.te ™h®n he should have
the
industrv
estimates
will
be
Sf
^5
? taken over a misunderstanding of their prob- been grateful for being able to
„

pipelines'and

Securities Salesman's Corner

did

not

d"" f""

biJSmSSSi
by this time has been hypnotized

J*

h

yo

srasjs
pJut
their

didn>t

i±

and British American'

energ^demand

ton

=32%

between

had

and

1946

7i»n STr ^771^^%^-' landsVand

1954.-It

lE

tained.

'
,
Present potential production is
is,
700,000 barrels per day, with
.

tual production

400,000.
tions

qin„-

.

will

a

ioo nnn

120,000

crude,

add

Pacific

a

Washington refinery

view

ship--:th

ine

Yw with
mai

onnrees-

an average of two wells per
SqUare mije drilled to date, 45,000
square miles in California with 1.2
m uamunua whh 1.^

fnclu^

arp

ininnrx

Western

tt

01

c

at

.

the

cut in-

s

to that total, but that situation has

Hemisnhere

securitv

SUDDiy

as

is'still

of

the

sucj.

such

A. T. & T., General Motors, Standard Oil, and Steel. Then

wells per sQuare mile drilled as

securuy

b® Canada fnd VenezuWa and compared to 770'000 s^uare miles
J2? M^nZ F-fct Venezuela' and of potential oil lands in Western
nf nnwiai nil lan^ in
the Mlddle EastThere is
of course
no
doubt £anada with one well drilled per
"e

North-

may

10

-..Tuprp

slightly to this
barrels daily

west. Present labor difficulties

,

.that there are 220,000 square miles
of potential oil lands in Texas

source.

67,000

asked for the

was

,.

"

barrel" d^ily was requested in the

total.-Some

protects-

on

Alwfo

Alberta

United States. Saskatchewan
ments

or

it'on

averaging
May "nomina-^9?^

Based

for

that with one ^"you that he thinks you
^ l°r each 51 square mlles ln shouldn't have sold out his Whatsis

Also, don't let your customers
; , ■ .
. .
preferred to buy him Whoosis wander off the track. If they are
I think, that these facts are common, and the rest of his list investors show them it is the
rworthy of repeating and say again should be in better grade stocks whole cycle that counts. Ask them
Ahn" worthy of repeating and say
better
that

,

.

that makes safe

aXanada.

these rates of increase main--

saw

inland

51 s(Iuare miles-

Canadian discovery rate

However

on ex-

you

as

know that

pouring

some

while you

someone

poison in

were

if they bought to speculate for
capital gains or for better income
has been and because they^ wanted to in-

your

cup

Off Their

_

crease

their

capital

the

over

longer term. Show them that if
they want to speculate, that is one
thing, investing is another. You

not looking.
.

Get It

,

Chest

a life
can on^ do
by ^ein8 patient
insurance examining doctor han- aad by helping them to under-

Many

years ago

I watched

die a complaint that was unjustified and I've never forgotten the

stand the pitfalls and the obstacles
that are always inherent in trad-

P^orat°ry wells has remained at lesson. This man had been given in£ tor a market turn,
25% or better for some time.
a rated policy after a thorough
Nme times out of ten if you will
Our reserves are increasing in examination and the policy was iet
your
disgruntled
customer
Imperial estimates that export
wou]d
be
augmented, if impressive fashion and are now Quite large, involving a consider- blow off steam, then by asking
production .will reach X75,000 barp0SSjbiej and could by no means 3.8 billion barrels, only 460 million able increase in the premium he questions show him where he has
m I960 and 600,000 by soive California's problem-.
less than in your home state. Pro- would have had to pay if he had done a good job investmentwise,
i ^on^n^vf
producb°n. W?J}H
Certainly, Middle Eastern crude duction has risen from 28.3 mil- received a standard rating. The you wjn find out that he will
be
little bearing

tG'

•

loon

this supply

the overall pic-

on

1

^

.

*

day in 1960

per

is plentiful and available econom-

and 1.4 million 25 years from now.

Choosmg
Shell

1965
1.45

at

;1

for

icaiiy of the 95,000 barrels daily
imp0rfed into California in 1955,
some 6i}000 barrels came from the
-n/ri/i/iio
iroof
Qnw-io+r-o
ona
AiviorMiddle East, Sumatra and other
foreign fields. But plentiful, cheap

projection,

a

potential Canadian pro-

saw

duction

million

....

dady, with

.

,

demand

barrels

,

at

.,

nK

1.05

mil-

1960,

Soo
223

in

beaIfby growth

of the nation

and do not take into

consideration

any

sudden

mal

for

crude.

demand

abnorSuch

a

for r>r*n+inAnfoi
continental

The

man

literally

iU

,

stormed

,

into

,

was

development

^

ig

not

necessarily

secure

that it is not selling it-

assure

,

onG

factor

nerhans the onlv fac-

which could

tor,

and

curtail further
increases in

proven reserves.

As investment analysts in a
great
industrial
center built
around oil, you gentlemen well

sudden and heavy demand is
piaced against it.
Such a period could arise under

of

seVeral sets of circumstances. The

giants

United States could find itself di-

small

rectly involved in

that was entirely unjustified

which he had no understanding.

would become immediate

inu

:

-

know the possibilities for growth
the

You

independent

know

well

which

the

have

beginnings

in

oil

company,

present-day
from

grown

although
likely in the
immediate future. But wars, declared
or
otherwise,
involving
countries from which the U. S. is
this does

not

a war,

seem

,

-

•

years.

the

last

40

Grace Canadian Sees.

As he spluttered and sputtered
the doctor let him go for a while

and when he stopped for breath
he said, "Won't you please sit
down?" As soon as the man did
this you could almost see some
of the steam go out of his boiler,
Then the doctor asked him to tell
everything that was on his mind,
He listened patiently and did not

interrupt even though he was
listening to some statements and
and
tremendous
should war or
remarks that were entirely unfair
some other international upheaval
and erroneous. He made notations
dypr,lve
of supplies outside the
on a pad of every point the dismSu€rTi-.
miS
ere\. v-v drawing supplies, are a different
satisfied man was making, and
The Companies
all bring out jitter
again, and
there
is no
when he finally talked himself
three points which have a domiguarantee whatsoever that such a
a morc congenial frame of
natin? effect on the industry in
situation could pot arise on short Coast refineries much of the pro- mind, the Doctor said, "I've made
Canada. These are potential marnotice.
.•
:
duction which will make up for notes of the points you mention
demand

ing sppiiritips business—let's hope!
securities business—let's hone!

He

talking about something about

in closing I would
remind you of the smaller, wellmanaged, progressive independent
oil companies of Western Canada,
Many of these in the share price
range of $2 to $12 are showing
remarkable
virility
and
will
doubtless
supply to your West

a

on

of course,

are,

frkr

is

f0

'

estimates

cnnrro

Jbe,room and begaia.a harrangue

a figure of sejf short against the period where

mes

-iv

cwnro

secure source

squarely, every effort
must
be
^ade by the petroleum industry

1980, three and

million.

Ihese

anri

and

If the continental concept of defense in time of war is to be faced

requirements of energy from liquid petroleum at more than 760
barrels

lion in 1955.

defense, then it must continue to
find markets. The lack of markets

crude

in-

British American sees Canadian

million

general agent had the chief ex- agree with you. - Also, you can
amining doctor of the company pUf a torpedo into unfair compeIf Canada is to develop its re- come to his office by appointment tition that unfortunately is still
serves of crude, so vital as a safe JP, mee^ the complaining applicant. in evidence in a rapidly improvlion-barrels in 1950 to 128.6 mil-

rn,dp

\1™- million barrels in exnort of
It foresaw a total
183
creasing to 275 million in 1965.
-

upon

marketing policies and
costs. But this is a limited supply

n

430,000 barrels

,

dependent

internal

Thus,

Opens in New York
of Grace Canadian
Inc.,
25
Broadway,
City, to transact a
general brokerage business in CaFormation

Securities,
New York
nadian
r.

i t i

banks,
ers

secu-

for

e s

brok-

and

deal-

ers

an-

nounced.

Officers

of

firm

the

new

are

Irving P.
Presi-

Grace,

dent,

and

,

kets, ^availability

of

risk

capital

and taxation factors.

;

The nations of the Middle East

are
_

Geographically
the

present

located

out

economic, range

large portion of the eastern
ket
.

the

mam

,

of

of
a

mar-

hope for continued
7.

,

-

-

-

-- ---

5^b."^e,Yel #exploration and
duction hes

pro-

finding export marmarkets, as we see, are
in

kets. Those
mairlv

on

the West

states

Midwest.
markets

One
is

? **2? ^

the

and

Coast

the

barrier

10y2

to

cent

place?

of the

northern
these

import

on foreign

crude. But all indications are that




not

a
_

happ|

-7could 1 ask you a few ques"

tions?"

family. Despite

the fact Egypt "Sid
a
cease-fire pact
Nations

the failing local supply.

auspices, it

day later that there
^

_

israei

under
was

entered

United

only

were

one

charges

With First Securities

„S'tS-i"*.1
and

DENVER, Colo.—Allen Berl is

.

President. Mr.
Grace

was

formerly

(Special to the financtal chronicle)

.

George G.
Reiss, Vice-

before

long

the

Manager,

agitated and angry applicant became completely placated. He was

Of-

Iryingr

P. Grace

^

and Director OI w. u. «t-

heretofore

Co" /
ut
I9.^ and previous^tnerene

and counter charges of violations,
There are reports that Egypt's

now

Premier

to 1937. He was the first ChairHamilton Manawm't Adds his rated policy and accept the man of the Canadian Committee
situation.
Before
he
left
he of the Security Traders Associa-

Nasser' is

an

ambitious

seeking to draw under his
leadership the Arab nations, Rus-

man,

sia's influence in the Middle Eastern

sphere is not to be lightly re-/

garded. The fact remains that
without

a

even

conflict, Middle Eastern

affiliated with First Securi-

ties of Denver, 910 Sixteenth St.
.

(Special to the financial chkonicle)
DENVER, Colo.—Jack W. Balos
is now with Hamilton Management Corporation, 445 Grant St.

then in
of

his

a

mood to unravel some
misconceptions about

_

w:ith Hart Smith & Co. from 1930

own

thanked

the

doctor

and

admitted

that another agent had steamed
him up, and he had unfairly accused the company of charging a

tion of New York.

Mr. Reiss also

formerly
associated with
Hart Smith & Co. from 1928 to

was

1956.

The Commercial and Financial Chronicle
*8

...

.

(2264)

■

r-

■

•' *

v

r

.ye^rs securities issue and even trading have felt the same
dead hand. So-called social welfare, legislation has imposed

■

We See It

As

contest."

"no

Such

competition that the Kremlin
masters appear to be planning. This is merely a somewhat
new
form of world politics, and, as always, all great
out of the sort of

hazard

powers

have to be on the alert to protect their interests.

'

all manner of businesses. ■*
Despite all this, man's eternal urge to better his own
condition has worked miracles of production and distribu¬
tion under

enterprise system in its pristine form might well
a struggle for the simple reason that it

(or so-called "sales" to
use
the4 misleading
term em-:
ployed
by the
Department of}
Commerce) had been large, and
between the end of July and the <

a

end of. February,

communist countries. But think what it could do if the

shackles

Duplicity and intrigue aside, the free enterprise sys¬
tem as it exists today has an Achilles heel but the flaw
in its armor is not what is commonly believed. Of course,

orders of manufacturers over de¬

liveries

system only partly entitled to be called free
enterprise. The record of this country in the field of pro¬
duction and trade is the envy of the world, including the

,

Achilles Heel

the free

late
and manufacturers were
increasing their plans for spend-.
ing on plant and equipment. Ever
since August the excess of new
summer,

further burdens upon

faith, however, does not rule all

a

been rising rapidly since the

regulation of the utilities and the railroads, but of later

Continued from first page

struck from its hands and feet! If the

were

we

tween

there

place

tual

give adequate attention to the problems of mili¬

Continued from first page

tary defense, but no one supposes it to be wise in this
treacherous world to neglect the possibility that attacks
will be made with the force of arms. Such modification
of free

is essential would have to be made
the preservation of the fruits of individual initia¬
greater handicaps lie elsewhere.

enterprise

to insure

tive. But
The

as

trouble

basic

is

that

the

so-called free enter¬

prise nations are not, and are no longer willing to be,
really free enterprise nations. To make the matter worse
the so-called underdeveloped countries and areas are will¬
ing neither to be free enterprise or to impose upon them¬
selves the discipline necessary to ordinary civilized busi- >
ness activity. Past exploitation, real or imagined, has led
to a state of mind in many if not most of these countries
which seems to render stability and firm performance ;
under contracts difficult to achieve.
vanced countries,
ward

areas

must

In the so-called ad¬

whence capital for development of back¬
come, would-be investors often if not

usually find interests at home vigorously opposed to any
^hich would permit investors to bring the earn¬
ings of their foreign commitments home. ;

system

the*

decline in the ac-J
of

volume

construction.!

Finally, manufacturers have been*
expanding their plans to spend
on plant and equipment.
In the

lose out in such

did not

awards-—all in

contract

face of a slow

ourselves.

upon

13%, Be¬
September
and
March,
was
a
sensational rise in"

$6.5 billion, or nearly

new

handicaps which

unfilled orders

of manufacturers increased about,

com¬

petition which the Kremlin promises us is to be met by
me so-called free world, then what is most needed is more
attention to the removal of the

Thursday, May 10, 1956

fall

business

1955

of

firms

re-,

spend
plant and equipment at the/

ported that they planned to

Approaching Boom's Peak?

on

,

annual rate of $31.6 billion

in the/

quarter of 1956, In a later,
survey, made in February, 1956,;
since last December or in over¬ ber banks continued more or less enterprises raised their planned
all indexes of wholesale prices or steadily to sell government secu¬ expenditures in the first quarter,
of 1956 to an annual rate of $33,2 in the consumers' price index for rities. About the middle of March
billion.. Furthermore, the Febru-J
more than a year.
came an extraordinarily large de¬
There have been a few major mand for short-term credit (ap¬ ary survey indicated that busi-;
ness concerns expect to spend on?
series that have been moving up¬ parently to meet corporate tax
ward or downward. Government liabilities) which pushed up com¬ plant and equipment in, the sec¬
ond quarter of 1956 at the annual;
outlays for goods and, services mercial, industrial, and agricul¬
rate of $35.3 billion,., and during,
have; been rising
slowly,
but tural loans of the weekly report¬
the second haTf of the year. at:
nonetheless, appreciably, for nine ing banks by $1,257 million in
about the ,same annual .rate,
;
months. Expenditures on services two weeks.
■*
have
been rising more or
less / Money became tighter, and on
/",•
>.
IH ..
>;:V
/ ;
steadily from quarter to quarter, April 12, 11 of the Reserve Banks
fe the County / Planning to Build,
in part because of the slow rise announced
increases in their re¬
More Plant and Equipment Than
in
the prices of < services.
The discount rates. For a short time
It: is Able to Produce?
quarterly record of expenditures there was virtually no bond mar¬
f4 Recent ; events in,/ the money
for services now ; goes back 69
ket, but trading was soon re-*:
quarters, to the beginning of 1939. established (apparently with the inarket coriipel us to ask whether;
the country ;is" planning to build
Not once in all of this. 17-year
help of. some purchases by the
more plant and; equipment: than;
period has there been, a quarter- Treasury)" at higher yields.
One
it -isTriAe/ tp/'finance.. Let us ask
to-quarter drop' in expenditures syndicate
dissolved with " more
on
service,
additional:
No other economic than three-fourths of the issud first,- however, ' two
been

first

accept losses in order to sell is¬
sues.
The weekly reporting mem¬

virtually no change in em¬
ployment or in personal income

.

.

<

!

.

.

If the non-communist world

were

one

free enterprise

community, there would, of course, be no tariff walls or
series
has shown such an
un¬
unsold and a few issues Were Questions about the plans of busi-;
arbitrary restrictions of-any sort to prevent the ready flow ' broken rise,
m "/♦,
..
:
withdrawn,/, postponed, or, tern--: ness to* buy plant-and jequipment:
of goods across national borders. There would be no pub-'
Outlays for producers' durable porariiy reduced in size: The rise —are /these /plans too, l^tge for.
the. capacity' of the country ,to
licly imposed discrimination against or specially favored equipment have been rising fairly in the yields on new issues is
steadily even since the first quar^ indicated by the sale late in April produce:: capital goods, and are
goods any where in the world. The most efficient or the
ter of 1955, but since the third
of $50 million State of Ohio serial \ they, large/enough to, provide a;
most favorably located producers, let us say, of textiles
quarter of last year outlays on bonds to finance the construction satisfactory level of employment?,
would supply the free world with this type of good. He
construction have been dropping,
of highways-at a cost of 3.0932%. ,; 4 Non-airiCultural. eriterprises
with the/ net result, as I have Last
who could make and ship automobiles, to meet, popular
July, an earlier installment plan to ; spend about 32% more
mentioned, that total expendi¬ of $52 million of the same bonds on plant and jequipment in 1956
taste most inexpensively would have this trade throughtures on fixed investment have had sold to
yield 2.308%. The than, they spent in 1555, This is
cut the free world to themselves. Groups, whether domes¬
changed very little during the last backlog, of issues for which no:, about 12% more than was spent
tic or foreign, capable of supplying transportation least
nine months.
The drop in the
marketing date has been set was; in the last quarter, of 1955. It is
outlays,, on
total
construction, reported large — in excess of
not known to what extent this
expensively would perform that service for everyone.
a/
however, since the third quarter billion dollars.
represents /an * increase', in
•" '// rise
There would be no restrictions on the movement of funds,
has been due entirely to the drop
Why should such new tightness/ prices,.and to. what extent an in-;
whether investment or current-, .from one part of the free
in the outlays oh residential con¬
in the capital arid credit markets / crease ;in the'-.physical "volume- of
world to another. Law and order would prevail and the
struction. Commercial and indussuddenly develop after produc-J/ goods purchased. It probably rep¬
trial construction has been slowly
resents ' /mainly; /an increase
in
rights of property respected.
tion had not been, expanding for/
increasing;. The volume* of con*
about six months? And what does- physical'volumfe.; The annual rate
But where in all the world do all these conditions
sumer
credit
(after adjustment
of ' expenditures
on; plant
and
thistightness; portend for the1
now exist T To
be Sure law and order prevail in most,, for seasonal) continues tor dse} immediate future of. business? Is- equipmentr:is % expected to .bereached in the /Second, .quarter;
countries. In many, if not most, a certain respect for. though at a diminishing rate. the
country planning to builds
New
extensions
of
installment
The Country's Capacity to produce
more
plant arid equipment than;
property rights exists •— but it is unfortunately quite
credit
(which make up about
industrial plant and equipment
it is able to finance? -Is it going
frequently more honored in the breach than in the
three-fourths
of
all
consumer
Can only be .roughly estimated;
•

-

■

.

•

,

j

(

-

.observance.- But most serious of all,

international relations

at least

so

far

as

is the fact that ultranationalism. has developed to the point in some countries at least
where imports are tolerated
only where they ate virtually
ihdispensable. Restrictions of imports occur not only in
go,

those countries like Britain which is under the
necessity
of

paying for large quantities of goods made abroad, but

in other countries like the United States where the burden
of imports is appreciable
only on those who feel competi¬
tion from more efficient or at all events more successful

producers.. And when such conditions restrict the flow
investment funds to needy areas the

notwithstanding them by

popular remedy of

means

have been moving rather

horizontally
This
are

that

means

well

of public funds

new

August.

extensions

above

a year ago.
Re¬
installment indebt¬

of

payments

edness, however, have risen even
than
extensions, thereby
bringing about a drop in the rate

more

of

total

of

increase

consumer

credit.
II

Developments in

the

Money

Market
In

view

fiorizonal

of

the

long-Continued
of
total

movement

since

markets

middle

the

of

Not Free

And then at home,

tries

is

Enterprise

none

of the non-communist

coun¬

longer really

free enterprise. Take our own
country, for example. We still sing of the land of the free,,
but economically
speaking freedom certainly does not

.mean

what it used to

mean

ought now to mean. When
interpose its might to thwart the plans of
entrepreneurs, taxes so heavy as to cripple operations
or

law does not

often

are

encountered.

These

taxes

hardly more
operous than the system of collection
imposed upon busi¬
ness. The multitude of
regulations require—or at least
bppose - record keeping and other costly reports. And
of all is the
interjection of government into-the
private affairs of the citizens. We have long, had such




are

February is extraordinarily in¬
teresting. Between December and
the middle of February, capital
and credit gradually became
slightly easier,, confirming gen¬
eral

that

expectations

money

would be somewhat less scarce in
1956

than

it

had

been

in

1955.

then about the middle of Febru¬
ary

term

ceed

change occurred.
Longbond offerings began to ex¬

a

the

lenders,

demand.

asked

Commitments

to

for

to be necessary

through monetary^
policy to force industry to curb
its plans for adding, to plant and
equipment? If curbs on capital
expenditures are necessary, will
they force a drop in total product
tion and employment?
The sudden change in the capi¬

depends partly on the extent
productive capacity
of heavy industry is required for
defense / goods, partly upon
the
volume
of residential - building,
It

to which, the

.

and partly upon

the scale of op¬

erations in the durable consumer
tal and credit markets in March goods industries.
In the last quarter of 1955 most
and April seems to be attribu¬
table to several influences.
To branches of the capital goods in¬
were
operating at ca¬
some extent, if reflects the fact dustries
throughout 1955 the country pacity—in spite of some shortage
meeting part of the demand of supplies and labor, aggravated
for money by using up the slack in part by the large output, of
in
the
financial
system.
The automobiles. Much of the planned
banking system started the year increases in outlays on plant and
that
was

physical production and of prices,
the behavior of the capital and
credit

governmental fiat.

since

ever

of

the day is not to remove the
barriers, but to force the flow
of goods
and

credit)

Would-be

make
1957

or

large
even

,

with considerable "free"

reserves equipment
are intended to
en¬
disappear until the large the capacity of the capital
middle of the summer.
In addi¬ goods industries—though the gains
tion,. temporary resources were in capacity can be achieved only
provided by the accumulations of gradually. But many of the ex¬
business concerns for payment of penditures on plant and equip¬
taxes in March. The sudden dis¬ ment made in the latter part of
appearance of these resources was 1955 will be raising productive

which did r.ot

^

not

completely offset

ury

fiscal operations.

To

even

an

by

Treas¬

greater extent the

by

capacity
of 1956.

will

the

second

quarter

Some gains in efficiency

also

be

achieved

by

im^

change in the capital markets re¬ provements in methods, by better
flects
a
growing
demand
for training of supervisors and em¬
funds that began late in the sum¬ ployees, and by better manage¬
ment in general. But, in view of
mer and that apparently was not
clearly foreseen.
Although the the small amount of slack in the

1958, became unwilling to. accept physical
volume of production capital goods industries in the
existing interest /rates and, in .had, been moving horizontally for last quarter/of 1955, I do .riot be¬
some
instances, were* forced to jover six /months, new Orders and lieve that a 12% .rise in-physical
.

turn down" business. Underwriters

in some instances

were

unfilled

forced to and

orders of

manufacturers output

building contract awards had

r»f

of-capital goods, exclusive

rocirtontial

hnilriinff

-

ran

hp

Number ,5532..

183

Volume

The. Commercial and Financial Chronicle

..

.*'•

Furthermore, these postponements rising expenditures in all ,: the
do not,, necessarily -meana delay #principal < categories except, in©f* 1956; -Reports rc£ construction ing ;by v the ^.governments
met- in the., actual - expenditure.,," of ventories—government spending,
a^^eriorms
oL this. $70 billion de-.money; Several months will be, outlays for plant and equipment,
being delayed for lack of :Mrdc- tnand for capita! and credit. It required for the present tightness spending on residential building,
tual;; shapes,^plates,- and; other was necessary, for the private in capital. markets to make it- and personal consumption spendforms, of steelr^tte mo:
banking;^stem;to provide about : self felt, and it is possible that the ing. But it should be remembered
rare
' '
>"<**?■
^1^4.5 billion in net increase in effects may be greater than' were that this expansion of the econi The ' conclusion seems td be oans and investments. The coun-.intended especially inthe fieldiof omy will require somewhat more
that it ex^nditures for plant and tr^s f°?ey SUPIJyi mcreasedby residential building
But m that than the usual seasonal growth in
achieved between the last quarter meet corporate income tax liabili-.
pf•
'aiid «-tbe> secondties, and a small amount of sayr;

will^Joe

it

seiond quarter

.

of

somewhat

is

1956

to5

beSd

T

Waller

the

is being limited by-. the numberof engineers graduated by the
engineering Schools each year.

This number is going up and ^ilicontinue to rise in response to

^ bank credit^nd hence a relaxing t*e terrific demand, Thus,, we:

expeC

'

•

the P^ent tight-credit policy may be sure that five or ten years

if business concerns carry out of the Federal Reserve System.
«{"* of the country and some- their plans for spending on plant - : : : ' -••• -'VI.-. '
;
What, ?0re ''I1..0,6 centersof and equipment and if government

qricS^ toddenSlly the quarterSorterincrease exrechS be^reTthe "ret and seSquar,
ters

ifmoney

erased about A% in the smaller

of,.higher

because

'

tur™ve

™L™.e aboJf ot f„

levels,

reach the- planned

to

are

.

-

-

,•

a"d fl"anCf' '

J"

fin^^n0

of the ^5f/)1fnd^aild
the^
co"se

the

Let

today. /

conclude these remarks
_

me

from now American enterprises
wUI be able to plan considerably.

larger outlays on plant and equip-;
ment than they are able to plan

Some Concluding Observations

.continues to creep up-

°nly rou^h estimates can be ward, it is virtually certain that

more

•

XnlrfdvP

quarter-to-quarter in- J^^e
Pvn^nH WTho
with several comments of a gencrease for the two previous quardemand/of
are subeffect of
outlays fOT
fra! nat"e s"gpsted
°bservaters.
But
I see Ino/reason-for
J°L:a*£xn«J iaJ«or
tl0n of the behavior of business
doubting the ability oflhe repitai
duIing recent
goods industries in the year1956 as if the demand wiU be about to
be ; offset completely
under
T° begin with, I think that we
as a
whole to supply .the .goods
$?1 5 bmlo^ a Iittle more than a present conditions by a drop in must revise upward our ideas of
the
amount
of
that enteronses now plan to buy.
unemployment
Million iarger than last year. This outlays for inventories—through a
that can be considered tolerable,
; Are industry's plans for buy- estimate
assumes
no
change in slower rate of inventory accumuI have been of the view that an
ing plant and . equipment large the price level and it also assumes lation is to be expected.
annual monthly average in excess
enough to provide a satisfactory that the non-agricultural business
The present outlook
is for a -IT™I~"7.
level of employment—or are they concerns are able to increase their continuation of the
present hori- of two,™1111011 or somewhat less
too large?
Again, the _answer.de- expenditures on plant and equip- zontal movement of business until muat , be
as undu y
pends upon the behavior of other, ment by the amount they plan, about the beginning of the fourth wasteful.
This figure should
parts of the economy-upon: the namely 22% over 2955, that out- quarter of the year. Retail trade Probably * raised to about 2 5
spending plans pf ,governments,, lays on housing will be the same will be limited for a few months ^"'on
It is significant that the
upon
the, scale, of residential ;.in 1956 as a whole as they were raore by the high rate of repaydemand tor. labor during
building, upon the Impolicies'of .in 1955, that consumer credit will ment of short-term consumer inyear
.more
business iwith-respect to inven- expand by $2.0 billion instead.of debtedness.
Automobile
produc- effect on the size of. the .labor
tories, land: upon-the proportion over $6 billion as last year,,and tton. during the. second quarter fore« than on the volume of unr.
than

Pl^t

liger

mentExpenditures is^nof hkeE

months.

_

,

It is very doubtful whether, we

shall be able to increase our savings fast

.

has had far

<be rlast

.

enough to finance the

profittabto irrrestment plans that
«u,h "Pid y growing staff ,:of.
able to turn out,
problem confronting the
economy is

exactly the opposite
that envisaged by. Keynes and
*"e. ?9"°°L:
economic stagnationists

The nrohlom i« nnt hnw

outlets

for

savings-

our

outlets tor our'

regarded^

ofincomes if

i

g

meet

t

the

.

an

virtu"appears

outmoded
been

a

fiecting

to have

premature conclusion rehis- lack: of familiarity

modern

~

ment dropped by 342,000, or about
virtually no change in inventories 10
but the size of the labor
of new cars. This means that pro- force increased by 2,258^000 —
tory ' level of employment will nature of the estimate.. The cities duction minus exports was almost more than three times the normal
require a gain of about $13 bil- and states may make somewhat the same as domestic sales. I be- amount.^ Indeed, the population
)ion in the annuai;raterof;Gro$s larger demands^on^ the capital,neve that the seasonal increase in of 14 .years ;of age or more who
"x/brnAi.lra+ tViie
IVion IViov
niitcir)p
tho
1 oKnr
Inrnh
t

for'

demands

^vmgs to meet the demands for
gr^fng staffs of engiheeEs
|3
that thrift is

whtol^,indwi^ala that the demands of the cities and. will probably be, 190,000 toquarter. 1955,.- and- March, .1956, -unemployr. with ^e potentialities, of
150,000
less- than in the first
technology
E

spend^ on cpnsumption., ;!- shalt- states on the capital markets are
not discuss fhese vajrious matters;, the same, in 1956 as they were last
but simply state some cphclu^iops. year. Merely to recite these asThe maintenance of a s^tislac-: ^sumptions
indicates the rough

'f

-"j

and equipment depends*
upon the size of their, engineering '*
.'staffs, Enterprises are desperately- ,
trying to increase their engineer-::
ing staffs. Their ability to do so

plant

.

SSS

29

(2265)

0uring the first quarter there was

;

;

,

:

:

.

.

.

.

;

.

nJ-t—'

1

imnc

:

-3

U

—

'

uiorn

3

plans to spend 22% more on plant ter were about 11% less than last fall, unemployment did not drop
^nd,43
substantial increases ami equipment; residential build-, year, new extensions of install- to as low as 2.1 million.
v. ?Mat
in inventories, and i expect onl^; ing may run higher or lower than .ment credit for the. purchase ofit is true that many people who
tfnef1
amodest rise in residential build- exPected.
v
,
'■
:
cars were running around 15% kre laid-off .quickly"'acquire other Mnh^k^nwAr
ing over the rate of the last quar- V What of the supply of savings above last year. This means that jobs — unless they decided to SS hnnHQ%5/??^
r?,fp
ter of 1955.« Until fairly late in
and credit? Personal savings were the car sales are being maintained leave the labor force. But the fact m/v
iq? Thi tnH
1956, individuals will probably abnormally low during the first by ; finding
that tlie growing demand for priced at 101 377% and accrued
be spending only about the same/nine .months
of 1955. Hence a persons less able to buy new cars labor during the last year had far interest to vie d annrnximatelv
proportion of personal incomes small gain in personal savings in than a year ago. installment crecm m0re effect in drawing people 9 ^5% tn maturitv
Installment credit more
i
£
wa?
rer 1955
'
as they were spending in the last
1956 over 1955 is in prospect. The is being used in,the purchase of jnt0 the labor force than in pull- awarded to the eroun at comnetiis in "
g surplus in tl
quarter of 1955. All of this means growing surplus in the cash budg- a larger proportion of new cars jng them out of unemployment tive sale Mav 8 on its bid of
Sdie ma* 0 on lls Dia 01
that some rise either in govern- et
of the Federal Government than a year ago, the average in- - ---* mean ai—l a ---J"ve 639 which named the interest
Government tnan a year ago, xne average in- must
that - considerable 100
ment spending or in outlays on promises an important addition to stallment note is
and the minority of the unemployed have rate.
plant and equipment by business savings of perhaps $5 billion. On duration is longer. The strong rather low employability—either
Prnreed*
th* c*ia
will be needed to raise the Gross
the other hand, the temporary competition to _sell cars will tend they ^re highly restricted in their jmblipif hv thA htfiitvff
National
Product by about $13 help that came last year from the to keep credit terms easy, but the mobility or they are reluctant to
of
nnn on^nf
I do not expect busi-

,ter of 1956.
riess

Mil

to make

.

wp™

-

billion
of

^1—

^

-

a

1955

looks

as

the end

between

year

and

1956.

of

end

the

It

if the increases in spend-

government and by
niuusLiy,
piua
me
gam
m
pciindustry, plus the gain in personal incomes generated by these
ing

the

by

increases, and plus the increases
in
less
in waws that more or less match
wages that more or
match
gains
in
productivity will • be
roughly sufficient to provide the
increase

needed
The

total

too much

effect
or

a

:

.

the

be

little

a

but

dlscrenancv

will

^screpancy will

,

IV /

.

Plant-and
Plant* and

:

.

Build

Equipment
Equipment-.<

Than It Is Able to Finance?

The

tures of business contribute to the

"right" rate of physical expansion
that thpv nAithpr rpfnrd

y

thus

(and

expansion

nhvsiral

xi

j

are

defla-

inflationary). Let us now examine

problem of financing the in-

crease
crease

industrial

in
in

nlant

industrial^ plant and
_

equipment. This problem is,
only a part of the broader
problem of meeting the economy's
demands for capital and credit.
Hence
our
attention
must
be

a

deposits and by some expansion

!n commercial bank credit.. The

whichy$3.2

the

b»

9701

oKmit

acteristics of the unemployed is
badly needed, but
present
hadlv noeded. hut. our nrospnt

lar^e as last year- Thls has lm"

n^J?ynt
i0an^ dup Tune

for construction.

1

'

'1Q5fi

Thl
The

inrnrrpd

construction

of the company

program

subsidiaries

and its

required

$52,457,000
in 1955 and is expected to require

}
*7 information suggests that we £bout $64,000,000 in 1956. To pro• should
revise upward our lUvdS vide for the current year's needs
i<
automobile fra" Gf the amount of unemnlovn
pro- of the amount of unemployment the
company may find it necessary
duction will be roughly offset by that we regard as tolerable.
to arrange for about $30,000,000 of
trirj

f nv

a

4 '

An

A

The

drop

in

asomeC^hat

Experience during the present

-

J° TlaSmaS ment a"d als0 by a somewhat boonf

fredlt ma.y

more

-

than

seasonal increase in

-

tge vie^

reenforces
.

If

that

o

Plications for Federal Reserve residential construction. This last
policy' Last year no increase was is indicated by the recent rise in ufjh er^Wment t^

inl!
he

additional

bank

financing,

loans.

period

including

During the five-year

1951-1955

gross

property

additions

were about $326,746,000,
$270,804,000 was for elec¬
tric plant, $52,620,000 for gas plant

of which

hlgl? employment to be accomPa™ed;by slowly rising prices.
P"ly. thf, mor9 or less fortuitous and $3,322,000 for common plant.
fa/ ln Jj*1® Pilcesrt
prodThe company's electric service
ban,ks
,make. .tbe
slow rise in production. It is true
b?^#0Y®rrln!?fJ
territory in New York State, with
,hab
wjiljje required^frorn^ them ,ba( there wiU probably be a drop
the Endex^'of ^^"^tion'oVabouV^M^OOO irieludes Buffalo, Syracuse, Albany,
permitted in the reserves of the contract awards
.
'
commercial banks. This year some
By ^bout the last quarter of
increase
in
reserves
will be the year the horizontal movement
needed to permit the commercial of business will give way to a

STcEd

is

if the Reserve system

Hence,

not to throttle the growth of the
ec0nomy, a major modification in

aupoAlcy

f

u

will

nolicv

Reserve

■

71"

needed

be

De

ne ,29

before the end of.the year.

expansion

of

business

t^ fn

partkularly

This

will

'

y

broader problem,

1..

J

bv

can a c

f-

shortage'of

i t

lu

produc-

ofck

will

v

up

ii

+

Spending by the government will
Pnntin,,p

tn

rise

and

residential

—1

XI.

?X

3

1

X

1

I0JmG211® saie® ^on a

will

basis)

improve

somewhat with the introduction

products,
•

held back

£® d

adjusted

the eren

«ota«e

that^gher toto
-

in the rate at wWch inVent°rieS
output of capftal goods now being

wholesale
what

in

prices

tools

possess

costs

rise

does

in
the

1955.
And
government

to prevent a rise in labor

from

Utica, Schenectady, Niagara Falls
and Troy, 22 other cities and 616
towns and

villages.

producing an increase
price level of non-farm
goods in 1956? It seems self-evi-

distributes natural

ing prices. And yet many people
reluctant to face this conclu¬

The company
in central,

269,000.

in

the

northern
For the

and

gas

eastern

New

York.

12 months ended Feb. 29,

credit

Federal

Ce

The

Wl11 the Present Horizontal Movement of Business Be Followed
Last year the country financed
Expansion or Contraction?
gross
private
investment of
Many people believe that the
on

,„oro

^edirmav^ee^T^b^almosfas ^117

and

course,

focused

d

a

.sued in financing capital expendi-

/_

^^^i

mcc

above, discussion assumes

that the policies and niethods pur-

the

all, it looks as if the capital and and dealers must wo»
vt—
v •""VAcd"
iv/r^^v,
credit needs of-the country, will inventories: ofocars - W
Jjave to be met m 1956 as in 1955 end of Ma c ,
P? s$tye.Jncr'%a&i iP''?
i ^
m

.

Planniiur'ta

Country

More
Mere

production.

little too small

serious.

■

Is

in>

mav

event the

"1;my
not be
r

•

accumulation of^ resources to meet growing t -ti,ghtn^s 1ac(luire new skills or they are
the rising tax liability of enter- likely toiorce some stiffening of lacking in reliability or skill.
Prlsos will be lacking in 1956. All terms.
Furthermore, co p
More information about the char¬

I

do

of 1#57 model, T a.
this

not

expect

improvement
to
be
nounced,
because
people
been
buying
automobiles

pro¬

have
at

a

high rate for over a year and a
half. Personal consumption ex-

penditures
effects of
4 I.

be feeling the
wage increases and

will

Jt./kli AM

lV\n

are

and
insist that by some
means (never specified) the price
level
can
be kept from
rising.

sion,

Fortunately,

the

danger

that

than

Formed in

a

rise in prices will be¬
a
galloping rise is far less
is commonly supposed.

creeping
come

Walnut Securities Corp.

Finally, it looks as if American

Finally, it looks as if American

a?od:,W'.t,h EnEnEEwvEarPpr exnenrffh.res

Philadelphia

PHILADELPHIA,

Pa.—Walnut

Securities Corp. has been formed
with offices at 1512 Walnut Street
rj£fMcers

are

President;

MaVer M. Freed^nd

PaulV

Minkoff. .Sec-

the introduction of the 1957 au- .considerably larger expenditures "
Knhpti W
crease
in
tomobiles, there will probably be on plant and equipment than our retary-Treasurer and Robert W.
increases in state and local securi- temporary recession through in- at least a moderate drop in the "economy
can finance without Crossant, Vice - President.
Mr.
ties of about $5 billion, and an ducing or even forcing substantial rate
of personal saving. Many great increases in the use of sav- Crossant was formerly with- HisA

corporate

1

133 !

billion
physical

savings,

-

_

ininventories),

was

an

uepieciatiuii

funds, funds being accumulated to




.

.

—

-

_

going on in the capital market is
bound
to produce
at least a

mcnis

ui

new

issues

nave

ue-

unes.

auus,

mc

ec"ciai

uuuuun.

curred, but not on a large scale, for the last quarter is for slowly

wav

concerns to

j

—

plan expenditures on Co. and White, Weld & Co.

30

The Commercial and Financial Chronicle

(2266)

Continued from page

Growth Prospects of TV and
The Role of Advertising

record

set

World War

in

50 million sets since TV

which I think all of

expect¬

us are

with

everyone

electrical

in his home to

own

a

Service
We

TV set.

have

ing this year.

already rushed sample per¬
our plants in Canada,
Italy, Mexico, and Australia, and
plan to mass produce them over¬
sonal sets to

Outlook

1956

1956 TV sales
the first quarter.

Our optimism for

is

not based

on

Television, along with automo¬
and housing, lagged behind

biles
the

first

the

fact

whole

the

that

set

a

despite

'55,

of

quarter

economy

high

new

as

a

record.

Television production for the three
was off 16%.
Sales at re¬

months

tail, however,
duced

off only 10%

were

have

inventories

and

been

seas

rapidly

as

Weighing all the elements,
believe that

ascribe

minimum

a

of

will be sold this year. If the pro¬

motion of color does not
much

holding

record of

back,

last

year's

and one-half mil¬

seven

lion units may be equalled.

decline in television to two prin¬

color itself?
of

There is

opinion

The

do not

wide range

a

important thing about the

expect the situation to
become any more restrictive.
>
Despite color and credit almost

market

2,000,000

Black

and

like

mushroom.

TV

sets

sold

were

in

the first three months of this year.
Sets

for

develop in
a

1950,
New Personal

homes.

color

is

that

it

will

gradual, orderly

a

way.

white

TV

sprang up
From 1946 to

period of only five

a

annual

sales

years,

from

soared

6,000

brief

a

review

ly.

I

won't

time

take

For 1956

we

to

than

calls

these

now

current

five

for
and

six

also

foresee

to

Now

what of

omists

appli¬
10% larger

the

than

future

War

it

much

power

America

the

as

have

prior

to

is

was

know

an

of

with

greater

a

First, there are the
existing homes, only
centage

of

today

which

kitchen.

kitchen appliances will

be

The

industries

ture.

research, the competitive

does

built

a

dimension, but the addition

new

Only eight
years ago a TV receiver of similar
screen
size, whose performance

comes

did

barrier to

not

to today's
standards, cost upwards of $400.
measure

up

cost

at

considerable

factor

is

still

a mass

This

cost.

the

principal

market for color.

In June Admiral will introduce

All

units

will

be

built

in

as
part of the original kitchen
plan to effect the greatest saving
of space and the most efficient
organization of the work units to

the

save

the

in

homemaker

This trend is

steps,

better

time

homes

be

coming from

printed

automation,
small

so

tured

circuitry and
TV set so light and

a

could

at

not

be

price.

any

manufac¬

The

use

of

printed circuitry eliminates many
yards of wiring and hundreds of
bulky hand soldered connections,

enabling
set

to fit the parts in this

us

with

the

precision that

same

the

parts of

are

assembled.

!

fine

a

Swiss

watch

These personal TV sets open up

entirely new and vast market.
They are as revolutionary as TV
first

10

was

years

time, the

have
sets.

not

average

but

one,

There will be

receiver for

family

two

room.

have

her

•

three

or

large

a

can

screen

family viewing in the

living

kitchen

For the

ago.

