Full text of Commercial and Financial Chronicle : May 15, 1958, Vol. 187, No. 5742, Section 1

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bisihbs
ESTABLISHED 1839

In 2 Sections

—

^(iorvl

lUf. U. 8. Pat. Office

Volume

187

Number 5742

New York 7, N. Y.,

Thursday, May 15, 1958

Price 50

Cents

Copy

EDITORIAL

The Outlook for Gas
Our Latin American relations
be under review

said

are

Companies

now

result of certain incidents

Long-Term Bond Market

By TOM P. WALKER*

By JULIAN Bw BAIRD*
8

Chairman, Transcontinental Gas Pipe Line Corporation

Under Secretary of the Treasury

occurring during Vice-President Nixon's visit to
Latin

America.

various of

ing, that
with

our

Some

of late

cementing
for

saying,

our

Mr. Walker optimistically concludes the bloom is
not off the
industry which is said to intend to

doubtless

have been

years

are

have been

say¬

billion in next several years.
insolvable problems as: (1)

concerned

in order to

secure

versus practical limitations as
long-term government securities, former
banker who is now a Treasury aide, opines
that, contrary
to classical experience, the market should not rule out
possibility of long-term offerings even though credit ease

Discusses such seemingly

appropriate action required
money from investors while cost

new

is higher for bonds, debentures and preferred
stocks and to maintain common stockholder's
yield; (2)

will be drawn when all the facts

monetary policy prevails.

Mr. Baird expects most new
Treasury money borrowing will be done through commer¬
cial banks; frankly faces
up to the need for continuing
to promote
Savings Bond program; reviews what the

inexorable higher costs of construction and for
gas at the

examined

wellhead; and (3) regulatory muddle resulting from
Phillips and Memphis decisions, and imbroglio surround¬
ing the Harris Bill. Hopes regulatory rate impasse will

are in and
closely
only the future can tell. It is, of course,
nothing unusual lor us to be labeled ''Uncle
Shy lock" by peoples to whom we have been gen¬
erous far
beyond comparison. Historically though,

attitude

our

toward

Latin

America

has

be resolved

now.

been

late

quite different

will
to

with other times. There is much conflicting
testimony on the subject, and doubtless there are
many pitfalls awaiting him who would try to

needs

taken

the

and

necessary

facilities. '

some

special favor when

purpose

look to

afford

you

factors bear

its

success or

failure,

industry manufactures so
many rumors per square foot as ours. Perhaps
I can
lay some ghosts, or at least give you some new ones to
keep your clientele in a continual state of excitement.

Continued

Association

America

Meeting

held

Houston,

the

United

waste

are

naturally

con¬

It rep¬

resources, both
and material.
It means dis¬

and

misery for many

government is not standing
idly by. It has undertaken a positive
for encouraging employ¬

program
ment

renewed

goals.

broad features of that program, in

we'must

ever,

never

lose

just

sight

moment.

the

fact

Continued
*An

May

address

expansion

ing in mind short-term needs as well
I should like to summarize the

long-term

and

throughout American industry, keep¬

Julian B. Baird

of the

Texas.

The

page 32
Investn

Bankers

as ever.

to believe in

of our fellow Americans.

many regu¬

other

appointment

you permit me

strong

reason

future

Meanwhile,

human

you

latory, political, legal and economic
Tom p. Walker

economic

resents

naturally
Thus,

every

cerned about that downturn.

for

money

♦

attention. These days
active in business

your

who

States, provided, of course, that we
handle our fiscal and monetary af¬
fairs wisely.

of money '

of the others. Because

page

There

to parade
before you some of the
situations which make the gas trans¬
mission business different from most

lightly that since we have given of our
substance with great liberality,
foreign peoples
receiving such aid should feel eternally grateful
to us and warmly
friendly to boot. There is, how¬
ever, much more to good foreign relations than
gifts to the poor. Our contributions, as large as
they often have been, are not so impressive when
measured
against the output of the nations
on

economy are as

com¬

quan¬

sums

to help find it.

assume

Continued

large

the

another and

seem

provide

crying for

the situation. There are, however, a num¬
ber of basic factors in the situation which are all
us

take

ever-more

it has

and

gas,

everyone

assess

of
still

and

You have many and diverse interests

pares

many

persistent

pelling demand for
tities

Too

•

.•

At the present many areas of the
economy are expe¬
riencing a downturn. But the factors making for a longterm growth trend in the

regularly.

Throughout the nation there

one.

often overlooked.

•

investment banking industry means a
great deal
ours
which comes to the money market

We do not profess to know how our
standing
with the various peoples of the world now com¬

too

to bolster the
economy.

The

however, the story has

years,

has done and proposes to do in this
recession; and questions advisability of income tax cut
to fight the recession.

too

picaresque, and doubtless that fact is
part responsible for any animosity felt toward

Administration

■

all

often been
in

soon

analyzing theoretical

to when to sell

of money

taking Latin

What official conclusions

granted.

still

spend $1.9

relations with European and

Asiatic countries that
America

are

friends to the south of

Mr.

Baird

before

National Association of Mutual

the

38th

Annual

How¬

that

the

page

Conference

Savings Banks, Boston, Mass.,

1958.

TEXAS GROUP OF IBA CONVENTION PICTURES: Candid
photos taken during course of
the 23rd Annual Convention of Texas
Group of Investment Bankers Association of America

dealers

Houston, Texas,

appear

in Section Two of this issue.

State, Municipal

U. S.

Municipal

:Securities
telephone:

UNDERWRITERS

State and
.

and

Government,

STATE

and
-

«no

DISTRIBUTORS

Public

COPIES OF OUR

IIAnover 2-3700

BONDS

INVISTM ENT

CHEMICAL

MUNICIPAL

Bonds and Notes '

FIELD REPORT

SICURITIBS

CORN EXCHANGE

BANK

the first national city bank

Burnham

and

Company

of new york

ST.,N.Y

15 tROAD STRICT, NEW YORK 5. N.Y.
CASUS! COSUSNHAM

Underwriter
.

•

014-1400

TELETYPE NY I-Z2M

Distributor

•

Bond Dept.

Net
lo

Dealer

All ¥ voiliivtit

Harris* Upham & CNew

York

Stock

Exchange

Markets

Dealers,

Banks

Members

Maintained

and

for

Brokers

CANADIAN
BONDS & STOCKS

Commission Orders Executed On All

New York Stock

Exchange

American Stock

Exchange

BANK

35 offices from coast to coast

CANADIAN

1832

Chase Manhattan

120 BROADWAY, NEW YORK 5

SECURITIES

T.L.WATSON &CO.
ESTABLISHED

Active

THE
Memberg

Teletype: NY 1-708

California

Municipals

Canadian Exchanges

CANADIAN

Municipal Bond

FIRST

'ft *'

£>QtUhW€4t COMPANY

25 BROAD

STREET

NEW YORK 4, N. Y.

DIRECT

WIRES TO

MONTREAL AND TORONTO

Goodbody

Co.

MEMBERS NEW YORK STOCK EXCHANGE

DALLAS

BRIDGEPORT

•

PERTH AMBOY

•••

"WAY
NEW YORK

1 NORTH « A

«AllE ST.

CHICAGO.

•

Department

DEPARTMENT

Teletype NY 1-2270
^

BOND DEPARTMENT

REQUEST

MfMKM NEW TOKK ANO AMERICAN STOCK CXCHANCEJ

30 BROAD

LATEST

ARE NOW AVAILABLE

BOND DEPARTMENT

Housing Agency

Poxraox Securities
iBank of Atmuiat

Grporatioti
40 Exchange Pl«c., New York

S.N.Y.

te0MaY5T«n

Teletype NY 1-701-3

WHltefcnH 44101

j|| y^sAN FRANCISCO 20, CAUFORWa I

The Commercial and Financial Chronicle
2

Thursday. May 15, 1958

(2170)

The Security

Brokers. Dealers only

For Banks,

Over

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

experience

years

(The articles contained in this fornm are not

Over-the-Counter

•

Large Trading Department

STUART

geared for service
•

BERINGER

"Finland

Try "HANSEATIC"
•'

•

New York Hanseatic

Corporation
Established.

1920

Member

Associate

Stock Exchange

American

120 Broadway,
WOrth 4-2300
BOSTON

New York 5
Teletype NY 1-40
CHICAGO

•

PHILADELPHIA

SAN FRANCISCO

•

Cities

Wires to Principal

lightfixtures

1947,

Members

York

New

Exchange

Stock

American
120

Exchange

Stock

BROADWAY, NEW YORK 6
TEL. REctor

2-7815

York

McDowell, Dimond &
Co., Providence, R. I. (Page 2)

Industries

Basset! Furniture

Life Insurance Co. of Va.

Commonwealth Natural Gas

Members New York Stock Exchange -

the

high

all-time

LYNCHBURG, VA.
TWX LY 77

—5-2527—

LD 39
Private

Wire

New

York City

Opportunities Unlimited
IN JAPAN
Write

for

our

Monthly Stock

Digest, and our other reports
that give you a pretty clear
picture of the Japanese
economy as a

whole.

succeeding year witnessed a fur¬
ther'
healthy
gain,
the
figure
having increased to $1,012,000 only
three
years
later
in
1951,
to
$2,134,000 in 1954 and to $5,348,000 in 1957.

increase
was

the past
23% gain in 1952.

Telephone: BOwling Green 9-0187
This is not
orders

offer or solicitation lor

for any

particular securities

decade

the

about

$20

$30

million

1953 and about $50 million in 1956.

further gain

estimated

the outlook favor¬

1958.

Litecraft
of

of roughly 10% is
been realized

have

1957, with

line

fiscal

current

g c

churches

lighting

wide

fixtures

h o o 1 s, hotels, banks,
and other installations.

Its

catalog lists over 500 models
styles, which are distributed
through more than 700 selected
or

LAMBORN & CO., Inc.
99

WALL

STREET

NEW YORK 5, N. Y.

SUGAR
—

the national

distributing organiza¬
Supply

General Electric

In addition to its

Liquid

Exports—Imports—Futures

Co. and

standard items,

maintains a small
manufacturing department

company

custom

which produces
fixtures

upon

specially-designed
individual archi¬

tectural orders, usually in connec¬
tion
DIgby 4-2727

per

approxi¬

Here

STOCKS
information

For current

Call

write

„

Yamaichi

Securities Company
of

New

York,

Inc.

Sef.uriiies Co., Ltd.
Tokyo, Japan

Brokers

111

Bankers

Investment

•

Broadway,N.Y.6C0rtlandt 7-5680

Burns Bros. & Denton
INC.
37 Wall Street,
-

New York 5, N, Y.
.

•

*■ 1

Underwriters—Distributors %
it-

Dealers
:

Investment Securities

McDowell

Irving

J., smaller produc¬

at Passaic, N.

facilities

are

Brooklyn,

operated in
and Hoboken,

price of 47 and paying a $3

since

detrex
-

divi¬

unfavorable

combination

chemical:
industries

dend.

there

were

standing,
share,

127,500 warrants out¬

exercisable

of which 90,000 were

per

init¬

ially-attached to the 6 % % deben- •
turcs at the rate of 150 shares.tper
$1,000 debenture.
quoted

Over-the-Counter

' C

BOUGHT—SOLD

thq

with

volume

contracts

for

♦

MORELAND & CO.
Members
Midwest
Detroit

Stock

Exchange

Stock .Exchange

1051 Penobscot Building
DETROIT 26, MICH.
WOodward 2-3855
Branch

DE 75

City, Mich.

Office—Bay

and could very; well prove
the bottom for a long time
come.
'
"
:

years

to
to

Since

6-6% ; in- the
Market,

price is by far the lowest figure
at which it has sold in1-the last 10

the

out

the

so-called "bad news"

has

decree

consent
the

way,.

been

the shares have

stock is selling at rough¬ been rising steadily because it is
ly 6 times estimated 1958 earn¬ now dawning on Wall Street that
ings of $1 per share to yield about the company has at least 12 years
6.4%, * on the recently established' in which to sell or spinoff a new
10c quarterly dividend rate. It is company. This new company will

common

•SAVING*

conviction that such a low have assets sufficient to import
multiplier for
a
well-managed nine million stems of bananas into
aggressive
company
in
a
fast- the United States and bring the

number

the
Refined

earnings

growing industry can be justified, United Fruit percentage of the
only in part by the substantial banana business down to the 65%

tions

JAPANESE

Canadian and Domestic

con-

Among its principal customers are

Graybar JElectric
Westinghouse Supply Co.

—

with, the

electrical suppliers, fixture wholes a 1 e r s
and
other distributors.

Corp.,

Raw

year,1 man¬

mately $1 on the shares now out¬ stock that has
standing.
.
v.; paid dividends, continuously
In addition to its principal plant 1899 and is now available

Recently

manufactures

indoor

designed primarily for office and
commercial building, stores, hos¬

pitals,

offices

branch

our

sales to increase to

tion

during this

about

from

the

creased
1950

wires

Yamaichi

benefit

Direct

Affiliate

should continue to N. J. Furthermore, the company -- factors consisting of the Govern¬
in
process
of establishing a ment anti-trust suit, floods, wind¬
future,
from
a is
steadily increasing demand for West Coast assembly plant in or¬ storms, strikes, expropriation by
der to better serve its customers Guatemala of United Fruit acre¬
more lighting, better lighting and
more
decorative
lighting.
The in that growing market area.
age, a $4,500,000 judgment against
The company's capitalization on the United Fruit in the Interna¬
strength of this trend is well
demonstrated by the sales growth Dec. 31, 1957 consisted of $1,068,- tional
Railways case, have
all
of the three largest independent 000
of
long-term
indebtedness served to bring the stock down
publicly owned companies in the which included $600,000 of 6V2% from a top of 73% in 1951 to a
general
lighting
fixture
field, sinking fund debentures due 1977 low of 33% in 1957; when the
whose aggregate sales (excluding
(with warrants) and 331,250 sharps stock market had its worst sink¬
unrelated lines in one case) in¬ of common stock.
In addition, ing spell. Incidentally, this latter

period,

able for

61 Broadway, New York 6, N. Y.

The minimum annual

during

benefited

La. - Birmingham, Ala.
Mobile, Ala.

agement nevertheless expects-final- yiction in
approximately mind that the
$6,000,000. On this volume profits w a r 's t ":h a s
should
be
sufficient to realize bee n •• s e e n.

volume

sales

New Orleans,

Starting with a $122,in 1948, each

profits.

NY 1-1557

HAnover 2-0700

Mcdowell

Numura Securities Co., Ltd.

few years.

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

ten

American Stock Exchange'

Members

fixtures until

Litecraft

STRADER and COMPANY, Inc.

Steiner, Rouse & Co.

Lighting." K£

Final results for the fiscal year
Partner, McDowell, Dimond & Co.
in the
Providence, R. I.
whole. ended Sept. 30, 1957, were sales
of $5,348,000 and a net profit af¬
Commencing with an original
United Fruit Co.
investment of $25,000 in 1947, the ter taxes of $301,000 equal to $1.15
In these days of uncertain mar¬
company's operations have been on the 261,250 shares outstanding
consistently
profitable
in
each at the year-end, as adjusted to re¬ ket movements it is probably just
flect the subsequent recapitaliza¬ as. well and even a little safer to
subsequent year, with the result
that stockholders' equity had tion. For the first quarter of the go'-..fishing
in muddied waters.
There is an /
grown through retained earnings new fiscal year, sales totaled $1,old % saying
alone to $1,000,000 by Sept. 30, 557,000, up 26% for the compara¬
1957.
Over this period the com¬ ble period in the previous year, that every
pany's return on net worth in no and net profits equalled $83,000, calamity can
also .be an. op¬
year fell below 22%. Although it equal to 25 cents per share on the
shares now outstanding. portunity and
is obviously unreasonable to ex¬ 331,250
No profit comparison is available
picking
pect an uninterrupted continua¬
tion of such dynamic performance, for the first quarter of the previ¬ United Fruit
ous fiscal year. Although the same
an
above average rate of return
Company as
rate of increase in sales will prob- - the
does appear likely.
Security I
Growth in
sales has been as ably not continue for the balance ( Like Best is

000

American Furniture

Bought—Sold—Quoted

McDowell,

Partner,

under the name

consistent and impressive as that

Trading Interest In

(Page 2)

City.

United Fruit Co.—J. I.

profits.

lighting fixture field

MCpONNELL&fO.

establish

Beringer

is among the top

and

Since 1917

New

over

descent

RIGHTS & SCRIP

dent, P. W. Brooks & Co., Inc.,

nor

discussed.)

candescent lighting

mercial incan¬

Specialists in

Louisiana Securities

—

Vice-Presi¬

Stuart M. Beringer,

ity to earn an above-average rate
early in 1956 when it first intro¬ of return on the funds, at its dis¬
Litecraft Industries Limited has
duced a line of fluorescent light¬
posal should be most reassuring
enjoyed an exceptional record of
ing fixtures. During its 1956 fiscal on this point.
growth during its relatively short
year
sales
amounted
to
only
In conclusion, with khe current
corporate his¬
$385,000, but in the following year
general business outlook uncer¬
tory, so that it
the volume expanded to $1,500,000
is today
tain, there is obvious merit in
a
representing approximately 30%
directing one's attention first to
leading factor
of the company's total business.
an industry for which
in the rapidly
the nearIndicative of management ca¬
term and long-term prospects are
growing light¬
pabilities under difficult operating for continued growth and, sec¬
ing fixture inconditions was its performance in
d u s t r y. The
ond, to a well-established com¬
1957, when despite the problems
pany in that industry whose own
company
b einvolved in consolidating several
record has been among the very
iieves
that
it
scattered
manufacturing
opera-.
best,
The selection of Litecraft
is the second
tions in its new 175,000 square
Industries common stock is easily
or
third
foot
leased facilities
in Passaic,
justified by this approach and its
largest domesN. J., during the early part of the
t i c manufac¬
purchase is, accordingly, recom¬
year,
nevertheless managed
to mended for sound appreciation
turer of com¬
record a 26% sales increase and
Stuart

Alabama &

Litecraft manufactured only in¬

December

Founded

Ready to serve you when you

House

Limited

Industries

Litecraft"

well-known prestige line of in¬

Finland and sold

and

Their Selections

candescent fixtures imported from

Litecraft Industries Limited

System

Private

Vice-President, P. W, Brooks & Co.,
Inc., N.ew York City

Nationwide Private Wire

intended to be,

they to be regarded, as an offer to sell the securities

are

Week's

This

Forum Participants

A continuous forum in which, each

Try "HANSEATIC"
•

I Like Best

and

that,

of
as

warrants

outstanding

the warrants are ex¬

ercised and the funds so realized
are
profitably put | to work, the
company's earnings and the mar¬
ketability of its shares will be
substantially
improved
to
the

great

benefit

holders.

present

stock¬

It should be remembered

that dilution only occurs when the

profits generated by the new cap¬
ital are at a rate less than that

catalog items. Litecraft is also the realized on the old capital, and
sole distributor in this eountry of management's demonstrated- abil-'

figure required under the decree.
With so much leeway available
to

the

company

is not antici¬

pated that there will be any hard¬
ship
involved,
and,
moreover,
spinoffs or a reasonable facsimile
thereof
proven

have

far

parent company.

flung

empire of the
consists of
land in Guate-

United Fruit Company

540,000

acres

Continued

Quotation Services
for 44 Years

invariably

profitable to the security

holders of the

The

almost

Over-the-Counter

page

National Quotation Bureau
Established 1913

46 Front Street
CHICAGO

NewYork4,N.Y.
BAN FRANCISCO

Volume

187

Number 5742

The Commercial and Financial Chronicle

(2171)

index ;>

Proposed Legislation
Regarding Acceleration Policies
I

Chairman, Securities and Exchange Commission
Washington, D. C.

—Edward N. Gadsby

bankers

ment

disservice"

;

proposed change

them

since

the

acceleration is the issuance of

that

alternative
a

to 'the

discretionary

present

•Exchange

Commission

formal and public stop-order

Temporary Tax Reduction

quently

voluminous.

Some

in this particular Congress

Commission*

:has
'to

Con¬

most kdndesivable
which
Edward N. Gadsby

have

tion

LITHIUM CORP.

Growth—Roy L. Reierson__

Thrift Institutions and
Monetary Management
—August Ihlefeld

Current Economic
Problems—Sen. J. William

PACIFIC URANIUM

Cover

Business Recession and Economic

UNITED WESTERN

MINERALS

Fulbright_____

The Not Too Well Known
Nature and
Policy—A. L.

Bar

were

;

Mills, Jr.

Savings Banking and Commercial
Banking
v—Henry H. Pierce, Jr

...

Members Salt Lake

would pay .little atten¬
it not ostensibly spon¬

Exchange PI., Jersey City

DIghy 4-4970

Rukeyser Warns Against Unsound Recession
Remedies

by almost reputable organization. The Section of Corporation,
serious problems which
Banking and Business Law of the

New York Federal Reserve Bank Detects
Lessening in Down¬

cer-

Teletype: SU 155

Eugene W. Castle Blasts
"Superspenders"

Republicans Today!; (Boxed)___

Exchange PI., Salt Lake City

DAvis 8-8786

ward Rate of Business Decline

cropped up from time to
Americari*Bar Association recently
time, while not seriously affecting announcecUthat. it had
persuaded
the substantive .conduct of your
the House iof Delegates of the
business. This legislative program
a.B.A. to adbpt a recommendation
.lis still pending before the Senate
in support^of legislation which1
..Committee on Banking and Curwould, in essence, amend that part
rency and before the House Com- 0f
the

HEnderson 4-8504

Teletype: JCYr 1160

;

Report of Texas Group of I. B. A. Committee

City Stock Exch.

Spokane Stock Exchange

proposed bill to

-//,•'

J.F.Reilly&Co.,Inc.

.one

M. S.

•

Scope of Monetary

Mutual

concerned

♦

■

sored

^expedite its work and to solve
dain rather

EQUITY OIL

situation

'|for somemodjifications in
j the Acts which
jit administers
order

WHjtehall 4-6551

to End This Recession

—Hon. Julian B. Baird

particular
iiwolvirigv not a pending
bill, but what I consider to be a

plete program

■fin

I / am

.especially
calling attention' to

com-'

STREET, NEW YORK

Telephone:

Treasury Financing and the Long-Term
Bond Market

" P

Singles Out /American
proposal rj \

and

gress

Policy Proposals 1

WALL

FEDERAL URANIUM

present

items

submitted

the

proposed ,legislation of mutual in¬

comprehenlaws

Obsolete Securities
Dept.

Addresses Delivered
During Annual Conference of
National Association of Mutual
Savings Banks

terest but I cannot now take space
to discuss:them.

sive review of
ats

the

and

>number ;;bf rother

Inflation Hedges
Today—Roger W. Babson

ha| ojpr active support.: There

are

itself has made
a

.Commission

bill

quite im-fi

Administration's Viewpoint

our

portant. The

obsoletes]

lo <'

;

—T. O. Yntema

reporting of insider trading and
the filing of periodic reports with
the Commission. This sort of legislation has long been favored by

fre-

The

Grainger__

pliance with the proxy rules, the

powers

Pending legislation involving
:fhe interests of the Securities and

denial

to Growth:
Sinclair Weeks

The Extremities of
Current Agricultural
—John D. Black

rather than in circum¬
scribing them into rigid, mechanical format preventing the
*
matching of a remedy to the facts.
-''t.k

]

"distinct

Fiction—Isaac

Geared

—Hon.

proceedings with all its attendant publicity. ^Expresses convic¬
tion that securities industry's best interests lie in
preserving:

SEC's

would be

Policies

•

and

mhmwJ

____

—in

Banking Facts

Cobleigh__

AND COM* ANY

HAVE CASH,
WILL DABBLE

Electra Flying Lockheed—Ira
U.

LlCHTtlMlfl

mmmmm

-__________Cover

Proposed Legislation Regarding
Acceleration Policies

registration statement within the initial 20-day period following
the filing of the statement or
any amendment.
Warns investv

B. S.,
Page

The Outlook for Gas
Transmission Companies
—Tom P. Walker____

Mr. Gadsby is especially concerned about American Bar Assn's
support of legislation which would seriously affect SEC's
discretionary authority to "accelerate" the effectiveness of a

'"jk.

r ■"

Articles and News

By EDWARD N. GADSBY*

.mittee

and Foreign
of whose mem-

many

„

Jobs for June

.Boron Hailed

bers have been busily engaged in ment
starts anew the 20-day waitand certainly, more mewsjng ,>eriod !htdhe end-of which the
I worthy activities in recent
months.registration statement becomes
/The Commission has also reviewed

;

its

activities

under

the

Chandler

____

automatieajly"effestive;;
bilhwodld dnsert,

The pro-

See It

Common

(Editorial)

Preferred

Cover*

Bank and Insurance Stocks

Eastern Industries

Regular Features

other

Pacific Uranium

High Energy Fuel

pr0vides\that.the filing of ah
a registration state-

amendment to

t
,

Bolsa Chica Oil

College Graduates Down But Outlook
IS Still

Promising

Securities Act of 1933 which

Interstate

Commerce,

Texas Int'l

Sulphur

excep-

cAct, i.e., Chapter X of the Bank- tjon
Business Man's Bookshelf
from''this-'-'provision wheh the
: ruptcy Act,. and legislation de- *amendment
TelatesSnly ;to> ;!the
Coming Events in the Investment Field
signed "to facilitate our participa-,
offering price,0^e&rppuh£ of corri- \r
\ .V
:
'
"
\
/
tion-in these matters was filed
missions,
.amountof tbeiprODealer^Broker Investment
Recommendations___
quite ;recently.::This legislation,
cee(js> the^ftnierest^
or.
also is pending in Committee.
'
conversion rates, the call price, or "j' Einzig: "Inflation Through Savings"
In addition to these legislative <*n identification of .underwriters
From Washington Ahead of tlie
News—Carlisle Bargeron
activities which were initiated by or similar matters.
Indications of Current Business
the Commission, numerous
Activity.
bills
The Securities and Exchange

____

•

■

■.

8 ;

Singer, Bean
& Mackie, imc

HA 2-9000 40

Exchange PI., N. Y.
Teletype NY 1-1825 & 1-4844

•

have been introduced in Congress
have been prepared for intro-

or
(

duction

which

of interest

are

J the Commission and, I
believe, to
the investment industry.
One of
.

.jthe most important bills
nature
•

doubtless

the

/
•

Agency
the

to the

of the

work

detriment

dealers and counsel with whom

have daily contact in the
our duties.

some

of the larger cor-

traded
Market

the

are

the

requireby the Securities Exchange Act of 1934 upon
corporations whose securities are
.

listed

on a national exchange. Such
requirements would include com-

Texas

Group,

Our
4;

by Mr. Gadsby before the
Investment Bankers Asso-

order to

Reporter

Our Reporter's Report

understand the/ef-

Securities

Oration

The

When the Act

passed in 1933, its legislative
on

page

31
33

Salesman's
.i

and

Western Gold and
Uranium

Corner.:

Hydrocarbon Chemicab

You—By Wallace Streete

Security I Like Best

Washington

Vitro

The State of Trade and Industry

Sabre-Pinon

..Prospective Security Offerings

The Market.

Continued

*-i

Securities Now in Registration

helpful to recall to you some of
the background history of admin-

24,1 lass!America' Houston' Texas' April

Railroad Securities
,.rk

Dallas

Governments.

Public Utility Securities

fect 0f the proposal and the reason
for our opposition, it might be

W3S

Chicago

Traces Background

•

to '

Los Angeles

___

Observations—A. Wilfred May_______.

Over-the-Counter

certain

"^"address

Direct W ires

Philadelphia

________

News About Banks and Bankers.

the

course

Agency and against
of the corporations,

interests

Mutual Funds

V/NSTA Notes

effect within the

extend to

ments now imposed

wou^d interfere with the orderly

processes now in

Fulbright Bill. This proposal would
porations whose securities

this

so-called

Commission is unalterably opposed
to this proposal on the ground that
it

Corp,

You

Western Oil Fields

Published

For many years we

have

Reg.

;

Spencer Trask & Co.
2-4300

Boston

Nashville

TELETYPE
Chicago

Schenectady
*

nffi,«
Office

COMPANY,

j
'

NY-1-5

and

Chicago

city

2-9570

news,

Offices:

1942>

III.

135

9576

etc.).

(Telephone

STate

afc

the

P°sfc

matter Febru-

offlce

New

Subscriptions in United States, U.
Possessions, Territories and Members
pan-American
Dominion

Union,

$65.00

Canada,
Other Countries, $72.00

1958

per

$68.00
per

year,

per

S.
of

Salle

Prospectus

request

•

St.

2-0613).

Other

m V. FRANKEL & CO.
INCORPORATED

year.

•

South

second-class

Subscription Rates

Eivery Thursday (general news and advertising fssue) and every Monday (complete statistical issue — raar^* -iw*«.Mon
records, corporation news, bank clearings.
state

25'

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

Place, New York 7, N. Y.

REctor

Syntex Corporation*

Company
Reentered

Publishers

HERBERT D. SEIBERT, Editor & Publisher

Other
.

DANA

Thursday, May 15,

Glens Falls

Worcester

Park

ST., NEW YORK 4, N. Y.

HAnover

Albany

7poW
TT. S. Patent
n

WILLIAM DANA SEIBERT, President

Members New York Stock Exchange

TELEPHONE

FINANCIAL CHRONICLE

WILLIAM

25 BROAD

Twice Weekly

The COMMERCIAL and

PREFERRED STOCKS

specialized in

Publications

BROADWAY, NEW YORK 6
WHitehall

-Sank and Quotation Record
$40.00

per

year.

Note—On
the

rate

foreign
must

(Foreign

account

subscriptions
made

New

Postage

the

exchange,
and

—

Monthly
extra.!

fluctuations In

remittances

for

sponsored

the

monetary

American

that

become much

tech-

finance'

quences, and calls to the savings industry's attention the forth¬
coming national monetary study and need to forestall hasty,
ill-considered legislation based as insufficient evidence.

the

regulatory

successor

■

deposits in

comPeting financial institutions." commercial banks, the chief com■lt is clear from these quotations ponent of our money
supply, and

equivalent

supplant 'monetary conFinancial control, as the

Periodically,

Their

more than an intel- That is the very high velocity of
hiques
the
institutional Actual exercise in economic the- turnover of money.development
of
intermediaries 01T •?1S
used as the doctrii
Each dollar of demand deposits
can
be overcome when it: is
apnu
toundation for a drive to in commercial: banks; is being
preciated that 'financial control' cban^e the basic structure of fi- turned over on the v average 55

;

r e

observe." -He has argued also for
No amount
of
repetition, can
a different "distribution of func- conceal, the one decisive differtions among the various types of ence between demand

not been evolved

of the Federal Reserve Act
is still
to come.
-

controlling financial
;
assets, is revealed by New York banker in rebutting arguments
* that thrift institutions must be made more responsive to mone¬
tary control. Mr. Ihlefeld denies existing credit policies could
:^ not affect thrift institutions during 1955-6 by pointing out that
at that time the Fed did not act
determinately, Congress did
not allow FHA-VA interest rates to rise
freely and there was a
lag then, due to ample liquid assets available. Counters other
assertions advanced by advocates, warns of harmful conse-

systematic

any

ously tendered proposals to impose cash reserves against savings accounts and to replace Federal Reserve Monetary
.

stitutions, similar in effect, though
But they offer no-proof for this
not necessarily in precise form, revolutionary -contention.
They
as sub- to the reserve requirements which merely affirm and
repeat it a9 a
Regulatory banks have long been obliged to self-evident truth,
as com-

Major threat confronting thrift institutions, contained in seri-

urged the adoption of "Some form, thesis would be
well on: the way
cash reserve require- towards
substantiating their argurnents for non bank financial in- ment.
of variable

•

...

generally in this country
petitors with banks, and

with them

credit; both

"These nonmonetary intermedi-

-President, Savings Banks Trust Company
:
New York City

'create

aries have not been acknowledged

Monetary Management
'

both

transmit loanable funds.

SAVINGS BANKS

5 Thrift Corners in New York

HSSOCia-

HTOOCia

create savings and loan

<"26 Cortlandt St.

<2)55 Joha St. <3)60 Spring St. <4>41 Rockefeller Plaza <5>743 Amsterdam Are.

The Commercial and Financial Chronicle
10
..

Thursday. May 15, 195&

(2178)

in the to do* so.ywould involve, a more
technicals application * tham time l
would permit today.^-,"^rf'Sest is a negligible factor "rin< the. funds.
You will'; note that the
i would like to make some-gen-'
price structure and no considerate, recent prime rates set forth in the eral 'observations regarding" resupply, which plays a -j; The'.users

the money

Banking Facts and Fiction
1

GRAINGER*

By ISAAC B.

Bank

President, Chemical Corn Exchange
New York City

credit

big part in producing inflationary^ ,United /States
have ;; been very
trends. In the second place,.inter- fortunate in the cost of borrowed

tion has been given to it in wagg

schedule

following

consider-

are

negotiations, the results of which .ably higher than the rate in
have
often
been reflected
in in the United States: .
.

leading New York banker expresses concern regarding pub¬
lics misconceptions regarding banking and, particularly, tbe
extent of banker complacency in making known the important

higher prices. Even if it were true;Canada^ ^
that interest does have an effect
'■".Germany
upon

stantially
living.

and

busi¬

facet

into

ness come

being
e x

un-

p e c

far

quite

base

bank may increase

days' time.
However, 1

decided

have

be ere-

done./ Some individual
it^> reserve by
borrowing from or selling securities to other banking institutions,
but this has no effect upon the
system as a whole. On the other
hand, the Central Bank does have
the power at will to expand or

not

in a few

even

Central

the

from

New reserves may

selling securities to the
Central Bank, but unless the Federal is in a buying mood, this may
ated

that one could
be

borrowing

Bank.

tedly

from

loans;

demands

ments in every

explore
some
of the
fictions
and

Isaac

fallacies about

B.Grainger r

contract

banking which
unfortunately never seem to get
out ol date. It is most presump-

reserves

the

Kingdom-

6y2

goods

system,

our

—

France

Let

Rights

take two other

scheme of-affairs there are areas

fictions

"''commercf^for
'ness

nut

services

^e rate structure, never- effect, rates represent the gauge
theless, it is time that all of us which measures the condition of
should give serious thought to re- ^le money market; They do not
latmg lending rates to the expense cause the condition. At least
of running our machinery. In re- theoretically, higher rates, which
cent years, it has been necessary resu]f from bidding up the price
to take a more practicable »P- of funds, tend to discourage borproach on service charges againsf/rowing, thereby putting less strain
customers accounts, and new fees.yon aVailability of funds, and lower
have been adopted for various rates tend to attract borrowers.
services which, during the period*, jj' they are a+tracted (and this is
of much higher money rates, were questionable), availability beprovided without charge. We still COmes less. I am much more eerprovide many services without tain 0f the effectiveness of this
adequate compensation. Therefore, , theory in the longer market than
because of'the continuing increase jn the short market because, in
in operating expenses, it behooves borrowing for plant expansion, this
us to make further refinement of built-in cost is much more of a
our charges and expand the area factor to be reckoned with than in

based upon the new concept of
which the Central Bank
itself has adopted. I applaud the
Board's action in sponsoring legislation giving relief to member
banks from the long-standing
burdens which they have suffered;,
and I heartily subscribe to the
provisions which will'-;enable all
of the. banks in the country to
tho Kuntc ir> tho'^nnntrr'- to

reserves

I am

you

which

f0n0winp

1921-1930

institutions

banking

has

for

definition of which is
deposits less interbank
deposits plus currency outside of
"demand

the fact that the banking system."
We have
challenged by some conceded that the granting of loans
place upon us
the increases the money supply, but

been

olame

all

troubles,

economic

such

increase cannot be

used

for

It is

strange, however, tnat tnose

further

very

people pay us a compliment

the supply which can be used for
further credit extension is cur-

toy placing most 01 tnese troubles
on

our

c.oorstep

Fictions

lor solution.

and

rency

loans.

The

- :

encouraging

./
that

note

ttlfl MorQ,

nizes that the proposed legislation
a+P!l?ai]SJe 1? 1
If
—

CTClTlnihO'

part

2.54

1951-1957—:

small

AI1A,

lh^uld L^e

3.77 ;>

•

,,.

same

flLl^ty

allowed.

time, the nations

finds, it more effective and less
expensive

maintaining

healthy economy to pay more in

premise>
erated

which reserves opthe ^banking
systeaii'

upon

pr|or to

^the creation of the Fed-

debt service and less on inflation- eraj ReServe Banks, is

In 1956 the average rate was.

4.20%

breeding expenditures with enor- reievant.

and in 1957 it was 4.62%.

It can be readily seen, therefore, mous waste. v
that even with the 1957 increases,I do not mean

convey

no longer

R e s er v e s originally

, were related'to liquidity. There
the is, of course/ some? element'of

and before the 1958 reductions we .idea that high interest rates will
were still well under that period
eliminate waste. It will probably

when the laws of supply and de-

previously allowed
freedom of operation.

mand were

liquidity still in effect. However,
whether we like it or not, basibe with us always, and one of the cally reserve requirements are part
wastes which the taxpayers must of the mechanism of credit conabsorb. ;.is the Government's un- trol. The Central Bank authorities

in the

not

hands of comAn
important fact not to be economic lending of. money on still consider flexibility in these
When such out- overlooked is that when interest speqiql. .projects: considerably un- controls important." However, it
4LU
T
.'r.
11: 11
*

njercial banks.

Fallacies

only

for borrowers.

jL1

3.29

1941-1950

have accepted

proud ot

despite

would

who

We should be

record

our

•i-j.■

•1

' '

Favors 10% Reserves

ABA s ideas of 10% for demand
deposits and 2% for,time deposits
biggest b or ro w e r and biggest are justifiable limits, especially
spender—the Federal Government when it is considered that --the
_

5.41%

1931-1940—

functioned and met their responabilities.

even

At;.the

i=t:^=n.fundsl and

have, carried the
rates-

average

s
From—

high level
.
Money Supply
to which the economy has risen
j would like to return to the
is due largely to the manner in question
of money supply, the

does not touch, and the

which

in the* legislative

bodies.:--

CnkW

banking

which

life

commercial

acceptance

u!I is impotent we would become in the
There
industrial or field of lending..

our

ever-in-

with a slight lag, in the entire
There are no statistics available
i5SfuS;
reserves selectively to individual
banking system. The second has to me at the moment for commer- Sldered hlgh> - the economy has
,
... £ .,
....
simultaneous application through- ial lo
j
banks prior to 1920 been a ProsPerous one- Margins
ittcj f «> f„ . . . f th
t
out
The third, whiciv may he
be taken from « profit and income generally
forth
used under new Regulation A, prime commercial paper rates ?av®.been better..under the latt
,
the American Bankers Assowhile seemingly passive in nature, * hi h between 1890 and 1920 av- conditions—for business, for purit own
sals with
would be like applying the emer- eraged 5 66% wjth one year's high chasers of government bonds, for
fa.
heartiiv aei^e The whole
gency
brake. Should all three
^
o£
system
>
pnvileges be resorted to at the cjal ioans jn the principal cities.#!?® insurance policies^, for bene,, statutory top limit with only a

important.

segment of

require

Malign

will

creasing use of credit extensions,
The allowance for vault cash is
indeed a constructive step, and
this and the other proposals
should have prompt and favorable

•

":a/„
even

the

serving

requirements of their cus¬
tomers • in
a "v dynamic
economy

interest rates are high now. • They terest rates. The record shows ments t0 th? whol+e p^?gram-?t
at the rediscount window.
-/./are high only in contrast to those' that in periods of lower rates (ex-;"XTttXhave "mlde
It is hardly necessary to tell you Pr®yailmg in the unrealistic and cept during the previously men-. ^011m
plnflrrmthis Dethat each of these powers is most
,'ndmoney market>,',S te tooratoTeatures^of
money market during tioned * artificial ai
fht
effective. The first is felt imme- the 1940s.
v,v the economy has been;at a low the nrtroosals T am orrodsed to the
diately in money centers and then,
Interest Rate Costs
ebb, and in those periods when
£ p
ririvile^e of annlvine

will agree with me that
'our case has not been presented
with sufficient frequency although
much headway has been made in
the past few years in giving the
public, and even those who would
us, a better understanding
of the necessary functions which
banks and bankers perform. The
business of banking has been one
.of the most constructive forces in
woiId economy as fai pack as one
sure

useful

credit

requirements, and restraint

serve

this great busi-

all in together.

are

that bankers
high rates

oermit

policies

which'-monetary

either non-effective or are nullified by some other agency of
jimit the supply of credit.
It is Government; but, despite this, the
axiomatic that borrowers virtually Central Bank has done well. Any
sej ^he rates by their demands,
disagreement I may express is
rates:

All of this means that if banks in which they are applied. How- borrowing for temporary invendo attempt to increase their re- ever, it seems somewhat incon- tory accumulation. My own feeltuous for me to discuss them with- serves for the purpose of allowing sistent for depositors and other,
aspreviously expressed, is
in a group so well versed in the expansion of their loan portfolios, users of banks' services, to bear that no matter how low the shortfacts of banking life.
However, the Central Bank can take steps their appropriate share of cost term rate, borrowers will not avail
we
cannot remind ourselves of promptly to nullify , such action, without asking the borrower.vto themselves of this opportunity unthem too often, and, in doing so, The instrumentalities available for assume some of the higher cost iesS there/is
foreseeable •" profit.
we
can
hope that they may be< this purpose are threefold: Open of serving him.
ahead."■
clarified in the minds of others.
market operations, changes in reThis leads to the fiction that;. One more comment about in-First

to be

maj^e the rates and that

last 15
credit--

commodity

regarding

distributing

and

Rate

........

...

Interest

are-:

their -efforts'; to

meet'? their, responsibilities; under
the Employment Act of 1946 and
their obligation to keep^ a bal¬
anced economy without run-away
inflation. - Unfortunately,
in the

•>
'

Costs

producing,

selling

years,

the

——

United

have skyrocketed over the

it merely satisfies
created by others,
It is equally true that the system
as
a
unit cannot create new reserves on its own initiative except
create

timely one.

appropriates or
develop¬

commended -for

Sweden W---?--

of fact, while the

costs

commercial banks control availability

very

New

51/4

'■

Bank

Banks/and*the

Reserve

Denmark

matter

Federal

Federal Reserve- Board

higher cost

'/•

Meeting
As

and cost of credit.

most

the

—l/—J- 5\k%
5%

Other

ply; (2) interest rates; (3) reserve requirements; (4) small
business loans; and (5) banking as a growth industry. Finds
it ironical that certain Central Bank earnings flow into the
Treasury, and denies

requirements which I hope

will not .be construed as criticisms
of the Central Bank. I think the

Norway L-l-lZ-'-j—r.

the price of manufactured or

processed products, it certainly is
an irrelevant factor in the price
of services which have added subr

performed by banks and bankers. Prior to urging
the banking fraternity to step up its advertising and public
relations efforts, Mr. Grainger exposes fictions, fallacies, and
misunderstandings held on such topics as: (1) money sup¬
functions

serve

effect

011 wo n oi r

■*

!.«

of the
banking stem
failure
to
distinguish
between mains the same, but the availabil- rates at& the present time.
The?'
r
cause and effect or to understand
ity of funds, for credit becomes Federal corporate income tax
sThere are fictions, fallacies and
ttie laws of supply and demand, greater by this return flow. Let rates started in 1909 with a rate misunderstandings: about, jreserve
Fictions most commonly expressed me give you a simple example of Gf
jc/c^ and Up until 1931,; the requirements. I imagine that our
Many

are

that commercial banks control

the money

•++r^n

supply, the a\ ai abi ity

the fallacy that increased money
highest
supply makes increased loans pos- income

Slb

l?erf credHiug of the ra£e prior to

pends upon t^o important factors but the further lending ability of
over
which we have very little the bank is reduced by the amount
first, the desne of the
eustomer to borrow; and second,
contiol,

portaXhXXngserV€
sucn Borrowings.
port
It

customer
any

should

would

obvious

place

are

loan at

rate unless he could foresee
Mr. Grainser bafora
Bankers Association, Mem-

address
the Tennessee

t>his, Tenn„ May 6, 19S8.

of cash reserves which must be
sterilized against the new deposit

SUP* CTtv! m
There
that

statutory fixed reserves were
established. Surely the withholding of 10%: of loanable funds is
indeed a potentl-brake upon the
rate levied upon corporate customers understand this phase extension of credit, particularly in
was
13J2%. The average* °ft our - business less than any an atmosphere where banks gen-

interest

advertised.

the same experience. The average
Even 10% is a generous reserve
depositor does not realize that in contrast to the tvDe oTreserves
5.41%, the average corporate there is a penalty to a
bank in reau;red Wallv in rnanv cnnnrate was 121/4%.
Therefore,, setting aside a portion of his de- tries
For fnstance
in England

when

tax

other. Discussions of . this ques- erally have to maintain substan-

jn the period 1921 to 1930

5.45%.

was

1920 was - 3%%'.v

the

average

lending

rate

tra"sactl0n-relating the net corporate borrowing cost posit as and this penalty is not ,there are no le l Reserves! oatbut
fictions
4.75%. Contrast that with the reserve a non-income producing
lonc-standine custom

some

rates

was

which

are

common one

often

is that

3V2% of well understood by our friends in
which the Government bears 52%, the halls of Congress.
There is
leaving a net cost of 1.68%. Ex- also the fiction that member
present

prime

rate

t^rn

f
h | ,
followed,
and his includes vault cash There

ar„ T,Q Wa] T^rvp rpnuir'emeilts
«on; Actolly, the opposite is true, empliflcation of this is more ap- banks do not contribute to the in France or Switzerland. In Northe first place, higher rates parent when the individual in- earning capacity of the Central
.
,
or.
discourage- further increases, in come ta'k rates are applied.1
Bank. This can be disproved, but
Continued oti pucje 01A

higher interest rates add to infla-

Volume

187

Number 5742

The Commercial and

Financial Chronicle

(2179)
ought to be the

Current Economic Problems
Senator

of the United

(D., Ark.)

of the

J. WILLIAM FULBRIGIIT*

By HON
Chairman

timing

instability in the private sector.
Beginning March 3, 1955, the Sen¬

States

Senate Banking and Currency

and

pace

of its actions to
counteract, rather
than to aggravate, the elements

ate

Committee

Banking and Currency Com¬

mittee held three weeks of
public

Senate

Banking-Currency Chairman

that what

warns

hearings

may

There had been

do to counteract the present

recession "can be largely nulli¬
fied'by neglecting to extend the [reciprocal] trade program

drastically curtailing the mutual assistance program/' in
making clear that our long-term security depends upon both
domestic economy and relations with other nations.

our
■*

inflation

deadly

inflationary

can

be counted

Terms

market.:'

;

the least flexible tool for

our long-term security that
;<is in the most danger today. I beilieve we are in less danger today

:•

from military aggression than from

;

economic

would

.rsiansF
e c °

imany/asr
peets iridhe-

'iinte rnational;
s field;
but :our
/: ability to comj pete
with the.
in

that

field

activity will
i

our

own

v-nr

Sen. J. W.

<«-m.

Fulbright.

eco-

adapt our
circumstances

and
history.

;

9un1s\

our

this-revolution-

The

system.

deed

with

other

not,

rjMth

the domestic

feconomic

deal

freeze

the

now

first

From

1953 -up

the

foreign

:;This,

.savings

Chasing power of
'

our

de-

money

teriorated

this trend

if allowed to continue

that

amount;

and

'j;

Fu}b^ h.^re

WiKStJ b'X'b™:

ton, Mass., May 9, 1958.

.:/

Union Dime
savings bank
;

For
2
*:

Late

Banking Days

www

?uch

Ser

budgetary

t^ %

During building
Avenue
at

program,

41st Street

OPEN
OPEN

OFFICE
temporarily at

of the Americas

New York 18

MONDAYS AT
THURSDAYS

8:30

6:30

M.
P.M.

MURRAY HILL OFFICE
Madison
Street

Avenue

New York 16

plant

expansion
was

nrivate debt

•

^ .

JJ*Lve
nave
'

Snid

Saiu,

'which

Will

least

and

area

drea
needed

such

tax

Member

Federal

Deposit

Insurance

Corporation

believe

increase in the public debt when
it js
necessary to counteract seri¬
declines

ous

in
production and
There will undoubt¬
edly be growth in the total debt,
whether it be public or private
or

both,

order

sustain

the

growth in employment and pro¬
duction, for the public debt is
larye Or Ismail only in relation to
the_ ability of the economy to

little

From this

grown

this

creased

87%,

the

public

debt

has

nancing of local public, works.
It

period has in-r
growth in the

been

increase in the public

debt

can,
of course, be accomplished
either by tax reduction or by an

increase in Government expendi¬
tures or both.
Tax reduction is

receiving

increased

and

field

other

attention

experts

Government

policies
of

seem

the

economic

to favor it.

the

hand, it is the least flexible

our

Government

life to advocate tax

cate the

time

tools

for

sta¬

is very

political
reduction, but

difficult for

to advo¬

increase in taxes that in

will

needed

prevent

Pending a decision with regard
to taxes, however, the Congress

economy.
vent

from

this

was

the

was

not able to pre¬
and
short¬

erroneous

manufacturers in 1955, but it is
moving to ameliorate the evil ef-»
fects thereof.
If

turn to the problems

new we

the

foreign field,

fronted with
uation;

.;; •

Turns

Foreign

Field

States

districts

essarily

435

Congressional

issues. "Few

have

how well meaning or devoted they
may be, arc not well designed to
initiate

formulate

farsighted
policies. A back¬
ground of long experience in the
field and the ability to concen¬
or

and wise foreign

one's

erable
to

attention

over

understand

and

Continued

cope

the
tne
en-

The question now arises as to
what ought to be done to counter¬
such,/act the present recession.

war.

verse a recession.

can

been

create

favorable climate for the use of
approved. I opposed them. And credit, but it cannot actually erethat bill was the impetus, in mjt.-ate a demand for it; it cannot put;
were

opinion, not only for the excessive
*° useplant capacities which resulted;
The classical way to increase
but also for a wave of optimism^ demand is to reduce prices, but
unjustified by a realistic appraisal r our economy has become so inof the market.
In Detroit, under flexible that we cannot count on
the leadership of General Motors,- this type of
adjustment to maineVerybody was
planning
and.;tain production and employment,
building for an annual ten million I have already mentioned the high
cars.

All

manner

frills

were

useless

added

and

the

priced over-expansion of industry
-

to-the extent that it was, in Feb-

vehicles,
milliner,

and. like .the Parisian, ruary, operating at only about
they changed the style 69% of capacity. Prices are still
Within a year, your,
holding strong, and labor is mak$3,000 car was old fashioned and ing further demands. With wages
out of date.
Eight million auto- and salaries representing about
mobiles
Were
actually sold
in three-fourths of the costs of every1955,
borrowing
against
future-* thing, it is easy to see that price
production and employment. Con- reductions cannot be counted on
sumer credit grew $6.5 billion in: in
many areas.
1955, nearly $4 ..billion of which \
Thus, I do not believe we can
was automobile credit.
rely exclusively on either moneSome of us who tried to call
tary policies, conducted by the
attention to this wave
of opti- Federal
Reserve, or natural admism and speculation, and who
justments in the private economy
sought only a realistic appraisal, to compensate for the decline in
were
condemned
as
lacking in our economy. We can, of course,
each season.

"confidence"

The

the

attitude

strongly reminiscent
of

the

late

future

1920's.

This

then

the
is

of
was

days

not

that we face another great
depression, but rather that our
economy Ought to be subject to
continuous

examination

and

ap-

praisal- and that the greatest factor in our government's policies

nothing.

run

the

amount

But in that

risk

case

increasing

Government

At the same time, we
situation which the Corn-

munists are, no

—4o

prove

YORK

CITY

I
A

MUTUAL

INSTITUTION

the

necessary.
a

Savings Bank

interven-

tion which will ultimately become
create

BOWERY

NEW

doubt, praying for
their propaganda that

democratic capitalism cannot succeed.
A serious depression will

consid¬

periods of time is needed

licieftcies which had resulted from - eased. .But, although a restrictive
the depression of the 1930's and'monetary' policy — tight money-*for those shortages in capital goods i,cait help prevent serious
inflation,
which resulted from military de- • an easy money policy cannot rereductions

the

opportunity to live
abroad; to speak! a foreign lan¬
guage, or to study and contem¬
plate the course of world affairs.
Large legislative bodies, no matter
or

created substantial ekcess reserves
of the normaFgrOwth of the^in banks by open market operaeconomy of about'3% a year, but'-tions
and
reduction of reserve

tax

nec¬

preoccupied by local,

are

domestic
time

and

quite naturally and

sufficient, not merely toHake

But these

Members;; of your Congress
elected by local constituencies in

reduc-

has

con¬

very

■>

a.ls.° to make UpTor the great de-vreqUire^iits.^Money

are

different sit¬
y■/ / 'r •: •
' /a

care

record

sighted policies of the automobile

trate

inflation.

evident

the

Congress is capable of
taking action designed to meet the
purely domestic problems 'of our

about

onlv

that

7%.
An

bill

bill designed to
encourage con¬
and
facilitate the
fi¬

relatively

past decade.
While
growth in the gross national
over

con¬

struction

the

product

increasing the loan authorization
of the
Export-Import Bank by $2
inflationary- billion, and the Senate has
passed

have passed

in-

But

reduced

fhttt

struction.

and

nothing

say

OPEN MONDAYS TO 6:00 PJd.

period

some

tax reduction in order to

America.
261

at 39th

high¬
As you know, we
housing bill which

already to have had
increasing housing

effect

has not stood still. " We have taken

MAIN

during

pressures,

it is very

Government

seems

was; weeding Present Recession
and the incentive toex^;
weeamg rresentKecession
p&hsion'Too strong.;
/;/'
/ The Federal Reserve has been

gaudy

Your Convenience

Offices in the Heart of New York

be-

was

H;2ulS' nrnhmehlveuSthe
inf lSfona^v Tiro
present re-

of the

mands during the

t
•

C LtatM

have enacted

Industrial capacity at that time/reducing the discount rate and has

serious

peiter tnan i, means that the pur'

The

necessary.

expedite Federal public

program.

wrong,

bankers know

•

pressures made

the

way

public debt." But just as I believe
in the reduction of the
public debt

the

the Federal Reserve in

pressures

action to

works and to accelerate the

but' in this case;the timing

inflation, represented in terms of
the cost of living, by about 1%'.

•

that

with thxTeduction

wrong

present,
a

encourage

affairs.

this country experienced

causes

modernization. There

before the

our

\
VV
Domestic/Peril of Inflation

Fiscal

only restraint which
jng use(j

These

eating

and

the

of 1954. The Administration came
to Congress, then, strongly, advo-w

and then

scene

;v With the measures

s/Congress-which-affe'et
'

restraints

and:suppoi.ted

excesses were touched f
nff
off nnH fieeelerfiteH by the tov! bill
and accelerated hv the tax bill

nations, butaffecting
seriously, here at

I should like to

> liujiic.

clear, to

seems,

year.

the less

Action

/ ..••. ;//./ its powers to increase the discount

completely, but it should

in the-past.

,primary

nnr

expansion

withm-:rea-{ virtually the only agency willing bility, in my opinion.
* IJ®e?. 110t' 'JJL to act«, and credit was virtually easy for those of us

should

•

our.; It

rectly our domestic economy and
tirrnxrirwr r»n+
.,those growing out r»f our rololinnc
of
relations

manage and service it.

inflationary

credit

Our problems fall naturally, into. cession were the inflationary
ex-;|
|wo rather broad categories: those cesses which occurred between;
growing out of and affecting di- late -1954 and the. middle ;of
lastf

;

period

boom

Inaction

dynamic

ary

and

standpoint, it has
Monetary

strive to minimize the tendency
to instability which has afflicted

ability to
policies to the changing

;

j0n

deficit

fluctuations

economy

'nomic strength and
•

from

goods

exces-

business

of .-these

be primarily
determined by

basically

capital

deadly^enemy o| a;<j/deral"Rraew then^de'use

participate

stemmed

massive

re-

finance.. For the same reason, it is
-/this; effort" to curb inflation, not
subject to fluctuations and, m ihy., because ' of
any obsolute faith in
opinion, the function of govern- this as
the only, or even the
best,
rnent in such an economic system
,method, but because, as a matter
ought, to
J>e to confine the extent •:of fact, the Federal. Reserve was

Russians

inflation

/.This economic system ofours is les' six
times, from V/2% to
relatively free. That is, its. main 3^%,/As a
consequence of this,
course is determined primarily by dhe:growth in the supply of-money
the(thousands ,and Thousands.;of :
was, slow, bringing about a situajudgments made by/individuals >;tioh:
known as 'Tight money."
I
Who

comp^ition^^^g|H^«|

the

of that period.

For

capitalistic society.

This; BAI-

the

economic

our

Inflation Js
*;.>-

cession

sive inflation in the long run destroys the will to work and the
will to save, which are the foundations

disastrous.

that

which resulted in the current

achieving economic stability.

It is

Chairman of the Fed¬

testified

.Government
intervention,
whether by tax reduction or
by
increased expenditures, means a

employment.

Secretary
Treasury Humphrey have

since

demand; looks to government spending to offset pro¬
duction and employment declines; and finds tax cuts
provide
/

;

„

eral Reserve Board and
of the

crease

Both the

to in¬

continuous rise

prices for 18 months, with
and Poor's index
rising
by almost 60%, and there was
increasing evidence of unhealthy
speculative activity in the stock

blames Government's 1954-1957
and not Federal Reserve, for our present

excesses,

market.

Standard

enemy;

recession; doubts price reductions

stock

of stock
•

the

surely weaken the power of the
free world to resist the
pressures
of the Communists.

Member Federal Depoiit Insurance

Corporation

with

page 26

The Commerchd and Financial Chronicle
32

Thursday, May 15, 1953

(2120)

Provides Monetary and Fiscal Link

of the Federal Reserve System

ashington, D. C.

Central banking governor

makes clear the not too well known

significantly important ability of Federal Reserve to, one,
encourage spending, foster stability and growth; and, two, to
profoundly stimulate thrift institutions' lending and invest¬
ment activities through commercial bank reserves and redis¬
count rate. .Mr. Mills points out that since fall of 1957 policies
but

and corporations, and caused com¬
mercial banks to step up their investments—chiefly in govern¬
ments—which, in turn, made available new investment oppor¬
tunities to thrift institutions.
The best

to make of

use

finance
restrain

J«r J°

ground of

ex-

-edj^anht^

reces--

example,

has focused

how

mote

q^^eM w^^^e^Jn

business

pro¬

near-term

their

that

have

t'°r making Federal Reserve Sys-

their

flow out of the proceeds of secu-

its rities transactions.

peonomic
ccoiiuuuc

gra.iting institutions that

changes are of greater Significance
to the credit-grariting^mstitutiOns
lions, and who invest at long-term,

^t^^^^^hks

aUerSely^ at- SS S

Si™Sft,eSSoSd
be available
between
as

S,fi"if,ca"ce to IWIt-ISiMein*
many ways discount rate

and

our

commercial

monetary policy effective^

The purposes

o^ate industrial p 1 ants, that are -

'he investment needs of the credit- provements in

Example, consumers are less W'R~

nomic

com-

taking

activities

f^^^ted to^appeahto

^SedirSns,'»et made^

sion, the debate ,

For

loan

Past Policies as criteria for the of most of this spending can be
future, the Treasury from time to identified with making the physitime might be expected to offer-eal additions to our school and

into

the

Upnino11 'i1,!"Xvhich

eco-

origins in the acts of spending that tem

panies.

alterna-

an(j

credit

tive iormsM

the.

Against:

„

enters

ihoice

individual

subject of wide debate.

enterprise economy

free

nr^moneta^^sDects

activity will al-

economic

ways

public

the

nomic

level

Federal Reserve System monetary

local governments

state and

the

policy is closest at the point of the
debt management functions of the
United States Treasury which, by
affecting the conduct of Federal
Reserve System monetary policy,
influence not only the lending and

borrowers,

pursued has spurred long-term lending to mortgage

both

savings banks, savings and
associations, and insurance

L. MILLS, JR.*

Member, Board of Governors

structure

rate

est

pro-

investing policies of the commer-

whose

cial banks but those of the mutual

The Not Too Well Known Nature
And Scope

corporate obligations

ceeds exerted spending effects that prodiict of its own monetary polsubstituted for those that had icy and of market influences,
originated from previous direct
A change in the discount rate
commercial bank lendings forthus' acts as a sort of green light
somewhat comparable purposes.
to go ahead with investment acHowever, their greatest use has lions J hat otherwise might have
been to support a major expan- been held up pending clarification
sion of direct commercial bank in- °[ interest, r a t e conditions.
A
vestments in outstanding and new change in the discount i*ate can
issues of United States Govern- also be made as ai red light to adment securities. Between investinvestors. somemarked
ing directly in Government seen- shift in economic conditions which
rities and, to a lesser extent, in-they should pause „to consider. A
other types of eligible public and change m the discount rate on
private fixed-interest obligations, such occasions generally has the
and lending to finance the dis- characteristic- of leading^: rather
tribution of the heavy volume of than.following the market movenew security issues coming onto ment of interest rates. Under all
the market, the commercial banks circumstances; it is' clear
that
are contributing massively to the Federal- Reserve
Bank discount
momentum of the: kinds of eco- rate changes are a decisive factor

Federal

using
public finance to bolster spending,
fiscal policy takes its place by the
side of monetary policy as an economic agent capable of exerting
a strong influence on business activity^ In the realm of fiscal policy, both the tax and debt management functions of the United
States Treasury are of great importance to economic stability and
growth. At the present time, the
relationship of fiscal policy and
At

new

•

01*

into

construction

^
hut. that;

there

consumer

new

Tederal^eserv&System monetary
policy profoundly - influences

the

by
bolstering
recovery

spending.
the

side of

Federal

fiscal

help"achieve

policy

much

economy,

been

has

about the pros
and cons of tax

Mills,

Jr.

balanced

covering ^esMentiai^comm^

changing consumer atti-

between

public works programs to encour-

Much less has been

spending.

said about the

use

iwii

advantage

reductions and

age

evenly

therefore, requires the

tudes and their effects on

of Federal Re-

System monetary policy to
expand economic activity through its influence on

sustain and

coin¬

merciai and industrial activity.
qnnw+e nf

tut

nunujtui

«u-

This is so because FedReserve System monetary and

ciyj.iuo

credit policy can link the savings

*oan

nation.

For

TkT'nuroose'of nofiCT

cial bank credit, originates pnncipaRy out of transactions in United
States Government securities,
Moreover, as the savings based
lending and investing activities of credit - granting institutions, the
the commercial banking system, commercial banks, and the FedMutual savings banks, savings and cral Reserve Banks are all invesloan associations, and insurance tors in Government securities, and
companies deal in the first kind of as the types of these securities
credit, but the scope of their lend- held in, their investment portfolios
ing and investment operations is are constantly changing, the debt
influenced vastly by the credit- management
policies of the
creating activities of the commer- Treasury are tied into the poten-

spend-

out of the supply of accumulated

savings, while the second has to
do with the kind of newly created
credit that is generated by the

between the kinds of activi-

ance

ties

consumer

that

go with producing and
distributing the output of our na-

tional plant and those that center
arotmd

creating

improving

new or

old plant capacity. From time to
time throughout modern economic

history this balance has become
temporarily unsettled whenever
plant capacity has been overbuilt
in relation to existing needs. And
when this has happened, the withdrawal of the mnrinnuror previmanpower rkrmriously engaged on its construction
has adversely
spending, and
ing power. New sources of spending must then be induced that will
..

restore the lost

purchas-

consumer

mgpower and redress the balance,
Therie ib some evidence in the
mere
is
eviaence
in
me

because there

tiality of Federal Reserve System

dynamic force inherent, in the

pels

creation of commercial bank credit
oil
that affects the tempo of all economic activities in ways that have

granting

uiovnuuuua

iCiuicu

tu.

influenced by

their

individual

This, in practice, has meant

needs.

g3ge loafnSITantd

new

have

the

pioceeds ol

flowed

into

the

which

spending

stream with beneficial economic
effects corresponding to those re¬
suiting from the credit activities
of the commercial banks,
it is through the kinds of developments

that

have

been

re-

viewed that Federal Reserve System monetary policy, by assisting
the commercial banks to expand
their loans and investments, at the
same time opens new investment
opportunities to the credit-granting institutions operating through
the use of savings and, in combination, forges a link between the
financing activities of both groups
that is economically helpful,
especially when business conditions are slack and need stimulation.

*tv"77

monetary policy first has

the

activities

credit-creating

banks.

the commercial

The thread of this discussion has
been

into the

woven

background
has

of economic recession and

centrated

monetary policy
fostering economic

System

play

can

con¬

the part that Federal

gfovrih and stability.that a therne
The broad
has been developed
of all forms of credit exerts a

use

strong influence over economic
activity and that monetary policy
is

great force in determining the
of all of the major

credit actions

institutions

finanf>iai

fovm w credit

nnG

A1+,

that

deal

another

Although the use ot croait or
;lrJ?J
in®, eci)+^)?nij,?I
at the heart ot tnis discuss on, w
J?1181 not forget t at my a n
time ago it, was_ deemed act_isab
to ai™* feder;al netser\e &ys em
monetary policy at rest lcung tn
ex
sion
of credit in order ;to
mi

the

ate

nomic

unstabilizing

extensive

too

that

eco¬

arise jfrom its

that

effects

use.

remains

from

The

thought
studying the

effects of wide fluctuations in the
Rate-s Leverage

Discount

volume

credit

that

Feilejcal

m consioenng uie oroaa sud™Reserve System monetary and
.savings^ndinvestments it credit policy can exert a helpful,

G+v, J- comple*

eral Reserve Banks has

System policy actions going back

7."

tivities that stems from the effects
that

Reserve

PU^!f' a"d co'P°ra"on. ?e"

curities,

rates the discount rate of the Fed-

Record Since 1957

are

the credit-creating

considered

then

suited

natural
ncncA
It fnilnwc in natural cpnucncA
follows in natural sequence
that as the lending and investing
jf

activities of these institutions

were

best

monetary policy to regulate not
only the volume of commercial
bank dredit. but. to influence the
bank Credit, but to influence the
investment policies of the savings

cial banks. This is

oacx

in whatever chan-

use

associations, an(* insurance increasing their real estate mort-

merdal^ar/fe

Generally speaking, consumer
spending is considered the most
important of all types of spending
because it serves not only to prime

ing to perform its economic function at maximum efficiency, its
forces must maintain a proper bal-

resources

investment

public finance can be used most
Sp
advantageously in the public in- lat®
to
terest at a time of contracting eco'
p 1
1
y
do so.
nomic activity first calls lor a definition of the term "credit." It is
The actual link is made through
our productive machinery but, in
fail' to say that there are two dis- the mechanism of the national
doing so, to set its total output at tinct uses of the term. The first debt by virtue of the fact that the
varying levels that shape a myriad has to do with the kind of credit supply of bank reserves, through
of
subsidiary activities that, in that is represented by loans and which the Jederal Reserve System
lie
turn, decide the economic state of investments that have been made regulates the volume of commer-

spending.

savings

these institutions for discretionary

eral

credit-granting activities of
mutual savings banks,
sayings and

An explanation of how the kinds
of credit policies that are related

lease

vantage.

based

Credit

lw0 Sources ot c,edlt

serve

the

2=?

said

Portance:,

key im-

A™?.

because it is the interest rate that

-n'l determine

whether

credit will be used to social and
economic advantage is the human

equation.. Essentially we are^ur
nwn

macipr«

tbpii«?Vof

nv^r

rredit

aa«vitiea ofconduct of commercial to thedemonstrationoffershowprac- govern! fhe cost at which member it is up to us ?o determ?net-hether
the commercial banks, tical fall of 1957 of a the governs the cost at whTch membe^ it up to ul to determine whether
and
the
~
— "
mrtoTthrouTh oLonhese his! ^nkiL fs influencel bvTetoa cone a^nfluence of moneta^ banks
ban,kspcan borrow from the Fed- it shall be used we stand to wm
constructively or
toric
economic
cvcles
resulting £
g is mtiuenced by r ederai scope and influence ot monetap- eral R
erai Reserve Banks, but because recklessly, and
American
imerican" ecnoTomf
economv

mav
may

now
now

be
be

t:yC! JL^.rSu 1;1:n? Reserve

System

and policy can be extended beyond the chances
change

monetary

discount

the

rate

are

Varacit7''iris"'therefo7e"'rnc7m- 7ecllt ,p011ey ?ctlons to .rfg"lat,e commercial banking system, on a significant guide to money marAthe.volume o£ commercial bank which it falls primarily, toward ket conditions and the direction
monePrivate lite to bend 'thei^ effort credit' Federal Reserve
System secondarily exerting an influence of Federal Reserve System m.
private tiiAtoTend their ettorts
monetary

wats ttS;0will hll'n roundoff
neip round oil
•

the

and

credit

policy,

at on the investment and loan deci-

every

institutions

granting

that

have

tfon ^nd in^o aoing put m piace much°f credit. Realization of how been referred to Beginning at that
dofng^uTinnlace kind the ability of consumers to time, additional reserves were
uuu,

aaa m

firm

foundation

which

build sustainflhle economic t*rnwih
build sustainable eennomir giowth.

Because Credit
nonuc

one

the eco-

factors whose end result is

spendmg, its

<;avpk

thpir willinf*np<s«i tn «nend

sunnlied

the

for both

purposes is es-

commercial

depends
of

business

financed

the

that

transactions

number

immense

commercial

are

steadily

Inasmuch

increasing

loan

bank

credit, lights
economic

the far-reaching

effects

that

flow

from

f™
banks used

amounts.

demand

the

some'part

of the new
at their disposal

reserves

aims.

System to regulate the volume of

by federal Reserve System policy

38th

Annual

Mr.

Mills

before

the

Conference, National Asso¬
Banks, Boston,

ciation of Mutual Savings

Mass., May 8,

1958.

commercial
the

bank

supply of

it is based.

credit

reserves

through

which

that

min-

whether interest rates will tend to
become

that

serve

e 01

less attractive for

purposes,

"
follows

change in the Federal Re-

Bank discount rate has great

placed

the

whirl-

decisions.

With Auchincloss, Parker

are framed in

calculations

against

sector^nco™ra®^lal significance. The reason for this is

the power of the Federal Reserve

address

Considering

Dolicv

hank«s

sential to the fulfillment of these

♦An

Dart

save> °r ineir wiiungness to spena, suppnea 10 xne commercial oanxs investment

proper use

public and private

tarv

remotely, exerts a controlling sions of the various other credit- vestment decisions
infiuence over the use of

wind of our own

POTTSTOWN,

Pa.

—

Auchin¬

closs, Parker & Redpath, members
of the New York

Sto<^k Exchange

other
principal
uuicjl
pixxiuipax
have announced that

and
a»a
F

K?uk

Poit^own

wUl
Pa

exchanges,

remesent
and

rounding territory.