The

housewife will

personal
set
where so many

in

the

of

her

hours are spent. The parents, and
possibly the youngsters, will have

personal TV in their bedrooms.
Television at last is on its
way to
becoming as accessible and con¬
venient in the average home as
radio has been for

so

many years.

-

Personal portables will become
available on a volume basis dur¬

ing the

summer.

By August

our

company alone will have produc¬
tive capacity to build

upwards of

5,000 a day. We expect the indus¬
try to manufacture one and a half
to

two

million

of

these

sets

by

the end of this year.

Foreign Demand

countries, coupled with the low
income, makes television
a luxury that ean be
afforded by
average

only the wealthiest families. Ex¬
cept in the United States, Canada
and

England, TV sales have barely

scratched

the surface.

duction

of

ceiver

will

the

new

enable

The intro¬

personal

re¬

practically




21-inch

formed

in

the

The

models starting at $500. Installa¬
tion and a one-year service con¬

which

tract will add

enough

new

approximately $100.

impact
has

World

since

Although this will be 25% below

go

the average price of

audience.

into

of

great

today's color
sets, it will still be almost triple
the cost of a high quality 21-inch

between

black

has

white

cause

in

cost

receiver.

The

for this great dif¬
is that the color

reduced

on

miral has been

the

building color sets

than three years.

more

Based

this manufacturing experience

on

and

very

extensive

research,

we

convinced that color sets will

are

always

cost

considerably

more

than black and white receivers.

families

1930's.

birth

rate

being

are

during

is about

major significance

the

to

industry until 1957

at

the

earliest.

rush

a

ceivers

to

for

and

third

keep

Then, beginning in
early 1960's, the rate of fam¬
ily formations will zoom, prob¬
ably to something like double

recent

a

convention

of

That

is

based

the

on

business will remain high. Of this
total, we expect large screen sets
to

account

personal
half

for five

sets

million

for

units

million

four
and

units,

and

these

the
year

estimates

industry will have
in

unit

correct,

prove

volume

by

a

record

wide

margin and dollar sales will about

industries' future.

Auto¬

living.

is

turn

reflected

goods

moving

mit.

forecast

profits
of

very

retailing

and
and

for

will

dependent

more

volume

satisfactory

time progresses.

as

There

a

that manufacturing,

more

large

it is

is

nothing

And

Ever

course..

since

more

will

automatic dish washers.

have

Automa¬

and dryers, and electric cook¬

Electronic

this,

indus¬

the

ter

cook

a

Cooking

frozen roast in

of minutes

and

heat

a

a

production, profits have be¬
increasingly dependent upon

large turnover.
-

Since I have said
research and
you

might

Admiral

mat¬

baby's

industry faces will be to have its
production and distribution ca¬
pacity large enough to serve the

My
been

come

own

dence

is

all

with

around

our

own

was

which

steadily

two

which

new

are

a

efforts in these

has

portable radio which

a

many, many

opment
no

in

our

has

since

months in devel¬
lab.

research

electronic tubes.

It

is

It
en¬

tirely transistorized. The result is
it

will

1,000 hours

operate
on

from

700

to

six standard flash¬

light cells like this.

The

cost

the

less

than

six

Each

us.

eyes,

of
see

can

people have more goods,
leisure, better medical care,

more

more

better opportunities for more ed¬

ucation, better everything. I see
nothing in the future to halt this
trend, which is so highly signifi¬
cant to all industry and especially
to the TV and appliance indus¬
tries.

Advertising Budget
I

I

said

earlier

that

I

>

expected

the investment of American busi¬
in

ness

increase

advertising to continue to
considerably faster than

the total volume of business.

capacity

our

.progresses

is

We

to

can

have

produce

be

We

country that
as

time

almost unlim¬

also

learned

that

saturation point

a

myth.

a

the

We have proved that
people have the
they want.
At the same

more

more

American

growing

business

is

showing

a

im¬
as one of
the prime forces which creates the
original spark of desire, which
molds tastes and wants, and which
of
portance of advertising
awareness

the

brings prospective buyers into the
retail

stores

on

the

main

streets

of America.

Here is

batteries

is

of
a

dollar.

This

broadened

demand

the

here

is

something even
more revolutionary.
I have in my
hand a sunpower pak. It converts

recognition

creating

power

of
of

advertising was dramatically dem¬
onstrated during the business re¬
cession of 1953-1954 when, for the
first time,

ness
we

advertising volume in¬
the general busi¬
The result, as

while

creased

level declined.

all

know,

families

Sunpower Radio
Now

company,

our

see

preview.

six

hence.
expanding

to

products

direct result of

that

bottle in seconds.

market that is bound to

much about

automation, thought

like

families

more

time, top management throughout
so

areas.
They are not yet in the
hands of distributors and dealers,
so
we'll just
call this a sneak

Peering somewhat further into
the future, we^will come into the
era
of high frequency electronic
cooking. Using this method, one
can

come

and

reaching the middle income
bracket, where they have the nec¬
essary
buying power.
The evi¬

have learned in this

in

new

the products all

are

are

consu¬

I think

wholesaling,
on

into

These

families aspire to own as quickly
as their economic status will per¬

mass

bracket

In these indus¬

have the products which
the American standard of

we

In five to ten years freezers will
be as standard in our homes as

years
a

;

the old idea of

One of the major problems our
re¬

ceivers for one-half million units.
If

in

one-

color

enough to
impression
we are very opti¬
mistic for the TV and appliance

creasing our mechanization. With
each step forward in mechanized

income

said

strong

ited.

the

as¬

have

the

trial revolution, we have been in¬

ers

sumption that the general level of

I

you

rating
as a household
necessity that the
electric refrigerator has today.

tic laundry equipment, both wash¬

American Bankers
Association, we
estimated 1957 sales at ten million

This

become

same

ing will be almost universal.

At

would

I

that

in pressure in the marketplace to

the

set

use.

is

a

safe

re¬

buy personal

second

exerts

mers' hands.

lowest

and

here

in

counters

years.

see

strong upsurge in the sales
family size monochrome sets

Alto, Calif.,
headquarters in Chicago.
believe that anything is
significant to our country's

think

that

either

four

refrigerators are now. The vast
majority of families in all but the

of

I

us,

level.

bot¬

We
believe the
psychological
adjustment to color will be com¬
pleted this year and that 1957 will
a

observation

make

sub¬

a

heavy pressure to
maintain production to carry the
capital load at the manufacturing

the

rock

The

to

average
will
probably be exceeded in the next

the

rapid trend toward

rising costs or
actually brings about cost reduc¬
tion. Second, since it tends stead¬
ily to increased fixed investment,

the

will have

years

discussion

and

homes

recent

lengthy

a

tom

on

govern¬

advanced

not

give

it

family formations indicate that
level

in

discussed

This is

like

Census Bureau projections

1955

the

for

itself.

this

know,

our

for

that at Admiral

mation increases competitive pres¬
sure in two ways.
First, of course,

Color has arrived, as I said be¬ present levels. By that time,
too,
fore, and we will see a steadily some of the electrical appliances
growing business in it. But the which now are in relatively few
total volume of color business will
not become of

been

annually, which is a com-,
paratively low number due to the it

picture tube is extremely complex
and costly to manufacture.
Ad¬
for

as you

however, that

you,

expanded

our

do

raise

much

ject

ever

eight and nine hundred
new

the

fruits of research

to

formed

and

principal

thousand

Currently,

are

ics, which is involved in every¬
thing from warning systems to
guided missiles and interplane¬
tary satellites.

invest

increasingly

Automation

been

before

we

laboratories

tries

Oneof

I don't need to

detail

re¬
you

"

rate,

booming
II, has

War

of
tell

defense than progress in electron¬

This

doesn't

research

is

the

tell

can

more

which

greater automation.

birth

our

been

I

consumers, but
of the company

that

in

could

and

re¬

hazardous.

*

future.

widely discussed.

units.

There is also going to be a
very
large foreign demand. The high
price of TV, in
many
foreign

of

color

ference

an

itself

series

a

industry

or

*

Without

as

ex¬

set

research at both Palo

pressure

from

the

subject

I

new

increases.

so

progress

it makes the life

and

families

do

benefit

all

we

being
now, and it will inevitably
extend
to
lower
priced homes.
Second, there is a t wholly new
market

to

accelerates

evident

very

new

all

on

of

have

ment

companies
organized

in

wish

new

and

and

investment

I

we

develop¬

machines

when

the

on

I

some

it.

tends constantly to inten¬
competition.
As more and

more

only
it.

carry

extremely inter¬
doing for the
military services.
Unfortunately
much of it is classified and, there¬
fore, I am not at liberty to discuss

com¬

products,;

new

can

retracting completely,

esting work

search

sify

in¬

weighs

desired, at other times.
While

increasingly

production know-how through

The

an

of

production

small per¬
have what is

modern

a

of

industries.

ment

a

-it

way

and

use

if

industries and be¬

tween

potential.

millions

growing

intense within

industry

growth

in

this

of

is

and

telescopic, being

search,

petition

;•

product I want

A child

1949,

end of the Korean War that

along. I do not

established

where

areas

you a peek at today is one
personal sets I told about
Here it is. Its compactness

tended

life of any individual

amounts to virgin markets before
them, and there will be more new
electrically powered products for
go

or

warning

The aerial is

however, that the
industry or
company will be easier. In fact, it
has become quite plain since the

the last 50 years. Many appliances
existence
today have
what

as we

in

new

evident

does not mean,

in

in

the home

other

16% pounds.

and in the last
half of 1953 and early part of 1954

fac¬

been

in

the

earlier.

II.

Looking ahead, the entire tele- units to more than seven million
Vision picture will be changed by units. No other consumer durable
the advent of the revolutionary product costing several hundred
new personal portable at a price
dollars has ever had such spec¬
that makes TV an impulse pur¬ tacular acceptance. The reason is
chase.
For as little as $90, the easy to understand.
Black
and
buyer can walk out of the store white TV provided a totally new
with one of these sets just as he service.
Color does not. It adds
radio.

of

in

rienced

of

give

stable

more

ized

of

con¬

lighthouse

a

and

land

on

other

to

Most econ¬
that business

to agree

seem

American home is being mechan¬
tories

world's
for

/•;

•

The

out¬

business

application

operate

lights

signals
able.

over-all

the

generally will be

the Home

the

to

traffic

look for the economy?

significant thing is that the

through

the

example, sun power can be
through daylight hours and

used

in¬

cycle may be confined
to comparatively short-lived ad¬
justment periods such as we expe¬

electric

is

radio

stored

Changes

increase

a

For

seven

The fact that movements in the
The

This

applications of this development.

million

immense

an

sound.

sun-powered

electricity is not otherwise avails

World
in

re¬

,•

in the market for the vari¬

Short Cycle

last year.
Electric

highly

In the future there will be other

•

an

major kitchen appliances..

ous

of

sumer use.

Five

to

tegral part of the home of the fu¬

with

have

million black and white receivers.
We

consists

The

moving

silicon encased, as
you see,
plastic.
So far as we know

first

ex¬

foresee

we

market

crease

It

source

energy.

today, it will last forever. Lack¬
ing sunlight I'll show you how
it operates by
using a conventional
bulb.- Instantly, as
you hear, we

new

receivers

color

look for combined

from 5 to

run

from

annual

sales of all major electrical
ances

a

consider

years

the

of

phase

pansions only the beginning.

each appliance separate¬

■

in the

We

appliance industry. Here you have
products ranging from refrigera¬
tors, which already are in 94% of
electrified
homes, to dehumidifiers, which as yet are in but 1%
of

industry. Our
view is that color, after many
false starts, finally has arrived.
As of today, however, it is strictly
for the carriage trade.
stalment credit.
Twentyone inch sets average about $800.
The solution to
the problems
perform
excellently
and
posed by color is in sight. I am They
there is a growing amount of fine
not a banker, but from all I read
color programming. It is almost a
and hear the demand for credit
from business and governmental game in the industry to try to
bodies has been rising so fast that guess how many color sets will
be sold this year. Guess estimates
easier money does not seem in
prospect.
Since
the
tightening range from 50,000 to a half mil¬
lion units.
My own guess is 200,process on instalment loans was
000 units for the entire industry.
started more than six months ago
factors: Hesitance on the
part of buyers because of the
widespread
publicity
given
to
color TV, and the tightness of in¬
cipal

we

Now

other

any

ordinary incandescent

electrical

fined
in

for the
building at
appliance center at Galesburg,
111., to provide special production
capacity for all built-in kitchen
equipment.
/

So much for the television out¬

look.

parts.

V

construction of

light from

or
an

sunpower pak contains no

our

possible by the
development of the personal tele¬
vision set, which has put TV in
the same category as radio.

consider

Now what about the outlook for

quarter

into

This will be made

re¬

Color Outlook
first

the

too

cause

bulb

The

given the commercial go ahead by
the FCC 10 years ago. Fabulous
that may seem, we predict that
the industry will sell 100 million
units in the next 10 years, dou¬
bling the record of its first decade.

we

seven

million black and white receivers

accordingly.

We

possible.

as

as

programs

mately 20%.

was

as

share to the high level of business

sunlight
such

II, has two major ex¬
planped right
Sales by 1965
now.
One, which is under way,
will increase our capacity for tel¬
-By the end of this year the tele-~
evision
production by approxi¬
vision
industry will have sold
over

Thursday, May 10, 1956

..

pansion

the all-time

equal
1950.

3

.

went

that American
right on buying.

was

Business, which had begun paring
inventories
and
cutting
capital
expenditures, was quick to catch
the

clew.

Confidence

returned

Volume 183

Number 5532

The Commercial and Financial Chronicle

...

Y

(2267)

'

and .the 1953-1954 recession proved
to be the shortest and least severe
in

Effectiveness of Advertising,

-of

»

This is prophetic of the rising
effectiveness and status of adver-

6.7, million

change

gdries showed
declined

11

RfSVlK £ IllfrAflvM a«ll AtiVidl v t fl* m iIiaa

However, exdeclined 9 million

m.Cif.'so that all

.

vaae

DICImII 9 llftVvBlIIIvIll

m.c.f.

gas

a

gain.

Union

pers,

1.6 million m.c.f. which1

conform

In pharmaceuticals, Squibb, Eli

an

effort needed.

Brazil

possible

every

consider in-

we

who come
stay will prosper in Brazil. /

to

wi^?t^^^^■onr)the•,A|^>^^^J|)cdhte&anc^ expenses.' were' -GoOdjjreiir;- Goodrich; Dunlop, Pi- sitive
brand, ah* urease-of 20%:^j^dhoed >1^ a^bout $360,O(M1 at the ■ relli of Italy—
*
^
;
the 1955 ,expenditure
* *

;

not'one of those who wor-:ipver

am

our

before

request

:^th^m;thesixe:and--'.quality'of the ^million
l

to insist that

to

.-Lilly; Ptfrke Davis, Pfizer, Merck, vesting. Heal partners

profession, which ha$ befqre * aMprti&itig and-selHhg^'effortisM; sinceCthe^humber of employees Bayer, Ciba, Geigy
ever growing job, measured; we: are ^doing: it.
This,Jl^was'^iedupad^6y'346>nd operating' y In tire product!

your

*'

Imperial any of us

Carbide,

Chemical—

Line losses

VjlpUIIIlDlIlcS
' '

«

profitable cate-

broadened

_

it

an even

.

tising and of the promise, of its
future, as well. It. also points to

Continued from

During

1955, total gas
received into,the system declined

bigger future; We>do
not, of course, expet!t because we
produce new products, and build i
more plant capacity, demand will
-automatically, follow. We r know

.

the

figures.

31

*

the new/interests have brought
in are, 'the following interesting

I have told you. what .we are
looking for in our industries' this
.year and how we are expanding
out plants -tcr meet .the demands,

*

history

our

r\

\>

_

has little roiritvi
nas little, regard, as

and

»m

-

lies that
of: media

'

tatives
recall what the prophets

*

~

.

of: gloom .;

said; less than a decade
television appeared

and maga^nes and-a ^owth economy
Et^QK.a^:pnvpefaiiN.!B^^a';;grb9f^;epoiiQmy' that wiU a)n-,10 000 Customer largely residenlargely residen.,
total eclipse for radro. As tmue to expand and to provide a tial, oh its lines by the end of
v^c^P^'^or '*•?•"£
tinuei-taexpand ^d to.provide.a
od its; lilies by the end of
you know, the record shows ^progressively-higher standard of

newspapers

:

3

;near

.

i

jQ5g

.thatnew^aperand.mag^ne:ad-lmng foryears to come than we ;
the American .people
vertismghas kept marching on to, for more

economy expand
oconcmy expanding at
ment of the com- ably rapid rate,

^ema
w.nv

in

"SSra

pctimatpd

Tan„arv

that

niitW

thp

ife

Far»K

ryior»«

win

nno

pqIIoH

hp

-

i

v

J1"50,?®'

-:

i.

v.

that

<hasbeen

-

,

we continue

as

buildourr^*^'
.^e^ eraily,quite conservative.
in this; capacity df the American people^ cline to the, behef ; that

to

*

of

economy
:

St^y

«•■

•

-

abundance

» tms t0Pkeep

~

■

it that way.

—r—-————-r

.i;—-

v..,i,

.•

"'.i.;..'.m .,/•

...estimate' will.■ also

prove

compares

to

M

with

an

be Brazil included.
In
In

tprms
terms

share,-Including 2

at

nf VnlnmA
of Volume,

He

worked

hi«

throuS^edteal^chorf

and

man

Eents

This,
prod-

of nonvuct of aU Latin America.
One of the most attractive fea.

tures of the Brazilian economy is
the ^tremendous; growth potential

earned in the frist quarter of 1955.
!
sion, distribution* arid ^alo-of'nat- /look; at the; |ipBheiat;iSide;-'iotl'jKbe.-"Likewise;^proiits for the 12 months
•ural .gas in ^©rth^v;^iii^hav-'^uktibd,;i<Firsti:^inentioh;;,'Sfe<*uld'';tbrbugh^Mafch; 1956,' jumped' >-to
central andir southern- Arkansas,; be made of the simple and sound, $1.36 per share, including 6 cents
and northeastern Texas*
Impor- -capitalization consisting of 4,181,- 0f
non-recurring credits,
comtant cities-served include; Little 769 shares.of common s^ock with, pared with earnings of only 46
.........

of its consumer market. Today
only 20 million, or approximately
one-third of its 58 million people
make up the consumer popula-

national kax

such proverty

wore his first pair

the

of

age

t.hp rtrnQ«'
the Gross Kubitschek's

Vrecuri?ing credits, versus. 37 cents
,

self-made

way

11«

oTS

President

a^

Atoinistration'*ai-

the com- National Product of Brazil in 1954 ready reflects this

As a; matter qf ' fact,

American

'ffiP1^*1, V&

This
average annual

pany has just reported first quar- amounted to ,^13.9 billion.
ter earnings equal to 66 cents per: was 30% of the total gross
i

Latin

® ^??Lof JSS. be,s' American tradition, of the

this 4.4% for all of Latin America- that he

f*ortservative.
conservative.;

Continued from page 2

memorable

I. In- rate during the same period , of fought has way to
given ,3.2%. for the United States and dership, rising from

: normal weather conditions

•

:
v

".

;

-

his

forecasts,. country in Latin America.

such

year, are gen-

:To^

were Deme MtoSCSjSfS
a'Aniaflt-;SStef^. eanraiM m the

t

television,EM#?
1054, .The underlying

.-have learned that each media has; 1953 and

X d^°rs. &

dramatic story of Brazil's
—
• dy' ,Last
(tadmatic story of Brazil's indus- studeits and^8 810,16 507 of her
of'her
trial boom. It is the story or an were being educated in the 1S&2
It is the
of
^
n„»rf

drive and

same

energy.
r do not ventUre to predict that

th*

priSS

t

which

has

dla^ued

rra7il's

py-

port trade and her exchange nosi-

tion will
uree

Brazil

be solved

a

that

take

we

+hetic

for

soon

however

attitude

fah.

a

more

toward

return

I would

friends nf

as

on

svmDa-

her

need

coffee

her

venture

one

rapid growth in usual lag experienced by so many u^also' ^n^uch^as^to1 satisfy exchange difficulties and infla- prediction, and that is that Brazil
both /population ,cmd ^industry; -utilities. , v in. -qbtaining : adequate;;eyen the most ' demanding st6ck-Vi^n»"- American "business* has done 1!J,.*lie Y?ry •®ear future will take
V Furthermore,; the population, has and timely rate relief. Thus, while 3Ir-eFi^raXt-rt vfri»ZoI exceedingly well in Brazil. Just
^ve her peoeen snowing a strong irena irom
been showing.a strong-trend from, revenues in lcuciu jcnis s««ww ,1n« in
...
rural to urban. At the close nf a steady growth,; net earnings dew.^s
1955, the company was rendering« pictcii"jpst.a^ ^l^istent-a.-decdiiie... .t,a^mVnt--:Was' doubled to the oresrendering; picted just as consistent a decline:
American Home Products' in- "ne-third .of to dollar earnings
American nome rroaucis' in~ :
oil imports and there appears
natural gas Service to some 244,-* The new owners quickly;
moved'25 auarterlv rate In hiS' -vestment in Brazil has increased
toe no doubt that President
*000 customers in I4H communities. for_ adequate rate relief, partiCu^aip
270% since 1950 and its sales Kubitschek
£ *>
is determined to bring
having ah estimated population of; .larly hi; the industrial. Jbvislon,
least volume, 375 %
' Kubl
onnfnvimgfoiv
innnnnn
fuc+n-.
and
wpfp
Riipcossfiil
with
littlo menxioneu
a payoui ®r at ledSX.
HppiuAiiiidicij
approximately .^uu^wvuv V-w™ ' and were successful with little CKtv. Thi<? nrprerlpd the increase
1,000,000. Custo-.
Sears, Roebuck opened its first About a speedy solution to this
*t
©ears, xtoe——

J been enjoying

a

■

To^ISSlT

_

Sioneif^a^Svout1ef^'at

*
-

•
.

■

:
:
-

:

inaus

:
•

trfal -wstomer*;
account
for
annroximatelv
oneaccount ior approximately onet
eompany s
base.

provid-.

x,

company

million m.c.f.

of natural

Pf^s ow r^erves was m:luded
m

•

'

:
!
'

line,,

re-

der

transportation

:

versing the prior downtrend in

a

per share in 1954.
Indicative of the tight controls

a

Six-Year Record
1950(a)

Net

1951(a)

Income

•Earned

1952(a)

1953

1954

1955

^25,974,000 $31,773,000 $33,927,000 $37,102,000 $42,693,000 $49 566 000
3,567,000
3,101,000
2,669,000
2,226,000
2,813,000
4j298[000
.

Per

$0.85

Share

$0.74

$0.34

$0.53

$0.43

(b)

$0.11

$0.45

$0.45

214,600

224,425

233,872

243,649

$1.07

•Dividend Per

Share

Total

(b)

190,082

Customers

•Based

upon

(b)

203,205

prea-nt shares outstanding,

which gives effect to 10%

paid in December 1955.
(a) Pro-forma, based
-

fb> shares became

upon

re-arrangement in

publicly owned in 1953.




This

«rpnt

m

^

Lone

Star

n

Cement

x

Com-

America.

\xruu

r>».—

With much of Brazil's

economic potential yet to be developed, our dependence upon

+hp

Ford has found in Brazil a ma-

change this situation but for the

already

rthrpyorstacrthe end beof
World War II.
By 1948'Ford

We should show omcoirfidenre^i

mUls

are

Thp „uarps

1953.

nisteri

commer-

area.

PanY

_

convinCed

of

the

great

this county now for wh^we do

today in Brazil will determine in

fn°ld " ^

on

American

stock

dividend

her rightful place among the
g industnal nations of the
ld For those of us who go

Pjeted in_1953, with a capacity leadi

rif 125-cars an,d trucks a day^

Jords^ tacal.purchasing aimea intoBrazil now developing their
pra the Brazilians in andwork with
J started in
ana

gr

ck

Exchange)

have

recently

,

at huelping Br/?zl]

country at this very time when

"5SK35S

gt

teregt as

omy.

.

Elliott T. Moore Adds
LONG

BEACH,

Calif. —C.

Today Ford purchases about

3,000 different items locally and
the percentage of local material
used in a Ford truck has risen

(Special to The Financial Chronicle)

Operating

Revenues

T

^m-incr

onty $0.43

So much for the operational as-

Total

timps

nnr

Brazil In the years to come will
constantly increase. American
t e c h n o 1 o g y may substantially

»^8tt«sa.2-'sj=s.5r£

un-

for

in

nnimiA

in

The

growth of business, cial accounts in the

has had the effect of sharply

vear

now

j

ionffer term there should

tution of operating economies and suming residential and

last

pects of, the system;

jj,.ij

Precedent mafang favorable rate should also cause a further indecision combined with the msti- crease in the number of gas con-

Through this system the company
agreements

Brazil offers an opportunity for
States private
capital

Practically every- United
ma«i,fon+.«.£d

.

established a Brazilian subSfvSe tanort for sidiary in 1933 with a capacity of
the shareholders as the aggressive 800,000 barrels a year. Today its
toe^reholdenlaithe aggressive cap'acity has be£n expanded to
SfSl Sol„ consideration 3,600,000 barrels.
_

fl

;

and

,

.

^xf-co^s1^ ■£s^£tt£°&Pst»what BrazU ^

stations totaling

delivered

„k

-

.

^te for M ^till well, bjdowthe- .only .become-Urge eonsumers^of

almost 65,000 horsepower, and 3,720 miles of tlistribution mains;
sold

1'

in Santos.
.

the loeal Commission, stantial paper mills are already came" s0

:t^a(&Si$
gathmdngmid »

compressor

t

'

added'two "in'sab Paulo"and

■

.

V1W Problem.

.^aS
B*t» to mamifactared. unique
o«r tirn* 1M«
Rrf»7il
Rrarilians anrording
nation
dividend in Brazil hv Brazilians according nation has a definite and imporby
has a definite and imnorS to its own specifications.
tant place In the. future of
earnings, as i De
xi

increase u iuod

.

store in Rio in 1948. To this it

,

nother

?mnted^ bv^ thflocal CommSm ^ntial naoS

ing the balance under long-term

a

..

^ »L

gas

^o^»^bbutS
?Lltf.?aLY?5™^, P-^L"
punts,

j^g

cmties utilized lor servmganaus-

holds mineral
leases on 189,000 acres, of which
45,000 are held by production,
Owned reserves
include
about
B50

—

.

«ua"cQW
.^a rati
" "
'
*>te,vie^oi me strong
faw equiiy position,ana rising earn

ing service to the public are most
impressive. Starting with the gas

itself, the

.

and on property awarded in short orThe der.but ;also of: importance,-a

10,000 over the preceding year.
The facilities utilized In

,

red- delay^_N^only^wM a^^_fair return

denUal,
dential, 28,000 • commerc
■ commercial
2,000 industrial and others.
othe
total represented a gain c

-

i

x

,

served include'214,(
serv«l_include-214,00q

mers
mers

to

accep^

?«%-=!»

^ell

the

offered

us

as

to hers that we

invitation now being
to share in Brazil's

dpsBnv.

approximately 32% by weight;

L.

Bevington, Jr., Neva G. Bevingr
ton,
Carmen
Briggs,
Gertrude
Campbell, Frank S. Clark, Leona
E.
Grissom, Charles E. Hickey,
Fred
L.
Middaugh, Bertha M.
Parker, Kenneth H. Schrank, Roy

Investment Climate

definitely think the Brazilian investment climate is good.
We

eagerly seeking and
needs foreign investors, but she
wants and obviously requires the
Brazil

is

With Greenberg, Strong
(Special to th* financial chhonk±e)
DENVER, Colo.—George L. 51mons
has joined the stqff of

Greenberg, Strong & Co.,' First
t*. Sylvester, Ann Waite and Vir- kind that will stay on for the long w ..
.
Rank Rnildinff
was
ginia A. Welsh are now affiliated pull and help in her industrial
,
.
with Elliott T. Moore, 4151 East and
economic
development.
I formerly Cashier for Mountain
Carson Street.
think it is a serious mistake for States Securities Corporation.

.

32

private interests, on the one hand, look. The next is interpretation
political interests on the other, and appraisal of those facts.
Another is that the framework of
There are of course other re-

Continued from first page

Creating

a

^

Just

JUVVAKvmy
*

staked

have

10/

among

to

tne

iocC ooapntiai

wiuc

finp

—

„

_

.

I should

anrTrpgional
and regional

jeopaxay

no man can unerringly foresee the
no man can unerringly toresee tne

~«».n»rlv

*

that
that

problems
problems

future,

American

sbs? pecuiiarly american

say

an

that

awareness

and therefore

he

will

rBate

do

whereby

systems

upon

ruling

a

-

z

-

wAiw

zMfforpnt

climate of opportunity, and then

relying for progress upon the end
terprise and energy of free people
.5xu:—„
striving
for ' better things
for
themselves,
their
families
and
.

who

things
kings'

like

some

forces of sunnlv

material

this
tms

and
and

thus

more

the

scratch

the

way

falth*

.

there

uu

/

of

..

with-

•-!

'

-

in

.

^

—coordinating

fairly

a

even range, are

than sharp swings to the respect-

wixn^ inansnarp^

f°Il0T H

* °f

degrees of faith.
All of us know people admirably
devoted to liberty, who say democracy is less efficient than other
systems, but still worth having
inefficiency is
JHe price
of liberty.
Woodrow Wilson had
a
stronger faith in democracy
are

l4ause

that.

He

words:

these

expressed

it

in

"The

highest and
efficiency is the
spontaneous cooperation of a free
people."
*

best

form

In

of

climate

a
U

of

VJUillUVW

will

that

V/X.

people
to apply their enterprise and energy in bettering the lot of themselves, their families, and their
communities, and thus promote
the general welfare of the country
encourage

Federal
That

our

Reserve

the

Responsibility
-

Federal

uie

is

one

Reserve

reuwax

in

Sys-

ncscivc
'

What I should like to

about

System

with

views

you

its

is

how

the

responsibility,
discharging

and how it goes about

it.

I
Our

crtnaitinns

levels

> '

R may help to explain, in terms

we aU understand, why the Systern

of

at all times

will

business

ermvth

foster

and

merged.

Washington

"

—

ls

*■

and will

Reserve
a£ Reserve System authority to
ltself, influence the
money supply. But

Iirhnn

urn

JI

•

i..

nnnfnrvail

one

keep on doing so. It is
thing for interest rates to rise

under

for

we

high

employ-

the

J

fieFd

a

deflation-

chills and inflationary fevers
alike.
The
System follows the
logic of the homeowner who uses
ary

ms
his

neating
heating equipment to mod10
moaerate winter's excessive cold and

supply in narrnony wxux ecuiiuuut.
neecjs—not for arbitrary juggling

o{ the

IrhpeS^hriwt0toa\hea"egUlaUonsVeor£
ar®
Board

J

-

A

MRX

Banks

2,.

RnarH

tjpeerve

nf rovernors

/nnoints

in«fnn

"cludin/
~

12

other

the

r)pnijtv

rate»

in Wash-

three

■

Thairman
and
CtaaTa

a

a

§L
Chairman

.

another. To fix

lllga
hi^h

of

the

artificially low

this is

v..~

<yuu
WWUA,a
you would have to
economy for
the economy for money,

There is

no

such

thing
high

simple
low in-

as a

Reserve

ters,

including

monetary

affairs,

there is, however, no exact counttnere
nowever,
exaci couniorriar

erpart of the ^ormnmofar tr* prothermometer to
viae
vide an liisianiarieous ana indisinstantaneous and inaisrecord

temperature
there

a

of

and

xu„

the

trend.

X

current

Nor

is

thermostat to provide

an

automatic response, in
proper direction and degree, to

economic conditions.

Monetary policy
an

pxart

deafs

<?rieiw

whh

can never be
hpranw what it

in the

ultii^te

response

dwell

to

caliber

of
u

s0

to

its

wno
who

men

~c

much

have
nave

given
gxveii

iimo

their time onH
and

of

pffnrt.
effort

to supply and demand.

service,
'

central

sense

ziiv/iv.

banking

another

for

Hmited

periods,

'>

a
A

<

third

these matters

are

t
that

factor-

.

u

.

tw

f

ith th

havp to keen in mind in deal-

.

...

Droblems

nation.

part of the

background
background of monetary policy
policy
n—t
decisions. Perhaps I should m0n_
men^on
tion as weR some basic considerawell
Dasic consiaera—

financial

>

1

needs

economy—the

the

of

general

private

sector, as
Federal Reserve s Eyes and Lars
represented
by
industry,
comWhat I do wish to mention .s me«e, agrictdturt, consumers and
,

about

the

F_r«

services

ox

go

and the public or

on>

govern

^
scale of

the growing
activity.
How

^*0 rate

of

high

promptly,

tne

of

3%

a

-

Characteristics of Federal Reserve

terms, what the Fed-

eral Reserve is

undertaking to do,
time and in any action it
takes, is to provide in the sphere

at any

thing

As anyone can read them in full
in the Apt, I will take time here

for only a couple of observations,
One is that great care was
taken,
when
Congress
entrusted
the

an

11

sion.

_

or

^

VP

,y

.

Artificial

In the

matter

urements,

of

needs

one

tremely careful.
money

r9im

growth

unique advantage oi tne
y tern, as becomes evi en w en
^
consider
wnai
q
nrovide
formulating a p
g
a

credit

ana
properly attu

m

y

conditions
economic

xricslucllL

ducive to health, and comfortable
are

feverish.




meas-

be

Growth

ex¬

the

in

supply must be regulated

acceding ^^^ countoy s rea
with

it

much
mal

borrowers

loan

than

growth, they

result to be
rates.

If

crowa

demands

greater

oanxs

scale

a

average

nor-

can

expect

rise

some

that

on

in

rise

the
interest

does occur,

it

supply must be
conducte^
recogniti0n of the Treasury s
requirementS) for two reasons:

money

with

Federal

£

.

^

nt

Reserve

has

a

financial

panics,
aim a panic surely would follow
pan
,
,,,

w

imaxice

i xx e xxx.

tration

those f™er
that

in

1913, to safeguard that

becoming a device

could be controlled either by

painstaking

etary policy.
When
ence

not

we

»

talk about

independ-

of the Federal Reserve we're

talking about making it dif-

„

search

for

all

the

levant facts that may bear upon

tne

eonomic
econuiiuc

and
emu

financial
x

out-

ou

Treasury financing must always
a major consideration of mon-

ncn rxr

XC6pt' VeTha?ss
frozen or

to

merely signals continuance of,the

■_

_

ireasury

important as we

^

f°L
who

while
5%; I do

year,

2%

say

iact

level

That is

same

^

ure ought to be, and I doubt that
a precise figure can be set as desirable for vear-in~and-vear~out
vear-in-and-vear-out

A fourth factor that

deal with
reliable

devised
may
z

IX

the

and

economic

much

is

yardstick
to

be

the" part°oT the ^Treasury
duct

its

tion of

in

to

hni"_

ro me

even

**"7

has

■"**

""

*

re-

yet

no

been

what

^

people

things

v*

VWjf/VWj

pretty close to perfect.

MVVzlil

But

if

they were right in fact,
they were wrong in the scales of
psychology. And what counted

was not what the facts
were, but
what people thought

they

: ;
•

Well, the earth has
"

'

were.

been round

meh insisted it was flat,

con-

operations with recognithe Federal Reserve's
(

have to

What

measure

thinking.

w '

we

psychology—and

.

much

arn„!

growth
should be is more difficult
to say- Some People think the
®ooney supply ought to grow at

neeos

-our

trends or changes m the direction
and the satisfaction of the economy usually begin to
f P. y
d
d wants of the develop weeks or months before
the statistical material can begin
y'
to reflect them. In bridging tna
Nearly,' the framers of the (ime gap_ the assistance of 260

emniovme£t

tech-

experience.

credit

m„ff

sr0ww nonutotton

srowfn°

.

mon

J-^th

of

rnnnpv

vazx

„

of

rpmn'rpq

consideration in determining

..

J

which,
experience
has
taughtme, are deadly bores to all

those

but

-

service of the

something

Because

is a vast country, money may

not profess to know what the
fig-

which means the
wnicn
uic
fHoxr
general public; they ttons that enter into making the
merit the gratitude of the System, decisions
themselves.
The
first
of their communities, and of the
consideration is to estimate the
•

unavailable:

money

others may

Monetary Policy Considerations

Reserve has been fortunate in the

r,rr»_

putable

well

known, and I do not
on
it, although I
do want to say this: the Federal
need

to stifle the economv bv mak-

would have to PumP it is up to the Federal Reserve to
money into the economy in infla- see that the seasonal requirements
ti°nary doses; to fix an artificUHy;of business are met.

Banks, have a o£ bank reserves is
delight in those periods when it
appr0priate
responsibility
with
the bigb level stability in the econis unnecessary to use either, as joint
Board:
the
initiation
of
action
well as his aversion to running
0my and then to let interest rates
rests
with them, the necessary
be
determined
in
the
market
the furnace during a heat wave
or running the cooler during a approval rests with the Board. All pjace where they can rise or fail

freeze.

rates, but it would be
ous

iatc'
rate'
the

^fst
preposter-

you

starve
starve

Deputy Chairman.

an

tnrnnc

tn

'

lnw

nr

nign or low.

his cooling equipment to moder-

niques,

In

Al

imp

as

Regulating the money supply to ing
fit economic needs is one thing ttus

of the

"Jn® )Yn®/th

rai5ng

and extended into the fine

own

heavy

a
1

meteiv unavauanip

.

member

The

hiph

pifhpr
enner

sibstan-

""-"'"tij

his

of

pressures

r

1

the market must hp allnw^f
t&emarket mustbe allowed to

to fix some

particular level of interest rates

be described as quasi-private.

pUp,lrve

j

m

economfc'char-

ficult to understand, if the explanation is couched in technical

of

credit

luuepeiiucnv-c

Government, somewhat analagous

t0 themdependenceofthejudiciary The regional Reserve Banks

directors over the nation that mental sector, of which the United
stabilitv of is DeoDle rather than
things Like is
not so generally recognized. States Treasury is representative.
nromote sustain- most matters of an
And that is that they are most The needs 0f these two sectors are
in the economv
Bv actor
ft involves among other helpiul in keeping the Board interwined, but they can be
ran make a
thing's sociology and psychology speedily posted on economic deseparated for purposes of discusto
the
velopments at the grass roots.

Sntoo fo
tial con'tributto^

points

the

against

Ind

doltor

terms

in

exerts

counter-force

monetary and credit

that

maintain ?he

ffdito

*

may

Counter-Force

changes in

resoonsibilitv

assu?e

is to

The

is

pation

its J^an

approaches

System

nomic climate.

—

tem shares.

iht

Reserve

In the domain of economic mat-

responsibility

wnicn
which

talk

always the job of the Federal

—A

*

ln

g

task of keeping credit conditions
adjusted to changes in the eco-

whole.

as a

is

directors, in certain matt s choice between
or
ate summer's excessive heat. Of suah as ^tabXishing di^ount rates terest
rates
The
fundamental
opportunity course it shares the home-owner's and appointing the chief
y
requisite is to see that the volume

country the responsibilIty of the government is to proour

vide
VlUVz

*>

....

surface

matter

a

than

-

for

But

course

^' Ins'tod, toth must

®^m®£k®t pla?e. forces and de-

.

alike: moderate temper-

economy

atures

nroeress
progress,

doing

still

ana

thaf

a

"

of

,^°^the

dpmand

and

'+y'.

has far

tial.

Re:

i

mnct wmri?

®"PP'y and demand that
»}e market place
what. interest rates

F*F.

iana
interplay of demand and supply.

Reserve

,h!™.H™

t
By "free" I mPfln of course termine their policies accordingly.
mean
of course
their
regional
all free"
~
"
"relatively"free,1""since"all freeNow as to the needs of the prinow made up of 12 great regional
doms_€yen our cherished free- vate sector of the economy: busiReserve Bankswith24 branches, ^
speech_^re neCessarily ness-in c 1 u di n g agrieulturaland some 260 directors. In addi
relative> rauier than absolute. The needs for credit characteristically
relative, rather uutu duwiutc. jluc
^iuxwvw^uvivMxxj
—
bon the Boaw oi uover. o ,
.
idea of an absolutely free money expand at certain
seasons, and it
Washington, was given uie_
Washington, was given the re-' wea °* a" aosou existed on otherr

Act

appiicaoxe for
point that seems applicable iui
fu~
nnH
the individual household and the
the

Federal

the
uic

under
uxiuci

have
xxdvc

xrcasuiy

artificially

an

sponsibility and
sponsiDimyanu primary task of market, it ever it
"nniicv than a purely tl
purely theoretical plane, Reserve to see that-those seaand
UOTT
coordinating and directing poljcy than aitsel{ bave been altered
directing policy must
sonal needs are met.
The Fedobvious that our country preferable, and healthier for al- s0 that
can work e£
when passage of the Federal Re- eral Reserve has always done so,
outstripped all others in most everyone concerned, rather
Thus public and private partici- serve Aet con{erred on the Fed-

is

•out

and

Perhaps, it is not unreasonable,
however, to expect a rather general agreement on a fundamental

•

immunities

It

hot

who like them cold.

ixxe

at

can

few

life: of having the govcrnment responsible for providing

mat

with complementary
COraplemei

and thp Trpacnrv

best

wayaof

a

go
So

r^n„nQihilitU
serve

for the many, and
then harness the energies of their
what's

so

'monev

ssesrms
together
Neither

what is an ideal home temperaThus we have in the Federal
wnai is LIie pcucw u»- Reserve someuxxxxg umcitnv
decide ture, or what is_ the perfect .cli- Keserve something different from
mate, so it would be unrealistic the Bank of England or European our economy and our private,
to expect complete agreement on central banks, where authority is competitive system is embraced in
citizens to achieve the pre-deter- what are ideal credit conditions, centralized in a single bank with th® concept of the free market,
•mined goals. Our country has put In each instance, there are some numerous branches. Instead, we where balance is achieved by the
mined
counxry
welfare

their

get

can

low rate

^ no* h> act as J1 ne couia.
To me, one of the basic pnn-

cohuxuuxjd.

Treasury obviously would
—

.

of the United States and the

local

——

million Ainencaxio wi

The

is rnnsciousness

areas

ia

1

countries

blending of the pub
private enterprise,
accord
recogntion

it would be unrAnii^tip
unrealistic

as

quirements, less tangible but not

the System was designed to reflect
in the best Americ
A— j1a:— ~

Policy in
Stable Economy

Thursday, May 10, 1956

...

sponsibility for contributing to
stability of the economy and stability of the dollar,

or

Role oi Monelaiy

Other

The Commercial and Financial Chronicle

j

(2268)

Wlfcb
that

the
the

practical

discovery

consequence

of

America,

-

Number 5532

183

Volume

Tfce

..

.

Commercial and Financial Chronicle

'

(2269) 1 33

early postwar shackles, has been.
Can't Do Whole Job
tions and individuals to operate
characterized by flexibility and
Let me emphasize again that the within those controls.
In the case I cited of a Fedby prompt adaptation to the ever federal Reserve's authority to <.» One ofvthe important objectives
eral Reserve misjudgment of psy- changing
needs of a thriving combat excesses in the field of of the Employment Act, in addichology, the only feasible thing economy.
The test of the pol- money and credit enables it to tion to promoting productive emwe could do was to adjust to the
1?ies pursued is not the direction help in moderating swings in the ployment and economic growth,
other things, was retarded

among

rates might bear further inquiryv

by a few centuries.

situation
All

I

tion

they have taken—toward expan-

-

•

-

of

as

soon

as

can

it.

saw

we

sion

about our adapta¬

say

policy

that particular

at

we

since

can't

operate

on

formula

a

but

and

conditions

business

whether

in

which

nnii™

casfon

then,

from

us

by

the

wish to avoid detailed regulation
of personal and business affairs.

A growing dynamic economy
Such stability can be with varying shifts in demands
individual and interests is bound to develop

should be stability in the average

do

price level.

attained without fixing

a multitude of different types of
financial organizations and insti-

The government is to be

prices.

our

commended

very

the high

for

degree

tutions. Those which spring Up
spontaneously and survive do so
The decline in agricultural because they perform a socially

nature of our free economy, we of general price stability which
doomed to difficulty and dis- has been attained in the last few

v,a„0

tress.

hp
must be
shape of a
a
future visible only in dim outline,
Occasions
are
rare
when
the

occasion

cannot

are

^v before,
say hpfnrj

to
to

t

a5

it

but

protect

excesses

own

Mnnptarv

to

ernment

applied.

are

cycle,

the whole job. If we depend upon
the Federal Reserve or the Gov-

the

to

Tailoring Monetary Policy

beings,

human nature and human
it

they

talked about earlier;
monetary policy deals with

thing

—

appropriate

were

times

point is that it illustrates some¬

restraint

or

they

particularly by those who are concerned with' the effectiveness of
general monetary control and

'

.

years.

useful^unctioii in channeling sav-

If businessmen, bankers, your P^ducts may however, obscure
to
respond quickly to developcontemporaries in the business the rises in other prices.
ments as they occur.
You cannot
and financial world, stay on the
Recent above-average or nor-.
expect to foresee future needs meaning of developing events is sidelines, concerned
only with mal growth in consumer credit
perfectly and hit them right on so clear that those who bear the making profits, letting the Gov- has induced the President to recbe prepared

You've got to

basis.

tailored

fit

to

the

well

Of

" "t l^
"an, and eove'rnment

but

evident

that

think

I

business

it

has

been

I

have

said

all

through

do our utmost at all times

we

alert

stay

the

to

and

inflation

both

^

of

factor

Um

cycle

also have to con-

we

either

counteract

of

dangers

deflation, and
with

vigor.

We

1 V> V»

y\

be/I

/M*

is the forerunner of

it

If

flation.

I

thought

might be for it.

A

de-

inflation

prosperity,

would create jobs and
I

Ko

partly

But I am confrom transitory

vinced that, apart

the result of inflation is
the destruction of jobs and pros¬
effects,

know there are some
who think differently — who be¬
lieve that "a little inflation"—gay
perity.

I

price rise of about 3% a year—
is
a
good thing, especially for
a

man."

"the little

It

to

seems

me

.

i

,

"lfttle infla"
liuie mna-

help them.

going to

is

we

ktratiye decisions. It is a poor
camera

our

men

subject for the photo-flash
to

Jl

capture

still life,

etch in

ting

as

.

central

the

on

Continued

jrom

Confusion often arises because
are

we

apt to talk about this mechan-

ism

if

as

it

offered

three

tween

choice

a

be-

means
of
credit.
All
operate together—the
supply of reserves being basic.
Open market operations and dis-

easing

separate

tightening

or

three

must

It is

count rates affect that base.

therefore

the

misleading

three

to

think of
if they

to

components

alternatives

were

as

be

used

in-

dependently of each other.
The

of

use

rather than
lar

moment

component

one

apother at a particuis explained by the

fact
a

that, b
by its nature, each has
different impact.
ifferent
Reserve re-

quirements

the bluntest of the

are

three, having by their nature the
heaviest
impact
because
they
necessarily release or absorb very
large sums. Accordingly changes
reserve

m
,

page

requirements

are

best

suited to broad basic adjustments,

Open

operations

market

impersonal,

pervasive,

and

are

best

suited to day to day adjustments,
for they can be used to release or
impound

small

in

reserves

larae

or

accordance

cur-

.Discount
Discount

rate

chanses
cnanges,

in
m

and

asjde

the

market

re
re-

have

been

times

months
toward
for

the
the

as

its

downturn, and they

revised

over

12

or

economy

capacity

borrowed

upward

last

money

arid

to depressed areas

makes no

talked

books

interest

rate,

with

the

recognition for variations in
due to degrees of risk and

hear

A

rates.

$4.6 billion and those in savings
and loan associations, $10.6, and

"the"

the

We talk about many

varieties

different

of

activity-

productive

to

five
1

13

rose

demand

strained the

step for unemployed workers may
program

in

no

more

it is recommended that "The

Natonal

Houstag

should'

Act

be

under especially favorable
pa^e

mort-

terms for apartment projects

The

cpage «o )

built

*'uld

Thk

billion

$4.5

Added to

of the money market.

other

all

why that trend should not be al- dozens of other similarly compartlowed to continue where economic mentalized markets, such as loans
Healey and Davis-Bacon Acts, in recovery is basically uneconomic under FHA and VA mortgages
spite of their humanitarian ap- and impossible, while, at the same and a 4'hOle series of different
peals, all represent market inter- time, industry could be brought in types of loans to farmers, cooperferences
all have their human to other depressed areas whose atiVe
agencies
and
a
host
of
costs. The proposed expansion of difficulty is more temporary.
others would create still another
legislative intervention in these
in many,
perhaps most, de- money market.
matters should be questioned. vv pressed areas, economic revival
in July, Congress fixed a rate
Fixing minimum wages under
Wage and Hour, the Walsh-

the

—

for $3

sources

bil¬

lion.

noncommercial

These

and

useful

observers

but

some

the

unequal
.

bank

institutions

lending

highly

perform

apparently

create

commercial
for $1.5 billion

the

and

accounted

banks
and

about

increased

credit

stallment

credit

functions,

believe

that

regulations, varying
_

tax treatments, etc., of some of
our financial
institutions is, in
part, responsible for the growing
complexity of the money mar¬
coordination

Effective

kets.

of

various

these

"special" markets
become virtually impossible and
they sometimes work against one
another.

merger activity seem unwarranted

be achieved. However, as the of 2%% for U. S. Treasury loans
And this is an area that might
Report notes, "major responsibil- to build college and university well command the attention of
^ in Plan"ing and financing the dormitories. The rate had been responsible authorities in both,

Vigorous enforcement of antitrust

economic redevelopment of their

In

addition

the

complex

and

burdensome proposals for curbing

can

with
inFa competitive^economy^as the local citizens." Furthermore, any
Economic Report points out. But Federal program must recognize
penalizing "bigness" or mergers, that some areas may not be ecoviolations is essential to maintain-

se, could work against competitive forces, rather than for
them. A new hurdle might face
anyone thinking of
launching a

per

,

-

business, if he knew that
government bureau might
stand in his way should he decide
new

some

upon a merger.

On

the

ether

mendation

control

of

for

the

bureau
transportation in-

u

^

*

c+IS
step

if

±

,

,

A

.

eveH

worsen

3Y4%. Under the new low rate,
the U. S. Treasury is being del-

Congress and the Administration.
before additional new segregated

specialized

,.Ped with demands for loans. 0r compartmentalized,
and
loan-guaranteeing
This could involve hundreds of lending
'-j1—
—J
1—
—
millions of dollars—funds which agencies are established by the
should be borrowed in 'the pri- Congress or the Administration.
vate capital market. But here is
All of the foregoing relates to
another case of a compartment- 0ur concern for the preservation,
alized money market.
0f the free market and its importAoparently when the RFC was ant function as the primary mo¬
established, effort was made to tivating force and directing de¬
avoid creating a compartmental- vice of our economy. Also, it goes
ized money market since the law to the heart of the proper func¬
-

,

predic- specified that government loans

its

arYfnt. (p8ge 61.)

were toibe

made if loans wereinot

But how would a government avallable at
!lnTome
burJau resist demands for aid re- ^uf then it
gardless of basic conditions? In- bureau p<eoplle tlhat thisjn:ight put
df.ed' .ln those areas where the the RFC out of 1
PRfht13 greatest, the pressures for p^entiy withOYLYYiC„
I nYw

public

United States Treasury help might or

awareness,

a

new

;n

aeSK*«!f
1S 3
of market interference and help rates." The Hoover Commission
bigger government
4

toward

tial, it

remain

forremsuranc7TSta- uUild "P ™fst s,trePuously-there- phrase, "on reason; iorevaiTing
reinfYrar^ce °l caxa by again introducing a new type was substituted for
prevailing

♦

any

must

nomically sound places for productive activity. The taxpayers as
a wa?ie must not be called on to
sustain those areas in an uneconomic way> for» a^ai.n in the words
^be ReP°rt» "Projects that genera^e only temporary employment
do
belp a community . . . and
maV

the

relaxing

dustry in the face of the marked
growth of substitute transportation facilities is a step iri the right
direction.

program

communities

has

perpetuate that which it intended

socialized medicine.
of

private

intenaea id

P^ P i-Yvp

benefit

port

been

phenomenal and
pooling of risks is essen-

easily be done by private reinsurance companies which
have experience in such activity,
providing no antitrust obstacle is
in the way. (Page 69-70.)
can

Task Force on Lending
^

The Money Market
There
as

is

a

there is for

market

for

as

follows:

"On June 30,
money

commodities.

The

Agencies

1947,

a

change was

made with respect to the requirement that credit not be available
to RFC borrowers

Founding Fathers wrote into the
Constitution that Congress shall

the

from ordinary

sources

have power to "coin money, reguia^e the value thereof."

Undoubt-

on

at prevailing rates. Under
law which became effective
that date, the Corporation was

The suggestions to

simplify

cus-

edly, there must be some type of

of




_

tY

vir

ly $8 billion, but finance com¬
panies and others over $12 billion.
In the first 10 months of 1955, in¬

one

empowered to make loans to any
supply.
toms valuation and administration centralized
control over money borrower who could not obtain
It is worth noting, I think, that should
enlarge the free market and the money supply. But such credit from other sources 'on reator some five
years monetary pol- and
stimulate
freer
and
more
control leaves considerable elbow sonable terms'." (Page 15.)
icy, released from
wartime and trade.
room for private financial instituThis multiplication of interest
limits

i!

•,

increased by $20 billion. The near¬
commercial banks accounted for

add

by non-profit organizations
for occupancy by elderly persons."

no. reason

com¬

apparentiv "would

v

There should be

insurance

arrangements that have been established.
The Economic Report

another compartmentalized sector

age it.

life

$6.1 billion.
,

9

due to institutional

way

be relocation in other areas.
proposed

for

was

Installment credit from the end

growing number of the
are

rise

panies

interest

of

period, the holdings m
savings banks increased

same

mutual

Today, however,

discussion

no

the end of 1951 to the end

1954, the holdings of residential
nonfarm mortgages in commercial
banks increased $2.9 billion.
In.

in factwouldprobably discour-

other Markets

growth

mild business

Depressed Areas

suited

life

times,

3.8

grew

of

would encourage this trend and,

possibly

comparatively short and

mi-

Markets

plans

1954,

examined

be

nutely.

The

a

the important

functioning of the free

should

in

during

"the"

variations

Discussion of government assist-

government bureaus try to set

and

twice

Free Markets

The maladjustments which sections, or former lumber, areas.
when government programs In such cases, the most profitable

were re-

downward

economics

Older
about

Thus

deta'u

between the others:
vised

dis¬

banks

tln^
From

loan-

and
-

Therefore, we wouldits report, mention of may be entirely that compartmentalized lending rate.
urge the
the possibility unjoj^
Committee, in
some areas

spect to frequency of use, fall in

they

lending
~

government
---

length of loan.

ance

YfYivfu;

conditions

rent

among

1110se words are as pe ti e t guaranteeing programs,

12

seldom

are

ings

of

types

interest rates and
the
innumerable

varying

terms

today as when President Wilson

The compliance problems

them

of commercial banks grew sav¬
2.9
times, while those Of mutual

,hj<! havp
this have
regulation of and

different

on

o—

„

Full Employment and

in

sums

with

JVotPawjfh
With

market.
unequal

interest rate.

by

of 1945 t0 the er)d of last year>

total loans and investments (other
thl than Treasury security holdings)

+5™™nortmpntnii*f

restraints

we

raised

J

self-control, if®'™YniS nY!d YYerKt" i nqfimtioni insurance companies 3.4 times,
capable of that financial and credit institutions savings —j ,— associations 5.7
—.— and loan
— c n
and

rates

Open
discount rate

changes are the closely mter-related parts
of that mechanism.

-

m.

come

some

0CCUr

operations,
changes, and reserve requirement

'

...

Get-

defect of

not

uttered them in November, 1917.

monetary policy is effected.

•

have

ourselves. If

great thing which we call democratic government."

fittings.

ciety.

a

market

govern

u

role of the free market in our so- mined out regions, high cost coal amended to authorize insurance

I ask your
brief comment
mechanism through which
for

can

then they are not
"

J

to

for the
several

perfect garment
may
require

a

weary you
techniques of
t

but

banking,

indulgence

-

n

story

spectacular outline.

future

■

.

_

.LPfT1Std YYl
with talk about the

-

news

a

_

defined

clearly

a

for

or

spell out in

Central Banking Techniques
V

'

a

cussed.

tion"

<

luccessSn^of and democracy means the world d«mcy
de™fratic Pe°Ple in
money
succession 01
first of all

a

irom

that

building and loan shares,

ex'Slairf

,

,

^

mar^J operations, the outline of Wilson:
,
f. s
41.ln Pohcy emphasis, like
«we claim to be the greatest

looked.

to explain iust howa
io
just now a

,

..

P°bcy emphasis: it is rarely de- a11cided "Pon in a single day, More
I should like to close, as
typically, as is evidenced by open gan, with some words of Woodrow beheye that this alleged

they owe it to owners of savings
bonds, pension rights, savings de-

ports,

■

-

.

tary policy does not reach a par- potency of general credit controls
ticular sector of the money mar- lodged with the Federal Reserve
System. It is interesting to note.
KexI beThere are some students who £or example, that from the end

market developments and admin-

rii

r»

inflation
4-l\

4-

*

cause

fi

•

K*

fight

.

.—j

,

gradually

Results of Inflation
r

w

of

be- What is true of a change in w°ven as ours, there is need for
PO«cy is also true of a shift in a larger vision, on. the part of us

equal
.

moCTams

fo? varying «

from
restraint

course

sider

to

imper-

an

world.

feet

to

is likely in

as

toat the host

j" Vit,,tinn= fnlfprpHhv rmvernl

provides
as

itlelms

However
nf

a

tion

of

the

in

government

con-

ducting its own affairs and monetary and fiscal policies so as to
growth, stability and high
employment.
Each year, it might be well for
the Economic Report to prepare
two lists of areas; first, the area

foster

in which the free market has been

expanded

second, areas in
market has been

and

wnicn tne tree marxet nas oeen
constricted, either by private or
public efforts. If we really mean
A
to strengthen voluntary individ¬
ual

and

annual

group

effort, some such
would consti-

inventory

tute a useful benchmark
Devolution and Decentralization
This

year's
less

much

the

government

^an

was

Report

Economic

j^g

to

say

out

getting
of business
on

^e case jas^ year. Uuder

heading "Fostering Competi¬

Continued

on

page

24

The Commercial and Financial Chronicle

34

Continued from page

ernment

33

Enterprise," no mention is
If the growth of the economy
made of the contribution that can envisaged in the Economic Report
tive

by getting the government out of business-type activimade

ties.

if substantial further
made in effectuating
"""

occurs and
is

progress

Commission

Hoover

the

(Pages 76-79.)

recom¬

has been made mendations, and utmost economy
efforts are made, the possibility
in eliminating some business- and
of a tax reduction is good.
commercial-type activities of the
A little progress

government, particularly in barge
lines and
synthetic rubber.
In
some cases, the activity has sim-

We

these

recommend

would

.

ply been
facilities

have

to pricommend the

been sold
We

owners.

such

a

as

manner

burden by $1.7 billion, with

been made in tax

that has

progress

the board in
to reduce the

come tax rates across

QhPPial attpntinn in cmnnihincf mit
direction,
but
this
effort special attention to smoothing out
the hump in progression which
needs to be strengthened. For the
xl;_

this

ahead,

year

that

the

lend

hope

we

its

will

Committee

Joint

prestige to greater efforts in this
will

This

direction.

at the

and,

economy

strengthen

sector

market

free

the

of

same

our

to the Hoover
350

as

well as

income

income tax rate by

not less than
percentage points—cost $800

two

Reduction

(3)

the

of

Korean

excises by $500 million.

The administration of monetary

the state and local govern¬
to create a better di¬

ments and

vision of tax

between the

sources

the

one

hand, and the state and local
ernments

on

the other.

on

the

Economic

little to say
is regrettable.

very

these matters

on

accompanying table shows

timated

by

the

several

Hoover

Commission

Task Force and, in
that of Lending Agen¬
cies by the Commission itself:

one

case,

Budget and Accounting______$4,OOO,OOO,0OO

Depot Utilization
Federal

253,000,000

Medical

Guaranteeing
Activities
Economic

360,000,000

___

Management
Management

—

' 33,300,000

II
and

Civil

Service..

48,500,000

Real

Property Management..
Special Personnel Problems—
Department
Subsistence

of

185,000,000

Defense...

388,800,000

(Food and Cloth¬

ing)

400,000,000

Transportation
Use and Disposal

151,500,000
of

Federal

Surplus Property
the

•For

first

$1,000,000,000

*2,000,000,000
four

per

75 engineers and scientists in the
working group in Detroit spend¬
ing full time on the reactor study
-project.
Our job i§,/to prepare

preliminary

designs and specifi¬

cations and to

supervise research
development
work
being
by more than 15 private

and
done

contractors.

of

Many

the

men

have been obtained from the par¬

companies.

years;

thereafter,

development. The
1956 calls for an ex¬

penditure of $5,180,000 which, as
in the past, will be provided by
the

43

member

these

of

companies.

funds

reimburse

will

the savings that could be obtained
under their recommendations. The

be

Some
to

used

the

government
for
work performed in their labora¬
tories
not

since

facilities

certain

are

private

or¬

such

as

available to
ganizations.
yet

A

technical

to

their

take

search bureau to its member

time, to be

tain the full

effect

sure, to

of

these

ob¬
sav¬

to

become

nuclear

specialists.

considered

as

a

central

re¬

com¬

panies.

Even though the exact fig¬
may be in dispute, it is widely
agreed that savings running into

Progress in Power Reactors

ure

paving the

ness

possible,

for earlier desir¬
reductions.
Perhaps

way

tax

of

are

important would be the
efficiency and effective¬
the

national

government

which would be achieved

by these

carefully and expertly drawn
posals and recommendations.

pro¬

budget

regard
and

commend the

to

debt

In the five years since

invited

was

general,

debt reduction is
particularly im¬

portant.




the

on

City

at

bank

east

River.

power

the&ipresent

atomic

New

It

conven¬

the

fact
power is

ent

Indian

of

the

York

State

is predicted that, during the

years—by 1965, the pres¬

State

.

doubled

that

facilities

will

in

to

New

in

have

order

be

to

the

meet

growing demands of

our

electric

customers.

some

research and devel¬
opment eifort&: must continue at
than

10

generating

York

away,

increased --Father

'

Atomic Power Plants for

pro¬

next

spite^of

economic

the

electric

of

Some

companies, in order to meet this
demand, are planning on install¬

de¬

such

ing additional facilities each year
over that period.

plants, is to actually design, con¬
and operate them.
This is

energy continues at the same pace

It

rate.

only

the

is

apparent that

develop

to

way-

of-.-action

course

sued

being

the--.various

by

mentioned

If

earlier.

the

development of nuclear

as

projects

Each of these

it has

it

pur¬

is

the past

over

recognize that their elec¬
generation: costs
in
these

Summary

The foregoing
technology will influence greatly:
the time whenrcommercially eco-'. Electric
Utility
nomic power

of

this

At

nuclear

Atomic

View

reveals * the extent to
which our companies are partici¬
pating in the successful develop¬

re-;

relating to installation and

actors

review of how
Companies
in

State

York

Energy,

difficult to

of

econonftcs

discuss

Hudson

This plant will be the first

New

will arrive.

time;Mt is

elec¬

install nuclear
power plants some
time duririg
that 10-year period. We are plan¬
ning on these possibilities for the
early 1960s.

pioneering projects might not be
competitive w i t h conventional
methods—but they also recognize

Point

five yeaps,

conceivable that these

tric companies will

sponsors

member, has proposed
236,000 kw plant. - It

York

than

agreed • among the New
State
electric
companies

in

years

Company,

located 24 miles north

be

New

a

in Detroit.

sys¬

struct

-

ment of nucleaF

power.
" ^
operating costs,- simply because;
commercially
operated
nuclear
time has not
In summarizing this discussion,
^permitted the con¬
power
plant to operate in our
struction of a Commercial nuclear we wish to make ihe following
state and is the largest of all thus
statements:.
far proposed within our country. power plant.
Fuel costs foFour conventional";
(1) Because of the vast new
•

third.

proposal

the

to

Energy

York

State

(2)

the

need *

energy

exist to meet the world's

for'

future, the
development
of

the

nuclear power
to

help

fuel

A

research

; :

tremendous

;

nuclear

before

>

.

of

amount

must

development

and

done

be

is urgent in order
the dwindling

conserve

reserves.

(3)

inveSStfhent costs, these'
installations would,

high

first

Although adequate

need for the immediate

electric

.■

which 4t

"

resources

.

New

energy

available, nuclear energy
does hold the promise of a more
abundant supply of electricity, r
makes

the APDA

companies are among the 26 firms

heat

sourceof

plants today amount to .less than
Commission was
20% of the total cost of product
designed fast:
ing - and distributing electricity.
breeder reactor plant.
Since the.
With such a sftiall percentage of
By-Laws of APDA limit its op¬
the total operating costs involved:
erations to research and develop-*
in fuel expenses, it is j. probable
ment, it will not undertake the*
that the use eft nuclear fuels will*
construction, operation or owner¬
not
result
in7 immediate large
ship of an actual reactor. Instead,
26 companies have joined efforts' savings to thlr consumers.
The
costs • bf
building
these
to construct, own and operate this
first reactor plants will be about
reactor power plant as developed
two
to four
times that of our.
by APDA. Up to the present time,
conventional plants.
Because of
Atomic

that for

energy

nuclear

cooperating in this effort.
Long Island Lighting

are:

'

Mich.,

Monroe,

mitted

industry
participate
in

to

sub¬

was

Atomic

the

to

Energy

in January.

power plants have
made to the Atomic Energy

been

Com¬
mission.
Ten
proposed
atomic
power plants are to be built and
in

operation within the next
reactor
or

in

Atomic

Atomic

plants
stem
di¬
from activities

part

ment Associates.

kee

one

Three of these pro¬

Power

They

Develop¬
are:

Yan¬

Electric

Company;
Consolidated
Edison
Company;
and Power Reactor Development
Company.
The

Yankee

Company,

Atomic

comprising

a

Electric

number

utility companies in our
,

indicate; Ithat

state

•

proposed plant which

power.

have observed

as

you

you

might

entered the

eration oi

it

this

at

power

were

time.

If

still

the

years,

right
of

consumers

has

at

—1

least

present.

;£y

Consolidated. JEdison

our

men

I

next gen¬

would

available

at

as

for

the

•

(6) We accept the challenge of¬
us
by the. 1954
Atomic

pro-, fered

progressing

say

Energy

plant in this country. * All
six of the electric companies are

just as rapidly as manpower and
engineering techniques will
permit.
- • •

power

active

very

4^

they

would

have

label

it the

Model

Power

era.

the'

industrial

that

it has in the past

Atomic

to

the

model,

"T"

ally, we believe that all of the
plants proposed to the AEC will
be the pioneering projects in the
industrial development of atomic

Duquesne

In

Organization

Operatip*
by

Light

(Kw.)

Type
.Pressurized Water

Company

-

($ Millions)
15

100.000
-

Nuclear

Power

Gtoup.

Reactor

Florida

<55

Boiling Water

180,000

45

1960

Homogeneous

...

Development

150,000

Not Stated

1962

:

1960

;

100,000

Co._

33.4

Not Stated

Group

California

Consumers Public

55

134,000

200,000

50

5,000

1.5

Graphite

7,500

1

District. ..Sodium Graphite

75,000

Pacific Gas & Electric Co.

Southern

-

.Pressurized Water

Co

Edison

Power

Co.

1957

1959-1960

236,000

Edisen-Company... .Pressurized Water

Pennsylvania Power & Light Co..
Power

-

Investmt. by

<Capacity

Reactor

energy.

Unfortunately, because of the
world situation, the first dramatic

•;

Electric

Organization—

Consolidated

are

Estimated

-

.

Yankee Atomic Electric

Safety Analysis

and

'

'

1

a

Actu¬

Act

APPENDIX A

development of the

art continues
five

atomic

posed to builOhe largest atomic

looking

often wonder what

if

further the de¬

o|- -economic

velopment

not

effort

every

the successful de¬
nuclear fuels will
result in large savings to the

probable that
velopment of

activity shown among the

is being made, to

In

atomic

The

electric

thought you would be inter¬
ested in seeing a model of the

I

hall.

posed

ministration. We also agree, nev¬
ertheless, with its view that taxes
are too
high. But so long as up¬
ward price pressures are

will

ies, great progress has been -made.
Already several proposals to build

balancing the rectly
reduction, we of the

position of the Ad¬

build

reactor development stud¬

power

to six years..

Tax Reductions

With

APDA

to

power

that their contributions to reactor

Commission early

ings.

several billion dollars

an

as¬

near

essential

personnel

greater

that,

Massachusetts.
Edison

Labora¬

Niagara
Mohawk
Power
Corporation has increased their

tory.

be

"know-how"

ping. Mr. Hoover stated that when
duplications were eliminated, the
savings would be in the neighbor¬
hood of $51/k
billion.
It would

equally

York

plant in Western

Consolidated

man

National

this

to

each

full time

a

Thus,
an
industrial
study group such as APDA could

means

future growth and development—
and at the same time train their

some

is

It

of APDA member companies and
others in New England, proposes

their

signed

pre¬

methoda«r

creased

locate

electric

more

by

tional

an

to

has

can
serve
as
a
competitive fuel
They,
probably not be "competitive—but to oil, gas, and coal.
;
Com¬
we
will never'obtain this infor-«
(4) Nuclear power plants will
pany;
Central
Hudson
Gas
&
mation, nor will we know how to be as safe as any other normal
Electric
Corporation;
and
reduce the
cost .until we build- industrial
activity.
Rochester Gas and Electric Cor¬
and operate
aslant of commercial
poration. This operating corpora¬
(5) Because of the high cost of
size.
r ^
tion is known as the Power Re¬
nuclear reactors, and the fact that
actor Development Company. An
Atomic Power Activities of the
the major cost of producing and
Electric Utilities in New York
application for a license to build
distributing electricity does not
State
the plant at a site on Lake Erie,
result from fuel expenses, it is

low-cost

a

by which companies can partici¬
pate in an atomic energy pro¬
gram and thereby obtain atomic

above

figures, it should be stated,
however, involve some overlap¬

no

duced

„

three'

group

APDA provides

annum.

Several of the Task Forces did
not make any dollar estimates of

able

cost

icy makers.
Our progress with
stability has not been the result
of haphazard chance.

The

in research and

budget for

—

255,000,000

Personnel

Atomic
Power
Develop¬
Associates, Inc., have about

By Dec. 31, 1955, there had been
expended the sum of $7,200,000

and

Part I

Part

The

ticipating

Opera¬

tions

»

attaining economic

nuclear power will be realized at
the earliest possible date.

200,000,000

Lending,
Overseas

Paperwork

of

290,000,000

Services-:

Insurance

Paperwork

goal

been

that the power so generated must

tric

try's

ment

Report has

of the potential savings es¬

some

clear fuels by

able team of analysts and pol¬

an

evidenced by the fact that

company

re-,

tems, the basic premise should be

have such

to

have

breeder reactor.
and

Long Island
Lighting are both interested in
the
Liquid Metal Fuel Reactor
being developed by Brookhaven,

nor

power

fast

a

Hudson

.

Prospects for Atomic Energy—
As a Power Utility Sees It

gov¬

government

The

fortunate

are

operators,
All

build

Central

personnel engaged in full time
as safe as
atomic work, including a man re¬
coal-burning plant. Certainly,
cently assigned to reactor test
they would not be built if this
work
at
the
Argortne National
were not so.
;
Laboratory
in
Chicago,- and
Economics
another man just assigned to the
In considering the use of nu¬ same type of work with APDA

flicting pressures and advice have
to be weighed and balanced.
We

will

the

the

Con¬

made.

are

a

experimental tests of
The nuclear power

by
type.

the

them
with
the
thought that a careful review not
only was required but would lead
to aggressive action to reduce the
size of the central government, to
restore many governmental func¬

That

decisions

been

never

of

plant is expected to be

r

knowable

and

known

was

safety

as

plant

proposed

ceded

use

what

the

to

communities.

each

Critics

for.

in

are

accident

actors

of

subgroups

central

ard
the

hindsight, but, in fairness,
policy making must be judged by

fiscal

and

called

reactors

that they will not present a haz¬

general, policy decisions have
been as good as the available facts
situations

the safety

.possible
attention
has
been given to designing plants so

In

can

Associates.
in APDA,
companies—Central
Hudson Gas & Electric Corpora¬
tion, Rochester Gas and Electric
Corporation,
and
Long
Island
Lighting Company — are partici¬
pating in the organization whieh
three

little

excellent

the Atomic

as

Development
beirig active

Besides

Every

lllwcaoc

and

be

to

as

Power

peaceful

involving oper¬
ating reactors in this country.

preliminary estimates of corpor¬
net profits last year are ac¬
tually a shade below the 1950
level. Compensation of employees
rose from $154 billion to over $221
billion in this same period—an
increase of $67 billion. From 1954
1955
national income rose by
»n«
more than $22 billion, while prof¬
its increased by $4.5 billion—all
at almost constant prices.
*

when

Conclusion

affairs, including debt
the
recommendations of the
management, as outlined in the
Kestnbaum Commission.
Economic Report command wideHundreds
of business execuspread commendation.
commendation.
The ecotives, academicians and others nomic analyses carried on in govgave of their valuable time and
:
experiences-to both the Hoover
•'
and Kestnbaum Commissions and Continued from page 13
x

tions to

serious

come

i*i_

would

There has

records.

prosperity, our national in¬
jumped from $240 billion in
1950 to $322 in 1955 (of which
about 10% is inflation) although
our

.

there

Today, n^any
operation with

all
sectors
of our
nave not shared fully in

i

for

used

skepticism today

Although

.i

first

of nuclear reactors.

utmost seriousness.

economy

been

purposes,

,

Reduction of the corporate

(2)

Commission, and its

recommendations,

high order. The purposes of the
Employment Act and economic
growth as well as stability appar¬
ently have been taken with the

brackets.

time,

expand the tax base.
Similarly, there is a lack of at¬
tention in the Economic Report

middle

the

in

occurs

study group known

was

directed towards destruction. If it
had

ate

r

^

simultaneous adjustments for fisca* 1957:
dropped. In others, the
(1) Reduction of individual in-

vate

application of atomic energy

bureaus

departments,

and the Federal Reserve are of a

Employment and Free Markets

Full
be

Thursday, May 10, 1956

...

(2270)

Sodium

Not Stated

*

1959-1960
Not Stated

1957
1957

1958-1959

Volume 183

Number 5532

.

The Commercial and Financial Chronicle

Continued from page 5

Inc., reports. At the highest level in seven weeks, failures were
considerably from a year ago .when-237.^occurred, and from
1954 when there were 206. In/fact, the toll was only 1% below
the prewar 281 in the corresponding week of 1939.
Liabilities of $5,000 or more, were involved in 237 of the
week's failures as compared with 207 last week and 197 a year
ago. Small failures, with liabilities under $5,000, increased to 40
from 29 in the previous week but held even with the comparable
v 1955 level.
The number of businesses failing with liabilities above
$106,000 rose to 35 from 19 a^ week ago.
up

car-truck making

(47,414 and 59,004, respectively)

reached

new

all-time

peaks capping records .set in May 1955. Weekly rates
mid-April have been at unsually. high levels, "Ward's" re-,
ported.
'
'
I'.--

„

since

"

*

.i

,

/

Steel Production ^Fhis Week Scheduled at
.

96.5% of Capacity

v

/

*'

-

t
A record production ofatleastl22,000,00Q tons of steel fpr_
ingots and/castings .this year, was predicted pn Monday of . this
week, by "Steel? magazine.- This would' top 11955'$ [mark by ?

m

>V 1 /

>

,

./

Wholesale Food Price Index Holds
*

A« S.E. Releases

,.

Unchanged at 1956 High

--The Dun & Bradstreet ..wholesale food price Index for May 1
/remained stable at the previous figure of $6.04, which represented
the high point for the year and the highest since Nov. .15, 1955,
;

,

33

(2271)

5,000,000 tons.
V- / " >
*
'
i
•••-.
*
1
Indications^ are thatsteel mills-- will work at an : average
when- it also stood at $6.04. The current- index compares with
J99.8%*oi near-practical capacity tp,produce 64,-00(^000, tons/in'the;; /$6.38 at this time a year ago, or a drop of 5.3%.first half,. and at. an average 90% of capacity for a yield gf/ 58,- > /
,'/.lfi|her JntWholesalr pric& last week were^ corn, beef, lard,'
000,000 tons in the second £alf, the metalworking publication *
r coffee, cottonseed oil, cocoa/and lambs. -On the. down side were
stated.
■"
'»
*
wheat, rye, oats, bellies, eggs, prunes and hogs.
Mills produced 42,000,000 tons through April, working/at a
^
;
The index represents the sum total of the price per pound of
weekly average of 99.6%. JDemand is strong enough, to keep, mills '
31 raw foodstuffs and meats in general use and its chief function
going at full blast through June; continued this trade magazine.
/
to show the general trend of food priees at the wholesale level.
!;
The odds are .that production; during July, August and Sep- .

Technicolor Film
The color and dash of Manhat¬

tan's dynamic spectacle that was
old
Outdoor Curb Market

the

lived again for Wall Streeters at

York

Nqw
when

-

the

City's Bankers

Club

Stock

American

,

Ex¬

change unveiled "Behind the
Ticker Tape,'- a 21-minute Tech¬
nicolor film story of the market'sbirth, ' background and growth.
Thev premiere
showing of the
Exchange's first venture into the

'

motion

colorful

picture field depicted the
activity of yesteryear and

the scope of the market's present
world-wide operations.'
*
,

.

by United World
Films, Inc., of New York City at.
the Hollywood facilities of its par¬
ent,, Universal International Stu¬
dios, the film is slated for daily
half hour showings beginning late
this
month
in
the Exchange's
Produced

*

.

tember will be slower than any other quarter this

year. VVaca- J

irons, hot Weather and labor problems will hold
quarter output, this trade publication pointed out.

down, third

" ~
r/
There is no recession in sight, even if last-half steel pro¬
duction does drop off, the metalworking authority added.
It explained that more steel is
being produced than consumed
in the first half.
The six-month, period appears to be one of
inventory building. If steel production drops" off in the third
and fourth quarters, the metalworking industry will chew up
inventories being laid away now.
/
Output in the week ended May ,6 declined 2 points to/98.5%

Wholesale Commodity Price Index Upward Trend
Faltered the Past Week and Closed Mildly Lower

>

-

"Little Theater.?
It will be re¬
leased Shortly in 16 MM for free

The upward trend in the general commodity price level ap¬
peared'to waiver last week. The daily wholesale commodity
price index, compiled by Dun & Bradstreet, Inc., moved in a
narrow range during the week and closed at 294.03 on May 1.
This compared with 294.98 a week earlier and with 272.84 on
the corresponding date a year ago.

-

;

'

non-theatrical distribution among

schools; colleges, clubs and simi¬
lar groups through United World
Films; in 35 MM by Universal In¬

^

•

of

ternational

Trading in graiiji futures was more active with prices generally
moying lower. Demand, for wheat tapered off and prices worked,gradually downward.

a

short in the

na¬

ultimately

television.

on

capacity or 2,424.964 net tons from the 100.5% and 2,474,202
registered the previous week. "Steel" pointed out this is
^Weather and crop conditions;in the Southwest showed little
no drop in. demand, but a result of a railroad strike at U.;
S,
if ;any improvement despite the receipt of some, moisture in the
Steel Corp.'s Tennessee- Coal and Iron Division in Birmingham/
main, producing areas -over ihe week-end.
Output there dropped 72 points to only 23.5% of capacity.
Stocks of wheat in all positions as of April 1 totalled .1,288,-Steel prices continue to rise.
In the week, ended May 2,
000,000 bushels, according to. the Department of Agriculture.
''Steel's" arithmetical composite of base: prices for finished steel
This was the largest of record, and about 53,000,000 bushels more
rose 96 cents to $128.98 a net ton, reflecting an increase of $11 >
than a year earlier. Cash corn weakened in most markets with
a ton on plates made by one
producer and a general rise in tin,, /
offerings, in excess nf current demands. Stocks of corn on April 1
mill products. The composite had held at $128 02 since March 5. /
were also reported at a record level of 2,291,000,000 bushels, as
A year ago» it was $118.45 and five years ago, $106.3,2. "Steel's"
compared, with 2,133,000,000 a year ago. Sales of grain and soy¬
price composite on steelmaking scrap dropped 33 cents to $55 a
abean futures on the Chicago Board of. Trade last week increased
gross ton from the record high of $55.33.
to a daily .average of ,69,500,000 bushels, against 67,100,000 the
The American Iron< and Steel Institute announced that the
previous week and 37,200,000 last year.
operating rate of steel companies having 96.1% of the steelmak¬
Cocoa prices fluctuated in narrow limits with a somewhat
ing capacity for the entire industry will be at the average of
steadier tone noted at the week-end. Warehouse stocks declined
96.5%: of capacity, for the week beginning May 7, 1956, equiva¬
:
slightly to 337,041 bags, from 340,299 last week and compared
lent: to. 2,375,000 t.ons of ingot and. steel, for castings as -compared
with 185,718 bags a year ago. Lard prices rose to new-high ground
with-96.4% of capacity/and 2,373,000!tons (revised) .va week ago.
for the year/influenced by>the'Ynarked/strength in fats and oils
~ r The industry's ingot production rate for the weeks in
1956 is
and the favorable export outlook.. Livestock markets moved
based on annual
-

as

tion's movie houses and

<

Edward T. McCormick, Ameri¬
can
Stock Exchange President,

net tons

stated, "Our primary purpose in
producing
'Behind
the
Ticket
Tape' is to inform and to educate.
It is purely a public relations en¬
deavor to acquaint the public with

'

the

and character

nature

for

the

a vital
segment of our
community at work in

shows

financial
the

our

mass

minimum
It

of

This, picture, created
audience carries a
of commercial "sell."

institution,

past and today."

•

Halsey, Stuart Group
Offers Utility Bonds

•

.

_

capacity of 128,363,090 tons at of Jan. 1, 1956.
For the like week a month ago the rate was 100.9% and pro¬
duction 2.483,000 tons. A year ago the actual weekly production
was placed at 2,345,000 tons or
97.2%. The operating rate is not
comparable because capacity is higher than capacity in 1955. The

percentage figures for 1955 are based
$28,310 tons as of Jan. 1, 1955.

on

,

higher, with top hog. prices striking the year's high of $16 several

•

annual capacity of 125.-

spot prices moved slightly lower. Some support was attracted to
new; crop deliveries by unfavorable weather reports from a num¬
ber of sections of the main belt and some indications of weevil
v-

emergence.

Output Recedes for; the Third Consecutive Week

4

There

'

Was

Stuart

Inc.

Co.

&

is

of an underwriting syn-f
dicate
offering
$4,500,000
Sa-r
vannah Electric & Power Co. first
manager

While cotton futures registered modest gains during the week,

;

Electric

Halsey,

times during the week.

;

considerable

mortgage bonds, 3%% series due
May 1, 1986, at ,102.239% and ac¬
crued

•

ihquiry from foreign

sources

interest^ to

of the issue

Award

with

yield 3.75%.
was

won

by

'

The

amount

of, electric

energy

much interest displayed by shippers on the outcome

distributed

by the electric
light and power industry for the week ended Saturday, May 5,
1956, was estimated at 10,815,000,000 kwh., a decrease below | theweek ended April 28, 1956, according to the Edison Electric In¬

Loadings Continue to Advance in Latest Week

1

*

freight for the week ended April 28,
1956, increased 14,961 cars or 2% above the preceding week the
revenue

Association of American Railroads reports.

I

Loadings fpr the week ended April 28, 1956, totaled 778,398
cars, an increase of 52,498 cars, or 7.2% above the corresponding
increase of 130,473 cars, or 20.1%
Corresponding week in 1954.
an

U. S. Automotive

Output Last Week Dropped 8 .7%

Automotive output for the latest week ended May 4, 1956
according to "Ward's Automotive Reports,"-declined 8.7% under
the previous week's level, or the lowest since the Christmas
week yield last December of 105,670 units.

*

.

...Last.week the industry assembled

estimated 116,165 cars,
compared with 127,277 (revised) in the previous week. The past
week's production total of cars and trucks amounted to
138,455
an

units, a decrease of 10,776 units below the preceding week's out¬
put,. states "Ward's/'
Last week's car output declined below that of the
previous
week by 11,112 cars, while truck output showed strength the past
week by exceeding the preceding week's output by 336 vehicles.
In the

*

'

;

were

corresponding week last

172,031

cars

and 30,081 trucks

Last week the agency reported there were 22,290 trucks made
in the United States. This compared with

£1,954 in the previous

week and

30,081

Canadian
*

year

assembled.