Theodore

them

the^urComplete

that where a change in the dis- facilities have been installed- at
count rate brings it into line with 620 High Street in Pottstown. Mr.
a past movement of other market
Kruk will be able to furnish a
rates of interest, a kind of official

complete

investment service Un¬

customer loans

to^finance th^pur? confirmation is given that the Fed- eluding:the New York Stock Ex-

chase

States

new

issues

Treasury,

United

municipal,

eral

Reserve

System

recognizes change ticker, * ttie only such
service available in Pottstown.

and the validity of the existing inters

Volume

187

Number 5742

The Commercial and Financial Chronicle

"the

Mutual Savings Banking
And Commercial Banking
HENRY

By
Bank

II.

PIERCE,

current

commissioner

and

Now it

any

permitted savings banks, and submits
be found to allow similar treatment of

ground

common

York

Legislature
to the Bank

concern

influence the

way

course

concentrated that what is done

can

savings bank state

one

tremendous influence

for commercial

reserves

be said that

of legislation in another state, the
mutual savings banking system is

Mr. Pierce, for example,
Bill, which would reduce tax free reserve

the

ers.

has

the oth¬

might add that criticism of

tee.

They

the
to

maximum

$25,000.

this

Commit¬

want

now

individual

This

This is an excerpt from the Re¬
port of the Bank Commissioners

Mutual

of Connecticut to the General As¬

national

sembly .in.. 1843:
sioners

have

"Your

also

Commis¬

examined

the

Savings

tion, is

Banks Associa¬
director of our largest

bank,

bankers

board.

can

even

would

Finally, last February this,
York

State

same

when

have

bankers encounter

the most of them

conducted,
little

have

and

been

have

well

sustained

loss

during the re¬
cent season of unexampled pecu¬
niary distress and embarrassment.
is

no-

reasonable

savings

and

observed

whose

direction

trolled.

Losses

amount

have

been

sustained

reason

investing in stocks, post
notes, and extraordinary loans
without

adequate

security. There

appears to be a disposition on the
part of the officers in some of the

savings institutions, to loan as little
possible on real estate—and it

has been noticed that such officers

generally directors,

were

large

table.

in the

shall

many

mention

directors

banks

mortgage security.

missioners
the

are

of the

Legislature

apt

are

Your Com¬

opinion, that
intended

never

stitution

for

savings,

the basis of

should

stock

loaned

specula¬

mortgage

security,

where they might at all times be

safe, and sufficiently available.
"The

Hartford

con¬

formity with the views entertained
your

other
the

Commissioners, than

institution

the

kind

state; and the exhibit that

made

worthy

any

was

by Mr. Langdon, the

Treasurer,

(which

he has held for 13 years

office

past,)

was

highly satisfactory, and evinced

degree of skill and assiduity, which

entitles, hinv: and

the

institution

with which, he is connected, to the

public confidence."

Treasurer who had been evincing
skill

and

assiduity

friendly relationship that

even

ists

Connecticut

must be

this

ex¬

day

appalling to those who

live in other parts of the country
as the bitter
controversies, which

the

receiving

office
an an¬

I; would call your attention

1843

one

report.

statement in
was

that:"the officers

thankful

say

have

count

directors

"banks

,in the vicinity."

condition,, deplorable
seemed

dis¬

to .-the

That

same

though

early commission¬

still exists today in our state.

Mr. Charles Lyon, President of the
*An

38th

bank

provides all

address

by Mr. Pierce before the

Annual. Conference

Association

Boston,

by a Savings
bank.' In addition, thb Commercial
bank

the

meets

business and

the

needs
..

when

community,

served
is

wider

industry."

is adequately
commercial bank there
a savings bank. Car¬
step further, since com¬
a

posits to support the needs of
economy, when savings banks
phon these deposits away from
commercial banks, they injure

the
si¬
the
the

commercial banks and in turn

are

I refer specifically to
three, although I realize that there

other disputed
Multer Bill.

the

issues, such

Three Controversial

First

the

almost

dedicated

one

mercial

at¬

In
T.

Bankers Association.

Law.

that the

same

year,

the

New

Mr. Arthur

York

The

following is

his

statement:

Savings Accounts.

pulsion

clude

Banking
excerpt
"King-Size
an

may

con¬

from states that have
had no experience with mutual
savings banks.

the growth of savings banks may
be attributed to investment-type

Secondly there was the so-called
Bill."
I
felt
somewhat

accounts,
large
single-sum de¬
posits made because of prevailing

"Curtis

closer

this

issue

tax-free

12%

because
had

reserve

effective

state

help

former

Bank

Well
ment.

the

Mutual
Savings
Mass., May 8, I9S8.

National

Banks,

bank

commu¬
•.

then, there is the indict¬
It cuts deep.

sincerely

As I said be¬

believe

that it
ignore this
severe criticism,
and I trust that
thoughtful
consideration
of
it
be

could
ask

youi

foolish

consider

beneficial.
itoo bear

tions which

the
come

with

therefore
me

while

ifollowing

:;ques¬

to mind in

con¬

nection with the comments I have

What is the fundamental
purpose of the
savings bank as
compared to the commercial bank?
(1)

(2)

with

reason

that

much

this

purpose

important

one

(3) How well is
being carried out?

worthy

purpose
.

there ways in which
and commercial bankers

Are

savings

can
work together to
public better?
•
'

Refer to

conservatism

serve

of such

bank is to receive small

but frequent deposits from a

individuals."

number

the
.

been, and continues to be: to en¬
courage thrift among people of
modest

the

from

And

means.

function

specialized

main

in¬
might look briefly

purpose

a worthy
i£$$ • needed *jQ#ay.

one,

the

accumulated

thrift

New York.

favor

and

banks

that homes can

However,

ings

to protect

reserves

have

even

deposits, they

insisted

offer to sell nor a solicitation of an offer to buy these
offer is oiade only by the Prospectus.

The One William Street
A

because of the absence of a
capital stock "cushion."
On the
so,

to many commercial
bankers, the mutuais' tax-free re¬

Capital Stock

appear to constitute an un¬
fair competitive advantage. I shall
touch on this question again later.
I

only want to

that

Commercial

say

number

this

(Par Value $1)

point

Connecticut

Bankers

reserves

stitutions

Fund, Inc.

Diversified Investment Company

other hand,

have

for their

ex¬

own

than try to destroy

Price

$12.50 Per Share

(ia single transaction# involving

less than 2,000 share#)

in¬

the

protection that savings banks' de¬

positors

now

Then
most
of

the

thirdly I must refer to
bill

that

was

pre¬

Copies of the Prospectus may be obtained in any State only from such
of the several Underwriters, including the undersigned,

during the recent session
New
that

described
able

enjoy.

unusual

sented

York
has

as one

Legislature,
been

lawfully offer the securities in such State.

variously

which would "en¬

savings banks to have

com¬

Lehman Brothers

New York

State," and as one which
would "give to the State of New
the

may

plete banking services under one
roof," as one which would "liqui¬
date the mutual savings banks of

York

balance

the

surplus

funds" of the savings banks after

May 15, 1958.

thrift

people of modest means for whom
rulings.
The
it. was intended. Even though the
the
United
to by Mr.
States many years ago described immigrant,. referred
savings banks
as
"substantially Roth, no longer occupies the same
institutions under public manage¬ numerical
position in our society,
ment, in pursuance of a great
his
son
and
his
grandson still
and beneficial public policy, or¬
Continued on page: 30
ganized for the -purpose of in¬
Court

16,000,000 Shares

their doing

is necessary to the economy itself
it is even more valuable to the

NEW ISSUE

State

vast

our

grow

permitting mutual sav¬
banks to build up adequate

people, must con¬
to balance the
dangerous inflationary forces in
the economy, to balance the great
volume
of
private and
public
debt.
In addition to this; saving
is necessary to make funds avail¬

tinue

your

ent of Banks

whether

I am sure
question is to answer it. All of
you have heard in recent years
the urgent warnings of economists
and government officials. Saving,

telligently, we
pertinent court

securities. The

supervisors have not only been in

For all of
that to ask that

Supreme

This announcement is neither

able Vice-President, Bill
Lyon, who was then Superintend¬

apart
of the

Secondly, ; we. ask whether this

objective is

Commissioners

Massachusetts and Connecticut and

this

quite

commercial bank.

be" financed.

To attack the first question

state¬

ments, if indeed it has not always
been perfectly clear, exactly what
the purpose of your industry has

able to

Supreme Court. Ruling

large
It

certainly clear from these

very

the

invest¬

the

including

Finally, to quote from a
Pennsylvania
decision
of
1955:
the primary purpose of a
mutual
savings bank is to en-,
The function
courage thrift.

numbers of

today?

the

(4)

and

money

ments."

you,

just read:

and

tion

are

earning

weakens

the

serve

but

been

committee of

supervisors,

ability
nity."

de¬

savings

economy."

of those bankers who favored ex¬

came

its

appeared
before
the
Legislative Committee to

Revise

majority from

great

the

need

Roth

Joint

It is my im¬

the

tempts to oust savings banks from
membership in
the
American
pression

banks

harmful

followed with startled

interest

Bills

need for

troversies

measure

ers,

Long Island: "The

ried

pointed
some

the savings institutions" were apt
to

Report of the Franklin Na¬

longer the

commercial

would

First, I quote from the 1956 An¬
tional Bank, of

local

fore,

learned about only at second hand,
arc to me.
When I say bitter con¬

tifiable

Now

out

are

investment

the immigrants, the
the small saver*
Siphoning deposits away from the

pressed to me the thought that
they would rather strive for jus¬

in particular to

propose

the services provided

year or so has led
to believe that this quaint and

Friendly Relationships

that

these

Cites Three Critical Remarks

nual

salary of $1,000.

nual

and

They

savings

poor; and

serves

1 might just add that the worthy

for 13 years was

ex¬

them,
though they did not originate

even

another

originally achieved with the

Savings Society

has been conducted

one

three

bank p depositsare-

...

extent the bulk of

deposits

therefore,

comment

some

commercial

tions, but rather that they should
be

controversies;

in which savings

ways

his

bury

connection- with

during the last

that the funds deposited in an in¬

made

not surprising,

was

be prejudiced against loans based
on

few

vicinity—consequently such

manifestation

My perusal of the financial press

in Connecticut.

are

stockholders, in banks of discount

sand.

make

case

considerable

tremely critical statements regard¬
ing
your
industry which were

and commercial bankers have ac¬

those under
they are con¬
a

the

said

to quote two

uncommon for them to exchange
friendly greetings; and they even
have lunch together, at the same

all, if an equal degree of tively cooperated with
diligence and caution had in bur state.

been

propose

the

head

that

another

Hartford

might

care,

wealthy.

made

streets

with

been

ostrich

not

the

such

have

funds of the middle class and the

own

that

suppose

would be to imitate the traditional

his

commercial

one

great

mutual
stock¬
for
the
depositors, the fundamental
purpose of their existence being
protection of small deposits, and
their principal method of accom¬
plishing that purpose being cau¬
holders

and

Assembly
Bank" Committees.
He
said, in
part: "Savings Banks are retard¬
ing the growth of the economy of

and savings
shortly stated, is this:

least savings
banks
institutions,
having

before the New

Senate

commercial
.

banks, state and na¬
tional, are profit-making business
corporations
owned
by
stock¬
holders, while, in New York at

person
to have $100,000 on dor
posit in a single savings bank,
through an arrangement of differ¬
ent type accounts."
*

gentlemen spoke

commercial

the State of New York.

who

banks

account

entitle

Savings Banking anywhere should
objectively by savings
bankers everywhere. To ignore it

you

assure

several

Savings Institutions, and
been.highly gratified to find

commercial

members

are

and

between

increase

be studied

institutions.

vesting
the
savings
of
small
depositors, and not as banking
institutions
in
the
commercial

interested* in—

recommendation

well

be most improper for me to try in

savings and commercial bankers.
to the Curtis

other public im¬

New
no

educa¬

while I freely admit that it would

gestions to help solve the problem of relationship between
refers

the

for

used

Commissioner of Connecticut. But,

role, in airing recent charges made by a
banker; contends savings and commercial bankers
can-work together in the public interest; and offers a few
sug¬

could

does is of

mercial

—

principles

tion, roads and
provements."

banks'
New York com¬

That

rates.
are

this

type account,
clearly against all the seiise of the phrase." In 1953, the
York
Court
of
upon which they were. New
Appeals
founded, is proved by their own stated in part: "The difference
which

"which

savings

thrift

want

$1.2 billion available to the State

JR.*

praises

dividend

savings;banks

Commissioner, State of Connecticut

banking

high

mated that this would make some

what

Connecticut

depositors" had re¬
It' was esti¬

ceived "their share."

could

(2181)

The Commercial and Financial Chronicle

(2182)1

Inflation Thiongh Savings

liable

niable

remains

fact

1957

This

of course be explained

whether

making for inflation heavily out¬
weighed the increase in premiums

1,
Keynesian, or So¬
cialist, agree
that saving, by

c a

tends

the ground that wage increases

paid under superannuation
schemes. But it is my contention
that these schemes, so far from
tending to offset inflation, actu¬

reducing
spending,

course

business

no.doubt

meet

about

their

when

that

proportion
a

Paul

higher

chances

the

firms,

are

their

out

the

superannuation

perannuation

Possibly

the decline in direct personal sav-

They

large extent the

the increase

employees
nn-tinn

ing

the

proportion of
by

superan-

the

point of view of

there

for

room

due

class saving or

investigation of this allegedly dis¬
inflationary character of every
form of saving.
It is based on
the assumption that an increase
in

the proportion of the national
that is saved necessarily

income
means

reduction in the absolute

amount

spent.

true

the

This

national

doubtless

income

re¬

mains

static, but it is not neces¬
sarily true if the national income
is

increasing.

increase

the

total

tary

aggregate

mone¬

de¬

consumer

mand.

ease

sulting from

witnessed

since

the

war—

increased proportion of saving

is liable to be accompanied by an

inflationary

increase

gregate demand.

during
a

This

the

ag¬

means

that

period of expansion

even

neces¬

even

mitigate its extent.

may

Superannuation's Effect
What

much

important

and

interesting is that increased
saving itselt is liable to become
the

cause

pansion
This

result

crease

the

inflationary
national

may

saving

arise if

ex¬

income.
the

in¬

the form

assumes

of
superannuation
schemes
ar¬
ranged by business firms for their

employees.

During

there has been

recent

years

considerable in¬

crease
in
the
number
of
such
schemes operating in Britain and
other industrial
countries, and the

total of annual premiums
paid un¬
der them has come to
represent a
very

considerable

proportion of
personal saving. Indeed in Britain
during 1957 other types of per¬
sonal

savings—holdings of Savings
Certificates, Defense Bonds, sav¬
ings bank deposits, etc.—stagnated,
while savings in the form of con¬
tributions to private superannua¬
tion

schemes

increased

consider¬

Government

presented

far

20,

publications

and

them by economists
the facts and figures

relating to the expansion of this

30,

40 years'
appreciating

from

fall of 1959 at
about $5.5

Mrs.

DALLAS, Texas

been

gional

Repre¬

sentative
t h

mediate
their

The

for

that

are

made

employees'

the! contributions.

chances

sumer

represented

pay

contributions

the

con¬

for

the
well

the

employers' contribu¬
tions, in the form of higher prices.
The net result of the adoption of
superannuation
schemes
is
an
addition

the

national

income

corresponding to the total of pre¬
miums paid by both employers
and
employees, towards the
schemes.

There

saving in the
from

the

virtually
of

sense

spending.

that

;

Whitehead

native

demand

there

potential future demand.

midst

asso-

labor

course

there

arguable
of

that

scarcity

bound to

pres¬

for higher wages in
any case,
and employers are bound to
yield
to
the
pressure,
regardless
to
whether part of the
wages is de¬
tached in the form of contribu¬
tions to superannuation
sure

even *

employers'

the

regardless

schemes

whether

contributions

has caused an in¬
in prices.
But even if we
were to
accept this view for the
sake of
argument, the fact remains
crease

business

the

where

about

tially

persons

employed.

used

pymps

are

highly

viscous

Mr.

volatile

special

Corporation

tons

Kleenex tissues and table napA

Delsey bathroom tis-

200,000
also

square-foot
planned.

ware-

has been awarded

Army Quartermaster Corps. -The
firm makes approximately 95% of

^*es worn ky the armed forces,
tlie

With Williston & Beane

bers of

change,

e w

"which

tee

is-

sued its report
jn

1957

jje

succeeds Samuel H. Hellen-

brand,
tor

Benj. J. Buttenwieser

direc-

Taxes

the

central System,

New

York

who will continue

member of the committee

' AJso elected
unit

to the Chamber tax

Paul S.

were

Welch, tax

con-

sultant of the General Electric Co.,
and Mark E. Richardson, partner

of Lybrand, Ross Bros, and Montgomcry.
y
i^*jj

-r>

Kidder, reabody Adds
(Social to i n; financial cmromcuj

SAN FRANCISCO, Calif.—
Henry T. Ritchie has been added
to the staff of

Kidder, Peabody &
Building. - He was for¬
merly with Merrill Lynch, Pierce,
Russ

Fcnner &

Beane.

£a[wnwc°' an*Caroihersf°-<te addition armed forces last year,
to producing 1,200,000
the ^ale ot securities and mutual ties
for the

Williston

Co.,

piscai

other

Kimberly-Clark

State

tkms Commit-

york^

will ini-

for

was

C i t y

handling
.
thin

and

Butten-

s e r

the New York

materials,

materials

Chairman of

Yale

purposes.

w e

Tri-Rotor

for

its

Taxation.

Tl'i-

from

fice.

mem-

Stock Ex-

that Frederick

ANGELES,

Opens

Calit.—Arthur

E/De'L^Ba^ra
securities

is engaging in a
business from offices at

704 South Spring street under the
firm

name

cf £>e La

Barra & Co.

has

A. J.

neckties for civilians.

Beane,, 115

the New York
announce

ducing

also

De La Barra Co.
i
LOS

been]' pro¬
popular-priced line: of

company

Thompson Opens

has

LUBBOCK, Texas —Arthur J.
Thompson is engaging in a secu-

announced plans to start construe-

rities business from offices at 1021

tion

15th

The Fuller Brush Company
this

summer

Mr.

the

firm's

Lowey

main

formerly

of¬
was

—-t/%
'

account executive with Merrill

Lynch, Pierce, tenner & Smith.

With First

360,000-

i 5, S H

{■' "'4

Street.

Securities

now

with First

Corporation,

Street, S. W.

CHAS. W. SCRANTON & CO.

Fidelity

Pryor

Miss Cammack

Exchange

CONNECTICUT

Gainey and Gladston A. Sudare

Members New York Stock

Fidelity

(Special to The Financial Chronicle)

derth

',4

New Haven

ATLANTA, Ga.—Mary A. CamR.

phai-r
Chair

Committee

Manufacturing Comand will commence operain
a
'plant. in Torrington

tions

ai.

schemes, mack, Robert C. Duvall, Redmon

and

Pn
Co.,

man

Towne

pany

with

partment

conditions

Chamber

W. Lowey has joined the organiza¬
tion as manager of the sales de¬

An Arguable Point

pump

assets

cal worsted black neckties by the
Aileen M. Whitehead

abstention

of present
increase of

Motor

the

York

limited partner of Kuhn, Loeb &

Tri-Rotor, Inc.,. has pur-

all

New

order of $220,000 for 600,000 tropi¬

was

formerly

accumulated

reduction

but

chased

New Haven

Tex¬

.aud

commerce has announced the elec|jon 0£ Benjamin J. Buttenwieser,

for fur-

covers

The Yale Nfeckwear Company of

r s.

The

Tax Committee
The

having

potential
M

•

-V

niture and other household items,
will move from its present plant in

house

com¬

savings increases. In other words, Broadway, New York
City,
there

of plastic and cloth

sue.

27.

Chairman of Chamber

Manufacturing Company, producer

and

Corporation

May ;

Post Office Depart-

Buttenwieser Elected

attracting two new
industries to occupy existing
plants in the state. The Crusader

invest in

growth.

place

post office address
new plant and community
United, Florida,

successful in

kins and

panies

take

are

Fund

for the

tons and

:j^ee

whose
policy is to

What happens is

amount

Growth

United - Aircraft

is,,t>em£ completed tor docking
submarines with a surface dis-

daily the capacity. The
creped wadding will be converted

Inc.,

burden

wrj

150

Florida

: ;

Gf the Pratt and Whitney division

Milford. A second creped wadding
machine will be added, raising to

Re¬

the

■

The dedication of the Florida
IS Research and Development Center

plans to double the capacity of its
plant being
completed
in
New

ap¬

pointed

estimated cost of

?cl. .es
on. 1 ne expansl?" is . necessary in connection

Aileen

Whitehead

has

facilities

completed

-•

Hartford

million.

rnrnnr^iHnn

new

the

J* million^ to increase its .plant

Appointed

employers' contributions to
the schemes, they resent the im¬

the

ably.
comments

annuities

time.

substantial increase in the pro¬

portion of saving need not
sarily
prevent
inflation,

though it

merely
directions

Employees' contributions to the aim at
indicating the
premium are liable to lead to in which research could and should
additional wage demands during
be
pursued.
What is important
periods of rising prices and wages. from the
point of view of ecoIf the weekly wage payments are
noniic policy is to avoid any unreduced by the amount of these
warranted
optimism
about the
contributions, pressure for compen¬ disinflationary effect of saviM,
sating wage increases is liable to before that effect is subjected to
develop. It is a popular fallacy much closer analysis.
•
that erqployees accept superannu¬
ation schemes in the place of wage
A. Whitehead

—

will

company,

observations

above

plant

move

which

extended.
The lmprovements are necessary in connection
with construction ot the Triton, a
increased middle- twin-reactored 5,450-ton radar
increased working Picket submarine and two/5,600For middle
class ton misslle launching submarines,

■

may mean a

have

and

the New York City area to 20,000
square feet
of floor space in a
incomes is bound to be less than North Grosvenordale plant where
the disinflationary effect of gen- 40 will be employed initially and
uine saving by owners of lower an
anticipated 75 later. A new
The

an increase in saving increases. While workers over 50
large absolute amount years of age, who are
Hearing reof spending. In other words, under
tirement may welcome such
conditions of rising national in¬
schemes, younger workers are only
come
such as most countries
remotely interested in the receipt

main

present

sav-

that

smaller percentage of spending re¬

ing. Increased sales this year and
indicated continuing growth have
resulted in the plans to sell the

difference

incomes.

porcelain enamel

of the manufacturing
portion will be aluminum rib sid-

Division' of

Electric' Boat

are

national income and in the

closer

colored

panels and

demand

consumer

considerable

the increase in total

pre¬

its

the cost of,living to the same excontributions are concerned, the
tent as working
class spending,
spending be¬ increase in the total of premiums
Admittedly, the money spent by
comes reduced to a corresponding
under superannuation schemes
owners of middle incomes is liable
extent.
Under static theory the does
not
in
such
circumstances
to be re-spent by its recipients
disinflationary character of saving constitute a saving in any con¬
vvho may belong to the lower inis, therefore, axiomatic. For this ceivable sense. It simply means a
come
group.
Even so, the disinreason
it
has
been
taken
lor further increase in prices which,
granted until now that any in¬ in prevailing conditions, tends to tlationary effect of genuine saving
by owners of middle and higher
crease
in saving tends to reduce stimulate
wage demands, leading
Yet

They also approved a plan
10,000 shares for resale

to set aside

V. placement of over 3,000

cphprips

covered

60-

The exterior of the office

was

inflation.

line.

will

par

and^The Connecticut recently, been
Development
Commissi n
has

given amount of national income

is saved it must necessarily mean
that both the proportion and the

absolute volume

value.

from

wltl) Pr°duction of nuclear sub- United States
consequenceml^^1^11? construction, A second, pier ment has the

ing in Britain during 1957

under

miums

schemes.

stock

common

nvii2)mir«

ciass saving.
superannuation
spending is largely on goods which
in a1 position
are not primarily necessities
to add this extra expense to their
demand for which does not affect
prices. As far as the employers'

Einzig

meeting approved

80,000 to 100,000 shares of $20

The

schemes.,

tract that is located

acre

sor

that

are

effect

not likely to
profit margins

contributions

The

they will
spend more and not less than be-i
fore the arrangement,. o£ the su-

period of rising prices whether

square-foot plant located

their

by COlresponding W3^0^

From

Pushes Prices Higher

During

Chuck

Skinner

Britain,, at

•

ally stimulated it.

can

annual

makes

There

attention.

New

partially
in East Hartford and partially in
Manchester, near the South Wind-

1958

ably other forms ot personal sav-to officers and employees under a
Employees who are assuredstock purchase
plan,; Directors at
a
reasonable
retirement .bene tit a
meeting immediately after the
through these superannuation stockholders
meeting approved a
schemes may no longer consider
100%
stock : dividend
increasing
it necessary to save part of their the
outstanding
common
from
earnings for. their old age. In *sp,
40,000 to 80,000 shares.
rv
far as they are compensated for -5,
, „
* •
- 1'

disinflation¬
ary.

Stockholders of

Company,

ing.

absurdity. For
all economists,
clas-

point that

schemes tends to reduce consider-

continued

may

some

adoption

inflation

Connecticut

increase in the authorized number

of spending.'

another

worth

well

Britain.

em-

to superincreases the
^

There

that

represented

schemes

Thursday, May 15, 1958

£50 million

say,

absolute amount

of personal saving as indi¬
cating an increase of a disinfla¬
tionary influence. Yet the unde¬

at first sight

£ 100
the na-

say,

contributions

annuation

type

inflationary

produce

effects may appear
the height of

of,

"savings"

ployees'

prevailing view that holds savings are
disinflationary. Claims that only in a static economy is there
the assumed equivalency between reduced demand and sav¬
ings but that in an economy of rising national income an in¬
creased proportion of savings is likely to be accompanied by a
larger amount of spending. Finds an additional complicating
factor present in new type of superannuation savings whereby:
(1) higher costs are passed off in higher prices; (2) higher
wages are encouraged;
(3) potential future demand is in¬
creased; (4) regular personal savings program is discouraged.

addition

the

Dr, Einzig challenges

LONDON, Eng.—The suggestion

of,

to the amount of

tional income simultaneously with J

By PAUL EINZIG

that in given circumstances saving

addition

the

that

million

was

previously with Goodbody. & Co.

SECURITIES

New York

Hartford

—

REctor 2-937"?

JAckson

7-2669

Teletype NH 194

Volume

187

Number 5742

The Commercial and Financial Chronicle

the free

Policies Geaied to Growth—
By

SINCLAIR

HON.

Viewpoint

WEEKS*

•

J_
v

themselves, ventures

reverse

pick

up along
Calls for less

that "we

guess

Y-.
'

the

vYY-v V:;:

summer,

of boot strap policies.

way

;

office

post

life

should it not be

post

new

dent's

Nobody

capital

lease

basis

household

con¬

Chamber of

to turn

Commerce, I

people think is

some

is smart enough to prophecy

man

when

they will take that money
again.

out of the sock and start in

Why

sell

We
will

apparently, from what
they say When the people have
confidence they will buy, and no

Maybe

have been out

you

trout stream and you

see

good pool and you. see two or three
big ones. You throw the fanciest
fly you own and two hours go by

ap¬

pliance. Now I don't understand it.
I
go
home evenings from the

struct about another billion and a
half worth of post offices in this

desirable,

good

tries

ever

automobile

there
opportunity for private

people, and I

in the field, of

great past and

complex that

durable goods?

recommendations,

will be

they

business.

right to be optimistic.

great future. I don't think
should cultivate the inferiority

group

same

insurance

have had

point with them.
I said to them, you have to get out
and sell; if you don't, you don't
eat. It is as simple as that in the

construction

918

other day,

insurance

the

made

are

the

lost art. I talked to

life

were

offices under construction
by Fall.
Vlf the Congress acts on the Presi¬

in Cincinnati the

the

which could have been

field there will be

;

going toV

are

into

roads, in defense, in housing
going to see some push,

you

rln

and I think we are leveling out.'*
politics and less recession-talk, more and better
salesmanship, and expects present plans for roads, defense,
housing and post office construction are all that we need in
in the

will

handled by private capital had the
rate been given some flexibility.

when present conditions will

have
have

come a

almost fantastic

the

seems

million dollars worth

mortgages

Treasury

Secretary Weeks voices optimism about the long-range future
and, though not certain

to which personal sales¬
manship has evaporated and be¬
degree

of'

..Secretary of Commerce
;;

play of interstates, to let

the market govern the control of
interest. The net result of that is
that about

The Administration's

(2183)

and

nothing happens. Then all of

sudden they will hit that fly. Now

liable

don't

you

know

why or what
up. The people
buying, and if you
seemed so fantastic I asked my will help them by doing a little
about, what the government is doassociate
to
get a copy of the selling and preaching a little con¬
ing and what it can do and what
script. I would just like to read a fidence I think things will come
it should not
few excerpts to show you to what out all right.
do and some- ;
I close with a wording that was*
extent we have gone or not gone
thing about
April who' were not listed
dug up on an old stone in a church,
in the field of selling.
Recent Legislative Bills
what the peo- '
member of
the
labor
force
in
in England that
was
blown toThis is a purveyor of automo¬
February. ' * ; ^
' I now come to a phase and a
pie can do.
/
pieces in the war. On it were these
/•
'
'.
Part of Government that I am not biles. He says, "Cars to be sold
..'A
word
words,- and I think they are ap¬
Sees Summer Pick-Up : K
so attracted to and that is what I under our same easy credit policy
about the
of no money down and terms as plicable today or any day: "Fear
What about the future? I am not
background, it
f concerted effort to dump a
knocked
on
the
door,
Faith;
seems to me
muchof a
prophet, although I lot °f appropriation bills down on easy as paying bus and car fare. answered, and there was
nobody
Why you don't even need tag
.

other

countrywhich

are badly needed
ment rolls in the April
run-off,
sum ^ up.' roads> defense,
and adding the March increase in bousing, post office construction—
employment this means that just a Sreat public works program and
short of one million people have ?10 lease breaking in the whole
gone to work during Mar<3h and business.
- H

-1 would like to say a few words
about the recession and a little

have

been

added

the

employ-

the radio. I listened the

night,

listened

nights to the

many

makes

good
line. It

same

will

them

start

stir

a^ag:

that

the

have not been wrong all the time.

con¬

fidence of the

people

was

shaken

the

some

occurrences

well

1957, particu¬

larly

Sinclair

the sput¬

nik

Weeks

episode

so'on. They started putting

and

their money in their sock.. We had
soft ,fourth
quarter
and
this

that the

me,

centuated

trend

was

weather; it
customary to blame all things

months

the

field

weather

the

and

Weather

particularly

Bureau

the

De-

partment of Commerce, but I
serially am convinced that

per-

the
weather has had something to do
With this picture.
v
,
.

.How

bad

thjg

recession?

don't want whatever I have to

to indicate that I

think

guess

your

mine. I believe

are

1957. Actually

of foreign

go-

the

the export
vehicles and

machinery and
chemicals in the first quarter was
ahead .of the first- quarter a year
;

this

and just in
that the stand

say

optimist

the

some

would have
national

quarter

gloom

bad

among

believe. The gross

product

forthe

first

basis

on a per annum

runs

IvT betow^hi1
national

income

rt
the

than
than

basis
billion dollars

a per annum

out at about

overall

year

than in 1958. Industrial production off about 13%. Plant and
more

but this will be offset to

ex-

the

classification

that

paid duty of about 2,4 billion. My
premise here
must afford a

that while

wc
measure of protection to domestic industiy, we must

also afford

a measure

of protec-

ernment

some

ex-

by stepped

expenditures;

gov-,.

national, I

state, and local. Retail business for
the

first

quarter

off

about

2%.

Consumer credit, $1.8 billion, was

paid down
the first
The
steel

and

consumer

spots

autos,

should

credit in

know,

ahead

obviously

but

steel

the

are

steel

being consumed,

informed

15%

quarter.

soft

business

PniiVi#>«

think

those

rate

who
10

production.

This

obviously must have its effect
inventory
situations
sooner

on
or

•

Now let me turn to the part that
government should play-in this
picture. First, I am not any beHover that we can lift ourselves
by the boot strap of government operation and
assistance,
UP

i. I would
announced

through.

this to you, that the
which were

say

employment

way

figures
at

April's

end

are

gratifying to me and to me'indicate an encouraging trend.
The
unemployment rolls " a r e
down
short of

hundred thousand.

The

employment rolls, the 600,000 odd' constructive measure was passed
involving $1.8 billion. I will say

4«£a££KiJ«i!£!,hls ?bout it; h had

merce

the

United

c., April 27,

states,

1958.

Washington,
'

defcct in my
its wisdom

there

too

much

tendency to look at the trees and
la

t t

fm.est

fit

not

allow

of these Securities.

your business budgets
want to spend more for
'

fpir,n.ip

for

morp

Corporation

mak_

ing

if you
main-

ndvprtisinf*

Twenty-five

careful to fit that

are

nm(Jram

into your whole budget but
nobody ever seems to do that in
Washington. I think that is bad.'

put

j
qi:

appeared before
-fj-jg

tion

Wouse
l

and

4%% Sinking Fund Debentures

Dated

Due

May 1, 1958

May 1,1983

Committee

railroad

would

year

i,avp

vni1

lesisla—

say

Price 99.25% and accrued interest

are in; that traffic has fallen off,
their earnings are down. I three
ago

ygaj-g

policy.

recommendations
bave

of the
Committee

Advisory

transport

Chairman

was

president's

Copies of the Prospectus

made

which

the several underwriters

would

underwriters

was

stjn

taken

the

better shape than

would

they

are.

retirement

about

unless

the

something
thing to do is to

legally be distributed.

Blyth & Co., Inc.
,

The First Boston Corporation

Harriman Ripley & Co.
Incorporated

Eastman Dillon,

Union Securities & Co.

is done.
The
allow them to

Merrill

Smith, Barney & Co.

Lynch, Pierce, Fenner & Smith

Stone & Webster Securities

Corporation

White, Weld & Co.

Alex. Brown & Sons

Clark, Dodge & Co.

Incorporated

Hornblower & Weeks

W. E. Hutton & Co.

W. C. Langley & Cm.

Get Out and Sell

What can the people do finally
in this picture? Well, number one,
I would say that in this recession
,

durable

Hayden, Stone & Co.

they go along,
_

•'

A. C. Allyn and Company
Incorj "orated

A. G. Becker & Co.

Hemphill, Noyes & Co.
-

Kidder, Peabody & Co.

Goldman, Sachs & Co.

soon

return on the private capitai that is invested and to attract
as

any

dealers in securities

the

pay a

capital

Dominick & Dominick

Glore, Forgan & Co.

Basic

for

airlines

be obtained from

railroads and for the airlines. You

may

only in States in which such

qualified to act

and in which the Prospectus may

action had been

railroads

fundamental

will hear

are

taken,

think

°ne seri0?s "ur troubles are In the field of

opinion. Congress in

saw

any

National Distillers and Chemical

making

hei^

last bill we will spend about three charge what they should charge in
Hmes as much in Cash money this order to pay their expenses and to

year,-and this must be considered
a factor. In this housing field a

solicitation of an offer to buy

$60,000,000

action

any of the measfrom Congress that
have been received at the White
House, / some signed and some
vetoed — we had a road program
that is going to be of tremendous
came

We have a defense program and
the contracts to be let this year
will run about 34% ahead of last

nor a

offering is made only by the Prospectus.

trouble
^vernment in

Federal

ures

have
here in the federal Government
we

year as we spent two years ago.

offer to sell,

this year before

Without anything added

merly with French & CrawfordL

May 15, 1951

changed the rate making
operations of ICC. and would.
have
strengthened the common
carriers
of
this
country in all
fields.
Practically
speaking, no

later. The autos you know abouV benefit to this country from every
and
they speak for themselves, standpoint, and on that road proThat seems to be the worst spot gram without even the addition of.
in the picture and of course has Ibe factors that were put in this

its effect all the

verv

that—you
tion to the tremendous export. have read a good deal about the
equipment expenditures estimated, tiade that we have built up over
difficulty and railroads are in
to be off this year about 15 to 14%
the years.
presently, or at least some of them
tent

■

this country, and we have built up
a tremendous foreign trade.
«
-

ported

the

*
vThe construction industry in the

first quarter

last

the highest in the history of

l°wer, in

runs

of -trade

vJith

hfigw P°^.over $8 bilUori jworth of
last finished .manufactures
and ,im-

quarter

pi^dhasmg power.

was

of the

1 haV1'wStlT item-t0rnS
£^ to ^ur ihnt manufacturesthe field
last j^ar m
the of finished

actually for

first

level

country

The

was

will

encouraging and obviously in the
right • direction as I see it. The

from

and

If thev

program

this

^nrr^sbm
finallv
the ?ti?ute boik^if
ve?v
embarrassing

Commerce has taken in support of

trade

New Iasu«

S Ire eohfe

that the United States Chamber of

reciprocal

think

This advertisement is neither

c?use this country gieat trouble,

connection

passing let

the

by nature

am.

!5?100

\< The rivers and harbors bill

out of the woods yet, but I am

iny point of: view it is not

^oes not need any more political
compromises, and this is no time
|n ]oy jndgment to fieeze a system

v-',

ago.

are

.Pr®sent recession situations but
.pave some effect when _we
^om.e
them and will add to

trade

say

that

plus

ac-

the

dragged on into the first quarter,
I. think, I found many who agree
with

there."

We give you those free
free inspection. If you had

money.

credit troubles in the past, forget
Gas ton-Buffing ton-Waller
it. We handle financing ourselves
-ATLANTA,
Ga. —Gastonand it is up to us to say who gets
ine to pick-up
ing to nick-un alonff in the Rlim. the inflationary pressures that will
along in the sum¬
Buffington-Waller, Inc. has been
be evident sooner or later. .Some the credit." I skip a little and
mer, and I think,we are leveling
formed with offices at 32 Peachfinish with this. ''Now listen, a
out. If we could have less politics
tree Street, Northeast, to engage
these measures I personally am
special bonus of 100 gallons of
and less talk about recessions, we
in a securities business.
Officers
I
- t°
say have been vetoed gasoline to the first 10
people tak¬
are
James J. Buffington, Presi¬
would do better. ,ls
7, - :
ing delivery." This is not the way
I
ran
into some
dent; Erskine F. Gaston, Vicepeople who before *
I was brought up to sell.
President and Treasurer; and Eu¬
handle advertising in a big way
■:
.
v.
the other day and they told me
gene Waller, Vice-President and
Optimism
-l.n -;the
-"Problem,- farm
that their plans or sales forecasts iP^esare \\/c above a year ago
Secretary.
Mr. Buffington was*
Now one final word. I said I
for the second six months of this a
formerly with Courts & Co. Mr.
Ki
ls a Problem. The farm was
by nature an optimist, and I Gaston and Mr. Waller were for¬
year run ahead of the second six Ploblem needs a
solution but it

really take hold is

Vs! ?
£ Pennsylvania Avenue
which will not have any effect on

The future, the long-range future
looks good.When this turn win

consumer goods.
I say
categorically that in this field it

Lee

Higginson Corporation
Wertheim & Co.

Carl M. Loeb, Rhoades & Co.

G. H. Walker & Co,

Dean Witter & Co.

The Commercial and Financial Chronicle

(2184)

Thursday. May 15, 1958

sity of Minnesota, presented to the

The Extiemities of Current

Joint

lessor Cochrane would have

that

making farming a public utility to those advocated by
Bureau, precedes distinguished agricultural
program

which he admits

divided opinions

(2)

producers

and

that of other groups in the na¬
tion. Government would determine

the

of credit to encourage
(3) interim supplemental
aid; (4) shift of sub-marginal farmers to non-farm employ¬
ment; and (5) expansion of food distribution to low income
groups. This should, Dr. Black holds, reverse present surplus
trend at Federal expense, and bring about imorovement by
1960 and agricultural recovery by 1965.
gradually to lower prices;

both

"fair" to producers be¬
ing defined as "parity" and yield¬
ing as good a return to farmers as

the slavery issue;

bring production and

use

level

parity. Clearly
prices
would
be

that

prices

national

would

the

such

support

market

sales

place.

quota

The
be

The general situation now with

produced under

solve the farm-

problem, dif¬

and

are

now

meas¬

ures.

These

e x

r e me

however,
not

all

All

except
potential

overall marketing quota

basis, but

the

already

are

individual

stated

crops

farm

quotas

are

basis. The
marketing quota

acreage

same

direc-

reason

tion.

They
on
the

provisions is that the farmers by
using more fertilizer or other im-

range

side from

one

much

markets" to the

reverse

these;

policy

the extremes, the

proclaimed

Shuman

Bureau

the

President

American

Federation

convention.

annual

Farm

its

This

recent

includes

abolishing at as fast a rate as pos¬
sible all price-supports except as
"a safeguard
against extremely
wide
all

fluctuations"

acreage

keting
flow

likewise

and

allotments

quotas,

and

mar¬

stopping

commodities

into

all

emergency
low-price situations,
Even in such situations, the stocks

to be disposed of immediately
home or abroad. There is of
the definite assumption in
that if the government

course

all

offsets

the

fewer

Thus the 15,500,000 acres of

cotton

The

fore

put forward be¬
Joint
Economic

program

this

Proposal

same

Committee

Glen

Talbott,

the

Union, the nation's most nearly
leftist farm organization, differs
from Cochrane's mainly in the
following particulars:

this

pounds

27,000.000

1936-40. The

408

averaged

acres

yields have in-

corn

creased from 26 to 54 bushels per
acre in the same period; the tobac-

yields from 910 to 1,570 pounds

Most of these increases have

come

since 1946-50, thus 50 of the 70%
for

cotton, 150 of the 210 for corn,
but only 30 of the 70 for tobacco.

Particularly to be noted in this
connection
extreme
to

that

suggestions

put livestock numbers

the

few
go

far

sales

the Executive

National

Com¬

Farmers'

controlling the feed

sup-

j y TL main
for thte is
\^t di t control of iivestock
J t t . * *
b °*
1
unworkable W?th all of Jhe basic
""ops except^com aIreLv
eb?u market auota ba^is it is
ab
reason

™a[k(^

d th

fhat £

such

n0n_basic

auotas

JLd

men¬

new

oratories and Eli

Lilly—took

pretty much in stride, and
high for the year and reached Merck, for one, was able to
an
area
where overhead re¬
snap back lustily helped along
sistance

was

admittedly by tales of

heavy.

new

drug products.

1 ;
«

The

working at least momen¬ issues
tarily above the 460 level this of

long-depressed sulphur
able to show

were

life when

average was approaching the
468-485

that is cluttered

area

almost every inch
with potential

stocks when the
average was
last in that range and from

those

•

■.

bit

grade

a common

firm to handle
for

bit *,

export'
orders

overseas

domestic

the two other dominant

producers to be invited to par¬
ticipate subsequently. Texas

.•

•

figure t

and

overall

national

sales

quotas, designated as the
"all-commodity farm marketing
goal."
(2)

The

assure

level

the

prices

farmers

"parity

in-

(3) A national "voluntary

con-

scrvation acreage reserve" goal
Is to be sct' this to include a11 the
land not needed to produce the
"all-commodity farm marketing
goa1'" the farmers to receiv€ of'
t'ers of annual rentals from the
Secreta^ of Agriculture to keep
this out of commercial production,

the

contributed

taking

six-

one

over

turnover

best

American

u r n o v e r

Studebaker

1957

and

downside

'risk

negligible
that

are

1956

peaks.:
has *

w ever,

to where the

would

and

seem

its dividend will

yield.

average

Servel, Continental Motors,
Hupp and Electric & Musical

Outstanding Paper

Paper issues, too, have been
were no
strangers to the list well
depressed and offer
of most active issues.
They are
above-average returns run¬
a
bit short of
being invest¬
ning to more than 6% in Min¬
ment grade issues.
nesota & Ontario
Paper which
is

Easy Oils
Oils

were

than not,

times also
response to last

easy more

again in
the

unrest

one

the

Middle

East

year

Royal Dutch and Gulf sales.
ones most
immediately were

—

Minnesota

the only paper;

to report increased

First

results
under
those of a year ago, covering
spot in the oils, toying the dividend
payment by a
its poorest price of the
fair margin. The return on;

Oil the

affected.
soft

issues.

stood out for another feat

company

with

of the lesser-known of

paper

Barber

also

was

year.
*

The
were

softer
those

Minnesota

❖

items

only

around

with

concerned

quarter

slightly

cases

where

on:

only

actual

payments

been trimmed

that

which isbit above 3%.
❖

dividend action, either

twice

International Paper

had

others where

new

bank

holding

com¬

pany issue has been available
in the listed market for a

»lus P^ents to cover the costs
such action was feared. Latest,
oi conservation practices.
week or so now on which an
"possible "^and that°the ^present grOW wheat
or cotton can be
(4) The farmer wil1 have the tp join the actual casualty list expected dividend rate of 20
Colorado
Fuel
where
t?nPkS situation will straighten
iiTiI tfnn wi 1 Wrshi*ted veiT simply to corn, grain, option, however, of using land in was
excess of the
cents quarterly was con¬
gorehum or oats and other feed
excess of the "all-rnmmnditv goal omission made it a bit
"all-commodity renal
itself out, and that thereafter only
promi¬
certificate" for

really gets moving in this direc-

in extreme situations will the govemment need to intervene again.

At the other extreme

to gov¬

participation is the demand for putting not only all the
present

so-called

"hasir"

modities—cotton, wheat,
corn,

peanuts

and

mm-

tobacco,

rice—but

the

remaining feed crops as well on a
strict individual farm marketing

SoTofSVttterThfr^
quirement of

referendum is still

included in such proposals, it being assumed that the vote would
be strongly for such quotas

given

such

level

prices,

been in the

case

method

price

monlv specified
monly

and

ic
is

it has

tobacco. The

support
fhat
that

com-

avp
of

irtQ«c
loans

his

present

marketing

duction at

their

quotas to

such loans and

purchases.

*An address

versity

denied

by Dr. Black before Uni¬
Michigan Economics Seminar,

Arbor, Mkh.

75 %

farm

the

pro¬

nent

the

new

lows

parity in¬

lists,

firmed.

some

the

ana¬

Universal Pictures, lysts, the 80-cent payment an¬
(5) Government credit is to be Bliss & Laughlin and Revere nually on Firstamerica Corp.
in
made available to enable farmers
makes it at least fairly priced
Copper.
if not
lo^'acrlaleTuota/'bv "Tiv?dhnl cooperatively to take over as fast
❖
❖
❖
actually undervalued
!? acieage quotas by dividing as
they are able the whole busi¬
since
it
indicates
a
yield
ness
of
For the list generally, how¬
l^elds andHhen^3
assembling, processing,
aXerage
that approaches 5%. The com¬
* t f
the total acreage Quotas'0 storaSe
marketing of farm ever, it was mostly a case of
•thus 55 |ni S ' acIf
J t products (as now done in a large prices well deflated from pany is the spin-off of Trans™
america's bank holdings in 23
for cot on Wtth* waF
the Farmers' Terminal their
peaks, investors waiting
western banks to
out these
and whh the northern Great Association in
^Marketing ^ Plains).
segregate
patiently for the turn in the the
bank empire as required
(6) This is to be an "all com¬
tot7The!e°acreage7^
economy
to show up, and
mip E
/
modity" program, but provision
little heavy liquidation to be by law. This and Marine Mid¬
f^a,",U"der other, pr°- is made for separate
quotas

the basic crops are also limited
their effectiveness because the

come

joining

rate.

"^^ons

programs

comse?

Proposais

are,
o£
being
made for greater latitude in these

two

types:
eral

orders

Producers of the basic crops must
be
with some productive use

city

fluid

lo which th

can

and

The most
all

vegetables,

commodities

protected

not

al¬

the

Drugs
to

rest

their
were

were mostly inclined
bit and consolidate

gains
had

ment

dicted for

programs.

reasoning basic to the

Continued

page

ex-

Salk

item

although

five

news

was

issues

listed

any more.
*

alleged price fixing
The

bank

directly

Rails, apart from

companies in¬ sional

vaccine.

this

specific

some

upset when the govern¬

commodity goal
The

the chief bank hold¬

company issues available
in listed
trading; there are no

Upset in Drugs

general program, separate

logically consistent of

proposals along the fore¬
is that of Professor
Willard Cochrane of the Univer-

lines

For

ready

Public Utility

the

going

some

are

ing

markets

fruits, and nuts.

their land

(b)
Declare Farming

for

used

now

milk

land

absorbed.

(a) Patterned after the Fed¬

cuts, but still most of the

acreage

purchases, those not keeping

within

Ann

ins

oil

ernment

lanTthlfnormallv

The

expectations

day, covered by this
year's earn¬
the ings and provide an above-

than 156,000 shares and Avco,

mainly of democratically
elected farmers" will set the level

prices

available.

(1) A government board "com¬

short

Motors

posed

come" instead of "fair" Pricesb

firms

action Products. Merck, Allied Lab¬

average

finally pushed to

Most Extreme

1956

other

American Home

was

pro-

for tobacco is not too far
removed, and that both of these
programs have become very acceptable to the producers of these
products,
gram

Chairman

but
—

ent sugar control program. But he

mittee

Com-

modity Credit Corporation stockpiles and disposing of present
stocks though Public Law 480 as
fast as possible, except as loans
and purchases may be needed in

are

pro¬

239

Take first what must be consid¬
one

largely

Davis

their

pounds per acre compared with the

Examines Various Proposals

that
acres.

unlikely

industrial

ir¬

this tioned

points out that in effect the

technology on their re¬
acreages have
increased
their yields per acre to a level

and also from largely government

were

most

Leadership, because of the Texas
Gulf, h o
play in the low-priced motors, been sold down

stricted

control to producer-group control.

had

the

...

to such

gram, Cochrane finds in the pres-

proved
John D. Black

nearly "free

ered

the

for

after

the

skeptical of the market
Gulf was able to
nudge to a
rally continuing for any im¬
new
peak,.Tor,this year but.
portant; distance uphill until
that wasn't
oly control to 15 to 25 products,
overly significant :
a better business
background since the
antj
exclude
feed
grains, baby
shares are selling at:
chicks and other products being prevails.
;;v
%
considerably less than half ;
sold mostly to other farmers. The
•V
>
*
*
-/; :
nearest antecedent

basic

the

corn

are >

inw.

have

els in recent years.

ex¬

treme

estimated

reached close to 100 million bush¬

pro¬

posing

South

Corn Belt and East

the

farms

ferent groups

stock market

producers was:
of the way
broken down into individual pro¬
reinstated by Texas Gulf Sul-.
ducer
sales
offerings from
quotas, nation-wide
phur and Freeport Sulphur
percentage departures from these both those who had acquired
with
would

A detail of this proposal speci- being announced year by year
respect to
farm policy in
this tied by some is that the present according to changing export decountry is that moderate, interme- exemption of small acreages of rnand, carryover stocks, and the
diate and often compromise meas- these crops—such as the 15-acre ]jke. Also the sales
quota certifi: exemption for wheat—be largely
ures
hav¬
cates
would
be
transferable,
^removed. The wheat now being Cochrane would limit this monoping failed to
<

The

regular for
week, a not

such

enough, these
monopoly prices enforced by gov¬
ernment by keeping supplies at a

enlarged economical farm units;

STREETE

price

consumers,

Calls for: (1) mobilization and con¬
solidation of national and local efforts to help farmers adjust
held

"fair"

may

nomic Association likens this controversy to

would

set

year

price. This price, however, would

well not "be
politically acceptable." The past President of American Eco¬
own

By WALLACE

quota for each im¬

consumption into balance at that

Brannan and Farm

economist's

each

government

national sales

portant farm product and

of major farm reform proposals, ranging

A candid critique
from

the

Economic Association

American

THE MARKET... AND YOU

agri¬

a public
utility like the railroads and have

Economics, Harvard University

President,

culture in effect declared

By DR. JOHN D. BLACK*

Former

Committee

last

November, and to
appear shortly in a book, "Farm
Prices—Myth and Reality." Pro-

Agricultural Policy Proposals
Professor of

Economic

Congress

for

whirl

occa¬

over

prospects
relief, were

legislative
pretty much content to drift
Parke, along and, in the cases of the
easier

Volume

187

Number 5742

The Commercial and Financial Chronicle

(2185)

quality
of

case

roads,

are

again

values

well

sell machines

deflated

and

$4.10

formerly rented
share

per

from

From

with

high yields. Even some sales hiked overall earnings
well-pro¬ to $7.98. In the 1957 fiscal
tected yields of up to 6% are year the total came to
$5.28,
available, notably in the first including $2.17
from such
mortgage bonds of Missouri- sales; and in the 1958 fiscal

Kansas-Texas which is

line year to Feb. 28, the reported
still struggling to come
up total of $3.96 included $1.24
with an approved plan to re¬ from such machine sales.

Ahead
Among the
we

yield is so
high, but any new bond issue
in recapitalization would have:
to be subordinate to existing
ones.

...

>'•.

mally would be from sales

against rental income, but the

company's established profit
making ability is by no means
impaired. Meanwhile the
stock is close to

historic low

There was. as a matter of and far under its "norm" for
fact, considerably more scan¬ the last dozen years. It is an
American Exchange issue.

ning of quality bond issues
being dohe in Wall Street
lately. This was in good meas¬

[The
article

time

items
do

expressed

not

coincide

with

Consolidated
Gas

Edison,

Columbia

and

Gas

are

still

comfortably above
going rate for money in
markets and

rent

ST.

and

Minn.—Kenneth

Robert

cur¬

im¬

representatives.

overall

provement in the
ket has reduced

mar¬

sharply
bargains available.

Field

have

joined the St. Paul Office of Paine,
Webber, Jackson and Curtis,
Pioneer
Building,
as
registered

the

recent

PAUL,

Aws

merly
Rice

the

They

associated

for¬

were

with

Irving

.1.

Company.

Walston & Co., Inc.
well

marketwise

and

Appoints Officers

some

Walston

spotty, mostly minor increases
in

dividends

Co.,

Inc.,

Wall

Street, New York City, have

have

ap¬

helped
pointed Reginald
L.
Wakefield,
shore up the group. This divi¬
Frank
B.
Haderer and
Ben
H.
sion has been making the
Pulliam, Jr., Assistant Vice-Pres¬
pleasing corner of the market
in first quarter earnings re¬ idents, effective May 1.
N

sults

business continues to

Texas IBA

thrive for the greater

major¬
ity. Maine Public Service was

tractive
a

feet

so-called

one

did

The next annual meeting of the

Texas

by an irreducible
lifting the previous
28-cent payment to 29 cents.

Group of the IBA will be

held in San Antonio in 1959.

margin,

act

date

will

Ex¬

announced later.

(Special to The Financial Chronicle)

United Shoe
case

where

Machinery Is

CLEVELAND,

ratber persistent

earnings decline has been
somewhat
in

1956

artificial.

Sullivan is

rities

Starting
had to

the company

Ohio

—

conducting

business

from

William
a

secu¬

offices

8905 Lake Avenue under the firm
•name

of W. D. Sullivan & Co.

before World
the propaganda

I, and in
leading; up to and during that
to hear that swagger-

war, I used

ing German military officers
walking down the streets would
make
ordinary pedestrains step
into the gutter.
We don't have
anything like that in this country
today but the military influence
pervades our entire society. Industry has become completely tied
in
with
military spending, dependent upon it and therefore in
Evidence

fact* that the

cutback

last

time

when

prices

increase

tirement

military

Minimum

and

wages,

$50,000

effort to

cut

last

Rd., Eastchester, New York

the

Pentagon

terest

WO 1-3400

for

proposed
bonds

June

Bank

Developsimul-

amount equiv-

offering of the
the public is

expected to be made
10

about

investment banking group headed by Dillon, Read

are

reorganized

would

Co.

Inc.

•

H. F. Schwarz With

W. H. Newbold's Son

PHILADELPHIA, Pa.

proposal

whittle it down and in these days

unemployment

would

not

particularly enjoy that.
Incidentally, the Administration

for the first time is officially
using unemployment in its fight
for

mutual

security and foreign
aid appropriations.
It has long
been a silent argument thata the
spent

money

abroad

means

em-

5nfaT,

st time> msofai
recollect,
now

the

spent

that

for

the

mutual

ni<r * •

cnpnf

feca^ty and foreign aid is spent

this country and thereby

employment.

Senator

W. H.

—

•

(special to the financial chronicle)

CLEVELAND, Ohio
Bohlander is

now

with McDonald

previously
of & Co.

with

Merrill

Turben

1958 EDITION

OVER-THE-COUNTER

Common Stocks
On Which

ap¬

Russian

CONSECUTIVE CASH DIVIDENDS
Have Been Paid From

expenditures

5 to 174 Years

Stalin

the

that

said

dictator

capitalist de¬
survive
through either spending for war
or in preparation of war.
So, all told, you would think
that theJ'crisis" presented by the
could

vigorously
fact

one

that

not

insofar

mail

the

slightest

The

COST OF THESE BOOKLETS

would

reason

side

Of"

orders

printed

above

100

more,

firm's

your

the front cover with the

bit

it without further charge.

Commercial

Financial

Chronicle

Wm. B. Dana Co., Publishers
25 Park

Place, New York 7, N. Y.

that

Please enter

our

Market

Counter

booklets of "The Over-the-

order for

Firm Name

than 200

Above all,

that

bring

even

about

officers

Vast,

Vital,

and

accompanying dividend tables.

of staff than

now.

Address

___

it is being contended

President

Eisenhower

the

can

reorganization

himself without any

accom¬

any

joint chiefs

will

for this

saving in money. It
would, it is claimed, bring about
more
efficiency in the chain of
command, yet as I understand it,
the

name

words "Compliments

accomplish,

made

15 cents each

the

if not impos¬

not

20 cents each

200 up

over

close student to under¬

claim

—

concerned

just what it would

BOOKLET

PAGE

1 to 199

other.

only

Administration

Eisenhower

—

legislation by
Congress and it is now being said,

;

Eugene A.

& Co-» Union Commerce Building,
members of the New York and
Midwest Stock Exchanges. He was

gives

Byrd

Joins McDonald Staff

„

I car.

80%

abroad
fnrpi<,_

Administration

claiming

money

,,,

wewbolds Son & Co., members
of the New YoFk stock Exchange
an<* °^ber leading exchanges, announced that Henry F. Schwarz
has beco.me associated with them
as a reSistered representative,
Mr. Schwarz was formerly associated with the Girard Trust Corn
Exchange Bank as an Assistant
Investment Officer serving with
that kank for
Past *5 years.

payment in this country but fo3

precipitated a drop in
Is there any wonder

the

that

$15,000,000.

The

Personally, what would in-

economy.

the

Inc.

and

year

our

Particulars

and

15-year

the

Congress, seem to
is done,-whether

there would be

Suitable for Most Uses

LANTRY & WEST,

$60,000

military

effort to cut military

and

Rates

these

,,On

International

(World Bank)

alent

citizens,
President, have

committee

come to be.
And as I
serious Administration

has

tary

have said

plish.

Fire

the

taneous loan in

what

propriations is practically impos¬
sible in Congress because of the
all pervasiveness which the mili¬

stand

Ramps

when

group

the
a

out

this.

say

with

Reconstruction

ment

Administra¬

and take jobs with
selling to the military

salaries

sible for

Sprinklered Building

year.

would,

16 Mill

the

is that it is difficult

Freight Elevators

ing

one

find

May

pay

industries
at

meant

amount
due

for

Prussian

cannot

trying
to
get
an
pay for the military.

interest in it.

Siding

just

Young men of 50 retire as major
generals with their handsome re¬

a..

offering

bonds

is trying to arrange a stand¬

tion

The

Tailgate Loading

For

year

spending.
An expert has estimated for me
that 40% of our manpower is en¬
gaged in civilian military works.

there

Major Deegan Entrance

Street

de-

current

Congressmen's

you

the

FEATURES

this

the

arms,

Upper West Side Bronx

Central

recession or whatever
want to call it, coincides with

hand,
of

But .the

opponents
care

not.

Pentagon reorganization plan
would
have
the citizens
up
in

LIGHT MANUFACTURING

New York

his

One Block to

ever

youngster

War

the

what

loan

The Federation is also negotiat-

political

peoples,

nation

any

mocracies

WAREHOUSE —GENERAL STORAGE

grip of the military, I should

once

50,000 TO 150,000 SQUARE FEET

history

like to know about it.

Any

Forms W, D. Sullivan Co.

Interesting Machinery Issue

the

in the

.on

with

haven't

democratic

pression

external

spending money to back up the
President's
proposals.
They
been able to arouse in¬
terest.
No
one,
except

Carlisle Bargeron

all

it.

set

organized

was

should

out

gone

filed

covering a proposed
$10,000,000 principal
1973.

have

into

friends

there

Congress

May

the Securities and Exchange Cornmission a registration statement

meantime, several Con-

would

other

be¬

if in

cause,

Nyasaland

so.

Congressmen

The Federation of Rhodesia, and

doesn't

insisting that the President's

just

the

Congress

the

looks

at¬

military staff.

forces'

are

plan

the

armed

plan, it. is.. said, and
Congress to veto within

gressmen

suggestion

that

days

want

than

nevertheless

Convene in San Antonio

among those that saw fit to
boost the payment but this

would

still

Group to

ganization
send it to

anything

seem more

give him the legislation he seeks,
He will go ahead with the reor-

limb

n e

favor

Utility equities have fared

listening to the

tends- to

that

Paine, Webber Go.

United

from reading the

ground

Aws and Field Join

Then, too, yields of well
above 4% in some issues of
news.

Pentagon.
can't imag-

put

those

one

the

any

necessarily at

foremost

reor¬

ganization

this

of the
due to the fact that the
"Chronicle"
They are presented
stock market has rallied to an
as those of the author
only.]
area
where it might be con¬
sidered vulnerable to any bad
ure

plan for

crises with indeed, that this is what he in-

many

live,

purchases, apparently,- I understand it
public p^^^
rears on the
preferred stock. are starting to level off al¬ learned
com¬
Uncertainties over the recapi: though it will be some time
mentators,
is
talization have had a part in before it will be clear what that of the
depressing the first mortgage portion of the business nor¬ Preside n t's
liens to where the

To Underwrite African

$10,000,000 Bonds
^

which

These

ar¬

Dillon, Read Group

of the News

By CARLISLE BARGERON

capitalize to eliminate the

Virginia, doggedly points out,
however, that the money comes
from the taxpayers.

Washington

railroad bonds with

.Date

Voluminous"

and

The

Commercial and Financial Chronicle

(2186)

•>

Thursday, May 15, 1958

retroactive coverage

at once, with
to the

Reduction

Temporary Tax

will

By T. O.

should stop
collection of withheld taxes for two or three months and then
forgive 50% of taxes due until end of the year or until unem¬
ployment drops below 5%, and should reduce or eliminate
excise taxes on autos and trucks.
Praises Federal Reserve
monetary policies, expresses misgivings about government
spending, and charges wage inflation with being the country's
"No. 1 economic problem" and obstacle to our acting boldly
safely in ending this recession.

and

representative
Company or of
ci

industry, but as
nessman and

of Ford Motor
the automobile
a citizen, a busi-

fiscal

policy

today two im¬

portant fac¬
be

must

tors

the

increase

mercial banks and/or reduce
reserve

mies

order

gov¬

ernment oper-

ations
h i

a c

e v e

Federal

...

taken will

Yntema

will lead to

now

future

deficits

tax

reductions are, therefore, contrary
to

restrict

and

these
,

push inflation brought about by
the monopoly power of the unions.
Even

tion, howevei,

during this recession wage
is apparently going to

inflation

ai'e

ever,

opportunities

limited.

rather

are

workers

due to

are

get an addi-

tional $0.20 an hour. Mr.

Reuther

is asking for a wage and fringe inof

crease
a

$0.70

hour plus
(Yet Mr.
his demands are not

some

the

Reuther says

profits.

Inflationary!) Alter recovery from
this recession, the monopoly
power of the unions will certainly
drive up wages faster than productivity and will cause prices to
rise>

jn general, it takes a long

time
public

recession

run

program

would like when

opportunity will be seized
organized labor to drive up
wages and, hence, prices.
The No. 1 economic problem of
this
country is wage inflation,

every

the excessive

rooted in

monopoly

unions. If it

not
inflation,
we could act boldly and safely to
end this recession and get back to
power

for

the

were

of wage

threat

prosperity in short order.
*

prosperity
Public

sa]ce

spending

-n

certain

wasteful in

its

objectives and in its operations.
Qnce started, a public spending
program is difficult to stop. Economy and efficiency in government
are hard enough to achieve without

having to cope with large ex_
pansions and contractions in the

cycle and without contamination from government

Federal

1955-57.
a

for its

anti-inflationary

rageous

liave

Reserve

are

can.

that additional
spending meets the
tests of good timing, public need
and efficiency, it is an appropriate
means of combatting depressions,
To

the

The

trouble

cou-

actions

fortunate

Board of such integrity and

that

restrictive

lires

were

1957

and

was

too

meas-

long

the increase

rate

inadvisable. I

'Statement

apparent

monetary

continued

that

rediscount

August

Mr.

in the

1957

inclined
.

interna

to
_

before

Joint

Economic

gress,

Washington, d. c., April 29. 1958.

Committee

the

Con-

"As for labor's

Mr.

The

world"

rnmp
come

billion a
disposable personal in1U%
10% increase — would
$2%

The

would
would

We would

IpvpI

level

high

immeimme

almost
alm°st

reversed
reversed

hp
he

diately.

trend

economic

downward

bieh

call

and

demand

back

pmnlovmpnt

and

employment

and pressure group

Security in

and

author of

Changing

well-known

±q

Socialism,

the

onri
and

spirit

r»nf
out

jng of the American free
tive society

phrasemakers
the

causes

In addition to the fu-

tility of extraneous pump priming,
gpch
devices prevent correction
of the causes of the trouble, and
to

tend

freeze

the

temporary

imbalances

malaHiinsWritq-'in

face of maladjustments in

'olts ^apits
escapists,

State
that costs,
that costs

who

pose as econ-

escapists, wno pose as econ
vvnu puse aj ^uu-

omis£s» prate about insufficient
purchasing power. But purchasing p™er *s U°u ™Gre fiat m?ney

flourishcompeti-

they were inimical to the

dfagnosing

the trouble.

taking two

v»nin+ori
pointed

Diagnosis

for the recession

cures

propose

betbre

man-

steps forward. The economist cautioned against frustrating "patent
medicine" economic "remedies"
conceived

Require

First

«It is unscientific for politicians

step backwards before

forth
production and employment.

nd cust0mers

Cures

agement consultant, described the
as an interlude when the
national economy was taking a

this recession quickly,

.—

■—

expand

States,

classes, workers are also investors

recession

(and

withheld

of taxes

increase

United

where there are no stratified social

Rukeyser, who is

"Financial

it must be temporary,

month in

responsibility to

the

investors,

Merryic s. Rukeyser

Build-

ica" week.

enough, it will be lecog-

..
or credit. Purchasing power stems
admonished against from production of goods and servu.'„rH nf rpnpntinff the eeopiouucuun ux guuus cuxu sciv,
e hazard ot.. repeating tne eco
ices, and is channeled through the

llve wuci';

The speaKer

•

nomic

fallacies

1933

1939

•

government

large,

preference would be to

own

rollertion

the

withheld

cannot

taxes

entirely

two

for

three

months and then go to a 50%

forgiveness until Dec. 31, 1958 or
until
the
seasonally
corrected
of

unemployment dropped
5%, whichever
occurred

index

below

first.

During the period of tax reduc¬
tion the

government would run a

large deficit. This is not too seri¬
ous

ratio

view

the

incut
government ucut to 11adebt ivj naincome
has fallen
about

tional

50% since th^

war

and

national

from
Tf

1935

'1.1^

is.

ratios

cars

excise

taxes

and trucks and

of other consumer

creased,
1944. and
creases

tain

some

were

revenue

passenger
a

goods
1941,

some

„

number
were
some

inin

in 1951. These in-

levied partly to oband partly to curtail
the
1954 recession

of the excises

were

lowered

but, since the automobile market
was

strong,

the

taxes

autos

effective

action

The excises
are

autos and trucks

clearly discriminatory and

pressive.
excuse
.

present

There

re-

reason

for continuing them at
v/wr*
w,
10 /c rates. These TateS
<

should be reduced

end

i«finH^J.
inflation.

wage

...

eliminated

are

pi .'i

_t_

Artificial shots in

substitute

for

revival of confidence based on de¬
on
n

velopments which enterprisers, in-

Profits

vestorsv. and customers regard as

In addressing himself during the vaijdj sucb as long-term tax re^
S2 form and the settinS UP of better
in Detroit between the automobile standards in the national labor-

^'zec

the adverse e ec
tricks to fool the customer into
of job opportunities ot buying, but sincere efforts within

Tf
If

pressure group

attacks on protit. jndustry to respond to the

man-

Mr. Rukeysei- said: ;-Wheri spokes- date frQm customers for in the
for job seekers decry profits, vaiues
since employment better
men

they are—perhaps unwittingly— wor^ force of the annual indrepursuing economically suicidal ment of 700,000 additional workers

policies.

For the spark plug for depends

enterprisers and investors

innovation

—

re^

search and new product development—and since new items are,

of cur-

in the nature of things, more haz-

rent and ProsPective Profit pros" ardous than seasoned products, it

wpnshalfCGbnvr/

iSlatton Mo?eiwr
the pGCtS in business'
is contrary to the enlightened self
dlseovevs how effective
"Labor leaders can serve their interest of workingmen to propamassive
tax^ reduction is thele members and the general public gandize against the legitimacy of
w?ll bl
temDtatmn
m
it well by recognizing that capital is the profit motive, which in th

once

+Vi

miblie

whenpvpv

use

'%% iStead

reaches 7%.

vicL

when

unpmninvmcmt

ttv^seluch

meas-

lares

when unemployment is

shall

reap

should
tion

use

such

only
the

is that we
temporary tax reduc-

have

described

end this recession and at the

000

time face up to the problem

same

makes

dangerous

use

that

ofTfa?

mvestor i^
C1bties> including tools of produc
i^7dial

judgment

own

a socially
useful creative force, American enterprise system is th
which is the fountain fi'om wbiFh multiplier of job opportunities."

Until
we
have
reduced
monopoly power
of unions

of buying by managing directo^
it ,
P _,
d
f
the
*ses of c: p t
g:
a
to inventory ep enishm n .

sueh-and unemployment*.,

"Management can make its con
tribution to recovery through cut
> ting unit costs through eliminat

rates, we shaU conlive in fear of inflation

drive tip wage

tinue to

Mr' ,RukTer °UtU"ed a ^

gram for inter-group cooperatio
wbich would induce a resumptio

measures-the problem

of wage inflation.

arm

dynamlc i^nerica.
Criticizes U. A. W.

•

pubiic service.

^ enlar8inS employment opportuniLri ties comes from the appraisal by
more

sure

whirlwind of inflation.

and trucks were not reduced.

wtthout

fiscal action to bring it
about—but this is uncertain. If we

normal

volume

further

ex-

growth and

are

com-

prevailing

recovery^' Cg
take

which

"The offer of special interests to
receive and distribute artificial increments to 'purchasing power'
constitutes a bizarre concept' of

1954.

linn
tion and retardation of

ital expenditures and for depreciation reserves.
t
;

increase

with the

pared

1930's," Mr. Rukeyser declared, "is
ll13! Keynesian economic schemes
for running a great society in the
easlest way through money mastipulation and devices for robbing
Peter to rptarnatinn nf prnwth and
pay Raul leaF to irustra011H
expansion

who receive dividends, and

ers

th^ barren retention of earnings for new cap-

from

Auto WprkeS^f management act.
l?w
" A.?eriea. Mr. Rukeyser, in the ob- Calls on Industry to Otter Better
to tranSctions
jective spirit of auditor of the naValues
income
,tlor|al economy as a whole ana<.The immediate need is not

The deficit also

desired"?/
of csush
balanc/s

Would

lesson

"The

•

unemPloyment-

the

fact* that

Tax Reduction

many

deserves.

tax cut. It
enough propoitions
quickly and

recession

would end

the

rising

temporary

the

giveness

Board

that

by and
these tests,

meet

demand.

hindsight,

spending,

ability. My suggestions are minor
compared
with the
praise the
With

extent

government

^he

First, I want to pay tribute to
the

Carey, author of "The Harmony of
the Interests."
<

Veteran's Me-

own

cises anc* then with income taxes.

•

moriai

temporary abatement or for-

ston

its

for

Here I shall deal first with

Monetary Policy

be of laige

end

fiationary pressures in the ensuing

wages.

as we

Eco¬

nomic Club of

Detroit

formulated

Economists

Neverthe- out.
less the monopoly power of unions
If additional spending is reto raise
wages
should give us quired, the taxpayers can spend
pause. We cannot act as boldly their own money to far better
and freely on the monetary and advantage than the government
fiscal front

the

were

the Philadelphia School of
headed by Henry G.

shall b^ short

mav

Ibn just to slow down the infla-1'Spending just to get the dollars
tionary rise in

fore

American economic

genuinely

doctrines such

expressed

un¬

are

vari'ous ciaimants to income, inproduction in a matter of months.
nrolonsed
the
slumo
\a"?us tidimains 10 mcume mspending and a long time to stop
Somp
nrpfpr
less oowpv™bich prolonged tne siump ciuding workers, those furnishing
it< The inflationary effects of the
P
r
through giving a school of reform
goods and services purchased by
ful remedy. Thus half, instead of -.nH+spSnm.
.jtako
in
pvnloiting ^
iR
iJL.uc"ct&eu
spending come too late in the deall
the withhpld taxps miVht
hp
P°hticians a stake in exploiting a business assembler from others,
pression and then intensify the inforgiven
human misery and wholesale tax collecting agencies, stockholdstart

business

We cannot let thi§

view

these fundamentals

times

good

nized that

Cost-of-living escalators
raising wage rates. The steel

continue.

circulated by Karl Marx is a grasp

r o m

April 28 be¬

their equivalent on other income)

times,

•

sizable

opportuni¬

good

priming

This

was

decisively. Moreover, if the cut is

in depression

them in

derstood, and the intellectual anti¬
dote to the class warfare poisons

take such ac-

to meet

revenue

ditures

is a pop¬
depressions.

some

governmental

in income and

thrives

a n

|ng by Merryle Stanley Rukeyser,
expen- of New York, economist, financial
when the columnist, author and business
budget should be balanced. •
''consultant, in an address which is
There is one advantage, how- a
maj0r event in "Invest in Amer-

accelerate needed govern¬

expenditures

ment

reduced.

Since 1955 we have had
inflation, a persistent cost-

(2)

there

ties to

not

clear expenditures can be

wage

While

public interest now and
be made until it is

the

should

profits taxes. If

on a

for

now

The American system

ees.

when

pump

wish.. it
to make per¬

and

manent reductions

end this recession

panacea

cus_

rather

tomers

increases

possible

were

Government spending
ular

offering desirable goods attrac¬

tively priced is the star salesman

an'd

agers

Government Expenditures

will

benefactor of labor. 'Likewise,
management that is on the beam
through enticing orders through

schemes.

expansionary

near

Permanent

Such

years.

inflation.

cause

deficits in

job, is really an unsung hero and

for the hours of labor of employ¬

man-

substantially, but the in¬
dustry, of course, cannot recover
fully until the economy does.I wish it were possible now to
cut excises without any counter¬
vailing

tion, in support of each industrial

WOrkers,

increase

•

tary^ action by

dustry

string," some of the
effects
of
easier
credit develop slowly.

"pushing

from our present

revenue

tax system to meet these expendi¬
tures.
Permanent tax reductions

the current recession

out

volun-

from

t h

to ease credit is a good deal more
effective
than
the proverbial

will increase in the years

come as

flattens

1959.
This action
production
and
employment in the automobile in-

can

Jan.

would

quickly. Although monetary action

ahead. We shall need
all the

tive

their

sluggish interest rates.

not

...

high, discriminatory excises on autos and trucks
should be. reduced, or preferably
eliminated
temporarily, and be
replaced by a lower excise tax
with a much broader base, effec-

Monetary actions of the magni¬
likely to be

ex¬

The

reform.

and other recessionv-J
and a flourishing

Suggests labor leaders recognize the role of profits
and capital, and that industry offers better values rather than
tricks to fool customers into buying. Stresses importance of
confidence based on developments, such as long-term tax
reform and better labor-management standards, which enter.J *
prisers, investors, and customers regard as valid.

sug¬

recovery

economy.

outP will

tax

downward

F™yiS,eanfuturedeficitsand promise of growth and expansion
inflation. This does not rule

tude thus far taken or

penditures, es¬
pecially fbr
defense

exert

inimical

pointed out that per-- / The spark touching off a rebirth
tax reduction now vmf ,0f confidence in America's future
.

manent

further

requirements

pressure on

are

reserves

prices te con-

lower

held

cures

i'i ':%v

com¬

(1) Unless
major econo¬

Against Unsound Recession Remedies

M. S. Rukeyser censures pump priming

•

Earlier I

kept in mind.

and

sumers.

high. Bank
loan
rates
and long-term bond
rates are considerably above the
levels prevailing
prior to 1955.
Perhaps I have the bias of the
borrower, but it seems to me that
it would be in the public interest

and

monetary

gestions of

rates to borrowers are

economist.
In discussing

tax reduction

excise

think, too, that the steps in recent
months to ease credit might .well-.
have been taken more quickly,
At present, loans are obtainable
by good credit risks, but interest

like to speak, not as

I should

Warns

major durable good bought largely
on
long installment credit terms.
The
industry also
is suffering
seriously as a result of public talk

YNTEMA*

opines Government

Auto official and economist

today is severely depressed, as is
to be expected in the case of a

Vice-President—Finance, Ford Motor Company

'~£^ ?'

not

interim.

To End this Recession

potential buyers */
defer purchases in the
The automobile industry /

present

Volume

Number

187

5742

The Commercial and

Financial

Chronicle

(2187)
ing the fat accumulated during the
boom,

and

buying

through

appetite

through drawing
their

research

customers

the reservoir
developed by

ideas

creative

the

whetting

and

product
Once their line is in

departments.

balance with the

new

prevailing mood

of customers, they can contribute
more
to reemployment than the

windy politicians
through bold
promotional efforts in the realm
of advertising, selling and mer¬

Corn

KANSAS

the

offering

The
heads
which
of

Chase
an

May

$40,000,000

York,
and

Manhattan

general
2V2%

the

The

1978,

State

Bank

underwriting

group>
award

won

State

obligation

bonds
a

New
2.40%

bid

vine

Co.;
of

Loeb

Exchange
&

Co.;

Western

Trust

and

Northern

Co.; Chemical
Bank; C. J. De-

Manufacturers

The Marine

Trust

New

Trust

cantile

Trust

Harris

Shields

Company;

Taylor

turers

and

are

being

reof-

Barr
Weld &

Hutzler;

Brothers

Securities

Kean,

pany,

bonds, due June 1, 1959 to

White,

Co.; The Philadelphia Na¬

Co.;

Manufac¬

Trust

McEntee

Francis I. duPont &
tion

Bank

and

Com¬

SAVANNAH,
Chisholm
Bank

quired

Trust

Ga.

Co.,

—

Varnedoe,

Inc.,

Savannah

Building, has

Co.,

Inc.;

Company.

adelphia

change.

Frank A. Chisholm, Ex¬

ecutive

Baltimore

Stock

Fitch, North & Co. Inc., 1006 Bal¬
timore Avenue, was admitted to
membership

Howard

Stock

the

Fitch

New

York

Frank W. North

Exchange May 8, 1958,

ac-

hording

Howard

H. Fitch, President. This
main office member

the

firm

:
11

announcement

third

Kansas City. In addition
office members, there are
branch office members in the

to main

city.

Barret, Fitch, North's mem¬
bership
is
the
first
corporate
membership in Kansas City, all of
the other members
being partncr-

ships.

-V
/■ j'.;/ '
'
The firm was organized Jan.
1,
1946, by John H. Barret, who died
in
1951, Howard H. Fitch, and
Frank W. North. The title of the

firm

its inception

was Barret,
Co., Inc. The name was
changed to Barret, Fitch, North
& Co. in
May, 1952. Since its or¬
ganization, the firm has been an

Fitch &

active

underwriting

dealer

and

broker of both corporate and mu¬
nicipal securities.
The
"general

partners" (technically known in a
corporate membership as voting

stockholders)

are:

Howard

Fitch, President; Frank W. North,
Executive

Vice-President; James
Vice-President * and

McBride,

Sales Manager; E. Stephen
Brown,

•

Vice-President and Manager, Mu¬
nicipal
Department;
Landis
B.

Elliott,

Secretary and Treasurer.
The organization has a total
per¬
The company has a
branch office in
Lawrence, Kans.

sonnel of 38.

Form Securities Service

PORTLAND,- Ore.
Service,
with

Inc.

offices

has
at

—

Securities

been

1520

formed

Southwest

12th Avenue, to
engage in a securities business. Officers are Peter
G.
Cosovich, President, Edward
M. Heikkala, Vice-President; and
James P. Cronan,
Jr., Secretary
and

Treasurer.

Mr. Cosovich

was

formerly with Field & Co., Inc.

C. A. Parcells Adds
(Special to The Financial Chronicle)

DETROIT, Mich. — Robert J.
Copp has been added to the staff
t.

Charles

Penobscot
the
}

Parcells

Building,

Detroit

and

Midwest

Yesterday

tropical jungle

today

Co.,

members

Stock

highly productive farm, that affords our workers

Exchanges.

-'better living, good employment, new

opportunity.

Now Kakouris & Co.
-

MIAMI, Fla.—The firm

Makris

name

Kakouris, Investment
"Bankers, Ainsley Building, has
.been changed to Kakouris & Co.,
Investment Bankers.

United Fruit Company
General Offices: 80 Federal St., Boston 10, Mass.,

Joins W. E. Hutton
(Special to Tbb Financial Chronicle)

PORTLAND, Maine—Benton
Carr is

now

Hutton

affiliated with W. E.

Co.,

120

Exchange

St.

■CCLOMfelA ^COSTA PICA •'CUBA

•

DOMINICAN REPUBLIC

•

ECUADOR

•

GUATEMALA i HONDURAS

•

Ex¬

Vice-President, holds the

membership.

Mo. —Barret,

CITY,

ac¬

membership in the Phil¬

Rothschild

Co.; Federa¬

Trust

Exchange Member

Corporation;

Traders

Buffalo;

Stone

Co.; B. J. Van Ingen & Co. Inc.;

Adams,
Co.;

Company;

The

garten & Co.; Kidder, Peabody &

Bros.

W ebster

Co.; R. W. Pressprich & Co.; Salo¬
mon

Co.

Hall-

Bank;

Now Phila.-Baltimore

Company; .W. H.
Incorporated; F. S.
lVToseley & Co.;

Company

York;

Savings

Trust

Varnedoe, Chisholm

Morton

net interest cost

Bank;

Carl
M.
Loeb,
Co.; Bear, Stearns &
Co.; Equitable Securities Corpora¬
tion; Horn blower & Weeks; Mer¬

of 2.36766%.

inclusive,

Kulin,

tional

Rhoades

members

are:

Offered to Investors

Other

New York State Bonds

100.710999%, at

•*'

prices to yield 0.75%

2.60%.
L.

chandising."

Barret, Fitch, North
NYSE Member Corp.

fered

$40 Million issue of

NICARAGUA

PANAMA

The Commercial and Financial Chronicle

(2188)

Chambersburg, Pa., with common

ton

stock of

derson

$350,000. The merger was

effected

News About Banks

Bankers

and

ETC.

REVISED

Newton

Block

Edward

and William

Vice-Presidents

„,iii

iri/ic:

Tune

in t,le caPital stock of the bank

A M^

thl

Served

AutderJiar

^service^

investment
trust

in the

department of

wTs

company

rLsSte^with

vio.«

enmnanv

pre-

the Han-

Bank

over

Hiisev. accountant,

Lawrence W.-

Kriech, Assistant Vice-

Carl

and

effective May 3.

stlsd ahnoiiftced

Bank

The

York, according to a

appointments of Walter J.
Hagelin and Lloyd B. Mansfield
as Assistant Cashiers. JU1. 1J06V1J1I
Mr. Hagelin

leased May

a(lcj jyjr

the

William J. Millt

statement re12 by Hoyt Ammidon,

President.

will continue his duloinpd

T-To

Comptroller.
He joined
trust company in 1937, was

able

the

appointed Auditor in 1950, Assist¬
ant
Comptroller
in
1952
and
Comptroller in 1957. >,•>
in charge of

Miller

Mr.

the

__i_.

elected
York

appointed Assistant Secretary

1943 and Assistant

dent in 1950.

Vice-Presi-

chion

Trustee of

thg East New

Secretaries.

appointment of Gilbert T.
as an Assistant Secretary
Manufacturers Trust Company,

The

Davison
of

Newr
ace

York, is announced by Hor¬

Chairman of the

C. Flanigan,

Board.

field

Trust, would head the new
bank, and the Presidents of the

with
the
merger in 1950.

Trust

Brooklyn

S6 W%rari£d 38 a" ASSi3tant
Manager in 1955.
Davison contin-

At present Mr.

with the bank s
personnel department.
ues

his assignment

New

Company,

Trust

sjs' "

Co., Passaic, N. J.,

Palsai^-CHftonyote
Nali^al Bank
Co
wi„

and
&

Trust

p0seci

„„

form

merger

The

27.

office

The

northwest

located

the

Third

the

corner

intersec¬

46th Street

tion.

Company began

into the branch banking

move

field in 1917
the

Trust

Bankers

its

the

New

than

$285,-

000,000.

Stanley
W.
President, and
Board of the
Trust

Trust

this

merger,

later,

years

office
It

second

added

was

wasn't

...

57th

Street.

postwar 1950,
however, that the bank earnestly
began
branch

its
expansion
banking field.

into
the
Within a

offices

Jj.

The-Commercial

Bank

the bank added

four

in Queens County
er

with

The

offices

new

Bayside

September, 1948, and
a
loan analyst in the
bank's Credit Division, and later
as

Company

Bank

and

Trust

strengthening

tions in the Bronx and

its posiadding of¬

fices in Brooklyn and Manhattan.
In
1956, two new offices were

added—one in Queens and one in
Manhattan.

elected

has

been

Director of the Colonial

Trust Company, New York, it was

transfer

closed

June

until

the

Meyer has been elected

President

Mission

the

State

Bank, Kansas City, Mo.

stock dividend,

the comcapital stock of The Conway

National Bank, Conway, S.

increased

from

effective

000

C.,

was

$100,000 to $200,-

29.
outstanding

(Number

April

20,000

—

shares, par value $10.)

transferred to the bank's Mt.
Lebanon Office.
was

Fidelity Trust Company, Pitts¬
burgh,

Pa.,

Valley

absorbed

Trust

Pa.

the

former

branch

Allegheny
Company, Verona,
established

was

location

the

First

City Na-

to call

special meeting
the bank's shareholders on May
Tor
lor

the
the

mmrovins
approving

of
of

nnrnnse

purpose

$2,000,000 stock dividend.
When
holders
_

the

share¬

and

United

States

Comptroller ot the Currency, the
stock dividend will increase the

dividend of

from

Merger

value would be issued
approximately 2,000

par

owned

for

It is also

ratio

the
each

May

IIV2

14.

one

contemplated that the

be increased
uuu

irom

unaiviaea

pionts.

mis

compared to $45,215,000 when the
City National Bank, Houston, Tex.

approving
as

the

and

making

Bank

Pa., with

$25,000,

tional

into

Bank

issued

effective,
April

business

merger

masters,
of

First

National

consolidated in

The

Peoples

Lemasters, Lecommon

The

Valley

stock

Na-

Chambersburg,

Bank

April, 1956.

were
-

The

regular cash dividend rate
is expected to remain
the^ same
after the proposed stock increase.
*

the

Executive
American

Exchange Bank, Henryetta, Okla.,
was

the

Eastern

elected President and Direc-

tor
and
Ray
Gunderson
was
named
Vice-President,
Cashier
and Director of the First National Bank of Grants, New Mex.
Also elected Directors

T<Soda* rZS

Trust

were

Sena-

tor Robert S. Kerr, Senator Clin-

stock Exchange

Sheehan,
American
Exchange.
\
'
/>
Listing
of
Securities
on
the

Stock

Stock Exchange—Mar¬
.Keena,
American Stock
Exchange.
* V
-.Vi-

Formation to

Capital
Be Subject

tin

Floor Procedures

The

which

course,

directed

Supervision

—

Ver-

Corporate Financing Under the
Securities and Exchange Act —
Harry- A.
McDonald,
financial1
consultant.
-/
Financing a Small Business —
Harry A. McDonald,
Money Market — Philipp H.
Lohman.

will

Philipp

Ex¬

,'r

Lee, Jr., American Stock Exchange.

dealing in the
nature and operation of securities
markets and security analysis to
be given in New York City jointly
by the New York financial community and the University of Vercourse

Arthur A.

Stock

non

be the subject of a six-week

summer

—

American

Outside

Economics of Capital Formation
will

Bellone,
change.

Of Univ. of Vt. Course

Commercial

Banks

and

the

Lohman, will be held from June
ig to July 25.
Registration and tuition pay-

Money Market—H. C. Brewer, Jr.,
First National City Bank of New

ments

York.

should

Director
147

the

Waterman

with

the

Session,
Univer¬

Building,

Vermont,

f™

filed

Summer

Burlington,

Market

Vt.

Reserve and the Credit

—

Leif

Lectures scheduled in the course
are:

Federal Reserve Bank.

r'rwornrv./w

Financial

the

Industry

in the Process of Capital Forma-

tion—Philipp H. Lohman.

c0„liruin<«

and'(h®'
Marklt
^ nllght, h edeial Reserve Ba^k
"°£!?
^ Bank
btei
Monev

PMe

oi New Yoik.
Municipal Securities—Albert F.
Milloy, First Boston Corporation'.
Revenue

Olsen, Federal

Policy Formation-CarlH. Mad-

course carries graduate or undergraduate credit of six semester

Role

Reserve Bank

foi non-residents $120,

••

Federal

legislation fee

Bonds—Albert F. Mil-

loy, First Boston Corporation.,

•

Investment Management of Pensum

Plans:

Selection

Invest-

^ntsT.Jai"!f J- O'Brien, The
Chase Manhattan BankInc'
Growth and Importance of In-

Schrede

Distributors Group

C)lltlook
Paul

for

Atomie

Ene?gy

F. Genachte, Chase ManhatBank.
nnnlrol..

Role of the Investment Banke

.ve^men^Companies-Ffa^ld S
f ^"rnpanS
Investing
companjes

Life

for
—

Insurance

William R. Cowie,

Equitable Life Assurance Society

t he" U Placements
Inc- Syndication and Distribution o i"Direct n Red" States*.with
Robert A
pOWers, Smith, Bar-

ney

History

Mineral

Company—

Gordon H. Chambers,

Foote Min-

eral Company,
Over-the-Counter Securities

Markets—Col.

Oliver J.

Troster,

Life In¬

William R.

Markets

Function of the
tee— J.

Bryson

Manhattan
Bond

Corporate Trus¬

Aird, The Chase

Bank.

Rating

—

Edmund L. Vo-

gelius, Moody's Investors Service.
Corporate Bond Market—Jonas

Troster, Singer & Co.
the
—

Over-

L.~ E.

WalkeTr. National Quotation BulesUj xnc«

—

Cowie.

Opera¬

"Bootstrap

tion"—Foote

Quoted

Companies

surance

& Co.

the-Counter Markets

Dunaway,

-Herbert

u..

from1 $23,000,000 to

WS.OOO.OM^byTansfer :'of ROO^000 :from undivid^ profite

Vice-President
was

Ontion*

American

tan

surplus account of the bank will

D.
^

certificate

...

director of

100,000 shares

bank's

shareholders
new

hours.

approved
the

Outlook—Gerald

-"ut anci Lull Options-

foi all students
of
previously enrolled at the
14 University of Vermont $10. The

have

Houston, Tex.,

Bank,

ab-

sorbed bank
*♦*

Market

whieii• mtind W. Tabell, Shields & Com-i
v
-

Economics of

sity

V
of the

Directors
tional

A*»

M. Loeb,E. F. Hutton & Company.

Company.

again
a

wnicn

1-.

Pickard/a

director

mont.

app°^ Assistant Cashier of ture, including undivided profits,

26,

Wyman

/' Marshall was will give the bank a capital strucMarshal

•

National
Frank

HepaAr/me^;

'inL

National

recently,
1955, Bankers Trust Company
its
interests
with The
National

Mellon

a merg¬

merged
Public

T At

Odd Lot Broker-Dealer.1

Pany—John J. Scanlon. American

will be closed

business

and

through

Bank of New York. More

came

worked

throughout

National

Frank^.T^on^e
Marshall

fraction

stock

the

remain

™

Mr.

stock

the

capital stock of the bank
$23,000,000 to $25,000,000.

Chairman of the bank announced.

Manhattan and in
Manhattan
Queens. In 1951,

and -ftust Company was merged
with Bankers and two years later

de¬

given that, pur¬

bank

the

OVJrl

War¬

cer-

;

recall has been ap-/ The
^tent Manager of the of $20
4,9'
ot Mellon National to the

quisitions^and Mergers,rthe^\)mik
established

"uptown"

until

the

years before he retired in 1952

office

in midtown Fifth Avenue. Several

Fidelity-Philadelphia

Philadelphia, Pa„ died
May 4 at the age of 70. Mr. Cousjey ^ad been with the bank for 50

bank

established its first branch

retired

Chairman

official author- .jjnAnalysJ? ordh^-Technical Ac-j
'•
*tion oi the : Stock Market —Ed-

iHnii...a

opening of business on July 16.

Co.,

Company.

the

Cousley,

Stock

organization

il fi
L

Lf
f c?
*
^n^°^,Exchange,
phiiiDn tr ?£?£
t nhman Quotations—«

twlli absorb the Bank of London 6c
some of th% existing
branches of

resolution of the Board

will

voted

sis

with the acquisition

Astor

Through

the

and

bank will have

merged

resources

right

also

Jersey Bank & Trust Co., on May

York, opened its 44th office May 1.

Avenue and

Forms

Directors,

mon

Stockholders of both the County
Bank

total
Bankers

j;:

share.

Notice

By
«

Company

Trust

neees.ary
new

re-w„ct

reached^

A, new.7 organization,

Vice-

conversations

jStuait

all shareholders whose

dividend shall embrace

in New Jersey
with deposits of $92,000,000 and
resources
of
$100,000,000.
H.
Douglas Davis, President of Plain-

joined Manufactur¬

Mr. Davison

that

orovision

proportionate

largest

would

Bank

oi
South America Limited, will be Fiier, * iler, Schmidt & Co.
Financing Philosoohvand
"share- owned and controlled jointly by L. .financingPhilosophy and_Stock;snare- the two banks.
.
^ ;
holder Relations of a Listed Corn-

shall

banks

and
rj

evidencing0any^fr^ctienai*«- Alfred

livered

Plainfield Trust

other

had

stock°of

Order

rant

State National Bank and would be

two

and

—

merge
the three
June 6.
The new bank

15th

have

siocK

said
saia

bv
oy

Fractional

called

"the
me

every

non-transferable

increased

common

held
neia

books of

would

ited

Montreal

South America Lim-

^be Caribbean area.
ofbeen

...

banks

Bank

Sr.nft

flares shall be delivered thereof the, Bank off Canada, died W of Jhe A
to any
John
shareholder, but in lieu

Presidents.
ers

suant to

the

Ridgefield, N. J., will vote on a
proposal

that

°n

Bank

announced

...

t<:

Member

vlti» sPear> —
Leeds & Kellogg,

the

holders of record as of said date

Brooklyn,

Bank,

Savings

—with

Company, Ridgefield, N. J., State
Trust Company, Ridgefield, N. J.,
and
Plainfield National Bank,

Assistant

appointed

were

such

stock

bank
oanK

tifkate

Kent, Jrj has been

one

the
ine

Stockholders of Plainfield Trust

lerieth,. Robert R. Mailer, Donald
V. Martire and Alfred C. Tenna-

the

® he ^Certiftote
"
A;
i,

„

ij:

J. Hoi-

Felix J. Chmiel, Norman

record

common

Department. He joined United
States Trust as a tax man in 1932,
in

shareholders

the

ance

!•(

...

William

Canada,

Montreal,

of London

Lomp^ipHer uf, the Currencyrauo v
approving such increase, in the

Tax

was

bank

Loan

respectively,

Ballj President,

Gordon R.
of

garding establishment of a mew
organization
each, by the declaration of a banking v»5a.ui.anuH to develop
s
$25,000,000 stock dividend, pay-v financial and trading operations

Mansfield are assigned to

Department and the
Commercial
Credit
Department,

increase

naoiBtai„

jjie

Mr. Block
__

ties

July

from $100,000,000 consisting of
^OO.OOO shares of the par value
of $100 each' to $125,000,000, conlisting of 1,250,000 -shares of
common stock of the par value of
$100

President,;; have been appointed
Assistant
Comptrollers,; by ; the
Assistant; uompiroirers^ oy vine
First National City Bank of New
York.

Its

*be Specialist on the New York
Stock Exchange-Phillip B. Lea-

to Shoshone-First National Bank,

T,,n«

the'trimt

ri:fi V/i

s !isie fn
lo to consider an

^
on

Banks Trust Company, New York,

K. Block

bank.

of Savings

Vice-President

sistant

Exchange: Its

and

Firms—John H. Schwieger, New
York Stock Exchange.
New York Stock Exchange and

stock dividend and

Stock

fi*onri $100,000 to $200,000 by the ihc American Economy—Edward
sale of new stock effective May 3. C. Gray, New York Stock Ex(Number of shares outstanding— change.
2,000 shares, par value $100.)
Floor Procedure and Round*
*
* •
Lot Trading on the New York
The Shoshone National Bank of
S.tocli Exchange—Adolph P. Mor-

in the former location

of the absorbed

Aulderhar, As-

Charles

Mr.

1
New

Mac-

Edward

$100,000 by

Com-

Millen, President.

appointed
the
United

Company

Trust

William

announced

J. Miller, Jr. have been
States

Trust

York

Organization

Cody, Wyo., increased its common
capital
stock
from
$50,000
to

jy Central-Penn National
Bank,
Philadelphia, Pa. A branch was

established
-

New

and

Thursday, May 15, 1958

Parkinson, President of the Boston Stock Exchange.

The Shoshone National Bank of

Newton, Pa., was absorbed

pany,

CAPITALIZATIONS

Bank

Anderson, Sherburne Anand Tom McCaffrey.

and

Chambersburg.
«

NEW BRANCHES

charter

title of The Valley National Bank

CONSOLIDATIONS
NEW OFFICERS,

the

under

Ottens,

Salomon

Brothers

Hutzler.

Impact of Mass Mind Psychol¬
ogy on

Security Trading—Jacques
_

Over-the-Counter Markets— Coe> Jacques Coe & Co.
Their Scope,Importance and TechInvesting for a Property and
niques — D. Frederick Barton, Casualty Insurance Company —
Eastman Dillon, Union Securities Montague H. Zink, Peerless In& Go.
surance, and United Life and AcPosition of Regional Stock Ex- cident Insurance Company. ■
changes in the National Economy. . Analysis of Public Utility SecuHarry W. Besse, Hutchins & rities — Charles W. Taylor, Sun

—

Volume

187

Number 5742

The Commercial and Financial Chronicle

(2189)
Lil'e

Assurance

Company

Canada;
Evaluation of the Steel
Industry

Philip
E.
Albrecht,
Merrill
Lynch, Pierce, Fenner & Smith.
—

Eaton & Howard

Boston

poration.

Outlook for the Auto IndustryCharles N. Morgan,
Co.

Jr., Bache &

Eaton

Investment

Eaton

lor

Howard Balanced Fund and Eaton

Howard

Fund,

the opening of

nounced

office

Stock

has
a

324

Electronics—Harry M.

Sibley and R. Blair Smith, Inter¬
national

Business

Machines

Cor¬

poration.
the

Rails

Pierre

—

Bretey, Hayden, Stone & Co.
Outlook

for

the

metropolitan

the

North

Outlook for

the

;

Air

Transport
Stanley Gewirtz, Air

Industry —
Transport Association

mond

Fallon

are

with

now

James

Co., 7805 Sunset Boulevard.

been

Eaton &

the

Boston

office

Howard, will be affiliated

with M. J.

with the-new New York office.

announced

Wilshire

Ross &

expert

matters,

by S. L. Sholley,

in probate and trust

Miss

Moran

will

assist

Greer, Esq., in the rapidly
expanding field of estate planning
involving investment companies
various

and

types

—

Arthur

Commis¬

Resources, and
a text on
legal consultant to

currently completing
law

Commission.

F. V. Foster Admits
On
120

Included

her

legal

back¬

eight-year period in

which she specialized on tax, trust

Boulevard

Broadway,
of the

New

York

City,

New York

Stock

Exchange, will admit Amanda

Crude

Kalb, Voorhis

to Admit

and probate

matters. Miss Moran

Street, New York City, members
of the New York Stock

May

will

Exchange,

admit

Joseph
Schlang to limited partnership.

Robert

Oil

SOUND, PLANNED

Pro¬

GROWTH

ducing

Operations of the United
States—G. D. Priestman, Standard
Oil

for

Credit

International

•—P. W.

Company

; ;

Financing Capital Investment
Programs, Abroad and at Home—
P. W. Moyer and T. H.
Tonnesson,
Standard Oil
Company of New

■A:

Jersey.
Economic

Growth

Canada

»'fn

"J \

i-iI'kk

-i

•

-"ii

'over

1939—James R. Clarke, Do¬
minion Securities Corporation.

Participation

Canada's

Growth

through Investment
Canadian Securities
James

in
R.

—

creased 11% in 1957 from the
previous year,
reflecting continued industrial expansion and
higher living standards in the areas served.
To meet
rapid growth of power demand in
the areas served, the System
spent $88.2 million
o# construction in ,1957, an increase of 46%

.ot

since

REPORT of PROGRESS

Will add

Registrar

of The Graduate School of Bank¬

effective

May

has

been

announced by G. Russell Clark,
Executive Manager of the Ameri¬
can
Bankers
Association.
Miss

Leche,

who

headquarters

the

School

has

for the

promoted to

sulting
Janet
In

been

are

from

our

1957 Annual

Report

the

11 years, was
the vacancy re¬

the

death

areas

1956

1957

Miss

duties,

Miss Leche will

York

headquarters

and

resident sessions

summer

12,577,000

Corporate Net Income

11,900,000

the

gers—The State

University, New
Brunswick, New Jersey.
Miss Leche joined the American
Bankers Association

1946,

Corporate Earnings

per

Share
Share

$1.63

$1.72
$ .95

■1

«
•

Rut¬

Common Dividends
per

$ .80

;

Consolidated Subsidiaries*:

February,

member of the staff of

the A. B. A.

Commission.

1947,

she

office of The Graduate

$ 214,735,000

Operating Revenues

202,909,000

School

Sales of

Electricity—kwh

7,024,963,000

Electric Customers

2,632,000

Installed

1,344,000

2,504,000

Mathey Partner

May 1, Theodore H. Irwin II

became

partner in L. A. Mathey,
Co., 120 Broadway, New York
City, members of the American

Capacity-kw

1,221,000

essential commodities from Latin America is

both ill-advised and

short-sighted. Gur partner
republics in tills hemisphere are not only reser¬
voirs of raw materials, but of friendship; and we
have drawn on both abundantly in time of need.

Excludes

Argentina operat ions.
-

Stock Exchange.
o

Form Baron & Co.
WESTFIELD, N. J.—Stanley J.
Baron is engaging in a securities
business from offices at 111 Quim-

by-Street, under the firm
of Baron & Co.

was

name

formerly

with Oppenheimer & Co.

If you would
nual Report,

like a copy of the An¬
please address your
request to Mr. H. W. Balgooyen,

•"'>

Utility services, principally electric, are sup¬

Opens Investment Office !
^

DALLAS, Texas — Mary Aileen
Whitehead is conducting a securi¬
ties business from offices at 3305
Marquette.
Miss Whitehead
formerly with Carothers &
and

was

plied by the subsidiaries of the American &
Foreign Power System to a population of
more

Executive Vice President & Secre¬
-

tary, American & Foreign Power

than 21,000,000 in 11 Latin-American

Company Inc., Two Rector Street,

countries.

New York 6, N. Y.

Co.

Garrett & Co.

Herman Wilstein Opens
(Special to The Financial Chronicle)

BEVERLY
man

engaging

securities business from offices at
339

OPERATING SUBSIDIARIES IN

——

HILLS, Calif.—Her¬

Wilstein

North Canon Drive.

of the

long-term investors in Latin America, we
keenly aware of the serious economic prob¬
lems that currently are faced by many of the
friendly and progressive countries in that area.
We believe that the present tendency to place
restrictions upon United States imports of

6,332,206,000

Banking.

L. A.

one

are

the

February,

transferred

was

serves

various countries served.

Country Bank Opera¬

tions

and the countries it

guides of Company policy. This
means that we
recognize our obligation to
promote and encourage private investment, in¬
creased diversification of agriculture and indus¬
try, and everything that contributes to sound
economic development. This policy is being
implemented by a broad program of advertising
and publicity, both in the United States and in
Latin America, and by exhibits featuring the

be in

charge of the office of The
Graduate School, both at the New

efficient, better-informed, and

fundamental

Johnson.
her

increasingly effective in their jobs.
f
The knowledge that the long-term future of
the Foreign Power System is intimately linked
with the sound growth and developihent of the

past

fill

from

Foreign Power's employ¬

citizens of the countries in which

become

HIGHLIGHTS

member

staff

in progress

capacity by the

they
Emphasis is being placed on employee
training and manpower development programs
tliroughout the System; and conferences on in¬
dustrial relations, engineering and accounting
were held
in several countries during 1957.
These activities are all designed to help the
34,000 employees of the Foreign Power System

Banking Appoints
ing,

now

work.

The appointment of Miss Doro¬

Assistant

and construction

additional 15% to

More than 99% of

Graduate School of

generating capacity Was in¬

end of 1958.

ees

thy Leche

1956. Installed

creased 10%,

Clarke.

beyond

Electric energy sales of the
operating companies
of the American & Foreign Power System in¬

Problems

Oil

Rishell, Esso Export Cor¬

poration.

1957 and

Company of New Jersey.

Currency and

;

ARGENTINA

BRAZIL

•

ECUADOR

•

CHILE

GUATEMALA

•

COLOMBIA

MEXICO

Foster to limited partnership.

Driscoll, Lord, Abbott & Co.
Economics

Co!,

Kalb, Voorhis & Co., 25 Broad

ground is

Co., Inc., 6505

May 15, F. V. Foster &

members

of - personal

of America.

Portfolio Management

State

Natural

the Massachusetts Water Resources

trusts.

LOS ANGELES, Calif. — Sam
Kappe, Duane V. Ramseyer and
Harry H. Stern are now connected

J., and Joseph E. Eaton, who

assistant

former

water

Department for
Custodian Funds, Inc.,

Robert

(Special to The Financial Chronicle)

has

been

—

Three With M. J. Ross

lead¬

has

Planning

was

Ray¬
E. Chrisman and Joseph de

Michele

Westfield,

Miss Frances

lawyers,

President.

ANGELES, Calif.

M. -Sheffey

In¬

Chase

(Special to The Financial Chronicle)

New

—

of the state's

one

women

Keystone

handled from

Moran

Estate

Funds

two

BOSTON, Mass.
M.

ing

sioner

named assistant to the head of the

Drive.

Two With J. L. Fallon

Orders

area.

the

Camden

Co.,

the concern's Boston office.

John

Petroleum

dustry—John D. Emerson,
Manhattan Bank.
/ /

for

will continue to

Outlook for
R.

York

dealers

with H. Carroll &

now

was

Lyman,

Keystone Custodian

an¬

service

Broad

Street, NewYork City, for the convenience: of
investment

Lloyd

are

LOS
IBM and

HILLS,

Cal.—Edith
Canady, Jr.,
Gertzkin,
Bobbe
P.
Kurtz, Jerry Martin and Nat Tay¬
Berg,

Albert

Managers and

distributors

national

BEVERLY

Howard, Incorporated,

also

Miss Moran Joins

(Special to The Financial Chronicle)

New York Office

Financing the Expansion of a
Company — Wilbert A.
Walker, United States Steel Cor¬
Steel

H. Carroll Adds

Opens

•

PANAMA

COSTA
•

RICA

•

VENEZUELA

CUBA

The Commercial and Financial Chronicle

(2190)

26,

Texas Group I. B. A. Committee Report

Activities of the

Municipal Se¬

Committee

the

Texas

Group Investment Bankers Asso¬
were reported
to
membership at the Associa¬

ciation of America

tion

the

Finance

Housing

the

make

tion's 23rd annual convention held

facilities

Houston,

1958.
The Report

•

April

Texas.

23-25,

obtain

Bill

361

last

the

Convention

22nd

held

This Bill

year.

An¬

Dallas

then

was

the Legislature and amended the
Fresh Water Supply District Law

est

rate

not

exceed

have
A

Year

The

loans

President

year.

The

Committee

the

Rauscher,

Pierce

M. E.

;

permitted to be filed

.were

the

decline, and opines that
of

occurrence

slowing down in
Ieveling-off will depend on

announces

first of

series of articles

Some

lessoning

thrust

suggested

available

the

down¬

information

concerning

developments,

Reserve

the

recession

Bank

now

March

the

New

th8t

the

"Monthly

Texas

May

Review

rise

staff

memoranda,

of which contemplated
stop-order would issue since

in the opinion

quate in-one

statement
statement

was,

another.

way or

prices

obviously

was

impossible and would have efi'ectively dammed up the entire capital

market

once

and

for all.

The

legislation, which was inherently
desirable, would not have lasted

reflects

and

largely unusually
bad
weather
two weeks. Faced with this situaand delayed cattle marketings.
So far, business and consumer ; tion, and without express statutory
its confidence appears to have been directive, Mr. Bane quickly de-

Federal

York

issue

re¬

Credit

and

cided

well-maintained, but there is jus¬
tifiable

that

concern

this

to advise each issuer of the

deficiencies

confi¬

his

particular
counsel the

statement and
give
and
employ¬ dence might be undermined by
being reduced but. heavy and prolonged unemploy¬ opportunity to amend accordingly,
The
not quite so rapidly as
pending registration stateduring the ment with its attendant hardships
Texas Group was to continue to
ments
were
appropriately
winter, while construction activ¬ and social strains..
act
as
a
liason
committee
be¬
amended' in short order. It then
ity, helped by better weather,
tween
Texas
Smalt Business Financing Group
IB A,
the now appears to be
became'apparent that some action
experiencing
would have to be taken in order
Municipal
Advisory
Council
of some seasonal
The May issue of the
upturn," the article
"Monthly
Texas and the Executive Director
to enable the underwriters to arnoted.
Military ordering appar¬ Review of Credit and Business
of this Council.
Although these ently has begun to advance some¬ Conditions" also contains the first -range a definite time table which
activities were quite demanding
what, and a few non- defense in¬ of a series of articles on the fi¬ would include a specific date upon
upon the time of the Committee dustries also
closing would
take
have reported that nancing of small business, based hwhich the
members
at
times, the specific sales and orders seem to be level¬ on a survey of commercial banks place and the securities offered to
items will .not be referred to in
the public.
in
the
Second
Federal
ing out for the present. After al¬
Reserve
this report since they will be re¬
lowing
for
seasonal
It will be recalled that prior to
variations, District. The survey in this dis¬
cited
in
detail
with
the
other total new orders
received by dur¬ trict
was-part of a nationwide ,1940 the Commission did not have
multitude of activities covered in
able goods
manufacturers declined study of financing facilities avail¬ its existing authority to "acceler¬
the report of the Executive Di¬
only slightly
in
February and able to small business, conducted ate" the effectiveness of a regis¬
rector of the Municipal Advisory March.
by the Federal Reserve System. >.• tration statement within the initial

during the past
major function of the

Committee for

the

benefit

"Factory

ment

output

still

are

the issuer

the

be understood;

can

(4)

the facility with which the rights
of holders of the securities to be

registered

be understood;; (5)
interest; 'and (6) the
protection of investors.

the

can

public

I shall not bore you

nical

dissertation

sions

the

with

provi¬
explain or

Commission's

particular

tech¬

these

attempt

nor

defend
in

cases

actions

meeting

legitimate business deadlines with>
jn

framework of the statutory

standards.

Suffice it to say that
procedure established in 1933

was

of the staff, inade¬

situation

con¬

Bane,

one

This

food

Baldwin

each
each, registration
registration

til the recent spurt in food
prices
will be at least partially reversed.

The

effort,

makeshift

financing of small business.
ward

days

work by the Federal Trade
Commission, received from his

Some few
great deal of

this

steadying in demand and flexible change in

price and cost. Also

our

who had been placed in charge of

each

current

became el-

85 such docu-

were

present Agency.

Lessening in Downward
Rate of Decline

New York Federal Reserve Bank observes

lor public
period of 20 days,

Commission, the predecessor of

take into account iit sq dohvg: (1)
adequacy of the. information
respecting the issuer theretofore

the

Commission's

ments filed with the Federal Trade

Co., Inc.,

San Antonio.

Central Bank Detects

the

•under the Act after it

•■•U;

Allison

discretionary authority. It stated,
briefly, that the Commission must

available

fective, there

Allison,

available;- (2) the facility Avith
which the nature of the securities
at the end of which time the issuer, to; be offered can be
understood;
or its underwriters would be free
(3) the1! facility with which the
to distribute the security. The first
relationship of the securities to be
day on which registration state- offered to the capital structure of
merits

€o.r; Ihc;,

Dallas.

C.
the

Business Conditions."

the

inspection for

centrated

ported

-,
J
7,"fi'fc.

and

later and after

action
State

•;

Co.,'Houston/

Taylor Almon,

Investment Bankers As¬

that nothiiig came to its attention
of a nature which demanded the
of

files

Houston.

the

Pollok,

fur¬

each member by W.

amendment

Moroney, Bejssner & Co:,

could
years.

was

Henry M. Beissner,

would

present

history, clearly showed the intent
the
Congress, to : have
been
that the,run-of-the-mine registralion/statement would lie without

Eddleman-Pollok

sociation, with his letter of March

April

The Committee regrets to report

3%.

Jr.*

National

systems by

Local Activities During Current

Jackson,

financing, although it
will undoubtedly play an impor¬
tant part in assisting the financ¬
ing of the construction of both
sewer

complete analysis .of

very

type

smaller communities in the future.

which

Lewis

inter¬

Houston.

Proposed Legislation
Regarding Acceleration Policies

banking industry.

Underwood, Neuhaus & Co.,:lnc;

other

this .legislation;,
effectsoh

Milton R. Underwood,

favorable

effect of this legislation

little during the current year due
to the decline in the demand for

waterworks and

from

equally

maturities

nished

allowing all such Districts to in¬
clude sanitary sewer systems in
this
financing.
The Committee
wishes to express its appreciation
to the entire membership for the
support given this Bill, which re¬
sulted in its final passage.
The
amendment has accomplished

this

funds

"on

able

not

are

disastrous

„

and

they

tire

terms and conditions" at

Municipal Securities Com¬
mittee requesied the support of
the
membership
of
the
Texas
Group in securing the passage of
nual

sources

follows:

The

Senate

Slates

have

Respectfully submitted, j. '■*.;

aggre¬

Continued from page

Eugene D. Vinyard, Chairman,
Central Investment Company of
Texas, Dallas.
/

Federal
municipali¬
ties for the construction of public

Loans

$2,000,000,000

further

necessary' in this
The Committee feels that

investment

Home

and

therefore,

not

passage

could

Agency) to authorize the

administrator

gate

the

and

are

report.

Report by Municipal Securities Committee of Texas Group of
Investment Bankers Association tells of opposition to certain
legislation introduced in Congress.
curities

1958,

details

1958

Thursday, May 15,

the
has

since

become

the

/regular
practice of the Commission and I
think

that the

industry generally
the experience
over 25 years under the Act has
been reasonably satisfactory. The
result has been, of course, that
practically every
prospectus
is
amended in some respects after
issuance of the deficiency letter,'
but that acceleration is granted
will

that

agree

thereafter

almost

unless

course

discloses

ment

the

matter

price

further

some

amendrea-

for

question. I might point
out, in connection with tnis last
proviso,
that
the
Commission
usually first learns the personnel
son

of the underwriting

group at the'
price amendment is filed,
is at that point first

time the
and

hence

able

conclude

whether

the

members of the syndicate, if permitted to participate in the un-

derwriting, would
ance

compli-

with the so-called net capital

rulc-

Council.

The

steadying

demand

not

Cooperation

With

National

Municipal Securities Committee
Investment Bankers Association

Of America

been
sufficiently strong or
widespread, however, to stave off

backlogs
the

Investment;
of

America

tion

certain

duced

Association

mustering opposi¬
legislation intro¬

the

Congress

the

shrinking, with
Henry C. Alexander, Chairman
incoming business of J. P.
Morgan'& Co." Incorpo-

The Committee has opposed and

requested

the

member

Texas

8381,

Group to
Section 3 of

firms

made

unless

(A) it is sold or otherwise
disposed of within 30 days after
the date of its
ized

basis.

acquisition by the
(B) the amount real¬

higher
The

sched¬

year.

orders

is
dating back to
result, layoffs of

than

IBA

its

adjusted

recommended

the

and

that

some

Bill.

been

of these
The

ually

the

sold

effective

date after the final

the

not

bonds

any

This

profit)
date

advised

hearings

the

adoption

Committee

Committee,

rapid rate, and unem¬
in industrial areas has
increased further.

ployment

Two

the

has

outcome

to this time.

both

public

would

they had been originally filed as part of the registrafcion statement
to
permit the
filing of the price amendment at
as

time

"Whether

the

Facility

loan

the
Administra¬

1940

depends in considerable de¬
upon
whether the current

come

steadying of demand is' firmly
enough based to withstand the
continued
downward
pressures
,

declining

employment and
incomes
in
some
major indus¬
tries," according to the article.
Paralleling this question is an¬

tinues.

Will price and cost rigidi¬
ties prevent the flexible
change
which a market
economy must
have to provide conditions that
will

engender

resumption
sustained overall expansion?
There

are

some

grounds

seems

only

per-

effective-

registration statement

matter of time

un¬

Accelerates

Because

in
an

position to force
underwriter

Ply with the Commission

to
s

corn-

wishes,,

though they may have noth-r
to do with the element of
disclosure. The proponents themselves, admit that they have no
criticism of the present adminiseven

tration

to.

of the statute,

Jarful

sioners

use

but

claim

future Commis-

the threat of this

un-

questionably

potent weapon to
unreasonable
conditions

impose
upon the industry.

Statute

1957,

response

that, in
suggestions

statutory

inflexibility of that the Bar was unhappy at not
procedure and the shaving any definite guide as to
prohibition against the** Commission policy as to grounds

initiation

the

Henry

rated, will be
luncheon

New

York

May

16,

The

Bond

held

the

Club

Friday,
Club,

Bankers

announced.

and

the

offering

underwriters

least 20 days

ing,

the

"consent"

issuers

guest-speaker at

Alexander

Sumner B. Emerson, Morgan Stan¬
ley & Co., Bond Club President,

the

until

after the initial fil-

industry

Commission

Congress

recommended,
advocated

adopted

ment to the statute in

and

amend-

1940 which

authorized the Commission to "ac-

for

denying

adopted

acceleration

note

Rule

460

iu which were set forth some of
the grounds not theretofore^ for-

mally published though used ad-

ministratively upon which it

was

decision to
After hearing,

proposed to base
deny acceleration.

of the proposals which the
Commission decided really had

celerate," that is, to permit the
registration statements to become

Baker

office

925

Fifteenth

Street, under the managership of
Robert C. Morris.

little to do with disclosure prob-

the

D. C.—Amott,
Co., Inc., has opened a

some

effective in less than 20 days alter

Amott, Baker Branch
WASHINGTON,
branch

for

than food have already been
edg¬
ing lower for several months, and
it

proposed amendment that under
the present procedure the Com

The fact of the matter is

activity does actually

from

immediate

of the

the

end

thereafter, which would allow the
offering to be commenced at once,

leveling-off in busi¬

soon

gree

almost

has given
suggesting the

for

ness

individ¬

facility

(administered

Community

ad¬

"consent" to the filing of amend-

ness

Essentials

collectively, feels that hoping that consumer
willingness
it has been of some assistance
and ability to buy
may soon be
in opposing S. 3497 which was
bolstered by a leveling-off and ul¬
introduced in the Senate of the
timately a reduction in the cost
United
States
on
March
17
by of living. Retail prices of manu¬
Senator Fulbright. S. 3497 would
factured
consumer
goods other
expand

that

original 20-c|ay period; and to

and

program

underwriters

ments

very

hearings on Feb. 26 that the
30-day holding period be elimi¬
nated
(so that dealers will not other of increasingly critical im¬
be required to amortize premium portance
as
the
recession
con¬
on

vised

routine

Future

Association

reason

mission

mit

Bar

its

issuer

matter

industrial workers have continued

which,

on Jan. 29,
require dealers to amortize
premium on all tax exempt bonds

and

margin

delivery

oppose

would

dealer

considerable

close the gaps in work
that develop as

last

it passed the House

The
as

technical difficulties the Commis¬
as

Fears

sion

United States.

has

volume

failing by

To Hear Alexander

still

are

ules

Bankers

New York Bond Glub

further production cuts.
In mos,t
capital
goods
industries
order

The most important function of
the Committee this year has been
to assist the National Committee

20-day period following the filing
of the statement or any amendmerit. Nevertheless, despite many

has

Answers Claim Based

lems were abandoned, and the
balance adopted. The inference is
clear that, if the papers are others
wise in order and unless legal
ingenuity has thought up some
new gadget, acceleration will not
be denied if these rules are satisfied. As a matter of fact, the note
to Rule 460, if any intelligent
analysis is made of it, merely details some particular facets of the
general problem of effective dis-

original, filing.
Today
the
regularly and roufinely uses both the "acceleration"
Commission

and "consent"
to
on

J. J. Oertle
ST.

Oertle

LOUIS,
is

business

—

conducting
from

offices

Jaclyn

with

securities
at

7713.-A

Brookline Terrace. Mr. Oertle

formerly
Co., Inc.

the time you

Opens Office
Mo.

procedures in order
permit you to go to the market
exactly the day and precisely

was

Lyman •&

choose. But in granting this additional authority in
1940, the Congress contemplated
that it would be used sparingly
and to this end the Congress established
tive

the

restrictions

mission's

statute
upon

exercise

six

the
this

posiComnew

closure.
your

I would

time

here

not
to

impose

analyze

this

Volume 187

Number 5742

The Commercial and Financial Chronicle

(2191)
.y

rule in

adopted

order to make this point
emphatic, but I think that
if you will reread
it with this
thought in mind, you will see that

corporation

which

honest
find

and

frank

accused

••

which

within

law

which

upon

founded

our

act in.
ferent ways in

ment indicates that the Congress
intended that, apart from compli¬
with the disclosure concepts

ance

strictly speaking, the Commission
to be limited in the exercise

was

of this discretion

by the statutory

choice of

between

may

depositing sayings in a bank at 3V&%
interest. Believes inflation is
slowly coming and, thus, does
;'
not advise leaving funds in a bank account too long.

land adjoining what you now own.

there is much talk about
is
inflation coming. If Congress
would
the

Commission
be

course

budget.

cannot ignore this mandate of
the Congress and we must give
these words significant force in

deliberations.

clear

is perfectly

statute

the

that

denial

the

ternative to

the

eration is the issuance of

al¬

accel¬

stop-

Best Interest

stop-order, however,
must be based upon failure of the
issuer to comply with the dis¬
closure

provisions of the statute.

various

that

consider

would

described

matters

the

Rule

460

the

aspects

are

of
the

public attention rather than that
we
institute formal and public
stop-order proceedings.
Need for Discretionary

Sees

Powers

grave

Mn —Prf^ontt

ComDanv

branch office in the

you

Kansas Power & Light Building,
Atchison, Kansas, under the man-

valuable.

no* :firs* see* There is agement of Louis D. Brockett,
land

teuch

reader will

"outdoors"
see anyone

nopoly of it.
inflation

In short,

slowly

and
get
I

no and in the Citizens National Bank
Building, Independence, Kansas,

a mo-

believe under the

coming

Declines in Various -Well-Known Stocks 1951-1957
High

Date

Low

Date

Decline

83%

10-'51

17%

12-'57

79%

50%

3-'56
6-'51

231/4

12-'57

12-'51

35%

l-'52

12-'57

25%

2-'53

l-'57

44%
73%

6-'55
2-'51

51/4
141/2

12-'57

33%

12-'57

7-'55

18%

10-'57

Commercial Solvents—
American

crease

de¬

outlays.

However,
all

the

Congressmen

are

started in 1951.

But

happened

doubt of the wis¬

direction of Frank M.

it Ilouck.

Roger W. Babson

tunities to enforce its views.
is

course,

°Pen

CITY

Snider

would not buy land anywhere that

Congoleum-Nairn

for
When one disagrees with the re-election this year, there is little
expressed policy of an adminis¬ chance of their making these rec¬
trative
agency,
and
especially ommended savings.
when one has recently lost a case,
Stocks As a Hedge
there is a tendency to conclude
The
that
the
discretion
general
feeling
is
that
given
the
agency ought to be circumscribed stocks are the best hedge against
by more specific definitions or by inflation. Let us look at the rec¬
This
talk
about
inflation
depriving it of procedural oppor¬ ord:
there

make

Here is what has

eight stocks since
But many readers will say
dom of such a reaction. The result
the disclosure standards of
that these are hand picked. OK,
Apt. We submit that it is far is often to throw the baby out
but let me follow this 1951-1957
better from your own point of with the bath. If we are deprived
list with a more recent one cover¬
view that we deny acceleration of discretion, we cannot adjust to
of
a
deserving case ing 12 other popular stocks with
in an appropriate case, that is, the needs
an average 1957
drop of 65-70%.
that we resort to an administra¬ however worthy it may be.
I am convinced that the best In fact, the entire stock market
tive action which attracts little
note

and

KANSAS

WHeht

order. Such

watch

can

New Jersey Zinc
Masonite Corporation

ac¬

land purinflation hedge is

spending „to
offset any in¬

of Securities

Industry

you

possible

unnecessary
and
wasteful

'v"'

■/

This

all

for

save

enough

fense

tye

our

inappropriate

need of

could

forced

increasing the

choice, we can¬
not thus adapt the remedy to the
facts, and the registrants them¬

regard to

would'

there

denied this

tion.

re com-

chases

then<HocTver yOU

dif¬

a given situation,;
by denying acceleration, br
by stop-order or by criminal ref¬
erence we may choose that - course'
which is most appropriate to that
particular set of* facts. If we are

...

In¬

Continent

Where

we are

the public interest
protection of investors."

Mid

Prescott, Wright Branches

best

various

selves must suffer if

the

Illinois

vestment Co., 676 St. Clair Street,

etc.,

are

injunction that it shall have "due
and

with

Because of the increased government expenditures for
neni
iqr missiles,

either

to be

(Special, to The Financial Chronicle)

CHICAGO, 111.—Jack R. Cole ia

present, recommends

and

of several

one

With Illinois Mid Continent

Mr.Babsqn discusses hedges against inflation and, for the

remedy,

to enforce the law.

ment in

a
discretionary au¬
thority to "accelerate" the effec¬
tiveness of the registration state¬

act,
policies

always has been; but it is nothing
panicky about.

to get

By ROGER W. BABSON

our powers

our

given

are

legislative history of the amend¬
Commission

re¬

by which I mean the choice which
we

means

1940 which vested in the

decisions and.

our

Inflation Hedges Today

an¬

change and as we
in wisdom and experience.
important part of the basic

grow

however, the Commission is firm¬
ly convinced that those who pro¬
pose this statutory change are do¬
ing you a distinct disservice. The

and

circumstances

Aside from these considerations,

statute

restrict the exercise of
as

•

policies
the

with

adopting and changing these rules
and policies either to expand or

matters covered by this rule.

I. Warns of Alternative Left Open

the

The Statutes give us room
the exercise of discretion in

for

the

any

of the

nounced in

be perfectly
would ; never

and

accordance

leases.

position where it

directives

underwriter

anxious

itself

could

rules

our

then.

_____

Motors

Texas Gulf

Sulphur

United Fruit

—_

United Air Lines.

Declines in Other Stocks During 1957 Only
'

High

Date

Low

Date

Decline

14%
13%
Chi. & North Western Ry.__ 34%

1- 7

12- 30

56%

12-30
12- 30
12- 18

1- 7

6%
4%
11
6%

7- 11

Admiral

Corporation.
Briggs Manufacturing.

Del. & Lackawanna RR
Jefferson

Lake

25%

Sulphur

1-14
4- 29

47%
Missouri-Kansas-Texas RR._ 12%
Oliver Corporation
13%

1- 8

Studebaker-Packard

76
62

1-11

11- 19
10- 22
12- 30

4-11

12-30

United

1-9

12-27

U. S.

1- 7

10- 22
12-20

12-23

—

8*/4

Dye & Chemical
9%
Hoffman Machinery— 17%

Van Norman Industries—___

13%

1-9

5%
4%

White Sewing Machine——_

13%

1-10

industry declined about 20%. Surely, none
preserving the discretionary of, the stocks helow would have
been good hedges against infla¬
powers vested in the Commission
within
broad
statutory
areas tion.
interests of the securities

ww&m

lie in

rather

than

lock

into

me¬

Land As a Hedge
this
A careful study of different
fundamental and practical
standpoint, the proposed bill which forms of investment teaches me
I have described would be a step that raw land on dry ground 10
miles Or less from a small city or
in the wrong direction.
- - *

,1 chanical

procedures.

From

In the very nature of an admin¬

istrative agency, it must be given

broad

discretionary powers, and
must provide a wide
which the agency

statute

the

administer

accordance

with statutory standards. I do not
believe that any of you has any

cloubt but that the securities

mar¬

Bullock Flags Flying
On Pacific Coast

ket will be subject to regulation

SAN

FRANCISCO,

Calif.

—

as we have such an insti¬
tution in operation in this country.

the San Francisco office of Calvin

In fact many of you have explicitly

resident manager, and Mrs.

long

Ltd.,

Robert

Hurt,
Flor¬
dealer
a flag

ence

to the free and easy pre-Securities

service

Act days if you could.
securities market and

for each of the states in their ter¬

work of the statutes.

I submit that

Wadell, of the
department, have

the

of California;
the seal of Oregon when it joined
the
Union
in
1859; Washington
ritory:

"bear"

State which

1889

came

into the

Union

with the portrait of
Washington displayed;
flag of blue with the

and

George
Nevada's

Born."

"Battle

words

large

America}! flag in
is

in just such a manner, and to the
extent that I can and so long as

also displayed is a small Canadian

I ean, I will see to it that you will
continue to enjoy such treatment.
But

utes

cannot

act if the stat¬

Mr.

a floor standard
Hurt's desk, and

flag and statuette of a Royal Ca¬
nadian
Mounted
Policeman
in
honor

Calvin

Bullock

Ltd.

Canada.

changed so as to deprive
us of authority to be flexible and
intelligent.
I

behind

are

happen to be

fession.
four

are

lawyer by

two

Commissioners

many

members of

are as

devoted

the

and

our

With Jensen & Stromer
MARYSVILLE,

are

staff.

Neel

and

Joe

Calif.—Esta

Waugh,

joined
the
staff of
Stromer, 426 East Fifth Street.

is any American

J. Barth Branch
MENLO

PARK, Calif.—J. Barth
& Co. have opened a branch office
aware of, but ignore as
at 777 Santa Cruz Avenue, under
of comment, the cynical remark of
the management of John T. Price
an early critic that government is
actually by lawyers and not men. and James E. Ryan. Both were
formerly partners in Price, Ryan
We at the
and not

men.

I may say

Securities

change

Commission

that I am
unworthy

and

believe

Ex¬

Co.

administer the statutes in accord¬
ance

Flanigan Director

with the law and not by per¬

sonal whim. All the law, however,
is:-not to be found in the Acts

of Congress, though all law must
be consistent therewith. MUch of
the law which guides us is found

(Special to The Financial Chronicle)

Peter

Flanigan, Vice-Presi¬
Read & Co., New
City, has been elected a di¬

dent of Dillon
York

rector of United Gas

Corporation.

real

land

security.
This may be
important than profit. Such
small

town

limit

farms

just qutside

should

excellent

hedges.
If

you

land

such

want

not

bothered with the

p* '
to

taxes and

which

care

do not
to hold
speculation, your broker will
name some land companies whose
you

expect to occupy but

are

for

stocks

change.

worth

than

listed

are

fact,

more as

railroads.

stock

HIGHWAYS FROM A HOPPER. Up to 1800 baiches of paving-concrete mix a day...
and every

ex¬

batch automatically accurate down to a fraction of a percent! That's the
work on the North Illinois Toll Highway.,

output of this Blaw-Knox batching plant, at

railroads
land companies
some

Some Canadian

World's biggest road

mining companies with valuable
underground

deposits of ore
should also be good hedges against
inflation if bought at low depreci¬
ated
prices.
They are off now
about 50% — suffering from the
big boom of a few years ago.
in

Bank

Personally, I like best now put¬
ting my savings in the bank at
31/2% interest.
Of course, your
broker

may

inflation.

are

tell
poor

you

bank
against

such

hedges

It is true that the pur¬

chasing power of a bank account
food, clothing, and shelter will
decline as the cost of living in¬

for

I would not
funds in a bank
account too long. But such a loss
of interest or deeline in purchas¬
creases.

Therefore,

want to leave my

ing power, over a few years, is
not notable compared with the
possible decline in stock prices
during said period.
When

the best
grove I
always say: "The footprints of the
owner." Hence, I believe that the
fertilizer

people ask
for

program

building

under way—Blaw-Knox

helps turn It into a production line
Road builders

are

tackling the

makers of road paving

ing

world's biggest construction
the

deposits

lawyer to the principle that gov¬
ernment is and must be by laws

secure

then, with roads, elec¬
tricity, water, and sewage, it gives

Cash

Jr., have
Jensen
&

record

ever, even

(Special to The Financial Chronicle)

pro¬

other

best

hedge.

such
at the right price, it should be
purchased before it is thought of
for lots for development.
How¬

are

the Securities and Exchange Com¬

mission has administered the laws

the

inflation

one

Bullock,

stated that you would not return

The whole
industry is
geared to these statutes at the
present time. ..What you should
want, and what I believe most of
you do want, is not freedom from
regulation but intelligent and flex¬
ible regulation within the frame¬

has

town

within

range
can

very

orange

equipment.

project . . . 41,000 miles of
superhighways with added thou¬
sands of miles of state and local

a vast highway sys¬
typical instance of
Blaw-Knox helping industry to

roads. It will carry one-fifth of

tackle the biggest, toughest jobs.

nation's

the

motorists

traffic,
travel

enable
coast-to-

coast without passing a

single

Perhaps
the

help you tackle
Whether your
builds roads, rolls or

we can

tough

company

ones.

fabricates metals

intersection.

Here too, Blaw-Knox pioneers
with

Building

tem

integrated high capacity

deals

with

chemicals, processing, or
communications—our
services

equipment to bring production

and

line

provide precisely what you need.
To find out more about us, just

The

techniques to road paving.
future

looks

smooth

for

highway travel and for BlawKnox, one of the world's lead¬

products for industry may

write for

our

brochure, "This Is

Blaw-Knox."

BLAW-KNOX COMPANY
1£31

Blaw-Knox Building • 300 Sixth Avenue
Pittsburgh 22,

Pennsylvania

The Commercial and Financial Chronicle

Thursday, May 15, 1958

(2192)

get into high gear at a

Foreign Aid Critic Blasts "Superspenders"

of the

private economy.
Throughout the present reces¬
sionary
period there has
been

Eugene W. Castle castigates White House and Senate "Superspenders"—and citizens seeking something for nothing—for
breeding inflation which he depicts as a greater peril than
Sputnik in the hands of the Russians.
In

before

address

the

Los

Angeles Breakfast Club, April 23,
Eugene
W. Castle recalled the
warning he had made before the

the

and

House

are

went

fortunately,

ago about the
deadly
peril

few

tco

"un¬

that,

say

are

threatening

standing solidly behind the minor¬
ity of both parties in botn Houses
of the Congress who are vigorous¬

country.

our

who

Castle

Mr.

pointed

which

any

great
to all

peril

Americans
the

Bankrupt nations and peoples are

Eugene

Atom

Bomb

Castle

"Solvency always

'Sputnik' and I will add
danger last August was
from creeping inflation.
Today,
our superspenders in
Washington
may cause galloping inflation and
bread
to cost
$1
a
loaf much
Bomb to

the

than most of us realize or

sooner

"I also wish to

York

repeat," the New

City author and industrial-

al¬

and

was

done

hastily
We

interest.

the

and

advantages

conse¬

full

people like
back

some

simple dramatic ac¬

which

tion

immediately

can

put

the road to expansion.

Frequently, those who urge it
pay
little attention to the fact
that a major change in tax rates,
affecting every sector of the econ¬
omy and the fiscal position of the
government for years to come,
must be arrived at only after the

fidence.

must

examined in

position of the

government, and in terms of the
people. We deal with
world where psychology plays

from first page

Market

the

things that we are
trying to do wth respect to both
revenues
and
expenditures is to
keep our programs in perspective
—to try to look at budget policy
in terms of its objectives through
good and bad times alike. Budget
policy is made in the present, but
lit must, of necessity look far
ahead

months

—

ahead.

the

best

and

even

predictions will coincide

precisely with events
fold.

years

moving

swiftly

our

it is unlikely that even

economy,

The

very

they

un¬

the

success

cutting government expenditures,
to

looks

reduction

Tax

that we must pay ion the current decline and to
back-breaking promote well-justified public con¬

Federal taxes."

One

Administration

lor

example, has led most people
that the budget as the
present Administration found it
—the planned program for the fis¬
to

forget

cal year
1954—contemplated ex¬
penditures of $78 billion.
The
present Administration succeeded

cutting expenditures back be¬

low

$65 billion, thus permitting

tax reduction

amounting to a $7y2
billion cut in 1954 and working
toward
a
budget balance which
achieved

was

both

sion
in

the

jobs over
country

free

present busi¬
the provi¬

and

are

long run
primarily

terest

particularly

rates,

Under

these

circum¬

stances,

part as well as statistical quan¬
tities. We must ask what would

during this

action

monetary
six

months

has

been

last
ef¬

very

the

business—of

available

in the rest of the world want and

which I know
you are thoroughly familiar.
The government has stepped up
greatly the rate of defense con¬
tract placements, with $5J/2
bil¬

lion

responsibility
of American
employers and em¬
ployees—working together, with
confidence, to produce the goods
and sell the products which the
American people and the people
price they

can

and will

pay

the supply of

These

credit.

contracts

were

let

cut

taxes?

this

question, we
fairly close look at
the specific characteristics of con¬
answer

incomes

sumer

and

consumer

When

which

Disposable Income and
Expenditures
this, the first fact

stands

out

that

aggre¬

gate spendable funds in the hands
of
consumers
have
remained

income

personal

high;

the

according to the
last report, was only 1.7% lower
than the all-time peak. Next, we
United

States,

help do this job, January-June, 1958, than in Julythe job by it¬ December, 1957. Of course, there
find that consumer expenditures
only be com¬ is a lag between contract-letting
for services were at a record high
budget-spending,
but
the
pleted when all Americans, taking and
a
calm reading of the economic stimulus to the contractors is al¬ during the first quarter of this
year, and expenditures for non¬
signs, move forward with con¬ ready being felt.
durable goods were almost as well
In addition, the military is do¬
fidence and strength to the new
maintained—less than 1% below
economic achievements which all ing
everything possible to
see
the record level of the third quar¬
of us have reason to expect in the that more procurement is placed
ter of 1957. First quarter expend¬
months and years ahead.
through
small
business
and
itures for durable goods, on the
While the major decisions lead¬ through
firms
in
areas
where
other hand, were 12% below their
ing to renewed growth rest with there is an adequate supply of
peak of a year ago.
individuals and groups in our type available labor.
Clearly, the durable goods area
Civil works projects are being
of economic system, the govern¬
of
the
economy
has
been
the
ment, as you know, has been en¬ accelerated and many programs in
hardest hit.
Looked
at realisti¬
trusted with important responsi¬ the January budget—such as ur¬
the
tax
proposals
bilities for assisting in the main¬ ban renewal projects and highway cally—would
most commonly suggested have a
tenance of employment activity at programs—are
now
expanding
A total of about stimulating effect where such an
high levels. The Employment Act significantly.
effect is most needed, in the du¬
of 1946 reenforces these responsi¬ $2V2 billion more is to be spent
rable goods area? The very fact
on
bilities.
Let me
summarize for
highways in 1958 and
1959
that the present downturn in busi¬
under present plans than would
you some of the significant steps
ness
developed at a time when
which
the
Federal
Government have been spent at the 1957 rate.
personal income was at the high¬
has
already
taken
during
the
est level in history would seem to
Other Anti-Recession Proposals
present recession to help
Washington
it

but

can

cannot

The

self.

task

will

get the

back

economy

upgrade.

Residential construction, as you
know, is now being stimulated
by new regulations liberalizing

downpayments and other features
of

FHA

should

loans.