2,876 trucks.

a year ago.

cars

and 2,947

cars

and 2,811 trucks.

trucks, and for the comparable 1955 week, 10,833

Business Failures Rose to

Highesf Point in Seven Weeks

Commercial and industrial failures climbed

to%77

in the week

"ended May 3 from 236 in the preceding week Dim-&
Bradstreet,




was

construction

complete the company's 1956 con¬
The new bonds will be redeem¬
able at regular redemption prices

ranging from 106,15% to par, and
special redemption prices re¬

at

below that of the similar week last year.

The total dollar volume of retail
on

Wednesday of last week

was

trslde"

ceding from 120.25% to par, plus

in the. period ended

accrued interest in each case.

at the same level as that of a

Savannah Electric & Power Co.

according to. estimates by Dun & Bradstreet, Inc. Regional estimates varied from the comparable 1955 levels by the

year ago,
'

is engaged in the generation, pur¬
chase and sale of electricity, a*d

following percentages: New England +2 to +6; East —1 to +3;
Middle West—4 to 0; Northwest
+7 to 4-H and Pacific Coast —5 to ~1%.

incidentally in the sale of electric

South and Southwest —3 to +1;
'

Wholesalers

reported

increased

ordering

southeastern

of

on

a

trade volume in New York City the past week suffered
somewhat as a consequence of the unseasonably cool weather.
Trade observers
a

placed the decline at about 5% under the level

year ago.

According to the Federal Reserve Board's index, department
store sales in New York City for the weekly period ended April
28, 1956, increased 1% above those of the like period last year. In
the preceding week,'April 21,
1956, an increase of 7% was
recorded. For the four weeks ending April 28, 1956, a gain of
2% was recorded. For the period Jan. 1, 1956 i:o April 28, 1956
the index recorded a rise of 2% above that of the corresponding

period of 1955.

of

the

Georgia

approximately 62 miles long and
miles wide, and including the
City of Savannah. Population of
the territory served is estimated
at 173,000.

from the Federal Reserve Board's index of the week

Retail

in

area

an

corner

33

country-wide basis as taken
ended April
28, 1956, decreased 2% below those of the like period of last year.
In the
preceding week, April 21, 1956, an increase of 1% was re¬
ported. For the four weeks ended April 28, 1956, a decline of 2%
was reported.
For the period Jan. 1, 1956 to April 28, 1956 a
gain of 2% was registered above that of 1955.
Department stores sales

in

appliances,

children's Fall
clothing, cotton gray goods and furniture the past week. The total
dollar volume was at the level of the previous week and orders
slightly exceeded those of a year ago.

of

output last week was placed at 11,450 cars and
In the previous week Dominion plants built 11,046

for

structions prpgram.

Automobile dealers reported a fractional volume rise, but the
level

above the

Below Level of Preceding Period

incurred

requirements, and together with
cash from operations and addi¬
tional short-term - bank loans, to

Despite numerous Mother's Day sales promotions and reducepriced sales; cbnsumer buying declined somewhat the past week.
However, the total dollar volume was close to that of a year ago.
There was increased volume in some apparel and home furnish¬
ings lines.

.

1955 week, and

to pay short-term bank

company

loans

V

Trade Volume Continued to Defcline in Past Week

Loadings of

>

Net' proceeds from the sale of
bonds will be used
by the

the

pared with 44,000 a week previous and 63,200 in the like week a
year ago.
About 6,317,700 bales of 1955 crop cotton remained
under Government loan as of April 20.
f
'

week's

group

101.3356%.

Activity in the fourteen spot markets declined moderately

week in 1954.

t

at competitive sale
yesterday (May 9) on a bid of

with total purchases for the week reported at 40,700 bales; com¬

output declined 52,000,000- kwh. under that of
the previous week; it increased 1,229.000,000 kwh. or 12.8% above
the comparable 1955 week and 2,377,000,000 kwh. over the like

Car

of the first

sale by the CCC under the Cotton Export Program.

stitute.

This

the

<

For the year

had

1955, the company
operating revenues of
and
net
income
of

total

$8,074,791

$1,237,043.
Other
;

members

writing group
Hammill

&

of

the

under-

include: Shearson,

Co.;

Courts &

Co.;

Johnston, Lemon & Co.; Wm. E.
Pollock

&

Co., Inc.;

Freeman &

Co.; Thomas & Co.; Anderson &
Strudwick;

Interstate

Securities

Corp.; Johnson, Lane, Space and
Co.

Inc.;

goner;

Wyatt,

Neal

&

Wag¬

and Norris & Hirschberg„

Incorporated.

36

The Commercial and Financial Chronicle

(2272)

..

Thursday, May 10,1056

* INDICATES

in
'

Grand Junction, Colo,

Abundant Uranium, Inc.,

Center, Grand Junction, Colo. Underwriter—Ralph
Davis & Co., Grand Junction, Colo.

•

principal amount. Proceeds—To reduce bank, mortgage
loan, or other indebtedness; and for working capital.

<

(letter of notification) 3,000,000 shares of common
stock (par one cent). Price—10 cents per share.
Proceeds—For mining expenses.
Office—319 Uranium
Feb. 23

Underwriter—None.

Atlantic Oil Corp.,

M.

and

Express Co. (5/23)
May 2 filed 528,792 shares of common stock (par $1) to

general corporate purposes.
named by amendment.

by common stockholders of
the basis of one new
share for each five shares held; rights to expire on or

Underwriter
•' "7

To be

Feb. 28 filed

on

•

for subscription

offered

be

record

about May 23, 1956 on

or

to

6, 1956. Price—To be supplied by amend¬
Proceeds^—For investments and general corporate

ment.

Co., RKO Pictures Corp., San Diego Corp.
Corp. on the following basis: Four shares
for one of Atlas common; 2.4 shares for one share of
Airfleets common; one share for' each share of Albu¬
querque common; four shares for each 5.25 shares of
RKO common; 2.4 shares for each share of San Diego
common; 13 shares for each share of Wasatch cumulative
preferred; and 1.3 shares for each share of Wasatch
common.
The registration statement also covers 1,250,000 shares of 5% cumulative preferred stock (par $20)
which will become issuable upon and to the extent that

Alexandria Steel fabricators* Inc.

Office—Alexandria, Va. Underwriter—Seaboard Se¬

C.

curities Corp., Washington, D.

Corp., Memphis, Tenn.
Feb. 15 filed 175,000 shares of class A common stock (par
$1).
Price —$10 per share. Proceeds — Together with
other funds, to purchase
1,000,000 shares of common
stock (par $1) of American Frontier Life Insurance Co.
American Frontier

shares of

American Insurers'

Atlas

Development Co.

400,000 shares of common stock (par $1).
Price
$2.50 per share. Proceeds — To expand service
business.
Office
Birmingham, Ala.
Underwriter —
—

Odess, Martin & Herzberg, Inc., Birmingham, Ala.
Corp., New York

May 2 filed 375,100 shares of common stock (par $1) to
be offered for subscription by stockholders at the rate
of one new share for each five shares held (with an over¬
subscription privilege). Price—To be supplied by amend¬
Proceeds—For

Underwriter

purposes.
owns

•

investments

69.36%

—

None.

of the outstanding

American Shopping

and

other

Adams

convertible into

Investment

on

shares of

merger

on

Co., Las Vegas, Nev.

★ Atom Mines, Int., Joplin, Mo.
May 2 (letter of notification) 3,000,000 shares of

corporate

common

stock (par 10 cents). Price—50 cents per share. Proceeds
—For mining expenses. Office—221 Main St., Joplin, Mo.

Co.

Express

are

at $50 per share and 8,800 shares are to be offered in
exchange for preferred stock. Proceeds—For payment of
bank loans, and for capital and surplus. UnderwritersRex Laub and Max Laub, of Tremonton, Utah, and M. D.
Close Mortgage & Loan Co. and Jack Hemingway Invest¬
ment Co., of Las Vegas, Nev.

—

ment.

stock

Jan. 9 filed 20,800 shares of class B common voting stock,
of which 12,000 shares are to be offered for public sale

10 filed

American International

common

preferred stock. Stockholders will vote
May 14. Statement effective April 20.

Underwriter—None.

Feb.

Oil

and Wasatch

—

April 13 (letter of notification) $250,0Q0 of 1V2% deben¬
tures due 1966. Price—At par. Proceeds—For expansion,
etc.

9,890,095 shares of common stock (par $1)
pursuant to an agreement of iherger with
corporation of Airfleets, Inc., Albuquerque Asso¬

ciated

Hallgarten & Co. and R. W.
Pressprich & Co., both of New York.
Underwriters

Corp.

be issued

this

about June

purposes.

Atlas

—

shares.

Underwriter—None.

Centers, Inc. (5/15-16)

it Benrus Watch Co., Inc. (5/16)
April 27 (letter of notification) 6,000 shares of common
stock (par $1). Price—At market (estimated at $10 per
share). Proceeds—To Julian Lazrus, Secretary, who is
the selling stockholder. Underwriter—L. F. Rothschild &
Co., New York.

Price—To be sup¬

April 27 (letter of notification) 7,000 shares of common
stock (par $1). Price—At market (estimated at $10
per
share). Proceeds—To Benjamin Lazrus Foundation, Inc.,
and Benjamin Lazrus, Chairman of the Board. Under¬
writer—Ralph E. Samuel & Co., New York.

plied by amendment. Proceeds — To discharge certain
obligations and for construction of new centers and
working capital. Office—Minneapolis, Minn. Underwriter

April 27 (letter of notification) 7,000 shares of common
stock (par $1). Price—At market (estimated at
$10 per
share). Proceeds—To Oscar M. Lazrus, Treasurer, who

—Carl M.

is the

•

American

Shopping Centers, Inc. (3/15-16

April 16, filed 200,000 shares of class A common stock
(par 10 cents) and 100,000 shares of class B common
stock (par 10 cents) to be offered in units of one class
A share and one-half class B

share.

Loeb, Rhoades & Co., New York.

selling stockholder. Underwriter—L, F. Rothschild
& Co., New York.

•

Anchor Casualty Co., St. Paul, Minn*
March 27 filed 20,000 shares of $1.75 cumulative

April 27 (letter of notification) 10,000 shares of common
stock (par $1). Price—At market (estimated at
$10 per
share). Proceeds—S. Ralph Lazrus (President) and S.Ralph Lazrus Foundation, Inc., the selling stockholders.

con¬

vertible preferred stock (par $10) being offered for sub¬

scription by common stockholders* on the basis of two
preferred shafres foi* each 11 coifimon shares held as of
record Maj'., 1, 1956 (with an oversubscription privilege);
rights to expire on May 21. Price — $40 per share.

Underwriter—Ralph E. Samuel & Co., New York.
Big Horn Mountain Gold £ Uranium Co. >

Proceeds—To enable conipany to write a larger volume
of insurance premiums.' Underwriters—Harold E. Wood
&

Co.,

St.

Paul, Minn.,
Minneapolis, Minn.

and

M.

J.

Dain &

Co.,

Feh 23

Inc.,

.

Colo.

7

derwriter—None.

.

Public Finance

Co.,

Phoenix,

Ariz.

writer—None, sales to be directly by the company or by
•alesman of the insurance firm.
20 filed
of

Boulder,
Underwriter—Lamey & Co., Boulder, Colo.

Birhaye Oil & Uranium CP., Denver, Colo.
April 6 (letter of notification) 1,000,000 shares of class
A common stock (par five cents). Price — 10 cents
per
share.. Proceeds — For mining expenses. Office — 762
Denver Club Bldg., Denver, Colo. Underwriter—Birkenmayer & Co., Denver, Colo/

Mines, Inc.
Jan. 17 filed $900,000 of 8% convertible subordinated
debentures due 1976. Price—100% of principal amount.
Proceeds—To make additional cash payment on purchase
contracted and for mining expenses. Offiee-i—Salt Lake;
City, Utah.
Underwriter — None.
Statement effective

April 30.

B-Thrifty, Inc., Miami, Fla.

Grocers, Inc., Seattle, Wash,
c
common Stock; $2,000,000

5,703 shares of

25-year 5%

registered convertible/debenture notes;
and $1,500,000 of 5%
coupon bearer bonds. Price
Of
stock, $50 per share; and of notes and bonds, 100% of
—

$25).

Price—$38

Proceeds—To open addi¬
Supermarket concern.
Office—5301 Northwest 37th Ave., Miami. Fla. Under¬
tional

retail

per
stores.

share.

Business

Avenue, Boston 16, Mass.
man

Hornblower

&

Weeks and

of America, Inc.

(5/11)

-■

&

Underwriter

—

L, D. Fried-;

Co., Inc., New York, N. Y.

Coleman Engineering Co., Inc.
April 27 filed 40,000 shares of 6% cumulative convertible
preferred stock. Price—At par ($12.50 per share). Pro¬
ceeds
$250,000 to retire short term bank borrowings;
and $192,500 aS additional working capital. Underwriters—Wilson, Johnson & Higgins, San Francisco, Calif.;
Lester, Ryoris & Co., Los Angeles, Calif.; Davis, Skaggs
& Co., San Francisco, Calif.; and Jones, Cosgrove &
Miller, Pasadena, Calif.
—

Colostoma Uranium, Inc.

(5/21)

Nov. 9 filed 2,500,000 shares of common stock

(par one
cent). Price—40 cents per share. Proceeds—For explora¬
tion and development expenses and for general corporate
purposes.
Office—Montrose, Colo. Underwriters—Gen¬
eral Investing Corp., New York; Shaiman & Co., Denver,
Colo., and Honnold & Co., Oklahoma City, Okla.
Colorado Resources, lnc.,

April 27

New York, N. Y.

(lettet of notification)

150,000 shares of com¬

stock (par 10 cents). Price—$2 per share.
—For mining expenses.
Office — 50 Broad

Proceeds
St., New"
Underwriter—A. T. Geyer & Hunt, New

mon

York, N. Y.

York, N. Y.

.

.

Columbia General Investment Corp.
March 29 filed 100,000 shares of common stock (par $1)
to be offered for subscription by stockholders only. Priced

maxiirium of $4.50 per Share.

—A

additional

Proceeds—To make
stock of Columbian
—
Houston, Tex^

including

investments,

Life

Office

Co.

Insurance

Underwriter—None.

■-

7

Commonwealth, Inc., Portland, Ore.
March 23 (letter of notification) 5,912 shares of 6% cu¬
mulative preferred stock to be offered to shareholders
for a period of 30 days and then to others. Price—-At par
($50 per share). Proceeds—For working capital. Office
—Equitable Bldg., 421 S. W. 6th Ave., Portland 4, Ore;
Underwriter—None.

1

?

/

Commonwealth Life Insurance Cd., Tulsa, Okla.
.
March 28 filed 70,000 shares of common stock. Price—To
be supplied by amendment. Proceeds—For working capital, etc. Underwriter—To be named.

it Commonwealth NaturalG*£ Corp.
May 5 filed $1,173,000, of convertible debentures due 1971
to be offered for subscription by common stockholders

$100 of debentures for each 30 shares of
principal amount. Proceeds
—From sale of debentures, together with $2,100,000 from

-

>

at the rate of

stock held. Price—101 Vz% of

;•

private sale of 37/g % first mortgage pipeline bonds, series
C, due June 1, 1976, for retirement of $600,000 of 3%%
notes due July 31, for expansion program and other cor¬
Richmond, Va.

Underwriter

(ft

,t

•

/

—

Scott & Stringfellow,

7

r

'

*

of N. Y-, Inc. (5/22)
April 24 filed $30,000,000 Of first and refunding mort¬
gage bonds; series L, due May 1, 1966.
Proceeds—To
repay short-term bank loans and for construction pro¬
gram.
UnderwritCr-^To be determined by competitive
bidding. Probable bidders: The First Boston Corp. and
Halsey, Stuart & Co. Inc. (jointly); Morgan Stanley &
Co. Bids—Expected to be received up to 11 a.m. (EDT)
Consolidated Edison Co.

May 22.

on

•

,

t

Container Corp. of

America

March 9 filed 115,276 shares of common

stock (par $10)

being offered in exchange for common, stock of The
Mengel Co. at the rate ot one Container share for each
two

The

offer has

become effective,
having been in¬
nearly 90% of the Mengel stock outstanding.
The offer will expire on May 21. Statement effective
Mengel

shares.

Container's holdings of Mengel stock
creased to

v

Continental American

Fund, Inc.,

Jersey City, N. J.
March 30 filed 300,000 shares of capital stock (par $1).
Price—At net asset value plus a premium of 5% of the

Celotex Corp., Chicago, III. (5/16)
April 26 filed $10,000,000 of convertible subordinated
debentures due May 1, 1976. Price—To be supplied by
amendment. Proceeds—For expansion program. Under¬
—

V*foduct£

April 26 (letter of notification) 68,000 shares of class A
common stock (par $1).
Price—$4 per share. Proceeds
—For advertising and promotion of Coffee Time in cur¬
rent markets and new markets.
Office—25 Huntington?

—

writer—None. Statement effective March 7.

writers

Underwriter—None.

Coffee Tirtie

•

March-30.

Nov. 23 filed 37,000 shares of class A. common stock (par

Yazoo, Miss.

loans, to be used to construct and operate a fer¬

tilizer plant.

porate purposes;
com¬

Blue Lizard

Sept. 16 filed 78,006,081 shares of common stock to be
offered for subscription by holders of life insurance
policies issued by Public Life Insurance Co. Price—20
cents per share. Proceeds—For
working capital. Under¬

Associated

(letter of notification) 9,300,000 shares of

stock (par one cent). - Price—Three cents per share.
Proceeds—To be used for exploratory work oh mining
mineral properties. Office—1424 Pearl Street,

mon

• Applied Research Laboratories, Glendale, Calif.
April 23 (letter 6f notification) 1,458 shares Of capital
stock and 71 shares of class B stock
(par $1) to be of¬
fered to certain employees pursuant to stock
option held
bytheih. Price—$8.55 per share. Proceeds—For working
capital. -Office—3717 Park Place, Glendale 8, Calif. Un¬
Arizona

Coastal Chemical Corp.,

General

April 16 filed $2,000,000 of 5% convertible debentures
due May 1, 1968. Price—To be supplied by amendment.
Proceeds—To repay certain obligations. Office — Min¬
neapolis, Minn.' Underwriter—"Carl M. Loeb, Rhoades &
Co., New York.

ITEMS REVISED

Mardi 22 filed 399,986 shares of class A* common stock.
Price—At par ($25 per share). Proceeds—Together With
bank

Tulsa, Okla.

April 30 filed 2,000,000 shares of common stock (par $1).
Price—$1.50 per share. Proceeds—For working capital

Adams

ADDITIONS

SINCE PREVIOUS ISSUE

Extra Sales Power!

Union Securities

Corp.
You
Cherokee Uranium Mining Corp.

sell securities

and services most successfully

to Mid-

America's two

April 5 (letter of notification) $180,000 principal amount
of 6% convertible debentures due April 15, 1966. Price
—100% and accrued interest. Proceeds—For mining ex¬
penses.
Office—608-610 Equitable Bldg., Denver. Colo.
Underwriter—Columbia Securities Co., same city.

big investment markets—professional investors
and the general public—when you advertise in the Chicago
Tribune. Year after year, it is the newspaper which readers
in both groups prefer. For the facts, get in touch with your
advertising counsel or nearest Tribune representative today.

ic Citizens Investing Co..
New York.

?

Boston

Philadelphia

San Francisco

Trivale Wires




Pittsburgh

to

all

offices

Chicago

May 3 (letter of notification) 300,000 shares of
stock.

Cleveland
,

Price

common

At par ($1 per share).

Proceeds — For
working capital, etc. Business — Real estate sales, pur¬
chases and mortgages. Office—1627 East 18th St., Brook¬
—

lyn 29,.-N.T."Underwriter—None:

tmi

woiuo'i

eRiAtiST jcwmria

*

Chicago—S. R. Pietrowicz
910 Inhume Tower,

Superior 7-01001

Now York City—C E Looming
* *

v

;*22Q. E 42nd St, MUrray.Hill.2-303$)

Volume 183 - Number 5532

.

*The Commercial and Financial Chronicle

+

shares

Proceeds—For investment. .Underwriter
r-r^ntmentaLAm^^
Inc^^Jersey
Cjtty^NrJ.f - - ■ offering price.

A common stock

of class B common stock, (par
Price—Of class A stock, $12.50 per share, and

(par $5) and 80,000 shares
50 cents).

,.

stock. Price—^50 cents

Aerwriter—$<wie.
(5/*6)
,
cumulative convertible preferred stock (par $10), of which 125,009 shares
pre to be offered for- subscription by holders of 5%
convertible preferred stock and common stock on the
bpsis of ope new share for each three shares of 5%
preferred stock held and one new share for each eight
jCramptab Manufacturing Co-

12,805

.

Crater Lake Mining A Milling Co., Inc.
March 8 (letter of notification) 575,000 shares of

'Proceeds—To in¬
capital and surplus. Office—Alexandria, La.Un-

pf class B stQpk, 50 cents-per share.
crease

.The. remaining

held.

stock

common,

shares, of. 6%; preferred; stock are to buffered in ex¬
change for^rhe; 6% preferredstock on a share-for-share.
basis.■; Price-r $10 per share. Proceeds—For working
Capital.- Underwriter—Baker, Simonds & Co:, Detroit,:
Mich.: Statement expected to become effective on. or,
about May 15.
:
/
,,

Continental Equity Securities Corp.
March 28 filed 40,000 shares of class

of

(2273) 137

.

April 24 filed 137,814 shares of 6%

•

Cullen Minerals Corp*

common'

per

Crestmark

Cruisers, Inc. (5/16-23)
April 25. (letter of notification) 300,000 shares of com¬
mon stock (par 10 cents).
Price—$1 per share. Proceeds
—For machinery and equipment. Business—Construe-

(Thursday)

May 10

York.

noon

Southern California Gas Co.

$4,800,000

edt)

D. Friedman & Co., Inc.)

(L.

Proceedsr-For mining expenses.

Street, Grand Junction, Colo.
Securities Co., Denver, Colo.

Flrr»n

(Sbman^rotJhers"andIshearsonCInwomuir&" Co.-

The Ohio Co.;. and Stroud & Co., Inc.) $2,040,000
Reading Co.

so.opo shares

>,

May 14 (Monday)
.

KT

Oil

Nemaha

Co.;

"

,

^

cu

Tn«

(Bids
'

Centers, Inc.____--Debentures

(Carl M. Loeb, Rhoades & Co.) $2,000,000

--^
CDT)

(Bids

noon

$2,625,000

Murphy Corp.

ommon
shares

<Lehman Brothers and A. G. Becker & Co. Inc.) 250,000

Pennsylvania Electric Co.
(Bids nopn

-

■

(Eisele

&

Common

4

(Monday)
Stout & Co.)

King, Libaire,

$720,000

Milwaukee Gas Light Co.__.__
(Bids

to

Office—

invited)

be

_

Bonds
.

by competitive bidding.
Langley 8z Co. and Union Secu¬

or

about June 6.

Dennis Run Corp., Oil City, Pa.
Nov. 28 (letter of notification) 46,000 shares of common
stock (par $1).
Price—$6.50 per share. Proceeds—To
pay bank loans and debts; and for working capital.

Under*

Dibbs Aluminum Products, Inc.
(6/4-7)
April 27 filed $36p,000 of 7% convertible subordinated
debentures due June 1, 1966 and 180,000 shares of com¬
mon stock (par 10 cents) to be offered in units of $50
of

debentures and 25

unit.

shares of stock. Price—$100 per
Proceeds—For additional equipment and working

capital.

$13,000,000

_

June 5

Proceeds—For construction program. Un¬
To be determined

Office—40 National Transit Bldg.; Oil City, Pa.
writer—Grover O'Neill & Co., New York.

(Tuesday)

Dibbs Aluminum Products. Inc.—- Debs. & Com.

—Bonds

—

.

^

.Common

...

(Kidder, Peabody & Co.) 228,000 shares

$12,500,000

edt)

Debentures

$25,000,000

Fruehauf Trailer Co
June

-__--Equip. Trust Ctfs.

—

ceived On

0

Goldman, Sachs & c0.4 $300,000,000

Virginia.

Co.; Blyth & Co. Inc. and The First Boston
Corp. (jointly); White, Weld & Co. and Shields & Co.
(jointly); Lehman Brothers. Bids—Expected to be re¬

■

of America—

May 29

Metals Corp.—1-Common

in

Rhoades &

:

Common

.

A

1

.

(Offering to stockholders—no underwriting) 328,400 shares

<Gearhart & otis, inc.) $400,000

Missouri Pacific RR.

'

T

.

——.-Debentures

Co.—

(Morgan Stanley & Co, and

international

Petroleum Corp.

edt)

noon
.

.

General Electric

'

Mountain States Tel. & Tel. Co

—Common

office

(jointly); Kidder, Peabody & Co. and Merrill
Lynch, Pierce, Fenner & Beane (jointly); Carl M. Loeb,

$9,650,000

May 28 (MonSay)

-

(Carl M. Loeb, Rhoades & Co.) 200,000 Units

American Shopping

Brothers)

(Vickers

V

American Shopping Centers, Inc._;

"

<b1f noon edt> $6,600,000

_

Republic Cement Corp..:

(Tueaday)

May IS
a

Common.

———--—

...

an

rities Corp.

,

Equip. Trust Ctfs.

—

(Whitney-Phoenix Co., Inc.) $300,000

t

.

'

;

start

Center Street,

Probable bidders: W. C.

Class A

Humphrey, Inc.; The Milwaukee Co.;

(Hulme, Applegate

Common

Co

Prndurb?

remainder to

derwriter

Reading & Bates OffshoreDrilling Co,

$300,000

Office—1730 North 7th
Underwriter—^Columbia

Dplton Finance, Inc., Chevy Chase, MdApril £0 (letter qf notification) 300,000 shares of com¬
mon class A stock (par 50 cents).
Price—$1 per share.
Proceeds-^-To expand Mt. Ranier subsidiary balance and

about June 4.

j

May 24 (Thursday)

Common

securities corp.)

Common

(Lazard Freres & co.) ioo.oog shares

'

$272,000

Cullen Minerals Corp.(Lepow

—Bonds

Wyandotte Chemicals Corp.
Inc.^_—Class A

Coffee Time Products of America,

1

^Delaware Power A Light Co. (6/6)
i
May 9 filed 232,520 shares of common stock <par $13.50)
to be offered for subscription by common stockholders
of record June 6, 1956 on the basis of one new share
for each eight shares held. Unsubscribed shares are to
be offered to employees. Price—To be fixed by the board

(Bids 8:30 a.m. PDT) $40,000,000

.

May 11 (Friday)

and for Expansion and working
Underwriter —Lepow Securities Corp., New

'

Chevy Chase, Md.
Underwriter —
Whitney & Co., Inc., Washington, D. C.

i
Debentures
<B>yth & Co inc. .nd Hombiimer & weeks) $30,000000

■'

^

J>a(jnid juii $ |lranimnir Inc., J£r*itd Junction» Colo.
April 10 (letter of notification) 2,700,000 shares of cbmmion stock (par one cent). Price—^10 cents per share.

4304

Lockheed Aircraft Corp.__

x

Chesapeake & Ohio Ry.—--Equip. Trust Ctfs.
(bids

CALENDAR

(5/11)

—To repay bank loans,

the

ISSUE

NEW

(Texas)

March 30 (letter of notification) 300,000 shares of com¬
mon stock (par 10 cents). Price—$1 per share.
Proceeds.

capital.

share. Proceeds^-For mining
.expenses.
Office — 1902 East San Rafael, Colorado
Springs, Colo. Underwriter — Skyline Securities, Inc.,
Denver, Colo.
•

tion of ports cruisers. Offiee — 472 Fire Island Ave»»
Babylon, »L^L, N,, ;Y.., Underwriter—Lepojv ^Securities
Corp., Nfewv Yoric. : 6 ;
x
2

Business—Manufacturer

of aluminum awning
windows, jalousies, and similar products.
Office
Tampa, Fla. Underwriter — Eisele & King,
Libaire, Stout & Co., New York.
,

and casement

.

(Tuesday)

—

Pennsylvania Electric Co

Benrus

13,000

& Co.)

F. Rothschild

(L.

(Bids

(Offering

$10,000,000

and Union Securities Corp.)

Weeks

to

(Lepow Securities Corp.) $300,000
rvtt.

Fnnin

rtfs

Trust

VT *
..

Lewisohn Copper Corp.———__—--_-Common
(George,,
Breen) 100,Qp0„shares
,

Sierra Pacific Power Co.—
Preferred
(Exchange offer—to be underwritten) $4,025,000

i—1

Tiarco Corp.

(Offering*

"be

Common

Brothers)

underwritten

225.8J0 shares

June 20 (Wednesday)
United States Life Insurance Co. of ■
New York

Common

Co!..

Bonds

—Preferred

—

(Bids may be invlWd) sis,000,000
/

July 10

(Tuesday)

Elizabethtown Water Co. Consolidated
(Bids to be invited)

^

.

(Wednesday)

j„iy 25

...Bonds
(Wednesday)

--—Debentures

(BWs to be invited) $30,000,000

$299,370

Common

Co.)

.

September 11

(Tuesday)

Bonds

Carolina Power & Light Co
(Bids to be invited) $15,000,000

(Dominick & Dominick) 141,420 shares

Miles Ave., Cleveland 5, Ohio.

Underwriter—None.»

^ Dorr-Oliver, Inc., Stamford, Conn.
May 3fl (letter of notification) ;not, to exceed;17,5Q0 shares
of

common stock to be offered pursuant to tenure stock¬
holding and deferred compensation plan for key em¬
ployees. Price—At par ($7.50 per share). Proceeds—For
general corporate purposes. Office—Barry Place, Stam¬
ford, Conn. Underwriter—None.
4

Douglas Corp., Fort Collins, Colo.
March 26 (letter of notification) 2,997,800 shares of com¬
stock (par one cent). Price — 10 cents per share.
Proceeds-^-For mining expenses. Office—155 North Col¬

lege Ave., Fort Collins, Colo. Underwriter
Securities Co., Denver 2, Colo.
•

—

Columbia

*s%

Puke Power Co.

shares of common stock (no par)
being offered for subscription by common stockholders
of record May 3, 1956 at the rate of one new share; for
each 25 shares held (with an oversubscription privilege);
rights to expire

on

May 21, 1956.

Price—$25

Proceeds—For construction program.
N. C. Underwriter—None.

per

share.

Office—Charlotte,

Durango Minerals A Oil Co.
April 23 (letter of notification) 3,000,000 shares of com¬
stock. Price—At par (five cents per share). Pro¬
ceeds—For mining expenses. Office—32 Exchange Place,
Salt Lake City, Utah.
Underwriter—Filosa Securities
Co., Grand Junction, Colo.

mon

(Bids to be invited) $20,000,000

Consolidated Natural Gas Co

Ponley Brothers Co., .ClevelenjJ, Ohio
April 23 (letter of notification) 1,000 shares of 5% cumu¬
lative preferred stock and 2,000 shares of common stock.
Price—At par ($100 per share). Proceeds—For expan¬
sion, new plant and additional equipment. Office—13,900

-Debens.

$7,500,000

Florida Power Corp

filed 500,000 shares of common stock (par 10
Price — $1 per share. Proceeds — For working
capital, to be devoted mainly to acquiring, exploring,
developing and operating oil and gas properties; and to
pay off $13,590.80 liabilities.
Underwriter — James C.
McKeever & Associates, Oklahoma City, Okla.
23

cents).

March 30 filed 367,478

(Monday)

June 2$

Corp., Carrollton, Tex.

mon

!

'

-

July 11

Preferred & Common

(Taimage & Co.)

Mark (Clayton &

-

a«tal Edison
•_..•.

$3990000
$3,900,000

Publ-Check Corp.—

Common

to stockholders—to be underwritten by Morgan
Stanley & Co. apd Robert W. Baird & Co., Inc.) 76,543 shs.

EDT) $30,000,000

EOT)
EDT)

noon
noon

(Monday)

by

*
(Bids
(Bids

-Bonds

(Offering

Delaware, Lackawanna & Western RR.
1

&

(Bids to be invited) $10,000,000

(Tuesday)

a.m.

Banking & Trust Co.—Common

Indianapolis Power & Light Co.

Common

Consol. Edison Co. of New York, Inc._^
(Bids 11

^.Common

Rhoades & Co.) 100,000 shares

White Eagle International Oil, Inc.
—Common
(Paine, Webber, Jackson & Curtis) 1,156,250 shares

May 2?

$5,200,000

and Smith, Barney & Co.) 202,800 shares

.—

Lehman

co.)

(Offering to stockholders—to be underwritten by William
Blair & Co.; The First Boston Corp, and Carl M. Loeb,

.

stockholders—to be

&

„

First Pennsylvania

Johnson,

JGeueral Ipvustiag Corp. and Shaiman A M IWUT
Monterey Oil Co.--—
-—---Lommon
to

scranton

r"'(Offering'to stdckholdcrs-^'fo bek Orlderwritten by Drexel
Co.; Merrill Lynch, Pierce, Fenner & Beane;

(Monday)

Colohoma Uranium, Inc.—-—

(Offering

_

—Preferred

w.

June 11

(Friday)

'

,

chas.

(bffering.to stockholtiers^-to. be, underwritten by Putnam &
Co.AV ttnd7£ai$^"W. ^srariton & Co.1f 71,132 shares

Bonds

(Offering to stockholders—to ,be underwritten by
Lane. Space & Co,) 159,561 shares

May 31

and

_

Chain Belt Co.———————

First Railroad & Banking Co. of Ga._

^

,

Connecticut Power Co.———

CDT) $15,000,000

M#y IS

Co.

&

,.

underwritten by

Northern Illinois Gas Co.——
(Bids JO a.m.

(Thursday)

^

(Putnam

375,000 shares

(Thursday)

17

May

Common

——

stockholders—to

to

Charles Plohn & Co.)

Common
Equip. Trust Ctfs.

—

Connecticut Power Co.—
_

——-^7(Bids noon EDT)^$6,225,000

by

(Bids noon edt > $9,660,000
,

rnmmnn

Crestmark Cruisers, Inc.—_——Common
Tjo

Feb.

underwritten

(Offering to stockholders—bids to be invited) 232,520 shares
June 7

Bpker, Simonds & Co.) $1,378,140
^

be

.

Doctors Oil

—Common

stockholders—to

Southern Pacific Co.

(Offering to stockholders—to be underwritten by

.

$50,000,000

$*»$

Preferred

Crampton Manufacturing Co.——

H.rie

Bonds
to

$35,000,000

.*

,

.

Debentures

Celotex Corp

invited)

Delaware Power & Light Co

(Ralph E. Samuel at Co.) n.ooo shares

(Hornblower &

be

Braniff Airways, Inc

'

shares

Co., Inc.—.———-Common

Watch

to

June 6 (Wednesday)

rnc.—-Common

Watch Co.,

Commonwealth Edison Co

$9,000,000

(Wednesday)

May 16
Behrus

—.Preferred

....

(Bids noon EDT)

Eastern Corp., Bangor, Me.
April 9 filed $4,090,200 of 4y2% convertible subordin¬
ated debentures due May 15, 1981, being offered for sub¬
scription by common stockholders of record May 1,1956,
the basis of $100

of debentures for each nine shares
held; rights to expire on May 15. Price
—At par (flat).
Proceeds—Together with funds from
sale of $10,000,000 of senior notes to institutional in¬
vestors, to repay outstanding indebtedness, to construct
a new bleached kraft pulp mill at a cost of $10,000,000^
and to acquire an 80% interest in the capital stock of
Ascot Chemical & Adhesive Corp. for $1,000,000. Busi¬
ness—Manufacturer and seller of paper and pulp. Un¬
derwriter—White, Weld & Co., New York.
on

of common stock

May 23

R. W.

...Common

-

(Offering to stockholders—to be
& Co. and

September 25

(Wednesday)

Adams Express Co

underwritten by Hallgarten

Hornblower & Weeks)

10

CDT)

a.m.

Bonds
$7,500,000

& Light Co

(Bids 10:15 a.m.




CDT) 249,558 shares

October 1 (Monday)
Tampa Electric LO.

___r>onas

(Bids to be invited) $10,000,000

$5,277,500

& Light Co
(Bids

Iowa Power

Bonds

—

(Bids to be invited) $20,000,000

Pressprich & Co.) 528,792 shares

Eastern Stainless Steel Corp.Debentures
(Offering to stockholders—to be underwritten by
Iowa Power

(Tuesday)

Virginia Electric & Power Co

•

Common

October 2

UCXODer A

(Tuesday)

(luesaay/

Columbia Gas System.
(Bids to be invited) $30,000,000

Debentures
b

Continued

on

page 38

The Commercial and Financial Chronicle

Stainless

Eastern

(5/23)

Steel Corp.

May 1 filed $5,277,500 of 15-year convertible
debentures to be offered for subscription

subordinate

offered

by common
stockholders of record May 22 on the basis of $100 of
debentures for each 11 shares of common stock held;
rights to expire on June 6. Price—To be supplied by
amendment.
Proceeds—For expansion program.
Un¬

.

Products Co.

Ekco

Eureka Corp.,

For

Business

—

of 7% pre¬
Proceeds—

Hill & Hill

March

of record May 18, 1956.

&

Co.

and

Clement

A.

Co., Inc., both of New York.

\ Florida Sun Life Insurance Co.

business.

per

share.

$1).

Proceeds—To expand company's

Office—Fort

Lauderdale, Fla. Underwriter—
None. Offering will be made through James C. Dean,
President of company.
Florida Towers

Corp., Clermont, Fla.

April 30 (letter of notification) $90,000 of 6% first mort¬
gage? notes. Price—At par (in multiples of $500 each).
Proceeds
To
complete construction of commercial
—■

building, for improvements and working capital. Under¬
writer—None.

Fort Pitt

Packaging International, Inc.

June 30 filed 300,000 shares of common stock (par 10#),
of which 250,000 shares of for account of company an#

60,000 shares of five selling stockholders. Price—$3 per
Proceeds—For working capital; for exploitation
of "Totosave" system; and for marketing of "TropicHay" infra-red space heater. Office — Pittsburgh, Pa
Underwriter—Barrett Herrick & Co., Inc., New York.

share.

Frigikar Corp., Dallas, Tex.
April 18 filed 104,500 shares of common stock (par 50
cents). Price—To be supplied by amendment. Proceeds
—To selling stockholders. Underwriters—Southwestern
Securities Co., Dallas, Tex., and Muir Investment Corp.,
San Antonio, Tex.
Gas Hills

Mining and Oil, Inc.
(letter of notification) 1,200,000 shares of

Jan. 4
mon

stock

(par five cents). Price

Proceeds—For

expenses

Office—Kemmerer, Wyo.

incident

—

25 cents

to mining

*

per

com¬

share.

Underwriters-Philip

Gordon

& Co., Inc., New York 6, N. Y.

general Electric Co. (5/15)
April 25 filed $300,000,000 of sinking fund debentures
due 1976. Price—To be
supplied by amendment. Proceeds
—To retire bank loans and for
capital expenditures and
working capital. Underwriter
Morgan Stanley & Co.
and Goldman, Sachs &
Co., both of New York.
General

Uranium Oorp.

(N. J.), New York
400,000 shares of common stock (par 10
cents). Price—$1 per share. Proceeds—For plant facil¬
ities, survey of property and underground development.
18

filed

Hometrust Corp., Inc., Montgomery, Ala. 5 filed 125,000 shares of common stock (par

Golden

Maurice Schack, Middletown, N. Y.,
Statement effective March 11.

Dawn

Uranium Corp., Buena Vista, Colo.

Dec. 27 (letter of

notification) 3,000,000 shares of capital

stock

ceeds

Idaho-Alta Metals Corp.

March

'*

./-<

*,

-

-•

•„

•

t.

^on

may

May 23 at 111 West Monroe St., Chicago, 111.
Israel-Rassco

Investment

Co.,

Price—At

Israel pounds each, or about $55 in U.
in State of Israel Independence Issue

Ltd.
par

(106

S. funds), payable

Bonds only. Offftee
;—Tel Aviv, Israel. Underwriter — Rassco Israel; Corp*
J : *v v

jNew York.

Jurassic Minerals, Inc., Cortez, Colo. /■:
Aug. 26 (letter of notification) 2,855,000 shares of non¬
assessable common stock (par one cent). Price—10 cents
per share.
Proceeds—For expenses incident to mining
activities. Office — 326 West Montezuma St.; Cortez,

$1).

.Colo.

Underwriter

Kassel

:

Feb.

—

Bay Securities Corp., New York,

Industrial Dynamics Corp., Wilmington, Del.
April 3 (letter of notification) 150,000 shares of common
stock (par $1). Price — $2 per share. Proceeds — For
working capital.
Office—100 West Tenth St., Wilming¬
ton, Del.
Underwriter —World Wide Investors Corp.,
Hoboken, N. J.

Industrial Minerals Development Corp.

.Colorado.

Inter-County Tel. & Tel. Co.
April 16 filed 25,000 shares of common stock (no par).
Price—To be supplied by amendment. Proceeds—To re¬
pay bank loans and for construction program.* Office—
Fort Myers, Fla. Underwriter — Central Republic Co.,
Inc., Chicago, 111. Offering—Expected this week.
Atomic Devices Corp.
(letter of notification) 59,900 shares of common
stock (par $2). Price — $5 per share. Proceeds — For
working capital and general corporate purposes. Busi¬
International

Feb. 21

Office—

St., Trenton 8, N. J. Underwriter—
Louis R. Dreyling & Co., Jamesburg, N. J.

120,000 shares of capital

10 cents), of which 20,000 shares are being

.

J*

...

;

if Kern Mutual Telephone Co., Taft, Calif.
May 1 (letter of notification) 12,000 shares of cumulative
preferred stock, series A. Price—At par ($25 per share).
'Proceeds^For retirement of outstanding preferred stock
and notes payable. Address—Taft, Calif. Underwriter—
Central Republic Co., Chicago, 111.; Bailey & Co., Fresno,
Calif.; and Hill Richards & Co., Los Angeles, Calif.
...

(G. J.) & Associates, Inc.
(letter of notification) 2,911 shares of class B
common stock.
Price — At par ($10 per share) to be
offered to employees of company. Office—402 East 63rd
St., Kansas City, Mo. Underwriter—None.
'

if Keyes
J

April 24

Lewisohn

•

Copper Corp. (5/16-17)
100,000 shares of common stock (par 10
cents). Price—To be supplied by amendment. Proceeds
—For exploration and evaluation of leasehold properties,
improvements, equipment and for general corporate
purposes.
Office—Tucson,: Ariz.
Underwriter—George
,F. Breen, New York.
■-%.
March 30 filed

-

.

,

if Lockheed Aircraft Corp., Burbank, Calif, i (5/23)
May 2 filed $30,000,000 of debentures due May I, 1976.
PriceL.r-r To be supplied by amendment. Proceeds

„* working capital.