This

begin

to show up in in¬
housing starts later
this spring. In addition, more

creased
on

and

new

funds have been released for mil¬

itary housing and other building
under
Federally-sponsored pro¬
grams,

F.N MA

and

thority
been

low

purchase

au¬

homes

has

cost

further

not

encouraging
only

private

active
right now. Fur¬
thermore, the Administration has
put

forward

help

factor

volume of sorely needed state and
local building
projects—schools,

only

payments

sound

tend¬

extended

benefit

also

basis.

other needed

pro¬

being urged which will,

grams

secondary

result,

help

stimu¬
late activity.
They include such
things as additional expenditures
on
water resources projects, post
new programs

to aid small

business and to help meet the fi¬
nancial problems of the railroads.
The

Administration

err^phasis
short

can

been the dramatic increase in the

the

type

availability of credit accompanied

will

take

by an unprecedented drop in in-.

existing

get

and

range

made

public

many

under

placing

expend¬
the

over

the acceleration

programs

desirable

itures that

highways, hospitals, public build¬
ings, utility services, etc. — has

include

unemployment
are

proposals

recessionary

These

—but

There

con¬

struction but also the tremendous

other

counter

encies.

offices,

significantly enlarged.

affecting

All of these programs are

Federal programs

and not
works

months

way

and

will

that
years

only

indicate that many considerations
than

other

able funds
In

one

grows

are

Our
a

volume

spend¬

involved.

sense,

out of

living.
above

the

dilemma

our

high standard of
people are so far

our

subsistence

level

that

ing operations, and. second, by
reducing
the
number
of
times
which the Treasury must go to the
market. Treasury financing opera¬
tions,
as
you
know,
not
only
compete for funds with corporate
and municipal financing, but they
reduce

the

which

the

period of time during
Federal

has

Reserve

relative freedom to operate. When

single

borrower

one-third

ernment

does

accounts

entire

the

the country—as

for
of

debt

the Federal Gov¬

today

—

obvious fact that such

borrower

must compete if he is to meet his
borrowing requirements. The

Treasury competes when
tight. It competes when

question isn't whether
or not; it is, rather,

The

easy.

compete

what form
\

is
is

money
money

With

competing takes.

our

to the number

respect

times the Treasury must enter
market

during

Federal

the
given period, the

the

and

Reserve

proportion of their ex¬
are postponable.
The
a way of shifting its
demands
for
various
types
of
goods and services.
In our free

society, it is difficult to predict
whether, by changing tax policy,
we can
measurably rechannel the
buying demands of the public.
The question of a tax cut, you
may be assured, is under continu¬
ous study
by the Administration.
The

Administration

has

stated,

raised

Soviet

scientific

their

with

vances—

These

speed-up

the

debt

months ahead. This will require a
new review of debt limit require¬
before

ments

the

adjournment of

Congress.
The

limit

debt

time

standsl

even

that

billion

June 30, 1959,

present

billion,

back

law.

but
$275

according
the

When

Secretary asked the Congress for
an

increase

the

winter, he did
the

for

need

tions,

months

ury

of
believe

number
We

for

hope

can

goals.

future

our

these

attain

;

have issued $6

20-year and

billion

do this.

over

lengthening, we can never lose
sight of our objective. In addition
all the

other

in the short-term
that

placed

at all times

area

shbrt-

sizable volume of

could

loans

term

require
the

employ this

successfully

special

should
in

allow¬

considerations

monetary
policy
and
prudent
management of the public's funds,
we
must leave sufficient leeway

unwise

20-year bonds to
as it may be
at

Difficult

stances

billion

bonds and $33

times to pursue our goal of debt-

]last

cover

management, and

effort.
of

basis of

limit

the

adequate cash
Treasury opera¬
flexibility in handling

balances to

debt

it.

circum¬
would be
to fully

extreme

source

of funds under

less urgent conditions.
For

fore,

all of

these reasons,

there¬

in the debt
lengthening
when possible is

improvement
through

contingencies - which
might arise. Any new review must

structure

incorporate

important goal of Treasury
debt management. But when are
such actions possible and desir¬

for

ance

tions

the

well

considera¬

same

the

prospect

increased deficits.
We will

the

continue

Treasury

our

efforts in

improve

the

structure of the public debt. It is
an

important goal and

that

essential

monetary policy

believe

adjunct to

well

being

maturities

debt
an

able?

This

the

nub

the

question.
Classical View of Long-Terms

Now,
according
to
classical
theory, the Treasury should go at
the

problem by selling long-term

securities when

debt management must contribute

monetary policy is
thereby
helping
to
withdraw funds from the private

capital markets when demands for

sound fiscal

the

financial

economy,

must

policy in itself. Good

and

endeavor

soundness

this
to

policy

the

such

funds

with

sive.

Likewise,

correlate

greatest

rather

than

that the
trate

which

ties

contrary to appropriate

one

cross

currents

would

and

actions in that field.

run

restrictive,

that it

means

in the best interests of the Nation,

only after_prior consultation

the

$280

will

the

practicable,

best

the

market.

the

domestic

$281
billion in
$275 billion at
the present time. The debt will
now begin to increase again as our
budget
deficits
mount
in
the
1955

become

decision

the

cutting

from

December

setting

has

trips

situation,

extent

factors

of needed

action

what

toward

While
assistance
to
monetary
plus policy is a major responsibility of
debt management, lengthening the
programs, are expected to carry debt is also an
important long-run
Federal Government expenditures
policy .goal from the standpoint
back to at least $78 billion in the
of the Treasury alone. First of all,
next fiscal year, with a substan¬
it is necessary to work continually
tially larger deficit than the pro¬ at
lengthening the debt in order
spective $3 billion deficit for fiscal to
keep the total from shortening
1958.
as a result of the mere passage of
Higher Debt Limitations
time. In the last five years, the
Our setting in the management Treasury has managed to keep the
of the public debt, therefore, is length of the marketable debt at
changing abruptly. Budget sur¬ about five years' average dura¬
pluses made it possible to reduce tion. This has taken unremitting

international

the

monetary

only when

ad¬

military

new

however, that it will recommend

clearly evident

back

maturities, except for seasonal
borrowing, are probably February,
curred. And it has been accom¬
May,
August,
and
November.
panied by a new development, the Whatever our
intentions, it will
increased threat to our security
be many years before the Treas¬

substantial

penditures
public has

in a
deficit situation similar to the one

the

Sees High

would

potentials.

spending during recent months.

de¬

are

with

velopments

there
To

need to take

fective in adding to

ways—first,

The leveling in business has oc¬

Reserve

two

which-had been corrected earlier.

people do with the funds released

mar¬

Federal

securities.

ket

by reducing the volume of refund¬

revenues.

our

best

purpose

Treasury both recognize that a
major Treasury offering is an im¬
But
at
about
the
time
that
portant
event
in
the
financial
budget
balance
occurred,
both world; the market must prepare
expenditures and revenues began for it ahead of
time, and it must
to- rise again. It was an uneasy
have
a
sufficient
period after¬
balance. It was
apparent, while wards for thorough absorption of
we were still in a boom
situation, the new issue. This necessarily
that if any leveling of business
limits
the period
during which
occurred, the anticipated budget the
Federal
Reserve
can
use
surplus would not be large enough
monetary policy with greatest ef¬
to cushion the probable decline in
fectiveness. It is our aim to work
1957.

1956 and

years

improvement in
ness
conditions

Debt management can serve this

the. fiscal

attitudes of

Treasury Financing and the
Long-Term Bond Market

Reducing Refunding and Trips to

■

ponderables.

with

bill

parties in

Congress.

Eisenhower

will be our strongest weapon most careful examination of all
the factors involved. Tax revision
against Communism.
"Tragically, our political rulers can take many forms and can
It
in Washington fail to remember have many different effects.
must be considered in the context
what the history books prove.
of the measures which have al¬
"Unfortunately, too, many of
our citizens
ignore this and con¬ ready been adopted or are in the
tinue to seek something for noth¬ process of being adopted to cush¬
the

with the leaders of both

quences—and there are many im¬

terms of the fiscal

Continued

than the Na¬
must weigh

motives

other

with

ways

ing forgetting

to admit."

care

thrive and conquer.

the

hands of the enemy. Change Atom
that

which the Reds

the red meat upon

not

tional
the

thinking of all of
something which

and

us.

considered

the

have

must

judgment

save

Today, infla¬
tion is

economy

our

pretense of pre¬

false

"Giving ourselves away will not
us. or
anyone else from the
menace
of
world
Communism.

August I said,

the

serving the peace of the world.

"last

that

wreck

would

under

out

reduction.

tax

ly trying to protect us from those

inflation

for providing further
our economy through
This is a proposal

stimulus to

should

the United States."

Angeles group
eight months

Congress,

the

know,

you

the
Senate of

inflation

fires of

the

and

the Adminis¬

pressure

tration

"that

said,

White

Los

same

strong

inflation is no
longer a partisan political matter.
The principal forces still feeding
ist

time when
needs

they will compete with the

the

exces¬

theory

holds

Treasury should concen¬

selling short-term securi¬

when the
of

considered

are

ease,

monetary policy is
thus

strengthening

the factors in the economy

making

Volume

187

Number

5742

The Commercial and Financial Chronicle

(2193)
for

greater

liquidity and readier
and use of credit.

availability
But

serious

actual

fact,

difficulties

there
the

are

way

putting these fine principles into
effect.

investment
firm

the

guide
We

that

specific

many

life

real
sell

areas

theory

unreliable

available

money

should

also

remembered,
that, quite apart from
of long-term bonds, the

the

sale

Treasury

selling

ties

achieve considerable

can

success-

it.

debt

lengthening

intermediate-term

commercial

securi-

banks

which
all

savers

accumu¬

have financed and

you
of

sorts

durable

health

time.

the

economy

goods which
ac¬

By ARTHUR B. WALLACE

quired.
Now

people

some

ask you,

may

they have asked me—"Why is
government promoting Sav¬
ings Bohd sales at this particular

.
..

ordinate

amount

debt at the
rates

that

long-term

relatively high interest
prevail in a period of

firm credit restraint.

°/ nonbank sources of funds
S^2,V.
neglected entirely,
J!h.es^ are '®?m?
thoughts

the

time?

view

business decline,

haps

better

the

current

wouldn't it per¬

encourage

our

citizens to buy things rather than

adding

their

financial

re¬

serves?"

The question is not
I

understand

business

that,

decline

period,

similar

new

during
the

one.

every

postwar

questions

have

been put to the Treasury.
If one concentrates on current

business indexes and trends,
often easy, of course, to

it is

tempo¬
rarily lose sight of the long-term
sustaining forces that have made
our

country great. Ranking very
high among these forces is the

Treasury,

well

are

you

does not work in

aware,

Practical View

ivory

wo^lf^T indtat^atSOrt
contrary t™ classical ^l^ory—the
rtelTlhat^anV"^
Treasury should not rule out
^at
be done consistent with
sideration of the sale of long-term
^rob?ectives whkh we
securities when monetary policy is
con-

when
ing

credit

the Federal
federal

credit

Yet

ease.

unmindful

Reserve

stimulate

Treasury

must

what

is
is

that

eas
eas-

business

ust

-n

thjg

gesjions

ind

jYsten

ideas

an(j

aid

intently to sugfrom

and

the

assistance
which

better

serve

debt

and

welfare

equally considering the
the

Treasury

economy,

doubt

the

wisdom

strict adheience to precise formu-

ks to guide our actions. We wish

debt management weie

that simthat, in each

pie. It seems to us
mstance, we must try to weigh all
the factors, such as the technical
position of the market, the availability of credit to the corporate,

mumcipal, and mortgage markets,
the
impending
corporate
and

munipical calendar, and the special
needs
of
various
types of
investors, and then make the difficult

decision

of action

what

course

judge will make the

greatest contribution to the public
interest

not

only in the weeks

logger'range
** 0V6r the
longer range. ahead
extension
can,
of
accomplished entirely
outside the area of competition for
new funds by making it attractive
Some

debt

course,

matter

economic

present
the

aftermath

during recent years. When we
encourage the habit of thrift, we
are strengthening the foundations
of private enterprise and industry
which

have

made

our

economy

the most productive in the world.
I

sure

give

ment's

United

of
sharing
in
through the purchase of

States

promise

may

tion

jlave

which

Gov-

thoughts

any

might help

If I have

you

will

that the Administra¬

continue

face

to
them in the long-range best inter¬
ests of the people of America.
up

M like to

abouJt

d
g

to do

bett

And fina„
.

you

Savings Bonds

judgment, the Savings
B
d progran* has 'been of inesljmaWe help not Qnly to the goy_
our

ernrnen^

the

and

pJe who ho]d

the

million

peo-

but alg0

bondg

<G tbe wboje thrift and

dugtiy To
jngs Bond
P)

gome

savings in¬
of yQU the Say_

program

may

appear

onjy another form of competition
and,
perhaps,
unwarranted competition. In my judgmfent—ancj

]r)y

ways

have

been

banker

business iife—this has al-

seemed to

me a

shortsighted

that,

when

the

net

business
were

insufficient to support the

was

the

new

volume

company

poor.

deposits and make loans. In the
from

$5,500,000

earlier year were

this

its earnings
Union Trust

But, in 1892 the name- was changed to
Pittsburgh, and preparations were made to enable

Co. of

pany to do a general trust business.
ties were broadened
further, and

the

com¬

Several years later its facili¬

the

bank

35 years,

started

1900-1935,

resources grew*

$295,000,000; and whereas dividends in the
$30,000, by 1935 they amounted to $3,090,000.

Today Mellon National is the largest bank in Pennsylvania,
largest nationwide. Some 87 branches are operated,
most of them having been established since World
War ii. Loan,
volume produced 64% of gross in 1957, while investments
gave
21%, and trust fees and miscellaneous 15%. Trust operations have
been growing consistently in recent
years particularly in the field

and twelfth

pension trusts; and the bank acts as investment advisor to
retirement funds of the Commonwealth of Pennsylvania.

certain

STATEMENT OF CONDITION—DEC.
Resources
Cash
U'.

due

Gov't

from banks

public

Other

$428,094,000
375,220,000

CapitalSurplus

191.300,000

Undiv.

securities

Leans

securities

$G0,100,000
——

180,000,000

profits

22,120,000

9,553,000

discounts

31, 1957

Liabilities

Securities

Other

$102,220,000

1,013,078,000

Bank buildings and
Other resources

equip.

Due

depositors

1,753,044,000

Reserves:

19,309,000

Taxes and exps.
Other liabilities

8,042,000

21,819.000
8,113.000

$2,045,202,000

A breakdown of these assets into
Cash

Gov't

Other

Loans

18.35

Obligations——.

securities

principal categories follows:

20.93%

——a

—

Bank

9.82

—

and

discounts

buildings,

Miscellaneous

within

one

74% in

year;

to five years;

one

49.54 %

——

etc.—;

0.94

assets

0.42

Of Government Securities at the close of
1957,

12%

14%

were

due

ten years.

over

Cash and Governments combined totaled about 45.32% at that date.
Loans provided about 64%
income from investments

missions 15%.

of the bank's operating income, with

providing 21%, and trust fees and

The deposit ratio at the end of 1957
one as

it leaves

room

was

com¬

6.3 to 1, a

for expansion of deposits.

to do the

Savings

Stock

York

announced

the

Exchange,

election

John

Bond

reverse" "
program

could not have achieved its great
without the support of the

success

vast

stitutions who offer

Invested

Book Value

Earnings

Assets

Dividend

High

Low

1948

$71.48

$4.36

$435

$2.25

67i/a

1949

73.59

4.67

471

2.25

1950

87.31

4.76

553

2.50

731/4

1951

89.43

5.11

601

2.75

88%

5.61

601

2.75

5.93

591

2.75

921/z

98.23

6.10

621

3.00

1955

101.43

6.74

634

3.20

117

1956

104.48

7.70

640

3.70

115

103

1957'

109.08

8.79

669

4.00

128

IO51/2

1952

92.07

1953

95.14

Chicago

1954

office, 120 South La Salle Street,
and

Friedlich and John W. Stodder
Vice-Presidents

the

Harry

Weber,

Vice-President

the

Jr.

New

sociated with the
a

investment

vice-President in the

York

office, 60 Broadway.
John J. Jacbym has become
as

as¬

firm

Chicago

On Jan.

its stock,

The

Hold Outing

PITTSBURGH, Pa.—The annual
Spring Outing of The Bond Club
of Pittsburgh is to be held Friday,
June 6, at The Longue Vue Club,
Verona, Pa.
#
Guests

are

welcome

and

Fenner

varied

mately 3.10%.
The rate
that

Webber

(Special to The Financial Chronicle)

ANGELES, Calif.—Gideon

Douglass,

Millan,

2% dividend in
been made for

record

goes

back

1909.

the

129 for the shares the return is approxi¬

Dividends have been conservative.
of earnings on

deposits is running around 1%; and

book value about 8.1%.
were

double

those

1958,

and dividends

78% greater, while the price advanced approximately 46%,

using the means of highs and lows for the two
The

stock

held

in many

years.

institutional accounts and ranks

high among conservative investors.

OVERSEAS

Raymond

Stephen

CRINDLAYS

Co., Inc.

AND

BANK

LIMITED

and

INSURANCE

Head Office:

Mac-

McKibbin,

BANK

Ahnalgamating National Bank of India Ltd,
and Grindiays Bank Ltd.

STOCKS

BISHOPSGATE, LONDON, E.C.2

George D. Millay and William L.

ston

dividend

Earnings for 1957
were

No adjustment has

10.

in the above record which ends with 1957.

unbroken

NATIONAL

LOS

28, 1958, Mellon National declared

payable March

Smith.

Five With Paine,

split In 195 4.

■

present price of about

reser¬

vations may be made with Norton
M. Bryson, Merrill Lynch, Pierce,

4-for- 1

Adjusted for

this payment

Pittsburgh Bond Club

/-Price Range—,

661/4
661/4
76%

as.^ believe

so naiv€:

someone walks into one of
-011.1, msMutions to make a deJ)OSj'' 7ou are £°*nS to suggest
lhat.lh? Perfn ^uy a Savings
i^onJ r1?
V ?e
ul
TJie

New

^"relations

the

buying department.

pojnt of view,

CHICAGO, 111. —A. G. Becker
Co., Incorporated, members of

banks.
The
average good
conscience
with
United Rose are now with Paine, Webber,
maturity of Government State Savings Bonds.
&
Literally Jackson
Curtis,
626
South
securities held by mutual savings millions of American have accuSpring Street. Mr. Douglass and
banks, for example, is about 8 mulated
their
first
savings Mr. Millay were formerly with
years to first call date, as against
through payroll deductions, and Dempsey-Tegeler & Co.; Mr. Mc¬
almost 14 years in
1946.
There having once acquired the habit of
Kibbin was with Harris, Upham &
may be some merit in encouraging thrift, they become the customdebt lengthening within portfolios ers of other types of savings in- Co., and Mr. Rose was with Waltimes

transferring and registering of stock, and

•TEN-YEAR STATISTICAL RECORD—PER SHARE*

Three Vice-Presidents

In the meantime, in
1889, under the laws of Pennsylvania the
Union Trust Co. of
Pittsburgh was chartered as The Union Trans¬
fer and Trust Co. with a
capital of $250,000. Its function was the

A. G. Becker Elects

commercial

even

worst financial
crises, the panic of 1873. In 1902 the bank
incorporated and took a charter under the national bank
act,
the capital being
$2,000,000. It succeeded early in its career, for
less than a year after
incorporation deposits had grown from
approximately $8,490,000 to $20,980,000; and total resources from
$10,492,000 to $24,340,000.
y
our

Operating

majority of the banking institutions of
this
country.
The
for investors such as mutual sav- Payroll Savings
plan, which is the
ings banks, insurance companies, mainstay of the Savings Bond
pension funds, etc., to lengthen program as it exists today, does
their own portfolios by replacing a job that the savings institutions
some
of their short- and inter- cannot do as effectively. Very few
mediate-terms with longer-terms, employers
want
to put
on
an
The short- or intermediate-term active sales campaign in their resecurities which these savings type spective organizations to sell savof institutions sell would, for the ings accounts for any single primost
part, be acquired
by the vate institution. They can do so in
term

was

quite conservative

United states Sav-

Bonds

Bank Stocks

& Trust Co. of Pittsburgh was
formed in 1946 at the time of the
merger of Union Trust Co. of that
city with Mellon National Bank, its origin
really goes back to 1869
when the bank of T. Mellon & Sons was
opened. Four years later
deposits had grown to 8600,000, and the bank had weathered
one

program

America

—

National Bank

support to the govern¬

your

over

thryugh

well

Mellon

will continue to

you

—individually, as
your committee

While

did

wdb

We hope that many

poses.

Having the dual responsibility
of bearing in mind the goal of a
better maturity distribution of the

the

Debt-will come in and talk

as yours-

the

if used for private pur-

fact,

downturn

ernmenj Securities and the Public

such
f

desirability of being of
by not absorbing funds

might

economy

Savings Bonds.
accomplished nothing
else, I hope I have conveyed the
idea that the problems we face
are
not easy of solution.
I can

groups

inctV' !.„2
light of bo h the shoit
and
long-run welfare of the economy
the

discouraged at another.

It is much too basic.

can

one

not

time and

of an
which I want to leave in the hope
they will stimulate you in glyipg inflationary boom which would
Vs
benefit of your own think- have been much milder had
Americans saved more than they
JJJS on these important matters.
The

This Week

perience in this recession will be habit of thrift, upon which de¬
any different. As I have suggested, pends the sound financing of our
however, in the process of con- Nation's industrial might as well
centrating on bank borrowing, we as providing a backlog of savings
should not immediately assume for millions of our people.
The habit of thrift is not some¬
that that it will
all
be
short-term
borrowing or that consideration thing to be encouraged at one

Furthermore, it would not be in
the Treasury's, and hence, the taxpayers' interest to put out an in-

Bank and Insurance Stocks

step in to any significant
this
might require
the
Federal Reserve to back up ternporarily on policies which were
deemed
essential
to
the
good
extent,

countless homes

could not otherwise have been

course,

a real market, period such as this.
For example,
hypothetical
market the Treasury made more progress
perfectly fluid and per- in debt lengthening during 1954
fectly
responsive
to
desirable than in any other calendar year
changes in policy. If the Treasury since World War II, yet no issues
tries to force long-term securities running more than
10 years to
on investors during a period when
maturity were put out during that
interest rates are high and funds year,
are
being
eagerly
sought - for
private
purposes,
the
resulting
Recourse to Commercial Banks
market
disorder
might actually
By far the most important part
interfere with the effectiveness of of Treasury new money borrowing
Federal
Reserve
policy
rather during a recessionary period is
than contribute to it. If the market properly done through the cornthreatened
to
become
so
dis- mercial banks, and we have no
orderly that the Federal Reserve reason to believe that our ex-

had

These

downpayments

buyers in

not

which

service.

ties is small, without running the
risk of competing unnecessarily
for funds needed to support renewed expansion,

find

new

late nest eggs that have permitted

securities

our

for investment in Federal securi-

con-

manage-

economic

somewhat

must

own

will

debt

the

one

classical

can

your

experience

fact

ment

where

that

sure

amount

London Branches:

13 ST. JAMES'S SQUARE,

S.W.I

54 PARLIAMENT STREET, S.W.I
Bankers

the Government in: ADEN, KENYA,

Laird, Bissell & Meeds
Members
Members

UGANDA, ZANZIBAR & SOMALILAND PROTECTORATE

New

York

American

Stock

Exchange

Stock

Exchange

120 BROADWAY, NEW YORK 5, N. Y.
Branches in:
INDIA, PAKISTAN, CEYLON, BURMA, KENYA,
TANGANYIKA, ZANZIBAR, UGANDA,
ADEN, SOMALILAND PROTECTORATE,
NORTHERN AND SOUTHERN RHODESIA.

Telephone:

BArclay 7-3500

Bell Teletype—NY 1-1248-49

(L. A. Gibbs,

Manager Trading Dept.)

Specialists in Bank Stocks

(2194)

The Commercial and Financial Chronicle

Continued

from

page

omy

bile

gested

Thrift Institutions and

made

actually

can

contract

credit

expand

and

commercial

all countries has proved to be

essential for commercial banks.

banks, as Gurley and Shaw con¬
tend, and so should be controlled

loans and investments

crease

from

their

additions

only
deposit gains and
surplus.
Similarly,

net
to

life insurance companies and pen¬

sion funds

can

expand their loans

grounds, but equally
practical way to make credit
trol

been

only out of net
premium receipts and investment
income

cates

investments

disbursements.

over

Sav¬

the

thrift

institutions

were

All these thrift institutions collect

expanding their loans and invest¬
ments freely and so were neutral¬

savings and lend or invest these
savings to finance the long-term
capital needs of business, home

izing the curtailment of lending
by commercial banks. Therefore,
they say, the Federal Reserve au¬

the

Federal

Home

Loan

Banks.

thorities had

resort

governments, which
use the
funds to acquire capital
assets.
The process of devoting

finally to
unduly drastic restrictive steps.

sivings to create capital assets is
known to economists as "capital

with

formation."

They are:

and

owners

The

commercial

banking sys¬
by contrast, is not limited
in its lending and investing by
the voluntary savings
decisions
of its depositors.
When provided
with
adequate
reserves
by the
Federal Reserve System, commer¬
cial banks can expand loans and
tem,

There

several things wrong

are

this

suasive

line

argument,

per¬

it may sound to some.

becomes effective.

The

nomic

conditions

eco¬

businesses

continue

individuals

for

reason

that under favorable

and

spend

continuously, and freely by using up their own
create new deposits, a liquid resources when money be¬
comes
more
difficult and more
process known as "money crea¬
tion."
This
is
a
unique
and costly to borrow. This means that
the existing money supply is then
extraordinary power. This proc¬
ess
of "money creation"
is en¬ turned over more frequently. This
gaged in by commercial banks ex¬ is in no sense a new problem
caused by the growth of thrift in¬
clusively.

investments

thereby

stitutions

A very striking example of the

difference

that

exists

tion"

by savings institutions was
provided by the World War II
experience of our financial sys¬
In

savings

the

four

banks,

associations

savings

and

1941-45,

years

and

life

loan

insurance

companies

together
increased
their holdings of government se¬

not

restrictive

The

(2)

measures

made

1955

1956

were

effective

less

any

monetary

and

of the growth of thrift in¬

reason

stitutions.
Reserve is

question

boom

the Federal

always faced with the

of how much credit

re¬

straint to apply and how soon.
In the past, when Gurley, Shaw

their

and

economy

followers

far

was

claim

the

respon¬

roughly equal to their net receipts
of savings for
the period plus

striction, central banks were will¬
ing to resort to extremely drastic
tight money measures to check a

limited amounts derived from the

liquidation of other investments.
Commercial banks, by contrast,
expanded their holdings of gov¬
by

$69

bil¬

lion, or three times as much, from
$22 billion at the end of 1941 to
over

$90 billion at the end of 1945.

They

were

expand
ments

they

able

loans

and

this,

other

and

boom.

by the

Federal

Furthermore,

pay for securities

they

and

could

make

new

loans merely by crediting the de¬
posit accounts of issuers and bor¬
rowers.

The

resulting

posits then became part
nation's money supply.
One

1920

rate

1929.

the

Bank

banks and by thrift institutions.
It is because the
money supply
so
elastic, and at the same time
sq
vital to the welfare of the

economy, that the Federal Reserve
far-reachcredit

pansion and contraction by
mercial banks.
Since

thrift

ex¬

com¬

institutions do

financial sys¬
to control

our

measures.

England

unwilling to risk the

restrictive

severe

its

the

they

1955-1957

would

use

measures

period

fearing

too

constric¬

money

policy of

prove

tive.

The tight

(3)

1955-56

could

have produced re¬
promptly if interest

FHA

and

VA mortgages

been

allowed to rise freely.
By pegging these rates, it became
increasingly difficult to place such

mortgages, home
curtailed, and so
of funds

was

building
a

was

large volume

freed to finance the

business boom.
If the FHA
VA rates had been allowed to

and

rise,

a
much
larger volume of such
mortgages would have been placed

with

thrift

institutions, corporate

ment

thrift

example

kets

from

about

the Federal Reserve System would
have been far more effective in

curbing the supply of investment

monetary controls that experience

For

immobilize

and

the

capital mar¬
billion of funds.

$18

control

financial

over

asset

pansion and contraction

ex¬

Thus,

rather
for

than

own

Can

invested,
future

and

the

One thing we must do is to con¬

tinue

study this proposal and
practical
implications
tho¬

eyes-open.

Grover

Dr.

sayings
it

governments

increases

would

in¬

requirements would cause a
permanent
curtailment
of
the

supply of such funds from thrift

institutions,

but also because a
drastic further contraction in

the

supply would be caused from
time
to
time
by
increases
in

reserve

machinery,

and

wel¬

economic

its

fare.
•c: The

•

Gurley-Shaw

financial

control

that

theory

substi¬

must

tuted for monetary control

long

step backward in the development
economic

both

"of

sound

By seeking

fundamental distinc¬

to have the
betwen

tion

financial

money

structive

the

economists,

the

conomy,

work

other

and

assets ; ignored
of

conduct

and

doctrine

public policies.

con¬

of
legisla¬

generations

bankers

and

tors would be undone.

gress.

its

their

to ward off this threat to the

Ensley

Continued

from

and

his

staff

I am confident that the

tation

Ameri¬

reject this

people will

can

take

invi¬

retrograde

step, one that would jeopardize
seriously
both
the
long - term
growth and the stability of our
economy.

page
'

~ \

•-

Current Economic Problems

prepare

Secondly, the cost of long-term
funds to home owners, business

very

institute

research

nation's

bankers,

ef¬

these legal reserve requirements.

and

of public education
aegis of a joint commit¬

program

requirements

other

the

complexities of international
political and economic relations.
It

should

noted

that in

the

any case,

balance

continues

stacle

the

tions.

litical

■

gress

ity." An increase in legal reserve
requirements for thrift institu¬

field.

considering

economic

-two

in the

measures

These

measures

major

foreign
neither

are

original, nor are they a
for our ills, but they are
important.
new

nor

panacea

and interest rates could
rise unrestrainedly. I doubt

Reciprocal Trade Act .■»"
The

first

the free

na¬
po¬

those alliances

trade

by un¬

practices.

This

persistent imbalance in our
payments is one of
must
have a foreign aid program. The
slogan "Trade Not Aid" about
which you have heard a great deal
in recent years is indicative of the
international

the primary reasons why we

that

fact

would,

and

allies

our

than

friends

prefer

large,

and

with"

trade

justed,

ob¬

serious

development

struggle to create

undermine

At the present time, your Con¬

have

military alliances with
friends, and at the same time,

our

and-regard

sound

tact

create

viable alliance among

Quite often we have been overly
with goods, but have

lacking in

which

virtually every year
since World War I has created and

been

for the self-respect of -less power¬
ful people.

large favorable

very

trade

achieved

generous

administrative actions by the pro¬
"Financial Asset Author¬

tions could
virtually halt their
lending and investing for a time
as reserve positions would be ad¬

also

dealing with matters which affect
the personal dignity ancLmaterial
prosperity of foreign peoples di¬
rectly, the manner in which a
policy is carried out is often more
important than the policy itself,

posed

receive

out¬

grants.
But since we are
unable or unwilling to buy enough,
right

the

much that this kind of fi¬
nancial management of our econ¬

extension of the Reciprocal Trade

omy would be found tolerable for

Act.

ternational obligations by massive

even

brief period.

the third place, the inescap¬

able

would

consequence

undermine thrift. In periods of re¬

straint, savings would be discour¬
aged

because

thrift

institutions

would have to reduce the rates of
return
paid
on

savings,
even
though they charge higher inter¬
est rates on loans, due to lack of
earnings on the new cash reserve
requirements.
of

The

combination

smaller volume of

higher cost to
long-term
funds
a

economic

savings and

borrowers
would

growth and

for

retard

hold

down

living standards.
Finally,

control

through
changes in legal reserve require¬
ments would bring intolerable re¬
sults,
the
proposed
"Financial
Asset
seek

Authority" would inevitably
to order thrift insti¬

powers

tutions

to
increase
or
decrease
their holdings of particular kinds
of assets.
Thus, what purported

would

general
soon

way,

credit

become

controls

selective.

would take

step towards centralized
ment

management

long

govern¬

our

econ¬

through thrift institutions, a
step completely inconsistent with
omy

market economy.

agement only to "lean against the

sider

wind," not to

gerous a

Before

free

enterprise, free

embarking
road, let

upon
us

even con¬

ponder

dan¬
a re¬

the

necesary

economic

health

have had to balance these in¬

loans
I

and

say

grants.

the

because

this

alternatives

not

have

had

of the free world that it is incon¬

doing it have been and still are too

ceivable to

costly

should
Act

the

that

reject it.

extended

Even

there

Congress
with

will

this

remain

many obstacles to the free flow of

trade

among the nations, and
there will remain the distortion of
trade balances due to

our

ure

buy from

much

fail¬

our

foreign peoples

sell them.

reductions

return

for

reciprocal concessions by other
countries.

fear

If it is not extended, I

too dangerous to accept.
not

The economic consequences of

enacting

Assistance

Mutual

the

legislation would be a severe con¬
traction in our exports of all de¬
scription.

I do not have to tell this
seriously this would
economy, especially in

audience how

affect
a

The Act by no means abolishes
tariffs, it merely gives the Presi¬
dent the authority to negotiate

our

period of pronounced recession.
I hasten to

not

add, however, that I

this aspect of this
sufficient justification
for its enactment.
The political
and strategic implications of the
program
are, Under the existing
regard

program as

break up of the tension between the United States
alliance, with Russia and Russia, far more compelling
stepping in with all kinds of trade ,in my view than the economic
concessions.
In
truth, Russia is benefits.
making considerable headway in
The cold war with the Russians

early

Western

that direction already.

•

It is

not

static

kind

trench warfare.

economic

The emphasis and

probable, I suppose, that in
lowering any tariffs some domes¬

the weapons are constantly

tic

ing.

businessmen

even

will

whole will benefit.
would be
a

injured,
though the country as a
quite

I think that it

proper

to develop

or some

form of compensation un¬

der prescribed conditions

confident
a

the

chang¬

On April 28, the Director of

C.I.A.,

livered

Mr. Allen
memorable

Dulles, de¬
address

Washington:

scheme providing for assistance

injuries.
nation

importance

Although there is serious op¬
position to this Act, as there has
always been, its enactment is so

modest

since

the ideal of

econ¬

Institutions

savings

have

possible

under the

who manage other thrift in¬

additional large
to be kept in
liquid form by thrift institutions
would

sum

(4) Federal Reserve spokesmen
repeatedly emphasized that
they seek through monetary man¬
the

fective.

time

have

manage

Thrift

communica¬

in winning converts
economists, bankers and
businessmen. Similarly, all thrift
institutions would do well to join
lost

never

are

channel

"among

tee

we are sure

doing and
the spirit of tinkering.
we

reserve
requirements
would be
subject to increase at any time
by administrative order, to make

this

but only when

say,

what

best

like to add my own hope

roughly, and foster similar studies
essential feature of by others, so that we will all face
the Gurley-Shaw proposal is
that,, this threat with our

early

actions

our

against this proposal to the
our ability
through every

case

finance at any time.
We do want
to
modernize
and
improve our
financial machinery, needless to

requirement, of,

would

Moreover,

restrictive

I would

What

Financial

institutions.

cash

10%

say,

borrowers would have had to
pay
higher rates of interest to
attract available funds, and so the

much

mild

was

fully

experience."

stitutions, are faced with a serious
nancial
asset
management
for
threat in the Gurley and Shaw
monetary management, as is con¬
thesis.
In one form or another,
templated by the Gurley-Shaw
their proposal to impose legal re¬
thesis, would have far-reaching
serve
requirements on thrift in¬
practical consequences.
stitutions is going to play a major
First, the supply of long-term
part in the forthcoming monetary
investment funds would be sub¬
inquiry, which in turn could pro¬
stantially curtailed by the impo¬ vide the basis for
far-reaching
sition of a legal reserve require¬
legislative proposals before Con¬

Recently,
lifted

and prayer that we will not tinker
with this
delicate machinery of

very

and

finance,

so largely depend, until
comprehensive study of our fi¬
nancial system and of the basis of

system of fi¬

workings of the entire

economy

men

Substitution of

the

through

machinery

which

Asset Management

the

funds.
not

possess the power of money crea¬
tion, no valid purpose would be
served by applying to them the

and so
financial revo¬

highly responsive

occasion

The Federal Reserve authorities

had

sential difference between lending
and
investment
by
commercial

re¬

rate to 7%.

rates

layman, can contemplate this re¬
markable example of money crea¬
tion
by commercial banks and
then argue that there is no es¬

System has been given
ihg powers to control

lution to make
tem

re¬

Fed¬

authorities,

does not call for

then

century,
on

rate

the

only wonder how any¬
one, whether he be economist or

19th

England

discount

sults

can

the

credit

discount

de¬

new

doses

lifted its discount rate to'10%. The
Federal Reserve banks set a 7%

invest¬

Reserve

Bank

were

banks.

mild

simultaneously,
because
such
were supplied with ample

reserves

Reserve

policy
of the

serve

sive

obligations

credit

purposes

tend.

curities by $23 billion, an amount

ernment

eral

the

creased not only because legal re¬

be¬

tween "money creation" by com¬
mercial banks and "capital forma¬

tem.

restrictive

flected

during recent years, as
Professors Gurley and Shaw con¬

Refers to 1941-45 Period

great

go.

that the economy did
respond promptly and fully to

withdraw

(1) There has always been a lag
between
the
adoption
of tight
money policies to check a boom
and the time when tight money
this

can

Consequences

1955 and
1956 proved relatively ineffective

because

along

tion. Advocates of the theory have

This

measures

the deli¬

work

The subject
of

the. program

and

far

the restrictive

that

contend

borrow to

extent from

con¬

past.

cate

included

suitable

Specifically, the theory's advo¬
monetary

limited

recent

periodic

excellent

done

this line already.

monetary policy has been carried
out by men of wide knowledge

to the third question.

ings and loan associations have a
little more leeway because they
a

and

prompt in the future than it has

brings

and

effective

The fact

The Gurley-Shaw thesis is be¬
ing advocated not only on theo¬
retical

economy

with

the

Savings banks, as we know
our daily experience, can in¬

the

have

warning of Dr. Arthur Burns,
"it 'would
clearly
be
un¬

meeting because Dr. Ensley . is so
alert to the seriousness of
the problems involved.
Secondly, we must present the

not

Ineffective?

from

sensitive

cent

that

desirable to tinker

Thursday, May 15, 1958

changes in credit policy, we may
find ourselves alternately thrown
through the windshield when the
brakes are suddenly applied, and
hitting our heads against the ceil¬
ing when the accelerator is pushed

Is Monetary Management

like commercial banks.

that
too

automo¬

It has been sug¬

down

Monetazy Management
tions

whole like

the road.

freer

the

flow

the

long

would

run,

benefit from

trade

compensation

for such

would

than

cost.

Cites

Allen

Dulles

"Today," he said, "we face the
subtler policies of Nikita Khrush¬
chev. .-.. I do not mean to discount
the seriousness of the Soviet mili¬

tary threat

its challenge in the

Volume

187

Number 5742

The Commercial and Financial Chronicle

27* v

(2195)
scientific
which

technical

and

advanced

depend.

But

fields

Fund to take

den

systems

weapons

it, under its
present, policies, the U.S.S.R. does
not
intend
to
use -its
military
power in
such a was as to risk
general

war.

respect

for

bility.

see

gram,
the

a healthy
retaliatory capa-

military?;.aid,-development
giveaway

the fateful battles of the 'cold war'

field.-;1

Mr., Dulles

proof of the
•increase

convincing

gave

and

enormous

lumped

motives.-

our

considerable

capae-

evidence,

from

the" Asian

there

foreign assistance

non-Communists

programs
well

especially"

^countries,

the

that

people we
It is indeed as

very

trying to help.

are

received

misunderstanding of the

program

have

also of the tremendous increase: in

relief
together in

emergency

ity; of the Communist world and
their

as-

arouse-and encourage suspicion of,

rapid

the productive

and

loans,

economic

satellite countries. In other words,v:difficuit to help a nation as it is
the Communists are
challenging to help an'individual without bethe

West

which

the

fields in
have heretofore clearly

and scope of our mutual assistance

For

programs.
the first

the first- time,

quarter of 1958, the Com-

munist world produced more steel
than the United States; and dur-

ing the last three
made

vances

interest

they have

years,

than $2 billion in ad-

foreign nations
substantially

rate

In the

•tartan

arises,

gram

should

abandon

subverted

agents, if not
If

free

the

Communist

by force of

overrun

should

this

but

mutual
our

than

allot to the

now

assistance

program

upon

In other words,

defenses.

own

—

would also probably
as much

compelled to spend

.01*

——

what we save abroad, wc would
probably have to spend upon arms
here at home. So long, therefore,
the Communist

menacing

cynical

many

Assistance.

observers

here

and abroad have seized upon real

defects in administration

have

created,

efforts.

our

;wisely and convincingly to answer
hese critics: and to explain satis-

threat

remains

is, cutting

now

mutual assistance is not

X.fnrfr

appro¬

is expected to continue on the
easy side
considerable period, even though it is not
likely to get a great
easier
during the time for further study of the pattern of
business.
It is the opinion, of certain
money market specialists
that the kind of action that will be taken
by the Federal Reserve

for

^ 1 d'
a l a o r iAstoria.
w

;

Jl-lt

should

that

'orcigS

field

situation

ing

recession

govern--;

ment

the

tax cuts

officials,

members

have

com m

Kellogg, 3rd

JY
r)lii

rp.

r>;phnrri'
Church
Keith

Pastor T<rf toe

Our

should

New York Stock
D

affecting
What

domestic

our

may

economy.

public

about

works, fiscal and monetary policy
be largely

stock

Exchange*

Ameri-

Edward

P^sid'ent

the

such

is too Wimately

economy

vnlnln/

tho
the

ft
of

Frank

York

Stock

rnP
the

or«ftnnmir>e
economies

John

Kellogg,
&

senior

partner
1

Kellogg,5 and

Vice-Chairman

1954

term

one-year

and

Assistance

Civil

there

are

several

think

program,

changes in

em¬

has

War

subjected to

the

our

talk

the

see

the

with

and consolidated
regular military budget.

would

our

remove

of confusion

sources

the

program

our

This

one

the

the minds

administration

own

the minds of
to

assistance sepa¬
nonmilitary part

military

from

rated

and

friends abroad

our

It would also
give us better administration in
my opinion. I have advocated this
our

purposes.

for

two

has

but

3*ears,

declined

far

the Congress
accept the

proposal.
The

second

to see is

thing I should like

the conversion

the

program to a

lending operation as
by the Senate in last

provided

year's bill.
businesslike

This would

the borrowers.
the

be more
and

for

It would minimize

difficulties

which in

for

both

recent

administration

have been
the source of the principal complaints about the program. I might
.add

years

that the proposal

of Senator

Monroney to convert the bilateral
development loan fund approach
to

multilateral lending operation
deseives the most careful cona

sideration.
It is ironic that

some

of the most

violent criticisms of this
have

come

House
very

same

emasculated
create

the

from

House
the

that

last

Senate's

We must take

the long view of
make long-term

this struggle and
plans, for it is

likely

for

Business

leaders

many

such

LOUIS,

business

Your

and

study

to underproblems

national

these

Congressmen need your as¬
and
advice
in
dealing

sistance
Wilh
with

thp'
the

fomnlpy
complex

and
and

abstruse
abstruse

economic relationships.
Above

and

beyond

most

month.

:;;I.

money

most.,^1

maturity of five years or less, with
in some quarters that the due date for
very much under the note range.
,

•:

with

now

hers

the New

Intermediate Maturity
-

and

time

about

such

seem

"'^

•

to be too much

along with the money easing policies of the Federal Reserve
Board by following a debt management program which would
forget for the time being at least, the extending of the maturity
of only a small portion of the public debt in the coming refunding

Reinholdt

York

this

like this of uncertain and defensive business conditions should gQ^

Mo. —William

Gardner, 400 Locust Street, memMid-

venture.

west Stock Exchanges,

•

>
;

;

The Market in the Interim

Form William St. Sales

The

market, in the opinion of most followers, is not
going to do very much in either direction until the terms of im¬
pending refunding offer have been made public.
Accordingly,
it is not expected that the longer end of the list will do much
more on
the upside until there are greater assurances that the
Treasury will keep away for sure from the long bond maturity

wil'iam Street Sales, Inc. has
been foimed with off c s at
liam
Street, New York

engage

City, to
business.

securities

are Dorsey Richardson,
President; Edward B. Burr, and
Richard
D.
Gibson, Vice-Presi-

Oncers

money

smaller

The

payments.

and timely measures to prevent a

Brothers.

Securities Company of
Massachusetts,

commercial

banks with more savings deposits '.Vdeposits have been reporting very sizable indeposits on which they have to make dividend

investments

serious economic convulsion in
the_ Western World, the Atlantic

effect

upon

the

of the Government market.

area

immedents," and"John W. Welcker, Secmaterial retary and Treasurer. Mr. Richprosperity, if we fail to take wise ardson was formerly with Lehman

diate

rorm

CORPUS

CHRISTI,

Texas

formed with offices in the Wilson

Building to engage in
business.

Officers

are

securities

paid

Because loans

are

declining and the return

other

has also been going down, there is some agitation
these institutions to reduce the interest rate which is being

;

savings deposits.

American-Commonwealth
(Special to The Financial Chronicle)

Rate!New vS^CitV

SAN FRANCISCO, Cal.—Amer-

ican-Commonwealth

Form Carlton Securities
Carlton Securities Inc. has been

formed

with offices

210

West

Corporation 94th St., New York City, to engage ;

is engaging in a securities business in a securities business. Officers
from offices at 365 Ocean Avenue, are Harry Z. Cohen,. President;
and Irving Swift will retire Officers are George L. Carrico, Abe Biegelson, Secretary - Treaspartnership May 23 and on Chairman of the Board; Lawrence urer; and Gertrude Biegelson,

changed
to
M. Frumkes & Co. Selig Rat-

chick
X1UII1
from

will

Ma4MreiOM41J

„ia_

May 24 John G. Frumkes will be
admitted to limited partnership,

Taylor, President; and Roger Deal,

Bioren Co. to Admit

Joins Morrison Staff

Richard

King III, President; Joe P. Nelson,
Vice-President;
and
Mrs.
Jane
Hanabury,

among

12(> Broadway, New York City,
members of the New York Stock
H.

—

King, Nelson & Co., Inc. has been

was

On May 24 the_ firm name of

Exchange

King, INelson Co.

Welcker

in time

fo Be H. M. Frumkes

remnants
of the
free societies
which will have lost faith in the
free and democratic system which

held such promise for mankind.

Mr.

commercial

creases

0fficer of

Alliance will be shattered and
the Communists will gather in the

than

our

coast in charge of the local office.

year

Reinholdt, Gardner

(Special to The Financial Chronicle)

this audience, must make it your
stand

long-term bond, there does not

years.
are

Loan

the

plan

Development

can

Representatives,

With

Poole

Secretary - Treasurer.
Mr. King was formerly with U11dcrwood, Neuhaus & Co., Inc. and
Reynolds & Co. Mr. Nelson was
with Dewar, Robertson & Pan-

program

members

been

as severe

muster to meet suc-

sight

eessfqly this attack.

I should

made.

15th of next

minds

security being part of the refunding deal. However, it should be remembered the Treasury c
always likes to have a surprise for the money market. Hence,
with the desire still strong, according to advices, among some of
i
the Treasury powers that be, to extend the
maturity of the Gov¬
ernment debt, there might be a bond maturity issue in the
coming
\
refunding operation. Nonetheless, it seems to be the opinion ip
1
most quarters of the financial district that the Treasury in a time V

a secu-

business from offices at
2**B Palmer Square, East. He was
formerly with Hay, Fales & Co.

ST.

phasis and in organization which

the

May Surprise With Long-Term Bond
As for

PRINCETON, N. J.—William C.

present one.

should

nation

challenge

due the

...

W. C. McConnell Opens

We need des¬
perately all the wisdom and fore¬

come

question in

However, when such a
refunding obligation is taken by non-deposit bank investors, there
will be less money available for other
recovery type of investments, particularly mortgages. This is not exactly what would be
called operating to bolster the line against the recession.
Y

jities

Program

further deterioration in the money supply.

be available for renomination.

litieal

Aid

May 19 In January he announced
that, because of the demands of
, .
'
business, he would not

validity of the economic and po-

Mutual

an intermediate term
maturity for a
is open to considerable discussion. How- ",'tt
ever, opinions seemingly are in some semblance of agreement .',•••
namely, that in order to be in the middle or intermediate maturity
range, a security should have a maturity of ten years or less. If
the intermediate term issue is priced
right, that is if the coupon
'•
is satisfactory, there could be considerable commercial bank
buy- ing which will keep the deposit level intact and thus prevent
~

Chairman

tion would .be added to the regular

Although I support the Mutual

Government obligation

1955, and will complete his second

Defense

What's

McConnell is engaging in

which our
Never since the

•

What is considered to be

member
of the Exchange since 1936, has
been a Governor since 1950; served

The Communists under the lead¬

upon

•

the large money center institutions.
As to the other
obligations which are being talked about in the June refunding;:^
"basket" deal, it seems as though an intermediate term issue is;
being touted back and forth, much in the manner of a trial balloon. "

Stock Exchange firm of Snear

Leeds

from the other.

principles
society, is,based.

would

especially

Exchange;

Sparks,

obligation should be

one

of which
-

the

will

Biggers and charles E- Wilson,

nullified by neglect¬

free world to disassociate the

when

there

As in past refunding operations, it is evident that a certificate
would fit very well into the liquidity plans of not a few
banks,

Lewis> president of the Asso-

New

appears

money market specialists
the opinions very strong

ciatii)n of stock Exchange Firms;

drastically curtailing the mu-

works programs, both
the money market.

time

looked for

American Stock Exchange* Robert

ing to extend the trade program

mestic

the

whether

:
^

business

Feb. 15,

Exchange; James

Chairman of the

MeConnick

uv.
be consid-

Also

determine

at the

obligation, the 2%% due
.1963, in its last operation, when a package deal had been
by most money market followers. This time a bank
maturity obligation is definitely expected, and that means to

Lady of Victory;
President of the

Funston,

EX° ^

siiwuiu

looking

market specialists but that the Treasury will give to the owners
;
of the June maturities a choice of securities to
replace the ones ':
that are coming due. This belief still holds
strong in spite of the
"
fact that the Treasury used
only one

the reciprocal trade

program,

glasses.

will

Treasury obligations which

There

guests
v^ena canon BerP\-X\Cair>
ni Y

Stoc.k Exchange. Edward C. Werle,

ered along with measures d 11 ec

low

not

shorter, more attention is being paid to the June f "
refunding operation, which will be concerned with $9,553,000,000 i i!:

the

p<did.es fn

our

its

influence

colored

rose

reaches

As time gets

unity

ership of the Russians are boldly,
all over the world, attacking the

Department budget.

through

Board

Choice of Maturities Expected
J. C.

"J. J"Mr. Kellogg,

Reserve

and large public

and leaders of

Exchange

the financial

piogiam, and the foreign assist-

Federal

Public Governors of the New York

"estta"

can

the

people includ¬

Dr-

Conclusion

conclusion

ance

that

1,000

the future, should give out clues as to the way the
economic situation is shaping up. If the Board
continues to oper-:
ate through open market
operations alone, it will mean that the
recession is following a normal course.
If, on the other hand,
reserve requirements are
lowered, this would seem to indicate

Board, in

the

deal

^ testiraonigl,
S,®
About

Governments

The money market

Reporter

By JOHN T. CHIPPENDALE, JR.

°™eru°rSi

priate place to save money. What¬
saving we might nominally
make in the foreign aid appropria¬

ever

Our

Kellogg, III, who

Emil Schram, former President of

•

mix¬

happen,, not
only would our security be threats
ened to.a' greater extent than it is
arms.

now,

Mutual

The complex mixture of different
functions- within the -program
need the assistance of .makes it extremely difficult pre-

tions, especially the smaller ones,
they undoubtedly could and would

feel

call

struggle with the authorisystem of so-

munists have made great and rapid
strides, and. we are the only peo¬
ple able to match their power. " If

,be

misunderstanding
I have said, from includ-

thereby'discredited

and all peoples still free from

Crane

Chairman of the
New
YoiJc htock Exchange, was hon-

v^.i"

ing so J many* different purposes
and functions within the one pro-

Comnumist domination. The Com-

which

the

Communist

ciety,
any

leads

imaginary
ones,
have
at an blown them up out of ail proporlower- tion to-their .true significance, and

than ours, usuaUy about 2
*

ing misunderstood,
Much of the confusion

very

held the lead, the productivity of
our industrial system and the size

James

or
10£
one: bundle. < This* ^ confusion
of * services to the:,
purposes has given the Communist vt X c
a.? 8
propandists " anopportunity
to " vpmnaumty

V• '.f•' r»"

grant

assistance

will, in the foreseeable future,-be
fought in the economic, and subversive

Kellogg, III
Honored by Dinner

could get away from
quilt mixture in which

crazy

.-v

James

clarification-

and

of the various aspects of this pro^

It is most probable that' sistahce,

...

the major bur¬

over

foreign aid.

By separation

They have
our

PHILADELPHIA,
June

Robert

Pa. —On

Hassold

PhiladelphiaBaltimore Stock Exchanges.
New

York

and

NEWTON, N. C.—Leslie B. Co,

f Morri-

J
son apd
Building.

Vice-President.

Forms Economic Planning

(Special to The Financial Chronicle)

will

become a partner in Bioren & Co.,
1508 Walnut Street, members oh
the

Secretary-Treasurer.

Northwestern Bank

RED

BANK, N.

J.—Walter V.-

Fedorsky is engaging in a seeuri*
ties

business

Harvey
name

from

Avenue,

Economic

Development

offices

at 252

under the
Planning

Company.

firm

■■

and;

The Commercial and Financial Chronicle

(2196)

ontinued from

world that

first page

We See It

for

markets for their products in this
country often would mean more to foreign peoples than
our aid and has meant more on more than one occasion.
receiving them. Good

They Want Our Goods
All the world, or

not at this time headed for
any severe

are

depression. In that event our position abroad will be much,
improved and the Kremlin will have to look elsewhere

nearly all of it at any rate, seems to

hunger perpetually for' products available here and often
available only in this country in adequate amounts. The
amount of the good things of life we enjoy and call normal
of course, the envy of the rest of the world. At bot¬
tom, the reason many of these foreign peoples do not have
these things is found in the fact that they do not, possibly

theme to

economic

in its

use

look the fact that

publicity.

But

must not

over¬

have built up and are
building up an
which carries within it
many weak¬

situation

due to all sorts of panaceas and
adverse conditions, real and
nesses

quack remedies for
imaginary. It would require
a
good deal of optimism to believe in any event that we
should never have another serious
depression, but in the
circumstances now existing we can
hardly hope to escape
indefinitely.
More realism and frankness
selves would help us abroad.

talk

our

about

our¬

not, produce them or their equivalent in
amounts.- It is a fact, however, that often

estopped by tariffs and other restrictions from shipping
the products of their labor to this country to be exchanged
for what they want of us. Thus our protectionist policy
is one of the underlying causes of a certain ill-will toward
us—an ill-will which large gifts out of the generosity of
our

hearts do not erase.

price of a good many products we get from abroad very
substantially. One may well believe that any real antiUnited .States feeling widely spread among Latin Amer¬
icans is more closely related to prices of copper, oil and
a few
other'products than to any of the reasons com¬
monly mentioned. For years we had been paying South
American producers far more for their copper than they
could possibly have gotten but for our generosity. That
bonanza seems to have come to an end, and its aftermath
pleasant to producers. It would be unfortunate if
the powers that be in this country thought of our Latin
American relations solely or even chiefly in terms of what
is not

aid.

A number of

foreign countries are now reported to
business and the outlook
know that anything in
the nature of a deep depression in this country is certain
to curtail markets here for their products. They are said to
be afraid the recession (presently grown into a depression)
may "spread" to their countries. Of course, this is a situa¬
tion made to order for Russian propaganda, and the
Kremlin is making the most of it. And we ourselves are
responsible for a background which makes all this the
more difficult for us.
The Russians have been at pains to
give the world the impression that somehow there is a
great contest under way in the world between communism
and the free enterprise system.
The communist economy is depression proof, accord¬
ing to its disciples. There is not and there can not be any
such things as a depression or
unemployment and all the
rest that

say.

are

much dreaded in

the proselyters for Marxism fail to

course,

tion the fact that the

fare far

men¬

peoples under communist rule at best

than do most of

worse

free economy, so they

even

in the midst of

depression.

But there is another aspect of this situation.
There can, of course, be no denying ups and downs in the
Tree economies of the world, and sometimes

debt,

that lor

mortgage

nancing of purchases of durable
goods. Hand in hand went a sus¬

mercial

But

other words, we have been
boasting that we, too,
economic system that is as resistant

have

against depressions

the communist
system.

;

in this

world

country conditions such

those existing in Russia

would be called

a
perpetual depression, but we have said
prosperity and growth are to be continuous in this:
country, and all too many abroad have taken too much

that

stock

our

boastings. We have deceived ourselves in
which is bad enough, but in addition we seem
have deceived
many of our friends and admirers in

this matter,
to

other

lands.

The

mere

fact that

are

now

state

of mild recession and
may

^is costing
not have

possibly be headed for worse,
good deal of prestige abroad which we need

us a
lost and would not have lost had

been less

naive in
rent

supposing and claiming that the problem of recur¬
depressions in business had been brought to an end.

Now it may be, and we
before much more time has

ardently hope it will be, that
elapsed it will be clear to all the

far

above

have

sustain¬

any

automobile

given level Of personal income.
maturities,

A further extension of

expansion,

industrial

while

—

regultj ^operations in -the
automobile, non-ferrous

steel,

and

other

industries

are

substantially below desired levels,
and
although present operating
rates
are
assuredly
subnormal,
mod¬ many
industries
now
seem
to

only briefly by
cyclical corrections in

1948

of recent years.

In its course^

have
eral

sufficient

years

capacity for

for

improve effi¬
development

the

for

products

new

sev¬

Outlays

come.

modernization,

the ciency, and

remaining backlogs of private de¬

continuing
mand were filled, consume r s
apace, but they are not likely to
bought
enthusiastically
against take up all the slack arising from
their future incomes, and business cutbacks in the
expansion of ca¬
expanded
its
facilities
aggres¬ pacity.
sively to meet anticipated growth
A
further
unfavorable
markets

ahead.

years

expanding
swiftly,
that
the
volatility of consumer
buying of durable goods was re¬
asserting itself, and that the rate
of aggregate growth in the econ¬
was

subsiding.
1948

increased

two

peak

business

rate
of
5.8%, and
physical volume of the total

output

1953-57

the

5.3%.

the
na¬

the

again en¬
business cycle, how¬
rates were no

growth

forecasters
this

and

—

period, which

compassed
ever,

—

average

annual

tional

and

respec¬

the

magnitude

boom

the past

three years was sparked by
cession of dynamic thrusts.

automobile

a suc¬

Resi¬

plant

had

spending
equipment gained

and

momentum

industry

Business

year.

about

mid-1955

late

1955, and were
further boosted by the Suez cri¬
sis.
The
trend of
private con¬
struction
was
steadily
upward
and sharply rising defense
outlays
between

added
boom.

spurred

period

mid-1956

the

and

further

most

factors

that

recent

this

accumulation

business inventories.

the

was

throughout
the

pressures

Production

mid-1957

Many of the

the

past

may

ably less active in the

dynamic

be consider¬
years

ahead.

decline

prof¬
be¬

business

Even

years.

Building—Residen¬

another

provides

by easier financing terms in
payments

ated

the form of lower down

and

longer

maturities.

mortgage

1953 to

From

1957, in the face of
disposable income,

the 20% rise in
home

mortgage- debt
increased
than 60%. v.The possi¬
bilities for further;'sizable growth
by

less, limited here
•; debt,
since

probably

are

than

for .instalment

Since

1953, the growth in corpo¬
profits
before
taxes
has

lagged

materially behind the
in the value of output,

growth

this

and

outlays
in

the

though

even

plant

four

business

equipment

and

inclu¬

1954-57,

years

sive, totaled

than

$125

bil¬

lion.

Meanwhile, the recession
has greatly intensified the squeeze
corporate profits, and

is in sight

relief

yet.

Thus, whether
the criterion be capacity or prof¬
its, the prospect of a resurgent
business investment boom appears
as

remote for

some

years

Consumer Durable
cent

come.

Goods—Re¬

developments have emphati¬

cally demonstrated the renewed
volatility in consumer demands
for durable

goods.

with

new

fairly

most

other

with

Well supplied
automobiles and

durable

instalment

levels,

and

equipment,

debt

with

record

some

prices at
have cut

peaks, consumers
sharply their expenditures
such products.

new

back
on

Today,

consumer

tomobiles

and

buying of

durable

au¬

in
general is probably less than nor¬
mal; some reserve in buying and
spending may be building up to

goods

boost
activity once the outlook
improves. A resurgence of buy¬
ing comparable to the record year

1955,

however, does not
One

prospect.

reason

1953

1957,

rose

almost

expansion
after taxes
the

the

seem

is that from

instalment credit
50%
while the
personal

was

course

income

about 20%.

the

consumer's

are

in¬

and

underwrite

liberal financing terms.

However,
t'Hc Housing Act of 1958 has re¬
home financing terms to a
point from which further effec¬
liberalization

tive

inglv difficult.
The

trend

Thus,
boom, much

borrowing ca¬
pacity may have been depleted.
Furthermore, this enlargement

increas-

seems

...

residential

new

construction in the past two years
has been distinctly easier; in fact,

despite continuing large removals
obsolescent

housing from the
privately financed hous¬

market,

ing starts in 1957 dropped below
million for

one

eight

doubtedly

the

had

time

first

credit

Tight

years.

un¬

restraining

some

effect, but it is clear that popula¬
tion pressures have lessened; the
recent

decade

has

years

one-half

about

formation

household

rate

peak

and the birth rate

ago,

eased.

.Also, the number of'
has
sagged
recently

marriages
with

the

The

only
rate of-

averaged

the

ac¬

profit margins had been
feeling the pressure of wage-costprice
inflation for
some
time.

in
were

when

programs

unsatisfactory.

large

tivity,

and

continued upward until well into
1957.
Exports rose sharply be¬

ginning

are

fore

trends,

the latter part of the period.
The business

investment
its

investment

historic

many

long-term

despite

2.4%,

under

projected
of

is the profit picture; businessmen
do not tend to embark upon

rate

1953,

successive

cycles,
industrial
production
spurred by the Korean War
had

are

factor

the

This increasing faith in active and
sustained economic growth seems
to have ignored the fact that ca¬

recent

example of an industry in which
the
pressure
of rapidly
rising
costs has generally been moder¬

little

1953, was capped by the
strong private investment boom

From

laxed

terrupted

years

in¬

be supported at

credit that could
a

has

and

market

the amount of instalment

creased

dustries advanced by about 412%.

postwar

omy was

monthly

and

produce

growth

affected by "rolling adjustments"
in
individual industries and in¬

pacity

reducing

rising volume of goods

able

metals

banner

course,

capacity appears
by some 22%

rate

economy.

the

beginning to wonder. Of

turities,

payments, has minimized the im¬
pact of advancing prices upon the

used

dential
building activity soared
through the first half of 1955 and

They Wonder

trial

From

1957, for example, indus¬

increased

As.,<a

fi¬

nancing was 18 months; today the
generally accepted maximum,' is
36 months. This extension of ma¬

guarantees

boom

time.

important industries.

and to provide the increased serv¬
ices
required
by an expanding

erate

the

car

new

government

facilities to
a

This

term

surance

expansion
of
industrial
plant and equipment and of com¬
market

1953

—a

example,

1952, lor

maximum

production in 1957 averaged only
about 6% higher than in 1953 and
activity in the durable goods in¬

tained

prise system had been so buttressed and so modified that
depressions of the older type are a thing of the past. In

the

under

Federal programs and the relaxa¬
of terms on instalment fi¬

rate

Now

credit

tion

annual

by¬

many

the progressive liberali¬

have taken great pains
during the past two or three
decades to shout from the
housetops that our free enter¬

period

One

ished by

zation

1.7

—

product of
the
recent
business
investment boom is the greatly
increased productive capacity in

well

considerable

Business Investment

they enjoyed a
of borrowing and buying
capacity which was further nour¬

good many
tremendous

years

tively,

over

cently

tial -V building

And Economic Growth

better than

distressing

unemployment

the

Residential

Business Recession

and

be very anxious about the state of
here in the United States. They

personal debt took place with
help, of a progressive relaxa¬
tion of financing terms.
As re¬

that

reserve

Our problems have now been complicated by the
development of a recession in this country, which along
with other factors has reduced the demand and hence the

is known

Continued from page 7

sufficient
they are

Thursday, May 15, 1958

however, does not seem in pros¬
pect, which again suggests that
expansion of instalment credit in
the years ahead may run below

are,

can

downturn

business.

the baby boom
and
early- postwar

day when

the

war

will

stimulate a. vast new
in home building is prob¬
ably some five years distant, if
not
more.
Furthermore, during.
the next several years fewer peo¬
ple
will
be
entering
the
age
groups that are customary buyers
of new housing. Meanwhile, high
building costs, together with the
current uptrend in local taxes and
commuter fares, seem to be pric¬
ing many home buyers out of the

years

upsurge

market.
Other

Private Building

pounding

-r-

Com¬

this

prospect for
dynamism in the important
rable
goods
industries
are

signs

that the long-lived
private construction of

buildings,

shopping

less
du¬
the

boom
office

centers and
have passed

similar facilities may
its
peak.
Lower
earnings

are

spurring

business
managements
greater economies in adminis¬

trative
overhead, and, in some
parts of the country at least, de¬
mands for additional

have

eased.

The

office space

expansion

of
marketing
outlets
is
slowing
down, reflecting the overbuilding
of such projects in recent years
and

the

slackening of the subur¬
housing boom.
Since these
categories of construction activity
ban

essentially

are

rather

than

nomic

growth,

here

will

await

where

consequences

generators

eco¬

renewed

presumably

vigor
have
to

revival of expansion else¬
the economy.

Rising Government Needs—
While the return to

an expansive,
dynamic environment in the pri¬

vate
pears

lic

sectors

to be

some

requirements

government

are

the

economy

ap¬

time ahead, pub¬
at

all
a

levels

sustained

Number 5742

187

Volume

upward trend...Defense spending,

complicated

and

This does not imply that accentuate rather than moderate
entering a period of the
amplitude
of
the
business
economic
maturity and stagna-, cycle.
;

growth.

in the years

least

immediately
ahead, is scheduled to advance
as
military equipment becomes

are

tion.

Republicanism Today!

now

that
serious
attention
given to measures and

strongly

If government spending is to
make its maximum contribution
to economic recovery, emphasis
should continue to be upon the

suggest

however,

does,

costly, and as rapid technological
progress greatly increases the rate
of
obsolescence.
Indeed,
obso¬

must

the

flagging growth forces can be re-

rather than upon the initiation of

be an unsettling as
stimulating force, since

may

policies designed to establish the
kind

requirements of
have a sig¬
nificantly different impact upon
industry than the procurement of
conventional heavy equipment

the

new

weapon

where

environment

kindled

where

and

economic

the

resources

shifts

necessary

new

programs.

Also,

•

govern--

missile

age

may

resumption
of growth can
more
readily be achieved.
In
the
field
of
government

government

—

that it

means

honest,

never

by extrava¬

gance, by crisis, or by class.
"Americans
know
also
that

mum impetus to

the

constitutional government
dependable government. It
means

ment spending is to provide maxi-

for

economic growth,
it should be directed largely into
projects that will give a stimulus
policy, much has already been to
private investment. Express
done
to help cope with the tc- highways, slum clearance and airsuch as ships, guns, tanks and air¬
cession.
Most current measures, port development are examples of
craft.
*
' "T -'/"V-". ■
naturally, are directed to the im- the types of projects that are
The need for more public works
mediate difficulties brought about likely to provide the maximum inof virtually all kinds assures that
by the decline in business rather centive for expansion in the prithe rising trend of construction
than
to
the basic
problems of vate sector of the economy,
outlays by state and local gov¬
long-term growth, but the two " Taxes — In comparison' with
ernments will persist for,, many
are not unrelated; obviously longhigher government expenditures,
years.: However, the rate of ex¬
term growth cannot be resumed a reduction in income taxes prepansion could well. be slowed .by
until- the; present
trend of the sents many advantages. A tax cut
the
problems
the

convinced that

by now the American people
Republicanism is simply another way of
saying 'responsible. government' — that it means
am

know that

acceleration of existing programs

lescence

well

(2197)

The Commercial and Financial Chronicle

Republicanism
will

one

has used available

and

use

responsive
which

means

This is

government.

needed to counteract

resources as

economic

bureaucracy, but rather private
initiative and vigor, will be pre¬
served
as - the
mainspring of

financing,

numerous

which; have become evident/; Cost

increases, are.pt^e&ing^hard-upon
the taxing and,borrotvipg icapaci-

and vlocal ;povern-

ties .of cstate;

ments, and pressures are growing
to
shift
more
of - the
financial
burden

Federal

the

This

ment.

Govern¬

im¬

raises

tendency

portant political as well as fiscal

problems which may lead to pro¬
tracted
legislative
debate J. and,
even if action is. taken, to further

until

delays

machinery

administrative

the

can

be put into opera¬

of the
Federal highway program enacted
in 1956 aptly illustrates the lags
between planning and execution
of such public projects.'
tion.

slow

.The

progress

A fundamental question

stimulation

much

is how

economic

growth .may be provided by in¬
creased government outlays/ Pri¬
vate
investment
in
productive
facilities

upon

completion

gen¬

erally' creates a permanent in¬
crease in job opportunities, output
and incomes,

and adds to the pro¬

ductivity of the labor force. Most

public works, on the other hand,
usually reflect a delayed response
to the needs posed by an expan¬
sion
of population and activity
that has already taken place, and
while they are assuredly essential
to economic progress, their con¬
tribution to growth appears

and

distant

indirect.

Appraising the Outlook—These
cast

considerations
upon

diate

some

doubt

the prospects for an imme¬
resumption
of
economic

yet

employment;

support

others

ment

easier

credit

terms.

making

available

How-

increased

our

economic society.

economy's exposure to

instability

economic expansion

and promote
Certainly the

wage-cost-pi ice sp a
as
tnbuted importantly to o
p

the

much

have

immediate

business investment.

Nonetheless,
be made £or

strong

a'reduction

case

can

m income

part of a broad reform
designed to provide some
jmpetus botb jor recovery and for
iong-term growth. If the maxi-

taxes

program
-

«'*

becoming

dy¬

namic.

Thus,
sibility
ditions

there is the real
that the return to
of: relatively
full

pos¬
con¬
em¬

ployment
may- be
slow; that
; unemployment,
because of con¬
tinuous new entrants to the work
force,

may

remain

and that business

troublesome;

profits will con¬

as practiced in recent years
distinguish from New Dealism when

unessentials have been stripped off.
overlook

the

substantial counter¬

those

ready been taken, and the further

inflationary pressures which
plunge the economy into re¬
peated and possibly more serious

fact

efficacy of govern¬
countering
a
business

recessions in the future. If

minimize

cyclical
that

downturn

cifically,

have

al¬

could

the

ment

that

measures

not

unlimited.

government

not

bring about

long-term

Spe¬

action

when

the

with
the

large
1930

spending^ programs in
demonstrated,

amply

they do little to
rekindle^ private
lnvestment activity or otherwise

substantially to their holdings of
governments and other securities,
and |be money supply has ex-

significantly as a result,
to stimulate economic growth. In
'Moreover, a further rapid increase
the present environment, the con«n tbe money supply is in prospect
tribution
of
new
public works ag
hanks finance the Treaseither to moderating the cycle or
ury's cash deficit — large even
panded

promoting growth would be very

wjthout

doubtful.

half of this year.

prior

Despite

planning

and

preparation, long time lags are involved between the approval of
public programs and their translation into higher employment and
incomes. Consequently, the major

Credit

tax

cut—in

the second

policy has thus already

performed its essential task in a
recession. Pressure for liquidation
credit has been avoided, and a

should

now

the

I A I Securities Corp.
Colo.—I.

DENVER,

Se¬

curities Corp. is engaging in a se¬
curities business from offices at
3385

South

ficers

Bannock

Henry

Of¬

Street.

Johnston,
President; Frank W. Lehy, VicePresident; and Melvin C. Snyder,
are

Secretary-Treasurer.

Ralph Podizmek Opens
CEDAR

RAPIDS, Iowa—Ralph
is conducting a secu¬

Podizmek

rities business from offices at 138
23rd Street

firm

flexibility in providing tax relief
and taking other policy measures
at this time. It would be tragic
if

we are

endeavors

our

porarily inflated, rate of economic
growth over the long-term.

and

indeed

ness

rapid resurgence

growth

earnest

swings of the busi¬
cycle, our most promising
course today is to promote condi¬
tions conducive to a soundly sus¬
tainable, as opposed to a tem¬

can¬

is difficult to

problems. The benea s of n major cause of the current reces¬
sion
is
proved technology and
■
mum
economic stimulus is to be
(fverexpansion by busi¬
capital investment in impoitent reaUzed how6ver, (i, tax reduc- ness and overborrowing and over¬
industnes tend to be preem ted lions
individ'uals should bo buying by consumers. It is difficult
to avoid the conclusion that these
by a minority of labor instead o
«across the board" to include relief
being passed on to consu ne s i
,
those income groups which are problems have been considerably
(he form of lower prices. Producenhanced by the developments of
'
,* 1
XclX
M UX Ll^CtO vl O
,arge purchasers UI vV/UC3 Uli l v<i vl ti
of consumer dutionicosts have become more rigid-,
rable goods and suppIiers of risk the recent boom years, and that
with
inflationaiy psychology
more effective restraint then
capital; (2) some tax relief should
the air, price competition has bee.
well have minimized the
be provjded for corporate busi- might
Jiampered and some goods appea
ness>
especially relief that will problems of today.
to have
been priced out of' the
Perhaps the greatest deficiency
Simulate
expenditures
for immarket. Moreover, this envirorin economic policies of the recent
provements
and
modernization;
ment has contributed to a rapid
past
has
been
the
absence
of
and
^
foreign investment by
increase in debt and a corresponc un]^ed states companies should be budget surpluses sufficient in size
to implement forcefully the re¬
ing rise in carrying charges. Recncouraged- a tax program of this
strictive work p r act i ce s hove
strictive policy of the Federal Re¬
na^ure> with emphasis upon reviserve in fighting the inflationary
Uij j1'* educed productivity an<i si°n ar>d reform, would provide
costs. These policies
subsfantial incentives to risk pri- spiral; a sounder budget situation
attitudes adopted by both loboi
have
had
the
additional
va^e capital, to modernize produc- would
and business should be caiefully ^-on
of affording greater
facixftieS
and
to
develop advantage
ent

questionable whether the public
sector, over the long run, is likely
to grow much faster than hitherto,
or
whether the impact of public

people should know that, despite
phrases and somewhat greater moderation in¬

action, Republicanism

for

individuals

Presi¬

—

The American

business decline.
light of the present
for

plus effective support for
and security
world—there, in a nutshell,

Republican case before America."
Dwight D. Eisenhower.

fine

present

reduction

management of business and
follow policies that wilt

cyclical

will

industrial capacity situation, is a

labor to

reduce the

the

Nor,

Management diiu Labor—There
luaiiascHicjii and
""J1 ,
broad challenge first ol all

s a

spending

—

is the
dent

automobiles and other durable
goods, which have borne the brunt

ever,.the challenge is not to government alone, but to all participants

government at home

Eisenhower

Pres.

programs essential to America's peace
in this gravely menaced

undoubtedly bolster retail sales in
the aggregate, although it is less
certain that a large portion of the

designed to encourage invest-

are

growth at an active rate once the
economy has weathered the pres¬
ent
recession.
The economy in re-examined in
^
V1C foreign markets, and would bring
the next several years is unlikely different economic environment.
an
jncrease
Public revenues.
to
receive
as
much
sustained
Government Spending —To the
credit Policy—The Federal Restimulus from those sectors which
extent that government
outlays serve bas aiready taken energetic,
imparted such strong buoyancy
provide work for the: unemployed acfjon to help moderate the deto the postwar era—the consumer
and
help support incomes and cjjne<
easing 0f credit that
durable ' goods
industries,
resigeneral economic activity, they began jate jast year has been redential construction, business
assuredly moderate the severity of
plant and equipment, and other a sustained business decline. How- markabiy aggressive and interest
rates have
come
down sharply,
private building.
And it seems
ever, as the protracted experience rpbe commercial banks have added

spending

America's free economy.
/
"So it is responsive, responsible

reversed.
Some ac- leaves a larger proportion of the
iions, such as the extension of national income to be Spent at the
unemployment benefits, are de- discretion of individuals and busisigned to ease the social conse- ness. Moreover, since funds are
quences of unemployment and to immediately released for spendpro vide
continued
support for ing, the delays involved in im¬
personal income; others involve creasing
public programs are
additional
outlays in
order to avoided. Thus, lower taxes will
is

economy

troubles, while taking;
that,-not some Federal

care

vestment
mek

was

Drive, S. E., under the
of Ralph Podizmek In- 1

name

Company.
formerly

Mr. Podiz¬
with
Dear*

Witter & Co. and Central Repub¬
lic Company.

com¬

this lack of effective re¬
straint during the boom by exces¬
sive
zeal
in
creating
deficits
during the recession.
pound

Government

tous

year

this

the

—William

deficits,
creases

merly with Axe Securities
and

Substantially heavier
however, with large in¬

dilemma.

CHICAGO,
the

recovery

appears

111.— Frances

subject

"Careers,"

the

dinner meeting of the Investment

credit is restricted energetically as
soon

Corp.

Distribu¬

Mazurk will be guest speaker, on

policy in a subsequent business
upturn and confront the Federal
real

Funds

Cgo. Inv. Women to Hear

ally complicate the task of credit

Counselled

tors.

in the money supply as a

with

Se¬

say,

corollary prospect, would materi¬

Reserve

Cohen has formed

may

fiscal policy is used energetically
in reverse when
business turns

upward.

Planning

(Special to The Financial Chronicle)

CROTO.N-ON-HUDSON,

$5-$10 billion curity Planning Co. with offices
not be calami¬ at 17 Well Avenue to engage in a
time, assuming that securities business. He was for¬

magnitude of,
or

deficits

Forms Security

under¬

Women

the

Chicago, to be held at

Chicago

Bar

Association,

South LaSalle Street, on Wednes¬

considerably
way, the business upturn may be
favorable environment has been
day, May 21, at 6 p.m.
impeded; if, on the other hand,
longer than is widely expected.
After graduating from St.
established in the credit markets
the Federal Reserve countenances
An
early
return
to the
high impetus of new spending proXavier
jor
the resumption of economic
College in Chicago and
a more
substantial expansion be¬
plateau of industrial production grams is likely to come after the
working for a short time in a loop
growth. The large funding of cor- fore
which prevailed through most of
applying the brakes, infla¬
economy has
already passed its

tinue under pressure

1956

and

garded
it

may

1957

should not be re¬

imminent. Moreover,
well take until the 1960's
as

before

the

ficient

thrust

regains suf¬
push industrial

economy

low point.

Furthermore, the record
projects initiated on a

shows that
small

scale

tend

become

ever

outlays
they require for their completion,
production to sustained new especially since programs adopted
to

peaks.
Implications for Action

Admittedly, this appraisal runs
counter to much of the economic

which takes
granted a dynamic economy
a quick return to long-term

-thinking of our times
!for

and

demanding

the

anti-recession measures tend to
examined

waste

and

are more

wise

critically

for

costly than would other¬
the case. Consequently,

the likely
ernment

less

extravagance and thus

result is that new govspending programs will

mortgage
house,
Miss
Mazurk
pressures
may
become
formed
a
partnership with her
progressively greater. Thus, largeliquidity; ample credit is scale deficit financing today would father, Anthony B. Mazurk, an
now available at materially lower
attorney and real estate broker on
undoubtedly add to the risks of
the
southwest
side
of Chicago,
cost f0 finance a business revival
the business cycle over the longwhere they have been since 1943.
when underlying demands regain
term.
their strength. However, the direct
The
task ahead,
therefore, is
resuscitation of these demands is
Jack Lann
twofold. One is to provide an en¬
beyond the scope and ability of
Jack Lann, associated with Mc¬
vironment conducive to the flexi¬
credit policy,
ble
and
orderly reallocation of Laughlin, Kaufman & Co., New
York City, passed away May 8 at
Opportunities and Limitations— resources needed to foster the ex¬
the age of 66 following an illness
pansive forces ahead. The other

porate debt induced by lower interest rates has helped to rebuild

tionary

business

Current impatience for additional
government action should n o i

1"0

yN r>

■#>

■30

The Commercial and Financial Chronicle

(2198)

from

page

14,000 banks of the country need
than 1,000 new presidents

polled

and

Continued

should be undertaken.

than

vicepresidents and many other offi¬
cers each year.
Most of these new
officers are, by the nature of our
was $31 billion, a rise of $18 bil¬
business, promoted from within.
way reserves
run from zero to
10% depending upon the size of lion in nine years: On both dates A recent study of the executive
the bank. In Canada 8% prevails businesses with total assets under staff of Chemical Corn Exchange
with an additional voluntary 7% $250,000 owed a vast prepondei*- Bank, for example, disclosed that
which may be invested in Treas¬ anee of the number of loans. In more than nine of every 10 offi¬
dollar
terms,
though, loans to cers began their careers with us,
ury Bills or day loans.
much moving up through the ranks.
It must be conceded that re¬ larger businesses were
greater."
One of our strongest
serves
appeals
represent a powerful de¬
(4) "Virtually the only institu¬ to the new employe should be the
vice
in credit
control, but the
tional source to which small, un¬ extensive
Federal Reserve Board has other
on-the-job training pro¬
incorporated firms may look for grams offered by all banks.
In
devices which may be used
as
long-term debt, and one of the addition, banks are offering com¬
successfully without at times so
few sources available to the small
petitive salaries to attract the type
severely
penalizing the banks.
is the commercial of people they want, and a wide
The most important instrumental¬ corporation,
bank.
(In October 1955) term variety of jobs is a plus to be
ity is that of open market opera¬
loans (having an original matur¬ found in few other industries. Be¬
tions, and I cannot conceive of a
ity
of
more
than
one
year) cause a bank must have a basic
situation ever developing in which
amounted to about one-third of all
knowledge of every business with
the Reserve Banks could not use
member bank loans to business.
which it deals, either as a lender
this adequate and effective means.
For the very small firm (assets of
money or an investor of trust
of less than $50,000) in all indus¬
Treasury Receives Earnings
funds, large banks have a place
tries, term loans constituted about for specialists in virtually every
Even
if variable reserves are
41% of all loans. This was a high¬ field.
continued, thereby retaining flexi¬
er
percentage than for any other
In appearing before you in a
bility for the Central Bank, it
size group except for firms with
would still seem more appropriate
discussion of so many fictions re¬
$25 million or more of assets."
to reduce reserve requirements to
garding our business, I cannot re¬
some
more
or
less
sist the opportunity to comment
permanent
Growth Industry
»level and use the flexibility only
upon
the splendid
groundwork
One fiction that is often pro¬
that your Association has laid in
in the case of extreme emergency.
moted is that
banking is not a
the direction of dispelling them.
The use of this device in the con¬
growth industry. The record cer¬
trol of credit gives to the Central
tainly disproves this, and nothing
Praises Tennessee Assn.
Bank: power to' increase or de¬
is
foreseeable
to
indicate
any
crease the earning capacity of the
Maybe it has been due to the
change in our course. Trends in
hardened
whole 'banking system.
history of banking in
This is
population,
number
of
family this
great state, with more than
certainly unlike the treatment of
moie

4,000

new

Banking Facts and Fiction

them

whether

While 19%

1947.

the idea, over 21% fav¬
ored it, and it is noteworthy that
the latter group represented about
of

the

deposits

and

1957,

Budgets lor 1958 call for

total of $128

million, according to the Associa*
lion.

the

Although it is not yet "off the
ground," and ABA has decided not
.

friends in the savings
business launched their

our

loan

advertising

increase of 28% to

total.

When

Thursday, May 15, 1958

compared with only $30 million in

opposed

one-half

million

two-

national advertising program

year

national

it,

sponsor

ing

national advertis¬

program

appears

ap¬

advertising program in
3 954, we are told that
only 12%%
of all insured associations partici¬
pated, and these accounted for
only 18% of total assets.
Now,

proaching the ignition stage under
the guidance of an independent
committee recently organized lor
this purpose. I hope that you will
lend

your

after

this

effort

five

39%
of their
representing a little

years,

membership

one-half

over

total

assets

It is encouraging also that banks

have been stepping up their indi¬
vidual volume of local advertis¬

ing

the

over

have

spent

are

total

Continued

decade.

last

banks

from

Each

one

has

responsibility

Relations

been

under¬

present has

the

first

promoting

our own

institution.

the welfare of

However,

I cannot refrain from
reminding you that we likewise
have the joint obligation of meet¬
ing our responsibilities in the gen¬
eral-welfare

ABA

reported

Public

which

for the last two years,

way
i

enthusiastic support to
and to the ABA Spe¬

National

Program

are

participating. Thus, by compari¬
son, we should be encouraged that
2,800 banks with $95 billion de¬
posits seem willing to join
in
launching a cooperative national
advertising effort.

member

cial

without

the

banking.— for,
climate, we

proper

certainly cannot progress individ¬
ually.
/-/■:/'
V-:'

of about $100

page

units and

any

prise

other form of private enter¬
except insofar as corpora¬
partnerships are subject

all

the

laws.

tax

Therefore,

the

loss of income from sterilized

which

serves

could

re¬

otherwise

point to

National

Product

expanding demand

for bank services.

tions and

Gross

Look

what

1900.

creased

happened since
population has in¬

172 million.

million to

from 76

Gross National Prod¬

profitably employed, in a way uct has soared
2,217% form $18.6
represents another form of tax billion to
$431 billion. Bank de¬
upon us. The irony of this is that
posits have zoomed approximately
the higher the reserve require¬
3,000% from $7.5 billion to $227
ments, the more likely we are to billion.
give the Central Bank an earning
Before World War
asset in the form of

bearing
from

and

note

that

the

Treasury Department.
the

New

Bank

the

Last year
Reserve

the Treasury

gave

into

Federal

York

interest-

earnings

flow

source

De¬

partment $142,000,000 of the $165,000,000
that

net

earnings.

interest

sure

member

bank

borrowings contributed somewhat
to this.

ing business, and

that is most

one

damaging to our public relations
our

pride,

accusation

that

the

oft-heard

bankers

stand

the way

bank

our econ¬

been

the

fore
It is

movements.

the

Tennessee

tion

was

aration

established

was

1807, that

you

have

progressive
noteworthy that

Bankers

Associa¬

resulted in the Tennessee Banking
Act of 1913, predating the Federal

Reserve Act.

specifying

The Tennessee Act,

minimum

capital

re¬

was

week

million.

inflation

course

greatly reduced the purchas¬
ing
power
of
the
dollar,
but
studies show that 50% of the $3,000 to

$5,000

group of families are
bank checking and sav¬

users

ings accounts, whereas 70% of the
$5,000-and-over group use these

nationwide.

that

was

Tennessee

the

now
popular "College
conferences
were / begun.
These regional meetings between

Day"

bankers

and

contribute

educators

should

substantially

better appreciation of the oppor¬
tunities offered by our industry

of small business, espe¬ services.
The
"middle
income"
cially during periods of tight families also are large users of in¬
money.
This allegation has led stalment loans.
to a most thorough survey by the
Our
population
continues
to

to college graduates
ful careers.
It was

Federal Reserve Board which has

City, sponsored by the Reserve
City Bankers Association and at¬

just presented

numerous

volumes

of its findings to Congress for its
consideration
of
the
financing

problems
the

Federal

small

business.

Reserve

points out,
"the aim of the investigation has

been to contribute to

wider pub¬

lic understanding of problems of
national importance and to pro¬
vide information helpful in form¬

grow at a rate of about 2.9 million
a

year

about 240,000

month.

It is estimated that

by 1965 it will

reach 193.3

million,

12.4% from

1957. It has been predicted that our

Gross National Product will range
from $550
or

27%%

If trends
to

are

to $600 billion by 1965,
to

of the

29%

from

last half

1957.

century

continue, it would

appear

seeking fruit¬
my

privilege

last

October to participate in one
of these conferences in New York

tended

representatives

Eastern

colleges and 14 banks.
Many of these meetings have been
in metropolitan cities
throughout the United States, and

held
all

them

educators
of

not

only have given

better

understanding
banking but they
bankers to develop
techniques in recruiting

the

have

field

enabled

logical to expect an increase of at
ing judgments on questions of least 30% in bank deposits over better
public policy towards them." Here the eight years ending with 1965. young men and women.
are some
of the disclosed facts: 1 think
you will all agree that 1 Your members also are to be
(1) "About two-thirds of the more people, more production of complimented for being among
small firms are in retail trade goods and services, and more de¬ the first to advocate a broad pub¬
and service industries.
In these posits
will
combine
to
greatly lic information program aimed at
lines working capital needs, some expand the demand for banking correcting the many misunder¬
of which are of a seasonal nature, services.
standings about our business. Due
are

apparently fairly adequately
care
of
by commercial
fcfenks, business suppliers and spe¬

cialized financial institutions such
as

sales

and

other

finance

This

should
that

com¬

outlook

may

for

our

business

help dispel another fiction

opportunities

banking

panies."

in part to your
initiative, consid¬
erable study has been given in

Banking Careers

taken

are

for

limited.

careers

That fiction

be largely our fault for we

recent years

City Bankers and
the American Bankers Association
to the need for coordinated insti¬

<2) "For the postwar period have not publicized all the
oppor¬ relations.
1046-55, all non-financial corpora¬ tunities. Such limitations as exist

tions in

the

S„ excluding

the

500 large ones, relied upon bank
loans for 7% of total resources as

compared with 1% in the financ¬

are

the

personnel

avenues

rather than

vocation.

The

relative shortage of manpower is
likely to be with us for some years

advertising

Attacks

largely in the availability of

competent

by both the Associa¬

tion of Reserve

tutional

and

lem of

have

ing:

most
save
or

classic

people.

for

reasons

Teachers

much

farmers,

need

factory workers,
bank examiners.

important
well

third

the

question:

How

of* savings

purpose

being carried out?

will

recall

bulk

-r

banks

investment
class

and

funds

the

100,000
(6)

saver.

"middle

class"

hope

you

from

will

term

this

discus¬

1958. gained

of inflation, the
savings bank ac¬
country is still well

years

count

this

under. $2,000.;
You

;!■:>

in agreement
conclusions: so I repeat

whether

J ?'//./;
be

not

may

with

middle

the.

delete

After

that

wealthy.

States in the

accounts.

new

average regular

are

They are
no longer the
deposits of the im¬
migrant, the poor and the small
permit

in the United

month of March,

one

accusation—"The

the

your

you

own

decide

institution

doing everything possible to at¬
tract, protect and reward thrift.
Only by doing these three things
can
savings bankers claim to be

pursuing still the ancient
the industry. V -. % V,;;

purpose

sion.

According to a poll taken
by Dr. Gallup several years ago,
6% of the American people re¬
garded themselves as members of

Establishing Cordial Relations
-

Finally I want to say a few
words
about
how
savings
and
class, 88% thought they commercial bankers can work to¬
belonged to the middle class, arid gether in the public interest. Stace
6% put themselves in the lower 1 have indicated that my state is
class." Surely
one
in
which
there
are *> tradi¬
it
would
be
an
absurd exaggeration to maintain tionally* cordial relations between
that you should only encourage the two
types of institutions, I
thrift
among
the 6% who put am sure that you will bear with
the upper

themselves in the lower class. All

those

that

I relate

a few of the things
being done in Connecticut.
save.
Of
primary
importance * is
the
The
question
remains
as
to .spirit of cooperation that exists
whether savings bankers are still .between the Savings Banks' Asso¬
seeking above all to encourage ciation of Connecticut and the

modest

them

their thrift.

need

means

so,

and

are

reward

Connecticut

There

about

The question remains

Bankers

Association.

their

never

any

hesitation

working
together,
in your bank
either to iron out difficulties or
are promoting
thrift. And this is
a
question that - you will very /to provide joint public service.
Eafch
association
has
a
liaison
largely have to answer for your¬
self. For my part, I can only tell committee, whose task is to keep
abreast of mutual problems and to
you
that, as a state supervisor,
dispose of them before they be¬
I have found that our mutual sav¬

•as

ings

whether

banks

are

you

actively pursuing

controversies.

come

Members

the two associations meet together
of the indus¬
in educational sessions concerning
try. Let me tell you some of the
reasons why I
have come to be¬ subjects of mutual interest; such
as, savings and mortgages.
There
lieve this:
at the grass toots they compare
(1) Great emphasis has been
notes,
do
away
with
potential
placed on bridging savings bank¬
misunderstanding, a nd improve
ing
to
the people,
through their services.
the ancient purpose

branches

that

are

shopping centers
employment.

convenient

places

and

(2) The school savings program

dynamically

growing

year.

(3)

The

so-called

every
■

give-away

Surely intended to
attract genuine thrift accounts.

programs

1955, when Connecticut

struck

are

moving the puoiic as it is
(4) In our state, savings bankers
one
of moving ourselves.
I am
(3) "In November 1946, mem¬ because, while population may in¬ sure it has been
disturbing to many gave no support to a bill before
bers banks, whose asset totals dom¬ crease 12.4% by 1965, those in the
of you
that there has been so the last
regular session Of our
inate the universe of commer¬ 25 to 45 age group will actually
much complacency on this matter.
cial banks, had $13 billion of loans decline slightly, reflecting the low
Legislature to increase the $20,000
For example, 60%
of the ABA
outstanding to businesses. By Oc¬ birth rate of depression years.
member banks failed to express maximum limitation on savings
tober 1955, the total outstanding
It is reliably estimated that the an
opinion when ABA recently accounts, and the bill died.

ing of the 300 large corporations."

fringe benefit methods of
"negative saving," mutual savings

You

savings bank deposits

types

ops

banking

fierce

competition
of thrift insti¬
not to mention the van-

other

tutions,

shall pass on to our very

Despite

from

(5)

sav¬

Savings Banks' Performance
So

Complacency

the

for

marriage, for furnishing
a home,
for raising children, for
sending them to college, for a
rainy day.
And this applies to

public

In my humble opinion, the
us is not so much a
prob¬

before

Savings Banking
And Commercial Banking

instrumental in the prep¬
of state legislation which

quirements for banks, restricting
typified by the $25 per
lending policies and prohibiting
family.
The "middle in¬ the reduction of cash on
hand and
come" family fell in the $1,000 to
due from banks below 10% of de¬
$1,500 income group. Now the mand
deposits, is still in force
"middle income" family is in the
with few amendments.
$4,000 to $6,000
income group.
Today your group is given cred¬
Since 1945, the number of Ameri¬
it for taking leadership in a pro¬
can
families having incomes of
$5,000 and over has risen six-fold, gram for improved' public rela¬
tions
for
the
banking industry
from about 3 million to more than
omy

Another fiction about the bank¬

and

II,

has

Small Business Credit

the first

Tennessee

has

126%

its share of economic strains since

Mutual

was

tragic disaster in the
floods, the two associations
worked together in a way that will
never
be forgotten. They jointly
form of

issued information trot only

guidance

bankers

for the

the

stricken

areas, but to assist the
victims, themselves in securing fi¬
nancial relief. When the trouble
was

over, the associations joined
together in publishing a booklet to
help bankers to prepare for pos¬

sible

future

emergencies,

and

avoid the mistakes that had
made

the

past.

been

Incidentally,

Volume

Number 5742

187

The Commercial and Financial Chronicle

few in the banking community of

Connecticut

that

(2190)

seer,

smart young

man boasted that or/dead?"
This was the tricky
could get /the better " of the question, for if the seer replied,
and trick him into making a "Dead," he would release the bird
made available to other financial mistake. He approached the wise
unharmed; :while
if
he
said
institutions
whose •• offices
had man,
holding ; something
in his "Alive," he could break its neck
been put out of business. At the hands. _He
said, "What have -I With a mere flick of his thumb
present moment, the two associa- here?" Without even looking at But when he asked, "Is it alive or
tions
are
working jointly on a him, the wise man answered, "A dead?", the wise man looked him
study of Civil Defense procedures bird." That was correct. But then in the eye and said, "The answer
for banks in our state.
*
♦,
the young man asked, "Is it alive to the question is in your hands!"

will forget the fact
savings bank facilities were

Public

Utility Securities

...

resist

cannot

about

extreme caserof

one,

eration
Until

mentioning, also

between

coop-

recently they \ even
engaged the same "counsel,,and I
understand that at a hearing be-

fore

very

Committee of

the Banks

Jobs for June

of the

bill

auv

one-half

behalf of one,

numerous

are

salaries

rising at

last year, competition prevails, and
slower rate. Firms interviewing are

state

Suggestions

Offers
To

-I

sum; up,

AAbout

ofcomplete y

i-:

'
n

should

•

C+ SS

,»

employment
u

like .to who have

^i°u a few suggestions siderable

savings^ and commercialThis
In the first

bankers.

many offers as last
Technology graduates,
but the offers are later coming in.

for

to expect

pickup

a con-

actual

during

Msy

job canceled,
und

youra. p p o l n

supremely

t e d

well.. Then

•

tgsk

would

employment

hsve been
rent

is the gist of

preliminary

outlook

over

colleges and universities.

difficulty. Some firms have
but the last two years

place, never report by Northwestern National
forget the traditional purposes of Life
Insurance
Company.
The
savings banking which have been fjrm located in
Minneapolis, Minso
clearly stated by the courts, nesota, is now undertaking
its
Make it your primary objective 23rd annual
Spring survey of the
to

5? l°,°k pretly P™™18" ToP
men in as great demand
00 Placement officials, as ever; marginal people having
reason

which, if followed, mi§ht help to cornrnitrnents
solve the problem of relationships early»June.
between

prospects

sbnormul

demand

thut

cur—

still

satisfactory,
In the School of Business Administration, cancellations have been
more than offset by new reserva-

100

tions.

Total

job

offers

Columbia

University:

"Less

hi'ffprtn eivpei^refuI
Advance reports from key than one-fourth the actual offers
thPHPht'
ttvd
be schools in the survey reveal that
as at this time last year.
Firms
S JVfilr indmlrv to
matly firms have cancelled their picking off top flight men, but
tn

mav

see

whether^itadvantage
cannot be tuined to
your own
through^the
medium of objective self analysis,
I

would

specific
It

also

matter

tne

.mentioni

uurtis

-Bill.

that two possibilities
presented themselves to you
as savings bankers, as well as
to
commercial bankers. Two possible
appears

interview

schedules- this spring deferring action on other candibut G^ber fjrms have applied for dates. Invitations to visit plants
and fju6d many 0f the gaps left are sharply reduced. But all docby cancellations; some schools actually show a net increase in number

recruiting firms

over

last

ear

have

courses

conduct

bonie

discriminationi in favor-of

per

0f fewer

men

the

outlook

general

im-

12 %

tax-liee reserve. proves by mid-May or June, they
Others
have
more
objectively will have lists of additional
qualistudrnd the question from another fied men avaiiable.
your

if"ms'crtmlnaUon exLTit shoufd
whether

determined

they

fiee leserve tieatme

to, take
tion.

t. I uig

intense

demand,

Association

National

But

are

account-

are

competition

for

jobs

has

complete,

already

ap-

parent that a fairer basis for allowing tax-free treatment of bad
debt reserves should be arrived at.

present
system
leans
too
heavily upon experience with bad
debts during years of prosperity,
and serious inequities exist in the
treatment of individual commercial banks—those with the lowest
historical
losses
being
severely
The

penalized.

have

likely to have to "scrounge a bit
for themselves," as one placement
official put it, among smaller

briefly

this

outlined

situation because I want to suggest
that the controversy over
be

standing

companies

recruiting
here this year than last. But the
majority of actual job commitments are being deferred till the

down

one-third,

perhaps

but still enough to absorb most or

all

engineers

arts

June.

Probably

business and liberal

some

unplaced "at graduation,
however. In spite of some cancel¬
men

lations
many

firms

offers

have

will
as

about

last year—500. But
fewer per com¬

average

Georgia Institute of Technology:
"Number of recruiting

firms down

Nearly all are look-

ing for fewer men.
The upper
half of the graduating class will

<pbe

njng
creep

rocket-like

salaries

has

rise

slowed

beginto

Salaries are up, but by from
Average offers report¬

3% to 5%.

by various schools are running
to $500 per month for
inexperienced engineers, and $380
to
$400 for non-technical grad-

about $475

Uates.

could

should

considered

reasonable

should

industrial

was expected to be
of July 1 some 54,000

had

contracts

The loss did not

seem

been

obtained

to have any

see."

accounted for

37%

service other than electric.
of

Residential

commercial 16%,
industrial 30%, public authorities 5%, and other utilities 11%;
Residential electric revenues averaged 2.81c per kwh and annual
usage 3,346 kwh, compared with the U. S. averages of 2.56c and
3,164 kwh, respectively.
revenues

1957,

industries, and share earnings

were

80c

versus

79c in the previous

year.

Electric co-ops serve a little over half of the farms in

Service supplying power at wholesale to 31 co-ops.
The company and the co-ops maintained constructive relations for
over 20 years, but in recent
years the co-ops have been trying to
invade the industrial field, which the company is resisting.
In

May last year a group of nine co-ops (of which eight are served
by the company) filed a request for a $42 million REA loan at 2%
in order to build a large
generating plant. The proposed plan was
designed principally to supply a projected aluminum plant, since
only about one-fifth of the generating output would be required
for present customers.
before the

Apparently the application is still pending
REA; possibly the present recession in the aluminum

business may account for the delay.

$47 million for 1958. Four 150,000 kw generating units are being
built for the New Albany station and units are scheduled to go
into service in August and December, 1958, and January and

October,
Power

building

1960. The company is co-operating with Indianapolis
Light to develop a coordinated program for future
of larger and more economical generating units and

utilization of transmission facilities.

better
In

May, 1955, the company asked for a rate increase of about

tion in

October,

Commission

The

few days after arguments had been completed.
a fair return
of only 5.4% applied to

allowed

rate base

only slightly in excess of original cost. The company
promptly replied to the Hendricks Circuit Court for relief, fol¬
lowing which the Cbmmission issued a revised order raising the
rate of return to 5.7% and permitting a higher rate base—result¬

ing in

rate increase of $3.6 million, which (in modified tent)

became effective March 26.
per

and

The increase was equal to about 36c

Later, however, the

share on presently outstanding shares.
electric

co-ops

appealed to the Hendricks Circuit Court,

apparently the increased rates for these wholesale customers
eliminated, which would reduce the total amount of the rate

were

increase moderately.

Capitalization at Dec. 31, 1957 was approximately as follows:
Millions

Percenta^

51%

—

or
-

nearly

the

•There

technical field

enough to absorb

all

available,'

Max L. Kales

are

now

outstanding about 4,839,000 shares.

The number of common shares has been

during 1957-8 by conversion of the 4.20%

stock, the remainder of the latter issue
April this year.
and 1953.

Kales, limited partner
Co., passed away

tion that was

May 3.

million mortgage

of which $23 million was used to

has

until June 1 this year

retire bank

susbtantial line of bank credit available

which it could presumably renew without

difficulty.

■

For the 12 months ended

share compared

maintenance

included

$2.74

Last year's

non-recurring item of ovef $2

the comparison between the two periods.

Selling recently around 41
with

March 31, the company earned

with $2.61 in the previous year.

expense

million which improves

in A. T. Brod &

having been redeemed in

The company last September sold $35

The company

loans.

increased about 6%

convertible preferred

Common stock rights financing was done in 1951

bonds to institutions,

Max

100%

$354

graduation.
Good demand for
business graduates, especially accountants. Liberal Arts show a big
drop; lower half of class will
probably have some trouble. But
there has been a noteworthy

preliminary one, and that the
whole employment picture is sub-

118

equity*

Common stock

r-i

California at Los

University of

all

Indiana,

with Public

Angeles; "Job offers to date only
about half as numerous
as last

While the industrial proportion of revenues 'is
moderately
high, revenues in the first quarter of 1958 were 2% above the
previous year despite the slow-down of automotive and affiliated

but

and

notice¬

earnings.

has

company

sales

year,

served

customer

Preferred stock

close with

this

and some will probably be
unplaced at graduation. Prevail¬
ing employer attitude—wait and

the ject to change in the next fewmonths; the final score for 1958
may varv considerably from toput to him. One day day's appraisals,

The

from

revenue

comparatively short time;

pending.

were

able effect

jobs,

story of the wise man from the
who could answer any ques-

east

other

others

sales

$181

for

compromise

Long-term debt

found for arriving at a

annual

little trouble, but the lower

pickllp in the first half of April
governments will probably take Many employers
expect
next
college men than last year, year's recruiting demand to be
commercial institutions. I feel sure
that some common ground can be
The report emphasizes that it is
at
1957 peak,
in ent

million

made up

half will find stiff competition for

this still means

approached in an underway by both savings and

area

The company lost its most important industrial customer
(du
Pont) around mid-year. Du Pont had operated the Wabash River
Ordnance Plant for the Atomic Energy Commission but this was
closed and the facilities placed on reserve.
However, the $2.7

rural

pany."

have

The

$4.5 million but the Commission summarily denied the applica¬

come to the campus. Placement of
some
of them may drag on
throughout the year,

Aircraft
other defenseassociated industries are down
sharply in number of openings,
commercial
bankers
I
see
no Diversified
chemical companies
reason
why any savings banker are still vigorous recruiters. Bankwould want to take the position
life insurance and retailing
that while savings bank reserves are active. Wlt^ less competition
were justified, no equitable treatfr°m business, Federal and local
well

100%

about 10%.

the sub-

ject matter of the Curtis Bill

companies and firms which do not

Recommends Common Ground

interest

will have from 50% to

State Banks is definitely returned to the Amerengaged in a study of the problem ican college campus. Just-averof bad debt reserves in commer- age
and below-average seniors,
cial banks. While this work is-not even some of the engineers, are
yet

campaign

will be

•

The

counties.

additions to plant totalled $45 million in 1957 and are estimated at

New York University; "Because

firms,

broadly diversified
Among the larger industries served

activities.

grad¬

positions in merchandising."

offers

also

antg

Supervisors

University of Pennsylvania: "Job

™/dof de^fmen

similarly objective posi-

are

industrial

interested in staff

business school

but

uates

state's

At the 1957 year-end, generating capability of the company's
plants aggregated 1,006,000 kw vs. a peak load of 891,000 kw. The
company has a substantial construction program under way. Gross

°ffers to date are heavily con" middle of May this year"

too

entitled

are

tor's
degree
men
are
wanted;
there are not enough accountants;
demand for math majors is far
greater than supply.
Also real
'firing-line' salesmen are in de¬
mand,

are

company

savings beyond their immediate needs,

banks, have snuggled to do awcy, ^at
with

average

wanted

this Spring,
But employers are cautiously optax timistic and are interviewing far

believe .to be

what thej

ing

exist,

Fewer Graduates Demanded

of the

pected to benefit from completion of the St. Lawrence Seaway.

greater
offers corn-

here, also; many more
ing in on individual requisitions,
especially in March and April."

for

year

Yet

of 70

sories companies were about 6% of total sales in 1957. While the
service area does not front on Lake Erie, the entire region is ex¬

confusion

all

(in the order of importance) are automobile accessories and parts,
chemicals, natural gas, metal specialties, cement, coal, steel and
wire, aluminum products and others. Kwh sales to auto acces¬

coinmittee irt

southern

part

list

with

presented

revenues

enjoys good balance between agriculture and

found to be compiling lists larger than their immediate needs
equal
so
that any outlook improvement will
force the other side of the picture
quickly change the
fur the other association, /and '.in ^
";Vemployment picture.
a masterly .way refuted all of the
Typical Comments
arguments that he had so recently ' Job
offers for June
college
advanced It was an exhibition of graduates, so far this Spring are
Among typical comments in the
legal resourcefulness that will .be only one-fourth to one-half as survey was this from the Univerlong remembered, but it doubtless numerous as they were in the mad sfty 0f Minnesota* ' :
left some of the members of the rush prevailing at this time last
he

upon,

Inc.

of nearly $80
population of over 900,000 in central
Indiana, including the cities of Terre Haute,
Kokomo, Lafayette and New Albany. Electric service is furnished

But Still Looks

Preliminary survey by Northwestern National Life indicates
job offers for college graduates this June are one-fourth to

associations, and then later * >T
the opponents were called :

when

College Graduates Down
Promising

.*•

General Assembly some years ago
the able attorney spoke eloquently
in favor of

Public Service of Indiana,
Public Service of Indiana with annual
million serves electricity to a
and

associations.

the

By OWEN ELY

and paying $2, the stock yields

price-earnings ratio of 15.

4.9%

&L!

(2200)

The Commercial and Financial Chronicle

X2ontinued J
iron J
iirst page

construction,

■

TLa

fluffAAlf fnr Rac

lllC

VIllIwvA

Villi

IWI

than

million

sell

expect

S70

deterrent

some

bonds,

ability

the

preferred and/or common stocks nance their
during the year. Included in the cannot say

present

application

third

effect

expansion,
the

the

companies

but

This

Five

•of these

having to

rumors we are

defend — (a) cost of
As compared with that period,
tnoney:
(b)
rapidly
increasing recent yields seem high indeed,
dices for gas; (e) higher con- Although
they
have tempered
explain

lrxficlntiritf

cussing the so-called high

rnn<!iHprnhlv.

cost of

'20s

the

look

back

utilities

electric

had their greatest period ot ex-

*noney.

cjnfp

World

business

in the United

aVhcnomenal
itself has

exDan-

States has been

the

and

industry

gas

made large

demands

delayed

companies

dications

Commission

these

down

wintimiin'cr

shall

increases

care

look

that

are

substantial
take

expansiop

the

road

rmYinpllintf

had

fixed

of gas pipe lines at

need

see

State

think

rates

irig

supported

public

During

market.

monev

1957

(?epression which tradi- a,\ot :er
fallow each great

oendlng

?as transmission lines will dends,

and a return
COmmon S'°Ck inv<*tor-

jiiateriju'e, bS™ pent-up
goods and
services
vrliTdl the rigors oT'war "had
a

for

demand

serves

natural

gas

favored areas were

certain

eagerly sought

~lc

1954.

persistent of

these

pent-up

demands.

that

1930, the figure
7(2%, and it did

which

the

can

retained

sharp

experience

with

pipe

lines

are

and

concerns.

financed

high compliment of debt.

'Thev

with

successful

ftrtS?^LdLtrial
Further

in the

contrast

have

both

end

the

long-term

contracts

nurchasin^and

their

facilities

selling

and

cash

nrom

depreciation sJarges whtch
permit the amortization of a large

regulatory

the

Business

;"c

USI
a prominent gas line

Recently,

operator made the statement that
h1nnm

+h:c

'j ' j'n XhliS

return

being

who

VihWe

nnt

L
.

nnp

thnt in

snmp

^nf

'ptnee
stance>. ioi

fur

9f)

airas

pnnr1

nine li

new

new pipe line piojects

higher latcs on

securities

income

debentures

stocks

the

and

balance

for

with

it,

share with every promise of
growth
Now, lets look at the

per

amounts

the

have

fi-

oancing had not been worked out
early in the planning. One of the

principal accomplishments of the
pipe line industry has been the
establishment of good credit relations with large money lenders.
Because debt in the

70%

the

total

goes

years

together

meet

come

and

have

plans well advanced to meet their
demands.
Hearings
before
the
portance. It requires only simple Federal Power Commission are
arithmetic
to
divide
up
a
6% "ow in progress which we hope
rettirn on capital investment be- will provide a certificate to excapitalization,
term

money

tween

the cost of longis of particular im-

the

bonds

and

on
on

cost
of
interest
on
Pa»d the daily allocated capacity
debentures, dividends of our system to 1,180,000 Mcf
prefeired stock, and a return |POi day duiing 1958.
The^ piostock

common

Most^ of the

includes the construction of

major pipe lines were built when
20-year money was cheap
some

facilities

under

new

—

and

would spread out

70%

return

generously when

of the capital structure cost

little

Now

that such

monpv

at least 1,
on

the

tap

new

South

offshoie

compressor

Louisiana
gas

stock

leserves,

stations,

addi-

Jlan.si?ls^101l,bn<~ from the TexasLouisiana

Coast

New

York

higher, the leverage Citj>, and the development of new
stock has been storage laciiities m Pennsylvania.

point where the
buver
*

left

return

applied

for

prices

™

com-

\vit¥?f $127,000,000.
ii^nnnniin
a*

significant

rate

the

return.

allowed

increase in rates

the

Federal

Power

Commission, another factor

—

the

competition of other fuels in the

market

asserts itself. At

—

point, certain

uses

some

which

gas

are essential to the prosperity of
the pipe line can be priced completely out of the market so that

an increase in rates will do no
good, even though it is possible to
obtain Federal Power Commission

approval.

Gas distributors do not

just because they like the

gas

PU» ** .companies or
For

be-

even

"purples,'iJll

many

eluding industrial and boiler fuels,
buy it only because it is

factor

be maintained by the

can

sale of gas to industry and for
as

use

boder^ue,Jh^^a^egment
return

facilities
r.rm

because

the

fueis

DOjnt
f

where

and

im-

longer acceptable

market,

musi; make

firm

then

natural

users

sales

the difference and

including residential and
cial-rwill be affected.
A1

wneie it lm-

the cost ot competitive

uses
meet

When it<? nricc

1 P

•

pinges

required

not

r0mmitments

rises

de-

traditional
first

Due

gas

—

commer,

the

increasing demands of pipe lines
for additional supplies of gas and
the fact that some important pro-

and

Power

Commission,

competition
has been active and has respited
in
rapidly
increasing wellhead
prices.

Few of these higher prices

have been

approved by the FedPower Commission as now

eral

Along this line

preferred money. If bond and debenture mopey costs 5(4% and
preferred stock money 5%%, then
the

wellhead

?ountered

common

stock

can

only

earn

«•«%. The same 70% payout will
afford only a 6%% yield. This is

the

price

average

will

tially

matter

treble those in

big

constructed.

incentive

has

been

removed,

For the common stock to obtain
the same yield as in the previous
illustration, the rate of return
would have to increase to 7.2%,
a

level far beyond

sidered fair
commission.
a

that yet

any

con-

regulatory

which

has

been

operating since the days of cheap
money still has large amounts of

low interest debt in its capitalization. Naturally, these new higher
interest rates being rolled in with
the cheaper money gradually increases

comes

cannot

price
to

the average cost of money,

some

common

This

come

asking

cost

that

Unless

the

new
new

producing

areas

into

less accessible areas on shore, the
pnee will have to increase.
During

1957

Transcontinental

made contracts to purchase about

two

trillion

cubic

feet

gas.

addition to the definitive amounts

which
tracts

not

FPC

be-

there

under

can

and

our

present

authenticated

con-

for

financing
a

purposes,
substantial
quantity

clear and persuasive, the which will

Federal Power Commission prob-

be proved up by further development and which can

ably will not yield
;
for'inrnwspd

Federal

their

New York Citv

Povm
trans-

gystem

In their testimony

Con Ed stated

SUDDorting the plan

to the FPC eategoHcallv that

\
,

romnletelv

a ®

|hp;

wfll

coal

iruiations and hence-

rertain

their

Thev crefer natural

thev

eliminated

hiirn onlv oil

nnripr

natural
boilers

This

eas

new

dictated

'the

great

diffirnltv

thP

New

York

with

{

having
t

Titv

the

soi;dated

abate-

Con-

Edison has consumed

tup„p nlant<? ahont

coal

smoke

Heretofore

Droblem

300 000 tons of

which

vear

Der

disolaced

some

now

will

product

from

I hone it will be gas

Texas

be impossible
supplies. As the

into the Gulf and

the

thj

when

first

boc

it will

for
out

offers

use

were

is sufficiently high
exploration and de-

gas

encourage

quest

avoided.

velopment,
to

fact,

substan-

being paid,

now

principal pipe lines

moves

company

the

gas

soon

than

still a respectable return for the
investor, but at least some of the

have en-

interesting situation

connection with the certificate
Pr°ceedings now before the Fed-

required under the Phillips decision, but it is almost certain that

'
Regulatory Muddle
The

state

present

regulation
because

the

great

Phillips

producer

confusion

decision,

Some legislation to define for the
Federal Power Commission their
exact

responsibilities

under

that

decision is imperative to open up
free

bargaining between producer
and pipe line or directly between
the

producer and industry.
The
Bill which is designed to

Harris

release

producers

oil and

gas

new

thf-Se la4 !w
estima^d ^
g
the higher

finance

the

with

tional main line pipe to complete The change, therefore, is
l00.pi(lg
original main abrupt and until the effect

common

reduced to
mon

4/f

costs through

bW?use ject to regulation by the Federal
earnings

typical pipe
line company's financial structure

never

pattern

itself

return

commiS for authority to

they showed attractive

debt

could

the

f^er &F S2X Iff®

recent

this

expressed

rate

V d «1Cdiei rare or reiurn, u

in¬

gas
n

<lo'n§'

not

price of

E d s 0 n Compa y has
Purchased a substantial amount of

yield

mauds of its markets. If the mark*t has a good potential and is
active, then the future is limited
only by the sales ability of the
distributor customer. Trancontinental, for instance, serving the
hwge markets in the East—New
York City, New Jersey, Pennsylvania—has its work cut out for
it- We see constant expansion to
bring to these aggressive marbets the natural gas they need in

years

has

greater

the

on
the common stock in
the form of dividends could be ducers are reluctant to dedicate
at much as 10%. In that period, their new reserves to interstate
the common equity investor was pipelines thereby becoming sub-

funds.

built

from

but

mission
as

"if Vs

with

been

factors

capital structure,

oast

•

While the Federal Power Com-

....

tion costs—can increase the price
in the market substantially. While

highest

Greater Construction Costs

parture

same

have been built during the

'<> a" concerned.

preferred dividend rate of 4Vz %,
the rate for common dividends
a»cl surplus would be 14.6%. With
a
70% payout of earnings, the

same

toSK'of Z

to the ea&er markets

waY

inevitable

responsibility

such

a basis which wiU be Profitable

summg bond interest at 3*14% and

the

insurance

the

has had much less trouble allowing for increased gas costs and
higher rate bases due to greater
construction costs. So far, rate
j n creases have been^ allowed
stocks and a return of 6%, as- argely as a result of these two

de-

life

controlliriG

t'0!T,rJ101? stockholder out of a 6%
[fturn is reduced materially. On
-YPlca
structure ot a
PJPe bne ^with a 70% debt, 10%
pr c f e r re d and 20% common

the

the pipe line might retrieve these

venient

necessary

SLlch as rnost of the maj°rs were
on,y a tew years aS°- Perhaps
there is not the sarae bloom that
tbere was when some of the best
Jnar^e*s were still unserved. But
leavln^ those areas aside, there
J'' sti11 a tremendous job to be
and you wl11 share 111 the

companies,

trust
and
pension
Long
transmission
lines

•a

preferred

left

such

with

such

appropriate

hllhov°ratP« r?n

?•

fixed
bonds,

nhiln^nnhv

pprtainiv
ihpq

u,ioiriP«c

!00% transmission comshare of debt, thus making their Pa»y the future is tied to a regsecurities attractive to long-term ulated rate and the stability that
investors

much tor the effect of

the

when applied to a given situation,
could amount to as much as 6£
per Mcf. Thus, these two factors
alone—that is, gas and construc-

buy

Not Off

little money is generated for
•capital expansion from the dayto-day operations of the company.
Depreciation
cash
goes
imme- '
diately into debt and preferred
jinking funds. Earnings are strictly
regulated, thus limiting the porbusiness

Well,

new

corresponding increase in
charges per
Mcf'.which,

fixed

selective.

When most of the larger pipe

*
Bloom

very

#ion

the

encies will recognize the higher

OnP of the imnoriant character-

Istics oppipe line financing is mat
astics of nine line financing is that

the

confident tot

St»ck a"d Kates Wanted which will

about a cme for any acute attack

—

jrost

for

...

with

crease

it must

make

deliveries,

Along

rate of

buy

have

accountants,

excess

and

*aces substitute Competition

return permitted
Commissions from 1919

expand

gas.

state

was

u.,

rate case, there was always some not drop to 6% until the depresit sold $1 341
°f securilties were issued discussion as to what the rate sion days of the '30s. The averim
from $955
?
1ITle
£•
f-Sj base m^ht include, but essen- age for the entire 35-year period
ffh
that rates were high did tially, it was the original cost of was 6(4%,
million was bonds and debentures ?
seem to deter the companies the facilities dedicated to the pubNot only higher rates are inand
$204
million
preferred
and
going ahead because they jjc usej jess accrued depreciation, volved in the present buyer's
-common
stocks.
Over
the
next weie
a necessary service The rate base, of course, is an market for senior securities, but,
.several vears
this same industry n.101"? widely available and efli- important element, but even more as you know, more severe terms
xfhns to spend $1 9 billion a large cieP$
.a Pro-lfc^ ls dearly "J the important is the rate of return and restrictions are being de»art of which will be new money Public
interest, a way will be the FPC allows. Of course, nei- manded. Higher call premiums
4o be secured from investors. You jound to finance it and permit it ther
of these means as much and non-callable provisions are
*nav remember the pessimism that
prosper. I need not argue t at separately as the resultant amount the usual requirement. Company
fpVcad throughout the country eager markets await the inereas- 0f balance from which the com- credit and future earnings proswhen World War II ended, reflect- mg quantities of natural gas be ng pany may pay bond and deben- pects are looked at
critically, and
ins General concern over an im- hscovered each year. Somehow or ture interest, preferred stock divi- the large investor is much more
Ihe

for

can

average

first

will

study of
Arthur
Andersen & Co., which covers the
the

the

con-

committed.
time
we
have
are

this position
and it is
favorable situation for us
in.
Of course, as we con-

commitments

nec-

sales

cover
we

most

tinue

and

4Un,r

countryside. Large

the
million of securities' am9un1*s
million in 1956 Of ;<JVrul®
$1:137
fact

have

higher

anticipate that they will do

the

rfflmanH

the

have permitted

increases.

essary

figure which

facilities

because
Both

utilities and

line

Federal Commissions in the past
have
recognized
the
effect
of
higher money costs on rates to

capacity

needs.

pipe

costs.

money

for 1959 and present in-

program

our

pansion. Money was really high would return to the company its
J'101!: That was. the daY waen expenses of operations, including
folding companies were buying COst of gas, depreciation, taxes,
iflc Pi'9p^r^ies1. and building among other costs, plus a stated
transmission lines that now return on the rate base. In any

High Cost of Money
«;on

when

been

crossing into New
City near 72nd Street. We
already discussing with our

market

somewhat less to compensate for
the risk he takes.i

to spark most

items seem

tions

York

Companies

are

achieved

any necessary or substantial addi-

under-water

Transmission

Thursday, May 15, 1958

tracts to which

that

moment

supply

year

fi-

money

the

pres-

be conservatively assigned to the now embroiled in a number of
fields under contract. This political considerations which have
addition is calculated to meet our no relation to the merits of the

8
re] m
*ng
present commitments
could have

costs

„

from the most rigid regulation by
the Federal Power Commission is

Thus,

are

assured

up
a

to 1980., Bill. Some ofthe most optimistic
20in the industry still are hopeful

full

Volume

187

Number

5742

The Commercial and Financial Chronicle

(2201)

that there is

a possibility for such
legislation in this session of Con-

gress.
new

whole
be

nation which do not

matter.

time

some

therefore,

may,

before

this

There

road-

ural

Lately, the Courts have handed
some disturbing decisions on
rate

matters.

District

One

Columbia

the

Court

and
-

problems for the nat-

are

business in the cost of
money,
the high cost of gas at
the wellhead, in the increasing
inflation which results in higher

down
gas

inherent in

curities.

block is removed.

gas

construction

costs,

and

the

Appeals

in
the
now
notorious regulatory muddle, but these
Memphis case is the most recent problems are not necessarily inand alarming. This decision misses solvable.
In the past, American
completely the concept of utility business has encountered many

regulation
the

developed through
and throws into utter
as

years

confusion

the

rate

practices

of the

procedures
the

ing

before

Power,

reimburse

sion

file

for

This

finance

the

FPC

Memphis decicooperation- of
enable

will

1958 and

our

contract

which ,*. will

by the Supreme

fine

customers

our

with

not the

reversed

Court.
our

customers

whether

1959

expan-

sion program.
The

Memphis

caused

obstacles

The investor in securities, in

nation's

compa-

being

opti-

efforts

bolster

thus

lison
Edison

tion

moment
moment

a
a

news

economic
common

been

not

reports, and general
upheaval.
Interest in

stocks

investments is

still evident, and people who have
been

not

investing for some time
are beginning to
think about it
again. You may have a different

but from where I sit it
looks that way to me.

with

the

in
in

ago

time
time

most

logical

nues

rnnnee-

connec-

transportation

of
Virginia
Company and
Long Island Lighting Company
have also purchased
a
20-year
supply in Texas and Louisiana for

gas purchased in the field.

Electric

Power

and

lucrative avethat is

business

of
of

sharing

plan

department is
active in making markets for the
(3)

securities
a

trading

The

as a

tacts

the

which

continuing

stockholders

times

firm

interest.
list

available

But the
is

which

also

can

has

lanses.
lapses, and it is often
and it is often
quite a surprise when you accidentally run into a former customer whom you did not think
could give you more business and
find out that he has been doing
business with one of your com-

our

customers.

pioneers

field and

this

are

transportation

look for

it to

used

This has to be handled with care
however, and the salesmen that
have the 30b of contacting these
prospects should be highly qualifled, tactful, and aware of their
responsibility both to their firm
and the company which has made
the stockholder list available.

More Than a Salesman
man
msm who sells security
fiplls spf,,iritipR

The
Th#i

should be more than a salesman.
He should be an advisor, helper,
friend and counsellor. Millions of

ing

their

grow,
o

decline and uncertainty that
people become discouraged

affairs

that

their

SilieTare nroVeeted in"easTAf
Ih^r death- thal thev have

y°uM.certainly haven't been in a
position of responsibility lor any

of security dealers who helped us
market the One Million shares of

—u

stock which

m^.v<:s

last Novem-

ber. Their efforts have done much

broaden

the

ownership of

our

company and to stimulate investor
interest in it. The fact that these
in

newcomers

our

ranks

are

thusiastic is demonstrated
fact

that

stock
for

88%

was

our

all

en-

by the

outstanding

represented by proxies

annual

meeting

days

a£°*
Sells Over-the-Counter

occasions
stock

why
—

we
_

1
several

do not list
—

our
_„r

the New York Stock Ex-

change. We

are

?Uxr secu.ri**as

effort to umiLitaui
maintain
vw

well

....

„

he un-

out

satisfactory. Since you have some
pasls ior reactivating your con-

young company

Contacts

Can

Also

investor unciinter-

This, we think, is being done
by several thousand of in-

vestment

houses

throughout

the

joy life better now
the fact that they have some pro¬
tection against the rainy days, de¬
preciating dollars, and the tax
collector.

hand, these roads probably will
to eliminate duplicate facil- '
ities at many points which would
be a long step forward in cutting '
operating expenses.

seek

If you are
.

wondering about the

uabIe as ProsPect sources for your
salesmen.
(1)

For example:

There

is the possibility of

However,
ternal

there

conditions

in-

many

which

must

From

earnings

has

announced

intermediate
that the

points.

This

the

Burlington has
demonstrated outstanding stabil-

concerned by investing in tax

frfe, municipal bonds. There are
a

lot of people who

this

who

and

have not tried

should

—it

works!

these cities.

would

SANTA FE, N.

M.—Coleman W.
and Henry

Los Angeles,

elected to

associate

Western

service

B. & O.
where it
ciently.
These
as

and

the

can

let "the

sole

operate

operator

holdings

ue *thaFf (estimat^the

"of

notlntiaf

the

has
oas

moves are

expected to act
to other railroad con- '

spur

solidations throughout
„

the
—

coun-

try. One which has been under
study for some time is the merger

and

farilitie«?nd

acre

tion of

eonfd

edlv wm

n™

-js

its

undoubt-

cncles are wondering
ag^ talked about
Southern Pacific

seven

C°°I

v,I +hf
5
V

Northl
hil" meJgfr 0f"
seven
oiland the

feet of lumber

com-

mnVho °ther ^ ™a(k*
fhup«J l-lfr1
,£ m

vS£e
hut

earn-

Much

Tn addition

estimated
estimated

an
an

square

vast

notential

a«?spf

inconlG

nfl

its

under

holdfncs Thfs

St. Louis Southwest (Cot-

ton Belt) will be revived. The lat-

be" evaluatjd m'orl "readiiy 'than ^ hTbe^buyLg™ addt
.

he oil and gas properties. It
-

Paeit1f is increTsing

its

...

is tional shares of this inactive

c+™>ir

luauuc

biuw

rotation J'or s°m| 1'™- This merger would

further^ diesel- hring So^hern Pacific directly
d\esfelj *nto the St. Louis Gateway,
The drop in revenues
~vear7"'This
plus high
-rific

ef«ciencv through

ailother

expenses

expected

are

force

naturally will improve its earning expenses are expeciea to icrce
l*>wer°f course, all of these many rail managements, heretobeing adversely affected

are

£««!"^2SftJg

-I°0?.m? *1

sharpest decline in traf¬

drop in iron ore
mainly by the
drastic curtailment of production
in the steel industry. This business, which is the backbone of the
shipments caused

Qreat

Northern,

is beginning to
!
improvement. But it

;

some

r>..r

until
until

time
time

some
some

iron
iron

Form Ogden Oil

Great

the

ore

Northern

operated

mills.

steel

highly effi¬
carrier and is
a

Northern Pacific. It does have a
good earnings record and has

climb

TAYLOR,

Texas

Company has

—

been

Ogden

formed

OU
with

offices at 701 Sloan Street to

gage

Partners
...

securities

en-

uUau.p«».
business.

pvicuhucs

Ogden B. Klein and!

are

Gladys N. Klein,

ore
ore

shipments will pick up to normal
ieve]s because of the fairly large
stocks

least

^"nea^ol rcducing expenses ^
means 01 reducing expenses

fic because of the

upward.

Reynolds Appoints Rush
EAST

ORANGE, N. J. —Effec¬
1, 1958, Joseph F. Rush
appointed Manager of the
Orange office of Reynolds

tive May
was

East

& Co.

Everett

Thompson,

former

Branch Manager, has been appointed Managing Director.
With Montgomery, Scott
PHILADELPHIA, Pa.
gomery,
the

0*?t£

Kuhn,

is
ls

— Mont¬
Scott & Co., members of

New

York

Stock

Exchange

will
win

take
iaxe

a
a

more
more

associated

with
witn

them
tnem

regis-

tered representative in their Phil-

cerning the merger of the Great

adelphia office,

Northern

and

Northern

back in the 1920s

The Commis-

sion nQW appears to realize that
under

circumstances

unifications

the

past

with rising labor and
and supplies costs that

years

material

and

123 South Broad

Pacific street,

elimination

SstLr'the'porttionTflhe

Josephthal Adds to Staff
Charles

White

Jr.

Adams,

Nathan Korshin and Gene Sheldon
have

Moss

joined

Josephthal

Co., 120 Broadway, New York City.
members of the New York Stock

railroads

ranroaas.

Earle E. Land
E.

Land, associated with
^ trading department of Green,
Ellis
&
Anderson,
New
York
City, passed

it
11

liberal attitude than it did con-

few

L. La Verne Horton

believed
oenevea

away

May 5.

These railroads are the first to Exchange, as registered
have advanced

far in this con-

atives.

The

firm

also

solidation program. Other moves
facilities
are expected. The Pennsylvania
^ t
include
Railroad and New York Central broadened to
System are working on a unifica- Fund Department.
,

effi-

As far as the Interstate Com- and other leading exchanges, anLoeb merce Commission is concerned, it nounce that George Arnold is now

resigned

Earle

&
^ ^ Company, replaces

un-

New York, have been
the board of directors

Patton
.

duetto the relatively high
which ing power of the D. & H. as

shown good growth in net income
and dividends until the present
0£ sabre-Pinon Corporation, it was year. If condit ions return to what
announced hy Richard D. Bokum is termed as normal, the earnings
j^ President.
of this road again should begin
H> Patton,

not

likely
that
the
Pennsylvania
might abandon some of its mid-

Vll tne othrn* hand Northern Pa-

ciently

Morton,

the

y ot iIear"inf1 Power ov,er the of 4he Delaware & Hudsonnvith
year?> despite fluctuations 111 eco- the Erie Railroad and Delaware,
"J,1.*.condltlons as well as crop Lackawanna & Western. The lab¬
c°n }£nS\u
'
»
a more difficult problem

fully diselized. It does not have
the
land
possibilities
of
the

Named Directors

means

Pennsylvania will be

standpoint,

■

suspen-

only major carrier with through '
and
frequent
service
between

formulated.
.

are

before any plan can

resolved

wjp
wiu

plan is

I*0*!-

g^ow

be very val-

itjes, labor, other railroads and
competing forms of transporta-

book as far as 1 ederal income tax
dook as tar as r eaerai income iax

holds with the executives of these

will

before such

years

& Ohio

sion of passenger service between
New York and Washington and

probably

Recently; the Baltimore

■

the

It was officially
plan of consolidation
filed in 1959 with the
a

Railroad

approved.
There will be objeclions filed by various commun-

tax collector, you can absolutely
stnn his inroads
vour
Docketstop his inroads on your pocket-

^dmL^^^r^sseS
^X'ril

can

system

this

the

Perhaps of the group, the Great
by virtue of Northern currently is suffering
from the

jf y0U have an active trading
d<
department which specializes iE
lo
local securities there may be some
28
onntnets
which
vour
firm
nnw
contacts
which
your
firm now awa^ Api11 zts'

that

con-

Pinon stockholder.

need sales companies

invcDici

Company

create

However,

P-'bi,ities

tacts you can now do so without
1
vir*>
an^ hesitation as far as this is
ramtai
concerned. In other words, inM nlLnt
wHch
activity may be helpful to you Research
Management,.which
and
could he an asset at this manages^JInte:rnational^^Riesou^c^s
Fund, Inc., a substantial SabreHme.
Developed by Sales Organization

We have been asked

est.

„

some

roads

many

with

would

States.

people need neip toaay in arrangneea help today in arrang-

It is during periods of market

their investments. They also are
26,000 Common stockholders. This °Pen to suggestions for improveyear we have almost 35,000.
The ment in their holdings.
If you
increase has resulted largely froiff have been conspicuous by your
the activity of several thousand absence for the past few years

sold

of the North-

Railway, Great North-

program.

thought to be in the distant fu- *
ture because of their
complicated ,
financial structures. On the other

definite

Railroad, Chicago, Burlington
Quincy and the Spokane, Port-

railroad

Approaching

tion

being made looking

the. merger

Pacific

„

A year ago we had a little over

toward

stated

was

progress was

some-

basis for making other confor the sales organization.

these
these

petitors down the street. A careful study of your inactive accounts
FPC authority, to haul this gas to see when the hist time you coninto
their
facilities.
The
transinto their facilities.
The
trans- tacted them, either bv mail, ohone
them, either by mail, phone
portation of gas owned by others or a personal call, could turn up
provides a profit for us without some profitable business for you
the problems inherent in purchas- if you approached them again,
ing gas from suppliers at increasing prices which we have to pass
Timing Is Right
to

be
Interstate Commerce Commission,

hearty everyoTe has been guilty

their steam generating plants, and
we
have
contracted, subject -to

Chicago,
Railroad

might

setting up a profit
for the employees,

same
same

the

Consolidated

auo

annual

meeting of the
Burlington
&
Quincy

United

W? ' menuX^

the

summated

employees.

has

stocks

common

tax-

the

save

land & Seattle Railway.
If such a merger ever

sion,

this

At
acquaintance.
At the
early
release
of
many
tney
they neglect some o£
projects, now bogged down in the the people they have done busitwice
and
regulatory lag, could reinforce to ness with once or
a
great extent the Federal Gov- thus do not follow up one of the

economy.

lien
such

and

down

You

mistic.

STSSX?' c"uctfong wm with

economy

path.

our

shaken despite the current reces-

future

...

ernment's

(2) There is the opportunity of
enlisting the cooperation of some
of the officers in encouraging savings and accumulation plans. This
could be done through the formation of investment clubs, purchase of Mutual Funds by employees, or investment
in the
stock of their own company by

to abandon completely this
If such is the case, in the terriyear's plans for expansion. As a tory where you are reading this
result, a number of pipe and steel column, you might consider, remills have had to curtail their activating some old clients who
operations, some actually shutting have not been doing business with
down, with serious loss in employ- you recently. It is a common fault
ment. If we can secure early ap- among many salesmen that they
proval from the Federal Power are inclined to always look for

our

patient

However,

nies

help

if through

now

put me

can

Railroad Mergers

roadblocks will be

away,

hard work and understanding, we
set our hands to overcoming the

Production Now

has ■opinion

decision

transmission

some

hungry

Suggestions for Improving Sales

country holds
higher prices we are now paying forth opportunities for capital enfor gas, we have secured letters ihancement through investment in

permit

gas

clean,

get

stated that

the

any

one

The

By JOHN BUTTON

increase

each

natural

markets.

cleared

which

pressure

denied

largest

opinion, is beginning to lose his
feeling of apathy and the fear
which was evident last fall. There
is more confidence among individual investors.
The idea that

from

efficient

telling

Securities Salesman's Corner

earnings subject to refund, the Memphis decision does not
affect
it, at the
moment. Anticipating that about
Nov. 1, 1959 we shall need a rate

demand

not

pend¬

case

Federal

the

will

if it. does not

rate

nor

There is

•

difficulty. Because Trans-"

Commission

man-

agement will get the situation
back on the track in due course,

and;

Appeals is
Supreme Court -

the

continental has

system

era

remedy this serious situation, then
Congress should act promptly to
the

resourcefulnes

ern

for final action and

cure

flexibility

Federal Power

Court

before

now

the

The

economic

our

=■

and State Commissions. The deci¬

sion

difficulties.

such

own a seat on

the New .York Stock Exchange
Many, however, feel that a and hence focus main selling inCongress must consider the -terest on Over-the-Counter Se-

representannounces

have
a

been

Mutual

■

...

The Commercial and Financial Chronicle

(2202)

Continued

jrom

page

ratio

l-to-2

are

The Extremities of Current

uating the low-income, farming of
our

Agricultural Policy Proposals

South,

and

other

our cut-over regions,
over-populated areas.

This suggests

another important
divergence in the thinking of dif¬
treme proposals of the Cochrane tom limit as the supply—current
ferent groups in this country, be¬
type is simply that the farmers production plus carryover—rises tween those who at one extreme
left to themselves have little bar¬ from 102 to 130% of "normal";
want no further reduction in the
gaining power in the market, nor for cotton and peanuts as the number of our farmers and at the
will they organize into bargaining supply increases from 108 to 130
other want our farming to yield
unions like labor; therefore gov¬ or larger percent of "normal."
the highest returns possible per
ernment must step in and func¬
(These schedules do not apply to worker almost without
regard to
tion largely in lieu of the mar¬ tobacco if marketing quotas are
how
few
are
the workers
and
ket.
The Talbott approach calls in
effect.)
The Administration farms and how farming is or¬
for a sizable measure of partici¬ wants in effect to extend these
ganized.
Even
the prospect of
pation of farmers and their; rep¬ schedules down to 60% of normal increasing integration of farming
resentatives
in
the
130%, and and
setting
of with supplies over
business
does
not
disturb
marketing goals or quotas, and Secretary Benson at times has them.
•
in marketing operations and pric¬ even suggested zero as the lower
Related to the foregoing is the
ing in the market place. It also limit.
extreme position of the Farmers'
leaves more choice to the pro¬
Union group that the surpluses
ducer.
It therefore departs con¬ Present Administration's Proposal
that we have now, or would get
siderably from a straight public
The most recent Administration
with 100% of parity prices, can be
utility program.
proposal, however, is to abandeti
disposed of readily in either of
these schedules and set only the
two ways, or at least in the two
Similar to Hoover's Farm Board
lower limits. The Administration
combined.
The first way is by
In fact,
the Farmers' Union is saying that raising the pricehelping low-income families in
proposal has in it much of the support level as supplies decline
this country, by means of a food
philosophy ,of the Aaron Sapiro causes output to expand again.
stamp plan or similar device, to
cooperative marketing movement This raises the whole question
include more meat, eggs and dairy
beginning in the early 1920's, of the slope of the supply-price
which ultimately found part ex¬ curve in the market. The sched¬ products in their diets. They point
out that a billion food calories in
in
Agricul¬
.

pression

the

Hoover

ules

now

use

tural Marketing Act of 1928 and
the setting» up
of the Federal
Farm Board. Sapiro designed his

not to

the

products fall as
would in an open

these

they

let

not

market. ^'It has'been

commodity

prices
last

their

this

form

times

billion

six

require

seven

much land to produce as

the

form

intent

Slave

from

far

very

valid, and if used as a basis for
price or income supports would
contribute importantly to perpet¬

cereals,

the

with

do so, in

this

way

—

those

Brannan Plan

Any

listing

boards

extreme

pro¬

posals

must surely include the
Brannan Plan as offered by Branhimself in 1949.

nan

be that
to

It may

majority of

consider

make

our

well

citizens

extreme any proposal

in direct payments
producers the difference be¬

tween the market prices and some
level of prices deemed more rea¬
sonable.