—

For

Underwriters—Blyth & Co., Inc., and
"

Hornblower & Weeks.

Long Island Lighting Co.
'
April 5 filed 120,#00 shares of cumulative preferred stock,
series G (par $100).- Price—To be supplied by amend¬

Insulated Circuits, Inc., Belleville, Nn/J.-'

Underwriter—Alexander Watt & Co., Inc., has
as underwriter; new one to be named.

(par

Hamilton Co. and 100,000 shares by-Kassel
Price—$2.25 per share.
Proceeds—For min¬
ing expenses. Office—1019 Adolphus Tower Bldg., Dal¬
las, Texas. 1 Underwriter—First Western Corp., Denver,

ment.

Proceeds—To repay bank loans.
Underwriters—
Blyth & Co., Inc., The First Boston Corp. and W. C.
Langley & Co., all of New York. Offering — Postponed

Nov. 10 filed 100,000 shares of 6% convertible preferred
stock (cumulative if and to the extent earned). Price—
At par ($5 per share). Proceeds—For general corporate
withdrawn

Metals, lnc.r

company.

.

1,000,000 shares of com¬
mon stock. Price—Five cents per share.
Proceeds—For
development and working, -capital. Office—Moab, Utah.
Underwriter—I. J. Schenin Co., New York.
-.
"

Base

(letter of notification)

sold by Burt

■'

T

bonds due
1986. Proceeds—To repay bank loans and for construc¬
tion program. Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Union Securities Corp.; Blyth & Co., Inc.; Leh¬
man Brothers, Goldman, Sachs & Co. and The First Bos¬
ton Corp. (jointly); W. C. Langley & Co., White, Weld
& Co. and Shields & Co. (jointly); Kuhn, Loeb & Co.;
Equitable Securities Corp.; Hemphill, Noyes & Co. and
Drexel & Co. (jointly). Bids—Expected June 7. ;

6

stock

••

if Indianapolis Power & Light Co. (6/7)
May 8 filed $10,000,000 of first mortgage

North Willow

Probable bidders

Sept. 28 filed 9,000 ordinary shares.

Ideal-Aerosmith, Inc., Hawthorne, Calif.
(letter of notification) 150,000 shares of capital
itock (par $1).
Price — $2 per share. Proceeds —For
equipment, machinery, inventory, etc.; Office—12909 So.
Cerise Ave., Hawthorne, Calif. Underwriter—Samuel B.
Franklin & Co., Los Angeles, Calif.

purposes.

competitive bidding.

by

"Isras"

.

Dec. 16

-■

mined

include Smith, Barney & Co.; The First Boston Corp.
.Bids—Expected to be received up to 10:15 a.m.'(CDT)

.

(letter of notification) 120,000 shares of com¬
mon stock (par 10 cents).
Price—$1.50 per share. Pro¬
ceeds—For exploration and development expenses. Un¬
derwriter
Fenner Corp. (formerly Fenner-Streitman
& Co.), New York.

18

i

•

Iowa Power

-

sljares represent stock which may be acquired in stabi¬
lizing transactions. Proceeds—To retire bank, loans and
for construction program.
Underwriter—To be'deter-

7

ness—Manufacture of Educational Atomic Kits.




•

New York.

(par five cents).

Price—10 cents per share. Pro¬
For mining expenses. Underwriter — Bel-Air

111.

cago,

■i

writer—None.

—

Securities Co., Provo, Utah.

Blyth & Co., Inc.; Lehman Brothers; Kuhn, Loeb & Co.
Bids—Expected to be received up to* 10; a.m. (CDT)
■ion May 23 atr Room ,1701,
111 West Monroe St., Chi-

Price—$5 per share. Proceeds — To expand operations
of subsidiary and increase investment therein. Under¬

Underwriter—None.
is President.

Kidder, Peabody & Co.; White, Weld & Co.; Union Se¬
curities Corp. and Blair & Co. Incorporated (jointly);

"

Calif.

—

Jan.

competitive

Probable bidders: Halsey, Stuart & Co. Inc.;
First
Boston
Corp.; Equitable Securities Corp.;

The

April 13 (letter of notification) 250,000 shares of capital
stock. Price—At par ($1 per share). Proceeds—For min¬
ing expenses. Address — P. O. Box 308, Winterhaven,
Calif. Underwriter—Arthur B. Hogan, Inc., Hollywood,

March 7 (letter of notification)

operations.

Co.. New York.

Power &

bidding.

—

March 16 filed 32,000 shares of common stock (par

369-375 DeKalb Ave.. Brooklyn 5,

Underwriter—To be determined by

gram.

,

Jan.

Starkweather

Corp.

Light Co. (5/23)
April 25 filed $7,500,000 first mortgage bonds due 1986.
Proceeds—To repay bank loans and for construction pro¬

Fund

Holden Mining Co., Winterhaven, Calif.:

—

Price—$10

1956 Oil Exploration Capital

Business—George P. Hill
and Houston Hill are engaged in exploration for and
production of oil and gas as a joint venture. Office—
Fort Worth, Tex. Underwriters — William D. McCabe
and E. S. Emerson, South Texas Bldg., San Antonio, Tex.

class A share for each five shares of common stock held

—

—

Underwriter—Kamen &

Iowa

filed

atory-well costs and expenses.

of Georgia (5/18)
April 19 filed 225,000 shares of class A common stock
(par $1), of which 159,561 shares are to be offered for
subscription by common stockholders on the basis of one
First Railroad & Banking Co.

Evans &

13

$450,000 of participations in this Fund
to be offered for public sale in minimum units of $15,000.
Proceeds—For payment of various property and explor¬

Broadway, New York, N. Y. Underwriter—Basic Indus¬
tries Corp., 31 State St., Boston, Mass.

if Florida Public Utilities Co.
t
May 3 (letter of notification) 25,000 shares of common
stock (par $3). Price—To be supplied by amendment.
Proceeds
To pay off bank loan and for construction
program. Office—338 Datura St., West Palm Beach, Fla.

Industries

Light Co* (5/23)
^
Harrison
April 25 filed 249,558 shares of common stock (par $10)
(D. L.) Corp., Dallas, Texas
>
April 18 (letter of notification) 100,000 shares of com-., rof which 226,871 shares are to be offered for subscrip¬
mon stock (par 10 cents).
Price—$2.50 per share. Pro¬ tion by common stockholders on the basis of one new
rshare fb^each eight shares held as of record May 23,
ceeds
For equipment, raw materials and working
capital. Underwriter—Garrett & Co., Dallas, Texas. ; *- 1956; rights t® expire on June 7. The'balance of 22,687

Corp.

159,561 shares.

Y.

N

Hard Rock Mining Co.,

Pittsburgh, Pa.
Feb. 20 (letter of notification) 1,000,000 shares of com¬
mon stock (par one cent).
Price—Five cents per share.
Proceeds—To purchase machinery and equipment and
for working capital. -Office — 377 McKee Place, Pitts-btirgh, Pa. Underwriter—Graham & Co., Pittsburgh, Pa..

Plastic

Office

ment, etc.

None.
.

The remaining 65,439 shares are
to be offered to a selected group of licensed general in¬
surance agents in Georgia and South Carolina., Price—
To be supplied by amendment. .Proceeds—To purchase
stock of First of Georgia Fire & Casualty Co. (to be
formed) and for general corporate purposes. Underwriter
—Johnson, Lane, Space & Co., Inc., Savannah, Ga., for

24,000 shares of capital

(par $5)

if Gunn & McCrary, Inc., Shreveport, La.
t
April 20 (letter of notification) 97,900 shares of common
stock. Price — At par ($1 per share). Proceeds — For
development of producing oil properties. Office — 512
Ricou-Brewster Bldg., Shreveport, La.
Underwriter—

capital

Underwriters

International

Oct. 12 (letter of notification) 150,000 shares of common
stock (par 10 cents).
Price—$2 per share. Proceeds—
For advances to Arliss Co., Inc. for .purchase of equip¬

to be offered first to stockholders; then
policyholders and the public. Price—$10 per share. Proseeds—For working capital. Address—P. O. Box 2231,
Baton Rouge, La. Underwriter—None.

and general corporate purposes.
General brokerage business. Office — 165

working

Southwestern Securities Co., Dal¬

(letter of notification)

30

Dec.

itock

1956 at the rate of one new share for each five
shares held. The remaining 285,714 shares are to be is¬
sued to the underwriters as compensation in connection
with the offering.
Price—$1.75 per share. Proceeds—
To explore, develop and exploit the TL Shaft area. Un¬
derwriters—Alator Corp., Ltd. and Rickey Petroleums
& Mines, Ltd., both of Toronto, Canada.

Lewis

—

Guaranty Income Life Insurance Co.

18,

First

Underwriter

ploration and development of mining properties of ReMineros Mexicanos, S. A., Mexican subsidiary,
ind to discharge note. Office — Houston, Tex.
Under¬
writer—Gearhart & Otis, Inc., New York.

las, Texas.

April 18 (letter of notification) 100,000 shares of com¬
mon stock (par $1).
Price—$2 per share. Proceeds—For
working capital and will be used to pay operating ex¬
penses of the present weekly telecast over Station WATV^
and for expansion of such program. Office—80 Wall St.,
New York City.
Underwriter — 20th Century Pioneer
Securities Co., Inc.
*

filed

cursos

ment.

American TV Hour, Inc.

Metals Corp.
(5/15)
400,000 shares of common stock (par 10
Price—$1 per share. Proceeds—To ^nance ex¬

4

Griggs Equipment Co. capital stock for $1,924,565, and
for working capital.
Business — Public seating equip¬

.

March 1 (letter of notification) 60,000 shares
ferred stock. Price—At par ($5 per share).

International

cents).

April 30 filed 2,276,924 shares of common stock (par 25
cents-Canadian), of which 1,991,210 shares are to be
offered for subscription by stockholders of record May

First Hellenic

•

.

April 12 filed 400,000 shares of common stock (par 50(f)Price — $5.75 per share.
Proceeds — For purchase of

and

Ltd., New York

Underwriter—None.

Griggs Equipment, Inc., Dallas, Texas

April 23 filed 50,000 shares of common stock (par $2.50).
Price—To be supplied by amendment. Proceeds—To a

trust. Underwriters — Lehman Brothers
Shearson, Hammill & Co., both of New York.

Temple St:, Salt Lake City, Utah. Underwriter—Melvin
G. Flegal & Co., Salt Lake
City, Utah

employees of the company. Price
$50 per
capital. Office—6102 Har-

risburg Blvd., Houston, Tex.

(5/11)

private

to

Thursday, May 10, 1956

Jan. 27

share. Proceeds—For working

derwriter—Hornblower & Weeks, New York.

•

.

International Basic Metals, Inc.
(letter of notification) 1,000,000 shares of com¬
mon stock
(par 10 cents)., Prfce — 25 cents per share.
Proceeds—For mining expenses. Office—155 West South

if Gray Tool Co., Houston, Texas
May 3 (letter of notification) 3,270 shares of class B stock
(no par), of which 1,000 shares are to be offered pro
rata to the holders of class A stock and 2,270 shares are

37

Continued from page

•

.

(2274)

38

because of present unsatisfactory market conditions.
;

if< Los Angeles Airways, Inc., Los Angeles, Calif.
April 23

(letter of notification) 645 shares of common
(par $10).- Price — $54 per share. Proceeds— To
Clarence M. Belinn? the selling stoekholder. Office—5901
West Imperial HighwayrLos Angeles 49, Calif. Under¬

stock

writer—Dean Witter &
:

Co.y, Los Angeles, Calif..

.

Lumberman's Investment & Mortgage Co.

May 2 filed 50,000 shares of common stock- (par $10).
Price—$12 per share. Proceeds—For working capital and
general corporate purposes.
Underwriter—None.

Office

—-

Denver,

Colo-.

M. & D. Display Mfg. Corp., Alhambra, Calif. fApril 20 filed 100,000 shares of common stock (p&r $1).
Price—To be supplied by amendment. Proceeds — For

Volume

Number

183

5532

.

.

The Commercial and Financial
Chronicle

.

(2275)
plant construction; machinery and equipment; to retire
existing indebtedness; and for other corporate purposes.\
Underwriters

Bateman, Eichler & Co., Los Angeles,
Calif; and Dempsey-Tegeler & Co., St. Louis, Mo.

four shares

held (with an
oversubscription privilege);
rights to expire May 22, 1956. Price
$30 per share.
Proceeds—For investment. Underwriter—None.

,

.

.

,

National Fuel Gas Co.
March 28 filed 447,797 shares of

•

Manufacturers Cutter Corp.
Oct. 18 (letter of

notification) 300,000 shares of class A
common stock. Price—At
par ($1 per share). Proceeds—;
To repay loans, and for new
equipment and working capital. Business—Cutting tools. Of f ice-^275 Jefferson
St., Newark, N. J. Underwriter—Paul G. Ferguson & Co., •
pity.,

1

t

;

-

—

working capital and general corporate purposes. Busi-i
ness—Manufacture and sale of water well supplies and*

Denver, Colo. Underwriter
same
city,
V. V
V-' ■

vyater systems; tubing and forged steel unions

and fit¬
Underwriter—Dominick & Dom.inick, New York.-

of

shares of

common

stock

to

be

offered

sub-

B

:

inventories for

new supermarkets in
premises
Underwriter—None.

lease.
'

Mesa

now under

& Gas Ventures, Inc.
(letter of notification) 900,000 shares of com¬
stock (par one cent). Price —15 cents
per share.

Proceeds—For expenses incident to oil and
gas proper¬
ties. Office—421 Glenwood Ave., Grand
Junction,-Colo.*
Underwriter—Columbia Securities Co.,. Denver, Colo.:
t

Midland General

Jan.

12

Hospital, Inc., Bronx, N. Y,

1

filed

30,000

—

—

Mineral

•

Projects-Venture C, Ltd., Madison, N. J.

Feb. 7 filed $4,000,000 of participations in
capital as lim¬
ited partnership interests in the venture to be sold in
minimum units of $25,000.
Proceeds—For expenses in¬
cidental to oil exploration program.
Underwriter—Min¬
eral Projects Co., Ltd., on "best efforts basis."

Mission Appliance Corp. of Mississippi
April 23 (letter of notification) 7,475 shares of preferred
stock (par $20) and 29,900 shares of common stock
(par,-$5)<to be offered in units of one preferred and four com¬
shares.

mon

Price—$40

per

unit.

Proceeds

—

Fbr pur¬

chase of

machinery and equipment. Office—New Albany,
Underwriter—Lewis & Co., Jackson, Miss.
-

Miss.
r

Mohawk Silica Co., Cincinnati, Ohio
March *23 (letter of notification) 3,000 shares
cumulative

convertible

preferred

of

8%/

(par $50) and
3,000 shares of common stock (no par) to be offered in
units of one share of preferred and one share of
common.
Price
$60 per unit.
Proceeds—-For mining expenses
and processing silica. Office—2508 Auburn
Ave., Cincin¬
nati, Ohio. Underwriter—None.
.•
—

•.Monterey Oil Co., Los Angeles, Calif. (5/21 f":
April 25 filed 225,810 shares of common stock (par>"$l)
to

be

offered

to

common *

stockholders

May 18, 1956, at the rate of one new share
shares held; rights to expire on June 4.

of

record

for each

s&yeri

Price—To; be
supplied by amendment. Proceeds—To carry on a
pro¬
gram of offshore oil exploration with The Texas -Co.
along the southern California coastline. Underwrite*—
Lehman Brothers, New York.
Mormon Trail Mining
Corp., Salt Lake City, Utdh
(letter of notification) 3,000,000 shares of capital

Feb. 9
stock

(par

one

cent).

Price—10

cents

per

share.

Pro¬

ceeds—For mining expenses. Office—223
Phillips Petrol¬
eum

Bldg., Salt Lake City, Utah. Underwriter—Frontier
Investment, Inc., Las Vegas, Nev.
^ Mountain States Telephone & Telegraph
-

'(5/28)

*

Murphy Corp., El Dorado, Ark. (5/15-16)
April 25 filed 250,000 shares of common stock
(par $1).

Price—To be supplied by amendment. Proceeds
For
retirement of $112,000 of 3% unsecured debenture
bonds;
$600,000 for investment in a proposed bromine
—

and

for

and

natural gas;

project;

other corporate

purposes.
Business—Crude oil
also liquified petroleum products. Un¬

derwriters— Lehman
Brothers, New
Becker & Co. Inc., Chicago, 111.

York;

and

A*

G.

Mutual Investors Corp. of New York
(letter of notification) 295,000 shares of com¬
mon stock
(par 10 cents). Price—$1 per share. Proceeds
—For working capital. Business—To
purchase and resell
mortgages and properties. Office—550 Fifth
Ave., New
York, N. Y. Underwriter—Stuart Securities Corp., New
York.
March 21

•

National

April

17

Aviation

filed

being offered
May 8, 1956,

Corp.

139,523 shares of capital stock (par $5)
for subscription by stockholders of
record
on the basis of one new share for each




stock

(par $1)

stockholders

common

rights to expire on May 23. Price—To
by amendment.
Proceeds
Together with
funds from private sale of
$2,000,000 of first mortgage
bonds, for construction program.
be supplied

Weld &

Co., New York.

Pinellas
Feb.

—

16

Underwriter—White,

Offering—Expected this week.

Industries, Inc., St. Petersburg, Fla.

)

(letter of notification) 8,000 shares of class A
stock (par $1).
Price—At the market (maxi$6). Proceeds—For working capital. Office—34th

common
«

St: & 22nd

Ave., North, St. Petersburg, Fla. Underwriter

stock

—Eisele & King, Libaire, Stout &
Co., New York.

stock

^ Pittston Co.
May 4 filed 750 participations in the company's
Savings
Investment Plan for Salaried
Employees, and 10,000
shares of common stock (par
$1) which may be sold to
employees under the Plan.

Price—To be supplied by amendment.
selling stockholders. Office
Little

Pro¬

Rock,
Ark.
Underwriter—Equitable Securities Corp., Nasbville, Tenn., and New York, N. Y.
Offering—Indefinitely*
—

oostponed.

Power-Freeze, Inc., Atlanta, Ga.
notification) 3,300 shares of

•

Nemaha Oil Co., Dallas, Texas
(5/14)
April 11 (letter of notification) 200,000 shares of common
stock (par $1).
Price—$1.50 per share. Proceeds—For
exploration and development costs and t® retire out¬

standing indebtedness. Office
2206 Mercantile Bank
Bldg., Dallas, Tex, Underwriter—Whitney-Phoenix
Co.,
Inc., New York.

March 28 (letter of

common

stock

(no par). Price—$15 per share. Proceeds—To re¬
outstanding obligations and for inventory and
working capital. Underwriter—Franklin Securities
Co.,
Atlanta, Ga.
duce

.

Niagara Uranium Corp., Salt Lake City, Utah
April 3 (letter of notification) 2,400,000 shares of com¬
stock

mon

Proceeds
State

(par 3y3

cents). Price—10 cents
mining expenses. Office

For

—

—

St., Salt Lake City, Utah.
Co., Denver, Colo.

per

share.

345

South

Underwriter—Birken-

mayer &

Nicholson (W. H.) & Co.,
Wilkes-Barre, Pa.
Jan. 16 filed 20,000 shares of common
stock (par $5)..
Price—$25 per share. Proceeds
For working capital.

Underwriter—None. A. E. Nicholson Jr. of
Kingston, Pa.
is President.

North
March 15

«

-

...

„

..

.

'5

'

Star

Uranium, Inc., Spokane, Wash.*>
(letter of notification) 1,500,000 shares of com¬

mon
stock (par 10 cents).
Price—15 cents per share.
Proceeds—For mining expenses. Office—W. 408
Indiana

Avenue,

Spokane,

Wash.

Underwriter—Pennaluna

&

Prudential Federal Uranium
Corp.
March 21 (letter of

notification) 6,000,000 shares of com¬
stock (par two cents).
Price—Five cents per share.
Proceeds—For mining expenses.
mon

Pulaski Veneer & Furniture
Corp.
March 28 filed 170,000 shares of common

Price—$5.75

Nucleonics, Chemistry & Electronics Shares, Inc.

Feb.

17

filed 400,000 shares of capital stock
(par $1).
Price—To be supplied by amendment
(expected at $10

share). Proceeds — For investment. Office—Englewood, N. J. Underwriter
Lee Higginson Corp., New
Name Changed—From
Atomic, Chemical & Elec¬
tronic Shares, Inc. Offering—Not
expected until the lat¬
per

—

York.

ter part of June.

Old National Insurance
Co., Houston, Tex.
March 29 filed 48,108 shares of
capital stock (no par) to
be offered for
subscription by stockholders on the basis
of one new share for each nine
shares held (with an

oversubscription privilege).
and

Proceeds

assets

from

Price

To be supplied by
To purchase life insurance in
other life insurance
companies.
—

—

Subscription Agent — Old Southern Trust
Co., Houston,
Tex. Underwriter—None.
•

Pacific Finance Corp.

(Calif.)'

April 10 filed $25,000,000 of debentures due 1971. Price
—To be supplied by amendment.
Proceeds—For reduc¬
tion

of

short-term

Co., Inc.,

and

bank

loans.

Hornblower

&

Underwriters—Blyth &
Weeks.

Statement

with¬

drawn May 8.
•

18 filed $25,000,000 of first
mortgage bonds due
1986 (reduced on
April 19 by amendment to $12,500,000).
Proceeds—To redeem $12,500,000 of 4x/8% first
mortgage
bonds due 1983 and to
repay bank loans. Underwriter—
To be determined by
competitive bidding. Probable bid¬
ders:

Halsey, Stuart & Co. Inc.; The First Boston
Corp.;
Kuhn, Loeb & Co.; Kidder, Peabody & Co.; Equitable
Securities Corp.; Harriman
Ripley & Co. Bids—Expected
to be received up to noon
(EDT) on May 15.

Pennsylvania Electric

Co. (5/15)
90,000 shares of cumulative preferred
stock, series G (par $100). Proceeds
To repay bank

filed

—

loans and for construction
program.
determined by competitive

Underwriter—To be

bidding. Probable bidders:
Kuhn, Loeb & Co.; W. C. Langley & Co. and
Glore, For¬
gan & Co. (jointly); Kidder,
Peabody & Co.; The First
Boston Corp.; Smith,
Barney & Co.; Harriman Ripley &
Co. Inc.
Bids
Expected to be received up to noon
(EDT) on May 15.
—

.

.

...

j

—

stock

(par $5).

To repay bank loans

—

Quo Vadis Mines, Inc., Las Vegas, Nev.
(letter of notification) 300,000 shares of com¬
mon stock
(par 10 cents). Price—$1 per share. Proceeds
—For mining expenses.
Office—Viener-Jones Bldg., 230
S. 5th St., Las
Vegas, Nev. Underwriter
First Jersey
March 8

—

Securities Corp., Newark, N. J.
and

P.

Minerals, Inc., Reno, Nev.

Feb. 14 (letter of
notification) 500,000 shares of common
stock.
Price—At par (10 cents per
share).
Proceeds—
For mining expenses.
Office—573 Mill

St., Reno, Nev.
Underwriter—Utility Investments, Inc., Reno, Nev.
Rapp (Fred P.), Inc., St. Louis, Mo.

March 2 filed 150,000 shares of 5^%
cumulative pre¬
ferred stock (par $10). Price—To be
supplied by amend¬
ment. Proceeds—To repay bank loans incurred

by

to redeem

and

cancel

all

of

the

issued

and

com¬

out¬

standing shares of 4% and 7% preferred stock; and for
expansion program. Underwriter—Edward D. Jones A
Co., St. Louis, Mo. Statement may be withdrawn as com¬
pany may be acquired by
ACF-Wrigley Stores, Inc.
•
Reading & Bates Offshore Drilling Co. (5/24)1
May 2 filed 170,000 shares of class A (cumulative con¬
vertible) capital stock (no par). Price—$12 per share.

Proceeds—To repay loans and advances and for work¬
ing capital. Office—Tulsa, Okla.
Underwriters—Hulme,
Applegate & Humphrey, Inc., Pittsburgh, Pa.; The Mil¬
waukee

Co., Milwaukee, Wis.; The Ohio Company, Co¬
lumbus, Ohio; and Stroud & Co., Inc., Philadelphia, Pa.
Reno Hacienda, Inc.,
Inglewood, Calif.
Dec. 19 filed 4,000,000 shares of common stock. Prke—
At par ($1 per share). Proceeds—To
purchase real prop¬
erty, for construction of buildings and other facilities
and for general corporate purposes. Underwriter—Wil¬
son & Bayley Investment Co.
Republic Cement Corp., Prescott, Ariz. (5/24)
April 20 filed 965,000 shares of capital stock. Price—$10
per share. Proceeds—For construction of plant, working
capital and general corporate purposes. Underwriter—
.

(5/15)

April

18

share. Proceeds

machinery and equipment and working capital.
Office
Pulaski, Va. Underwriters — Scott, Horner &
Mason, Inc., Lynchburg, Va., and Galleher & Co.,
Inc^
Richmond, Va.
'
m;

Vickers Brothers, New York.

Pennsylvania Electric Co.

April

per

and for

pany
•

Underwriter—Skyline

Securities, Inc., Denver 2, Colo.

R.

•

Northern Illinois Gas Co.
(5/17)
April 18 filed $15,000,000 of first
mortgage bonds due
April 1, 1981. Proceeds—For new construction and
gen¬
eral corporate
purposes. Underwriter—To be determined
by competitive bidding. Probable bidders:
Halsey, Stuart
& Co. Inc.; Glore, Forgan &
Co.; The First Boston Corp.;
Blyth & Co., Inc. Bids—To be received up to 10 a.m.
(CDT) on May 17 at 231 South La Salle
St., Chicago
90, Illinois.

force

May 8 filed $25,000,000 of debentures due 1990. Proceeds
—For .repayment, in part, of advances from
American
Telephone & Telegraph Co. Underwriter—To be deter¬
mined by competitive bidding. Probable
bidders: Hal¬
sey, Stuart & Co. Inc.; Morgan Stanley &
Co.; The First
Boston Corp.; Drexel & Co. and Dean
Witter & Co.
(jointly). Bids—Expected to be received up to noon
(EDT) on May 28.
*
...1..

subscription by

at the rate of one new share for each
ten shares held as
of about May 9;

common

To

amendment.

Co^

Inc.

common

B

Co., Spokane, Wash.

stock

Co.,

common

—

•

Gas

A

—

^ Mineral Concentrating Co. of America, •
April 24 (letter of notification) 35,000 shares of class A
common stock (par $4).
Price—$8 per share. Proceeds
—For lease or purchase of a factory.
Office — 128-34
Harding Ave., Des Plaines, 111. Underwriter—None.

be offered for

-mum

(par $2).

.

24,120 shares of common stock (no par)
shares of $6 dividend preferred stock (no
par). The company does not intend presently to sell
more stock than is
required to raise, at most. $2,700,000
Price
$100 per share. Proceeds — For construction,
working capital, reserve, etc. Underwriter—None.
and

to

■

ceeds

Natural

April 12 filed 41,530 shares of

*'«

National Old Line Insurance Co.
Nov. 15 filed 50,000 shares of class
(par $2) and 50,000 shares of class

&

—

Piedmont

l-for-4 basis.

None.

Oil

"

Office—Allentown, Pa. Underwriter
Osborne
Thurlow, New York, N. Y., for 20,000 shares.

Prices—$2 per share. Proceeds—For vacuum
metallizing,
conditioning, slitting and inspection machinery. Office—
1145-19th St., N. W.,
Washington, D. C. Underwriter—

March 29
mon

a

Underwriter

ital.

Metallizing Corp.

stockholders of record Feb. 1, 1956 on

Proceeds—For investment.
\ ■' ''
' ' "
*

common

$1) to.be offered for subscription by Class A and Class

-

oversubscription privilege); rights
11. Price—To be
supplied

stock (par 50 cents).
Price—$3.25 per share.
Proceeds—For inventory, equipment and
working cap¬

24,000 shares of Class A
40,000 shares of Class B stock (par

scription by common stockholders. Price—$11 per shares
(the aggregate not to exceed $300,000). Proceeds—For

an

about June

Petroleum Equipment Service &
Maintenance Co.
March 23 (letter of notification) 35,000 shares of class B

March 5 (letter of
notification)
stock (par $1) and

num-->

for

National

*.

Investment Service Co.,
'
" /'
'

or

-

Bldg.,

—

(with

on

by amendment.

National Lithium Corp.,
Denver, Colo.
Dec. 27 (letter of
notification) 300,000 shares of common
stock (par one Cent).
Price—$1 per share. Proceeds—
For mining expenses. Office — 556
Denver Club

the company and 41,420 shares
by selling stockholders."*
Price — To be supplied by amendment. Proceeds
For

expire

—None.

—

.

her

to

each 10 shares held
(with an oversubscription
privilege);
rights to expire on May 25. Price
$17.75 per share.
Proceeds—To be used to purchase common
Stock, or for
loans to the operating
subsidiaries; and for other cor¬
porate purposes. - Underwriter—None.

(Clayton) & Co., Evanston, 111. (5/22)
/
April 27 filed 141,420 shares of common stock (par $5),
of which 100,000 shares are to be offered for
account of

it Marsh Foodliners, Inc., Yorktown, Ind.
April 24 (letter of notification) an undetermined

shares held

be offered for

of

Mark

tings.

common stock
(par $10)
subscription by common stockholders
record May 8, 1956, on the basis of one
new share for

to

*

same

^ Petroleum Corp. of America (5/28)
May 7 filed 328,400 shares of common stock (par
$1) to
be offered for
subscription by common siocKnuiatrs of
record May 28 at the rate of one new share for
each five

—

—

39

St.
Feb.

•

Regis Paper Co.

21

filed 540,000 shares of common stock
(par $5)
being offered in exchange for outstanding common stock
of Rhinelander Paper Co. on a share-for-share basis.

The offer
lander
be

will he

common

declared

than

80%

of

declared

effective

if

90%

of Rhine-

stock is deposited for
exchange;
if a lesser amount, but

and may
not less
This offer

effective

said

shares, are so deposited.
expire on May 16. Dealer-Manager—White, Weld
Co., New York, and A. G. Becker & Co., Inc.

will
&

Schneider
Machine Co., Lexington, Ohio
April 26 (letter of notification) 18,307 shares of common
stock (par five cents) and 164 shares of
preferred stock
(par $100). Price—Of common, $10 per share; and.of
preferred $100 per share. Proceeds — For expenses in

developing and promoting of the company and manufac¬
turing expenses. Office—R. F. D. No. 1, Lexington, Ohio.
Underwriter—None.

Continued

on

page

40

..

The Commercial and Financial Chronicle
40

Continued from page

39

..w.-..

..

Shangrila Uranium Corp.
Dec. 30 (letter of notification)
stock.

mon

For mining

300,000 shares of comPrice—At par ($1 per share). Proceeds—
expenses. Underwriter—Western States In¬
Tulsa, Okla.

vestment Co.,

Co.

Sierra Pacific Power

April 12 filed 80,500

shares of preferred stock, series A

to be offered in exchange for
35,000 shares of 6% preferred stock on

the outstanding
the basis of 2.3

preferred for each share of old preferred.
jpri«e—To be supplied by amendment. Proceeds—To re¬
deem old preferred stock or to retire bank loans. Under¬
writers— Names to be supplied by amendment. Stone &
Webster Securities Corp., New York, N. Y. and Dean
Witter & Co., San Francisco, Calif., underwrote last
shares of new

equity financing.
Exchange
expire on June 5.
Sierra Prefabricators,

offer expected May 16 to
(Calif.,)

Inc.

Eastern Transmission

Texas

.

Thursday, May 10, 1956

Nov.

shares

200,000

filed

30

of

Value Line Special

cumulative preferred

(par $100). Price—To be supplied by
Proceeds—Toward redemption of presently

stock

amendment.
outstanding

April 26 (letter of notification) 2,000 shares of cumula¬
tive preferred stock.
Price — At par ($50 per share).
Proceeds—For additional equipment and a larger plant.

(letter of notification) 149,500 shares of cap¬
ital stock (par $1). Price—$2 per share. Proceeds—For
working capital and general corporate purposes. Underwriter—S. D. Fuller & Co., New York. Offering—Post¬
March 12

Office—34th St. and Sutherland Ave.,
Underwrietr—None.

Corp., Dallas, Texas

Tex-Star Oil & Gas

(letter of notification) 99,990 shares of common
stock (par $1). Price — $3 per share. Proceeds—For
working capital and general corporate purposes. Office
20

—Meadows

Texas.

Dallas,

Building,

Thomas F. Neblett, Los

Underwriter

West Jersey Title &

Guaranty Co.
notification) 10,000 shffres of common
(par $10) of which 8,000 shares are first to be
offered for a period of 30 days in exchange for outstand¬
ing preferred stock on a 2-for-l basis; any shares re-;
maining will be offered to common stockholders. Price— $25 per share. Office^—Third and Market Sts., Camden,1
N. J. Underwriter—None.
\

■

capital stock (par
accrued interest; and for stock, $4.12*6 per share. Pro¬
ceeds—For working capital in connection with increased

Western Electric

Business—Manufactures and sells prefabricated
—
Toledo, Ohio. Underwriter — P. W.
& Co., Inc., New York. Offering—Expected to¬
Office

Brooks

Simca, Paris, France
March 29 filed (1) such

day (May 10).

number of American shares
as may be issued
(on a basis of two American shares
for each underlying capital share) in respect of 1,455,713 capital shares of Simca and (2) the 1,455,713 capital
shares. These securities are being offered to the holders
presently outstanding capital shares, including holders
of American shares representing capital shares, at the
rate of one additional capital share for each capital
of

additional American share for each.;
held on April 30, 1956, together with
certain additional subscription privileges. The subscrip¬
tion price will be 5,500 francs (approximately $15.71)
per capital share and approximately $7.86 per Ameri¬
can
share.
Subscription rights of holders of capital
shares will expire at the close of business in Paris on
June 6, 1956, whereas warrants evidencing subscription
rights of holders of American shares will expire on May
31, 1956. The subscription is to be handled by a group
of French subscription agents.
Proceeds—To finance
a program of
expansion and improvement. Business—
Simca is engaged in the production and sale of passenger
automobiles, trucks, tractors and other products in
France.
Depositary—For American shares: City Bank
Farmers Trust Co., New York.
share

(or

American

one

share)

Skiatron Electronics & Television Corp.
16 filed 470,000 shares

March

cents).

Price

of

At the market.

—

stock (par 10
— To selling

common

Proceeds

Underwriter—None.

stockholders.

•

/

$

.

Sonoma Quicksilver Mines, Inc.
April 9 (letter of notification) 640,000 shares of capital
stock (par 10 cents) to be offered for subscription by
stockholders. Price—45 cents per share. Proceeds—For
mining expenses. Office—41 Sutter St., San Francisco,
Calif.

Underwriter—None.

Southern

California

Gas

Co.

April 23 filed $40,000,000 of first mortgage bonds, series
B, due 1981. Proceeds—To repay short-term indebted¬
ness
owing to parent, Pacific Lighting Corp.;, and for
construction program.
Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Blyth & Co., Inc.; Lehman
Brothers, White,
Weld & Co. and Union Securities Corp. (jointly). Bids—
To be received up to 8:30 a.m. (PDT) on
May 23 at
Boom 1216

—

810 South Flower

St., Los Angeles 54, Cal.

Southwestern Oklahoma Oil Co., Inc.
Feb. 27 (letter of notification) 15,001 shares of common
stock (par 10 cents) to be offered for subscription

by

stockholders.
penses

Price—$10 per share. Proceeds—For ex¬
incident to development of oil and gas properties.

Olfice—801

Charles Plohn & Co., New

Washington Bldg., Washington, D. C. Under¬

An additional 1,409,071 shares are to be:,
Telephone & Telegraph Co., owner of
99.82% of the outstanding voting stock. Price—$45 per
share. Proceeds—For plant improvement and expansion. '
sold to American

Underwriter—None.
Western Securities

Corp. of New Mexico
notification) 50,000 shares of common
stock. Price—At par ($1 per share). Proceeds—To start
a dealer or brokerage business.
Office—921 Sims Bldg.,
Albuquerque, N. M. Underwriter—None.
Feb. 13 (letter of

White

York.

* Tom Sawyer Foods, Los Angeles, Calif.
(letter of notification) 9,135 shares of preferred
(par $25) and 9,135 shares of common stock (par
$5) to be offered in units of one share of each class of
stock. Price—$30 per unit. Proceeds—To buy nut proc¬
essing plant operations. Office — 4920 South St., Los
Angeles, Calif. Underwriter—None.

White Sage

^ Trusteed Funds, Inc.

Commonwealth Fund
without insurance;

plans A with insurance; 445 plans B
and 1,100 Theoretical units.

Jan. 19 (letter

Price—$1.25 per share. Proceeds—

incident to oil production. Office — San
Houston, Tex. Underwriter—Mickle &
Co., Houston, Texas.

For expenses

Jacinto Building,

U.

S.

Co., Cincinnati, Ohio

(letter of notification) 20,666 shares of class B
common stock (par $1) to be offered for subscription by
class B common stockholders on a l-for-7 basis. Price—

Feb. 20

$6.84 per share. Proceeds—For working capital. Office
—3500 Maison Road, Cincinnati, Ohio.
Underwriter—
None.

Wilmington Country Club, Inc., Wilmington, Del.
April 2 filed $1,500,000 of non-interest bearing deben¬
tures, due 1991, to be offered to the members of the
Club. Price—At par ($1,000 per debentures). Proceeds
—For construction of a golf house and .other improve¬
Underwriter—None.

ments.

,

Industries, Inc.

(Russell)

mon

notification) 3,000,000 shares of com¬
Proceeds
working
Office—Winnsboro, Texas. Underwriters—J. J.
Securities Co., Inc., New York, N. Y., and Dag¬
Price—At par (10 cents per share).

stock.

—To

repay

capital.
Holland

bank loans, for drilling well and

gett Securities, Inc., Newark, N. J.

Mo.
Houston, Texas

of notification) 240,000 shares of common

stock (par 10 cents).

Williamson
1

March 13 (letter of

(letter of notification) $250,000 of 6% 12-year
registered subordinated sinking fund debenture notes
due Jan. 1, 1968.
Price—At par. Proceeds—To reduce
outstanding secured obligations. Underwriter—McDon¬
17

Union of Texas Oil Co.,

Corp., Salt Lake City, Utah.

Wilson

Tunacraft, Inc., Kansas City, Mo.

ald, Evans & Co., Kansas City,

Uranium Corp.

of notification) 15,000,000 shares of capi¬
tal stock.
Price—At par (one cent per share). Proceeds
—For mining expenses.
Office—547 East 21st South St.,
Salt Lake City, Utah.
Underwriter—Empire Securities

Feb. 13 (letter

stock

Transportation Vendors, Inc.
(letter of notification) 299,750 shares of com¬
mon stock (par five cents).
Price—$1 per share. Pro¬
ceeds— To pay indebtedness, and for expansion and
working capital. Business—Vending machines. Office—
60 Park Place, Newark, N. J.
Underwriter — Midland
Securities, Inc., New York, N, Y.

(5/21-24)

—Paine, Webber, Jackson & Curtis, Boston, Mass., and
New York, N. Y.

May 4

March 23

Eagle International Oil, Inc.

April 27 filed 1,156,250 shares of common stock (par 10
cents). Price—To be supplied by amendment. Proceeds
—To purchase properties of White Eagle Oil Co., and
for working capital.
Office—Tulsa, Okla. Underwriter

Togor Publications, Inc., New York
March 16 (letter of notification) 299,700 shares of com¬
mon stock (par 10 cents).
Price—$1 per share. Proceeds
—For working capital and general corporate purposes.
Office—381 Fourth Ave., New York, N. Y. Underwriter
—Federal Investment Co., Washington, D. C.

Jan.

'

,

May 31, 1956.

Newark, N. J. (5/16)
April 25 filed 375,000 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 record about May 15; rights to expire about June 5.
Price—To be supplied by amendment.
Proceeds—For
production equipment, etc.; and to repay short term
loans. Business—Research and development of new and
improved commercial processes, techniques and equip¬
ment for electrolytically depositing chromium coatings
directly on various types of base metals. UnderwriterTiarco Corp.,

May 2 filed (by amendment) 2,080

(5/23)

/

Co., Inc.

April 13 (letter of notification) 2,595 shares of common /,
stock (no par) being offered for subscription by minority :
stockholders of record April 10, 1956 at the rate, of one;
new share for each nine shares held; rights to expire on*

business.

poned indefinitely.

,

stock

—

fund debentures
40,000 shares of
$1). Price—For debentures, 100% and

homes.

Indianapolis, Ind.

Jan. 23 (letter of

Angeles, Calif.

Thyer Manufacturing Corp.
April 13 filed $600,000 of 6% sinking
due 1976 (with warrants attached) and

(N. Y.)

^ Waldemar Press, Inc., Indianapolis, Ind.

shares of 5.50% first preferred stock. Under¬
writer—Dillon, Read & Co., Inc., New York. Offering—
Temporarily postponed.
Jan

Situations Fund, Inc.

April 18 filed 2,000,000 shares of capital stock (par 10
cents). Price—$3 per share. Proceeds—For investment.
Underwriter—Value Line Distributors, Inc., New York.

Corp.

190,000

(5/16)

(par $50)

•

.

Evanston, 111. Underwriter—Arthur M. Krensky & Co.,
Inc., Chicago, 111.
.

weils, possible acquisition of interests in additional oil
and gas leases and exploration for oil and gas. Under¬
writer—Hayden, Stone & Co., New York.

........

<

•

.

(2276)

Fiberglass Industrial Plastics, Inc.

(letter of notification) 150,000 shares of con¬
preferred stock (par $1) and 30,000 shares of
stock (par 10 cents) to be offered in units of
five shares of preferred stock and one share of common
stock first to stockholders.
Price—To stockholders, $9

Wing E-E, Inc., Denver, Colo.
April 10 (letter of notification) 299,900 shares of common
stock (par 10 cents). Price—$1 per share. Proceeds—For
manufacturing expenses, selling and distributing of toys
and novelty items. Office—609 Equitable Bldg., Denver
2, Colo.

Underwriter—Columbia Securities Co., Denver,

Colo.

Wisconsin Electric Power Co.

writer—None.

March

Strategic Metals, Inc., Tungstonia, Nevada
Jan. 4 (letter of notification) 1,200,000 shares of

vertible

March 30 filed 463,641

common

being offered for subscription by common stockholders
of record April 24 on the basis of one new share for
each 10 shares held
(with an oversubscription priv¬

per

unit; and to public, $10 per unit. Proceeds—For
capital improvements and general corporate purposes.
Office—Norwood, N. J. Underwriter—None.

ilege); rights to expire on May 15. Unsubscribed shares
will be offered to employees.
Price—$28.75 per share.

ic Universal Metals Corp. of Nevada
May 4 (letter of notification) 280,000 shares of common
stock (par 10 cents). Price—$1 per share.
Proceeds—
For mining expenses.
Office — 206 North Virginia St.,

None.

stock.