But surely to do this at
the level defined by
Brannan, and
Without much regard to the size

of the crop, was indeed extreme.
It meant in effect saying to each

producer after he had received
this high price for a big crop,
"Go ahead and produce another

big

We guarantee you the
same price for it."
It woulH be
difficult to conceive of any better
of

inducing

growing

would

have

farmer

this, as proposed
Talbott of the Farmers' Union.

Then there is the difference be¬
tween

parity

using

as a support basis old
relative commodity-by-

—

commodity. prices mostly back in
1910-14—or

"modernized"

parity,

that

is, relative moving-acreage
prices in the last 10 years. The
extreme with respect to this was
the level whichever is the higher

that

in the

used

was

The level

now

early 1950's.

in force is shifting

from old to modernized

the

rate

the

latter

for

parity at
reaching
products by

for

most

of what has been called

"international

dumping" by its
opponents. The State Department
has in general struggled for dis¬
in

cretion

such

Other
a

wide

subjects in which there is
of position, partly
in
the
foregoing and

(1)

How

large

recent

(2)

How

reserve

large

of soil

the

Farmers'

Union

groups.

The

and

some

level

most

commonly named in the recent
commodity - by - commodity pro¬
posals—wheat, cotton, dairy prod¬
ucts, for example — is 90% of
parity.

price supports with the size
of the supply. Provision for this
got written into the Agricultural
Acts of 1948 and
now

1949

under the

"flexible." * The

schedules

the support level
iw corn, wheat, and rice from 90
down to 75% of parity as a bot¬
use vary

needs to

There
to

the

are

wide divergencies as
of
"income

definition

market

and

what

farmers

would

centive

larger
got

produce

crops

written

have

not

year

the

successively

after year.
It
terms into

these

the Agricultural Act of 1938
basic for distributing the

mentary

in¬

payments

supple¬
that Act.

But

today income parity is being
given by the Farmers' Union and

extent

direct payments.
a

list of products

1 states.

bring- into

Surely

demonstrates

has, been

the

opening

to the extreme

ment

farm situation.

There

can

that

different

groups

state¬

are

now

proposing. The positions taken by
these
groups
on
many
of the
subjects are almost at opposite
poles. Moreover, they have been

■

doubt that

un-

with

really give

of Agriculture, say
positively and definitely that
no longer
any sb$ply-re-

It will
solution. One part
°f the answer is the time it will
sponse relationship, in agrjculture.
take, which will range from mayHe virtually repeated this statehe as low as two or three years
ment at Michigan State University f°r a few products to as many as
in Feb. 1958. But if Mr. .Brannan 15 for a few others. The reason
were right, there
would,Have been for the longer periods is that as
no
hog-corn cycles in rthe last indicated ^earlier, a large fraction
eight years, nor cattle cycle move- °1 /the better farmers will meet
ment, nor the almost year-by-year the: lower or lowering prices by
ups and downs in poultry output, -more use of improved technologies
Moreover, it takes .a down re- that will lower their costs by insponse as well as an up response
creases in output per acre, per
to produce these cycle movements, animal unit, and per man-hour.
There is, however, a big db- Of course/';the size of the present)
ference between the. response 'of overstocks is also a factor in the
individual product output?to price ! time it will take. >
and that of groups of competing
' Another part of the answer is
ones, or of the total farm" output tbe'disaster or hardships that will
of the nation. Part of. the shrink- be caused to large numbers
of
age in pork output usually; is off- farm" families who are not in posiset by an expansion, in beef *out- ti°n or
^ble by themselves to meet
put; and similarly for wheat and in good" part the lowering prices
grain sorghum, and grain sorgliuni with lowering unit costs, during
and cotton. There has been, how- these adjustment years.
;
'?
ever, a continuing overall increase '
A consequence of the foregoing
ill whole groups of these, and in is that solving i this problem by
national farm output .snice -1952 nothing
more than the drastic
in spite of lower prices.
% His is1 -measures' proposed by the Farm
clue to the strong upward trend Bureau Federation is not really
in yields per acre and per animal politically possible; nor is it really
unit and output per worker that economically good to subject such
set in during the
war'and : has';3
large number of our ;iarm
.

since.

Few

economists

will not agree that the increase in

siderably
stayed up

the

(

prices

official data available upon which
make a valid comparison of

such returns. As I have shown
other occasions those released
the

U.S.D.A.

showing

about

by
a

eVen

suggested.
This, however, washan exception.
So far as price supports are con¬
cerned, all that was projected in
the

Act

1933

was

approach to parity.

\ gradual

such

disasters

and

mUst

also

insist

that

neither

had is if - equitable and fair for the
and

postwar

nation,'to,,have these farm families
in" this way. It was the
greatly increased need for farm
products by our allies in World

Korean War levels, and-that with- suffer

price

have

been

possibly
The

lesser

even

for

reason

increase, "and

decline.-

would

there

supports

the

-War

increase in

output with such price declines as
occurred has been, of course,

has

that

years

and, the

Marshall

'following that

Plan

mainly

caused the great surge in use of
advanced technology that is giv-

the larger arid/or; better ing us pur present surpluses. It
producing probably ' two-.ysurely is not fair to agriculture to
or
more
of
the "output, let it bear all the burden of the
larger outputs still yielded larger ^needed post-recovery adjustment,
net cash incomes than woitib have. To
be .sure the nation is now
on

farms

thirds

smaller

especially

ones,

fertilizer

spending vast sums on its agriculother jture sector; but it is not spending

if " they,

and

technology.
This " has^
especially true of farms with
machines and equipment far from
being fully used, as, commonly the
case on what
used to be familybeen

sized

it in such a way as to achieve the
needed adjustments. We must decide what these are, and devote:
our expenditures on agriculture to
achieving these.

farms.

The Farm

Bureau

is right that

lower level of prices is needed.

But this alone is far from

enough.

What do such circumstances call
the way

of a public farm
would the.Farm
Bureau proposal of dropping all
price supports as fast as possible
What

achieve?

o u s

economists have

all

controls

dropped

and

agricultural

estimated that if

and

supports
supplies

all

were
were

dumped;

on the market, prices of
farm products would drop 25 to

since 1930,

families

hardships.

output would not have beerrcon-

undertaken

were

program?

us a

there is

extreme, of

if there

such'

Department

very

capita in farming as in other
occupations. This would not be so
course,

to make their adjustments in production, and lor C.C.C. to dispose

becoming morel so over the years
although some will be 30% further. This would cause
disposed to dispute this by saying disaster to several hundred thouthat nothing as \ drastic as Wal¬ sand of our farmers with heavy
lace's
pig
slaughter
has
been indebtedness and serious hardship

groups
the extreme
the same returns per

supplies

derlying much of this wide range °i whatever overstocks it has. For
of difference in position }s a very-others of them, further reductions
elementary economic relationship,
the price-fsupport level will be
namely, that of the -response of needed in later years^ these prob1'arm output to price. It was some- ably best taking the form of step
thing like eight years ago that I reductions, a few percent .at a
heard Secretary Charles Brannan, time.
T;, V:.
V
*
in an auditorium lecture'.in'"the-r: What
is,if -anything, wrong

said policy?

measures

the

therefore calmly asfc our-:
if there is not some pro-

for in

what

balance

and demand for the different
selves
products now receiving price sup-«
gram of action between these ex-'ports? The probable best answer
tremes
that
offers
promise of is> for some of them, yes, but only
year-by-year improvement in the after time enough for the farmers
Let

low-

in recent Farm Bureau.

it does not inof the people's

moreover,

dicate

Criticizes Farm Bureau

about

in this direc-

proposals in Washington as supgrowth
porting farm prices at a level of
understanding of the problem, but 90% of the average of the past
rather the opposite of this—some- three years. This would
reduce
thing a little bit in the nature the average level of price supof the divergence of opinion on ports in 1959 by a little more than
the
slavery
issue
thatfinally 10% of 1958 prices. The first quesbrought on the war- between the H°n
would this be enough to
Surely,

•

move

tion only as last as possible. But
what .is "as fast as possible"?
Is Mt economically possible - or
politically possible that is meant?This has been spelled out more

difficult any agreement on a sane
and
effective
course
of : action.-/definitely

used

carried.

(3) To what extent support to
agriculture will be provided in the

Parity

Something needs to be said at some other
this point about
varying the level definition of
of

conservation

Thursday, May 15, 1958

proposal is to

improved
Changed Concept of Income

term

resources

back in

pro¬

tion.

wide differ¬

Administration

stockpile

wheat, corn, cotton,, and other
farm products needs to be carried
for national security and stabiliza¬

parity."

are

posals to the 100% demanded by
other

of solving

problem, this growing
divergence of position is indeed
unfortunate, since it makes more

partly not, are the following:

sur¬

Certainly there

not

range

involved

Those first proposing it,
(4) How wide
1934-38, as a substitute for receive support.
price parity had in mind simply
ences in the level of prices to be
(5)
What to
taking account of the size of the
supported, from a bottom of 60%
income farming.
crop as well as the price, so that

pluses.

but

action;

always successfully;

year,

1960.

crop.

way

who

Analogy

farm

potatoes, and sugar. The other way
to pro¬ is to make our foods and cotton
view to signing up 85 or 90% tect the farmers.
If this is true,
more
readily available to ill-fed
of the production and feeding the then
prices will not rise as fast and ill-clothed
people: in other
supply to the market in an or¬ on these schedules with falling
lands.
derly manner and forcing the supplies as they do in the open
All that I shall say relative to
processors
to pay full market market.
Still the support price
this position
is that more can
values. The nation-wide coopera¬ at
these
somewhat
less
ample
advantageously be done in both
tives that the Farm Board set up
supplies may be higher than it
these
ways
than is now being
in 1924-30
grain, cotton, wool, would be in an open market.
but
any
loose
undisbeans, etc.—were partly amalga¬ What the Administration appar¬ done,
criminating
undertakings
along
mations of Sapiro-type coopera¬ ently wants is freedom to raise
these lines will be likely to hurt
tives. Their undertakings to hold the
price so little that it will not
more
than help. Merely keeping
supplies out of the market as induce more output.
more
hungry people; alive year
prices fall, of course, turned out
This brings to the fore another
after year in an over-populated
badly because of the continuing issue between the
groups, as to
country does not really help. Our
sag of prices in the Great Depres¬
how much is left to administrative
supplies need to be used in ways
sion of the 1930's, but under more
discretion. The Secretary wants a
that help them better to provide
normal circumstances these co¬
large
measure
of
this in
the for themselves thereafter; Work-,
operatives might have survived
Department of Agriculture. At the
ing out joint undertakings to this
for several years at least. Their
other extreme are, first, those in
end
with
these
countries
is
a
operations, with government cor¬
Congress who would spell out slow process.
i
porations like the grain and cot¬
very explicit directions in legis¬
ton stabilization corporations of
Very different from the Farmers'
lation; second, those who would
1930 to back them up, would not
Union on disposal., of farm sur¬
set
up
strong non-partisan and
have been greatly different from
pluses abroad is that of the com¬
non-special-interest boards to
those of the C.C.C. in more recent
modity groups that are pressing continued
make
the
decision;
and third,
times.

cooperatives

Issue

the standpoint

From

Presents Own Program

First, in order of the other thingsr

needed, I would put an adaptation
of
our
farm
credit facilities
to meet the needs of the situation that faces

us.

The first adap-

tation is ample protection against
foreclosure of mortgages that may

threaten many farms at the lower
product
prices
while
readjustments are being made. The second
is 'credit to buy the- additional

land that

million

or so

of our>

farms need in order to be ecofor most of the rest. It would to- ~ nomic "units." Third is credit to buy
day

usually

serious

unemployment
Of

something

commercial farms than

course

the

the livestock equipment and other
things needed on these enlarged

social security.' farms. Fourth

Farm

Bubeau

not proposing this extreme.

Their

things and
ments

is credit-for these*
for land improvesome
farms that can

even

Volume

187

Number

5742

The Commercial and Financial Chronicle

thus be made into economic units,
this is spite of the general sur¬

adjustment

plus

between

situation.

public

are

operating

now

restricted

basis

and

upon

conservative

the

meet

needs

situation.
It

existing

our

public-cooperative credit

agencies
too

Even

doubtful

this

.they can be
changed from this practice and
policy without some public action
along three'lines. .(A) Govern-:
ment underwriting or guarantee¬
ing of large numbcx*s of loans
based

financial

and

plans

budgeted

approved

upon

farm

shcfuld

plans. These
out
a
time

spell

schedule of loans and adjustments.
(B) Building up an adequate and

competent staff to work out these

budgeted plans and supervise the
loans subsequently. (C) The gov¬
ernment's giving definite orders
to

these

such

credit

loans.

agencies to make

However,

private

credit agencies should be given a
first chance to make any of these

loans.

guaranteed

foregoing types
to landlords

operating

Loans

should
well

farmers

owner-

provided

leasing arrangements
proved.

Loans

should

the

tenants.

the!

made

the

are

ap¬

third

available

type

also

for

;

Program activities should for the
be

gether
of

absorbed

the

for,

soil

farms

such

all

largely

alto¬

not

the

planning
considered

being

approved

loans.

conservation

Also

districts

re¬

ceiving Federal aid should be

re¬

quired to cooperate with the staffs
making the farm and financial
plans to the extent of making
basic

soil

land-use capability

conservation

practice

for these farms.

maps

provision is made in any
foregoing for farm en¬
largement loans based upon addi¬
of

the

tional

rented

land.

This

in¬

tentional.

Consideration might be
given, however, to certain types
of loans based on long-term leases.
Interim
With

prices

Aid

dropping

around
however, the
farmers
obtaining such adjust¬
ment loans will be in difficulty
making ends meet while the ad¬
justments are under way. It will
10%

all

therefore

once,

necessary

supplementary
them

level
the

for

here

few

and

parity

this

for

the

pro¬

loan 1 support
of

first

the

make

payments
The

between

90%

for

years.

suggested

announced

level

income

difference

posed

modernized

the

year

loan and thereafter

declining reg¬
ularly to one-half of this in the
fifth year and at the same rate
thereafter

until

fourth

reached,

will

there

level

after

one-

which

payments.

Consideration

should "also

given to basing the income sup¬
plements not simply on a given
amount per unit of product, but
on

the

size

multiplication

unit,

the

and

crop

avoid

Brannan's

adjustments
other

not

product
amount

the :evil
plan.

effect

This

of
per

would

the

about

remainder

those

not needing
facilities, those
able to qualify for such loans,
—

loan

of circumstances
very wide.
Con¬
the
large group of

etc?: The range
among these is
sider

first

commercial

farmers

been meeting the
well
cerns

thus

far,

who

have

situation pretty
far as it con¬

themselves by means of im¬

proved

technology,
lower
unit
costs, etc., Even for these a 10%
drop in prices all at once is too

severe

ta be

reasonable

good economics.

suggested
year

An¬
in¬

some

farmers
into
adjustment, loan
for-Their farms.
After

programs

to -solve

gram

cultural

many

the

current

agri¬

problem.

I would
propose, however, the
making of the same level of in¬
come
supplements
available
to
farmers not needing loans, but
entering into a contract to carry
out the same kind of an adjust¬
ment program for their farms as
to

those

ment.

with

loans in

the

agree¬

Such

provisions, both with
and without loans, would take the
place of the present Soil Bank
program, at least the acreage re¬
serve
part of it and would put

What About Export Crops?

six
basics
plus dairy products, whether the Secretary of Agricul¬
important modification of wool, honey, and possibly a few ture and his staff can be inde¬
the foregoing is suggested in the others.
pendent
enough
politically
to
case
of
the
best
decisions.
export
This
What about the feed crops other make
types
of
farm
products, like cotton. It is that than corn? They and corn are in leaves us with the third alterfor all those for which net ex¬
having
a
strong
non¬
heavy surplus now. They received native,
ports exceed some level—say 5% some support in 1956-57. One way partisan and non-special-interest
of

total

production

the

—

support level would be

price
higher

than the world trade level

flected

domestic

export

re¬

mar¬

kets, and that the supplementary
income

payments

be fractions of

the difference between this and
90% of modernized parity in case
this level is lower than the 90%
of
the
last ', three-year
average

handling

these

is to
products,

provide
namely,
pork, beef, and dairy products, the
kind of support herein suggested
for the mandatory list. The aver¬
age price used as a basis, however,
should be that of the last hogcorn, cattle or other cycle, with
adjustments for price trends. This
for

their

would

final

servation

payments.

reserve

Something

said at this

character

point

to the
the

direction

and

support
quota

specific needs

adjustments written into the loan
and/or
adjustment
agreements.

with

level

—

lower

price

exports will give
that

the

for

domestic
A

level which combined

will

level

the

blended price

than

maintain

present levels of over-production.

near-final

matter

the

by which prices are sup¬
ported, Nothing different from the
present C.C.C. operations is sug¬
gested except the following:
means

cereals.

For them is here

level

schedule

and

year-by-

supplementary

income payments that is one-half
that for the farmers adopting an

obtaining other
mostly non-farm.

and

ployment,
the " latter

should

other

cropper and
families
on
small
South

both

units

elsewhere.

and

these

included

many

em¬

tenant
in

the
of

Some

but especially
of the latter, are going to need
some
financing to cover moving
expenses and the like as well as
groups,

job.

help in finding a
procedures, should
which

under

Federal

the

Definite
developed

local

offices

Employment Agency

and of the Farmers Home Admin¬

istration

work

together

employment

ing

loans

needed

individuals

locat¬

planning

and

for

families

registering

and

such

for

help, the FHA making the loans
the

Employment

with the
them.;: This may
undue

eral

seem

ism,

surely

but
as

Agency

extension

some

of Fed¬

humanitarian-

Government

treme

supervision

helping

it is

not

ex¬

proposal

recent

for

outright grant of $5,000 to farm
into urban
employment.
an

families ready to move

As for part-time

farmers, some
combination of the foregoing can
be

made

to fit

some

of them.

the farm families not included
the

foregoing
old

too
ures

too
it

for

any

groups,

such

many

vigorous

to grant

the

American

are

meas¬

of the foregoing,

indisposed to change.
is

Surely

tradition

them freedom to ride out

their years as they want.

Security
them

concern

their

time.
is

now

The

nation's main

that the young people
have a chance

families

to develop.

Old Age
available for

the-

nature

Commisssions
the

Council

the

l.C.C. and

Economic

Offers

between

cross

Affairs.

Out

Way

effect the

They also make no direct attack
(1) Recognition of, and provi¬
Making inadequate
farms
over on
production adjustment as does sion, for, the nation's carrying over
into economic units is only part
the program outlined in the fore¬ larger stocks of a number of farm
of
the
transition.
With
more
going. They could, however, be products than a free market will
acres
of land per farm, more of
revised
in
these
respects. They carry.
it can
be in grass and pasture have
the advantage that the pro¬
(2)
A significantly expanded
and
crops
using more machine ducers get their income supple¬
program of distribution of surplus
and
less hand labor.
This will ments
paid to them in the market farm products among low-income
have the effect of reducing the
place and hence involve no drains families in this country. The best
acreage
output
per* farm
acre on the public treasury. Also in
indication of what this could ac¬
though not per farm. Net incomes case producers are already on an
complish is in a recent newsletter
will be increased because of labor allotment
basis, it is relatively of the University of Minnesota.i
inputs ands expenditures are re¬ simple to split this between the The
conclusions reached are that
duced \~ more
than are
sales re¬ domestic
and
surplus parts.
It if all families in the United States
ceipts. The farm planning staffs may well be that putting some with
incomes of less than $3,000
working out the adjustment loan farm products on this basis, with were
given the food-buying power
plans
need
to
be
thoroughly a support level in line with ad¬
of
the
group
with income
of
drilled
in
this
aspect of their justment requirements, and lower¬
$3,000 to $4,000, the consumption
planning; work.
ing it further as may be needed in of dairy products in this country
the future, would be preferable would be raised
by 12% and that
Shifting: Sub-Marginal
to handling all the same way. It of
meat, poultry, fish and eggs,
Out of Farming
is here suggested that this be tried
7%, whereas that of flour and
; As for the farm families at the out lor cotton, with revision in cereals would be decreased
19%.
other end of the scale, those not the two
respects as just indicated. The last of these would take away
able
to
qualify for adjustment
Consideration is also needed of the market for the
product of
loans, any that are not too old the production allotment feature about 12 million acres of land now
should" be helped in selling their of present and proposed programs.
in wheat and other food
farms

set up to make the deci¬
sions, with Congress spelling out
the broad guiding principles. This
board needs to be something in

provid¬
We are now ready to bring to
ing of income supplements to hog, a head our
analysis by concluding
The reason for this suggestion is beef, and dairy farmers at the low that there is an intermediate
pro¬
that
if
price sectors in the cycles for gram of action that offers a
supplementary
income
way
products.
This
has
often out. of our dilemma. It will not
payments are going to be made these
been suggested as a way of level¬
anyway,
no
more
than
simply
give us an immediate surcease
making them a little larger is all ing out these cycles. This would from our sorrows, but it wilt
that is needed to achieve a .free need to be very carefully done, reverse the
present trend
mean

—

con¬

board

proposed by the Farm Bureau.

be need for

interplay of the domestic and however. It is doubtful if a for¬
export
markets, and such free ward-pricing plan for these prod¬
should
name
an
average
desirable from the ucts
it on a much sounder and more interplay is
standpoint of international trade cycle price higher than 90% of
constructive basis. •
that which would develop without
relations.
;
t' It is here assumed that the
the forward pricing. An assured
This is probably the best point
Agricultural
Conservation
Pay¬
at which to consider the feasibility price brings forth more product
ments will be continued, except
than one that happens to average
of the domestic allotment
now
fertilizer payments not fitting into
out at that level.
called "domestic parity" — pro¬
the loan and/or adjustment plans.
posals. They all set too high a
Means to Support Price
There still

farmers

for

all, it is This adjustment that is
the prime objective of any pro¬

levels, but using size of the an¬
nual crop as a basis rather than
supply.

additional

need

induce

enter

and-

the

themselves.

the

centive

amount
in
effect
to \ preserving
something in the nature of the
present schedule of price support

What

two

and

maps

program.
The
this distinction,

for

the

groups is that
of these farmers are really
position to make the needed

most

loan

reason

may

As an adjunct of this
program,
the- Farm and Home Development

present

main

(2203)

Even

toward

piling

larger surpluses at more
burden on the Treasury
and do this in a way that saves
our
farming
people
from
the
disaster and increasing hardships

and

of the extreme Farm Bureau pro¬

posals. It will at the same time set
in, operation a positive program
for bringing about the adjustments
which are the real solution of our

present unbalanced situation.
Given such a program, definite

improvement

begin to show

will

by I960, and by 1965 agricultural
recovery will be well on its way.
it

But

be 5 too

cannot

strongly
very
dif¬
much more
expanded than our present Farm
and Home Development program
will
be
needed. Altogether the
agencies participating in working
out the loan and /or adjustment
plans and programs for the in¬
dividual farms and helping farm

stated

that

something

ferent from and very

families

find

other

work

sion
tion

Services, the Soil Conserva¬
districts, the FCA, FHA, and

the

Federal

Employment

agency

field staffs—will presently need a
total of three to five workers in
the

Moreover,

county.

average

these field staffs

will need to be

rigorously trained for and drilled
the performing of their tasks.
A beginning workshop for them ik
in

just

starter. They will need to
a month for a

be called back after
review

again

their

after

at intervals

and

experience

few

forage

pretty much their present form
product
are brought
in line with demand
by
the
other
measures
herein

until the supplies of any

suggested, at which time they can

cautiously be removed. It would
not be wise at this time, however,
to apply quotas to new products.
The

proposals to impose stricter
in the form of specified
quantities to each individual pro¬
controls

ducer must be considered from an

administrative
would

point

difficult

view.

determine

such quotas that would be fair as
between farms
and

difficult

the second.

the first

enforce

they work

place,

them
as

they

would be supposed to, any farmer
who increased his yields per acre
more

than

others would

have his

this,

devoted to pasture,
feed
grains.
The

and

present proportions of land being
used

feed

livestock

about

and

months*,

thereafter,. Much

of the personnel for this will have
to
be
recruited
from
college

though they have proved The first two of these would re¬
trained men now on farms
generally
inadequate
in
their quire that around
180
million
present form, they have helped, acres more land, or the equivalent related off-farm work.
and therefore should be continued

the

—

Cooperative Federal-State Exten¬

Equally essential is it that the
agricultural
ment

college

station

and
back

staffs

experi¬
up

this

adjustment

planning and execu¬
125 millions in feed grains and tion
by
assembling the
data
hay, and 775 millions in pasture. needed for budgeting analysis of
For the increases to come from alternatives,
particularly of al¬
feed grains and hay, this would ternatives that spread the farm
mean
an
increase of 25 million operations
over
more
land and
net
incomes
acres
in
these.
This
would
in raise
by lowering
effect provide a use for a net of farm expenditures per acre. This
13 million acres of our cropland
research
should
specifically in¬
now
in
surplus production.2
If clude such analysis of alternatives
on representative
some of the pasture increase came
farms — farms
out of cropland the net would be representative of different- sizes,
much larger. Workable procedures such as family size, two-man, etc.;
for bringing about such a shift in also of different combinations of
consumption are, however^ not crops and livestock, of different
simple to devise, and will take combinations of cultivatable and
time to produce their full effects. rolling
land,
of
different
soil
(3) Revision over the next few types, and above all of different
leasing arrangements. Such analy*
years of present
procedures for
distribution of agricultural sur¬ sis will furnish guidance to the
are

quota reduced. This could
be
most
nearly achieved
with pluses abroad along more con-, field staffs in the counties that
crops like cotton and tobacco, as structive
lines indicated earlier. are doing the actual loan-and/or
it now almost is with sugar.
This will not step up the volume adjustment planning. It scarcely
acreage

Setting Up
Next

how wide

order
a

to include in

of surplus products

Eligible List
is

the

matter

the short

The Farm
Bureau scheme of supports at 90%
of average prices of the preceding
program.

three years, even with
modifications
herein

needs to be

pointed out that these

analyses need to be kept up-toto fit changing technology,

date

Advisory Board

list of farm products
a

disposed of in

run.

final

needed
earlier

on
as

sentence

the
to

question

the

changing
two

raised

administrative

the drastic decision
making in such a pro¬
suggested,
gram. Surely no board
of agri¬
plus the adjustment loans and all cultural
producers should perform
the
rest, could conceivably be in
anything more than an advisory
applied to any faiW product. It role. Also there is serious
question
would be advisable, however, to
1 Minnesota Farm Business Notes, Nov.
apply it at the outset only to those
receiving the loan type of price 27, 1957, John Wetmore and Willard
Cochrane.
supports in recent years, that is,
2 These are my calculations, not those
the mandatory list, including the

the

situations,

market

and

like.

Handling
over

large

the

part

assignment will
few years take a

this
of

search time of

available

the
a

re¬

large fraction of

the agricultural staffs of the

land*

grant universities.

The few pro¬

duction economists

will

their

find

these staffs

themselves

efforts

spreading

co-workera

Continued

page

(2204)

The Commercial and Financial Chronicle

4Continued from

Continued from

page

Thursday, May 15, 1958

140,742,570 net tons compared with actual production of 49.4% the

page

week before.

The Extremities of

•-

For the like week

month aso the rate

duction 1,285,000 tons.

A year ago,

was

Current

Agricultural
Policy Proposals

consultants

over

noted.

February annual rate
$341,700,000,000.

wide range of

projects.
;

land

the

that

serious

staffs

our

colleges and all the
agencies named should in¬
terrupt their regular activities iri
this way? My answer is, "Yes."
Otherwise, we would not be hav¬
ing such extreme measures pro¬
posed to us as those I have out¬
lined—making agriculture into a
public utility, imposing rigorous
quantity quotas on each farm,
organizing farmers into unions,
grant

other

the

and
It

like.

will

now

that

apparent

what is here proposed is in effect

mobilization, and strengthening,

of the

effort of most of the

Fed¬

eral, state, and local agencies
set

now

agriculture, and
through agriculture the nation, for
the purpose of solving the prob¬
lem of mounting agricultural sur¬
pluses and hardship - for a large
to

serve

fraction of
Some
^uch

farm families.

our

ask,

may

but

will

politically acceptable? It

may

well not be to the present largely

longed, at least until after
next Congressional election.

the

resumption of Mercury and General Motors Corp. plants the past
week offset declines by Ford and Chrysler to hold auto production
a modest 1.7%
decline from the week preceding. StudebakerPaekard Corp., in addition, scheduled four-day operations fol¬
lowing "zero" output the week before.
The statistical publication counted 77,128 car and 17,510 truck
completions for United States plants during the week compared
with 78,441 and 17,817 units, respectively, two weeks ago.
Com¬
bined operations represented only 63.5% of the year-ago level.

Halting operations last week to adjust the new car inventory
Dodge and DeSoto in Detroit, Plymouth in Evansville, Ind.;
closed, in addition, were Buick-Pontiac-Oldsmobile branch assem¬
bly plants at Kansas City, Kan., Linderi, N. J., South Gate, Calif,
and Wilmington, Del.
Ford Division plants at Atlanta, Ga., Dallas,
Texas, Long
Beach, Calif, and Dearborn, Mich., also were closed.
^'Ward's" noted that during the April 21-30 period new car
sales averaged to 14,410 units daily for a 1.2% gain over 14,250
posted for April 11-20. The month, however, ended with a 364,000unit sales volume that merely paralleled March.
Chevrolet, the reporting service, added, is accounting for
35%. of the industry's May car output thus far and operated at
five-day schedules last week with the exception of two plants,
were

Boren

Calif.—

Co.,

9640

Santa Monica Boulevard.

Joins Carroll Staff
-

merce

with

Carroll

North Camden Drive.

Co., 324

was

for¬

merly with M. J. Ross & Co., Inc.

With Merrill Lynch

;

(Special to Tiie Financial Chronicle)

HOLLYWOOD, Calif.
L. Bird is

rence

now

Law¬

—

with Merrill

Lynch, Pierce, Fenner & Smith,
6353 Hollywood Boulevard.

With Kalb, Voorhis

(Special to The Financial Chronicle)

LONG

BEACH, Calif.—Paul E.

Malmuth

now

reveal.

affiliated

Most of the year-to-year advances were attributed

(Special to The Financial Chronicle)

ANGELES, Calif .—Gerhard

J. lloefler and Henry S. Rosenfeld
connected with Bennett-

Manning Company, 8417 Beverly
Boulevard.

have

Other districts such as Pittsburgh operated at
51, up 1.5 points;
Youngstown at 44, up 2 points; Birmingham at 65, up 5 points;
St. Louis at 75.5, up 7 points and
Wheeling at 68, up 10.5 points.
Chicago at 54.5% was down 0.5 point. District rates remained at
48% in the Mid-Atlantic, 29.5 in Cleveland, 34.5 in
Buffalo, 40
in New England, 29 in Cincinnati and 67 in the Far West.
So far

the Detroit

B. Franklin &
Company,
215 West Seventh Street. He
was

previously with Lewis-Davis, Inc.

Hill Richards Adds

which

is almost enough

ANGELES, Calif.—Dale
has

been

added

the

etaff of Hill
South

Richards & Co., 621
Spring Street, members of

•the Pacific Coast Stock
Exchange.

Caswell W. MacLean
Caswell W. MacLean
of

director

Gaircjner & Co. Inc., New York

City, passed

away

April 29.

John C. Harrison
John C.

Harrison, limited part¬
ner
in Penington, Colket &
Co.,
Philadelphia, passed away May 5.

to finish the 1958 models.

Nationally, steelmaking is
reductions

the

week

ended

its

upward

climb

uninter¬

May

10, 1958, output increased by 64,000,000 kwh. above that of the previous week, and by 4,000,000
kwh. above that of the comparable 1957 week, and 478,000,000
kwh. above that of the week ended May 12, 1956.-

Car

Loadings Reduced 0.1% Last Week and 25.9%
Below Like 1957 Period

Loadings of revenue freight for the Aveek ended May ,3,
1958, were 720 cars or 0.1% under the preceding week.
Loadings for the week ended May 3, 1958, totaled 533,004
cars, a decrease of 185,982 cars or 25.9% below the corresponding
1957 week, and a decrease of 237,554 cars, or 30.8% below the
corresponding week in 1950.
r
:
:

Automotive Output
Passenger

Edged 1.7% Lower the Past Week

production for the week ended May 9, 1958,
according to "Ward's Automotive Reports," turned 1.7% under
the level of the previous week.
*
•
car

Last week's

78,441

output totaled 77,123 units and compared with
in the previous week. The past week's produc¬

car

(revised)

total

states

of cars

1,620

trucks

and

units below

amounted

that

94,638 units, or a de¬
previous week's output,

the

"Ward's."

Last week's

car output decreased below that of the
previous
by 1,313 while truck output declined by 307 vehicles dur¬
ing the Aveek. In the corresponding week last year 125,924 cars
and 23,198 trucks were assembled.
A.
'
>>'-/>*.
:
Last week the agency reported there were 17,510 trucks made

week

States.

This compared with 17,817 in the previous

trucks.

totaled

7,950

and

cars

In the

previous week Dominion plants built 8,280
1,245 trucks and for the comparable 1957 Aveek 9,118
1,860 trucks.

1,335

cars

and

cars

and

Lumber

are

price increase.

Construction

also

taking greater

Lumber shipments of 481

"Steel's" composite on the
prime grade of
at $32 a gross ton, advanced 17 cents from the

upturn reflects

firmer market at Chicago.

steelmaking

scrap

previous week. The
-

hike will

other
or

July

poll of industrymen.

only about half the increase in wages
Steel officials say they actually need
ton increase to cover added costs of labor and mate¬
cover

rials.
With

ingot production at its lowest

level in years, steelmakers
misgivings about a price hike. The move might
alienate public opinion,
put added pressure on customers' profits
and draw fire from
Washington. It could result in the loss of
business to competing metals and
foreign mills, it declared.

have

on.

serious

In recent years, much of the increase in
costs has been passed
Base prices went up an
average

1954, both recession

slated for

years.

This

much greater increase.

of $4

time,

ton in 1949 and $3
employment costs are
a

Price increases will
probably apply to all basic carbon grades.
The markup for each
product will depend on its cost of manufac¬
ture and competition it faces.
Price adjustments on specialty

steels, such

stainless,

improves, this trade
The

American

operating: rate

•

reporting mills in the. week ended

above

production,

according to

the

19.4% above production. Unfilled orders arrrotmted to 34%
of stocks. Production Avas 0.6% above; shipments 5.9% above and
new orders were 5.3%
below the previous week and 4.5% above
the

like week in

1957.

V'V

Business Failures Show

Pronounced Decline

In Latest Weck
Commercial

and

industrial

' J

.t;

/ V %

failures* declined

279

the

week ended May 8 from 336 in the
preceding week, Dun & Bradstreet, Inc., reports. Although casualties were at the lowest level
in 16 weeks, they remained slightly above the 267 in the com¬
parable week of last year and the 258 in 1956. Failures also dipped

13% below the pre-war total of 321 in the similar week of 1939.,
Liabilities

of $5,000 or more were incurred by 245 of the
casualties, falling from 313 in the previous week but re¬
maining above the 229 of this size a year ago. In contrast, small
failures, under $5,000, edged up to 34 from 23 last week but did
not reach their 1957 level of 38.

Twenty-seven of the failing busi¬
had liabilities in excess of $100,000 as against 40* in the pre¬
ceding week.
"
(
All industry and trade groups reflected the week-to-week
decrease except commercial service which was up to 25 from 24.
Retailing failures dropped to 140 from. 161, manufacturing to 56
from 64, wholesaling to 29 from 36 and construction to 29 from

may

■

51.

Iron

be delayed until the economic climate

and

Steel

Institute

Fewer

casualties

occurred

than

of the

last

year

among

retailers,

contractors.^However, considerably

manufacturers and service

concerns

corresponding week of 1957.

succumbed than in the

nine

major geographic7regions reported lower
failures in the week just ended. Marked'declines:occurred in the
Pacific States, off to 52 from 71 and in the East North Central
States, down to 43 from 66. Running'. contrary to the general
downturn, Middle Atlantic casualties edged up to 104 from 99 and
New England to 18 from 16. These two regions and the East North
Central suffered

the 1957 level

failures than

Dun

Bradstreet

Avholesale

•

Slightly Downward

The Past Week
The

but declines from

year ago,

prevailed in all other regions.

Wholesale Food Price Index Turned

food

price index dropped
0.2% to $6.57 on May 6 from $6.58 a week ago. The current index
is 7.9% higher than the $6.09 registered one year ago: :
Higlier

price

last

v/eek were .rye, oats, wheat, barley,
beef, hams, steers and hogs. Down in
price were milk, coffee, tea, eggs, flour, rice, prunes, cottonseed
oil, bellies and lambs.

cheese, lard,

weekly pointed out.

sugar,

cocoa,

The index
announced

that

the

steel

companies Avill average *87.2% of steel
capacity for the Aveek beginning May 12, 1958, equiAalent to
1,400,000 tons of ingot and steel castings (based on
average Aveekly
production

12.5%

were

Seven

costs, it added.

$10

1958,

National Lumber Trade Barometer. In the same period new orders

wholesalers and construction

•

Steel prices will probably go lip $4 to
$6 a net ton when labor
costs increase 20 to 25 cents an hour
per worker on

May

nesses

construction

centage of orders for cut material.

Shipments Increased 12.5% Above Output in
Week Ended May 3, 1958

week's

the upgrade because inventory
running their course and some consumers are hedg¬
on

activity is gaining momentum, few
warehouses are
benefiting from it. With most of their customers
continuing to buy hand to mouth, warehouses report a higher per¬

(Special to The Financial Chronicle)

LOS

is concerned, increased steel

area

output
means only that mills have
accumulated enough orders to justify
starting up. Automakers are ordering small tonnages for limited
production runs on 1959 models, but they will not buy heavily
before July.
Their sheet inventories are estimated at 26 days,

JSamuel

Preston

For

and 23,198 a year ago. .
Canadian
output last Aveek

steelmaking after layoffs of several weeks. The
operated at 34.5% of capacity, up 22.5 points from the
previous week.
'

and

LOS ANGELES, Calif.—William
N. Bryant has joined the staff of

Continued to Rise the Past Week

week

resumed

The

(Special to The Financial Chronicle)

weekly production

electric

Institute.
Output continued
rupted for the third straight week.

in the United

district

"Steel" magazine found in

Joins Franklin Staff

average

housing and highways.

castings, the highest weekly output in more than a month.
Improved operations in the Detroit area are chiefly responsi¬
ble for the gain. Great Lakes Steel Corp: and Ford Motor Co.

tonnages.
Although

Bennett-Manning

Investors.

now

Com¬

During the week ended May 11, steelmakers operated at 50%
of capacity, up 2 points from the
previous week and 3 points
above the year's lowest operating level recorded
only two weeks
ago.
Production was about 1,350,000 net tons of steel for ingots

ing against

•are

Departments of Labor and

A pickup in steel production last week stirred
hopes that the
industry has seen the bottom of the recession, "Steel" magazine
reported on Monday of this week.

with

Kalb, Voorhis & Co., of New York.
was
formerly with California

LOS

States

increased spending for public

2 With

United

amount

based

Electric

tion

activity rose seasonally in April to $3,700,000,pQQ.typ9stipg,,tlie total dollar volume for the first four months
of 1958 slightly over that of the similar 1957
period, preliminary
estimates of the

134*2%;/ t

energy distributed by the electric
light and power industry for the week ended Saturday, May 10,
1958, was estimated at 11.315,000,OOQ kwh.; according to the Edison

and

(Special to The Financial Chronicle)

BEVERLY HILLS, Calif.—Wil¬
liam L. Jones has become affili¬
ated

The

Capacity This Week

Mosha Cornfeld has been added to
staff

Electric Output

crease

New construction

Steel Mills Look for Output to Rise to 51.9% of

(Special to The Financial Chronicle)

the

plus

Boren Co. Adds
HILLS,

•'Index of production is

even

stalemated Congress. In this case,
the emergency will just be pro¬

1947-1949.

was

"Ward's" concluded.

program as I have outlined

BEVERLY

income

"Ward's Automotive Reports" said American Motors Corp.

personal

placed at 2,155,000 tons,

lor

of total

In the automotive industry last week American Motors Corp.,
swinging to six-day operations, jumped into No. 5 spot in industry
production, topping every medium-price make except Oldsmooile.

in agriculture

Is the emergency

The

*80.0% and pro¬
the actual weekly production
Avas

for 1947-49)
as
compared with
an
83.0% of capacity, and 1,334,000 tons a week ago.

actual

rate

raw

represents the sum total of the price per pound of
foodstuffs and meats in general use and its chief function

is to show the

Output for the week beginning May 12, 1958 is equal to about
51.9% of the utilization of the Jan. 1, 1958 annual, capacity, of

general trend of food prices at the wholesale level.

Wholesale Commodity Price Index Showed Little

Change From Prior Week
Price

increases

on
some
livestock, grains and cocoa-, offset
declines in flour, lard and steel scrap last week holding the gen¬
eral commodity price level; close to that of a week earlier,
The

Dun

278.34

Number 5742

187

Volume

Bradstreet

on •

The Commercial and Financial Chronicle

index

price

commodity

wholesale

stood

year ago.

1958, decreased 8% below the like period last year.

in the preceding week

May - 5, compared with 278.73

and 285,68 ion the similar date

Despite1 prospects of tne tourtn largest Winter wheat yield on
record, wheat prices moved up fractionally during the week. In¬
rye futures prices somewhat, while
joats and soybeans declined. Corn prices equalled those
of a^ week earlier, with trading unchanged.
Stocks of corn in
Chicago fell somewhat, from the prior week~
Wholesalers reported a slight decline^n sales of flour and
prices slipped. Commercial sales of flour for export amounted to
52,800,0edhushels~ in grain equivalent so far this season, compared
with 414)00,000 during the same period last season. The principal
countries involved in last week's exports were Bolivia, Cuba and
West;Germany.
•
■■' ■'
«>■•.
■:
Purchases .of rice .were steady during the week and prices
showed no - change from a week earlier. .Heavy rains in some
growing areas again delayed plantings. Increased prices abroad
strengthened cocoa prices here, resulting in a moderate decline
in cocoa -trading.
; "7'
..'X

trading, slackened

Although

again,: coffee prices were sus¬
Wholesalers reported

tained close -to those of the previous week.

increase

m;imports;of some ,varieties from Brazil. Raw sugar
prices were .st^dy, but orders lagged.
;
> "
an

slight rise in cattle prices the past week as trading
improved'. While eattle receipts equalled those of the prior week,
they were noticeably, higher tban a year ago in Chicago. A mod¬
erate gain in hog buyinghccurred. Prices continued close to those
of the-previous week. Hog receipts were down substantially from
fa week -earlier. Although an appreciable increase in purchases of
-.'.lambs. occurred, prices remained unchanged. ., !
Following declines in the prior weekv cotton futures prices
<climbed substantially last week > on the1:-New York Cotton Exi change. Trading was stimulated by reports op unfavorable grow¬
ing weather in. the cotton belt and more deiays in plantings.
' ;
Exports of cotton staple during the week ended on Tuesday
of the previous week totaled about 136,000 bales compared with
142,000 bales in the prior week and 210,000 bales in the compa¬
rable week a year ago. For the current season through April 29
exports" amounted to an estimated 4,272,000 bales as against
5,977,000 during the similar period last year.
, ^
There

was a

Wholesale transactions in woolens and worsteds slipped, but

were steady.
There were some scattered orders for print
and broadcloths, but over-all volume in cotton gray goods
sluggish. A moderate rise in rayons and acetate occurred

prices
cloths
was

during the week.

By Bad Weather
Despite extensive Mother's Day sales promotions, bad weather
throughout much of the nation held consumer buying close to
that of the prior week. As a consequence over-all volume slipped
below the level of the similar period a year ago. Shoppers were
primarily interested in some lines of women's apparel, floor cover¬
ings and linens. Purchases of most major appliances and outdoor
furniture lagged.
Scattered reports indicated that sales of new
passenger cars matched those of a week earlier, but the volume
remained below that of
Th'e -total

dollar

retail

trade in

the

period ended

Wednesday of last week was 1 to 5% below a year ago, ac¬
cording to spot estimates collected by Dun & Bradstreet, Inc.
Regional estimates varied from the comparable 1957 levels by
the following percentages: West North Central States —3 to —7%;
Middle Atlantic and East North Central —2 to —6%; West South

Central
to

—1

—5%; South

Atlantic and East South Central 0

—4%; New England, Mountain and Pacific Coast States

to —3%.

There

.•

-f-1

proved

rise

from

the

prior week in

•

Wholesalers reported a moderate gain from the

prior week in
bookings of ^omen's summer cotton dresses and suits. Interest in
sportswear and beachwear improved. There was an upsurge in
Orders :for women's raincoats during the week. Volume in men's
a

;

lightweight suits and sports shirts equalled that of a week earlier.
A moderate gain in sales of children's summer clothing occurred.
Over-all trading in textiles slackened
somewhat, desptfce
slight .gains in cotton knitting yarns and print cloths at the beT ginning -of the week. Transactions in woolens and worsteds were
sluggish again and bookings in carpet wool in Philadelphia and
Boston markets declined again. Dyers and finishers reported no
improvement in incoming orders.

Although buyers somewhat increased their orders for some
lines, total wholesale volume in furniture dipped last
week.
The call for air conditioners, fans and lamps expanded
fractionally, while volume in television sets, refrigerators and
laundry equipment was unchanged. Wholesalers reported a slight
rise in turnover in floor coverings and linens. There was another
gain in interest in building materials, garden implements and
paint.

summer

Food buyers noticeably stepped up

their purchases of canned

citrus goods the past week and wholesale stocks were moderately
reduced. While the call for fresh meat rose somewhat, volume in

poultry

unchanged.
rice.

was

sugar and

Sluggish trading was reported in flour,

Department store sales
the

Federal

Reserve

Board's

a year ago.

Mother's

Day

country-wide basis

index for

taken from

the week ended

May 3,

promotions,

important deterrent to trade.

Glore, Forgan & Co. and Dom-

weather

rainy

inick & Dominick, joint managers,

associated

100

and

underwriters

offering for public sale today
(May 15) an issue of $60,000,000

are

preceding week, April 26, 1958

Corp. 25-year 4%% sinking fund
debentures priced at 99.25% and

increase of 8% was reported.
For the four weeks ended May 3, 1958 a decline of 7% was re¬
ported. For the period Jan, 1, 1958 to May 3, 1958 an increase
of 1% was registered above that of the corresponding period in
1957.
;
'
'•
7

National

Distillers

accrued

Chemical

interest,, to

yield 4.80%

to maturity.

the

net

from the
sale,
the
company
will
apply
$30,000,000 to the payment of out¬
standing long-term bank loans
as
and add the balance to its general
funds, which, will be used in the
Boron, not lithium and beryllium, is depicted -by chemical
reduction
of
short-term
bank
engineer as being superior to any other fuels lor air-breathing loans and for increased working
engines and, possibly, rockets.
capital. A portion of these funds
may be used for continuation of
The use of boron compounds as fuels. The need to meet these rethe company's capital expendihigh energy fuels will extend .the quirements has lead to the dis- tures
program for expanding its
range of aircraft by 25 to 50%, covcry ot entirely new classes of
tacilitjes
in
the
chemical
and
revolutionizing the design-ot;jets boron compounds and of numer- beverage fields
and rMkets, an authority- on jpt, ous unique and;,u nexp e e fe d. ' ■ ■
•
propulsion and boron chemistry chemical reactions.
:
<:
The major work in this protold the 133rd national meeting of
Although t h e s e considerations. Jf^am,ls a polyethylene plant near
the American Chemical
Society may be crude, they show that' I70us;?a» Te*as, now under constmction, with a design capacity
at San Francisco, Calif.
compounds consisting primarily of " rtruetion. with a desum canaeitv
of
75,000,000 pounds per year,
The most important factor in hydrogen attached to boron should
scheduled for completion early iri
fuels
for
aircraft, jet-propelled give the most desirable propel1959 at a cost of approximately
devices and rockets is the heat lahts
and
should, certainly be
7,
1
released when the fuel burns, be- superior to conventional hydro- $20,000,000..
cause the propulsive force is de-" carbon fuels, Dr. Winternitz cornSinking fund payments for the
rived from this heat energy, Divni Hi ted; adding:
debentures, beginning in 1963 at
^
Paul F. Winternitz of the New
"We cannot fail to realize the the rate of $2,250,000 annually
.

Boron Hailed

•

proceeds

High Energy Fuel;

,u.

York

University chemical engineering department explained in

tremendous impact
and
the
technology

report entitled "The Impact of
Recent
Developments in Boron

which

that

boron

compounds are superior in this respect to any other
luels
for
air-breathing engines,
and most likely also for rockets,

formely director of reof Reaction Motors, Inc.,

sion

the

Society's Division of
In organic
Chemistry in the
Masonic Temple.
of

Calculations of maximum range
for jets and rockets, and the
maximum height that can be
reached by a rocket, prove that

both horizontal and vertical lim.

directly proportional

to.thc

when

leased

the

heat

element

oxidant,

suc¬

chemical

the

lowest

built

under

vpar<!

em-iositv

Forc~

wac

ja'rge

debentures
at

will

non-re¬

lower interest

cost

lahnminw

industry

manufacturing

manufacturing
course,
well

are,

guarded seCrets,

■

Joins Staats Staff

and 1S now a major producer of
wide group of petro-chemicals

and other industrial chemicals.
An important center of production
Is Tuscola, 111., where the company
7™ ?nd °PeFat?s a^'e group

of modern facilities

Other plants

~ro to Ashtabula, Ohio; Anaheim,
....
Calif.;
New Orleans,
La.;
and
^am-»
Newark, N. J. In addition the
r

Corporation,

(Special to The Financial Chronicle)

ducer in the

Berwyn W.

—

pa"y. entered the chemical field
a

company owns a one-third inter¬
est
in
Mallory-Sharon
Metals

JOSE, Calif.

Prior to 1950 National Distillers*

holic beverages. In 1950 the com--

which

this

the

amo

Naw

nianta

the kev material

new

processes

SAN

The

being
country under
the leadership of the Olin Mathieson Chemical Corporation and the
Callery Chemical Company. The
developed

re¬

pay-

retire

The sinking fund
redemption price is 100%
and
optional redemption prices range

and

Diborane,

a?n

details

principal business was the production and marketing of alco-

lnro-^

for

Air

sponsorship.

calculated

rnnrmfnp-

Therefnvp

be|ng

lor

are

75% of the issue prior to maturity.

^om T°5^ to^the principal

nvrotv<d<,
•

mehts,

for five years.

b()1,on hydrides are obtained from
this compound by a process called

lur

with provision for additional

fundable

each
as in
jet, and the heat released when

each

aviation
rockets
the

of
chemical element is burned,
a

development

Diborane-6,

pound

Diboranfe-6

energy release m the combusition
of the fuel, Dr. Winternitz stated.
Measurements

from

result

boron fuels."

The speaker,

said Dr. Winternitz.

who was

will

cessful

gathered in recent research shows

an
integrated pro¬
special metals field;

In the beverage field the

com¬

McDowell is now with William R. pany produces many lines of
oxidized by an Staats & Co., First National Bank
bourbons, whiskeys and gins, and
rocket, indicate Building. He was formerly with imports 'and distributes wipes,

Hiaf liAV/iri nanl/e -fVtlivl
amfiitK
that boron ranks third among thn
the
elements for amount of heat re¬

IVtltchUTTl. Jones & TPfTinlptflll.
Mitcbum, .Tones &

Templeton.

-i

vermouths,
rums
and brandies
carrying well-known brand
With Stephens, Bryson
leased in both cases, the chemical
names.
Its premium bottled-inengineer reported.
(Special to The Financial Chronicle)
bond
bourbon whiskey,
Old
The
element
hydrogen is in
Grand-Dad and 86-proof bottlings
TORONTO, Canada — Stephens,
first place for air-breathing enBryson & Company Ltd. announce of Old Crow and Old Taylor are
gmes by a great margin but falls that Robert J. Trow has
joined sales leaders in their respective
far
below
for
rocket
engines, their organization as a director. fields.
Actually, because of performance The fir* is now
at 330
For
the
three months
ended
limitations of other top-ranking
Bay Street,
March 31, 1958, the company re¬
elements, hydrogen has the highported net sales of $ 114,318,026
est "specific impulse" in a rocket
Joins First Sierra ' >
and net income of $5,511,497 ahd
also.
Unfortunately, it has very
in the 1957 calendar year sales
(Special to The Financial Chronicle)
unsatisfactory physical properties.
SAN FRANCISCO, Calif.^-Lau- were $538,525,000 arid net income!
It is, therefore, advantageous to
use hydrogen in combination with
T^*.dy, J.as
the
..

„

x,.

loScated

other

elemeats

that

hydrogen carriers.
explained.
Excludes
Lithium

can

act

Dr. Winternitz

staff of Thei First Sierra Corpora-

Now With J. Barth

Lithium, Beryllium
and

the
the top of the

(Special to The Financial

beryllium,
at

SAN

mon

Oons because
lions because

known,

carry

no
o

much

liauid or suitable
liqu a or suitanie

SAN

Quditiori)

less

tii0y csn

hydrogen

per

pacjfjc

less

Coast

Mr. Crawford
•

in New

xt.

was,

^^x

Stock

Yorl?

ness ln JNew YorK"

pound than can boron.
Boron is

excellent hydrogen

Montgomery St,

Crawford has become

0£

Exchange.

FRANCISCO, Calif.—jqhn

Calif.—Ar-

bot> 519 California Street, members

(Special to The Financial Chronicle)

Chronicle)

FRANCISCO,

aa^fuels'for' larTe-tale TdS- associated wUh HaAnatod&Tai:
is

100,000 and $22,633,000 m 1956.

"os' Street.

^lon'

With Hannaford & Talbot

other elements

Pacific

Coast

Mr. Price

was

_New YortMfl

Stock

Exchanges.
formerly with Dean

Witter & Co. and Walston &

Co.,

Inc.

Midwest Exch. Member
Mrtm'll

F JxAra^rl T

CHICAGO, 111.—The Executive

and, possibly just as imLawara i. iviorrm
Committee of the Midwest Stock
portant, has extreme chemical
Edward T. Morrill passed away
versatility, the chemical engineer May 1 at the age of 69 following Exchange has elected to membercarrier

the

on a

Chemical Corp. 4%%
Debentures Offered *

According to the Federal Reserve Board's index, department
store sales in New York City for the weekly period ended May 3,
1958 declined 7% below that of the like period last year. In the

its are

considerable

the
buying of women's fashion accesories, especially handbags, jewelry
and hosiery. While volume in Spring coats, rainwear and cotton
dresses was sustained at a high level, purchases of sportswear
and beachwear were sluggish.
Interest in men's tropical suits
and sportswear improved, but sales of furnishings lagged.
Although furpiture stores reported moderate week-to-week
declines in turnover in outdoor tables and chairs, interest in
upholstered lines and occasional tables was unchanged. The call
for lamps and lighting fixtures expanded slightly, but volume in
air conditioners, television
sets and other appliances dipped.
Numerous "white sales" stimulated consumer buying of linens
and interest in floor coverings heightened.
Food sales were highlighted the past week by marked in¬
creases in
the call for candy, baked goods and canned juices.
Grocers reported substantial gains in dairy products and fresh
produce, while interest in fresh meat and poultry fell below that
of the preceding week.
was

7% below the level of
Notwithstanding

Rockaway, N. J., addressed a ses-

year ago.

volume

National Distillers &

Retail sales volume in New York City the past week declined
4 to

Chemistry on Some Scientific and
Engineering Problems."
The
comparison
of: data

Trade Volume in Latest Week Adversely Affected

pre¬

recorded below that of 1957.

In the

ceding week, April 26, 1958, an increase of 4% was reported. For
the four weeks ended May 3, 1958, a decrease of 7% was reported.
For the1 period Jan. li 1958 to May 3, 1958 a decrease of 3% was

creased "touying-helped-boost

prices

(2205)

physical

comnounds

VSSSl

properties of boron
be
tailored
to

can

meet most reoiurcm^nt"

'"'-n

a
,

♦"

long illnessJLV/l A W

Vim

1 lAIiVkJO

•

Mr. Morrill prior
AIA.1

Mm til

yt AVA

...

Vad

honri

oisso-

asso-

ship in the Exchange: John N.
Blo'btreu, Abraham & Co., N^w
^
—

-mof

i • r:,

The Commercial and Financial Chronicle

(2206)

Thursday. May 15, 1958

it indicates

Securities
Aeronca

Now in

Corp.
5,000 shares of common
stock (par SI). Price—$6 per share. Proceeds—To go to
selling stockholder. Office—Germ an town Road, Middletown, Ohio. Underwriter—Greene & Ladd, Middletown,
Feb.

Manufacturing

(letter oil notification)

Ohio.

American-Caribbean

Oil

Co.

(N.

Y.)

filed 500,000 shares of common stock (par 200).
be supplied by amendment.
Proceeds — To
discharge current liabilities and to drill ten wells. Un¬
Feb. 28

Price—To

derwriters—To be named by amendment.
American Durox Corp., Englewood, Colo.
May 1 filed 2,500,000 shares of common stock (par $1).
Price—$2 per share. Proceeds—For construction of new

plant and establishment of the business at Tampa, Fla.,
including payment of the balance due on a plant site.
Underwriter—I. A. I. Securities Corp., 3385 S. Bannock
Street, Englewood, Colo.

490,000 shares of capital stock. Price—$10.20
per share. Proceeds—For investment in first trust notes,
second trust notes and construction loans. Company may
develop shopping centers and build or purchase office
buildings. Office — 900 Woodward Bldg., Washington,
D. C.
Underwriter — None.
Sheldon Magazine, 1201
Highland Drive, Silver Spring, Md., is President.
Dec. 23

Blacksmith

Francisco.
Alternate

postponed.

studied.

1983.

filed

$22,000,000

New

14,700 shares of class B

Price—$12 per share. Proceeds
go to selling stockholders.
Office —700 N. 44tb
Street, Birmingham, Ala. Underwriters — Cruttenden,
Podesta & Co., Chicago, 111.; and Odess, Martin & Herzberg, Inc., Birmingham, Ala.
Anita Cobre U. S. A., Inc., Phoenix, Ariz.

Appalachian Power Co. (5/27)
April 23 filed $25,000,000 of first mortgage bonds due

York.

Research Fund, Inc., St. Louis, Mo.
100,000 shares of capital Stock, >(par one
cent).,-- Price—At market.
Proceeds—For investment.

Feb.

filed

Underwriter
Louis.

—

Counselors

Research

Sales

Corp.,

Robert II. Green is President.

Cuban-Venezuelan

mortgage

bonds

Oil Voting Trusts,
-'.Havana, Cuba ''/v".
March 31 filed 767,833 units of voting trust
certificates,
each certificate representing the ownership of one share

due

Proceeds—To repay bank loans and for construc¬

Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Lehman Brothers; Blyth & Co., Inc., and F. S.
Moseley & Co. (jointly); Merrill Lynch, Pierce, Fenner

stock

common

(par one-half cent) in each of 24
Price — To be supplied by amend¬
capital expenditures, exploration
costs aird other,corporate purposes* Underwriter—None.

Cuban" companies.
ment.

Smith; Harriman Ripley & Co. Inc. and The Firs:
Corp. (jointly); White, Weld & Co. Bids-^-Expected to be received upvtdvil
/(EDT)
May^ 21.
at 176 Remsen St., Brooklyn 1, N. Y.
■'

Proceeds—For

Boston

Builders

Loans

Inc.

—

Underwriter—Daniel D. Weston & Co.,

Inc., Bev¬

erly Hills, Calif.

Campbell Chibougamau Mines Ltd.

March 10 filed 606,667 shares of capital stock (par $1).
Of which 506,667 were issued in connection with the ac¬

quisition of all the assets of Yorcan Exploration Ltd
(latter proposes to distribute said shares ratably to it?
.

record

Dec.

16, 1957). The remaining
are to be sold for the account of the Estate
Collings Henderson on the American and To¬

100,000 shares
of A.

ronto

Stock

Exchanges.
To selling stockholders.

Price—At market.

Proceeds—

OfFice—Toronto, Canada.

derwriter—None.

a mum, I nc., Opportunity, Wash.
/
1,156,774 'shares' of common stbfc'k (par 10
ccnts;)V of which (>30,000 shares are to be offered lor ac•

(letter of notification) 40,000 shares of, 17.J,fe«
preferred stock (par $1). Price—$2.50 per share. Pro¬
ceeds
To selling stockholder.
Office
Los Angeles.

Day hi

Jan.

■

March 27

stockholders

Sept. 30 filed 85,000 shares of common stock. Price—At
par ($3.75 per share). Proceeds—For investment in sub¬
sidiary and working capital. Underwriter—Selected Se¬
curities, Inc., Phoenix, Ariz.

ISSUE

Counselors

tion program.

stock (par $1).

—To

REVISED

loans and for working capital and other corporate
pur¬
poses/Underwriter—Mortimer B. Burnside & Co., Inc.,

(5/21)
first

ITEMS

•

Shop Pastries

Brooklyn Union Gas Co.
April

Cosmos Industries, Inc., Long island City, N. Y.
April 16 filed 280,000 shares of common stock (par 10
cents). / Brice—$2.50 per share. Proceeds—To .pay bank

Inc., Rockport, Mass.
Sept. 17 (letter of notification) $100,000 of 6J/fe% deben¬
tures dated Sept. 16, 1957 and due Sept. 15, 1972 and
40,000 shares of capital stock (par $1) to be offered.,
in units of one $50 debenture and 20 shares of capital
stock. Price—$90 per unit.
Proceeds—To retire mort¬
gage notes and for working capital. Underwriter—Mann
& Gould, Salem, Mass.
1

Calif.

Corp.

(letter of notification)

common

of financing

means

& Fay, San

American Mutual Investment Co., Inc.
Dec. 17 filed

Anderson Electric

Registration

purposes.
Underwriter—Hooker
Calif.
Offering — Indefinitely

additions

SINCE
•

29; I'Hed

coiinf ^( company

holders.'
and

Price--A

market."

d ri I l ing costs

Proceeds-^-For• exploration

other:

cpi-ppraleypiUTJoses^Uiider-

writcr—tferriii <Jov Seat tie, Wash.

Oiapulse

Manufacturing Corp. of America
Jan. 29 (letter of notification) 159,090 shares Of common
slock
(par 10 cents)./; Price—$2 per share; Proceeds—
For general Corporate purposes. Office—276 Fifth
Ave.,
New York, N. Y. Underwriter—None.;/- ':
•

Digitronics Corp.
V*'
\
(letter of notification) 140,000 shares of claSs B
capital stock (par 10 cents).
Price — $1.50 per share.
Feb. 12

Proceeds—For

general corporate purposes. Office—AIAvenue. AlbeiTson, Long Island, N." Y. Under¬

bertson

writer—None.- Statement withdrawn about

Un¬

month ago.

Disc, Inc., Washington, D. C.

Oct. 10 filed
•

Central

Hudson Gas & Electric

400,000 shares of class A Common stock (par
Price—$2.50 per share. -Proceeds—For investment.

$1).

Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; The First Boston Corp.; Kuhn, Loeb & Co. and

Corp., (5/21)
April 1 filed $18,000,000 of first mortgage bonds, due
1988.
Price—To be supplied by amendment. Proceeds—
To

writer—None.

ving Lichtman is President and Board

Chairman.

*■

Eastman

Probable

1988.

Proceeds-—To repay bank loans and for construc¬

tion program.

Dillon, Union Securities & Co. (jointly); HarRipley & Co. Inc. Bids—To be received up to 11
(EST) on May 27 at 30 Church St., New York 8,

riman
a.m.

NY.

^Appell Petroleum Corp.
April 28 (letter of notification)

undetermined

num¬

ber of shares of

common stock
(par $1). Proceeds—For
for the exploration of oil and gas properties.
Office—Alice Falfurrias Highway,
Baytown, Tex. Under¬
writer—None.

expenses

•

Arkansas Western Gas Co.

(5/29)

May 5 filed 55,774 shares of common stock (par $5) to
be offered for subscription by stockholders of record
May 28, 1958, at the rate of ohe additional share for each
10 shares then held; rights to expire on June 17. Price
—$15 per share. Proceeds—For property additions and
improvements. Office—Fayettevilie, Ark. Underwriter
—None.

Arnold, Hoffman & Co., Inc.
March 28
.mon stock

rate of

(letter of notification) 20,697 shares of com(par $10) being offered to stockholders at the
share for each share held of record April
on May 22.
Price—$12.50 per share.
New York Life Insurance Co. and for

one new

29J rights to expire
Proceeds—To

working capital. Office—55 Canal St., Providence, R. I.
Underwriter—None.

it Atlantic Refining

Co.
May 9 filed 300,000 shares of common stock (par $10) to
be offered pursuant to the
company's Incentive Stock
Option Plan.
i

Bankers

Fidelity Life insurance Co.
Feb. 28 filed 258,740 shares of common stock
(par $1),
of which 125,000 shares are to be
offered publicly and
133,740 shares to employees pursuant to stock purchase
options. Price—To public, $6 per share* Proceeds—For
expansion and other corporate purposes. Office —At¬
lanta, Ga
Underwriter—None,
i

Bankers

Management Corp. (5/21)
10 filed 400,000 shares of common stock (par 25

Feb.
cents.)

Price—-$1

per

share.

Proceeds—To reduce out¬

standing indebtedness and for working capital. OfficeHouston, Texas. Underwriter
McDonald, Holman &
—

Co., Inc., New York.

ville, Ky.
• Bethlehem Steel Corp., New York
May 7 filed 2,500,000 shares of common
to be

(par $8)

offered pursuant to the
company's "Stock Option
to certain
employees of the corporation and its
subsidiaries.

Bishop Oil Co., San Francisco, Calif.
common

Central

Mortgage & Investment Corp. ' ;
Sept. 12 filed $5,000,000 of 20-year mortgage bonds and
500*000 shares of common Stock (par five cents) to be~
offered in units of $100 of bonds and 10 shares of stock J

Price—$100.50 per unit. Proceeds—For purchase of first V
or to make first mortgage,loans and for con-t
business.
Office—Miami Beach, Fid. Under- :

mortgages
struction

writer—Aetna
Date indefinite.

Securities

Corp., New York.

Offering-

Statement effective March 12.

Chase Fund of Boston (6/3)
April 24 filed 1,000,000 shares of capital stock (par $1).
Price—$10 per share. Proceeds—For investment. Under¬

writer—Shearson, Hammill & Co., New York,

-A-Chesapeake Instrument Corp., Shadyside, Md. April 30 (letter of notification) $275,000 of convertible
subordinated

5% debentures due 1968.' Price—At par.
Proceeds—For general corporate purposes.' Underwriter
—Drexel & Co., Philadelphia.
Chess Uranium Corp*

;

•

]•

May 14 (letter of notification) 600,000 shares of common
stock
(par $1—Canadian).
Price—50 cents per share.
(U. S. funds). Proceeds—For exploration costs, etc. Of¬
fice—581 6 Park Ave., Montreal, Canada. UnderwriterJean R. Veditz Co..
Inc., 160 Broadway, New York.
Cobb (John), Inc.
April 24 (letter of notification) 150,000 shares of com¬
mon stock (par 25
cents). Price—$1 per share. Proceeds
—For general corporate purposes. Office—1182 Broad¬
way, New York, N, Y. Underwriter—B. Fennekohl & Co.,
205 E. 85th

Street, New York, N* Y.

Refining Corp. $25,000,000 of first mortgage bonds due
Sept. 1, 1968, $20,000,00 of subordinated debentures due
10

filed

Oct. 1, 1968 and 3,000,000 shares of common stock to be
offered in units as follows: $1,000 of bonds and 48 shares

duction of hank loans^xpansion

$100 of debentures and nine shares of stock.
by amendment. Proceeds — To
refinery. Underwriter—Lehman Brothers, New

Price—To
construct
York.

be supplied

Offering—Indefinite.

common

bank

loans

and

(par $2) to

stockholders

and general corporate

development of real property,
Under¬

■.

& Research, Inc.
165,625 shares of common stock (par $1) to
offered for subscription by common stockholders at

Dec. 24 filed
be

the

rate

Price—To

one

new

supplied

for

each

four

amendment.

for

(6/3)

refunding mortgage
Proceeds—To retire

construction

program.

Underwriter—To be determined by competitive
bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan
Stanley & Co.; The First Boston Corp. Bids—To be re¬
a.m.

(EDT)

June 3.

★ Corning Glass Works, Corning, N. Y.
May 8 filed 201*350 shares of common stock (par $5) to
be offered pursuant to the
company's Employee Stock
Option Plan (the "1952 Plan") and its 1957 Employee
Stock Option Plan (the "1957 Plan").

held.

Proceeds—For

expansion/ and general corporate purposes.. Office —
Clifton, N. J. Underwriter—P. W. Brooks & Co., Inc.,
New York. Offering—Indefinitely postponed. Other fi¬
nancing may be arranged..
.

Domestic Finance Group Inc.
April 3 (letter of notification) 30,000 shares of 70-cent
cumulative preferred stock, series A. Price—At par ($10

share),. Proceeds—For general corporate

per

purposes.

Office—112A North Green St., P.. O. Box 3467,

Greens¬

boro, N. C. Underwriters—United Securities Co.; Greens¬
boro, N. C. and McCarley & Co., Asheville, N. C. •
Dresser

Industries, Inc.;
128*347 shares of common stock (par 500)
being offered in exchange for outstanding common stock
of the Elgen Corp. on the basis of one share of Dresser
Feb. 28 filed

Industries

for

common

3.4

Elgen's

common.

exchanges will be made unless the exchange
is accepted by the holders of at least 80% of the
standing Elgen common, and Dresser will not be
gated to consummate any exchanges unless the

offer
out¬

obli¬

offer
is accepted by the holders of at least 95% of the out¬
standing Elgen common. The offer will expire on June
17, unless extended. Underwriter—None.
ic Elsin Electronics Corp.
May 1 (letter of notification) 265,266 shares of common
stock (par two cents).Price—-$1.12V2 per share. Pro¬
ceeds—To repay bank loan; to. purchase new equipment
and for working capital.- Office—617-33
Brooklyn Ave.,
Brooklyn 3, N. Y. Underwriter—Lee Co.; New York, N. Y.
Ethodont
Feb.

par

expense

tion.

Laboratories, Berkeley* Calif.

filed

300,000 shares of

common

stock.

Price—

($5 per share). Proceeds—To cover operating
during the development period of the corpora¬

Underwriter—None.

Ex-Cell-O Corp., Detroit, Mich,
f
Nov. 25 filed 88,000 Shares of common stock (par $3)
to be offered in exchange for common stock of
Bryant

Chucking Grinder
four-tenths of

share.

Offer

will

Co.

Springfield,

Va.„

rate

mon

Ex-Cell-O share for each full Bryant
become effective upon acceptance by

holders of not less than 209,000 shares (95%) of all

Consolidated Edison Co. of N. Y., Inc.
March 3 filed $50,000,000 of first and
short-term

and

acquisition of stock of business enterprises.

Dixon Chemical

Commerce Oil

Dec.

ceived by company up to 11

stock

on the basis of one new
share for each five shares held
Price—To be supplied
by amendment. Proceeds—For re¬

York 5, N. Y.

bonds, series O, due June 1, 1988.
stock

Plah'

•

Halsey, Stuart & Co. Inc.; The First
Boston Corp.; Eastman Dillon, Union Securities & Co.;
White, Weld & Co. and Stone & Webster Securities
Corp. (jointly); Kidder, Peabody & Co. Bids—To be
received up to noon (EDT) on May 21 at One Wall St., /
New

and

bidders:

of stock and

jf Bankers Southern, Inc. (5/19-29)
April 14 filed 8,934 shares of common stock. Price—At
par ($100 per share). Proceeds—For
general corporate
purposes.
Underwriter — Bankers Bond Co., Louis¬

Feb. 27 filed 112,565 shares of
be offered for subscription

repay short-term notes and for new; construction
Underwriter—To be determined by competitive bidding.

Business—Purchase

stock of Bryant

com¬

outstanding. Underwriter—None.

Expanded Shale Products, Inc., Denver, Colo.
Jan. 29 filed 60*000 shares of common stock
(par

$1) and
$180,000 of 6% callable unsubordinated unsecured deben¬
ture notes due

1960-1964 to be offered in units of $600
of notes and 200 shares of stock. Price—$l ,000
per unit.
Proceeds—For construction of plant, working capital and

other corporate purposes.

Underwriter—Minor, Mee &

Co., Albuquerque, N. M.

Exploration Service Co., Ltd., Far Hills, N. J.
April 30 filed, together with An-Son. Offshore Drilling
Co., New- Orleans, La., 15 units, eacb
a
I /30th of the
working interest in the North Half Main

Volume 18?

Number 5742

Pass Block 48 Prospect.

ceed's—^FpF!- .'cost

The Commercial and Financial Chronicle

Price—$1Q,78G per unit.

Fluorspar Corp. of America
26 filed 470,000 shares of common stock (par XA
cents)! :Price-*-$3 per share; Proceeds—For exploration
work and working capital. - Office — Portland, Ore
Underwriter-—To be named by amendment. Sbl Gold¬
berg is President.
'

Pro-

Dec;

;applical^
well, -and^lie estimated

drillitf gr

a^.arproducer
Underovriter—Cadoi^ Ihe.; -Fat Hills,

post of completing and equipping said-well
of oil arid/or

gas.

N. J.

;•

Famous

Virginia Foods Corp.
J
Jan. 30 (letter of notification)' J9,500 shares of common
stock(par$5) and390 comirton stock purchase warrants
to be offered in tinits of 50/ shares Of stoek^and one
warrant Trice—$500 per nnit.
ProceedarrFor equip¬
ment and worMng capit^l^ ,OfOce-r^22;,vJefferson St.j
Lynchburg, Va. Underwriter, — Whitney & Co., Inc..
Washington^ D. C.

Laboratories, Inc.
150,000 shares of capital stock (par 10
cents). Price—$2.50 per share;; Proceeds—For sales pro¬
motion of company's products, working capital, addi¬
March 26 filed

tional inventory and accounts receivable, ior research
and development and for other general corporate pur¬
poses; Off ice—Brooklyn, N. Y.
Underwriters—H. Carroil & Co., Denver, Colo.; and Alfred L. Powell Co.,
•

-jAr 400 Sales Corp.
May 1 (letter of notification) 20,000 shares of common
stock. Price—At par ($10 per share). Proceeds—-To open
•a retail outlet either directly or through a
subsidiary.
Office
c/o A. J. Weiss, 1213 N. Highland Ave., Los
Angeles 38, Calif. Underwriter—None.

Inc., Clifton; N. J>

$1,000,000

filed

after

nine

notes,. payable

12%

—

issue in units of $100 or in mul¬

date

it Gap Instrument Corp.
May 2 (letter of notification) 50,000 shares of common
stock (par 10 cents). Price—$1 per share. Proceeds—To

Price—100% of principal amount. Pro¬
ceeds—To be used solely for purchase of notes and other
.indebtedness' issued in payment for, improvements on
tiples thereof.

,homes and secured by mortgages or other liens upon
improved properties. Underwriter—None.

the

cancel

the

obligations to stockholders and for general
S. Grove St., Freeport,

corporate purposes. * Office—33
Underwriter—None.

N. Y.

First International Fire Insurance Co.

shares ol commot
(par $1)
Price — $3 per share. Proceeds — Foi
capital and surplus and for first year's deficit. Office—
3395 S. Bannock St., Englewood, Colo. Underwriter American Underwriters
inc., Englewood, Colo.
*
;

General Aniline A Film Corp.,

Aug. 26 (letter of notification) 100,000

New York
filed 426,988 shares of common A stock (no
par) and 1,537,500 shares of common B stock (par $1)
Proceeds—To the Attorney General of the United States

Jan. 14, 1957

stock

Co., Denver, Colo.

Price—$3 per share. > Proceeds—To pay off debts and for
drilling and exploration costs. Underwriters—None.

April

Four Corners Oil & Gas

March 25 filed 400,000 shares of common stock (par $1).

subscription by holders of outstanding
stock on a pro rata basis; thereafter the" balance remain¬
ing, if any;, will be offered to the "public. Price-—$5 per
share to stockholders; and to the public atr a price to be
determined.
Proceeds —For expansion and other cor¬
porate purposes. Office—Richmond, Va. Underwriter—
.None.,' .V\,v
.u;-- :i■■■ 3..:' :
'-'r-';'-j-:■:■■■

months

Probable bidders: Blyth & Co., Inc., and The First Bos-*
ton
Corp.
(jointly); Kuhn, Loeb & Co.;

Brothers, and Glore, Forgan & Co. (jointly)

Bids Bail
(EDT) oil
May 13 at Room 654, 101 Indiana Ave., N. W., Washing¬
ton 25, D. C., but bidding has been postponed.
been scheduled to be received up to 3:45 p.mv

General

Devices, Inc., Princeton, N. J.
(letter of notification) 40,000 shares of com¬
(par $1) to be offered for subscription bjr
stockholders at the rate of approximately 18.5 shares
for each 100 shares held about April 15; unsubscribed
shares to public. Price—$3.50 per share. Proceeds—Forf
expansion, equipment and working capital. Underwriter

March 31

stock

mon

—None.

New York.

to be offered for

First Backers Co.,

Forest

■

Fidelity Bankers Life Insurance Corp.
March 7 filed 450,000 shares of common stock (par $1)

(220?)

•

Underwriter—To be determined by competitive

bidding.

NEW ISSUE CALENDAR

General Electronics Distributors Inc.
Feb. 10 (letter of notification) 2,090 shares of common
stock (par $25) to be offered to stockholders until May,

1958, then to the public. Price—$42 per share. Proceeds
—For loans payable to bank, inventory and working
capital. Office—735 Main Street, Wheeling, W. Va. Un¬
derwriter—None.

Georgia Casualty & Surety Co., Atlanta, Ga.
May 6 filed 450,000 shares of common stock (par $1).
Price—$6 per share. Proceeds — For general corporate

Underwriter—Buckley Enterprises, Inc.

purposes.

Getty Oil Co., Wilmington, Del.
April 11 filed 2,170,545 shares of common stock (par $4)
to be offered in exchange for capital stock (par $5) of
the Mission Development Co., on basis of one share of
Getty stock for each 12 shares of Development stock, or
five shares of Getty for six shares of Development stock.
•

Glassheat Corp.

(5/26-29)
(letter of notification) 150,000 shares of class A *
stock (par 10 cents). Price—$2 per share. Pro¬
ceeds—For general corporate purposes.
Office—1 2.
35th Street, New York 16, N. Y.
Underwriter—James
Anthdny Securities Corp., 37 Wall St., New York 5, N. Y.
Feb. 12

common

Gly Inc.
'
(letter of notification) 300,000 shares of com¬
stock (par 30 cents). Price—$1 per share. Proceeds
—For acquisition, development and
operation of oil
and gas properties.
Office—Bacon Bldg., 5th & Pino
Sts., Abilene, Texas. Underwriter — Barth Thomas A
Co., Inc., New York.

March 4
mon

(Thursday)•;"•

May 15

:v::

(Bids 11 a.m.

•

Southern

$60,000

; ;v

(Bids

'.I:-v.;

11:15

$20,000,000

"(Bids'-noonlEDT) 240,000 shares

June 11
New

$22,000,000

EDT)

(S.

——Bonds

Gas Co.——
a m.

May 22

(Whitney

——Common

June

Corp )

i.: '• Bids

(Bids

11:30

a.m.

Bonds

EDT)

■

a.m.

...

(William H.), Inc.—i———
Common
^Schmidt, Poole, Roberts & Parke)

(Kidder, Peabody. & Co. and
~

- -

100,000 shares

Transcontinental Gas Pipe Line1 Corp.——Bonds
(White* Weld & Co., and Stone & Webster Securities Corp.)
$25,000,000

;

July 1

(Bids

July 8

$25,000,000

Debs. & Stock

(Tuesday)

a.m.

(Minn.)

EDT)

Bonds

$30,000,000

Garrett &

August 26
New

Sons;

Co.)

$2,600,000

and

genera^ corporate

purposes.

Underwriter—

None.

Gulf States Utilities Co. (5/19)
April 16 filed $20,000,000 of first mortgage bonds due
1988. Proceeds—Together with other funds; to be used
for consfftrctioir program. Underwriting — To be deter¬
mined
by
competitive
bidding.
Probable bidders:

Halsey, Stuart & Co. Inc.; Merrill Lynch, Pierce, Fenner
& Smith and White, Weld & Co. (jointly); Salomon
Bros. & Hutzler and Eastman Dillon, Union Securities
& Co. (jointly); Lehman Brothers; Stone & Webster Se¬
curities Corp.; Kuhn, Loeb & Co. Bids—To be received
up to 11:15 a.m. (EDT) on May 19 at The Hanover Bank,
70 Broadway, New York 15, N. Y.
" ;
Gulf States Utilities Co. (5/19)
April 16 filed 240,000 shares of common stock (no par).
Proceeds—Together with other funds, to be used for
construction program. Underwriter—To be determined
by
competitive bidding. Probable bidders:
Merrill
Lynch, Pierce, Fenner & Smith and Lehman Brothers
(jointly); Stone & Webster Securities Corp. Bids—To
be received up to noon (EDT) on May 19 at The Han¬
over Bank, 7ft Broadway, New York 15, N. Y*
v ~

it H. & B. American Machine Co., Inc.
May 9 filed $1,024,944 of 5% collateral notes, due June
15, 1968 (subordinated) and 256,236 shares of common
stock (par 10 cents) to be offered together with cash in
exchange for the outstanding common stock (par $20)
of General Trading £o. on the basis of (a) three sharps
of American Machine Common (b) $12 principal amount
of 5% notes, and (c) $5 in cash, for each of the 85,412
outstanding shares of General Trading common, stock.
The offer is conditioned, among other things, upon its
acceptance by holders of not less than 68,330 shares of
the General Trading stock.
Office—Culver City, Calif.
Dealer-Manager — Kalman & Co., Inc., St. Paul, and
Minneapolis, Minn.
Hofmann Industries, Inc., Sinking Spring, Pa.

filed 227J500 shares of common stock (par 29
cents) to be offered in exchange for outstanding common
Dec. 20

Home Owners Life Insurance Co.

$60,000,000

(Tuesday)

offered to the public at $5 per share and 116,366 shares

England Telephone & Telegraph Co.—Debens.
(Bids to

and

—Common

Guardian Insuraneo Corp., Baltimore, Md.
t
Aug. 16 filed 300,000 shares of common stock, of which
200,000 shares are to be publicly offered and the remain¬
ing 100,000 shares reserved for issuance upon exerdle
of warrants which are to be sold at 25 cents per warrant
to organizers, incorporators, management, and/or direc¬
tors. Price—$10 per share. Proceeds—For working cap**

Nov. 1 filed 50,000 shares of class A common stock to be

be Invited)

September 4

&tCo., Ltd.) $3,330,000
&

Bonds

Telephone Corp
(Bids to be invited)

(Monday)

Robert

Birkenmayer & Co., Denver, Colo.

shares of Van Dorn Iron Works Co. Underwriter—None.

July 9 (Wednesday)

Common

Technology Instrument Co

EDT)

(Whitney & Co.) 8115,000

Common

Fuller

Bends

11:30 a.m.

Potomac Plastic Co.—

New York

Petrochemicals of Canada

(Tuesday)

Florida Power Corp.

underwriter) $87,079,200

Ltd

(S.

$40,000,000

Common
$836,610

Telephone Co.

(Hornbiewer is Weeks;
Gairdner

'Thursday)

(Offering to stockholders—no

June 2

Bonds -

Debentures

.-——

'(Bids hoon .EDT)

Northern States Power Co.

Arkansas Western Gas Co
(Offering not underwritten)

Jefferson Lake

(Bids 11

June 25 (Wednesday)

United Gas Corp

$15,000,000

Illinois Bell

Transcontinental Gas Pipe Line Corp.—Preferred
(White* Weld is Co., and Stone & Webster Securities Corp.)

May 29

$6,000,000

;

(City of), Norway——-—--r—r --Bonds
(Kuhn,. Loeb is Co., HarrimunRipley.& Co. pic., hazard
Freres is Co., ana Smith; Barney & Co.) $11,000,000

Rorer

notes and for drilling and working capital. Office—20?
Newhouse Bldg.
Salt Lake City, Utah. Underwriters

...

Bonds

—

(Bids II a,m. EDT)

—Bonds

Oslo

(Tuesday)

Central Illinois Light Co._

$25,000,000

EST)

.Bonds

Pacific Power & Light Co
/:;A(Bids 9 a.Jn..;PDT) $20,000,000

May 27

Bids

Debentures

$3,000,000

„

200,000 shares
(Tuesday)
Appalachian Power Co.
-

be invited)

June 24

-Common

Securities Corp.)

■.,

Delaware Power & Light Co._
:
v
(Bids 11:30*a.m. EDT) $25,000,000

$70,000,000

—--I-

(Charles Plohn & Co. and Clayton

(Tuesday)

•

$300,000

New York Telephone Co.-—
"

Bonds

$15,000,000

Community Public Service Co.--

—Common

Tel-A-Sign Inc.—-

—

Anthony Securities

James

■

$300,000

Co.)

(Bids to be invited)

May 26 (Monday)

Glassheat Gorpi

Co.) $5,000,000

Oklahoma Gas & Electric Co.

(Thursday)

Simplicity Pattern Co., Inc

Common

Virginia Doctors Hospital Corp..Common

Northern

Blyth & Co., Inc. and
Co.) $16,000,000

(Lee Higginson Corp.) .125,000

—Common
150,000 shares

Fuller & Go.)

New England Telephone & Telegraph Co—Com.
(Offering to stockholders—no underwriter) 735,245 shares

Colorado-—-Preferred V

8mith Barney &

(Monday)

Corp.

(Ira Haupt &

Bonds

(The First Boston Corp.,

$50,000,000

Missiles-Jets & Automation Fund, Inc

Central Hudson Gas & Electric Corp
j.:™
:
(Bids neon EDT) $18,000,000
Public Service of

Transistor

Industro

$400,000

(McDonald, Holman & Co., Inc.)

(Bids 11

June 16

Common

Management Corp.-

Brooklyn

(Bids to be invited)

•

(Wednesday).

May 21

—Bonds

Niagara Mohawk Power Corp.——

$25,000,000 "

' (Bids 10 a.m. CDT)

Bankers

(Bids 11 a.m. EDT) $10,000,000

;

Bonds

England Power Co.
.

Co.——.——Bonds

Illinois Power

I Wednesday)

Oct. 11 (letter of notification) 300,000 shares of^common
itock (par 10 cents). Price—$1 per share. Proceeds—
Fo pay balance on oil and gaa properties, and unsecured

ital

Securities & Co.) 40,000 shares

May 20 (Tuesday)

;

(Tuesday)

Virginia Electric & Power Co.-—Bonds er Debs.
:
\
• (Bids 11 a.m. ;EDT) $25,000,000

Common

(Eastman- Dillon, Union

;

-Debentures

(Federation of)—Bonds
'.i>;^,.,/Mlon,_Read.&;.fco:. Inc.) $10,000,000

Debentures

Walker-Scott Corp.

"".(EastmamJDiUon, Union Securities is;Co.) $900,000

;-5 ..(Thursday)

Rhodesia and Nyasaland

;

•.

Walker-Sbott Corp.

invited), 60,000 shares

June 10

Co.———-—..Common

Gulf States Utilities
-

EDT)

a.m.

to be

(Lazard Freres & Co. and Goldman Sachs & Co.) $50,000,000

Gulf States Utilities Co.-—-———Bonds ;
(Bias

Great Divide Oil Corp.

Preferred

■June

Common
$893,400

Bonds

EST) (50,000,000

a.m.

Owens-Illinois Glass" Cd/_

Inc.
Co.)

-•
1

(Monday)

(Bankers Bond

Pennsylvania Power Co

Incl

$206,105""

Jefferson)

(Edwin

May 19
Bankers

(Bids

Inc.)

Investing Co.,

Valley

Wilier Color Television System,

Consolidated Edison Co. of N. Y. Inc.

-Debentures

Service, Inc

(Mohawk

Chase Fund of Boston.
—Capital
(Shearson, Hammill & Co.) $10,000,000

(Friday!

May 16
Household Gas

June 3 (Tuesday)

Bonds

Co.__„—
EDT) $20,006,000

Merrimack-Essex Electric

Montana

Power

$40,000,000

(Thursday)

Co—

(Bids to be Invited) $20,000,000

of class B common stock to be offered to stockholders

at $6 per share at the rate of two new shares for each
five shares held
Proceeds- For working capital Office
—Fort

—-Bonds

Lauderdale* Fla. Underwater—None.

Omttomed

page

The Commercial and Financial Chronicle

(2208)

share of preferred and one share of common stock.

Continued from yage 39
Horlac

fflov. 20

300,000 shares of com¬
($1 per share). Proceeds—

Price—At par

stock.

mon

4383

Mines, Ltd.

loan, to purchase equipment and machinery
•nd for working capital. Office—1551-A Eglinton Ave.

repay

West, Toronto 10, Ont., Canada.
9c Co., Inc., Buffalo, N. Y.

Underwriter—D'Amico

both of Salt Lake

(5/15)

Underwriter—To be determined by competitive bidding.
Probable bidders: Kidder, Peabody & Co. and White,
Weld & Co.,

properties.

Boston

terprise Building, Tulsa, Okla.

C, due 1988.
redeem

like amount of 5%% series B bonds due 1987.

Bids—Expected to be received up to

May 15 at 441 Stuart St., Boston 16, Mass.

•

Household Gas

Service,

Inc.

Husky Hi-Power, Inc.
April 14 (letter of notification)

(jointly); Halsey, Stuart & Co. Inc.; First
Corp.; Merrill Lynch, Pierce, Fenner & Smith,
and Eastman Dillon Union Securities & Co. (jointly).
11

(EDT)

a.m.

Dec. 30 (letter of

stock.

15,000 shares of 67/2%
Price—At par ($20

notification) 200,000 shares of common
par ($1 par value). Proceeds — For
Office—1710 Hoge Bldg., Seattle 4,

Wash. Underwriter—None.

Automation

Fund,

stock

"4 Illinois Bell Telephone Co. (5/29)
fVTay 9 filed 870,7.92 shares of common capital stock to
foe

for

offered

subscription by stockholders of record

For

per

share.

common

Proceeds—

tion

purchase of land, construction and working capital.

May 29, 1958, at the rate of one new share for each six
chares held: rights to expire on June 30. Minority stock¬
holders own 5.934 shares. Price—At par (S100 per share).

Municipal Investment Trust Fund, Inc. (N. Y.j
May 9 filed 5,000 units of undivided interests in Munic¬
ipal investment Trust Fund, Series A. Price—At market
Proceeds—For investment.
Sponsor—Ira Haupt & Co

Proceeds—To repay advances from American Telephone

St.,

for property additions and im¬

Telegraph Co., and

provements.
Illinois

Underwriter—None.

1988.

tor

Proceeds

new

—

repay

construction.

short-term bank loans and

Underwriter—To

determined

by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Eastman Dillon, Union Securities & Co.;
White, Weld & Co. and Merrill Lynch, Pierce, Fenner
A: Smith (jointly); The First Boston Corp.; Harriman
Ripley & Co. Inc. Bids—To be received by company in
Chicago, 111., up to 10 a.m. (CDT) on May 20.
•

Industro

Transistor Corp.

(6/16-20)

(N. Y.)

ceeds—For working

capital and to enlarge research and
development department. Underwriter — S. D. Fuller &
Co., New York.:

4c Insured Accounts Fund, Inc., Boston, Mass.
May 12 filed 5,000 shares of common stock. Price—$5,000

.Jaer share.

Proceeds—For investment. Business—To in¬
primarily in share accounts insured by the Federal
'Savings and Loan Insurance Corp.. in savings and loan
associations throughout the country. Underwriter—None.
vest

jPen H Hazen

is President.

Purchase Plan.
International

April

Telephone & Telegraph Corp,

17 filed $28,692,000 of 478%

inated

debentures

due

May

15,

convertible

subord¬

1983

being offered for
cubscription by stockholders of record May 6, 1958 at
rate of $100 of debentures for each 25 shares held:
rights
to expire on May 21. Price—100% of
principal amount,
proceeds—For working capital, capital
expenditures, in¬
vestments in subsidiaries, etc.
Underwriter — Kuhn,
& Co., New York.
Janaf, Inc., Washington, D. C.
■July 30 filed $10,000,000 of 5^-8% sinking fund deben¬
tures due Aug. 1, 1972 and 100,000 shares of common
itfock (par 20 cents) to be offered in units of a $1,000
debenture and
.

and

10 shares

stock,

or a

$100 debenture

share of stock.

Price—Par for debenture, plus
62 per share for each 10 shares of stock. Proceeds—For
construction of a shopping center and other capital im¬
one

provements: for retirement of present preferred shares;
Th3 lor IVOrking capital, etc. UwlerYlliiti'- -None

4c. JeUfferson Lake Petrochemicals of Canada, Ltd.
(6 2-6)

May 7 filed 660,000 shares of
which 600,000 shares

are to

in the U. S. and the

rest

common,

yy.V% //•:(.'' •"■Cv
stock '(pal $T;)7 of

be offered to
in

Canada.

public; :QHfi«half
Thft ■ether 60,000

Ishares

are to be reserved for purchase
by undei-writers
through warrants. Price—$5.50 per share. Proceeds—For
working capital and general corporate purposes: and
to develop company's projects in Canada.
Underwriters

—Hornblower & Weeks and Robert Garrett & Sons in
the United States; and Gairdner & Co., Ltd. in Canada.
Life

Insurance

Securities

Corp., Portland, Me.
March 28 filed 1,000,000 shares of
capital stock (par $1).
Price—$5 per share. Proceeds—To acquire stock control
of "young,. aggressive and
expanding life and other in'•urance companies and related companies and then to
'operate such companies as subsidiaries." Underwriter—
First Maine Corp., Portland, Me.
★ Link-Belt Co., Chicago, HI.
May 7 filed 25,982 shares of common stock (par $5) to be
offered only to a selected group of officers and employeees of the company and its subsidiaries under its
Additional Provisional Compensation Plans.

(letter

notification)

5,000

^cumulative preferred stock (par $50) and 5,000 shares
of common stock (par $1) to be offered in units of

promissory

four

for

notes

each

of Lake Superior,
principal amount

$100

of both companies.

notes

reduce

Underwriter—Johnson & Johnson,

bank

one

Calvert
&

Co.,

Goldman, Sachs

Corp., New York

in exchange for oil and gas properties and
3,000 for serv¬
ices; the remaining 664,818 shares are to be offered to
the public. Price—To be supplied by amendment. Pro¬
ceeds—To selling stockholders.
Underwriter—Market
Securities, Inc., Salt Lake City, Utah.

—

Pecos Valley Land Co., Carlsbad, N. Mex.
13 filed 2,000,000 shares of common stock

and

March

(par

4 Nedow Oil Tool Co.

May 5 (letter of notification) 150,000 shares of common
stock (par one cent). Price—$2 per share. Proceeds—To
pay loan; to acquire fishing tools for leasing; and for
working capital. Office—931 San Jacinto Bldg., Houston,
Underwriter—T. J. Campbell Investment

Tex.

Paradox Production Corp., Salt Lake City, Utah
April 18 filed 767,818 shares of common stock (par $1),
of which 100,000 shares are to be offered by the
company

loans.
Underwriters
Dillon,
Halsey, Stuart & Co. Inc., both
Offering—Now expected in June.

Inc.

Md.

—None.

Gas

Co.

Office—2502 N.
Underwriter-—Burnett

expenses.

18,

yield 5% compounded semi-annually. Proceeds—
making investments and loans in companies or en¬
terprises that the corporation is already financially in¬
terested in, or for other corporate purposes. Underwriter

Pipeline Co. of America
Nov. 19 filed $40,000,000 of first mortgage pipeline bonds
due 1977.
Price—To be supplied by amendment. Pro¬
Read

operating

For

Pittsburgh, Pa.

ceeds— To

and

Baltimore

Co., both of New York.

Manganese Co., Newcastle, Pa.
Marcb 21 (letter of notification) 200,000 shares of com¬
mon stock (par $1).
Price—$1.50 per share. Proceeds—

Natural

ap¬

with interest payable at the rate of 5% and at an offer¬
ing price of 100% of principal amount; and (b) capitalappreciation notes, at a discount from maturity value so

National

For mining expenses.

Palestine Economic

Offer is conditional upon its acceptances by
at least 95% of the outstanding shares and

such notes.

Co., Inc.,

cents), of which 300,000 shares are to be offered for
sale by the company and 1,700,000 shares by the
present
holders thereof.
Price—$1 per share. Proceeds—From
sale of the 300,000 shares, to be used to pay 6%
mortgage
notes and interest and to pay back tax claims, and inter¬
est due on the note to Mr. Harroun. Underwriter—Wiles

Houston. Tex.

Co., Dallas, Texas.

•

England Power Co.

4 New

(6/11)

May 12 filed $10,000,000 of first mortgage bonds, series
H, due 1988. Proceeds
Together with approximately
$5,000,000 from a common stock issue to New England
Electric System, the parent, to be applied first to pay¬
ment of short term notes and any balance will be used
for capital expenditures or to reimburse the treasury
—

therefor.yUnderwriter—To be determined by competi¬

tive bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
The First Boston Corp.; Kuhn, Loeb &

Co., Eastman

Dillon,

Union

Hutzler

Securities

(jointly);

Co.

and

Salomon

Bros.

Pennsylvania Power Co. (6/3)
May 7 filed 60,000 shares of cumulative preferred stock
(par $100). Proceeds—Together with cash on hand and
estimated to be received from operations, toward the
company's construction program. Underwriter — To be
determined by competitive bidding.
Probable bidders:
The First Boston Corp. and Blyth & Co. Inc. (jointly);
Lehman Brothers; Smith, Barney & Co.; Merrill Lynch,
Pierce, Fenner & Smith; Glore, Forgan & Co., and W. C.
Langley & Co. (jointly); Kidder Peabody & Co. Inc.,
and White, Weld & Co. (jointly). Bids—Expected to be
received after June 2.

Lehman

Brothers; Merrill Lynch,
Pierce, Fenner & Smith: Kidder, Peabody & Co. and
White, Weld & Co. (jointly); Equitable Securities Corp/
and Blair & Co., Inc. (jointly). Bids—Scheduled to be
received up to 11 a.m. (EDT) on June 11 at 441 Stuart
St., Boston .3,6, Ma?s.
•

Peoples Protective Life insurance, Co.
March 27 filed 310,000 shares of common stock

(par $1),

consisting of 62,000 shares of class A-voting stock and
248,000 shares of class B-non-voting stock to be offered
in units consisting of one- class - A and four class B
shares.
Price
$75 per unit.
Proceeds — For working
—

tlSW York Telephone Co, (5/26)
May'2 filed $70,000,000 of refunding mortgage bonds,
series K, due May 15, 1991. Proceeds—To refund a like
amount of series J 4 Va% bonds

—To

sold last

year.

capital and for
states

determined by competitive bidding.
Probable
Halsey, Stuart & Co. Inc.; Morgan Stanley &
(EDT) on May
Room 1600. 140 West St.. New York, N. Y.

Nichols.

per

George E. Coleman, Jr., is President.

•

Northern

Virginia Doctors Hospital Corp.

For building fund.

Church, Va.
D.

(6/16)

Office

—

522 Leesburg Pike, Falls

Underwriter—Whitney & Co., Washington,

C.
Oil

common

of record

March 24, 1958 at the rate of

St., Binghamton, N. Y.
•

Potomac

Plastic

new

one

new

share for

Underwriter—None.

Co.

(7/1)

(letter of notification) $57,500 of 6% subordi¬

nated convertible debentures and 57,500 shares of class A
common stock
(par one cent) to be offered in units of
500 shares of stock and $500 of debentures.

Price—$1,000
Proceeds—-For equipment and working cap¬
Pike, Rockville, Md. Under¬
writer—Whitney & Co., Inc., Washington, D. C.

per

unit.

ital.

Office—1550 Rockville

Prairie Fibreboard

Employees may purchase 50,000 shares of unsubscribed stock. Price—To stockholders,

the rate of

held; unsubscribed shares to be

offered to
debenture holders and to others.
Price—$8 per share.
Proceeds—For working
capital.
Office—27 Chenango

Inc., Salt Lake City, Utah

for each share then held.

stockholders at

March 31

April 4 (letter of notification) 30,000 shares of common
stock (par one cent). Price—$10 per share. Proceeds—

Underwriter—None.

Policy Advancing Corp.
,•
25 (letter of notification) 30,250 shares of com¬
stock (par $5) to be offered for subscription by

*ach

of common stock (no par)
share. Proceeds—To repay short term
bank loans and for working capital.
Business — Sells
hatching eggs and day-old chicks. Underwriter—None
Price—$27

Tenn.

President and Board Chairman.

mon

Inc., Exeter, N. H.

Nov. 14 filed 25,000 shares

development of district offices in the
company is currently licensed to do

Office—Jackson,

March

Bids—To be received up to 11:30 a.m.

26 at

the

R. B. Smith, Jr., is

bidders:
Co.

where

business.

Underwriter

April 4 filed 597,640 shares of common stock (par $1)
to be offered for subscription by common stockholders

Mayfair Markets
March

negotiable

rate

total cost

March 31 filed $2,000,000 of 5% notes, due Oct. 1, 1963
to be offered in two types:
(a) interest-bearing notes

Murphy stock for each share of Superior Re¬
finery and Lake Superior stock; also in exchange for
outstanding negotiable promissory notes and second
mortgage notes of Superior Refinery, and for outstand¬

of New York.

4r International Business Machines Corp.
May 14 filed 325,000 shares of capital stock (par $5) to
foe offered pursuant to the IBM Employees 1958 Stock

shares of

ing

Underwriters—Lazard Freres & Co. and

holders

Feb. 28 filed 150,000 shares of common stock (par 10
cents). Price—To be related to the market price. Pro¬

■

(par $1) to
exchange for outstanding common shares
Superior Refinery Owners, Inc., and Lake Superior
Refining Co. (both of Superior, Wis.), at the rate of six
offered

4 Owens-Illinois Glass Co. (6/5)
May 14 filed $50,00,000 sinking fund debentures due
1, 1988. Proceeds—To retire $15,266,000 of deben¬
tures of National Container Corp. (merged into
company
in 1956) and all of the $20,000,000 short-term
borrowings
at maturity; balance to be added to working
capital.

Murphy Corp., El Dorado, Ark.
be

April 23 filed $25,000,000 of first mortgage bonds, due

power

June

May 5 filed 71,958 shares of common stock

(5/20)

Power Co.

installed

Sparks, Md.

New York.

Co., En¬

Inc. ;
(letter of notification) 23,200 shares of com¬
mon class B stock
(par $1). Price—$5 per share. Pro¬
ceeds—For completion of plant plans; land; construc¬

Underwriter—Southeastern Securities Corp., New York.

Price—$5

(par 40 cents).

•

O. T. C. Enterprises

March

Motel Co. of Roanoke,

Inc., Roanoke, Va.
Nov. 18 (letter of notification) 60,000 shares of

Securities

...

proximately 155,590,000 kroner. Underwriters — Kuhn,
Loeb & Co., Harriman Ripley & Co. Inc., Lazard Freres
& Co., and Smith, Barney & Co., all of New York.

500,000 shares of capital stock (par $1).
Price—$10 per share. Proceeds—For investment. Under¬
writer—Ira Haupt & Co., New York.

share)i Proceeds—For working capital. Address—
P.O. Box 380, Cody, Wyo. Underwriter—The First Trust
Co. of' Lincoln, Lincoln, Neb.
toer

Underwriter—Universal

kilowatts

000

Inc.

filed

Mineral

(City of), Norway (5/27)
May 6 filed $8,000,000 of sinking fund external loan
bonds, due June 1, 1973 and $3,000,000 of serial external
loan bonds, maturing June 1, 1960, 1961, and 1962. Price
—To be supplied by amendment. Proceeds^—For finan¬
cing in part the completion of the Hemsil Hydro-Electric
Power Development Project which is designed to pro¬
vide the City by the end of 1960 with an additional
152,-

—

4 Missiles-Jets
(6/16-20)

May

convertible series A preferred stock.

Price

mining expenses.

Oslo

Mineral Basin Mining Corp.

(5/16)

(letter of notification) $60,000 6% convertible
debentures dated June 1, 1958 and due June 1. 1973
tPriee—100% plus accrued interest (in denominations of
,000 and $500 >. Proceeds—For repayment of debt and
Working capital. Office—Clinton, N. Y. Underwriter—
JVIohawk Valley Investing Co., Inc., Utica, N. Y.
,
'

City,'Ui»hy,y-/y

j /. t. „;., y , ; >
Operations, Inc., Tulsa, Okla.
April 14 filed 200,000 shares of common stock. Price—
$2.50 per share. Proceeds—For payment of loans, various
equipment, and a reserve for future operations. Business
—To acquire and operate mining claims and oil and gas
Oil

bonds, series
Proceeds—Together with other funds, to

Park St., Boston, Mass.

fVIay 1

Thursday, May 15, 1958

per share; and to public, $2 per share. Proceeds—
mining, development and exploration costs, and for
working capital and other corporate purposes. Under¬
writers—Harrison S. Brothers & Co., and Whitney &
Co.,

Feb. 11 filed $20,000,000 of first mortgage

!
Houghton Mifflin Co.
April 1 (letter of notification) 434 shares of common
0tock (par $100) to be offered to stockholders of record
■tfarch 12, 1958. Price—$115 per share. Proceeds—To be
•idded to the general funds of the company. Office — 2

Underwriter—None.

For

None.

Merrimack-Essex Electric Co.

$1.75

Price
Proceeds—For working capital. Office—
Bandini Blvd., Los Angeles, Calif. Underwriter—

—$60 per unit.

(letter of notification)

Ltd.

Feb. 28 filed 210,000 shares of common stock
to

(par $1.50)

be offered for sale to residents of Canada in the Prov¬

inces

Manitoba,

Saskatchewan

and

Alberta .and

residents of the United States "only in the State of North
Price — $2.50 per share. Proceeds — For con-

Dakota."

Volume

187

gtruction

Number 5742

Office

purpose.

The Commercial and Financial Chronicle

Saskatchewan,

Saskatoon,

—

-•>

>••

•

-•

Private Enterprise, Inc., Wichita. Kansas
Hay 5 filed* 125,000 shares of common 1 stock. Price—$10
per share.
Proceeds— To be used to organize, or re¬
organize and then operate companies in foreign nations, *
principally; but not exclusively, in the Far East, Near
East and Africa.

Underwriter—None.

Public Service Co. of Colorado

(5/21)

April 29 filed 160,000 shares of cumulative preferred
stock (par $100). Price—To be supplied by amendment.
Proceeds—For 1958 construction program. Underwriters
—The First Boston Corp., Blyth & Co., Inc. and Smith,
Barney & Co., all of New York.
V
Resolite

Corp., Zelienople, Pa.
(letter of notification) 20,000 shares of com¬
mon stock (no par) to be offered pro-rata to stockhold¬
ers, then to the public. Price—$7.50 per share. Proceeds
—To pay notes payable and bank loans and for working
capital. Underwriter—None.
■

March 4

(6/10)

^Rhodesia and Nyasaland (Federation of)

May 8 filed' $10,000,000 of external loan bonds due May
1, 1973. Price—To be supplied by amendment. Proceeds
—Together with a loan of $15,000,000 from World Bank,
to

used, mainly for capital expenditures, including
Underwriter—Dillon, Read & Co.
Inc., New York.
~
/
railroad development.
:

Rockcote Paint Co.

March

(letter of notification) 14,250 shares of 7%
(par $10) and 10,000 shares
Price—For preferred stock,
$10.25 per share; for common stock, $8 per share. Pro¬
ceeds—For working capital. Office—200 Sayre St., Rockford, III. Underwriter — The Milwaukee Co., Milwau¬

kee, Wis.
Rockwell-Standard Corp., Coraopolis, Pa.

April 28 filed 285,600 shares of fommon stock (par $5)
exchange for the capital stock of Aero
Design & Engineering Co. in the ratio of 1 5/7 shares of
to be offered in

Rockwell-Standard stock for each share of Aero stock.

Not less than 80%, or 133,280 Aero shares, may be ac¬

Offer will expire

cepted.

May 31.

Rocky Mountain Quarter Racing Association
(letter of notification) 300.000 shares of common

pay

Price—At par

($1 per share).
outstnding indebtedness. Office

Proceeds—To re¬
Littleton, Colo.

—

Underwriter—R. B. Ford Co., Windover Road, Memphis.
Term.
•

Rorer

(William H.)

Inc.

(5/27)

May 6 filed 100,000 outstanding shares of capital stock
(par $1), Price—To be supplied by amendment.
Pro¬
ceeds—To selling stockholders. Business—The company
makes and sells ethical pharmaceuticals.
Underwriters
—Kidder, Peabody & Co., New York, N. Y., and Schmidt,
Poole, Roberts & Parke, Philadelphia, Pa.
Samedan Associates,

Inc., Ardmore, Okla.
March 24 filed 98,613 shares of common stock (par $10).
Price—$14.25 per share. Proceeds—For working capital,
acquisition, development, and exploration of oil and gas
properties. Underwriter—None.
•

Simplicity Pattern Co. Inc.

Oct. 10 filed

125,000 shares of

(5/22)

common

stock

(par $1).

Price—To be supplied by amendment. Proceeds—To tw»

selling stockholders.

Underwriter—Lee Higginson Corp.,

New York.

^ Small Industrial Plants, Inc.
,
May 8 (letter of notification) $150,000 of 8% debenture
bonds, series A, B and C, maturing serially from 1958
to 1973; to be offered in units of $500 each. Price—At
par. Proceeds—To finance a building. Office—348 Main
St., Farmingdale, N. Y. Underwriter—None.
-^ South Dakota lndustrial Development Credit
Corp.
May 6 (letter of notification) 8,000 shares of common
stock. Price—At par ($25 per share). Proceeds — For
lending purposes. Office—Marvin-Hughitt Hotel Bldg.,
Huron, S. D. Underwriter—None.
Southern Electric Steel Co.
Dec.

23 (letter of notification) $300,000 of 6% second
mortgage serial bonds (with common stock purchase
warrants). Price—At par (in denominations of $1,00(

each).

Proceeds—For payment of demand notes pay¬
capital. Office—2301 Huntsville Road

able and working

Birmingham, Ala.

Underwriter—None.

Springfield Fire & Marine Insurance Co.
March 28 filed 1,000,000 shares of common stock (par $2%
being offered in exchange fon capital stock of Monarch
Life Insurance Co. at rate of VA shares of Springfield

for each Monarch
p.m.

(EDT)

share. The offer will expire at 3:30

May 29, unless extended. Dealer-Man¬

agers—The First Boston Corp. and Kidder, Peabody &

Co., both of New York.
-

Standard Dredging Corp.

April 9 (letter of notification) 33,000 shares of common
stock (par $1). Price—At market (estimated at about $9

share). Proceeds—To selling stockholders. Office—
St., New York 4, N. Y. Underwriter—Straus.
Blosser & JVlcDowell, Chicago, 111.

per

80 Broad

Standard Oil Co. (New Jersey)
May 5 filed 2,246,091 shares of capital stock (par $7)
to be offered in exchange for common shares of Inter¬
national Petroleum Co., Ltd., of Toronto, Canada, and
Coral Gables, Fla., in the ratio of nine shares of Stand¬
ard Oil stock for 10 shares of International stock.

Offer

would expire on July 1, 1958.

•jr Stein Roe & Farnham Stock Fund Inc.
May 12 filed (by amendment) an additional
shares of capital stock (par $1).
ceeds—For investment.

■

Feb. 27

stock (par $1) to be offered pro-rata to stockholders on';
the basis of one new share for 10 shares owned. Price *

Process

to beneficiate

Southwest

manganese

ores.

Underwriter—

Shares, Inc., Austin, Texas.

Sun Oil Inc., Philadelphia, Pa.
April 22 filed 15,000 memberships in the Stock Purchase
for the employees of the company and its sub¬

—$4

(letter of notification)

per

share.

Office—203

7,500 shares of common,

Proceeds—For drilling for oil and ga«L '
Street, Coudersport, Pa. Under-;

Main

writer—None.

•

; T

Transcontinental Gas Pipe Line Corp. (5/27-28)
May 5 filed $25,000,000 of first rnortgage pipe line bondadue

1978

and 150,000 shares of cumulative preferred
(no par—stated value $100 per share); Price—T<*
Proceeds—For construction.

Plan

stock

sidiaries, together with 188,000 shares of common stock
(no par) which may be purchased by the trustees of the

be supplied by amendment.

plan during the period July 1, 1958, to June 30, 1959,
with respect to the 1958 plan. Registration also covers

243,288 shares of outstanding common stock which may
be offered for possible sale by the holders thereof during
the period July 1, 1958 to June 30, 1959. Underwriter—
None.
•

Symington-Gould Corp., Depew, N. Y.

Feb. 23 filed 593,939 shares of common stock and 263,97*
warrants being issued in exchange for the stock of the

Wayne Pump Co. under

which provides for conversion of each share of capital stock oi
Wayne Pump into (1) 2^4 shares of common stock of the
surviving corporation to be known as Symington Wayne
Corp., and (2) an option to purchase an additional share
at prices commencing at $10 per share.
Underwriter—
None.

merger agreement

program. Underwriters—White, Weld & Co. and
& Webster Securities Corp., both of New York.

Stone

Trask

Manufacturing Co.
(letter of notification) 15,000 shares of common
Price — $4.50 per share. Proceeds — Foe
working capital and payment of current liabilities. Ad¬
dress—Wrightsboro section, 3 miles north of Wilmington,,,
NLC. Underwriter—Selected Investments, Wilmington,

Dec. 5

stock (par $5).

N. C.

United Artists Associated Inc., New York
March 31 filed $15,000,000 of 6% subordinated

sinking

fund

debentures, due 1963 to be offered in exchange for
capital stock and warrants and debentures of Associated
Artists Productions Corp.
United Employees Insurance Co.
April 16 filed 2,000,000 shares of common stock (par $5).
Price—$10 per share. Proceeds — For acquisition of
operating properties, real and/or personal, including

500,000

Price—At market. Pro¬

Office—Chicago, 111.

Syntex Corp. (Republic of Panama)
July 24, 1957 filed 1,202,730 shares of common stock
being offered for subscription by common stockholders
of Ogden Corp. on the basis of one new share for each
four shares held and to holders of options on the basis
of one share for each option to purchase four shares el
Ogden common stock; unsubscribed shares to be offered
to certain employees and officers. The record date for
the subscription offering will be April 24, 1958, and
rights will expire on May 10, 1958. Price—At par ($2
per share). Proceeds—To pay outstanding obligations to
Ogden Corp. Untfen^iter-^None.
Tax

Exempt Bond Fund,* Inc., Washington, D. C.
40,000 shares of common stock. Price—$21
shpre. Proceeds — For investment. UnderwriterEquitable Securities Corp., Nashville, Tenn. OfferingHeld up pending passing of necessary legislation by
Congress.
June 20 filed

office furniture, fixtures, equipment and office space, by
lease

purchase.

writer—None.

Office

Myrl

—
Wilmington, Del. Under*
McKee of Portland, Ore., Is*

President.

r.•'

;

United Hardware Distributing Co.
May 5 filed 1,475 shares of 5% cumulative

preferred
(par $100), and 11,750 shares of common stock
(par $10) to be offered to retail hardware dealers who
are
stockholders of the company to equalize holdings.
Prices—For preferred stock, $100 per share; for common
stock, $50 per share. Proceeds—For working capital to
'be used to increase inventory of hardware items. Office
—Minneapolis, Minn. Underwriter—None.
stock

per

Oct. 31
stock.

Trans-Eastern Petroleum Inc.

March 31 filed

cumulative preferred stock
of common stock (par $1).

Strategic Minerals Corp. of America, Dallas, Tex.
$2,000,000 of first lien mortgage 6% bondi
975,000 shares of common stock (par 10 cents). Price
—For bonds, 95% of principal amount; arid for stock $3
per share. Proceeds—To erect and operate one Or more
chemical processing plants using the Bruce - Williams

and

Canada. Underwriter—Allied Securities Ltd., Saskatoon,
Canada^-

(2209)

•

Technology Instrument Corp. (6/2-6)
27 filed 260,000 common shares (par $2.50) oi
which 204,775 shares are for account of, three selling
stockholders and 55,225 shares are for account of com¬
pany. Price — $10 per share. Proceeds — For working
capital and general corporate purposes. Business — De¬
velops and manufactures precision potentiometers and
other precision electronic components and measuring in¬
struments.
Office—Acton, Mass. Underwriter — S. D
Fuller & Co., New York.
March

•

Tel-A-Sign Inc., Chicago, III. (5/26)
April 24 filed 200,000 shares of common stock (par 20
cents). Price—To be supplied by amendment. Proceeds
—To retire $197,000 of notes and to reduce accounts pay¬
able by $150,000; the balance to be used for general
corporate purposes, including the increase of working
capital. Underwriters—Charles Plohn & Co., New York,
N. Y., and Clayton Securities Corp., Boston, Mass.
Tele-Broadcasters, Inc.
March 31 (letter of notification) 40,000 shares of com¬
mon
stock (par five cents). Price — $3.25 per share.
Proceeds—To complete the construction of Station KALI.
Office—41 East 42nd

—Sinclair Securities

St., New York, N. Y. Underwriter
Corp., New York, N. Y.

Texas Calgary Co., Abilene, Texas
April 30 filed 2,000,000 shares of capital stock (par 25
cents). Price—To be supplied by amendment. Proceeds
—To selling stockholder.
Underwriter—Thomson Kernaghan & Co., Ltd., Toronto, Canada. To be offered in
Canada only.

Timeplan Finance Corp.
March 25 (letter of notification) 27,272 shares of 70-cent
cumulative preferred stock (par $5) and 27,272 shares
of

stock

common

(par 10 cents) to be offered in units
Price—$11 per unit.

of one share to each class of stock.

Proceeds

—

For working

capital.

Office

—

111

E. Main

St., Morristown, Tenn. Underwriter—Valley Securities
Corp., Morristown, Tenn.
Tip Top Oil & Gas Co., Salt Lake City, Utah
April 15 filed 220,000 shares of common stock, of which
200,000 shares are to be publicly offered. Price—$5 per
share. Proceeds—To drill two new wells and for general

Underwriter
Co., Inc., Salt Lake City, Utah.

corporate purposes.
&

—

Andersen-Randolph

Trans-America Uranium Mining Corp.

3,000,000 shares of common stock (par ont
Price—25 cents per share. Proceeds—For land
acquisition, exploratory work, working capital, reserves
Nov. 6 filed

mill).

Al¬

Trans-Cuba Oil Co., Havana, Cuba
March 28 filed 6,000,000

United States Sulphur Corp.

Oct. 8 filed 1,500,000 shares of common stock (par ortc

cent). Price—$1 per share. Proceeds—For plant rental
etc.; to retire corporate notes; for core drilling; for
working capital; and for other exploration and develop¬
ment work.
Office
Houston, Texas. Underwriter—
None.,,
'
T •
:
.
—

...

United States Telemail Service, Inc. 17 filed 375,000 shares of common stock

Feb.

(par $l)w
Price—$4 per share. Proceeds—To purchase equipment
and supplies and for working capital and other corporate
purposes. Office—Salt Lake City,, Utah.
Amos Treat & Co., Inc., of New York.

Underwriter—

^ United Tungsten Corp.
May 6 (letter of notification) 110,000 shares of capital
stock. Price-—At par ($1 per share). Proceeds—For min¬
ing expenses. Office—312 Byington Bldg., Reno, Nev,
Underwriter—None.

Uranium Corp. of America, Portland, Ore.
April 30 filed 1,250,000 shares of common stock (par II
cents). Price—To be supplied by amendment (expected
to be $1 per share). Proceeds—For exploration purposes.
Underwriter—To be named by amendment. Graham Al¬
bert Griswold of Portland, Ore., is President.
Utah Minerals Co.

(letter of notification) 900,000 shares of com¬
Price—At par (10 cents per share). Proceeds
—For mining expenses. Office—305 Main St., Park City/
Utah. Underwriter—Walter Sondrup & Co., Salt Lake
City, Utah.
April 11

mon

stock.

if Utah Oil Co. of New York, Inc.
May 6
stock.

(letter of notification)
Price

—

At par

($1

per

300,000 shares of capital
share). Proceeds — For
Office—574 Jefferson

development of oil and gas lands.

i Townsend International Growth Fund, Inc.
May 14 filed 1,000,000 shares of capital stock (par one
cent). Price—At market.
Proceeds — For investment.
Office—Short Hills, N. J.
Underwriter—FIF Manage¬
ment Corp., Denver, Colo.

and other corporate purposes. Underwriter—None.
fred E. Owens of Waterloo, la., is President.

^United States Lithium Corp.
May 5 (letter of notification) 580,000 warrants bearing
rights to purchase 530,000 shares of common stock (par
10 cents); warrants expire Oct. 18, 1960.
Price — At'
market.
Proceeds—For
mining expenses.
Office—504
Walker Bank Bldg., Salt Lake City, Utah. Underwriters.
—Peter Morgan & Co. and Greenfield & Co., Inc., both
of New York, N. Y.; Dagget
Securities, Inc., Newark,
N. J.; Julius Maier Co., Inc., Jersey City, N. J.; Bauman
Investment Co., New Orleans, La.; and Walter Sondrup& Co. and Thornton D. Morris & Co., both of Salt Lake
City, Utah.

shares of common stock (par 10

cents) to be offered for subscription by holders of out¬

standing shares of capital stock and holders of bearer
shares, in the ratio of one additional share for each share
so
held or represented by bearer shares.
Price—50c
per share.
Proceeds—For general corporate purposes,
including exploration and drilling expenses and capital
expenditures. Underwriter—None.

Ave., Rochester 11, N. Y. Underwriter—Frank P. Hunt
& Co., Inc., Rochester, N. Y.

Virginia Electric & Power Co.

(6/10)

May 6 filed $25,000,000 of first and refunding mortgage
bonds, series O, due June 1, 1988. Proceeds—For con¬
struction expenditures or to reimburse the treasury
thereof. Underwriter—To be determined by competitive!

Halsey, Stuart & Co. Inc.*
White, Weld & Co.; Eastman
Dillon, Union Securities & Co.; Stone & Webster Securi-;
ties Corp.; Kuhn, Loeb & Co. and American Securities,
Corp. (jointly). Bids—To be received up to 11 ana.
(EDT) on June 10 at Room 238, 43 Exchange Place,
bidding.

Probable bidders:

Salomon Bros. & Hutzler;

New

York, N. Y.

Calif. (5/19-22)
April 28 filed $900,000 of 6% subordinated sinking fund
debentures due 1973, with warrants, and 40,000 shares of
common stock (par $1), of which the company proposes
to offer $400,000 of the debentures (with warrants) in
Walker-Scott Corp., San Diego,

Continued

page

The Commercial and Financial Chronicle

(2210)

Continued from page

—To

exchange for its presently outstanding 4,000 shares of
7% preferred stock at the rate of $100 of debentures for

Price—At par for debentures;
and for stock to be supplied by amendment. ProceedsTogether with other funds, to repay an insurance loan,
and for working capital, etc. Underwriter — Eastman
Dillon, Union Securities & Co., New York, N. Y., and
each share of preferred.

San Diego, Calif.

West Coast Airlines, Inc.,
Feb.

$600,000 of

filed

Seattle, Wash.
subordinated debentures,

dfce 1970, and 150,000 shares of common stock (par $1)
be offered for subscription by common stockholders

of
record March 1, 1958, in units of $100 principal amount
of debentures and 25 common shares, at rate of one unit
for each 31 common shares held on the record date.
Price—$125 per unit. Proceeds—To finance the acquisi¬
tion of six

Fairchild F-27 "Friendship" aircraft on

new

during 1958, and related costs. Under¬

order for delivery

writer—None.
Western Copperada

(Canada)

Mining Corp.

velopment and exploratory work, drilling costs and sur¬
vey, and for working capital.
Office — 1205 Phillipi
Square, Montreal, Canada. Underwriter—Jean R. Vedit»
Co., Inc., New York.
Inc.

April 17 (letter of notification) 2,853 shares of common
stock (no par) being offered to minority stockholders at
rate of one new share for each 10 shares held as of April

8, 1958; rights to expire on May 29.

Price

—

$50 per

chare. Proceeds—For plant improvement, expansion and

Office—195 Broadway, New
Underwriter—None.

general corporate purposes.
York

7, N. Y.

Westland Oil Co., Minot, N. Dak.
April 17 filed 7,799 shares of capital stock to be offered
for subscription by stockholders of record March 24 at
rate of

excess

share for each four shares held and one

new

one

additional

for

the

balance

such

holdings

the number of shares divisible by

be offered holders

outstanding 5%

four; also
subordinated

debentures of record March 24 at rate of five shares for
each $1,000 of debentures then
share.
Proceeds—For working

held. Price — $60 per
capital. Underwriter—

None.
•

Wilier Color Television System,

Inc. (5/16)
April 2 (letter of notification) 72,035 shares of common
stock (par $1) of which 10,000 are to be offered to stock¬
holders at $2 per share and the remaining 62,035 shares
are to be publicly offered at $3 each.
Proceeds — For

general corporate

Office—151 Adell Avenue,
—
Edwin Jefferson, 39

purposes.

Yonkers, N. Y. Underwriter
Broadway, New York 6, N. Y.
•

loans

and

for

construction

Wisconsin Power & Light Co.
filed 30,000 shares of 4.76%

April 23

Laboratories, Inc.
was reported that company plans
to issue
and sell about $500,000 of common stock. Proceeds—For
working capital and other corporate purposes. Business
Office—391 Ludlow
Electric

California

Power

St., Stamford,. Conn,;

• Wisconsin Power &
Light Co.
April 23 filed 241,211 shares of common stock (par $10)
being offered for subscription by common stockholders
of record May 5, 1958 at rate of one new share for each
12 shares held; rights to expire on
May 27. Price—
$26.25 per share. Proceeds—To repay bank loans and for

construction

program.
Underwriters—Smith, Barney &
Co., New York; and Robert W. Baird & Co., Milwaukee,

Wis.

•

Acme

Steel

•

Central

May 13 it

Illinois

Light Co.

Probable bid-

bers:

& Curtis.

capital stock at the rate of one new share for each 10
shares held; rights to expire on May 20. Price—$30 per
share. Proceeds—To increase capital and surplus/ Un¬

program,

work¬

Underwriters—Blyth & Co.

Lynch, Pierce, Fenner & Smith.

\ Alco Products Inc.
March 6 it was announced that the
company is consider¬
ing plans for long-term refinancing. Proceeds—For
pay¬
ment of all notes payable and
provide the company with
additional working capital.

Underwriter—Eastman Dil¬

lon* Union Securities &

Co.

may

handle

afock financing.

any

common

derwriter—None.

//;•/;/

Columbus & Southern Ohio Electric Co*
Dec. 9 it

was reported company piaus
to i»sue and sell >
about 250,000 additional shares of common stock. Under¬

writers

—

(jointly).
in 1958

Dillon, Read & Co. Inc. and The Ohio Co.
Permanent financing not expected until late
possibly early in 1959.
/:"'//"

Community Public Service Co.
March

reported that this company plans to
$3,000,000 of sinking fund debentures due

Consolidated

May 6 the

;

7?**'?*''
-./^/^v-;

Freightways, Inc.

company

offered its

common

stockholders of

record

May 1, 1958 the right to subscribe on or before
May 21 for 270,416 additional shares of common stock
(par $2.50) at the rate of one new share for each five
shares held.
Price
$14.50 per share. Proceeds
For
working capital and general corporate purposes. Under¬
writer—Blyth & Co., Inc., San Francisco, Calif.; and
New York, N. Y.
•
V /
—

Consolidated
Feb.

was

Natural

Gas

Inc.; The First Boston Corp. and White, Weld & Co.
(jointly); Stone & Webster Securities Corp.; Blyth &
Co., Inc.; Drexel & Co. and Dean Witter & Co. (jointly).
The First Boston C6rp. and White, Weld & Co. (jointly)
underwrote lc(st common stock financing/ There is no1

Co.

preferred

company

during

1958.

Indications

Atlanta Gas Light Co.
May 5, the directors authorized

Hawaiian
March 17 it

Price —To
loans

and

The First
and

for

stock

new

construction

Boston

program.

Underwriters—

Corp., New York; and Courts

Robinson-Humphrey Co., Inc., both

Offering—Expected to be

made in

Atlanta, Ga.

7 Indiana Gas & Water Co.;

are

reported company may issue and sell in
tho Summer of this year some additional
first mortgage
bonds and preferred stock (about
$25,000,000). Proceeds
was

offered

—

used

for

Delaware

Power

purchase

common

stock.

Lynch, Pierce, Fenner &
Smith (jointly); Lehman
Brothers; Eastman Dillon, Union Securities & Co. and
Stone & Webster Securities Corp. (jointly): Glore, For-

Pro¬

gan

1987

Light Co. (6/17)
announced company plans to issue and sell

repay bank loans and for construction
Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; White, Weld & Co. and Shields & Co. (jointly);

Dillon, Union Securities & Co.; The First Bos¬
Corp. and Blyth & Co. Inc. (jointly); Merrill Lynch,
Pierce, Fenner & Smith and Kidder, Peabody & Col
up

Dixon

Industries, Inc.
reported company plans to do some financing, the type of securities to be announced later.
Proceeds—For expansion. Underwriter—Harriman
Ripley & Co. Inc., New York
was

$10,000,000 of first mortgage bonds. Proceeds—To repay
bank loans and lor

11:30

new

construction.

be determined by competitive

Chemical

March 10 it

Light Co.

announced company

Jan. 21 it

ton

received

was

Kentucky Utilities Co.
:
was reported company plans to issue and sell

Eastman

14 it

sell

Proceeds—To refund $15,000,000 of 5% bonds

Power &

plans to issue and
$10,000,000; oi first mortgage bonds due 1988. Pro¬
ceeds—For construction program.
Underwriter—To be.
determined by competitive bidding.
Probable bidders;
Halsey, Stuart & Co. Inc.; The First Boston Corp.; Glore,
Forgan & Go.;-Harriman Ripley & Co. Inc.; White, Weld
& Co.; Blyth & Co.; Inc.; Equitable Securities Corp.
Feb.

and to

(jointly).
Bids—Expected
a.m. (EDT) on June 17.

& Co., and Goldman Sachs & Co. (jointly).

Kansas

April 23 it was
$25,000,000 of first mortgage and collateral trust bonds
due 1988.

Evans, Chairman, announced that com¬
plans to :sell some bonds originally scheduled for
mid-year, but which sale may now be deferred until
late 1958 or early 1959., Proceeds—About $8,000,000 for
construction program.
Underwriter—To be determined
by
competitive bidding.
Probable bidders: Halsey,
Stuart & Co. Inc.;. Kidder,. Peabody, & Co., and Merrill

Brothers, New York.

May
bank loans and.

$3,000,000 of first mortgage bonds.

pany

equipment.

new

Jnc.7 ^07/i

that the company plans to

Kansas Gas & Electric Co.

company plans $11,000,financing either through the sale of convert¬

new

announced

March 31, G. W.

★ Continental Air Lines, Inc.
May 12 it was reported that the
subordinated debentures

was

...

stockholders, was underwritten in October, 1957, by Mor¬
gan Stanley & Co.

000 of

and

be placed privately. Proceeds—To repay
for new construction.
•;
7.-/

July.

Boston Edison Co.

Jan. 27 it

debentures,

reported company plans to offer 500,000.

was

—

Inc.; Morgan Stanley & Co.; White, Weld & Co. and
& Co.
(jointly); The First Boston Corp. and
Harriman Ripley & Co. Inc. (jointly).
An offering of
convertible

•>-

Telephone Co.

ceeds
About $5,000,000, to be used for additions and
improvements to property. Underwriter—None. Offer¬
ing—Expected in June.

Shields

of 4%%

additional shares of common stock to stockholders. Pro¬

program.

the

offering of 121 (par $10) to stockholders on
share for each eight shares held
be named later. Proceeds
—To repay bank
common

outstanding. Private sale
($3,000,000) .of preferred is planned.

stock presently

30,000 shares

that

$35,156,700

12, George H. Buck, President* said that com-,
pany plans to sell some $7,000,000 in new securities by
the end of. this year-in the form of first mortgage bonds-

sell

due

•

one

Hackensack Water CoMarch

Underwriter—Lehman

—

317 shares of

May inclyde: Blyth & £o., Inc.; Carl M. Loeb, Rhoades
Co.; Bhh)phill,7Noyes & Co.; Smith, Barney & Co.;/
and Merrill Lynch, Pierce, Fenner & Smith.

issue

facilities

March 25

was

the basis of

Atlantic.

& Pacific Tea Co. / •
/;>//
..v/y
Feb. 19 it. was reported a secondary offering of common
voting stock; is Expected in near future. Underwriters—
Great

plans to issue and
$45,000,000 of sinking fund debentures. Underwrit¬
ers—To be determined by competitive
bidding. Prob¬
able bidders: Halsey, Stuart &
Co.; White, Weld & Co.
and Paine, Webber, Jackson & Curtis
(jointly); Morgan
Stanley & Co. and First Boston Corp. (jointly). Offer¬
ing—Expected in second quarter of 1958.

service

•.

•/"./;/' /"/

preferred stock. ' Recent bond financing was mader
privately. In event of competitive bidding for bonds or
debentures, bidders may include:/Halsey, Stuart & Co.,

sell

■/;;,/7771

and

—

announced

^''7/

March 20 it was. announced by Lewis A. Lapham, Presi- ;
dent, that the' company plans to issue approximately
$21,000,000 of government. insured bonds secured by a
first preferred ship mortgage on the new "Santa Rosa"
and /"Santa ;'Paula."v Underwriters —/ Merrill Lynch,

Registration—Expected May

inc.

(6/17)

1978. Underwriter —<To be determined
by competitive t
bidding. Probable bidders: Halsey, Stuart & Co/ Inc.;
Kidder, Peabody & Co., Inc. and White, Weld & Co.
(jointly). Bids—Tentatively expected to be. received on <

ceeds

Investment Co.

"7:7

Pierce, Fenner and Smith; Paine, Webber, Jackson
Curtis; Smith,'Barney Co.; White, Weld & Co.; and F.
Eberstadt '& Co.;.all of New ^rky-^'Z'/7';"/'
7
7,7

was

issue and sell

ible

reported company plans to issue and sell
some additional debentures
(amount not yet determined).
Underwriters
Salomon Bros. & Hutzler and
Lehman
Brothers, both of New York. Offering—Expected befor«
July 1.

/■/■/':.

/;■•./■:;• /"'//•/.;

Grace' Line

Co.

including

Proceeds—For expansion

7'7.

•/■'■'-.■K-

•

bank

Associates

"//

Service

■

$60,000,000 of senior securities may be involved.
Underwriter—For any bonds, to be determined by com¬
petitive bidding.
Probable bidders: Halsey, Stuart &

Jan. 23 it

Gas

Halsey, Stuart & Co. Inc.; The First Boston Corp.;.;.:/
March s-24 it iWns xepor,ted:':that company/ plans to issue/
Kidder, Peabody & Co.; Eastman Dillon, Union Securi-7 /
ties & Co.; Merrill Lynch, Pierce, Fenner & Smith and * $11,000,000 of first mortgage hoiids later this year. No de-.
cision .as yet has/been -made as-to .the procedure the com- •
Stone & Webster & Co. (jointly). Bids—Expected to be 7
pany, will/ follow, ■;£ Proceeds—For repayment of shorts;
received up to 11 a.m. (EDT) on June 24 at' 300 Park
term
notes and-. loans//and for
construction program.
Ave., New York, N. Y.
Underwrite^ -— If; determined by competitive bidding,,
Central Louisiana Electric Co., Inc.
\
probable bidders^, may^
Co. Inc.;
March 28 it was announced that the company's financing
Merrill Lynch/; •Fierce*- ,Fenner
Smith, and 7 White,program for the year 1958 anticipates the sale' of both
Weld & Co." (jointly) ;-.Blyth & Co., Inc.; The First Boston/
debt and equity securities (probably preferred stock)
Corp.7 Lehman.-r*,'? ;S,
aggregating approximately $5,000,000. Both issue's may//,
General Acceptance
be placed privately.
V
Corp.'}'*^.(77^77*; >
April 22 it was reported thht the/ stockholders will vote'
Citizens & Southern National Bank of
May 21 on approving the creation of 1,000,000 shares of
Savannah, Ga. : / / ■■ '/ V';,//./:T //:/:"/'y ■/,//;
-//;:/y/v/'
preferred stock/(np par)£:<■>$ which 80,000 shares are toApril 9 stockholders of record April 8, 1958 were given
be 60-ceht s^eribs.vUnderwriter—Paine/-.'Webber, Jackson
the right to subscribe for 100,000 additional shares of r'

ment

ing capital and inventories.

(7/1)

Corp.

reported corporation plans .to issue

July 1. ./

Dan E. Karn, President, announced that
$100,600,000 has been budgeted for expansion and improve¬

Co.

Merrill

was

Dillon, Union Securities & Co., and Harriman f
Ripley & Co, Inc. (jointly); The First Boston Corp. Bids
—Expected to1 be received up to 11:30 a.m. (EDT) on^

(6/24)

announced that the company plans sale of
$12,000,000 first mortgage bonds due 1988. Underwriter—
was

was announced that the
company plans addi¬
tional financing this year, in the form of common
stock,
preferred stock, or a combination of the two,

Inc. and

450,000 additional shares of

about

Feb. 21

March 21 it

loans.

andi
reported company may issue and sell in 7'
sell $25,000,000 of first mortgage bonds due 1988. Under-,
common stock.
writer—To be determined by competitive bidding. Prob¬
Underwriter—To be determined by competitive
bidding
able bidders: Halsey, Stuart & Co. Inc.; Kidder, Peabody 1
Probable bidders: White Weld & Co.; Kidder, Peabody
& Co. and Merrill Lynch, Pierce, Fenner & Smith (joint¬
& Co.; Merrill Lynch, Pierce, Fenner &
Smith; Carl M
ly); Lehman Brofhers and Blyth &>Co., Inc. (jointly);Loeb, Rhoades & Co., and Bear Stearns & Co. (jointly)
Eastman
1958

Consumers Power Co.

Prospective Offerings

Power

Florida

Jan.

was

pre¬

ferred stock (par $100) being offered for subscription
by preferred stockholders of record May 5, 1958, and by
company employees; rights to expire on May 27. Price
•—$100 per share. Proceeds—To repay bank loans and
for construction program. Underwriters—Smith, Barney
& Co., New York; and Robert W. Baird & Co., Mil¬
waukee, Wis.

—May be The First Boston Corp.; Kidder, Peabody &
Co.; Merrill Lynch, Pierce, Fenner & Smith: and White,1
Weld & Co., all of New York.

Co.

March 10 it

June 17.

cumulative

•

—Electronics.

March 20

Thursday, May 15, 1958

Equitable Gas Co.
<i
:
' j~,
April 7 it was reported that the company expects later
in the year to issue and sell additional securities, prob¬
ably preferred stock, to secure approximately $5,000,000
of additional funds. Proceeds—Together with $7,000,000 from private sale of: 4J/2% bonds, to repay short-term *
bank loans and for construction program. Underwriters *

program.

by company,
Halsey, Stuart & Co.
Inc.; The First Boston Corp.; White, Weld & Co.; Leh¬
man Brothers and Harriman Ripley & Co. Inc.
(jointly).
For preferred stock, The First Boston Corp., New York.

To be determined by competitive bidding.

Aug. 30 (letter of notification) 300,000 shares of commoi
stock. Price—At par ($1 per share). Proceeds—For de¬

Western Electric Co.,

bank

repay

Underwriter—For bonds to be determined

with prospective bidders including

•

•,

Underwriter—To

bidding. Probable bidders*'
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; Lee Higginson
Corp.; Equitable Securities Corp.; Eastman Dillon,
Union Securities & Co. and Merrill Lynch, Pierce, Fenner.
:& Smith (jointly); Kidder, Peabody & Co. and White,
Weld & Co; (jointly) ; Kuhn, Loeb & Co. Offering—Ex-;
pected in September or October.
■
-r-

Volume

5742

Number

187

The Commercial and

Financial Chronicle

Kentucky Utilities Co.
JJan.

also

(2211)' 43

Niagara Mohawk Power Corp.
that

reported

offer

(6/11)

the year

Proceeds
Together with bank loans, to be
$16,000,000 construction program. Bonds may.
be placed privately through
Kidder, Peabody & Co.
used

May 8, Earle J. Machold, President, announced company
approximately 165,000 additional shares of its common
plans to issue and sell $50,000,000 of 30-year general
stock to its common stockholders on a l-for-15 basis. •+ mortgage .bonds. 5Proceeds
'For current construction
"-*• ^ogram// Underwriter—To;/.be determined
Underwriters—Blyth & Co., Inc. and J. J. B. Hilliard
by competi¬
Son.
tive bidding. Probable bidders:
Halsey, Stuart & Co.
Inc.; Morgan Stanley & Co.; The First Boston Corp. Bids
Master Fund* Inc., Fairfield, Calif. :
; ;>
>
—Expected to be opened on June 11.
was

may.

company

;

Southern Colorado

April 21 it

•

......

this

announced

was

stock

newly organized invest¬
Northern

company plans to oiler to bona fide residents of
California 10,000 shares of capital stock (par $1).'. Price
—$14) per share, less an underwriting discount of 8^%
ment

•'•

V-V.-A;.,/

Proceeds—For investment.