Price—25 cents per share.
incident to mining operations.
it Reynolds & Co., Salt Lake
City, Utah.
mon

com¬

Proceeds—For

expenses

Underwriter-

Suburban Land

Feb. 2
tive

Developers, Inc., Spokane, Wash.
(letter of notification) 920 shares of 6% cumula¬

non-voting preferred stock

2,160 shares of

ferred, $100

common

($100
stock (par $10).

share)
Price—Of

per

and
pre¬

share; and of common, $15 per share.
Proceeds—For improvements and
working capital. Of¬
fice—909 West Sprague
Ave., Spokane, Wash. Under¬
per

writer—W. T. Anderson & Co.,
Inc., Spokane, Wash.
Sun Oil Co.,

Philadelphia, Pa.

April 18 filed 229,300 shares of

common

stock. Price—At

the market.

Proceeds—To selling stockholders. Under¬
writer—None.

Superior Uranium Co., Denver, Colo.
Hov. 9 (letter of
notification) 29,600,000 shares of com¬
mon stock.
Price—At par (one cent per share). Pro¬
ceeds—For
®

mining

operations.

Office—608

g7<SerIver' Col°- Underwriter—Securities,

Box 127,

California

Inc., P. O.

Arvada, Colo.

Target Uranium Corp., Spokane, Wash.
(letter of notification) 1,000,000 shares of

March 1
mon

stock

(par five cents).

Pyoceeds—-For mining

Price—20 cents

expenses.

Office

—

per

Reno, Nev.

share.

422 Paulsen

St., Reno, Nev.

Feb.

1

Okla.

200,000 shares of common stock (par $1).
supplied by amendment. Proceeds—For
working capital, drilling and completion of additional

raee—To

be




Underwriter—None.

Uranium Exploration Co.,

Salt Lake City, Utah

(letter of notification) 77,875 shares of common
(par 25 cents).
Price—$1 per share. Proceeds—
For mining expenses.
Office—538 East 21st South St.,
Salt Lake City, Utah.
Underwriter — Pioneer Invest¬
ments, Salt Lake City, Utah.

Feb. 13
stock

Colo.
200,000 shares of com¬
mon stock, which are covered by an option held by the
underwriter. Price—10 cents per share. Proceeds—For
Jan.

30

Uranium Corp., Denver,

(letter of notification)

mining expenses. Office—310 First National Bank Bldg.,
Colo. Underwriter — Amos C. Sudler & Co,

Denver,
same

fe*roleum Corp., Norman,
filed

Underwriter—None.

^ Uranium Concentrating Corp., Reno, Nev.
April 30 (letter of notification) 6,000,000 shares of com¬
mon stock.
Price—At par (five cents per share). Pro¬
ceeds—For mining expenses. Office—139 North Virginia

Utco

com¬

Bldg., Spokane, Wash.
Underwriters—Percy Dale Lanphcme and Kenneth Miller
Howser, both of Spokane,

_

19

city.

Vance

Industries,

Inc., Evanston,

III.

(letter of notification) 7,000 shares of common
one cent).
Price—$7 per share. Proceeds—
To selling stockholders.
Office — 2108 Jackson Ave.,

Jan.

stock

24

(par

Proceeds

—

For

shares of

construction

common

program.

stock (par $10)

Underwriter—

Woodbury Telephone Co., Woodbury, Conn.
March 27 (letter of

notification) 5,300 shares of

common

stock being offered to stockholders of record April 20,
1956 on the basis of one new share for each share held;

May 18, 1956. Price—At par ($25
share). Proceeds—To repay short term loans and for

rights to expire on
per

construction.
Woods Oil

Underwriter—None.
& Gas Co., New Orleans,

La.

Aug. 29 filed 400,000 shares of common stock (par $1).
Price—$5 per share.
Proceeds—To retire outstanding
obligations. Underwriters—Woolfolk & Shober and How¬
ard, Weil, Labouisse, Fredricks & Co., both of New
Orleans, La. Statement effective Feb. 28.
WPFH Broadcasting Co.,

Philadelphia, Pa.

April 24 (letter of notification) 150,000 shares of class A
common stock (par $1).
Price—$1.87V2 per share. Pro¬
ceeds—For working

capital.

Office—1425 Walnut Street,

Philadelphia

&

Hallowell,

&

2, Pa.
Underwriters — Boenning
Sulzberger & Co.; Woodcock, Hess

Co.;
Co.,
Inc., and Suplee, Yeatman & Co., Inc., all of Philadel¬
phia, Pa.
ir Wyandotte Chemicals Corp. (5/23)
100,000 shares of common stock (par $1).
Price
To be supplied by amendment. Proceeds—For
May 3 filed
—

working
Freres &

capital and expansion.
Co., New York.

Underwriter—Lazard

1

Volume

Number 5532

183

The Commercial and Financial Chronicle

...

Coastal

(2277)

Transmission

Corp., Houston, Texas
application has been filed
of a 565.7 mile pipeline
system to cost $68,251,000. Underwriters—May be L?hman Brothers and Allen &
Co., both of New York.
Feb. 29 it

announced

was

First

an

Air-Vile Products Corp., Miami, Fla.
Feb.

20

it

reported early registration is expected
Price—Around $4.25

was

of 150,000 shares of common stock.

Columbia Gas System, Inc. (10/2)
Feb. 15 it was announced company may issue

share. Proceeds — For expansion program. Under¬
writer—Arthur M. Krensky & Co., Inc., Chicago, 111.

per

American Telephone & Telegraph

March 21 the directors authorized
tures

a

$30,000,000 of debentures.

Co.

new

March 12 it
tures.

some¬

Jan. 24 it

announced company

ing

the

plans to spend dur¬
estimated $94,000,000 for

tween

construction.

to

next

years

an

No

sources.

for 1956.

equity

new

financing

is

planned

•

bonds
★

on

April 30 it

on

Natural

Gas

loans.

Co.

an

offering to stockholders

general

cor¬

">

*

•

'

Edison

mon

investors

whereby
casher.

in

May 7 it

1956.

Internal

funds

and

bank

bor¬

unit.

share of each class of stock.

one

Business—Check cashing service,

Shopping Centers,
Paterson, N. J.

was

locate

Inc.,

offered

develop

to

Grand

Grand

to

Union

Union

Co.

and

the

stockholders.

balance

to

be

Underwriters—

Morgan Stanley & Co. and W. E. Hutton handled
financing by Grand Union Co. in 1954.

Fruehauf.

new

Water

Co.

Consolidated

(7/10)

applied to the New Jeresy Board of P. U.
Commissioners for authority to issue and sell $7,500,000
of 30-year debentures maturing July 1, 1986.
Proceeds
company

—For construction program. Underwriter—To be deter¬
mined by competitive bidding.
Probable bidders: Hal¬
sey,

Stuart & Co. Inc.; The First Boston Corp.; Kuhn,
Bids—Scheduled for July 10.

in

the

General

April 2

Erie RR.

(5/16)

Bids will be received by the company up to noon (EDT)
on
,

May
the

The

228,000

common

9

Strick

sale.

shares

stock

family,

who

that

represent about
Strick family

the

Underwriter—Kidder, Peabody &

Acceptance Corp.

it

reported

was

'

.

company

plans to

issue

and

$15,000,000 of debentures due in 1966, $10,000,000
capital debentures due in 1971 and about $3,500,000

of
of

May 16 for the purchase from it of $6,225,000 equip-

'ment trust certificates to mature in

stalments.

Salomon

Probable bidders:

Bros.

&

stock.

common

&

son

Curtis

Hutzler.

Underwriters*-Paine, Webber, Jack¬

and

late

Union

in

Securities

Mav.

Corp.

Registration

"

-

Corp., St. Louis, Mo.
plans $5,000,000
additional financing in near future. Proceeds—To go to.
Securities Investment Co., a subsidiary. Underwriter—
G. H. Walker & Co., St. Louis, Mo.
;
April 18 it

was

announced that company

General Public Utilities Corp.
April 2, A. F. Tegen, President, said that the company
plans this year to issue and sell $28,500,000 of new bonds
and $14,000,000 of new preferred stock.
It is also pos¬

sible that
for

a

new

issue of

subscription by

1957.

common

Proceeds—To repay

General Tire & Rubber Co.
Feb. 24 stockholders approved
,

stock will

be offered

stockholders before April,
bank loans, etc., and for con-"

common

struction program.

authorized

common

stock

to

~

•

a

proposal

to

^

r

•

increase

from> 1,750,000,
to 1,000,000;
from 350,000 shares; also a proposal that any issue of
debentures may include a privilege to convert into com¬
mon stock and permit the company to issue warrants to
purchase common stock, provided the total that may be;

2,500,000

authorized preference stock

outstanding at any one time does not exceed 600,000
shares. [The company expects to issue 23,000 additional
preference shares—5,000 for acquiring stock and prop¬
erty and 18,000 for cash. Having completed long-term'
borrowing negotiations of $30,000,000 from insurance
companies, the company expects to sell not more than
$15,000,000 in debentures.] Underwriter—Kidder, Pea¬
body & Co., New York.
•

Giannini

(G. M.)

& Co., Inc., Pasadena, Caiif.

.

April 11 it was reported company plans to issue and sell

100,000 shares of convertible preferred stock (par $20).
working capital.
Underwriters—G. H.

Proceeds—For

&

Co., New York, N. Y., and Hill, Richards &

Houston Texas

15 equal annual in¬

Halsey, Stuart & Co. Inc.;

Gas & Oil

Corp., Houston, Texas
application has been filed
with the FPC for permission to construct a 961 mile
pipeline system to cost $105,836,000. Underwriters—May
be Blyth & Co., Inc., San Francisco, Calif.; and Scharfff
& Jones, Inc., New Orleans, La.
Feb. 29 it

was

announced

Steel

an

Co.

April 26, Joseph L. Block, President, disclosed company
will seek additional financing through sale of equity
(the method and amount has not yet been deter¬

stock

mined). Proceeds—For expansion program.

Underwriter

—Kuhn, Loeb & Co., New York.
Power & Light Co.
reported company may later

Jersey Central
it

Feb.

6

issue

Loeb & Co.

Inc.; Salomon

registration

on

Co., New York.

Inland

May 9

instalments of $320,000 from June
4, 1957 to June 4, 1971.
Probable bidders:
Halsey, Stuart & Co.

a

SEC

Co., Los Angeles, Calif.

announced this company has been formed

and

one-third

equal

;

(5/29)

Proceeds—To

of Fruehauf

Walker

shopping centers east of the
Mississippi, the funds to come from an offering of stock,

Bids will be received
by the company at Cleveland, O.,
up to noon (EDT) on May 10 for the
purchase from it of
$4,800,000 equipment trust certificates, second issue of
1956, to be dated June 4, 1956 and to mature in 15

the

common

shares and the

coin operated camera photographs the check
Underwriter—Talmage & Co., New York.

East

to

per

Eiizabethtown

Hutzler.,

•

a

Eastern

(5/10)

&

I'

Co.

stock in units of

Price—$5.10

future.

Stuart

'

'

• Dubl-Check
Corp, (5/22)
April 9 it was reported company plans to issue and sell
58,700 shares of preferred stock and 58,700 shares of com¬

writers—Morgan Stanley & Co., New York; and Robert
Baird & Co.,
Inc., Milwaukee, Wis. Registration—

Probable bidders:

(5/22)

pected in June.

W.

Co.

General Contract

holders. Underwriters—None. Offering—Tentatively ex¬

of about June

★ Chicago & North Western Ry.
May 8 it was announced company plans to issue and sell
$3,105,000 of equipment trust certificates to mature in 15

to

50%

on

Hutzler; Kidder, Peabody & Co.

from

Price—To
Proceeds—For working capital. Under¬

Bros. & Hutzler.

Co.

Chicago, III.

rowings will probably provide for the remainder of the
$95,000,000 necessary this year to carry forward the com¬
pany's program of expansion of facilities." Financing
may be in form of 15-year debentures to common stock¬

about June 25.

bidding. Probable bidders:

was expected;
covering 228,000
stock (.par $1). Price—To be supplied

with

amendment.

received

20, Walker L. Cisler, President stated that "tenta¬
tive plans are that about $60,000,000 will be obtained

★ Chain Belt Co. (6/11)
May 7, L. B. McKnight, President, announced that the
company plans to offer 76,543 additional shares of its
capital stock (par $10) to its common stockholders in the




^

received the shares in connection with the sale of Strick

Underwriter—To be determined by com¬

Elliott, President,

Detroit

Corp.; The First Boston
Corp.; Harriman Ripley & Co. Inc.; Merrill Lynch,
Pierce, Fenner & Beane and Stone & Webster Securities
Corp. (jointly).

Ry.

by

Co.

Feb.

struction program.
Underwriter—For bonds, to be de¬
termined by competitive
bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.; Kuhn,
Loeb & Co.; Union Securities

equal annual instalments.
Co. Inc.; Salomon Bros. &

Proceeds-^

Registration—Planned for June 14.

announced

was

filed

—Expected

&

Central Illinois Light Co. r
April 3 it was announced company plans $8,000,000 addi¬
tional financing during 1956. The
type of securities to be
issued has not yet been determined.
Proceeds—For con¬

Ohio

it

8

be

shares of

from Nov. 15, 1956 to and including May 15, 1971. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Salomon Bros.

Bids—Scheduled for Sept. 11.

&

to

11.

Trailer

Fruehauf

May

of

by the company at 140 Cedar St.,
6, N. Y., up to noon (EDT) on May 22 for the
purchase from it of $3,990,000 equipment trust certifi¬
cates, series N, to be dated May 15, 1956 and to mature
in 30 equal semi-annual instalments of
$133,000 each

First Boston Corp.
(jointly); Equitable
Corp.; Blyth & Co., Inc.; Kidder, Peabody &
Merrill Lynch,
Pierce, Fenner & Beane (jointly).

★ Chesapeake

summer

New York

and The

near

the

Bids will be received

Securities

as

and

• Delaware, Lackawanna & Western RR.

(9/11) ?
March 22 it was announced
company plans to issue and
sell $15,000,000 of first
mortgage bonds due 1986. Under¬
writer—To be determined by
competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co
Inc.; Kuhn, Loeb &
Co. and A. C. Allyn & Co. Inc.
(jointly); W. C. Langley

on or

now

March 18 stated in part: "To
meet the cost of present proposed capital expenditures,
it appears that some additional financing may be neces¬
sary." Underwriters—Morgan Stanley & Co. and Clark,
Dodge & Co.

Carolina Power & Light Co.

share for each share held

Power

Crane Co.,

Halsey, Stuart &
Lynch, Pierce, Fenner
& Beane and Kidder,
Peabody & Co. (jointly); Blyth &
Co. Inc.; The First Boston
Corp. and Salomon Bros. &
Hutzler (jointly); Lehman
Brothers; White, Weld & Co.
Previous common stock
financing was underwritten by
Blyth & Co., Inc. and The First Boston Corp.

Expected in

later.

sell

F. F.

Power. Co.

able bidders for bonds
may include:
Co. Inc.; Shields & Co.; Merrill

one

established

10

expire on

Power

in the Fall.

March 19 it was reported
company plans to issue and
sell some additional securities in
June or July, Proceeds
—To retire bank loans and for new
construction. Prob¬

ratio of

rights to

28;

stock

each

was

petitive bidding.
Probable bidders: Halsey, Stuart &
Co. Inc.; Harriman Ripley & Co. Inc. and The First Bos¬
ton Corp. (jointly); Morgan Stanley & Co.; White, Weld
& Co. and Shields & Co. (jointly).
Offering—Expected

Underwriter—F. Eberstadt & Co., New

8, 1956; rights to expire

between

was

construction.

(with an over¬
subscription privilege); rights to expire about June 20.
Proceeds—For

•

reported company plans to issue and sell
$30,000,000 of first mortgage bonds. Proceeds—For new

on or

be named later.

sometime

Consumers

about June 5, 1956, of 1,105,545 additional
shares of common stock (par
$2.50) on the basis of three
new
shares for each five shares held

Co. and

for

share. Underwriters—Fairman, Harris & Co., Inc^'»
Straus, Blosser & McDowell, both of Chicago, I1L

Expected July

16, Frank A. O'Neill, President, announced that the

April 7 it

Airways, Inc. (6/6)

company authorized

determined

1956, will probably do some additional financing. Pro¬
expansion.
Underwriters—The Milwaukee
Co.; Harley Haydon & Co., Inc.; and Indianapolis Bond
& Share Corp. underwrote class A common stock offer¬
ing made last August.

Underwriter—If by competitive bid¬
may include Lehman Brothers; The First
Boston Corp.; Harriman
Ripley & Co. Inc. Bids—Ex¬
pected up to noon (EDT) on June 25.
Registration—
Scheduled for May 22.

Co.

capital

Corp. (7/11)
announced company plans to issue and sell
$20,000,000 of first mortgage bonds. - Underwriters—To;

(7/25)

ceeds—For

ding, bidders

&

be

May

of

share

Halsey, Stuart & Co, Inc.; Kidder, Peabody & Co. and
Merrill Lynch, Pierce, Fenner & Beane
(jointly); Leh-;
man Brothers
and Blyth & Co., Inc. (jointly); ®lore,
Forgan & Co.; The First Boston Corp.; Union Securities^
Corp. and Harriman Ripley & Co. Inc. (jointly). Bids—;

be

company

was announced company plans to offer
180,000
shares of preferred stock (par
$100). Proceeds—For con¬

Electric

To

—

shares
new

per

Florida

was announced company plans to issue and
$30,000,000 of debentures due 1981. Underwriter—

Jan.

struction program.

California

about

or

Price

Feb. 20 it

Consolidated Water Co.

April 25 it

porate purposes.
York.

22.

202,800 additional
the basis of one

on

*

&

and

Co. and Paine, Webber, Jackson & Curtis (jointly).
Bids—Expected to be received on July 25.

(6/25)

Price—To be named later.

on

held

Banking & Trust Co. (6/7)
Bank plans to offer to its

announced

was

capital and surplus. Underwriters—Drexel
Co., Philadelphia, Pa., and Merrill Lynch, Pierce, Fenu

$5

by competitive bidding.
Probable
bidders: Halsey, Stuart & Co. Inc.; Morgan Stanley &
Co. and The First Boston Corp (jointly); White, Weld

Peabody & Co.; Harriman Ripley & Co. Inc.

of record

Pennsylvania

Flo-Mix Fertilizers Corp., Houma, La.
12 it was; reported early registration is expecteA
of 159,000 shares of common stock.
Price — Probably

&

April 11

Co.,

be determined by competitive

by competitive bidding. Probable bidders: W. C. Langley & Co.; Estabrook & Co. and Stone & Webster Secu¬
rities Corp. (jointly); Salomon Bros. &
Hutzler; Kidder,

Braniff

&

March 15 it

was

Edison Co.

Dewar

sell

Valley Gas & Electric Co.

To

Boston

and

•

Underwriters—Putnam & Co.; Chas. W. Scranton & Co.
Consolidated

Co.

Dec.

To reduce bank

—

&

York

(6/7)

Proceeds

Staats

increase

ner

new

l-for-10 basis.

a

25 (following payment of a
rights to expire on May -18.'

Beane and Smith, Barney & Co., both of New
City. Meeting—Stockholders will vote May 28 on;
increasing authorized capital stock from 2,028,000 shares;
to 2,230,800 shares.
: '
•
;

Underwriter—To be determined

reported company plans to issue and sell
preferred stock and offer to common
stockholders 71,132 additional shares of common stock

reported company plans to issue 25,000
shares preferred stock,
probably in June 1956. Proceeds
—To reduce bank loans. Underwriter—To be determined

:

&

was

$5,200,000 of

par-for-par basis.

a

Blackstone

To

f

March 1 it

v

March 22 ICC authorized company to issue
up to $54,710,000 of convertible 4,%•% debentures, series A, due
Feb. 1, 2010, which it proposes to offer in
exchange to
holders
of
its
outstanding convertible
% income

April

Diego, Calif.

March 27 it

June

$35,000,000 to $50,000,000 of bonds. Proceeds—For

Connecticut Power Co.

San

(par $10)

(6/5)

June 5.

on

Bond financing is expected to be done privately
through Blyth & Co., Inc. and The First Boston Corp.

year.

of

shares

that company may issue be¬

announced

was

Co.

Bank,

J

dividend);

stockholders

by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Glore, Forgan & Co. and Blyth & Co.. Tnr
(jointly); The First Boston Corp. Bids—To be received

About $16,000,000 is expected to be spent this

Baltimore & Ohio RR.

Edison

Savings

per share. Proceeds—To increase capital and "
Underwriters—Dean Witter & Co., Blyth &

First
•

—
Kidder, Peabody & Co. and The
Corp., both of New York.

construction program.

>

Of this amount, $41,000,000 is expected
from within the company, and the balance from

come

outside

five

Corp.

reported company plans early registra$25,000,000 of junior subordinated deben¬

Commonwealth

of

as

Co., Inc., William R.

Oct. 2.

Underwriter

First Boston

Arizona Public Service Co.

new

on

Credit

&

Price—$31

was

tion of about

time after the middle of June.

was

To be deter¬

all

Commercial

telephone service. Underwriter — To be determined by
competitive bidding. Probable bidders: The First Bos¬
ton Corp. and Halsey, Stuart & Co. Inc. (jointly); Mor¬

March 23 it

held

100%'stock

ed to be received

(non-convertible) amounting to $250,000,000. Pro¬

Stanley & Co. Bids—Expected to be received

—

shares

and sell

surplus.

ceeds—For additions and improvements to Bell System

gan

Underwriter

,•

Trust

Diego, Calif.

April 27 this Bank offered to its stockholders the right/
to* subscribe for
43,200 addiUomaJ scares pf papital sjtqjck r
(par $10) on the basis of one new share for each 10

mined by competitive bidding. Probable bidders: Halsey,
btuart fit Co. inc.; Morgan Stanley & Co. Bids—Expect¬

issue of deben¬

National

San

with the FPC for construction

41^

and

writer

—

Probable

was

sell
To

in

1956,

$9,000,000 first mortgage bonds. Under¬
be determined by competitive bidding.

bidders:

Halsey,

Stuart

& Co. Inc.; Lehman

Brothers; White, Weld & Co.; Kidder,
Union Securities Corp., Salomon Bros.

Peabody & Co^
& Hutzler and

Continued

on

page

42

The Commercial and Financial Chronicle

Thursday, May 10, 1956

;;.

(2278)

42

tional

Transportation Commission
reported early registration is expected
of
$11,500,000 of sinking fund debentures due 1976.
Underwriter—To be determined by competitive bidding.
Probable bidders: Shields & Co., Halsey, Stuart & Co.
Inc. and Savara & Hart (jointly); Lehman Brothers;
Montreal

41

Continued from page
Merrill Lynch/Pierce,
& Co.

Fenner & Beane

Incorporated.

Johns-Manville

April 23 it

(jointly); Blair

"

•

,

Corp.

Cassidy, Chairman, said the corpora¬
tion is studying possibilities for expansion that could
require financing, adding that the management had no
definite plan for the issuance of additional stock other
than those required for the two-for-one split but "the
situation could change."

March 9, Leslie M.

to

that

1 Kaman Aircraft Corp.
April 16 it was reported an offering is expected in May
of approximately 30,000 shares of common stock. Under- .
writer—Paine, Webber, Jackson & Curtis, Boston and"

Pan

to

April 9,

Loeb

Kuhn,

and

Co.; Harriman Ripley & Co. Inc.;

&

-

I
Business—To explore, drill and
operate oil, gas and mineral properties in the United,
States, Cuba and Canada. Office—120 Broadway, New
York, N. Y. ,1"'/•: '• —v;
>/;!
s

year.

+ Pittsburgh Rys. Co. :
*
%
May 4 it was announced that Standard Gas & Electric;
Co.,will offer to its stockholders rights to subscribe for

1

Pipe Line Co. of America
Kansas City Power & Light Co.
Feb. 20 it was reported company plans to issue and sell
late this Spring $35,000,000 of first mortgage bonds due
April 24 stockholders approved a proposal increasing
Underwriter—If determined by competitive bid¬
bonded indebtedness of the company by $20,000,000. Un- <• 1976.
derwriter
To be determined by competitive bidding.?
ding, the following may bid: Halsey, Stuart & Co. Inc.;

;

announced that

Walter E. Seibert, President,

place later this

and to be completed in mid-1959 will
of $200,000,000. Underwriters—

The First Boston Corp.

New York.

-

(Del.)

will soon file a registration statement with the
SEC preparatory to an equity offering planned to take

minimum

a

& Metals Corp.

Cuba Oil

company

company

the current year
amount

Securities
— Ex:

Registration

pected soon.

announced that it is estimated
total construction expenditures planned to start in
the

12

Underwriters—White, Weld &

construction program.

Corp.; and Union Securities Corp.

National Steel Corp.
March

notes and

Co.; Kidder, Peabody & Co.; The Dominion

White, Weld & Co., Blyth & Co., Inc. and Union Securi¬
ties Corp. (jointly); Kuhn, Loeb & Co., Glore, Forgan
& Co. and Salomon Bros. & Hutzler (jointly).
■„

mortgage bonds, and $10,000,000 of 5.6%
borrowings from banks, will be used

first

interim

was

Natural Gas

540,651.75 shares of Pittsburgh Rys. Co. Price—About $6~
share.*.
y:• • V, -l
,>.** oi

-

per
-

Potomac Electric Power Co.

''V

-

—

First

Halsey, Stuart & Co. Inc.; The

Probable bidders:

White, Weld & Co.; Lehman Brothers and
rities Corp. (jointly).
>
v
,
^

Blyth & Co., Inc. (jointly); Equitable
White, Weld & Co. and Shields & Co.
(jointly); Kuhn, Loeb & Co., Salomon Bros. & Hutzler
and Union Securities Corp. (jointly); Lehman Brothers
and Bear, Stearns & Co. (jointly). Amount and timing
has not yet been determined (probably not until first

Boston Corp. and

Securities Corp.;

New

Kansas

tional

common

l-for-10

& Light Co.
reported company may soon offer addi¬
stock to
common
stockholders on a
Underwriter—The First Boston Corp.,

Power
was

basis.

Kay Lab., Inc., San Diego, Calif.
was reported company plans to sell between
and $1,000,000 common stock early in May.
Underwriter—Shearson, Hammill & Co., New York and
Los Angeles.
March 26 it

$900,000

was

New

plans fur¬
extent of which has not

of

additional $37,000,000.
New York.

..

-

«

construction

Underwriter—To be determined;
bidding for any bonds. Probable bid-;
ders: Halsey, Stuart & Co. Inc.; Lehman Brothers, Stenc¬
il Webster Securities Corp. and Union Securities Corp.
(jointly); The First Boston Corp.; Lee Higginson Corp.;'
Dillon, Read & Co. and Johnston, Lemon & Co. (jointly)
Harriman Ripley & Co. Inc. < ' •' *
"
>
'
by

company

Public Service Co. of New Hampshire

sell
$8,000,000 of first mortgage bonds. Proceeds — To pay
cost, in part, of construction program. Underwriter—To
be determined by competitive bidding. Probable bidders::
Halsey, Stuart & Co., Inc.; Kidder, Peabody & Co. and/
Blyth & Co. Inc. (jointly); Equitable Securities Corp.;;
White, Weld & Co.; The First Boston Corp. and Coffin
& Burr, Inc. (jointly); Lehman Brothers.
Bids — Ex¬
pected sometime in June.

sell
October

announced company plans to issue and

was

during

bonds

mortgage

first

of

Inc.; Kuhn, Loeb & Co., Salomon Bros. & Hutzler, Union
Securities Corp. and Wood, Struthers & Co. (jointly);
Lehman Brothers; The First Boston Corp.; Equitable Se¬
curities Corp.; Merrill Lynch, Pierce, Fenner & Beane,
Kidder, Peabody & Co. and White, Weld & Co. (jointly).

expansion, estimated to cost an

Underwriter—Blyth & Co., Inc.,

of the

have

current year. Proceeds
—-To retire $77,745,000 indebtedness of company held by
the RFC and the Treasury Department. Underwriters—
Probably Dallas Rupe & Son; Estabrook & Co.; and

$52,000,000 for new construction in 1956 and 1957 ($29,000,000 in 1956 and $23,000,000 in 1957). Of the total
about $30,000,000 will be obtained from new financing,
the type of which has not yet been determined. Under¬
writer—For any preferred stock, Central Republic Co.
Inc., Blyth & Co., Inc., and Merrill Lynch, Pierce, Fen¬

rities during the first half of the

Straus & Blosser.

ner

Long Island Lighting Co.
April 14 it was reported company plans to issue and
sell next Fall $20,000,000 to $25,000,000 first mortgage
bonds. Underwriter
To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
W. C. Langley & Co.; Blyth & Co., Inc. and The First
Boston Corp. (jointly); Blair & Co., Incorporated and
Baxter, Williams & Co. (jointly); Smith, Barney & Co.
Metropolitan Edison Co.
6 it was reported that

the

year,

of

—To

Metropolitan Edison Co.
April 16 it was reported company may issue in June
or
July, depending upon market conditions, about
$5,000,000 of preferred stock (in addition to about $5,000,000 of bonds). Underwriter — For preferred stock also
to be determined by competitive bidding. Probable bid¬
ders: Smith, Barney & Co. and Goldman, Sachs & Co.
(jointly); Salomon Bros. & Hutzler; Harriman Ripley &
.

Co.

Inc.

and

Union

Securities

Corp. (jointly); Kidder,
Peabody & Co. and Drexel & Co. (jointly); The First
Boston Corp.
Michigan Bell Telephone Co.
April 19 company applied to the Michigan P. S. Com¬
mission for permission to issue and sell
$30,000,000 of
40-year debentures later this year. Proceeds—For con¬
striction program. Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart &
Co.

Inc.; Morgan Stanley & Co.

determined

be

by competitive bidding.

Milwaukee Gas Light Co.

April 26 it

was

announced

(6/4)

plans to file

company

soon

Proceeds—Together with $5,000,000 to be received from American Natural Gas Co.,
parent from sale to it of additional common stock, to
be

used

be

determined

for

construction

program.

Underwriter

—

To

by competitive bidding. Probable bid¬
Stuart & Co. Inc.; Kidder, Peabody &

ders—Halsey,
Co.; Glore, Forgan & Co. and Lehman Brothers (joint¬
ly); Smith, Barney & Co., Kuhn, Loeb & Co. and Blyth
& Co., Inc. (jointly); Harriman
Ripley & Co. Inc. Bids
—Expected to be received

on

June 4.

• Missouri Pacific
RR. (5/15)
Bids will be received by the
company up to noon (CDT)
on May 15 for the
purchase from it of $2,625,000 equip-

mept
19o6

trust
and

Probable

certificates,

to

mature

bidders:

in

series
15

E, to be dated June 1,
equal annual installments.

Halsey, Stuart &

Bros. & Hutzler.




Co.

Inc.;

Salomon

J

;

the

for

program

1956-1959

years

will

$87,000,000, including $20,000,000 budgeted for
large expansion, the company says, can be
financed wholly by debt and from internal sources. Un-derwriter—If determined by competitive bidding, may
include Halsey, Stuart & Co. Inc.; The First Boston Corp.
1956. > This

and sell

•

Probable

(jointly),; Merrill Lynch, Pierce,
Peabody & Co. and White,
Weld & Co. (jointly); Equitable Securities Corp. and
Union Securities Corp. (jointly); Smith, Barney & Co.;
Lehman Brothers and Riter & Co. (jointly);'and Glore,
&

Fenner

Forgan & Co.
,

Norway
April 17 it

later.

-

was

$15,000,000 of 15-year bonds. Price—To be named
Proceeds—Together with $15,000,000 to $20,000,000

16

borrowings from the World Bank, for construction
large hydro electric power plant. Underwriters—
Kuhn, Loeb & Co.; Harriman Ripley &- Co. Inc.; Lazard

on

approving

Sierra

Co., and Smith, Barney & Co. and associates.

April 12 it

364-mile submarine gas pipeline off-shore the coast
Louisiana from the Sabine River to the Gulf Coast

callable at 115).

62,576 additional shares of
new

of

April 20 it
May

was

r

.

on

announced

that

Pacific Northwest Pipeline Corp.
March 20 C. R. Williams, President,

announced that
stock (par $1) are to be
sold in connection with subscription contracts which
were entered into at the time of the original financing
in April of 1955. Price—$10 per share. Proceeds—To¬
gether with funds from private sale of $35,000,000 addi¬
280,000 shares of

common

common stock to

basis

l-for-10

preferred stock

and

its

80,500

(par $50)

common

shares

first in

of
ex¬

6% preferred stock (which is
(See also under "Securities in Registra¬

a preceding column.) Underwriters — May be
& Webster Securities Corp., and Dean Witter &
exemption from competitive bidding is obtained.

South

Carolina Electric & Gas Co.

;

*

1

March 9, S. C. McMeekin, President, announced that it
is expected that $10,000,000 of new money will be re¬
quired in connection with the company's 1956 construe-?
tion program. The company proposes to obtain a part
of its new money requirements from the sale of $5,-.
000,000 of preferred stock and the balance from the
private sale of $5,000,000 principal amount of bonds.

stockholders will vote

—

about

Stone

.

increasing the

a

cumulative

Co. if

Electric Co.

authorized preferred stock
from 240,000 shares to 500,000 shares and the authorized
common stock from
3,681,000 shares to 5,000,000 shares.
Underwriters
(1) For any common stock (probably;
first to stockholders) — Merrill Lynch, Pierce, Fenner
& Beane. (2) For preferred stock, to be determined bycompetitive bidding. Probable bidders: Merrill Lynch,
Pierce, Fenner & Beane and White, Weld & Co. (jointly);
The First Boston Corp.; Lehman Brothers and Blyth &
Co., Inc. (jointly); Smith, Barney & Co.; Kuhn, Loeb
& Co.; Harriman Ripley & Co. Inc.
17

on

tion"/in

Mississippi. It is estimated that this gather- •
ing system will cost approximately $150,000,000. Type of financing has not yet been determined, but tentative
plans call for private sale of first mortgage bonds and
public offer of about $40,000,000 of securities (probably
notes, convertible into preferred stock at maturity,, and
common stock).
Underwriter—Salomon Bros. & Hutzler.
.

J

*

change;: for outstanding

of

the State of

&

'}

':

announced company is planning to offer

was

stockholders

David

Gas

-

proposal to increase the authorized

Pacific Power Co.

Gathering Corp., Houston, Texas
C. Bintliff, President, announced com¬
pany has filed an application with the Federal Power
Commission for a certificate of necessity to build a
18

a

writer—The First Boston Corp.

Offshore

Nov.

-

preferred stock by 100,000 shares (par $100), of which
it is planned to issue 50,000 shares later in 1956. Under¬

a

Freres &

1

Rochester Gas & Electric Corp.;
v <
March 21 it was announced stockholders will vote May

■»

of

of

rr'

-V

v

Bros. & Hutzler; /

(Kingdom of)

announced a registration statement will
be filed next week covering a proposed issue of $10,000,000 to

(5/24)

by the company up to noon (EDT)on May 24, at Room 423,
Reading Terminal, Philadelphia7, Pa., for the purchase from it of $6,600,000 equipment
trust certificates, series Y, to be dated May 15, 1956 andj
to mature in 30 semi-annual instalments of $220,000each from Nov. 15, 1956 to and including May 15, 1971.
Probable bidders: Halsey, Stuarc & Co.
Inc.; Sfaiomori

\

*

Reading Co.

Bids will be-received

Beane, Kidder,

Oklahoma

with the SEC for permission to issue and sell
$13,000,000
of first mortgage bonds.

,

v

amount to

The First Boston Corp.

New York.
•

.

>

Feb. 15 the company announced that it estimates that jts

& Co. Inc.; Blyth & Co., Inc. and

bidders: Halsey Stuart

Underwriter—To be determined

by competitive bidding.
Halsey, Stuart & Co. Inc.; White, Weld
& Co.; Blyth & Co., Inc.; Kidder, Peabody & Co. and
Drexel & Co. (jointly); The First Boston Corp.

finance:

(jointly); Morgan Stanley & Co. and Drexel &

construction

(Minn.)

Co.

help

.

company

Probable bidders:

Power

announced company plans to issue

Proceeds—To

Puget Sound Power & Light Co.

later this year $20,000,000 of first mortgage bonds due
1986. Proceeds—For construction program. Underwriter

first

additional

States

was

determined.

Co. (jointly).

Bonds may be placed privately.

(jointly).

Northern

Jan. 19 it

is considering
mortgage bonds later,this
(probably about $5,000,000 — in June or July).

sale

& Beane

Brothers

.

—

Feb.

was

securities to be issued and the time of sale-

been

probable bidders include Halsey, Stuart & Co. Inc.; Thq
First Boston Corp.; Kuhn, Loeb & Co., and Lehman-

reported company plans to spend about

March 13 it

B. Germany, President, announced that the
company plans the private and public sale of new secu¬

new

not

construction program. Underwriters—For any debenture'
bonds — may be determined by competitive bidding;

Northern Indiana Public Service Co.

Lone Star Steel Co.

Jan. 24, E.

*

-

April 16, Lyle McDonald, Chairman, estimated that re-;
quirements for new capital this year will be approxi-;
mately $80,000,000 to $85,000,000. The types and amounts|

Halsey, Stuart & Co r

Probable bidders:

.

.

Public Service Electric & Gas Co.

Underwriters—To be determined by competi¬

1956.

program.

competitive

Feb. 25, it was reported company plans to issue and

England Power Co.

tive bidding.

yet been determined, except it is not the present inten¬
tion to sell additional common stock. Proceeds—To be
used to pay for further

announced

was

$10,000,000

announced that the company
,

it

3

Jan. 3 it

Kimberly-Clark Corp., Neenah, Wis.
ther financing, the nature and

:

England Electric System

—

New York.

Nov. 22 it

Union Secu- *

plans to merge its
subsidiaries, Essex County Electric Co., Lowell Electric
Light Corp., Lawrence Electric Co., Haverhill Electric
Co. and Amesbury Electric Light Co., into one company
during 1956. This would be followed by a $20,000,000 first mortgage bond issue by the resultant company, the
name of which has not as yet been determined.
Under¬
writer
May be determined by competitive bidding.;
Probable bidders: Halsey, Stuart & Co. Inc.; Kuhn, Loeb
& Co., Salomon Bros. & Hutzler, Union Securities Corp.
and Wood, Struthers & Co. (jointly); Lehman Brothers;
The First Boston Corp.; Equitable Securities Corp.; Mer¬
rill Lynch, Pierce, Fenner & Beane, Kidder, Peabody &
Co. and White, Weld & Co. (jointly).,
Jan.

half of 1957).

March 21 it

it 'was reported company plans to do some;
additional financing in 1956 and 1957.
Proceeds—For ■

April 23

-

Underwriter—Kidder, Peabody & Co., New York.
Southern

Jan.^30 it

Counties

Gas Co. of

reported

California

in the Fall offer
$15,000,000 of first mortgage bonds. Underwriter—To be
determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; The First
Boston Corp.; White, Weld & Co.; Merrill Lynch, Pierce,
was

company

Fenner & Beane.

*

may

»

.

t

Southern

Nov. 7 it

Nevada

Power

Co.

announced company

"

'

-

plans to sell in 1956
of new securities (probably
$7,000,000 first mortgage bonds and $3,000,000 preferred
and common stocks).
Proceeds—For construction pro¬
gram. Underwriters—For stocks: Hornblower & Weeks,
New York; Wiliam R. Staats & Co., Los Angeles, Calif.:
and First California Co.. San Francisco, Calif.
Bond*
are to be placed privately.
was

approximately $10,000,000

Volume

183

Number

5532

ic Southern Pacific Co-

.

.

The Commercial and Financial Chronicle

.

(6/6)

Securities Corp.; White, Weld & Co. and

4

Bids

expected to be received by this company up to
(EDT) on June 6 for the purchase from it of $9,660,000 equipment trust certificates, series TT, to be
dated May 1, 1956 and to mature annually from May
1,
1557 to 1971, inclusive. Probable bidders:
Halsey, Stuart

& Co. Inc.

are

V

-

■

'

■

Halsey, Stuart

on

'

par

noon

& Co.

Thiokol

April 9 it

April 19 it

Co.

announced

was

and sale

additional

to

is considering is¬

company

stockholders later this year of
stock

common

on

rata

oversubscription

pro

basis

Spencer Telefilm Corp., Beaumont, Texas

t

Jan.

16 it

announced

was

company

.

-

distribute syndicated films-for television.

Porter-Stacy Co., Houston, Tex.
L

Tampa Electric Co.

Feb.

18

it

reported company may issue and sell
1, $10,000,000 of first mortgage bonds. Pro¬
program.
Underwriter—To be
determined at competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Stone & Webster Securities
Corp.; Goldman, Sachs & Co.; Kidder, Peabody & Co.

sell

first
To

it was reported registration is expected early
of sufficient common stock to raise approxi¬
$500,000.
Proceeds—To a selling stockholder.
Underwriter—Stroud & Co., Inc., Philadelphia, Pa.

May

mately

28

it

reported company may later this year
sell $50,000,000 of bonds. Underwriters—Stone & Webster
was

Continued

from

14

page

company plans to issue and
to Sept. 14, 1956, $35,000,000 to
$40,000,000
mortgage and collateral trust bonds. Proceeds—
repay
bank loans and for construction program.

v

.

banks,

oertain
^

■

areas

::

.

.

*

terms,

wI6QlI

that

higher proportion of time

a

automobiles—^otaf

credit remains

percentage
in

consumer

about the

at

which

of individual

'

n!!

^

y?U *may

our

conclusions, there

deahng with this question
ln

I

curate

an area

too

low.r The

available

often

too

is

high

weaknesses

statistics

identified.

of

have

JFor

or

the

GMAC

been

has

it

with

with

available

disposable

on

In

income

statistics

GMAC

or

savings,

other

words, who owes the
We must now determine

money.

the

correct

approach.

We

are

hopeful that the Federal Reserve
study

currently

under

new

develop a practical
guide upon which all may agree.
This will, no doubt, require the
fnrnichina

ot

formation
anaivcic

ah
all

mneh

of

furnishing

to

detailed

much

central

a

anH

ctudv

coonprate
cooperate

to
to

in

for
should'

e^d

Unfortunately

a

to

as

1

downpayment

t'Wf

ri if hcu 1

sMtP

to

or

vioti'on

lending "a gencieT

in

much

with

argue

con-

asainst the trend on down-

and

D"vment«

terms

"

,

,

,n=c°Wever'm
1955 some

,,

,

sec^d ,nalt 01

•

aggressive efforts were

made

the part.of sales finance

on

and

companies

the

trend

banks

toward

to

lower

arrest
down-

payments

and

longer

the

part

of the year these

latter

efforts

appeared
results.

some

directed

to

hazards
the

to

terms,

be

dealers

the

the

market

and

ln

were

generally

Part of

direction

may

as

to

effect
the

lated

the

by

well

the effort

have

the
on
un-

in

re-

have

to

been

last August

as

by

held.

standard,

any

collection

be

can

record

the
1955

in

GMAC
tuat

has

w;th
.

aiways

adeauate

length

of

to

recognition
keeping the

of

transaction

of

hpr

iustifiable

exceptions

me?ts'11 a?d

or

The

course,

of

this

funds




is

corrective

which

process

eventu-

ally develops in a free market
with all economic forces at work."
:

„

.

High Level Competition

:

Let's

method of

some

compete

mer's business

problem

quality of the
high
level,

on

a

we are
in
a
free
economy
controls.
Although
it

concern

people
might be

many

this

audience, it
marked that in

for

as

the

■

custo-

always have

we

the

world

many

there

credit

sumer

areas

tight

are

controls.

16 C0UntrieS

In

standard

in
of

con-

six

of

other than U

business,

funds

for

financing

consumer

either

are

re-

stricted

It isn't always a
lating the downpayment and the

entation

For

instance,

made to

was

pres-

a

all General

Motors dealers

Sale

entitled, "A MerView of Current Time

Trends»

the

dangers

tomer

This

of

pointed
lack of

the

out
cus-

equity.

GMAC

term.

we

I

am

row.

it

also

distributed

a

Terms?"

saies
pood

all

to

GM

rrn

„aiPsrT1pn

and

and
who

'more'™ time

keep

deals

dealers

saipsmpn

close

to

cash

closing

on

GMAC

more

suggests-

cash

car

the
,

a

is

cheapest

to

own

way

is

permitted

are
sure

to

be

borrow

told

that

lend

or

bor-

to

we

could
than

more

There

of terms-

Reaulation

who

some

are

"W"

feel

should

•7.w

,

,

that

be

re

TstemTfsks

a conservative area.

•>*

y

■

JStSS^S not condone the ad-

OMAC

n

^

nosed

sha

!

i

controls
at

the

e
the view that
u
VJ
f! *
should not be 1m-

yer,tls'ng °f )oose .terms or,

fact» terms of

posed at the present time.
the.-statement

read

charles

stradellai

tn

•

basis

In this connection I should like

to

'

iik

i

time

nrespnt

Mr.

of

president

of

of

ter

credit

sumer

controls

with

n

kind. We would
sold

on

the

quality and cost,

T,h

to

any

Droducts

t0.see Proaucls soio on me
ttp

f

finance

custome^^

the

consideration

In

charges

medts

serious

re^ognLng

that

the time sale is direetty between

rftbMto'J"conl be argued
?e ^

wnen a cusi mer asKs ior cusston ot the desiraDimy ot con
cussion
best Ask him don t show gress authorizing standby conterms
hand.
how
much

We should have flexi-

bility, of course, but with the objectlve of keepmg the average ln

,

h down as p0^ible GMAC, in the 1955 annual report:
a

We should compete on the
basis of service to the customer
and tbe deaier—not on tbe basis

wouldn't like

we

AmnH

bility we in GMAC feel there are
important factors worth consideration. To make my point, I
sbaH cite a few:
<

dollars

credit

that

buy

The next

as

^
your
vour

mind

the customer's

_

here

X

pamphlet, "What Are Your Best

short supply.
matter of regu-

very

Sometimes it is how much

money

not

has

in

or

nf

controls.
Policing the business ourselves
in our day to day operations possibly presents the greatest challenSe- In accepting this responsi-

S

and Canada, in which GMAC does

credit

living

nf

We should strive to keep
sucb a constructive force free
frora abuse. We should want to
keeP thls g°od business on a respectable vbasis and in so doing
deserve to enjoy freedom from
can,s-

re-

directions.

le term to
monthstitealimUed num-

nrincinaf d^
diiiicuity,

the

Rear
jn
u
7
7
cheapest way to

be

tional economy than the gradual

a

have

GMAC has been active in several

jat

principal

of

g0oa aeais, uivmu suggests.

reas0"al:)iy «exiDie to accommo

30

without
doesn't

the

uuwupdy
could

on

GMAC

should be glad that
operating

this pres-,

accommo-

term

flexible

rAa<;nnahlv

believed
downpay-

adequate

,

terms

We in

other challenge in this respect.

seen the light

beyond

go

In

want

0n

^
the

that

" rate
T

finance

which they agree is of no con-

a

30 o?0r!!!!fuc 3Ut°"

ment and monthly Payment fig- the end of World War II, promptly by alY'empioyed in this type of
«res, quote dollar figures (not authorize temporary controls business.
Customers' equities in GMAC percentages) well above your where required by a situation
Then we have the question of
are generally on a sound basis, minimums. Use your rate charts short of national emergency.
In dealer
responsibility.
Non-reAlthough the term on new car to show you how you can save the absence of a national emer- course, limited recourse, and full
has

financing

past

in

increased

and

year

a

half

^

the

from

the customer money.

an

From

time

gency,

time

to

applied, it is danwith the free
play of economic forces.
It is
questionable whether, in the absence O'f emergency, the preroga-

the competition between the lead-

r-od when the cost of the car has

ing

jncreased

somewhat

due

automatic equipment and
prices.-. There

is

new

tionary

jor

been

fouj.

0Q
cars,

*

aver-

at

sta-

interested in furthering
the sales of General Motors prodonly

have

been

with

soundness

from

the

truth

and

our

sta-

inflation,

when

strong

brakes must be

gerous

to

tive

the

of

tamper

individual

aVailable

credit

should

istration

trols

of

consumer

during

to

use

his

he

wishes

The

curtailed.

be

as

admin-

credit

peacetime

con-

presents

recourse

agreements exist in difof the country. We,

ferent parts

in

GMAC,

believe that the limplan with a protection system
limiting the dealer
responsibility to an agreed maximum
is best in that it protects
ited

recourse

the

dealer,

credits

makes
for

and

the purchaser.

view, there
I

better

costs

for

With this point of

may

it

mention

for

lower

be disagreement,
it is another

since

great
problems of enforcement
and the hazard of serious errors

area

0f judgment.
lation as to

couid

term

credit financing can and will meet the
challenges that exist. That is the
American way.

tistics prove it.
believe that

r

increasing.

credit

Nothing is fur-

being secondary.
ther

of

drastic

£an be served if reliable statistics

about

while average disposable

comes

low-

is

almost

years,

the

margin

ucts,
have

in

competitors

slightly

monthly jpaiyments on GMAC

age

contracts

certain

priced car field has caused GMAC
to liberalize terms; that GMAC

that

y

o

a

to

the threat

war, or

0f

that

"GMAC has led the parade," that

in

as

may

monthly installment during a pe-

hear

such

one

quarters

0f 24months to 28
months, it has made for a stable
average

_

been-stimu-

shortage

is

excellent.

were

reasonable cost to the purchasers.
ceived.

Measured

was

keeping

hopeful that

are

the

ent level

that the down- chandising

us

seems

these levels

if

showing

Campaigns

involved,

future

These

it

tke^ mndamlnSrb^ matlcally beC°me 36 ra°nthS'

of

liefs

and

j

com-

with

GMAC believes that terms

GMAC has; feU

the rise in credit

x

later,

light of the repayment
there should be no con-

record,
cern

December

in

year

early

as

average

chaser's

accompanied by some relaxa-

was

tion

to

date tbe t^H^^n to the purbudget
With this belief,

tMs
this end.

Credit Terms
:

the

In

ments,

point

We

trend

arrested

in-

detailed

as

downpayment

43%

from
40%

to

the

car

1954

will,? GMAC

way

its course,

in

fixed

no

its dealers

While

dropped

ward

in

basis.

•

continuously

the importance of adequate down-

payments.

ye cannot dentify the installment encouraging to
debtors

Underwriter—Blyth & Co., Inc., New York and

San Francisco.

^ ^ CoLu^er^itTas^e^a^i
"er they have

should, not

.

recognizes

but

counselled

instance

ment.

was

requested, to anyone who had any
real interest in the problem. We

ap-

almost

;

terms

cqp., be reached
the quantity of

credit

contrasted

as

levels

conclusion

to .whether

as

onmnanips

*

development of yardwhich a reasonably ac-

consumer

.

agree
is in

the

sticks by

mamyd?dPfend'

finanrp

-w^ich we.can all be helpful.

mean

"collateral"

money conditions remains
to be seen* At any rate> the ununanimnnslv
workpd
hard
tn
favorable trends seem to have
.7'.
convince
foeir dealer customers been arrested and tbe outlook is
stability at about current
of the wisdom of a^eSw^ the for
arresting the
qalpc:

iitennni,

the

for

as

1949

with
with

sound

in

Co.,

Airlines, Inc.

it

importantly" always gladly furnished our stalengthening of tistics to Governmental agencies,
somewhat
slow-, in to our banking friends and, when

strong support to the campaign
improved credit terms.' The.

same

debt

terested

which

&

reported company plans to issue and
$5,000,000 of debentures. Proceeds—For new equip¬

developed in the banking

teat

say

April 26
sell

Proach of the sales finance
panies

fok

Western

Co.

were

were

accepting

.

I Of L0DS1illl6r

of

Underwriter—Granbery, Marache

responsible for the-

y

'

:

*1

&

.

Credit

vs.

few

a

*

.-fl.

stockholders.

New York.

United States Life Insurance Co. of
N. Y. (6/20)
April 12 it- was announced stockholders will vote
May 14

V,

;

Shields

Sept. 25.

on

Food

Products, Inc., New York
April 23 it was reported early registration is expected
of 60,000 shares of common stock Proceeds—To
selling

:

Collateral

-

and

Bids—To be opened

Vita

..

The
"

Corp.

(jointly); The First

■/

-

(jointly); Salomon Bros. & Hutzler; Stone & Webstar
Corp.; White, Weld & Co.;- Union Securities

prior

.

^

Securities

Corp.; White, Weld & Co.
(jointly).,
;
,

-

-

Underwriter—To be determined by competitive
bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Kuhn, Loeb
& Co., American Securities
Corp. and Wertheim & Co.

(Missouri)

Boston

Tennessee Gas Transmission Co.

Jan.

J.i

Underwriter—To be determined by competitive
bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Lehman
Brothers and Bear, Stearns & Co.
(jointly); Blyth &
Co., Inc. and Union Securities Corp.

April 9

one

Continental

(9/25)
Feb. 6 it was announced
company plans to issue and sell
$20,000,000 of first and refunding mortgage bonds.

announced

was

stock¬

Virginia Electric & Power Co.

Corp.

Electric Co.

April 23 it

Taylor Fibre Co., Norristo wn, Pa.

,.

June 20.

■

.Union

to

basis of

& Co., both of New York.
Registration—Ex¬
pected about June 1. Offering—Tentatively planned for

was reported company may offer an issue
of
to $7,000,000 of debentures. Underwriter—Hirsch &
Co., New York.
u;. ' '

was

s&le

the

Underwriters—William Blair & Co., Chi¬
111., and The First Boston Corp. and Carl M. Loeb,

cago,

April 2 it

around Oct.

the

on

Rhoades

up

(10/1)

ceeds—For construction

in

*,

,

UM & M T-V

>.

'

-

loan.

..

and

stockholders.
ne¬

outstanding $60,000,000 bank

Underwriter—

dividend

stock

100,000 additional shares

Casualty Co., which owns 51% of the presently outstand-*
ing stock will reduce its holdings and Continental Assure
ance Co., which owns
about 24% would sell shares to

$40,000,000

to oner pub¬

plans

of

share for each two shares to be held.

new

first mortgage pipe line bonds in
May and $20,000,000 of
debentures in November. May be placed
privately. Pro¬
ceeds—To retire presently

licly to Texas residents 75,000 shares of capital stock.
Price—$1.50 per share. Business—To produce, sell and

100%

a

holders

11

Transcontinental Gas Pipe Line
Corp.
April 17, Tom P. Walker, President, announced that
gotiations had been completed for the sale of

an

of

ment

common

York.

some

(with
privilege).* Underwriter—None.
•
a

..

reported company may issue and sell some
stock this year. Stockholders were
to
vote April 19 on
increasing the authorized common stock
by 500,000 shares to 1,000,000 shares. Proceeds—For ex¬
pansion. Underwriter—Probably Lehman Brothers, New

'

suance

Corp.

changing the capital stock from 250,000 shares of $4
value to about 1,100,000 shares of $2 par value, in
a two-for-one stock
split, provide for pay¬

order to effect

was

additional

Inc.; Salomon Bros. & Hutzler.

Southern Union Gas

Chemical

in-

of

us

be

a

There again,

very

made

good

available

and to all of

us

who

we

purpose

by

all

are

in-

and

could

An improper regudownpayments

have

a

more

disturbing effect

on

and

violent

the

na-

arise.

in
I

which
am

interested

sure

in

a

challenge

may

that all who are

consumer

.

The Commercial and Financial Chronicle
44

.

.

residual

Incorporated
Expects Boom

Investing for Income

|

:|

through

,

In Goal

j National Income Series
I
~|
mutual fund, the primary objecItivc of which is to provide an
I of bonds, preferred and common
investment in a diversified group

By ROBERT R. RICH

Group Sees Bright Oil
by at least 70%

report of Distributors Group. ; '
*
The 70% figure, according to the report, takes

involved.

J

information

Prospectus

from your

Ifa t i

I

and other

investment dealer or:

• n a

I Securitie-s £

:

Research Cerporatio*

-

V-.

;,

"as

Established 1930

industries in

our

stock

of

Why and

how

bitu¬

increased

and

demand

daily changing its own demand structure

profits is

since the fund

than

doubled

products at; an amazing rate.
in

volume

since

1950."

Furthermore, Group

of all chemicals currently produced
oil and gas. This figure may reach
and pass 50% over the next 10 years.
Nuclear power is not considered a threat to the oil industry.
The point is made that heavy residual fuel oil, which represented
-only about 3% of 1954 dollar revenues, would be about the only
product affected.
/
*Y.,/
- y
'
v
The question as to whether or not we can meet the growing
demand is answered with a strong affirmative. The United States

30 years ago,

"In
was

economic

alone, according to; the report, "now has enough proven
to

serves

years."

total.;

CFC

•

fields."

same

"Based

Established 1925

..

risen

from

30

to

46

cents

boilers ovefc/

fuels,

-

1

-

coal

will

electricity

same

10 years,

by 1960 be

ac¬

all the / y

If it is assumed,

increase at the

will

for the last

-

utilities in'/

; electric

by

demand/ for

our

rate

as

the utilities

producing at an^

annual rate of 800 billion kilowatt
hours

funda¬

a

in

coal

„

per.

com¬

compared with 472 billion
our calculations, to"-

1954.On
this

,

will consume 190 »
million -, tons of
bituminous, or /
65% more than in 1954.
do

Conferences

they

-

it is

on

electric plants

the facts discovered,

have any re¬

can

tarding effect on; ihe use of coal >

our

for the

generation of electric cur-:
conventional methods, yj
/ "Roughly, it; takes one ton of *
coal to produce one ton of steel.
,
fact that foreign consumption rose; a period where it may be hard- Oh the basis of forecasts of steel;
mucJxjjaore rapidly than foreign pressed to meet the growing de-, production, by ", prominent * steel1 "
Bullock Forecasts
mand for its product,
v
production at 7a* t^ihe wherr de¬
producers it is not unreasonable Y
The price of .- domestic copper mand
"This increasing demand willv
to expect that by 1960, the steel
'incite.U^S.V which now re-,
is unlikely to rise in 1956, and lies on
imports for a substantial come to a large extent from the industry in the United States will ',
some
decline can be anticipated
portion of its supply, was increas¬ growing need for electric energy. * consume 125 million tons of coal, %.

Copper Prices ;
May Decline, y '

Investors

that

judgment that the bitu¬
minous coal industry has emerged
pound, despite the fact that a de-'
cline then seemed imminent.' This * from the long period of shrinking
rise is largely attributable to the? markets and declining profits into
has

other

the United States.

personnel.

labor

Incorporated

of

Nine

.

Bureau
of
Mines,
."Our investigations i n d i c a t e •*
Edison
Electric- Institute,
steel' that it will be at least 20 years
companies,
utilities and
union before electricity from atomic
Association,

techniques including "new processes responsible for
increasing the oil recovered from 25%;of the total, to 85% in
cases—better than three times more oil from the

a

held with the National Coal

were

recovery

some

or

residual

of

utility

fire

used

change

the

whether

nature.

panies were visited.

.Group points to the. great;advances in discovery, development and

investment dealer

PHILADELPHIA 3, PA.

or

.

mental

.

of-

because

counted for two-thirds of

a

transitory

was

'

f

into

shrunk,
increased

barrels

to

fuel

of
almost- constant
difficulties,
might be

determine

great untapped potential in Canada and South
7% of the world

a

Venezuela alone has reserves equal to

r/yf YY'/YY/''.
*r',, / ' <
To complete the bright picture of the outlook for the industry,

Prospectus from
your

re-

supply domestic demand at the 1955 rate for the next 13

There is

America.

oil

after

-

>

dropped U
while-;
foreign de-:

"Even before the lessened com-

1955, there

industry,

:

has

the next 18 ez12 years/

period of pros¬
perity. " Incorporated
Investors,
therefore, began a basic study to
heading

has
has

year

evidence that the bitu¬

generation

••

:

15%..Moreover,

petition of

of

summer

;

about,

methods

present

residual

of

million

states:

coal

minous

-

-

the

some

.left

the severe shortage.„of coal in
England zmd Europe. Already the;
British Central Electric Authority
has announced contracts for; 39 •;

organized over

was

while

about

mand

Chairman William A.

points out; better than 25%

new

Petrochemicals—the tail which may soon wag the dog—have
more

methods

of the crude in the form of

:

supply

Parker, accompanying the justissued quarterly report.
The letter, reporting net assets
of Incorporated Investors on
March 31 at $258,159,343, highest

by introducing

25%

to

explained in a letter to stock¬
by President Charles

Devens and

oL

cost

■-

„■,

"Former,

residual

holders

economy,

the

up-grade the products so that the

in this country are made from

120 Broadway, New York 5, New- York

available.

bituminous amount

the

exceeded

transporting it to the East Coast.
Newer refining methods have re¬
duced
the
quantity of residual"

coal industry is facing expanding

within the demand struc¬
growth, says the report, because,

of the most research-minded

one

the oil industry is almost

the

that

price

the

minous coal companies.

The fact that there will be changes

i

ture should not affect the rate of

in

vestments,

'

into account
the possibility of recessions over the next decade.
Barring any
such periods, however, Group sees an even greater possible per¬
centage increase in demand;
*

be obtained

may

*

.

.

.

perity,
Incorporated
Investors,
has recently made substantial in-1

the oil industry could increase
the next 10 years, according to the latest

interim

treasonable expectanceto the cony. tinuance with regard of its risk
I

over

that

fuel

markets.

long-de¬
pressed bituminous coal industry
is heading into a period of pros¬

Total demand for products of

relatively high because of
and
Istocks selected current yieldtheir

oil
in
the utility;
Representing, as it does, :
the dregs from
the refining of:
petroleum,
the
oil{; companies;
were
willing to sell it for. any:

;

-•

Industry

Convinced

'

a

j

Thursday, May 10, 1956

.

(2280)

;

a:

rent

by

-

Tu,"1 of11
lftd

»

to,

^I
apiul

cROWTH of

mm

u.ual

fund.

While demand for coal for

,

.

h

million tons in
million

higher than prices charged by do*-

Both domestic and

foreign mine
during

mestic

producers

over

the

same

►

other

tons

in

were

1955, there were
kept profits
•
*•'/•'■
//

-

about 47%

or

more

than in 1954.

.

of coal in 1955
tons.
This fig-'

Total U. S. exports

that

factors

sub-normal.

public
31

from

1935 to about 140

,

million

50

to reach 75 mil-;
1960. / Y ;'
'The> aluminum
industry,
a
large useriof electric power, has
recently begun constructing its is expected

ure

tons

lion

by

"The major part of the decline
Exchange- have beenf in the total demand for coal in
recent years has been accounted*
than for the
same
period last as high as 55 cents a pound, 1
plants close to the coal mines for
year, and at the same time foreign
-"Perspective" cites the Paley; for by the disappearance of the cheap, dependable electricity. // v \
coal-burning steam locomotive.
;
"The potentials of lower costs
consumption
has
declined,
the report as pointing out that? the
study reports, y As a result, the U. S. will have to rely increas-; •57 "Now that there is only a maxi¬ in the coal k.mining industry
mum of 17 million-tons more to
industry should be in an easier ingly on greater foreign imports \
through mechanization are strik-1
be lost in
the. railroad market,
position throughout 1956.
ing.
One - leading ■ producer of *
/./,*" of copper. The problem is one Domestic mine production for of expanding foreign production the other dynamic markets for mining ^ machinery : asserts
that ■
January and February was up to satisfy our increasing import coal t will be able to make their many underground, mines fulljr
5.7% over 1955 levels and foreign needs as well as greater foreign, contribution-to an addition to the equipped with the .most modern
over-all demand. - without
these
mine' production was up 23.2% demand. v
\
*
*v
>'
machinery produce. 25 tons per '
for
the same period*.
As late as 1938, the U. S'. was' increases being offset by heavy man per day, and in some cases as
Domestic
losses in the railroad market.
much as 50 tons.: This compares j
consumption was up 21.5%, but a net exporter of copper/ the
'-Another of these was the sale with an
foreign consumption fell 9%. < - - study points out In recent years,
average for all . under- • v
of
natural
gas
to
utilities at ground mines in 1954 of only 7J5
The
resulting
relaxation
of U. S. imports have run from
pressure
on
'
copper> prices con¬ about 300,000 to over 500,000 tons, 'dump' prices during the period of terns.
the year when the demand for
trasts sharply with the situation
."Labor
relations; have
never /
and, according to the Paley re- '
that has prevailed in recent years, port, by 1975 the „U. S. will need gas for space-heating was at a been more harmonious and in our;
seasonally low level, thus pricing opinion are on - a par with most
the analysis reports.'
a million tons a year from abroad
coal out of a very
substantial other, industries."
Since 1954, the domestic price to satisfy domestic demand.
^
':
'

production
the

^

increased

has

utilities

.

n
p«l

Fnnd

on
this year, according to;
ing'
April issue of "Perspective,"
Increased foreign demand was
a study
by the investment man¬ reflected in rising foreign prices,/
agement
department of
Calvin which
have
been
consistently
Bullock.
:

the

»nd income.

come

later

first

were

two

higher

months of the year

period. Recent prices
don

the Lon¬

on

>

Metal

.

.

Ar

prospectus

on

fund

is

your

investment

available

each

front

dealer?

The+Parker Corporation
200

Berkeley Street'

.

Boston, Mass.

.

•

.

.

market.

This

by

the

is being
construction

situation

taken care of by the

pipe-line

of

companies

storage reservoirs in which they
accumulate excess gas during off-

vi®

Fundamental Investors, Inc.

peak seasons for use during
season
of
peak
demand. -

the
The

climbing price of natural gas in
relation to
coal makes possible

profitable prices for the
companies.
"Another problem in the past

firm and

fot*siru\

Diversified Investment Fund, Inc.

been

competition

the

Address-




March 31, 1956, was.

ago.

A Balanced Investment

Fund

supervises a portfolio bal¬
anced between bonds and preferred stocks
selected for
stability, and common stocks
selected for growth possibilities.

Prospectuses available
these

mutual

local
Name-

on

Business Shares

Diversified Growth Stock Fund, Inc.

£ALVIN BULLOCK
Established 1894

(share)

$1.53 compared with $1.40 a year

American

The

ONE WALL STREET, NEW YORK 5

.

with

Manhattan Bond Fund, Inc.

investment

funds

on

through

firms,

or:

Company

HUGH W. LONG AND COMPANY
Prospectus

incorporated
Elizabeth

3,

New Jersey

upon

request

Lord, Akbktt & Co.
New York

.

—

Chicago

Bos-;

Mass., reports net assets of
$21,011,074 at March 31, 1956, as.
compared ^ with A $17,319,788 .. at1
March 31, 1955, or an increase of
21%.
Net asset value per unit

ton,

coal

has

.—A U. S. incorporated mutual fund pro¬
viding diversified, managed investment in
Canada. For free prospectus mail this ad to

Commonwealth Fund Indenture ;
of Trust Plan A and Plan B,

—

Atlanta-

—

Los Angeles

■

Number 5532

183

Volume

for apyhistory. This figure equals
3uarter\end in the company's

Closed-Eml l iC/TV©
l-Jlill INew^

Burr Exec. Director

Total

.A. I. G.

Carriers

of

assets

net

$17.62

&

share

per

and

Continued from page 4

compares**

with net assets on March 31, 1955
securities valued at
$81,751,690, equal to $13.82 per
Election of Edward B. Burr as 1956, wjith
market
quotations
and
before share, adjusted for the two-forExecutive
Director
of the
Na¬
deduction of principal amount of one stock split on June 30, 1955. Kerr and Herter Bills, in reaffirmtional Association of Investment
outstanding debentures, were $18,- The number of shares outstanding ing its purpose as "to promote
Companies
was
announced
by
313,364
(excluding
unamortized was 7,278,675 on March 31, 1956 the foreign policy of the United
Robert
E.
debenture financing costs of $4,and 5,914,352 a year earlier, ad- States," prescribed the concurrent
Clark, Chair¬
328). These compared with total justed for the stock split.
establishment by us of a superviman
of
the
net assets of $17,051,975 on Dec.
i
sory administrative commission.
E xecutive
31, 1955. Net asset value of the
United Corporation marked the * ^iv.
Committee.
General Corporation at March 31,

for
two
'

been

Burr

Director

Asso¬

the

of

ciation's

on

stock

$29.31

was

March

unamortized

(excluding

31, .1956

pub¬

share

a

debenture ~-f inane

his-

new

i-ng ; costs)
$9,783. Interest and
amortization requirements on debentures outstanding were earned

he

will

8.44

tion -program.
In *;

post,

•

amounted

this

pro-

and will

gram

for the

also assume responsibility

to

times

continue to di¬
rect

plicable

non-diversified {investment
pany

the

March:

31,

ended

1956

(exclusive of profits on sales
securities) was $106,144 com¬

Associa¬
Prior to pared with $97,788 for the three
joining the NAIC, Mr. Burr was months ended March 31, 1955.
In the report of General AmeriDirector of the Educational Di¬
Investors
Company,
Inc.,
vision of the Institute of Life In¬ can
executive officer.

tion's

surance.

Frank

.•

Altschul, Chairman of the

that Board, stated that as of March 31,
AiNn/N+n
&££ Q KHT
Informa¬ 1956 net assets were $68,597,762,
autonomous an increase of $7,115,240 for the

Clark also announced

Mr.

HCf?

t

the Association's Public

Committee,

tion

an

its formation three
has become a major
within
the Associa¬
tion's structure, subject to super¬
vision
by the Executive Com¬
mittee. This move, said Mr. Clark,
is expected to improve the effi¬
since

body

ago,
committee
years

three months.

mon

Stock

$30.82

the 1,800,220 shares

on

outstanding
-

after

assets,

with

compared

as

Dec. 31, 1955.

on

registered

ities and to "render greater serv¬

$596,065.

expanding industry."
The National Association of In¬

ice to

our

vestment

represents

Companies

open-end (mutual fund) in¬
companies
and
26
companies with total

126

profit from the sale of seNet income from diviinterest and royalties for

dends,

iflefAPt^d,rY,,mk.^^XP+t^e«S
state and
municipal taxes,

was

;

$260,378.

assets

of

more

than

nearly

$10

billion

million

two

holder accounts.

and

share¬

of

the

Public

!
value

Ion
asset

Mnf

Net

net asset value

of $23.26

on

March 31, 1956

share on the 1,080,of capital stock then

per

shares

after deducting the
share dividend pay-

outstanding,
cents

per

able April 14, the highest net asset
value

1956, based
that

lvr-

to

Dec.
aa

-

31

«

$6.19

7

'

1955

Net

and

,

__

share

a

$6 36

or

31.

held

on

; -•

investment
and

_

*

'

less

(divi-

expenses

and taxes) for the first quarter of

1956 amounted to $853 427 or 6 lc
share compared with $803 567

per
or

5.7c

share for Ihe first

a

quar-

ter of 1955.

'

'

'

'

1 "g1 CS&

U1W1

George W. Fulk has been elected
Assistant Secretary
of
North

t

The quarterly report
for

accounted

■

i

.,j

-

(■

\

•

/>,i

«ji

*/'ii

.

of

89.1%

total

net

;v

,
Suggestions

rf v»o v\

SS1—1®8

according

native

of

coun-

For

1948,

and

a

B.A.

*lrst *° adrrdt this.

Zanesville

he received an MBA degree from
the Graduate School of Business
in

degree

in

"accounted for 91.7%; bonds

Chemical

declared

a

dividend of

March

Fund
to

1956

31

I

net

assets

$128 313 174
the

at

highest level

director

Capital Fund of Canada

1956, to shareholders of

Shows Gain in Quarter

record May 3, 1956.

Capital Fund of Canada

-

Chester

Interim

D.Tripp

May 3, 1956

.report

of

:
»

New '.York
Ltd.

in-

t

Chester

Chicago 3, Illinois

'fnprLwrtUfn
31

was

taken ill with tuberculosis amount of free power. To aid in

Television-Electronics Fund, Inc.; and was "given up for

dead." He accomplishing this the Babsons

1955

and

$24 991 272

On

1955

Custodian funds

$30 68

COMMON STOCK FUNDS

on

Dee

Mamh

a' np'r

sharp

hasis

vafues

were

equal

$28 54

and

$24 99

re-

'

and

ernments

BOND, PREFERRED AND

tn

College, had taken up nursMrs. Babson's father was the
Powers is Vice-President"Comp- ingReverend Richard Knight of Hoitroller and a director of the Great
Besides being a faithful mother yoke, Mass., who died many years
Central Insurance Company . of and housewife, Mrs. Babson be- ago. He was a real pioneer —

?3L3"d h?947 ^ in tWS came an expert on Sir Isaac New- very active in getting his antiton's writing and studies. She
collected the third largest Library
of Newtonia in the world; and,
in fact, brought a portion of Newton's London house to Wellesley.
Here one can turn the actual door
knobs and open and shut the actual shutters having Newton's
Mr. Jackson, who has been dean "finger prints."
Sir Isaac Newof Stanford's graduate business ton's Law of Action and Reaction,
school since 1931, is also Vice- as applicable to business and inPresident of the Palo Alto Mutual vestments, is often referred to by
Savings and Loan Association; di- Mr. Babson.

caPaclty since 1947.
spectively
'
J. Hugh Jackson, dean of the
On March 31
1956
the fund's Graduate School of Business at
investments
in' securities were Stanford University, and. Walter
valued
at
$28 431 591
of which A. Starr, director of Scott Paper
$23 842 364
or
83 70%
was
in Company have become directors
equities or'equivalents* $2 899 756
of North American Investment
or
|'
'
10.18%, in obligations of gov¬ Corporation.
to

Keystone

than
in

corporations other

Canadian; $903,379, or 3.49%,
corporate
obliga/v

Canadian

$696,092, or 2.44%, in
Government obligations.

tions; and
Canadian

rector

The Keystone

Company

50 Congress Street, Boston
me

9, Mast.

prospectuses

describing

Organization and the shares of your
D-158

Name.

of

the

American Manage-

With thrift, patience, and cour-

State..




slavery friends to settle in Kansas

during the great Kansas-Nebraska
struggles of Civil War days. Yet,
in all these things, she has been
"modestly personified," as well as
showing what a poor and frail
girl can accomplish.
|
H. W. Meyer

Opens

(Special to The Financial

Chronicle)

SONORA,
Calif. — Henry W.
Meyer is conducting a securities
„

business from offices at 104 South

ment Association; a trustee of the age, and without any gifts from Washington Street.
Sales of Concord Fund in the Foundation for Economic Educa- him, or ever having borrowed a
first three months of 1956 rose to
tion, and of the College Retire- penny, she developed hei own
Blalack Adds to Staff
$1 054 299
an increase of 164%
ment Equities Fund. .
savings of $600 into several mii(Special to The Financial Chronicle)
from the first quarter of last year.
Mr. Starr is also a director of lions. Most of this money has
SAN MARINO, Calif.—John H.
Net assets
of Concord Fund at the
Yosemite Park and Curry been given by her to economic,
the end of March, 1956, set a net Company, and a member of the educational, and religious
insti- Claywell and Philip S Armstrong
record at $8 873 153
which repre- Industry Advisory Committee of tutions.
Among these are the have been added to the staff of
sented a gain of 78% f^m the the Federal Reserve Bank of San Babson Institute, Webber College, Blalack & Co., 2486 Huntington
year earlier level.
Francisco. *
and Midwest Institute.
Drive.
Concord Sales Up

_

Address.

Cty \

Tripp, President of

and apply this same power to
giving every reader a certain

the $127 million mutual fund. Mr. yoke
$27 457 924

from

su'eh net'asset

t

Funds.

D.

she has hoped to help scientists
discover why the world revolves

quarter

21'

ten

Algers"

She gave large funds for the
World's Greatest Revolving Globe.
i

vestment

S30 68

jrour

full-dress, exploration of the entire foreign aid situation is a must!
And on the way, examination of
government aid in its relationship

President

.135 S. LaSaOe Street,

Please send

of

America,

'/

friendship.
Whether these indictments" are
justified or not, surely over-all

by Kard D- Pettit, President of at her home in Wellesley Hills Through a combined study of this
Knickerbocker Shares, Inc., spon- from a cerebral hemorrage. They Great Globe and of Rare Metals
sors
tbe fund- Dr- Jolliffe is a were married in 1900 and started believed to be inside our Earth,
Radio Corporation of in a little house, which served
National Broadcasting as home and office, at a combined
Company, Inc., and RCA Commu- rental of $22 per month. Shortly
nications, Inc.
after their marriage, Mr. Babson

L

income, payable May 31,
i

We are
cajoled into a routine of
competitively dancing to Moscow's

being

1.1%;

share from investment

per

dangerous intervent^onism within
countries,' including pro-dictators

Women Can Be "Horatio

.

amounted

Inc. have

and objectivity by SpruiUe
Braden, our former Ambassador

and cash,

Electronics Fund,

VIR,

to

seem to

of carry-over that is available, to the potential of private investAIs0> in administration, whether ment would be most constructive
the Hoover Commission's recom- at this time,

The Directors of Television-

fur

seem

.

Dollar-wise:—beyond the overa11 "how much" to be spent, there
must be resolved, vis-a-vis Senator Byrd's calculations, the amount

Corporation of America, has been
and cash*- receivables- and U?« S.
elected a director of Capital Ven- , Grace K. Rabson, wife of Roger
Government obligations net, 7.2%. ture Fund, Inc., it was announced W. Babson, passed away recently

30th consecutive dividend

deficits

tbne of tbe Administra- tune. In this hemisphere we have
stirred up jealousy over our cornparative stinginess to our Good
Neighbors. And perhaps we have
generally lost respect as well as

t

tOMYan-

con-

A

"deficits"

and corrupt governments.
Called

Fund,
t

under-developed

a

business.

serious

lne serious

C*

SPSnn nn5Un™ ?f t.<2 Congress for
nouncement made bv
S
Waldo $4>900>900'000 for foreign aid, the
Coleman
President of the fou? ?eed i°ru clarlflcatl0n
S°es far
investment firms. Mr Fulk
bey°nd the area ?f technical asducted
private law nractice be- S1?tance>
how it is to be disfore
entering
the
investment Jributed.
Mr. Hollister has been
Corporation

The

be cited with unusual thoroughness

;

Broadest Re-Examination

receivables and psychology in 1946.
U. S. Government obligations net,,
Dr. C. B. Jolliffe, Vice-President
,10.9% A-year'ago, common stocks and .technical director of Radio
assets,

«.'•

shows that

March 31, 1956 common stocks

ionr

.

ciation may be out of order, but
surely a thorough all-inclusive re-

aid run the ful1 Samut. Eric A. Efcem speech betoie the rNew
Johnston, special assistant to the England Export Club._
President> suggests low-interest
He points , out how our giving
1
i
cfnn rT
r\£
4*
Dniil
loans instead of grants.
Paul has created not only carping at
Hoffman» the first Marshall Plan the method of giving, but actual
administrator, urges that we "wage hatred, as in France. We are
Peace" with a $25 billion non- being thrown out of Iceland, and
military helP Program, spaced Ceylon. Our foreign aid programs
over five years- And labor leader have on too many occasions been
Walter Reuther has come forth extravagant, wasteful and ineffiwith the proposal that the U. S. cient. Our spending has been
set aside 2% of its gross national abortive, as in Yugoslavia where

American Securities Company,
Commonwealth Investment ComAmor-

to

Producd annually forthenext 25 we have re-entrenched Tito cumyears to create a UN fund for the Kremlin. We have practiced

PerKOllfll Prnat*P««

b,y National Ohio, Mr. Fulk received his law
Shares since its founding in 1929. degree from University of MichiOn Dec.
31, 1955 the net asset gan in 1951. Prior to that he atvalue was $21.09.
tended Stanford University, where
on

■
■
New Aid

•

Aonc

1955

income

interest

or

*

31

fail

we

^nd id.evfS f°,r, the fotrmr°^ "f recent^soeech^before'1 thf' New

on

$87 107 502

_

March

onnosed

look—and

on

share

a

Holli«?ter

the

<5imdav

"

share compared with

per

$89 534 719

"Meet'

with their shares.

of

March

on

the

realistic

se^ where realism is out of. order
—discloses that since the end of
World War Two we have' given
aw£|y the enormous sum of over
$41 billion in outside grants and.
distributed ^14 billion in credits.
The question of recipients'afipre-

ieiiow members to come tnrougn.

u'

w/r

indicated"mar-

the

on

on

work of results achieved thus far.

immersion Hifficitv of netting the aPP^isal isof , this Saturnal^ ., of
in UN multUatefalism, spending
c\t\na the
now called for.

.

amo~untedloT937289,790

date,

$6.63

0r

interview

Radin-TV

reported

ever

Eisen

Mr

•

mendation for more than $300
million of savings here can be put
into effect.
The greatest underlying and
longer-term need is for a soulsearching examination of our aid
purposes, within, the frame-

Utility

ket value of investments

North

reports

h;s

Holding Company Act of 1935

,

10

.

pany, Commonwealth Stock

Corp.

Shares

National

000

'

.

was

provisions

vestment

closed-end

com-

CoSP^y ^ct °f 1940' ' subject
i
Previously it

curities for the three months was

Net

within

t

A

against Messrs. Lodge

Raker

17, 1956 when it:
under the Investment

1

ciency of the Association's public
information and education activ¬

and

Jan.

on

dends

.

deducting
$5,993,000 Preferred Stock, were
equal to $34.77 per share of ComNet

"Paired"

the quarter ended March 31 1956,. hower.s Administration circles is
Wm. M.: Hickey,, .President, ,an- Tfthn r» uniiictpr thP nkn tnn^
nounced yesterday.-; : < ^
>
ranking official 'a<? Director' of
1 United became - a closed-end the U S foreign aid Proeram In

the first three

during

?HnmmnneVonck°Mer
to common stock for

months

three

of

traditional duties of the

Disagreement

March 31, 1956, compared with

debentures outstanding on

informa¬

lic

Edward B. Burr

More Intra-Administration

first period of its operation as a
management
investment
comthe
past
$27.06 a share on Dec. 31, 1955.
pany with continued increases in
years has
The asset coverage per $1,000 of net asset value and income for
common

Mr.

45

(2281)

The Commercial and Financial Chronicle
a

.

.

.

46

The Commercial and Financial Chronicle

(2282)

The following

Indications of Current

latest week
week

Business Activity

or

or

operations (percent of capacity)

steel

Indicated

Week

Ago

82,375,000

May 13

2,345,000

2,483,000

•2,373,000

-

Blab

of "
April 27

Crude

Kerosene

April 27

(bbls.)
output (bbls.)

Distillate

fuel oil output

.

(bbls.)

_____

Residual fuel oil output (bbls.)—

17,447,000

April27
April 27
April 27

stills—daily average (bbls.)_

to

runs

Gasoline output

7,146,000

April27

(bbls.

average

gallons each)

42

7,149,190
7,694,000

7,159,000

24,599,000

25,444,000

V

ASSOCIATION OF AMERICAN RAILROADS:

2,044,000

2,238,000

2,126.000

11,982,000

12,033,000

10,521,000

7,858,000

8,182,000

8,205,000

7,796,000

CONSTRUCTION

ENGINEERING

'.

Public

M

198,209,000

176,759,000

♦17,867,000

17,333,000
62,583,000

(U.

32,476,000
>

■'

»«

Bituminous coal

Pennsylvania

and

778,398'
:

,

347,686,000

150,194,000
129,312,000

163,676,000

Electric output

20,882,000

14,620,000

10,160,000
563,000

9,900,000

April 28

5

10,815,000

3

May

.

.503,000

553,000,

••10,867,000

277

,

<

10,846,000

•

•

May

_

,>

•

*

.

2l7

236

,

(per gross ton)

METAL PRICES

(E. &

Straits

tin

York)

(New

Lead (New York)

Louis)

at

Zinc

5.179c

5.179C

1

$59.71

$56.59

1

$55.00

$55.50

$53.67

45.775c

46.375c
47.750c

COTTON

SEED

100.375c

91.125c

16.000c

16.000c

16.000c

Crushed

*

2
2

15.800c

15.800c

15.800c

13.500c

13.500c

13.500c

12.000c

Produced

8

93.96

93.75

93.31

96.36

105.00

104.83

106.56

Stocks

109.06

Shipped

.

109.79

112.56

Stocks

106.92

108.34

110.34

Produced

106.56

109.42

Shipped

U.

S.

YIELD

104.83

8

100.49

100.49

101.64

104.31

May

MOODY'S BOND

8

May

8

103.80

103.47

105.34

107.44

Stocks

May

8

107.09

109.79

106.92

110.15

Ma^

Aa

May
May
May

_

Railroad
Public

;

~

Industrials

May
May
May

Group

Group

8
8
8

May

L

Group

Utilities

8

MOODY'S COMMODITY INDEX

NATIONAL PAPERBOARD
Orders received
Production

1949

April 28
April 28
April 28
April 28

i

activity

Unfilled orders

*

(tons)

AVERAGE

at end of

,

DEALERS

period

May

_

EXCHANGE

Odd-lot

SECURITIES

—

sales

Number

SPECIALISTS

AND

dealers

by

EXCHANGE

(customers'

N.

ON

Y.

-

3.36

3.46

3.18

3.26

3.46

3.46

3.36

3.20

3.72

3.65

4

short

sales

Customers'

other

sales.

Round-lot
Number

sales
of

3.43

3.44

3.45

3.33

3.39

3.34

3.16

417.1

420.2

420.4

Other

276,341

241,807

291,219

290,223

293,282

281,098

290,965

266,188

99

99

101

96

535,018

557,227

546,994

507,635

109.13

109.06

108.00

.

106.82

EXCHANGE
FOR

Total

AND

ACCOUNT

1,390,350

THE

STOCK

MEMBERS

N.

Y.

Lead

METAL

1,389,593

1,450,202

8,609

6,807

1,443,395
$74,191,937

FOR

ACCOUNT

OF

342,490

380,650

Total

of

specialists

in stocks in

342,490

380~650

595,080

653,300

554,670

Other

Other

557,770

576,590

537,550

12,906,630

14,101,860

15,927,910

Other

13,464,400

14,763,510

16,504,500

MINES)—

1,475

!
1

j

<
»

'',

•

(in fine ounces)!

133,349

(in fine ounces)_.

;•

(in short tons)_

(E.

J.

•135,017

■r

'

*26,526

46.161c

46.728c

46.964c

157,016

3,061,214
93,027

•%j94,519\

27,038

...

M.

&

89,412

•2,869,878

3,028,070

<.

_i

48.532c

26,581

QUOTATIONS)—

(per pound)—'■*
refinery

"

'

-

|

a

.

'

^

\

35.700c

•

37.938c

*

16.000c

16.000c

15.800c

14.800C
£104.467

'£114,938

£118,696

£104,141

Silver, New York (per
Silver, London (pence

(per pound)—.;

15.000C

'

13.500c

t
-

-

•13.500c

ll\925e

£98.241

£101.560

£89.06$

£96.806

£98.696

£87.868

90.875c

ounce>=___
per

York.

(per

78.982d

75.711d

i_—J

$2.80494

$2.79649

99.310c

99%—

-

99.616c
$35,000

$266,560

$258,778
36.470c

33.000c

33.000c

33.500c

\

pound) bulk, Laredo
:
(per pound) boxed, Laredo—

100.616c

36.470c

{

98.310c

$35,000

;_____

(per

Antimony

87.071c

78.781d

$2.80772

ounce,

Antimony

,

91.143c

(

ounce)-.

Sterling Exchange (check)
Tin, New York Straits

15,039,980

33.500c

91.413c

,,90.413(5

.

S35.OO0
$315,846
31.970C
'

28.500c

29.000c

309,280

1,978,180

403,300

337,870

1,469,780

1,755,000

1,442,650

1,460,050

1,751,930

1,863,350

1,969,290

$1.70000

$1.70000

$1.70000

$1.70000

$1.70000

$2.60000r

$2.60000

(per

ounce)

—___^_L

—

_2

^

_!

pound)—

(per

Cobalt, 97

285,220

1,631,420

$78,500

$1.70000

$1.70000

§Cadmium

1,814,960

1,881,630

$103,000

$1.70000

Platinum,'refined

.

1,790,900

$103,000

tCadmium, refined (per pound)—__^__
tCadmium (per pound)
;___

the

359,850

^

$1.70000
$2.60000
'

.

Bismuth

(per

.___

•

$2.25

$2.25

$2.25

$814,236,119

$327,431,700

641,106,316

612,844,242

78.74

-74.07

$84,097,373

SS4.202.283

67,038,900
47,000,000

98,564,472

$275,844,912

$276,403,742

$276,686,284

5,711,817

pound)

64.500c

$99,941,480

;

32.500c

76.29

t

33.300c

678,174,935

(per pound)——

24.621CT

$888,984,912

plus ingot" (per pound)

Magnesium ingot
•♦Nickel

25.900c

64.500c

Aluminum, 99%

7,071,786

6,401.175

$270,133,095

$269,331,956

$270,285,109

23.200c

-

28.500c
.

64.500c

331,960

30,100

39,990

14,000

386,320

409,510

19,900
406,980

337,900

April 14
off

406.940

April 14

sales

444,500

416,420

449,500

426,880

351,900

floor—

EARNINGS

RAILROAD
,

SOCIATION OF

CLASS

April 14

633,258

714,080

556.210

68,130

93,720

108,060

122,500

April 14

sales

572,402

.April 14

sales

785,143

806,002

801,550

656,190

909,610

778,690

April 14

853,273

899,722

Total

April 14
April 14

2,807,802

2,921,828

3,052,110

AMERICAN

537,010

465,830

2,614,113

2,675,562

2,839,950

2,463,870

April 14

3,021,623

3,212,572

3,305,780

2,885,590

(AS-

'

RRs.)—Month

Total

operating

expenses

Operating ratio
!

Taxes

421,720

April 14

ROADS

operating revenues

2,703,130

407,510

I

March:

of
Total

Total sales

^
Total round-lot transactions for account of members—

purchases

Short sales
Other

sales

Total sales

{

WHOLESALE PRICES,
LABOR— (1947-49

All

Net

railway operating income

Net

income

UNITED

NEW
=

SERIES

—

U.

S.

DEPT.

OF

after

STATES

charges

of

(estimated)

fund

DIRECT

I

I

balances

109):

commodities

May

113.8

113.7

113.5

110.4

products

May

89.0

88.6

88.4

92.5

Processed foods

May

101.5

101.2

100.8

May

78.5

77.5

76.3

85.8

May

121.4

121.4

121.2

115.7

debt"

Computed

-

annual

78,000,000

AND

2.537%

rate

2.533%

2.331%

108.3

Meats

Net

88,97&,188~
70,000,000

omitted):

April 30—

General

before charges

GROSS DEBT

GUARANTEED—(000's
As

Commodity Group—
Farm

All commodities other
•Revised
of

1

£121.125

14,502,430

April 14

purchases

Short

OF

Jan.

1,

figure.

1956,

as

than farm and

foods

Ulncludes 714,000 barrels of foreign
against

Monthly Investment Plan.




Jan.

1,

1955

basis of

crude runs.

125,828,319

tons.

§Based on new annual capacity of 128,363,000 tons as
tNumber of orders not reported since introduction of

fBased on the average of the
producers' and platers' quotations.
§Average of quotation on special shares to pteter.
([Domestic five tons or more but less than carload lot, boxed.
§§Price for tin contained.
••F.o.b. Port Colburne, U. S. duty included.
ttAverage of daily mean and bid and ask
quotation at morning session of London Metal Exchange.
ttDelivered where freight
•Revised

from

East St.

figure.

tBased

Louis

exceeds

on

the producers' quotation.

0.5c.

|
j

1,315

*

Silver and Sterling Exchange—

444,310

April 14

Total sales

Total

(BUREAU

■'«

1,351

1,544

the floor—

on

Short sales

Other transactions initiated

1,370

1

4,336

5,222
--

j
1

1

15.800c

.

661,650

April 14

Total sales

:

1

U. S. price)—
Quicksilver (per flask of 76 pounds)
(IAntimony, New York boxed_

April 14

Other transactions initiated
Total purchases

1,263 '•

-

-457

705

'

February:

PRICES

Gold

April 14

sales

r

5,115

States:

§§Tin—New

which registered—

Short sales

»■

j
—

i

626

-

£115.713

363~350

April 14

449

-

'

MEM¬

purchases

586

832
673

l

(1,000 pounds)—

•.-

363,350

283,550

,

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions

745

L

^

i

(SHARES):

Total sales

179^044,

*■.

—

:

.

1,414,838.

283,550

April 14
April 14
..April 14

139,5831

176,811,

tfPrompt, London (per long ton),
ttThree months, London (per long ton)
Zind (per pound)—East St! Louis_i_
; i
ttZinc, London, prompt (per long ton)—
>
ttZinc, London, three months (per long ton)*

STOCK

-

186,617

317,298»

Common, East St. Louis

$66,682,865

1,380,984

April 14

200,419

'

99,680

Common, New York (per pound)

6,094

>

98,197",

bales)—

Lead—

1,420,932

5,834

sales—

TRANSACTIONS

'■

|
|

'

:

T

Copper (in short tons.

TRANSACTIONS

sales

'

L-;

of

Silver

'

$70,967,466

April 14
ON

SALES

,

67,434"

/

production of recoverable metals In the:

'Gold

$73,079,193

1,214,538

dealers—

ROUND-LOT
OF

1,624,939
$85,358,730

April 14

Short sales

ROUND-LOT

1,711,897
$90,602,135

April 14

round-lot

Other

1,527,717
$79,965,877

1,208,704

sales

TOTAL ROUND-LOT STOCK

208,617
140,983

.

138,013

149,181

"

138,965
140,654

Average for month of April:

$61,920,057

,

Round-lot purchases by
Number of shares

140,675

111,642
31

OUTPUT

Month

Mine

j

'

197,083

113,352

(1,000-lb.

Shipped L
METAL

1

218,928"

258,914

...

March

399.9

by dealers—

sales

278,909

.287,668

199,479

Export refinery

Short sales

220,215

-

229,954

3.18

3.40

>

161,402,000 <

138,285,000:

Stocks March 31

3.31

April 14
April 14

shares—Total

568,369,000

182,780,000

147,672,000

___—

Domestic

April 14
4pril 14

Dollar value

417,359,000

180,538,000 :

148,382,000
250,690

:

Produced

Copper

April 14
April 14

Customers'

396,811,000

:

-

Motes, Grabbotts, eto.

3.49

3.52

I

3.72
3.54

purchases)—t

Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales

171,702,000 >

'

3.15

COMMISSION:

shares

of

125,738,000/
150,978,000

I

■

Shipped

3.03

3.34

*

180,058,000

March 31

Produced

3.22

3.31

3.33

;

.

^_iLL

(pounds)

Stocks March 31—,-:

2.77

3.02

2.99

STOCK

Dollar value

.

31——

(running bales)—

Hull Fiber

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT

V

,

March

Shipped

"

3.28

REPORTER PRICE INDEX—

100

=

*

ASSOCIATION:

(tons)

OIL, PAINT AND DRUG

•

*'

195,888,000

(tons)

United

(tons)

Percentage of

3.45

8
8
8
g

A

*

2.97

8

May

105.86
*

8

—May

Average corporate
Aaa

105.00

106.04

AVERAGES:

DAILY

Government Bonds

Baa

105.17

438,002

1,010,361

211,401,000

Produced

Linters

36,302',

,

'

"

155,007,000
;

(tons)

May

72,307

617,695

1,352,811

170,524,000

L„

-

(tons) March 31

104.83

;

?

•

193,507,000

31_.,—_

____■

\

n

107.44

-t

•

'

,

(tons)

Hulls——

107.98

-♦May -A

r"

'

(tons)

107.09

>

496,535

894,539

(pounds)

(tons)

8

±

'38,263
—

March

Cake and Meal—

8

Jfc,

1,758

of

__L__.L_—y

„

Consumption

8

Group

2,735

1,785

PROD*<

(tons)

—L~

Stocks'(pounds)

May

Group

2,974

.

„

mills

at

Refined Oil—,

.*'>

May

Utilities

SEED

COMMERCE—Month

./Produced (pounds)
Shipped (pounds)

*

May

Industrials

OF

(tons)

Aa

Public

COTTON

•

Crude Oil-—

14.800c

Group

6,974{
2,481

1.800

«.

,j

4,912 ;

7,488

2,933

'■>

____

—

1,530
<
,

2,729 •"

/

2,839

_______

___

5,479

1,599
5,579

7,572

_L_,

L

11,053

6,209

•f

1,599
-

"

14,397

5,663

„_

"

22,974 1

27,784

6.137

_

loans—:i

$29,948

$35,272

27,964 !
'14,565

\.. "

Aaa

Railroad

$35,536

u_L

i

-

AND

Seed—

Average corporate

"

"

-

iStocks- (tons) March 31

,

15.000c

—

i.

••;-

credit

term

L'JL

UCTS—DEPT.

Cotton

Produced

Baa

|

■>

•

36.250c

98.500c

—May

i

r

SERIES—Estir

—

credit

Service

35.700c

46.500c

A

127,986

RE¬

FEDERAL

modernization

^Stocks .(pounds)

97.875c

MOODY'S BOND PRICES DAILY AVERAGES:
U. S. Government Bonds—

489,229 f

160,956

■--'*h

'S

——

-

$35.00

May
May

THE

intermediate

Single payment loans..
Charge accounts

4.797c

$60.29

43.900c

at

(East St. Louis)

5.179c

$60.29

45.475c

at

(St.

Lead

OF

and

,.Non-instalment credit

237

—May 2
May 2
May 2
;—May 2

at

585,008

100,293

OUTSTANDING—BOARD1

loans

Personal

.

t,

617,155

501.995

_„

SYSTEM—REVISED
short

Repair and

J. QUOTATIONS):

M.

Electrolytic copper—
Domestic refinery at
Export refinery at

745,964

.

May

Pig iron (per gross ton)
Scrap steel

831,892 ]

1,633,273
V

602,288

.

•

__i

GOVERNORS

OF

9,586,000

—1

:

$1,449,047

$1,868,700

.'

<

.May

(per lb.)

L

:

municipal

CREDIT

Received
steel

$2,379,237

1

of

LI—.,

—

March:

&

IRON AGE COMPOSITE PRICES:
Finished

65,127

'

120

122

113

,

INC.__

CONSUMER

t

8,563,000
419,000

10,280,000

•

DUN

—

53,070

En-

—

,

,

:H

INDUSTRIAL)

and

Federal

'*

•118

April 28

(in 000 kwh.)

BRADSTREET,

State

■

INSTITUTE: *

(COMMERCIAL AND

,

Month

—

,

'

178,2%,000

.•

FAILURES

89,589 i
74,579

46,106

1,266,412

construction

-

■

EDISON ELECTRIC

(tons).

CONSTRUCTION

NEWS-RECORD

r
in millions as of March 31
$389,375,000
247,070,000
Total consumer- credit—
120,452,000'
142,305,000
Instalment'-credit,.
108,750,000
106,863,000 v.,' Automobile Lu___L;
11,702,000 i '
35,452,000
Other consumer goods.

$276,501,000
156,049,000

$525,982,000

238,826,000

3

100

=

84.204

40,038

'

629,168

679,502

679,867

678,088

'725,900

.'

724,944

763,437

....

DEPARTMENT STORE SALES INDEX—FEDERAL RESERVE
SYSTEM—1947-49 AVERAGE

of period

construction

Public

:,

j

$389,020,000

3
3
3

3

—

83,786 f

91,690

74,788
47,907

>.

■

April 28

lignite (tons)
(tons)—*.

anthracite

.Private

/

mated

May

—

(tons of

grades

4TotalU. S. construction..!—.:

...

SERVE

May

;

ENGINEERING

GINEERING

L

'43,887,000

33,896,000

32,829,000

BUREAU OF MINES):

S.

all

April' (000'8 omitted):

67,635,000

•

COAL OUTPUT

■'

21,012,000

61,926,000

CIVIL

*

;—May
May

.

and municipal
Federal

Ago

•

—May

construction

construction

State

Year

Month

•

88,664

Unfilled orders at end

-

-

ENGINEERING

—

construction

S.

U.

Private

192,933,000

17,894,000
61,923,000

\

NEWS-RECORD:
Total

190,188,000

—April 28;
cars)—April 28

freight loaded (number of cars)
freight received from connections (no. of

Revenue

CIVIL

of that datef

Previous

24,099,000

11,867,000

output

pounds)

Shipments (tons of 2,000 pounds)
Stocks at end of period (tonsr

6,835,950

24,904,000
2,205,000

terminals, in transit, in pipe lines—
Finished and unfinished gasoline (bbls.) at
April 27
Kerosene (bbls.) at__
April27
Distillate fuel oil (bbls.) at_—
April 27
Residual fuel oil (bbls.) at—
April27

7,129,900
7,436,000

Stocks at refineries, bulk

Revenue

are as

INSTITUTE, INC.—Month of

smelter

zinc

2,000

output—dally

condensate

and

of quotations,

cases

Month
AMERICAN ZINC

AMERICAN PETROLEUM INSTITUTE:

oil

in

or,

either for the

are

April:

Equivalent to— .
Steel ingots and castings (net tons)
Crude

Thursday, May 10, 1956

Latest

Ago
97.2

100.9

•96.4

SS6.5

.May 13

that date,

on

.

production and other figures for the

cover

Year

Month

Week

STEEL INSTITUTE:

Previous

.

Dates shown in first column

month available.

month ended

Latest

AMERICAN IRON AND

statistical tabulations

.

Number 5532

183

Volume

.

.

the

"Woman of the Year" award from

took
down
California Oregon Power Co.'s $16

held

same

of

true

1

the

which

million Of first mortgage, 30-year
bonds

37/s

as

fered

to

While investors
the ramparts
is

reofyield 3.80%.
and

percents

101.335

at

for

are

new

not rushing:

issues there

.gainsaying the fact that
are much
more
interested
was
the case only a few

no

they
than

brief weeks back.

looks

world

The

.

brighter

to

underwriting bankers-and their
dealer
associates these days as

wTir'it"should "considering°

See forSt

the
has

issue market

lone-

aLnthings

aTiL thl ^st f^tnfcrht

-

that

fYnlv

•looked pretty dralr with one syn-

bidding,

where

sold

been

the

via

route, has become decidedly more

'realistic.

have
look
'

shown
over

The

outlets,

dsfactory portion of such

for*!bids

have come to. market.

land
were

ceased to exist this
some
of the issues which
turned loose - to seek their ;
just " about

sr/ed

from their lowest

recovery

levels.

''

•

y•

groups

sized issues brought out this week

not "out-the-window" oper-

United

ations,

Banquet

are

the

undue

without

off : to- investors

quarterly dividend of forty (40)
share for the second quarter

delay.

States,

*

shadow

of

the

investment

the

^

world,

banking

basking in the
impending huge

York

State

meeting* to

General Electric Co. undertaking,

i

:

GE

.

.

Brisk

Inqmry

Indications

'

From

•».

minion

of

..

that;; GeneraT. Society's

are

of

Co.'s «offering

Electric

3:15 p.m. until

$300

20-year debentures, is

interest

arousing' widespread

'

Ranking among the largest in¬
undertakings

handled

as a

and

has

more

*•,.

market and
the issuer's high credit standing.

-

keeping with the

Dinner

record

business

on

1956

25,

June

payable

declared,

stockholders of

and

.»

G. GREENBURGH

1956.

June 4,

Frank J.

Berberich

Common

Dividend

Southern

have declared
cents

;

(30$)

a

Railway Company
dividend of thirty

per

share

on

~

•

.

1,, 1956.

FOREST

Nibroc Towels

—

[MiBiyjPEPPERELL
A

.

.

dividend of

regular quarterly

M

irPPErR-tUj

MANUFACTURING

per

8hare

on

the Common

Stock of this company

PAB&ICS I|
ABRJCSI

declared
to

has been

payable June

1, 1956

stockholders of record at the

18, 1956.

w.

skowbo

Senior

.

and

Vice

Trust Company

President

to stockholders of
May 8,1956.
mailed by the Old Colony

'

..

of Boston, Dividend Disburs¬

Treasurer
Frederick D. Strong,

Secretary

O'okiep Copper Company
Limited

THE DAYTON POWER

>AND LIGHT COMPANY

CITIES SERVICE COMPANY

"DAYTON, OHIO
135th

on

its

Common

($.60)

stockholders of record at the close of business May




per

1956, to

stock, payable June 11,

18, 1956.

on

the Common

Secretary

Stock of the

Company, payable on June 1,
.

to stockholders

1956

of record at the close

of business on May

record

on

Hotels Corporation at

15, 1956.

May 4, 1956

SELLERS, Secretary

today declarwl a

end dividend of thirty shillings
per share on the Ordinary Shares of the
Company payable June 1, 1956.
The Directors authorized the distribution
of the said dividend on June 12, 1956 to
the holders of record at the close of busi¬
ness on June 5,
1956 of American shares
issued under the terms of the Deposit
Agreement dated June 24, 1946. The divi¬
dend will amount to approximately $4.19
per share, subject, however, to any change
which may occur in the rate of exchange
South Africa funds prior to June 1,
1956. Union of South Africa non-resident
shareholders tax at the rate of 7.05% will
for

be deducted.

By Order of the
New York,

Board of Directors,

New York, May 9, 1956.

tho

(1) share of the Com¬

Stock of United Hotels Corpo¬

ration for each

hundred flOO)

one

Devel¬

opment Corporation

"Dividend No. 38

Board of Directors

mon

The

1956.

shares of stock of Shawano

F. A. SCHECK, Secretary.

GEORGE
ERLE G. CHRISTIAN,

Dividend
has declared a

regular quarterly dividend of 55c per
share

share

Common

The Board of Directors

quarterly dividend of sixty cents

15,

United

_

a

1956 to stockholders of

rote of one

...

declared

declared

payable on May 31,

dividend

dividend it
payable in the shares of stock of

final year

Company has

opment Corporation have

May

The

Dividend Notice

Shawano Devel¬

Directors of

The

a

ing Agents.

/

:

CORPORATION

May 15, 1956,

record at the close of business
Checks will be

s.

"SHAWANO
DEVELOPMENT

regular quarterly dividend of Seventyper share has been declared

five Cents (75^)

payable
close of business May

Bo8ton> ApHl t7flgB6

DIVIDEND NOTICE
A

DIVIDEND NOTICE

COMPANY

r-AA D KI V-, O

25^

s

Service

'i

York 20, N. Y«

PRODUCTS

,

Cities

May

'

30 Rockefeller Plaza, New

.

of

1

14,1956.

Bermico Pipe

NOTICE

DIVIDEND

-

The Board of Directors

stockholders of record at

the close of business on

Engineered Pulps and Papers

,

.

hi

June 11, 1956.

on

Meeting

*

.

to
'*

May

This dividend

1956.

payable

,

'

Oetjen
Chairman of the board and President

,

capital stock of

50 cents per share on

'3,

Henry

HAMPSHIRE

NEW

BERLIN.

-

business June

a

the

on

on

June 15, 1956, to stock¬
holders of record at the close of

DIVERSIFIED

NOtTcE \J

has declared

Cash Dividend

stock of said Company, pay¬

able

CHICAGO, 111. —Miss B. Fain
Tucker,
Judge
of
the
Circuit
Court of Cook County, 111., will

DIVIDEND

The Board of Directors

the com¬

mon

JERSEY)

NEW

(INCORPORATED IN

folk

COMPANY

STANDARD OIL

of Nor¬

The Board of Directors

Secretary

.

r

£sso

RAILWAY COMPANY

to

the close ef

at

a

amply
protected P-m. The subject of her talk will
against any prior liens in the fu- be, "From My Side of the Bench.'
ture, - the
debentures naturally
Judge Tucker, educated at Dt
will have wide appeal for many'Pauw University and University
portfolios. ■■■■ ' v..
'
■••■■■■*
of Chicago Law School, is the
"■'I '
/
first woman elected to serve as
Moving Along'
'
judge in Cook County since 1923
The
group
which
acquired and second in the history of Cook
Niagara Mohawk Power Corp.'s County. She is active in church
$30 million of bonds as 3%s and work and civic affairs, and has
reoffered at a price of 101377, for been awarded many citations in
a yield of 3.55%, was reported " to
recognition of her outstanding
be
moving the issue along in achievements and
services.
In
satisfactory manner.
/' ,1955, Judge Tucker received the
-.

May 2, 1956

June

NORFOLK SOUTHERN

A quarterly dividend of 35 cents per
on the Common Stock has been

SANITARY CORPORATION

Beginning April 30, 1961,; a
address the Investment Women oi
sinking fund of $13 million annually will be applied to redemp- Chicago, at the next dinner meettion of the issue, plus a similar big on Tuesday, May 15, 1956, at
optional amount. Representing the • the Chicago Bar Association,' 2?
only funded debt of the big com- South La Salle Street, at 6:0(
pany,

URQUHART,
Treasurer.

'

Chicago Inv. Women

that the debentures will he priced
in

M. W.

seventy-five

6, 1956.

share

-

BROWN m COMPANY

expected

hankers, it is generally

of

of record at the close of business

AMERICAN RADIATOR I STANDARD

being

negotiated deal with

of

May 21, 1956.

per

May 23, 1956.

ness on

V;

;

p.m.

than 8,100 members;

record

Treasurer

.

dustrial

payable

quarterly dividend of $1.75 per share
on
the Preferred Stock has been de¬
clared, payable June 1, 1956 to stock¬
holders of record at the close of busi-

on

Society members only.

cents

JOHN

investors judging by re- ' The'New York State Society of
ports of inquiries coming to hand. Certified Public Accountants now

among

}

the capital stock

A

Federal
panel on
current Federal tax problems for
Committee

Taxation will conduct

dividend

extra

COMMON DIVIDEND

for £

5:15

on

Corporation,

the close of business June 6, 1956.

'PREFERRED DIVIDEND.

that afternoon, Mark E. Richard
SOn,
C.: P. A.; Chairman of the

s

at

Amewcan -<£tattdard

brief business session at 8:00 p.m

"

/,r.-v

share
this

June 8, 1956 to stockholders

share was declared,
payable June 27, 1956, to stockholders

a

next Tuesday.

quarterly dividend of fifty (50^)
per share was declared, payable
June 27,1956, to stockholders of record

cents

(75^)

;

second-quarter divi¬

a

Seventy-five Cents (7Si)

A

Limited U. S. A., Int.

An

Six members of the Society 'wil
few weeks have receive certificates denoting acwrought. The1 industry generally five membership in the New ".York
is girding for the task of hanState Society of Certified Public
dling the big GE offering due out Accountants for 50 years,

change which

j

of

JEANNERET,
Secretary and Treasurer

finds itself giving thanks for the

.

per

of Directors has

May 3, 1956

T. E.

*

*

New York 6, N. Y.

61 Broadway,

Society

order

Board

dend of

;

will speak at the

of the Hotel Roosevelt.

the

,

South Bend, Indiana

President Harold R. Caffyn wil'

call

11, 1956

June

May 25,1956.

on

Drewrys

oi
Certified Public Accountants Maj
14, at 6:45 p.m. in the Grand Ball¬
room

payable

stock,

'

Accordingly,

*

MIAMI COPPER COMPANY

and Annual Meeting ol

New

The

stockholders of record at the close

to

sioner of Internal Revenue of the

,

groups sponsoring
them
confident that they will work

«•

of 1956 has been declared on the com¬

Russell C. Harrington, Commis¬

v.r

CORPORATION

%

cents per

mon"

DODGE

PHELPS

declared

A

were

;

toeing the line for

one.

,

"

DREWRYS

oi

array

HoW Annual Meeting

-

•;*

of

May 8.

on

General Offices: Atlanta, Ga.

of business

/ While several intermediate*

business

Northern

day

N. Y. State CPAs to

fair-

enjoyed

have

levels

own;

i

of record at the close

Delta Air Lines, Inc.

the usual

with

banking

dealer }i inventories

Meantime,

;have

following

payable

stockholders

June 4 to

NOTICES

Secretary

Rome, N. Y., May 4,1956

stock of

company,

,,

Gerard A. Weiss,

of $10

Illinois Gas Co. has $15 million of
25-year, first mortgage bonds up

disposition1 to
offerings as they

more

new

the

®11thl
tl0n, will preside at the meeting.

June 11, 1956.

on

share

capital

the

on

1a

million of debentures.

tional investors, or at least a sat^

-

quarterly

a

dividend of 30c per

jo"r"alIS&if

DIVIDEND

declared

has

Capital Stock of the Corporation,
payable June 28, 1956, to holdeni
of record at the close of busineaa

Lines, Inc.

of Delta Air

of Roma

Corporation has declared
consecutive Dividend No. 69 fov
35 cents per share on the Common
Cable

Board of Directors

The

tional Labor Relations Act," and
written extensively ; for i legal

banking group will market

%

for Celotex Corp., an issue

institu-

in. consequence

And

v

day

j

.

Dividend

The Board of Directors

CASH DIVIDEND No. 35

Judge Tucker, is also well known
as an author in the Held of law,
having published "Guide to Na-

$12.5 mi,li°n of bonds along with
90,000 snares ©f $100 par,Mcumulative> preferred stock. -The next

YORK!

NEW

ROME

69th Consecutive

by .Indianapolis
Alumni
Chapter," of
Theta
Sigma
Phi.

incomes to market it will encounter some mild competition
from the ventures of other corporations. But next week's calen- ,
dar 1 is not of a nature to 8ive
bankers
Sreat Pause"

issues
auction

new

'<0*

Year

Eleetric's offer-

On Tuesday .Pennsylvania Elec--'
since then trie Co. is slated to open bids on,

But

to break and run.

have

Competition

General

after another being forced

dicate

the

Mild

When

new

the

over

come

that

better

;

^

ROME CABLE

-J Alumnae Achievement Award and
• was chosen Indiana Woman of the

j ^

k

•

t •.

DIVIDEND

NOTICES

DIVIDEND

NOTICES

Quota Club of Chicago. In
1954 she was also honored with
awards as Woman of Distinction
from the Women's Advertising
Club of Chicago; Achievement
Award from
the
Chicago
and
Northern District Association;
Mary Margaret McBride Citation
sponsored by United Church' Women;
Kappa
Kappa? Gamma

The

syndicate

47

(2283)

The Commercial and Financial Chronicle

.

held by eoch

the

record dote.

stockholder
A

and
of

on

a

a

the

for

certificate

share (if

full

shores

for the fraction

certificate

any) of United Hotels

Corporation stock to which eoch
stockholder is entitled will be i»sued to him.

The

distribution

will

be

mode

of this

by

dividend

the company's

transfer agent,

Registrar and Trans¬

fer Company,

Jersey City.

John Bollinger, Secretary
Shawano

Development Corporation

430 Park Avenue, New

York 22, N. Y.

,

The Commercial and

Financial Chronicle

..

Thursday, May 10, 1956

.

(2284)

48

"trust fund," and with
Federal spending
of $38 billion, and
combined
state
and
Federal

expense

BUSINESS BUZZ

prospective

13 years

over

n.

spending

•

•

This

from the Nation's

with

And You

Behind-the-Scene Interpretations

Capital

billion

$51.5

construction
all

of

expenses

the

This, of
Whenever

out-'to'

sell

whenever a

end

and

erations,

give advance notification there¬
of to the Department of Justice

Federal Trade Com-

the

and

mission.

»

tion,

would

participants

the

I
;
i.

business to

biH.
•

proposal of the President's, as
approved or written in the Ad¬
ministration, is that it would
apply to ' any ' mprger
which
•.$10.

words, the Adminis¬

bill rintfoduces a new
concept into
antitrust regulation. That con¬
cept is mere size. It might be
added, that as businesses go in
this modern U. S. A., it is a
pretty small size at that.

tration
*•

Spiritual and intellectual
of this new idea is none
than Stanley N. ' Barnes,

The

.

father
other

Fed¬

who is slated to become a

but in; the mean?time is hanging on as chief of
the antitrust division of the De¬
eral

judge,

partment of Justice, where he
is trying to hang out a record
for being one of the nation's
most ardent trust busters.
Heretofore
those

were

dominated
*

ried

size

monopolies"
allegedly
business, were in a
"bad

which

dominate,

the trust busters have

compelled to say that mere
in dollars was not in it¬
One reason was that

self bad.

sign in the

there was no dollar

Clayton or Sherman acts which
flagged a "monopoly" as such. !
Business Indifferent

Eisenhower, with perhaps
not too much reflection on what
Mr.

.

*■

was
sold by Mr. Barnes,
would agree to hang the dollar

he

business mergers.
From here on, if this bill were
to become law, the figure of $10
sign

'

all

on

*

become

breaking

point

the

which

would

million

any

at

business merger or consolidation
could be marked

as

a

monopoly and come under the
careful scrutiny of the antitrust
even

of

was

under

And

.

$10-million

the

of the total business

1%

which it

,

if

did not constitute 1/10

concern

in

made peace with the boys in the

air

marble,

-

conditioned

buildings of the Federal Trade
■

Commission
ment

-•

boss

the

the

if busi-

took all the suggestions of
antitrusters

Y.)

pre-notification

academic

no

threat.

Celler

Emanuel

Chairman
N.

.,

merger

is

reg¬

(D.,

it easily out of his

got

Judiciary Committee, only hav¬

to put his name on the
proposition already drafted by
ing

Kenneth B. Keating (R.,
N. Y.), the
ranking minority
member of Judiciary, who
Rep.

bill from the De¬
partment of Justice or the latter's help in writing same.
either got the

it

When

before

came

exhibited

the latter
in

interest
So

Sam Rayburn in a
quick political decision thought
that what was tasty sauce for
the White House political goose
Speaker

just as tasty for the Demo¬
cratic
gander.
Therefore the
to

of
a

under a suspension
Rules, and there wasn't
voice raised in objection.
It
it

pass

the

by

passed

scattering few
opposed. This

a

voice votes, none

possible because it was un¬
derstood to be a White House

was

proposition as it was.
Senate Doubtful

and

modified

Harley

W. Va.),

both

who
full

the

(D.,
Chairman of

Kilgore

M.
was

Senate

Joseph

Wyo.),

became

Kefauver,

O'Mahoney is rarely

Senator

no

new

scheme

immunity from future




prose¬

business" they have
needles into, if
they refused a piece of legisla¬
tion requested by the leader of
the "big-business-minded" Ad¬
the

tion

ing on his say-so, Joe can
out

to

be

a

right

turn

O'Mahoney has said

on

little about the pre-notifi¬
cation bill, other than to ob¬
serve that he doesn't like broad
very

the

correspondent would
like to outline what is at this
This

•;

exploit

political merchandise of the
Fair Dealers, has any

New and

Senators, and that
includes
a
noteworthy
the

the

stitute

extreme

President

pre

-

his

trap

bill

opening wedge in
Left's ambition to

regulate the size of business as
such.

merger

from here on,

President Eisenhower's

Eisenhower

it's not

on

tag on to his repertoire,
anything slick and bright that
looks like it would win votes,
and

bad bet

a

continuing this hunching —
that it will fail to come out of

—

committee.
in the

out

later

Mr.

Eisen¬

the tre¬
mendous inventory of welfare
and other proposals he outlined
at the beginning of the year in
his various messages, is some¬
thing he really stands for, and
by gosh, why doesn't Congress
give them to him to sign.
great
tue

Eisenhower

public

play

makes

of what

He is particularly
susceptible to crack - pot
schemes because of his own pe¬

hower must pretend that

Mr.

knowledge

much

he is doing.

get to the floor, it is a natural
demagogic cinch to pass.)
or

Roosevelt, often with¬

and like

(Once on the floor

present climate, if it does

Sooner

modus

operandi, in this respect like
Frank Roosevelt's, is to pick up

this
notification bill
closed

a

for the vir¬
bill,

of the pre-notification

for getting out a
large repertoire rivaling a mail
order catalog in its versatility
culiar

yen

and number of

offerings.

Highways Slated to Be OK'd *
It- is

without

will pass

with

its

dollars

reported that the
much trouble

now

Senate

& Co.; Inc., Arrangements; Robert
Baldwin, Morgan Stanley &
Co., Golf; J.
Raymond Boyce,
Auchincioss, Parker & Redpath,
Tennis; Nelson R. Jesup, Clark,
Dodge & Co., Horseshoe Pitching
Contest; Philip D. Baker, White,
Weld & Co., Attendance; Harold
Sherburne, Bacon, Whipple & Co.,
&

Beverage; Wm. R. Cald¬

Boston

First

Corporation,

Trophies;
Raymond D.
Stitzer,
Equitable Securities Corporation,
Bawl
Street
Journal;
William

Renchard, Chemical
Corn Ex¬
change Bank, Bawl Street Journal
Circulation; Orland K. Zeugner,
Stone &

Webster Securities Cor¬

poration, Bond Club Stock Ex¬
change; and William H. Long, Jr.,
Doremus &

Co., Publicity.

Da«M S. LoMeH With
First Naf'l in Dallas
DALLAS,
Lobdell

is

Texas
now

—

David

associated

S.

with

the First National Bank in Dallas
in the Municipal Department. Mr.

Lobdell, who
dent

of

was

Lobdell

formerly Presi¬
&

of

Co.

New

York

City, has been appointed
special representative of the Bond

Department.

the huge highway bill,
diversion of a billion

or

so

a

collections

tax

,

Features; Robert W. Fisher, Blyth

well,

the

Jr., Bache & Co., EnWalter W. Cooper,
& Co.,
Special

F./'S. .Smithers

Food

this

that

course.

If

ert L. Hatcher, Chase Manhattan
Bank, General; Chairmen; Harry

would

professional) "liberal", or two—
responsible in a relative sense,

keeps

Wood, Struthers & :Co., Orin T.
Leach, Estabrook & Co., and Rob-

give government a tremendous
control over business and con¬

concept

only
a
hunch.
There
responsible men

some

even

that

Jr.,
Dominick
&
Philip K.
Bartow,

H.

hower, alert as he is to

Ike Holds Fate

among

,

it is doubted by
Dwight D. Eisen¬

Actually
some

guests at the dinner: Avery

tertainment;

loudly

flat.

nothing

fea¬

were

A. Jacobs,

Doubt Understands

of

are

r
;

-

public for this bill, it will be
the
statute
books in just

about

officials

grants of discretion to
an Administration.

>

■

So if Eisenhower yaps

Senator

„

'

in

Journal

Street

entertainment

new

Rockefeller,
Dominick,

pushing

ministration.

responsible

citizen.

stage

"big

been

O'Mahoney

responsible and it is a ques¬
of its passing or not pass-;

is

year

into

of existing
a highway

TRADING MARKETS
Fashion Park

Indian Head Mills
Geo. E. Keith Co.

Morgan Engineering
National Co.
Riverside Cement

smart

Carl Marks & Co. Inc.

anything but
in the broadest sense of

accused

of

Sightmaster Corp.

being

corporations,

and

big
to

FOREIGN

to hold

the
daylights out of big business,
which, after all, is probably far
more
profitable to Democrats

the

down

wars.

He just loves

under

comes

lation for which Joe

filling in for Estes
currently off to the

committee,

pilloring

derive

bill.

temporary
sub¬

hearings

;

pre-notifi¬
However, when it
to cases on legis-'

Chairman of the monopoly

of government, then the partici¬

.

cation

were

especially the "liberals," who
would identify themselves with

tionary bill like the

Bawl

the

reviewed by the fol¬
lowing committee chairmen who,
with officers of the Bond Club,

Senators on a spot,

he puts the

passing a revolu¬

subcommittee, Sena¬
C. O'Mahoney (D.,

In every way to suit the whims

would still

than actually

for

tures,

"Well, it'll never be a

Judiciary

the word.

merger

best seller—no plot—no love
angle—just nothing but figures!"

of

Committee and its anti-trust or

their prospective merger set-up

pants to the

golf and tennis
tournaments, the annual publica¬
and

If

Following the death of Sena¬
tor

Inc., and

the

for

tion

was

Speaker let Manny Celler move

Sydney

Chairman
& Co.,

were

.

the

whatever.

favor

its

no

8

given by

committees

Plans

or

Rules Committee of the House,

dinner

by the chairmen of the
in charge of
events., v''
•*; v'-\ \ '■
'!'

money,

j;■

House

This
bill

saving

Depart¬

Even

and

of Justice.

Passed

tor

nobody

law,

could merge until he first had
big

on.

so

monopoly

operating.
the

frivolous

system, against
ulation,. is for
and

enterprise

private

the

toward

well-disposed

is

is,_

saysit

potential

*

boys,

...

it

because

and

Administration

car¬

or

practices.

restrictive

on

Most of
been

a

to

position

■!

the historic

-

revolutionary

and

Administration is in
sense a "Republican"'

June

on

a

Day

various

hard

in the...illusion- that

generally

.the present

at

attended

even

put. to keep up with it. How¬
ever, it largely stems from the
sense of well-being the Ameri¬
can
business
community
has

jnflfi^-^'4<>re^f assets.....

In

that

Washington

Day

Day of the Bond Club

York

Duffy of Blyth

S

professional observers are

resultity-ari institution of

would

Field

;

in

New

completed

Partly this indifference arises
because there is so much going
on

4

nual Field

of

in this po¬
simply ap-;
the indifference ^ of
the pre-notification

at

palled

thing about this

crucial

,

Preparations for the 32nd An-

observers
capital are

litical

,

The

views.}

For Annual Field

circumstances

the

business

...

stopped from
completing the merger for a
period of 90 days, and would be
required to submit any information about the deal the anti¬
trust boys asked for.
..
under this law be

>'

'*

as

,

Under

pre-notifica-

After the

own

Bond Club Sets Plans

well as when
motivated only by
ordinary
empire-building ob¬
jectives, Uncle Sammy has the
right to say "no," and the right
to say "no"
is inherently the
right to direct the course and
growth of business.

for a law requiring the participants in any
prospective business merger to

1

the "Chronicle's"

mergers are

message

;

pretation from the nation's Capital
and may or may not coincide with

no

interests of capital
business efficiency consid¬

Early in the year the President came out in his Economic

i

competitor,

a

in the many

of this session.

Report

[This column is intended to refleet the "behind the scene" inter¬

relatively small, or
merger is proposed

matter how

t

time

*jaw bones at some critical
bound to arise before the

and

business

installations, and

the pyramids.

death occurs in
the owner must

a

all

Canals,

Panama

and

atomic energy

vests a tre¬
government.

course,

mendous power in

combined cost of the

ceeds the

Suez

of

WWII)

called

It also probably ex¬

$49 billion.

persecution.

the

Communism

for

Safe

military
during

Make

to

War

Sometimes
and
what
sometimes
looks to business like political
cution,

C.—You
can
just
about figure; that
whether the Democratic *. Con¬
gress does or does not this year
give the Administration sweep¬
ing powers to control business
will
depend 'upon; whether
Dwight D.
Eisenhower exer¬
cises or fails
to exercise his
D.

compares

aggregate

total,

World

WASHINGTON,

of

period

the

over

$51.5 billion.

name

SECURITIES

SO BROAD STREET

TEL:

•

SPECIALISTS

NEW YORK 4, N. Y.

LERNER & CO.
Investment

HANOVER 2-OOSO

Securities

TELETYPE NY 1-971

10 Post Office Square,

scare

Telephone
HUbbard 2-1990
nl till tin) lias 1

Boston 9, Mass.
Teletype
BS 69.