Midland: Enterprises,

April 14 it

r.'-v «

Inci

-A-

March

Decc 31, -1958 $3,200,000

of first preferred

bank loans and i'or working capital.

repay

March

was

this

that

announced

subsidiary

March 24 it

was

Northern States

April 28 it

Utilities Co.

;■■.>

Power Co.

Montana

was

of 5% bonds and for construction program.
—To be determined by competitive

reported the company plans to issue and

(7/8)

reported that the company may be con¬
sidering the issue and sale of $30,000,000 of first mort¬
gage bonds due 1988.
Proceeds—To refund $18,000,000

Peabody & Co., Inc., (jointly); and Blair & Co., Inc.
.

(Minn.)

(9/4)

.■

Halsey,

...

: mined
by competitive bidding.
Probable
bidders:
Halsey, Stuart
Co. /Inc.; Lehman /S —Halsey,
Stuart & Co. Inc.; Equitable Securities
Brothers: Merrill Lynch, Pierce, Fenner? &vSmith, arid^Gorp.; The First Boston Cor*,.; Kuhn, Loeb & Co., Merrill
Stone & Webster Securities Corp. (jointly);-Whitei Weld^ Lyhch, Pierce,- Fenner
Smith and White, Weld &
& Co.; Eastman Dillon, Union Securities & Co.; Kidder
Co. (jointly); Harriman Ripley & Co. Inc. and Eastman
Dillon, Union Securities & Co. (jointly). Bids—Tenta¬
Peabody & Co., Smith, Barney & Co. and Blyth & Co.,
tively expected to be received on June. 16.
Inc. (jointly)/. Bids—Expected to be received on Sept. 4.

Underwrriter—To be determined by; competitive bidding./

•

bidders:

;.j,-

..i

Moore-McCormack
-

S. .t

Pacific

Lines, Inc.

Gas

Electric Co.

Pacific Gas & Electric Co.
20 "it

Jr'.X Mountain Fuel Supply Co. //v
March 27 it
other

reported

was

debenture issue

things,, to

offer

expects

prior to July 1, 1958. Proceeds—Among
$11,000,000 of bank loans. Under¬
Corp., New York.

repay

'*
..*«

•

announced

was

by this corporation

New

England Telephone & Telegraph Co.

(6/16)

;

Price—At:spsr (-$100 per' share)-.- Pro - ^
advances from parent and for corporate -

New.England Telephone & Telegraph Co.

sell

(8/26);

announced company plans to issue

and

S40,000,000. of debentures.; Proceedsh/^To riedeem

a r

l\ke amount of 414^ bonds due, 1961^:,Uiiderwriter—To

Co.

(6/24)

was reported that the company is planning
$20,000,000 of bonds due 1988. Proceeds—For new

construction./ Underwriter—To be

determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; Lehman Brothers; Bear, Stearns & Co., and Salo¬
mon
Brothers
&
Hutzler
(jointly); Eastman Dillon,
Union Securities & Co. *and Kidder, Peabody &
Co.

(jointly). Bids—Expected
(PDT) on June 24.

;

Pacific

to be received up to 9

a.m.

Telephone & Telegraph Co.

outlay program. Proceeds—For construction program

York

March 7 it

State

was

Electric

and

Gas

ders—

announced that

approxirhately $7,500,000
financing will be required for construc¬
tion expenditures for the balance of this year. The man¬
agement intends to negotiate a new line of credit with a
group of banks and expects to sell equity securities later
this year or in early 1959, depending upon "prevailing

from additional

market conditions. Underwriter—For any common stock:
The First Boston Corp., New York.
Aw
'"f%

New

York Telephone Co.

(7/9)

••

was announced company plans to issue and sell
$60,000,000 of refunding mortgage bonds;-together with
1,200,000 shares of common stock, par $100 (the latter

American

with

the

Telephone

the

SEC.

borrowings.

Proceeds —To

Co.)

retire

about

Co.

This
on

May

short-term

determined

July 9.

Bids—Expected

1959

($137,000,000 in 1958).

market

by competitive bidding. Probable bid¬

announced that the company plans to

$6,500,000 in bonds or preferred stock "sometime

this summer/'

authorizing

The stockholders

May 21 will vote on

increase in bonded indebtedness of $6,-

500,000, and; an increase in preferred stock from 25,000

short-term

shares.

bank

loans

Underwriter—For bonds

Proceeds
and
to

for

Smith,

Barney &

For repayment of

construction

be determined

tive bidding. Probable bidders:

& Co. Inc.

—

program.

by competi¬

Halsey, Stuart & Co. Inc.;

Co., Glore, Forgan & Co. and

Blair

(jointly); White, Weld & Co.; Equitable Secu¬

bank

financing

was

done privately.

com¬

re¬

Inc.* Arcadia* Calif.

preferred stock, to be followed

later in 1958 by the sale of about $5,000,000 of common
stock. Proceeds—For working capital and other corpo¬
rate purposes.

about

announced

company plans to market
stock in the latter part of
in the first quarter of 1959. Proceeds—For
was

$30,000,000 of

this year or

common

construction program.

United Gas Corp.

•May 5 it
sale of

(6/25)

that this corporation plans the
$40,000,000 of sinking fund debentures due 1978.
was

reported

Corp., Harriman Ripley & Co. Inc., and Gold¬
(jointly); White, Weld & Co., Morgan
Stanley & Co. and Equitable Securities Corp. (jointly).
Bids
Expected to be received up to noon (EDT) on
June 25 at Room 2033, Two Rector St., New York 6, N. Y.
Sachs & Co.

—

South Carolina Electric & Gas Co.

April 7 it was announced by the company that it plans
to

sell

was announced company plans to issue and
$7,000,000 of new securities, which may in¬
preferred stock. Proceeds—For construction
program. Underwriters—Johnston, Lemon & Co., Alex.
Brown & Sons, Auehincloss, Parker & Redpath and Folger, Nolan Inc. Offering—May be early in Summer.

sell

about

clude

some

Wisconsin
March 17 it

Power

Light Co.

announced that company

plans to issue
$10,000,000 of first mortgage bonds. Proceeds—
Un¬
derwriter
To be determined by competitive bidding,.
Probable bidders: Halsey, Stuart &
Co. Inc.; Smith*
was

some

Barney & Co. and Robert W. Baird & Co., Inc. (jointly);
Equitable Securities Corp. and Eastman Dillon, Union
Securities & Co.

(jointly); White, Weld & Co., Kidder*

Peabody & Co. and Salomon Bros. & Hutzler (jointly);
The First Boston Corp.
Offering—Not expected until
late in 1958 or early in 1959.

Light & Power Co.

was

rities Corp. Last preferred

Underwriter—

Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.

■St. Joseph

April 15 it

Probable bidders: Halsey, Stuart & Co.

Morgan Stanley &

ceived

Telegraph

bonds^registered

Underwriter—To

petitive bidding.

Inc.;

$70,000,000

Tuttle Engineering*

Feb. 10, Leo L. Strecker, President, announced corpora¬
tion plans issue and sale in near future of $1,000,000

—

reported company plans $300,600,000 capi¬

was

shares to 50,000

J /

May 1 it

addition

Jan. 8 it

To be determined

/ /

Co. /': '

was announced by R. G. Follis, Chairman of
board, that it is planned to issue $150,000,000 of
long-term debentures.
Proceeds—To refinance a bank
obligation of $50,000,000 due this year to provide addi¬
tional capital for the company's overall program. Under^
writers—Blyth & Co., Inc., and Dean Witter & Co., both
of San Francisco, Calif., and New York, N. Y. Offering
—Expected in June.
' ■"4

the

and sell

1958 and

New

Co. of California

To retire bank loans and for construction program.

Standard Oil

March 24 it

tal

•

Underwriters—Snow, Sweeney & Co., Inc.*
York, and A. C. Allyn & Co., Inc., Chicago, 111.
Offering—Expected in June.
•

New

Washington Gas Light Co.
Pacific Power & Light

Aug. 26.

-lr<.•;

ferred stock.

New York.

b^ competitive bidding. .Brobahle bidders:
Halsey, Stuart & Co. Inc.;.The First Boston Corp.; Mor¬
gan Stanley & Co.>: Bids ^.Expected to. be received on
iV

Co.

Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; The First

ably to stockholders). Proceeds—For new facilities and
equipment./Underwriter—Blyth & Co., Inc., San Fran¬

be determined

Gas

was

Boston

to sell

Underwriter-L-None..,+r[. p - -

was

plans sale of an
preferred stock in

April 14 it

standing ;^h^res;;

Union

reported that the company plans regis¬
tration late in May of 30,000 shares ($3,000,000) of pre¬

man

7$5,245 additional shares of common stock on,the basis
of one-hewV§hare for eqch fiye shares.;held>;-American'
Telephone.-Telegraph. Go. owns abouh70:^M/.the:out-

April 11 it

and

Miller, Chairman of the Board, an¬
that it is likely the corporation will sell some
stock within the next several months (prob¬

conunon

cisco and

11 it was announced company plans to offer to
its stockholders about June 16 the-right to subscribe for

Southern

April 28 it

nounced

April

\r./purposes.

Stanley & Co.; Eastman Dillon, Union Securities & Co.,
and Salomon Bros. & Hutzler (jointly).

May 8 Robert W.

V,.■ V".;'

Redpath, Washington,;;D.--;.C.

ceeds—To repay

company

bonds

^ Pacific Lighting Corp.

that it

plans to issue and sell .3 20,000 shares common stock (par
$1). Price —. $5 per. share. Underwriter -r-, Auehincloss,
Parker

../""V--''

Naxon Telesign Corp; :

March 19 It

-vr:I

reported

amount

plans to issue

Stuart & Co. Inc.; Kidder Peabody & Co.,
Inc.; The First
Boston Corp. and White, Weld & Co. (jointly); Morgan

March 28 it

the latter part of this year or early 1959. Underwriter
—(1) For bonds to be determined by competitive bid¬
ding.
Probable bidders—The First Boston Corp. and
Halsey,Stuart & Co, Inc. (jointly); Blyth & Co., Inc.; (2)
For preferred stock: Blyth & Co., Inc.

First Bogton

writer—The

undetermined

'.l

company

was

company

Union Electric Co.* St. Louis* Mo.

Offering—Ex¬
,

March

reported that the

was

$20,000,000 of bonds. Underwriter—To be deter¬
by competitive bidding. Probable bidders: Halsey,

convertible debentures

March 24?hL wris announced- company plans fq^issue- and / March 20 the company announced it plans a common
stock offering about the middle of this year, first to
;sell $24,900,000 of government insured bonds sepured by
present stockholders and then to public. Underwriter—
a first preferred ship mortgage on the liners S. S. Brazil
■
Blyth & Co., Inc., New York.
and S. S. Argentina. Underwriters—Kuhn, Loeb & Co.
and Lehman Brothers, both of New York.
pected this Summer.

about

May 6 it

May 12 it was reported that-the, companyplans-tovissue-?:,r"'^
oma Gas & Electric Co. (6/16)
and sell $20,000,000 of first mortgage bond? due 1988. / Feb. 3 it was reported company plans to issue and sell
Proceeds— For exploration and construction piK)graih; ^5$lp»000j0Q() of bonds this year. Underwriter—-To be deterProbable

determined by competitive
Halsey, Stuart & Co. Inc.;
& Co., Inc., and Kidder,

Underwriter

bidding. Probable
Stuart & Co. Inc.; The First Boston
Corp. and Blyth & Co., Inc. (jointly); Merrill Lynch,
Pierce, Fenner & Smith, Kidder, Peabody & Co. and
White, Weld & Co. (jointly); Lehman Brothers and
Riter & Co. (jointly); Equitable Securities Corp. and
Eastman Dillon, Union Securities & Co.
(jointly). Bids
—Expected to be received up to 11 a.m. (EDT) on July 8.

bidders:

Southern Railway Co.
March 20 it
;■

Power Co.

bidders:

Peabody & Co. (jointly).

;•

—

Probable

First Boston Corp.;,Blyth

mined

Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.;;.
Lynch, Pierce, Fenner & Smith and Kidder,/

Merrill

Underwriter

The

securities," the/-nature of which will be
conditions at time financing is under-

bidders:

additional

Co.

financing by the sale of first mortgage bonds and

bidding.

announced

was

taken.

undetermined amount of first mortgage bonds in
the latter part of this year or in early 1959. Underwriter /
—To be determined by competitive bidding.
Probable *,

sell

12 it

determined

Power

Montana-Dakota

Northern Indiana Public Service Co.

of *

Commission for permission -to. issue: first
-mortgage bonds, unsecured .notes, and comrriop stock. .
Proceeds—To build pipe line system to cost about $111,000,009.
Underwriters — Stone: & Webster-^Securities ;
.Corp. and-White Weld & Co., both of New York.*
•

nent

company plans to spend an
estimated $76,500,000 for construction in the years 19581959. Of this about
$55,000,000 will be raised from sale

.Tennessee Gas Transmission Co. has applied to the Fed¬
eral

March

•

Gas

debentures (probably between $20,000,000 to $25,000,000)^
Proceeds—For new construction costing about $105,000^000.

Gas Transmission Co.

Midwestern

he determined by competitive bidding. Probable bidders: Halsey> Stuart & Co. Inc.; The First Boston Corp.;

mortal

Proceeds

bonds.. May be placed privately.

gage

Natural

April 4 it Awas announced by the company that it con¬
templates interim financing by bank loans and perma-'

Glore, Forgan & Co.; Blyth & Co., Inc.

28,1 company announced it plans to. issue'on. or:«

before
;

Southern

reported that the company is planning
to issue and <;ell
$2G,OOO;0OOi 'to $25,000,000 of mortgage
bonds late this summer br early Fall. Underwriter—To

Paine, Webber, Jackson & Curtis.

Illinois Gas Go.;

was

additional 100,000 shares of preferred
Underwriters—Stone & Webster Secu-!

(par $50).

rities Corp. and

Power Co.

reported stockholders will vote May 0

was

creating

(on

Jan,

—

for

additional bonds during the latter part

Wisconsin Public Service

March 4 it

was

Corp.

announced company plans to sell about

$12,500,000 of new securities in the last half of the cur¬
rent year.
The type of securities has not yet been
decided on.
Underwriter—To be determined by com¬
petitive bidding. Probable bidders: (1) For any bonds—
Halsey, Stuart & Co. Inc.; White Weld & Co.; The First
Boston Corp.; Kidder, Peabody & Co.; Merrill Lynch*

Pierce, Fenner & Smith; Eastman Dillon, Union Secu¬
& Co. and Salomon Bros. & Hutzler (jointly);

rities

Securities Corp,
stock—Merrill Lynch,,
Pierce, Fenner & Smith; Salomon Bros. & Hutzler and
Eastman Dillon, Union Securities & Co., (jointly); Leh¬
man Brothers; Kuhn, Loeb & Co. and A. C. Allyn & Co,
Inc. (jointly); The First Boston Corp.; White, Weld A
Kuhn,

Loeb

(jointly).

Co.,

and

American

(2) For any preferred

Co.; Kidder, Peabody & Co.

(2212)

The- Commercial and Financial Chronicle

look for

Broad St. Fund

Assets
Net

assets

Street

Broad

30,

Francis

vestment

of this

fund,

its

set

provide

sion,

31,

$21.41

Net

new

invested

money

Street

Investing

month of April totaled

fund'?

portfolio

Investment

Department of National Securities &
The corporation sponsors and manages the
of open-end mutual funds with com¬
excess of $300,000,000 and over
150,000 share-

Corporation.

National

Securities

bined

•

the

asset?

Scries

owners.

Contraction in production schedules of steel mills since the
first of the year and a rate of finished steel
shipments several
points above the production rate has, in Munro's opinion, sub¬
stantially reduced the excess tonnage which steel makers involun¬
tarily accumulated in inventory stockpiles over the 1957 year-end.

$928,474.

Market appreciation of the diver¬
sified

and

Research

at April 30—up from $20.82 at the
end of the first quarter.

Broad

one

even

nomics
was

grounds for believing that the steel industry may
of the first indications of an end to the current reces¬

are

though changes in trends within the industry normally
coincide with or follow changes in general business
activity, ac¬
cording to John A. Munro, Vice-President in charge of the Eco¬

1958

Per share asset value

Inventory Excess Eliminated by Third Quarter

There

29th

March

securities

accounted for the balance of the

By the third quarter of

rise in assets.

1958, Munro believes the unwanted

inventory in the hands of the steel mills will be a matter of his¬
tory and that the weekly production rate will be a closer
gauge
of steel
consumption than it has been for the past few months.
He bases his

opinion

the fact that shipments of steel prod¬
ucts, which averaged about 72% of ingot production in the
years
1953 through
1956, have since the first of 1958 been running about
2 to 5
percentage points above the average of the four-year period.
In 1957, excess inventory was
accumulated at the mills when ship¬
ments dropped to
only 70.9% ot production on an annual basis.

A MUTUAL

INVESTMENT
FUND

While there

official

data

part of steel

.0^

them

users

hold

mill

available

tonnage of

metal, the desperate drive

reduce

their

shipments

the

inventories

own

absolute

the

would

minimum.

lead

Conse¬

quently, in Munro's opinion, their need for shipments from the roll¬
ing mills at a rate well in excess of the "normal"
shipment-produc¬
tion ratio indicates that steel
.consumption is running considerably

Natmat,
\nconu, Selieit

above the level of steel production.

New

Na¬

net

31.

stock
positions
by the purchase

common

March

assets

Dominion

Stores:

FREE INFORMATION

FOLDER AND PROSPECTUS TO

YOUR INVESTMENT DEALER OR

NATIONAL SECURITIES &

dividends,

not

RESEARCH CORPORATION

fully earned in

even

though they

"Even steel mills and steel consumers cannot
live
ventories indefinitely," Munro

Established 1930

Broadway, New York 5, N. Y.

steel at

use

a more

were

instances during the first quarter of 1958.

some

their in¬

states, "if they continue to sell and
rapid rate than they produce or buy it."

Record in Quarter Assets Increase

Boston Fund, one of the
largest
mutual funds in the U. S., recordthe highest sales volume for

r|V> SsOlO
" tyJa-Ls

W|,......

JJCF DlUU C

The

Tip- qila«

7" J

Sales of shares of Boston Fund
increased by 81% during the
pe-

riod

while

over-all

We will be glad to send you a free

Purchases by investors of shares

Development Mutual Fund, Inc. This
,

of Boston Fund totaled

fund has

fund

mutual

industry sales declined moderately over a year ago.

prospectus describing Atomic

for

than 75

holdings of

the

$5,453,449
according
to

quarter,

stocks selected from among those
of companies active in the atomic

Henry T. Vance, President

field with the objective of possible

company.

$153

Development Securities Co., Inc. Dept C
1033 THIRTIETH STREET, N. W.

mutual

This

of the

investment
with

compares

purchases of $3,004,884 during the
corresponding period last year.

growth in principal and income.
Atomic

million

WASHINGTON 7, D. C.

tonVpiid'shorof" Mr. Vance
MrSavnn.0f
shaies,
ton

value

each

Electric;

and

Southern Company;
City Electric.

Atlantic

During

the

holdings

quarter

eliminated

were

Beckman

In-

struments, Seaboard & Western
Airlines, Colorado Interstate Gas,
Shell

and

vestment

Gas;

Oil.

Reductions

in in-

holdings were made in
Lead; Republic Natural

National

Halliburton

Oil

Well

Ce-

menting; and Amerada Petroleum.

r and

said

dolBh

chairman of the Board
President Ms
ed

Share Value Gain

-i

nvth

stock

vestment

(loIpi5

first

nerformmw

tributed from gain realized

Not assets

March

"indicates a growing and more
mo,lths
widespread investor acceptance of

earlier

(m 597

of American business

the

dc Vegh

"IT

FUNDAMENTAL

...

mutual fund

common

each, depending
conditions

continuing

pend diu'

investing

stocks. For copy

prospectus-booklet of
Fund, mail
this coupon today.
a

facts about the

the

upon

,nontr^

sales

Andl

coimSred

for'

$955 622

the

last
month last
month

same

year.

tally

vear

reads-

$3 960 507

■

„

-L lu

theBoston

$7 647 407

increase of

■

fflS

period last
Address..

unward

Mutual Fund, Inc. has

share on March 31, 1958 was
$59.71. This compares with $55.65,
per

Dec.

March
for

31, 1957, and $60.21 on
31, 1957, after adjusting

distribution

ized

capital

from

net

real-

gains

amounting to
share that was paid in

$3.80 per

aenhwl
93^

HUGH W. LONG

Elizabeth

FRANCISCO,

Louis

Roselaar

now

with

members

Pacific
27

Coast

was

ton &

4u^
the

New

Stock

Quarter,

according

Mr.

was

Assuming

the

reinvestment

the capital gains distribution paid
in April, 1957, the net asset value
per

share of the fund during the
ended March 31, 1958

fiscal year
decreased
to

the

1.1 %

Industrial

compared

decrease of 5.9%

Jones

York

and

thh,d

About

shareholders

one
now

Commenting

Ran-

every three
the Accu-

uses

the Dow-

Average

during

period.

same

ness

present

that

busi-

and market conditions,
"the

prudent
to

Mr.
opinion

investor

market.

the industrial production of both;United States and
Canada moves in a similar pattern, Canada's industrial growth
Though

has

been

rapid

pace

since 1953, Mr.

Sholly points out.
Canada's, future expansion
will
her

resources

tremendous

the

and

will

cautious,
policy until
the clouds
of
uncertainty show
greater signs of breaking up, but

will not overlook

er?/Vonr mnnaffement
,T.°I

other

manv

institutional investors and many
Imminent individualsin Cana-

diarJ Governmentand business
circles

„affrocol}^^rc^d^hat^^""

adas. futuie loi g-tei
proposes even greater rewards to

Patierd investors than they have

enjoyed -in the postwar
This will be increasingly
apparenf to others as the signs of
recovery multiply,
"That time may not be far away
110\v that the political situation is
scttled.

Prime Minister John Die-

fCnbaker's 'Progressive-Conservafives' have won a clear mandate
to carry

out their program. Their,
goal,.in brief, is to promote a re-

increase

Jones

112.4%

Industrial

the

Dow-

Average.

policies which, have

successful

the

Fund

Vegli Investing

been

the

postwar peThe most important of these,

riod.

from

tie

viewpoint
Canada

of Keystone

and- its

share¬

holders, is the maintenance of

RciHH'lS AsSCt Galil

favorable
.

political-economic

„

cli-

n!ate wh,ah,wlU
thc fo "
eign capital needed ior invcst-

ment.

asscl value 1>er s
e 011
rc
,'
"The Honorable Walter L.
1958 was $13'61 as _comPared to Gordon, Chairman of the Royal
$12'89 on Dec' 31' 1957, 311 aPPre- Commission on Canada's EcoClatl0n 01 5'5%"
nomic Prospects, had this to say
A dividend of 10 cents

per

share on the subject in a recent New
York speech: 'Canada welcomes

was paid from net investment income
during the quarter ended

and

March 31, 1958.

capital from other countries.

We
.

will

continue

New Commonwealth Dirs. bceausP
Sl Waldo Coleman, President,
announced that the _three Commutual

funds,

economy,

which will not be
by severe recession

even

the

others

vestments of

•
-

have

all kinds

continue

been

dealings

our

invested

(and)

to deal fairly and
with everyone who

country -

Commenting

our

in portfolio in-

...

in good faith

t0 seven b>" the election ^ invests in
Lewis V. Coleman and Walter G.
,.r

Olson
oison

welcome

always

who

their savings

aged by North American Securities Company, have increased the
number of their directors from

rate

on the rate at
winch exploration and development will proceed, Mr. Gordon
—^

-.M.^ Coleman has been with
North American Securities Com-

mentioned the importance of de¬

1945 and an officer mand for Canada's natural rea.nd director^of that company sourCeS from the United States
5J'1CC,I9«- He is also a Vice- and other free world countries,
President of Commonwealth In- He added:'the increase in demand
vest"1,e"t, C,° ™ p a n y' Common- wiu not be even, and will tend to
wealth Stock Fund, and Common- fall off in times of recession like
Pany since

wealth Income Fund.

the

the San

Francisco

partner in

law

firm

pull,

present.we

But

expect

over

that

in general and the

ated with that firm since 1949.

E. M. Fuller

Opens

Own Office in New York
Ernest
a

securities

Fuller

the

long
world

United States

Orrick, Dahlquist, Herrington & in particular will need
Sutcliffe since 1954,. and associ- our basic raw materials.

During the year, Keystone of
Canada increased its holdings in
utilities, finance and retail trade
while trimming its interests in oil

and gas and metals and mining.
conducting Largest individual holdings among

business from

offices

Broadway, New York City.

and which warrant continued con- Mr. Fuller was formerly a partner
in the longer-rangeout-! in
Hill, Darlington & Co.

fidence

fair

thousands of Americans

with

and

man-

—

nation's

havc

»e
scrupulously

w/r

years.

underestimate

nat¬

world's

During the entire eight years of sumption of' the upward trend
fund's existence, the net asquickly, and to further its convalue per share of the fund tinuation. ;
i
has increased by 304.1%, assuming
"There is ever^ reason to bethe reinvestment of capital gains
lieve that-they will, continue the
distributions, as compared to an earlier

investment

;

the fluid Canadian

the

Mr. Olson has been

Randolph expressed the

Exchanges, changed
F. Hut-

situations

set

the
the

dolPh- In the 12 months since
March 31> 1957.
chairman
noted, the number of users of the
National Investors Accumulation
Plan for periodic investments increased to 5'783' or bV about one-

^omery St., the basic strengths of the

formerly with E.
Company.

Tbc

"opportunity" cash to permit the
fund to take advantage of special

t? £ive
m•

continue

Calif,

3, N. J.

SAN
T

average
average holding of 426 shares
worth $3,915 at the end of
worth $3,915 at the end of

flexible

(Special to The Financial Chronicle)

stocks, 4% in bonds and preferred
stocks and the balance of 5.6% in

already

1Q<V7

;

mulation Plan.

Now With Sutro Co.

AND COMPANY, INC.

value

shares were
la^tors at the

, R Qno

in-

Ho repoi-ted that purchases of tl e
Fund's shares in that month totaled S2 193 958 as
with

fmirmSnil

Name

l?.,

they exist

Boston Fund's appeal to investors was further evkienred" he

INVESTORS
in

Pons of

at any given time"

common

need for them.

announced that its net asset value

monwealth

,
Tnvnei.n

propor-

vestment

through

than

invested \in

Looking toward the future, Mr.
tne xuiure, ivir.

thv/u.

reflecting nrimar

appreciation

ferred stocks as well as common
stocks are held in varying

rose to $66,220,618 at

from

YOUR share

90.4%

cxPect « win be forthcoming

eentVnor fharA rii«"

the 35

count

investing, whereby i°f balancedpre- portfolio investments,
bonds and
T.T
..
T
cart own

R™

asset value back to about the level
of March 31
1957 taking into ac

ily

You

brought'Dor

noted

nnarW

assets

net

million, Keystone of Canada

Sholley tells Keystone sharchold-

fund?, hit

ended

year

liy <IC Vcgll Mutual

ter-than-markit

the

for

T»

and

With
has

ural

fenmse,
'
s' Ti rSa dc. Vegh Invest'nS Company,
toL monttlsTariter Tho Inc-,ha® announced that its net

cab,

reported

Ltd.,

ada,

center

announced by Francis F. Ran

was

tells

report of Keystone Fund ol Can-

$12

Holdings were increased
by the purchase of shares of Arkaosas Louisiana Gas; Texas Utilities; Middle South Utilities; Tarn-

^ OJf National Investors Corporation
three months ol increased to $9.19 at March 31, it

^ dlc *ll'st-

ATOMIC

asset

year Vi'S

United

S. L. Sholley, President,
shareholders in the annual

states,

Electric

Boston Fund Sales National Investors'

that of the

than

March 31.

Ar»rii

couraged boards of directors of many
major units in the industry
to maintain
regular quarterly

from the
expected to

recovery

recession

faster

foe

Aircraft; American Gas and
Electric; and Oklahoma Gas &

It is this

discrepancy in the "normal" ratio of steel shipments
to production, Munro
thinks, which helps to underscore the recent
strength in the prices of steel stocks. It has also
undoubtedly en¬

Canada's

present

Rohr

WRITE FOR

Interested

Faster Than F. S.

invest¬

over-all

established

were

steel held by consumers of the

120

Investors'

97.7%

Sees Steel

year.
This is almost $4 million
greater than the previous high of

$102,440,150,

change

policy during the first quar¬
ter, Mr. Randolph reported, and
common
stockholdings made up

By ROBERT R. RICH

in¬

mutual

now

tional

was

ment

was
announced by
Randolph, Chairman

President

and

There

Mutual Funds

In¬

vesting Corporation climbed to a
record
high
of
$106,318,431
at

April

Canada to Recover

markets."

Peak

business and the security

Thursday, May 15, 1958

the 52 securities in 11

industry

categories at year-end were Calgary & Edmonton Corp.; Imperial
q i 1;
International
Petroleum,
Royal Dutch Petroleum; Calgary

Volume

Power;

187

Number

Canadian
Corp.; and

Power

5742

The Commercial and Financial Chronicle

International

Utilities Corp.

Approximately 20%
sets

were

of net as11 issues of

invested in

™erTc^-itTes01rrSountrS
other than Canada and the United

States.

Total net asset value at the end
of the fiscal

year was

indication

Combined

Continued from

sales

Eaton

16,000,000 end investment company; Executive Vice-President, Edward B.
Burr, formerly executive director of the National Association of
Lehman Brothers is to be invest- Investment r Companies; ;V ire ement adviser, is being made today Presidents, Allan B. Hunter and
(May 15) by a nationwide uncier- Richard P. Oakley, partners of
writing group vof /640 members Lehman Brothers; Secretary and
managed by Lehman 4 Brothers. Treasurer, John W. Welcker, hereThe offering is the largest initial tofore
Vice-President - Treasure)financing ever undertaken by ail of the Income Fund .of Boston. *
investment company and the uriThe board of directors eomderwriting
group- one- of : the prises Mr. Richardson; Philip Isles,
largest ever: formed to "offer a Paul E. Manheim, Paul M. Mazur
hew issue of equity securities for and Joseph A. Thomas, partners
public subscription.: of Lehman Brothers; Ernest R.
12
The stock is Priced sit $12 50 a Breech, John S. Bugas, William. T.
-to—

$11,635,907 compared with

*** ^ ^rst

shares of capital stock ofThe One
William Street Fund, Inc., new
investment
company, - of-which

„

Each
sale<?
i«m

the

than

iSi ££?
of'

month

had

funds

the-first

the

stock

April

neriwl•
P

•»

find Foieffn?
the

were

highest

Sr anv^month^ in tL histoid of
the fund
the history ol
-

;

heavy

countries.

tures

abaca, palm oil
in
September,
1957, the company paid $150,000
for a 1,000,000 acre oil and gas

sugar cane, cacao,

exploratory concession in Panama.

J-vO
17

Net

proceeds

sale

ol'

-HI® sale 01

Co.;

Fred

Lazarus,

incidentally carried some
26,000,000 stems of bananas into
this

country in; 1957.

Over and

United

25%

States,

Fruit

banana

ctores

Inc

Francis c

Reed

business

England and

•

tinent

first

$119.98

the

con¬

wholly-owned
the stems

some of

for

in exchange
approximately 3,200,000 addicompany,

tional shares of the Fund's stock,

will be

The Fund

closed-end

until termination of the
of'fering when it will become an

company

open-end fund, with its shares offered

continuous

basis

through William Street Sales, Inc.
The

latter

company

was

organ-

ized

by Lehman Brothers for the
primary purpose of acting as sole
of

distributor

Fund's

the

Brothers

Lehman

shares,

investment;

adviser of the Fund.
The

investment

objectives

William Street

One

achieve

Fund

are

growth

reasonable

of
to

capital through selective participation in the long-term progress
of American business and indus-

try, and to provide a fair and reasonable current return on capital
invested.

:
.

The

Fund's

is to pay
quarterly dividends from net mvestment income, and to distribute
to shareholders approximately all
its

net

policy

It will

income.

also dis-

year-end any net
realized long-term capital gains,
such distributions to be made in
tribute

the Fund's

the

period Energy Fund distributions

and dealers' salesmen with

4,000,000

volume

stems.

Its

around

acreage

and

labor force in Guatemala will be

CITY

Miss.

Ragland & Co., Inc., has

Evan

opened" a

Chas. Scranton Office
^

lORRINGTON,

Conn.

Chas.

Presi- W. Scranton & Co. has opened a

„

kind, the growth in shareholders

arid financial management of the
in Boston are
considered of the highest calibre.
Unlike
many
other stocks

which

growing interest, the

stock of Tri-Continental

common

Corporation,

"the

nation's

"largest

diversified closed-end investment
moved to fifth from
* '
sixth position among the
1,200
stocks
available
for
purchase
through the MIP program. TriContinental passed over Sperry
Rand
the popularity ranking,
company,

too much risk United Fruit could

quite possibly recapture rinucb' of
the ground that it has lost since
1951.
T
%
United Fruit

...

,1/ Chemical

Oil of New Jersey.

in Tri-Continental
first quarter,

Senior Partner of Over-The-Counfer Firm

that

method

with good connections and Stock Exchange

business, wishes to manage New York City

office for out of

common

which

was

est number for any of

popular stocks.

and

lifted

Boston

Stock

not

only

Larkin Inv.

Branches^

SHREVEPORT, La.—Larkin In¬
vestment Company has opened a
branch office at 910 East Sevier,
Benton, Ark., under the direction
of Harry P. Gorrell; in Prescott,
Ark., under the management of
John T. McRae, and in Jackson,
Miss., at 181 Tree Haven Drive,
under K. T. Parker.

Branch Office for Fairman
VENTURA, Calif. —Fairman &
Co. has opened a branch office at
1811 East Main Street under the

management of Frank T. Hall.
4

;

■

New Mitchell Branch
BATON

Mitchell

ROUGE, La.
&

Co.

office

branch

National Bank

has

—

Barry

opened

the

Building.

Morfeld, Moss Office
EAST

ST. LOUIS, 111. —Mor¬
feld, Moss & Hartnett have opened
a

branch office at 33 Bluff Drive

now has its own under the direction of Russell C.
searching' in Central Fowler.
America for bauxite, iron ore and
other minerals, even though it
Branch in Binghamton
has adopted the policy of not ex¬
ploiting any discoveries itself, but
BINGHAMTON, N. Y. —Rock¬
instead contemplates making deals well-Gould Co., Inc, has opened a

company

with other companies engaged in

branch office in the Press Build¬

that particular field for the actual

ing under the direction of Law¬

operation.

rence

R. Heath.

Here Is A

to 2,068, or

in the

"FOR SALE"

the 10 most

11.5% more than three

earlier.

months

Unbound Set of

York City 7, N. Y,

experienced

investments ' and

available through
common

are

its

Available in New York City—Write or

Tri-Continental

important factors in

shares and

Quotation Record Volumes 1940 to 1953

full-

management

the continued increase in interest
in

Bank &

diversifi¬

Broad

cation

Commercial & Financial Chronicle

Special Opportunity for You:

Plans

the larg¬

in its

in the MIP popularity

standing

ranking.

Louisiana

This brought the

time,

town Stock Exchange firm.

Company is
York

New

geologists

total number of Plans at March 31

25 Park Place, New

the

Investors opened 214 new

Box M51,

^ to follow behind General Electric,
branch office at 30 Hungerford
Motors
Dow
Chemical
.

Vice-President and direc- Street under the management of
f/f
ofThe Lehman Corp., closed- Walter J. Zeiner.
and Standard

years a

For many years,

levels

found

The

Due to this

are

vated

has

stocks.

New Ragland Office

n,rtnT,Txrnm^*T

dent, Dorsey Richardson, for many

are

fund's

vestment income.
■

the

plans for reinvesting, at the public
offering price, dividends from in¬
Officers of the Fund are:

solely

Ralph E. Samuel &
Co., without selling charges of any
managers,

$650 million Wei-

pects to offer investment plans, branch office here under the manincluding a non-contractual plan
,ement of Charles M. Dunn.
for the systematic continuous puror
chase of shares and a plan

tor

comfortable working capital ratio
of 3.03 to 1.
Both the operating

Exchanges and is legal *for
savings banks in New York, tpust
that the comp any
is making funds in Pennsylvania.
United
'marked progress in combating the Fruit
Company is suitable for jthe
disease which has been affecting
conservative investor, as
welj: as
its
banana crop by using heli¬
trustees, insurance compares,
copters for spraying the bananas banks et al.
with copper sulphate. They have

much cheaper but much more ef¬
been on a voluntary basis
ficient than spraying from
the
without benefit of a selling orground.
*
1 ington
Fund, has just been ganization and indicates the inAlthough
sales
in
1956
de¬
published
it was announced by vesting public's conviction that
a. J. Wilkins, Vice-President of the broad range of energy indus- creased from $343,700,000 to $342,the
Wellington Company, man- tries
and
companies offers an 300,000 in 1957, profits showed a
to
agers and distributors of the Fund, attractive
medium
for
capital modest increase from $3.45
Mr. Wilkins stated that this 24- growth possibilities,
$3.59 per share, chiefly from the
page booklet, one of the first of
Ten percent of the shareholders higher prices obtained for the
its kind,
has proved, its ability of Energy Fund invest in the company's sugar, some property
both to retain a prospect's at ten- high-priced
shares through pe- sales, as well as decreased taxes.
It has been predicted by offi¬
tion
and
to
communicate
facts riodic purchase plans indicating,
about Wellington.
Included is a in addition, that the share price cials of the United Fruit Company
complete
factual
analysis
with is no handicap to acquisition of that, barring a reoccurrence of
dramatic illustrations of various shares of the fund,
past unfavorable conditions, the
assumed investments during Wolearnings for 1958 may well come
to over $4 a share.
lington's entire history.
r
' , ~
^
t
. :
In
addition
to making
Mr.
Wilkins also
peace
emphasized
I 1*1-(.Oil MOV0S
with its own government in the
that The Wellington Story is it•
United
self a complete sales presentation;
States
it
also looks
as
Thr| in TI/IIP T So l
though its political relations with
if followed page by page, the es1
sential points are covered autoInterest in the common stock of the Central American countries
matically.
a
diversified closed-end in vest- are now in for a period of marked
The Wellington Story is avail- ment company by investors using improvement. Lately, it has been
abie to Wellington dealers and the New York Stock Exchange's dawning on the heads of these
their salesmen, who can procure Monthly Investment Plan contin- small
nations that
a
policy of
copies by writing to the Welling- ued in the first quarter of 1958 to peaceful cooperation is good for
ton Company,
grow more rapidly than for any both the government treasuries as
'
other of
the
10
most
popular well as the company's treasury.

the

about

YAZOO

ex-

com-

plete visual and factual presenta-

tion

cash.

Sales, Inc.

distributed

Wellington
Story,"
a
unique booklet providing dealers

capital stock unless the
requests payment in
Street

Since Energy Fund shares

"The

shareholder
William

from realized capital gains totaled
$10.63.

* reseniauon £>OOKiet

funded debt

some 25 points lower than it was
now starting a
at that time, is a much safer buy
five year expansion
at 47.
The extremely generous
program whieh will boost its East
yield of over 6% makes it iripro
Coast banana output' from a low
attractive than some of our soof 400,000 stems in 1955 to a con¬
called "growth" stocks.
Without

■

Investment

preferred stock- Its sole
capitalization consists of 8,756,520
shares. The stock has an equity
of $40.90 per share and a very
no,

United Fruit is

part-

Wellington Issues New

new

$16,000,000

templated

Jr.,

four

^tr^d Tftnn ^hlv^
J1^inti

through

subsidiary with

•

,oko

United Fruit has
and

Upon formal completion of the
offering, about May 29, the Fuftd
will acquire all of the securities
and cash, totaling some $37,000,000 of Aurora Corporation, private

that

fact

were

the company' located

-that, today 1,000 shareholders have greatly increased and the com¬
0M,qO£ stares will provide
drabb& Hsehemto ,more tl>an 29,000,
Bla&. u subSc^ed
One
William Street Fund with
w"®nes' PuvP^jur^^iair -& shbreS with a value at A m il 30 pany^ banana exports might well
rise from 4,500,000 stems to a po¬
starting capital of approximately
Reed» attorneys, and Edwin L.
pYiii
1
Pi 1 :
'
«lf» («)0000
approximately w
partner Simps0n Thacher 1958 of $14190 per share and total tential 8,000,000.
$185,000,000.
& Bartlett, attorneys.
assets of $4,152,119. During the
It may be stated at this point
t-

the

put into service. It ia
now the expectation that capital
spending in 1958 will drop off by
several million dollars.

1,380

owns

which

done in

two years the number of shareChairman, Federated Department '
+r?iIl;; t?1
5* ®°'
buck

the

from

formerly Chairman, Sears, Roe-

also

company

United

Xl«IHIICcip TO

•

Co.';

due

ships

selling at greatly ele-.
compared
to ;Jthe
of bananas coming from its prop¬ price at which they sold in 1951,
IlillCl'jjy i 1111(1 otllCS erties in
it looks as though the
Africa/ This" business is
shares; of
j!
' •
In the 2V2 years from Oct. 19,
United
Fruit
Company, selling
showing a steady growth.
7
:

i
'

prices range from $12.24 a share FordJHotor
Arthur H. Bunkfor purchases In the 2,000-3,999 er,
Chairman, American Metal
shares bracket to $11.68 a share Climax, Inc.; Theodore V. Houser,
-

The

miles of railway and 261 miles of
tramway in the tropics. Its Great
White Fleet consists of 61 ships,

the

tare rrice

year for capital expendi¬
amounting to $31,900,000

;

purchases of 40,000 shares and

and

above the business that it does in

over.

timber

were

for

It is also interested in

I "

j •T\Tr* Un^wll^nw i-A.'

Nineteen fifty-seven was a

mala, Honduras, Ecuador, Costa
Rica, Colombia and several other

higher

month!

four

The Security I Like Best

and

totaled

page

topped
any
previous
JanuaryApril period in the history of the

offering

volatility in the Canadian market, Howard Balanced Fund and Eaton
Keystone's asset value per share
Stock Fund in the four
has advanced to $10.53 since then.
Jan» 1 to April 30, 1958,

16 Million Shs. of One William St. Fund Offered
Public

OcllCS at 110W JlCcIK.

the

T7nf/\n JPr

X^«lOU OC IXOWdiU

$12,081,767
or $9.93 per share for the, 1,216,769
shares owned by the 6,522 shareholders.

(2213)

Phone REctor 2-9570

Edwin L. Beck

c/o Chronicle, 25

Park PL N. Y. 7

The Commercial and Financial Chronicle

* (2214X

Indications of Current

The

.1;

Business Activity
IRON AND STEEL INSTITUTE:
steel operations (per cent capacity)

Indicated

•

week
Latest

AMERICAN

following statistical tabulations

latest week

Week

May 18

851.9

;

month available.

■

month ended
Month

Week

..."

that date,

May 18

oil

condensate output—dally

and

gallons each)

average

§1,400,000

-1,334,000

2,155,000

1,285,000

May

Crude runs to stills—daily average (bbls.)

output (bbls.)
Kerosene output (bbls.)—
Gasoline

fuel oil output
fuel oil output

Distillate
-■

Residual

6,227,035
(17,078,000

6,288,385

—May
——-May

—

24.892,000

VJ 1,698,000

2,090,000

11,037,000

(bbls.)
(bbls.)

24,440,000

25,124,000

—May

6,298,000

6,785,000

202,515,000

207,147,000

214,754,000

——May

18,703,000

18,287,000

16,912,000

74,743,000

74,545,000

57,600,000

54,750,000

freight loaded (number of cars)
May
from connections (no. of cars)—May

3
3

533,004

533,724

516,225

718,986

491,170

494,183

497,118

608,841

New

■■.

Private

-May

147,240,000

171,649,000

233,329,00

256,754,000

182,939,000

May

181,574,000

182,339,000

142,432,000

140,395.000

51,755,000

74,415,000

40,507,000

33,201,000

Federal

$354,588,000

$385,205,000

Pennsylvania

and

anthracite

EDISON

ELECTRIC

Electric

357,000

355,000

318,000

499,000

May

132

136

134

143

6,350,000

*6,720,000

6,200,000

9,509,000

INDUSTRIAL)

—

DUN

11,251,000

279

336

11,-

11,311,000

ife'2wa#:r/'
'•*

V'v *f ,/

•'

•

May

$66.49

$64.56

May

$32.00

$31.50

$44.17

(E.

5.967c

5j067c.^'

5.070c

■

QUOTATIONS):

Electrolytic

copper—
Domestic refinery at_.

May

Export refinery at
Lead

(St.

24.275c

22.200c

21.925c

w'1

r24.450cvsN22.650c

«j;

■

12.000c

;12;<)0£fe V ?

11.800c

ai.800c/

May

10.500c

Zinc

10.000c

10.000c
24.000c

May 13

12.500c

24<ii0Ocr^

93.750c

92.625c }»

^loroMcV

U. S. Government Bonds

95.61

v„
H-'-i

95.90

J'T-

96.98
95.62

99.20

95.62

95.77

87.18

86.51

91.62

91.77

91.05

Average

.May 13

97.62

97.94

97.62

99.20

Aaa

—May 13
—May 13

3.57

3.77

Group.
Group INDEX.

4.01

4.30

4.29

3.90

3.88

3.80

3.81

.'V
•—

4.67

"• ''

3.90

V;'.

400.6

3.85

393.4

Cake
■i

....

3.98

AVERAGE

ROUND-LOT

«=

335,027
279,404

365.246

326,592

404,209

Hull

TRANSACTIONS

FOR

ACCOUNT

110.10

T iio.ot

purchases

Other

sales

Other transactions initiated
Total purchases

-April 10
on

Other

1,331,070

1,273,340

1,168,910

purchases

1,561,150

1,323,440

1,489,460

Other

371,920

408,250

264,870

38,700

44,400

61,700

10,380

385,960

284,800

385,050

April 19

424,660

329,200

446,750

„

;

584,915

452,840

77,730

Total sales

520,319,

561,629

399,000

473,433

699,689

474,890

551,163

2,561,405

2,155,830

2,398,161

464,570

402,640

459,980

-April 19

2,220,929

1,724,890

2,027,393

2,685,499

2,127,530

2.487,373 "

Other

Number

Mar."29"f

1,204,165
$51,875,453

life

1,742,439

STORE

(average

SALES

SECOND

1,022,426

1,201,302

1,153,211

-.v

20,689

973,877

952,445

1,001,644

847,763

$42,521,298

$41,200,471

$44,598,437

$41,380,676

20,782

7,562

267,160

234,750

293,470

267,160

234,750

203,470

REAL

492,670

501,380

423,110

369,720

761,590

748,920

11,871,490
12,677,040

10,032,850
10,794,440

11,104,450
11,853,370

382,770
.

8,664,580

9,047,350

i__

ESTATE

Savings

one-half cent

119.5

May

98.1

97.2

99.4

90.2

112.0

111.5

110.5

104.4

.May

111.7

110.8

108.7

88.6

.May

foods-

.May

125.6

125.8

125.4

119.3

119.6

117.2

figure,

*' 1958,

flIncludes 843,000 barrels of foreigr crude runs.
SBased on new annual capacity of 140,742,570 tons
as »*alnst Jan- 1« 1957 basis of 133,459,150 tons. tNumber of orders not reported since Introduction of

tPrime Western Zinc sold

pound.

148

{

67,700,000

$255,400,000 $236,900,000.
67,-200,000 :■? 86,'500,000

I- 8.800,000

10,900,000

67,100,000

40,300.000

81.500.000

119,300,000

__i_

119.100,000

98,000,000

11,400,000
"

^
___i

r___

128,900,000

190,400,000

122,100.000

$652,500,000

$681,200,000

$595,900,000

$637,584

and

Mutual

FINANCING

Insurance
Banks

loan

—«•

HOME

Feb.

$627,560

$644,050

110,729

104,879
308,348

NON-FARM
LOAN

(;000's

BANK

omitted):

associations

i_'

companies
1
trust companies-!

savings

100,707

304,411

322,407

86,922

banks

Individuals

97,711

95,945

252,673

279,850

271,203

318,355

lending institutions

343,691

324.89T

$1,781,948

$1,749,322

$58,981,356

$58,494,647

SELECTED INCOME ITEMS' OF U. S. CLASS I
RYS. (Interstate Commerce
Commission)—
Month of

Net

January:

railway operating Income

Other

,May

Meats

145

131

LIFE

1
r_

_____

income

delivered basis at centers where freight from East St. Louis exceeds
......

Income

Income
Other
Net

x___

deductions

from

24,859,340

51,983,298

income

108,868,585

78,409,930

20,736,349

78,218,616

48,095,059

4,000,977

taxes=„

Dividend appropriations:
On common stock
of

24,148,748
82,643,395

6.08Z.124

4.592343

4,233,465

16,735,372

(way & structures & equipment).

preferred

55.969,353
114,950,709

4,612.378

available for fixed Charges
after fixed charges

income

56,595,676
income

income'

Federal

J
l

deductions

Depreciation

Ratio

$31,736,336

Miscellaneous

Processed

Revised

430

January:

values

Total income

commodities

Monthly Investment Plan.

124

$258,100,000

BOARD—Month

213,150

805,550

April 19

and

104

115

dividends

AREAS

213,150

.April 19

All commodities
other than farm

106

126

$1,700,652

sales

products
foods

113

Mar.:

payments

INSTITUTE

—

endowments

Total

855,325

Commodity Group—
Farm

436.6'

Total sales

All

8.-731.000

973,134

18,837

.April 19

S. DEPT.

408.0

129

benefits

Policy

,$48,716,705

992,714

sales—

399.2

115
ii

seasonally; adjusted---

insurance—Benefit

Miscellaneous

Short sales

Other

18.457.000
'

8,161,000

Surrender

1.001.859
,

WHOLESALE PRICES, NEW
SERIES
LABOR —
(1947-49=100):

21]
15518.000

17.945.000

FED-

(SH/OES):

round-lot

1.335

Mar.'

unadjusted.

INSURANCE—Month

.April 19

TOTAL ROUND-LOT STOCK
SALES ON THE N.
EXCHANGE AND ROUND-LOT STOCK TRAN
FOR ACCOUNT OF
MEMBERS
Total

1,089

128

dally),

POLICYHOLDERS

2.007.599

$50,187,447

April 19

2,886

631

7,984,000

$51,370,713

1000's omitted)

for spindle in place

Disability payments
Annuity payments

.April 19

3,964

'20;918&00

hours

Unadjusted

265,160

.April 19

sales

COMMERCEVM^^^^;'

Seasonally adjusted

1,772,060

.April 19

Short sales x

(DEPT^OF

Average^lOO—Month.of March:
(average monthly)', unadjusted

Matured

.April 19

553
574

•

VsU^-^l.lOO.v

SYSTEM—1947-49=100—\ionth

598,809
,•

.April 19
.April 19

Bound-lot purchases by dealers-

r...

4,355 7,: -"v ~

spfndle hours

Death

.April 19
.April 19

Customers' other sales
Dollar value

pounds).-—*«.?•<••

800'

123

;;

INDUSTRIAL PRODUCTION—BOARD OF GOV¬
ERNORS
OF
TIIE
FEDERAL
RESERVE

purchases)—t

Round-lot sales by dealers—
Number of Bhares—Total sales-

586

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDLOT DEALERS AND
SPECIALISTS ON N. Y. STOCK
EXCHANGE — SECURITIES EXCHANGE COMMISSION:
Odd-lot sales by dealers (customers'

Dollar value
Odd-lot purchases by dealers (customers'
sales)Number of orders—Customers' total sales
Customers' short sales

•

Sales

78,490

—April 19

—«

128,329.

540

Sales^(average daily),

75,890

—April 19

Short sales ^
Other sales

258,890

138,060

..April 19

Total sales

Total round-lot transactions for account of members—
Total purchases

220.461

425.430

-.April 19

123,833v

102,802

RESERVE DISTRICT. FEDERAL
RESERVE BANK OF NEW YORK—1947-49

!t.

269,270

508,951

—April 19

—

118,546

ERAL

•

...April 19

sales

341.936

95,127 '•

:,V;; 76,280

Al"-""605' '.V'

DEPARTMENT

1,139,520

438,690

—April 19

Short sales

74.372.

963,230

176,290

transactions initiated off the floor-

Total

86,064

99,466

Produced
Shipped

Active

.April 19

; :

''T-L

Grabbots, .etc.^(l,000

76,261,

95,020

v.*

^____Ir1

Active spindle

1,081,760

282,350
1,041,090

1,480,690
320,550

-.April 19
.April 19

sales

73,510

U'r 360,783

bates)—""
it:•_i*^_u

March

156,669.

119,300

79.393 '

Stocks March 31

Total sales

Other

1,537,800
287,810

the floor—

Short sales

125,183 *'

a,(WoTib."balM^

Fiber

192.415

203,150

263,956

'"•'186,389
!•..

Spinning spindles in place on, March
v^20,942s000
Spinning spindles active, on March 29^^21^;
17,682.(

-April 19
.April 19

Total sales

175,336

109.669.000-

224,694,

148",545

285,071,000
106,524.000

94,796,000

197,903

i__

COTTON SPINNING

-April 19

160,691,000
108,729,000

•

110.44

MEM¬

Short sales

•.

31_1_1'-_1______L_"_

March

Slocks

Motes,

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists In stocks in which
registered—
Total

188,914,000

105
*

109.92

113,689,000

J—

(tons)

Produced

493,679

142,267,000
139.383.000

■

•

(running

Stocks

May

136,965,000
120,251,000

(tons)

Produced

272,124

.May

;

(tons)

Shipped

■

381,000

236,328

at end of period—

March

(tons)

801,003'

140.101,000

Produced1 (tons)

224,405

246.385

24.650

399,699

124,819,000

March 3l__

Stocks

408.6'

286,835

81,098
406,501

1,042,009

110,930,000120,379,000

Hulls—

—May
.May

100

(tons)

Shipped

OIL, PAINT AND DRUG REPORTER PRICE INDEX—
1949

31__!

Meal—

and

j..Linters

—May

Percentage of activity.

35,645

752,931

(pounds)

Oil-V

Stocks

•

—

Unfilled orders (tons)

324,723

(pounds)-"_^lll-i._____i^___*__^^.109,427,000
Consumption (pounds)92,916,000-<

3.97-

< '

394.2

3,833.000

$55,833,000

••

3.93

Produced

4.14

3.309,000

$05,295,000
,

;'r"<

Stocks (pounds)

4.52

4.34

•:

'*■}

March.

Oil—

Refined

3.83

4.02

;

(tons)

Shipped

3.72.

3.80

COTTON SEED PRODOF. COMMERCE—Month of

Stocks (pounds) March
Produced
(pounds)"

4.01

3.62

4.62

-May 13

NATIONAL PAPEBBOARD ASSOCIATION:
Orders received (tons)

(tons)

Crude

3.38

4.03
-

4,470.000

10,424.000

AND

Seed—

Stocks

4.03

—

Utilities

Production

Cotton

3.76

—May 13
—May 13

Railroad Group

COMMODITY

3.57

4.62

—

MOODY'S

97.16

2.76

6.000,000
17,816.000'

8,747,000

^ $71,555,000

;X;. < Received at mills jlpns)
''■•'.'■f. Crushed (tons)

2.85

3.99

May 13
May 13
May 13

—

Baa

Public

2.88

4.00

S17.760.000

5,870,000

23,038.000

Produced

—May 13
—May 13

1.336'

$24,331,000

11,921,000

672

205

8,322,000

I.,

121
■

■

1,238

23,531,000

.'ill'

March:

96.54

-May 13

corporate

Industrials

SEED

1UCTS—DEPT.

93.97

98.41

1,495

$23,311,000

l:r

liabilities

COTTON

;tiV

88.54

May 13

99.04

177

"121

v:'

liabilities

-O Total

••

96.38

May 13

Group

number.

number

239

112
662

202

Construction liabilities
1 Commercial servicediabiliti€S'"^?itl^^ltui-—

98.73

May 13

95.92

208

141

•

100.49

MOODY'S BOND YIELD DAILY AVERAGES:
U. 8. Government Bonds

':i

750

Retail

281

i__.

service

81,243.150
463,445,001-

Wholesale liabilities

95.92

102.13

Railroad Group
Public Utilities Group.

BRADSTREET.

""X'....,
1*—1':.!'2 -'

number

89.54

96.23
102.96
99.84

March:

96.07

99.68

$544,688,151

45.210,172
390,490,762

102.96

.—May 13

DUN

k Manufacturers' liabilities

a v

-May 13

—

$435,700,934

53,723,840
510.322,516

number

:.VT<itaU

12.0000

25.000c
vi. 98.625c

.May 13

Industrials

Retail

15.800c

24.000c

«Miiy

MOODY'S BOND PRICES DAILY AVERAGES:

Average corporate

94.500c

May

(East St. Louis) at
Aluminum (primary pig. 99%)
tin (New York) at.

Straits

ifrOOdc:

ld;5Q0"cV

.i.

29.625c

;

May
—May

104,979,391.:

•'

31'.3g5c

Louis)
(delivered)

tZinc

24.475c

viay

—

(New York) at

Lead

24,470,972

96,135,839

City

number

.^^Construction

267;

Finished steel

(per lb.)
(per gross ton)
Scrap steel (per gross ton)

York

FAILURES-

Commercial

May

26,134,773

$564,046,356

States

City ____:

New

Wholesale

INC.

Pig iron

PRICES

23,950 990

21,249,138
154,423,117

Manufacturing number '1
>.

11,315,000

IRON AGE COMPOSITE PRICES:

METAL

United

INC'.—Month

100

May 10-

AND

78,652,140

19,993,116

York

BUSINESS

INSTITUTE:

(COMMERCIAL

BRADSTREET,

110,898,083

87,666,278

33,126,565

Total
New

INDEX—FEDERAL RESERVE

AVERAGE

(in 000 kwh.)

output

rALLURES

May
May

(tons)

SALES

SYSTEM—1847-4!)

100,967,461

il——
___

Pacific

Outside

lignite (tons)

DEPARTMENT STORE

—

'42,706.227-'

69,031,950

121,164.310

48.446,721

■.t

100,757,364

Central

$37,866,038-

76,027,883

41,089,088

_____

COAL OUTPUT (U. S. BUREAU OF MINES):

coal

$12,264,374

•

.96,493,439

173,596,000

and municipal

Bituminous

$15,940,184

Mountain

211,609,000

May

—

$485,610,000
228,856,000

construction

State

$380,569,000

May

construction

Public

'x-i-XJx--

Central

South Central

—May

—

DUN

—

CITIES—Month

Atlantic

East

Vest

construction

INC.—215

-X

Atlantic

South

NEWS-RECORD:
Total U.

_t$l,529,247.000$l. 522,767,000$1.018.511,000";
VALUATION

England

Middle

ENGINEERING

—

2,000,000

171,039,000:

'if.;

PERMIT

of March:
■

CONSTRUCTION

224,156,000

BRADSTREET,

37,571,000

ENGINEERING

110,250.000

exchange

BUILDING

79,119,000

58,050,000

Revenue freight received
CIVIL

100,271.000

139,240,000

cn goods stored
and shipped between
•
foreign countries-2'^223,780,000

ASSOCIATION OF AMERICAN RAILROADS:
Revenue

468,885,000

Total

76,266,000

(bbls.)

15.616.000

458,239,000

■

21,165,000

oil

424,652,000

11.501,000

credits

Based
,

12,264,000

fuel

$.504,933,000

446,690,000

12.377,000

198,332,000

11,506,000'

May
—May

Residual

$261,285,000

432,276,000

7,952,000

(bbls.) at

Distillate fuel oil (bbls.)

$263,335,000

Dollar

2,048,000

pipe lines-May

Ago

of March 31:

—

Domestic warehouse

10,943,000
6,355,000

Year

Month

Montn

BANK

Domestic shipments

26,214,000

2,203,000

;

OUT¬

7,633,000

7,214,000

' v

of that date^

are as

.Late^

FEDERAL RESERVE

—

of quotations,

cases

either for tht>

are

•

ACCEPTANCES

7,529,465

6,250,135

6,984,000

May

—

Stocks at refineries, bulk terminals, in transit, in
Finished and unfinished gasoline (bbls.) at

Kerosene

DOLLAR

OF NEW YORK—As

Imports
Exports

—-May

•

(bbls. of

—.—

•.

■

BANKERS'

84.2

AMERICAN PETROLEUM INSTITUTE:
Crude

Agr

47.6

STANDING

and castings (net tons)

or,

Thursday, May 15, 1.958

shown in first column

Equivalent to—
Bteel Ingots

production and other figures for th*

cover

Dates

Year

Ago

'49.4

73,626,273

4,206,114
43,888,945

49,788.507

48,215.327

47,303,75$
23,867,895

12,388,694

205,237

26,996,208

24,316,285

30.290,140

6,443.547

1,496.302

' 7.800,594

3.55

2.59

stock
to

fixed charges-^..

1.66

Volume

187

Number -3742

(2215)

The Commercial and Financial Chronicle

securities

and

its shelves.; It prom¬

responsibilities

his

Exchange

President,

Governors

own

business.

only four corporate debt is¬

ises

outside

three

and
the

Forms Charles

Gordon, Ltd#

securi¬

HONOLULU, Hawaii — Charles
Coleman,
formerly ties business appointed as repre¬
Gordon, Limited, is engaging in a
million.
;
r:; Chairman: of
the'Exchange for sentatives of the public.
securities business from offices at
-:
Re-elected as Trustees of the
The • largest
is Illinois ; Power 1 four one-year terms and Gov¬
1585 Kapiolani Boulevard, Offi~
Co.'s $25 million of bonds which ernor for 11 years,- was elected Gratuity Fund, from which pay¬
cers are John A. Black, President;
will be up for bids on Tuesday. Governor for a three-year term. ments are made to the families
Joseph Y. Kumasaki.
Mr.
The following day Brooklyn Union His last term as Chairman expired of deceased members of the Ex¬ and
He is a partner in the change, were William D. Scholle, Black was previously with Paine,
Gas Co. will market $22 million in 1947.
of new
obligations and Central specialist firm of Adler, Coleman an individual member, and Webber, Jackson & Curtis; Mr.
John

of them exceeding $25

sues,-none

Hudson

Gas

sell

issue

will

Co.

million
the week,

$18

Earlier

bonds.
.

Electric

lion
of

'6f Colorado, on ^ednesmillion of new
preferred
and that
will
about
round things out.

building since shelves
cleared by Federal Re¬

were

action

serve

weeks

few

;

big

the

(Washington, D. C.); Richard W.

resistance

and,
close

tabs

the

issues out

new

syndicate.

of
v

inclined

been

have

flotations

recent

heTd "sin

of portfolios
inclined
to
lean

these expert handlers

naturally

are

been

York

New

Annual elections

been

have

for

three

Blaine

(New

then

developments. Thus, far, of course,

adopted

occasions,

having

monetary action bale them
out of sizable commitments with¬
out

prospective

Again
urally

are

calendar and

ward

buyers

issues nat¬
familiar with the for¬
be

will

When

helps, to

naturally

immediate
the

that

the market

It shows

about.

home

write

anything

really

not

con¬

siderably less than $100 million in
new debt issues on tap, all of them

via the com¬

slated for marketing

petitive bidding route.
Keen

total of

25-year bonds drew a
separate group

issue down on a

and

rate

pro¬
ceeded to reoffer at a price of
101.5 for a yield of 4.03%. The
bid
of the
runner-up
was
less
a

$1,000 away. Yet
upon reoffering
the bonds were
reported making slow initial

than

$1.40 per

—

partner in the firm of John¬
Wood, Mr. Werle began his
as
a
page boy with the
New
York
Stock Exchange J inv
&

the

Distillers

has been

suggest
at

9914

cated

4.80%, this
fitted readily into

fast

change

two years

issue
many

fund

term

loans

firm

logg,
he

short-

borrowings and will place it
taking care of pro¬

jected expansion of its facilities.

year

period

some

licks in-cutting down the stock of

NEWMAN,

T. E.

Company of Boston,

Dividend Dis¬

bursing Agent.
Frederick D. Strong,

Secretary

Iron

quarterly dividend on the common stock for
quarter enmng June 30, 1958.
The Corpo¬
had declared a 2'/o stock dividend for
the
quarter ended March 31st, and prior to
that
had
regularly paid
50 cents per share
quarterly.
Mr. A. F. Franz. President of The
ration

Colorado Fuel and Iron
the

Bank,

order
losses
"
'
m

by the Corporation during the first
He reported
that operating results
the ocwuvt
liu;
second qucvi VOI
quarter are VAJ/wvvvmi to show
expected VV
"
Improvement over the first quarter.
He ex¬
pressed
confidence
that
dividend
payments
would
be
considered
as
soon
as
conditions
warranted.
The Board of Directors declared

sustained

quarter.

and Treasurer

the

COMMON DIVIDEND No.

2, 195B into
stock at

outstanding: common

regular

stock

payable June

1958 to shareholders of record
the close of business June 2, 1958.
30,

4.08% PREFERRED

DIVIDEND No. 16

regular quarterly dividend of one
dollar and two cents (#1.02) per share
on the 4.08% Cumulative Convertible
Preferred Stock, $100 par value, of this

Company has been
June 5, 1958 to
at

#30.50 through

Holders desiring to take

Transfer books will not be

the

close of

M. W,

URQUHART,

Treasurer,

f
May 7,1958

DIVIDEND
NOTICE

26, 1958.
Wm. M.

Hickey,
President

May 14,1958

MAY 7, 1958

The Board of Directors of the

closed.

Company has declared the fol¬
lowing quarterly dividends, all

payable

June 1, 1958, to

stockholders of record at the
close of business May

15,1958.
$0.35

COMMON STOCK
PREFERRED STOCK

5.50% First Preferred Series.$1.37V£

Utilities

Company

Beaumont, Texas
234th CONSECUTIVE CASH

The Board of Directors

has de-

DIVIDEND m

upon

the stock of Burroughs

payable July 21,
shareholders of record

the close of business June 27,

Series....$1.43%
$1.67^

May 20, 1958.
Class of

Dividend

Stock

Pear Share

PREFERRED:
$4.40 Dividend

1958.

Sheldon F. Hall,
Vice President
and
Detroit.

5.75% Subordinate

twenty-five cents
share has.been declared

Corporation,

1958, to

Series....$1.18%
4.50% Convertible Series... .$1.12Vfc

4.75% Convertible

Convertible

A dividend of

($.25)

.$1.46^4
$1.25

5.85% Series
5.00% Series

6.70% Series

Secretary

Michigan

May 7, 1958

Harold E. Jackson

$1.10

$4.50 Dividend

$1.12 y2

$4.40 Dividend,

Burroughs

Secretary

TEXAS

/tta*u*ru<uu>n>

EASTERN

(Qyxrta&m*

SHREVEPORT^-M.OUISIANA

1949 Series

$L.10

$4.20 Dividend

$1.05

$4.44 Dividend

$1.11

$5.00 Dividend

$1.25

OIL AND GAS: Exploration

$0.45

OIL PRODUCTS: Refining and Transmission

COMMON

Vice President and Treasurer

May 13, 1958.

payable

stockholders

of record May 21, 1958.

business May

DIVIDEIND^P/ NOTICE

conversion price
should deliver their Debentures to The
Hanover Bank, 70 Broad way. New York

J95JT

of 10 cents

share on the COMMON
-STOCK,
payable June
13,
'1958 to stockholders of record

A. D. Dennis,

advantage of the present

than June 2,

1958

10,

dividend from Net

Investment Income

declared, payable

shareholders of record
May 23, 1958.

the close of business

1,1973 V

of June 1,19.53

June

The Board of Directors has
declared

Gulf States

tbe Company's common
price of #28.00

Birmingham, Alabama

the capital stock

TheUNITED Corporation

are

15, IN. Y.. not later

Corporation,

per

and The Hanover

price increases to

quarterly dividend of <52>^ cents
the series A $50 par value pre¬
and 68;1,4 cents per share on the

May 7, 1958

conversion

June 1, 1963.

Seventy-five Cents (75$)

B $50 par value preferred stock. These
dividends are payable June 30th to stockhold¬
ers
of record on May 29th.
D. C. McGREW
Secretary

stock of this Com¬

has been declared

pany

principal amount of Debentures for each
share of stock. Thereafter, such conver¬

of Directors has

second-quarter divi¬

136

quarterly dividend of twenty-five
(25c) per share on the issued and

demands

advised that tbe
are convertible through June

Trustee,

Debentures

this

Corporation stated that

dividend
omission was designed in
vlvoil
cash and *
WllVt
in view of operating
• Av' "

to conserve
Uu
*

Debentures, issued

dated

Board

lue

Convertible Sinking Fund

under Indenture

Company

between the Company

The

declared

per

Notice

of Directors of The Colorado Fuel
Corporation voted today to omit the

Board

and

Southern Natural Gas

AND

Secret my

Iloldera of the al»ove

CORPORATION

dend of

The

JEANNERET,

* Secretary

NOTICE

Debentures Due June

PHELPS DODGE

MFG. CO.

Governor.

Chairman

To tht* Holders

Secretary

per

Secretary.

ALIIS-CHALMERS

announced in January that
not be available for
as

business

series

would

which will permit the investment

banking fraternity to put in

Trust

ferred

partner in
Kel¬

senior

w
~

rec¬

1958.

13,

share has been declared
payable May 15, 1958, to stockholders of
record at the close of business May 8, 1958.
Checks will be mailed by the Old Colony

per

since 1953,

SOUTHERN NATURAL GAS COMPANY

Ne?tt Week's Calendar.
shapes up as

i'-'Z

could be
portfolios.

also

South Bond, Indiana

iV'-**

of Spear, Leeds &

FINANCIAL

indi¬

funds for

Next week

Chairman

Kellogg,

Mr.

the

will permit the issuer

bank

•

1944, Vice-Chairman
later, and Chairman in

new.

successive

sion

Proceeds
to

1958

holders

NOTICE

for

elected Gov¬

was

the

Rome,' N. Y., May 9, 1958

quarterly dividend of Seventy-

(75£)

business

cents

The

Boston, April 25,1958

IUI

succeeds
James Crane Kellogg III, who will
complete •; his
second
one-year
term as Chairman and his eighth

operation.
an

1958,

1958.

of the American Stock Ex¬

ernor

Chemical

yield

12,

since ' -1956.

Vice-Chairman

and

Previously,

Preliminary inquiries, it was in¬
Priced

member of
Exchange

three

Corp.'s $60 milljon issue of new
25-year sinking! fund debentures,
expected to reach market today
via the negotiated route, are re¬
to
have: been
heavily
ported
spoken for in advance.
dicated,

July

Stock

York

New

4?js

payable
the

became a

and

since 1950, a Governor

announced termination
of their syndicate agreement. The
bonds, carried a 4% coupon and
werehpriced at; 102.07. <National Distillers

^ Drewrys Limited U. S. A. Inc.

Johnson & Wood
partne^m-

He joined

weeks ago,

National

declared

record

the

COMPANY

FABRICS

five Cents

Governor because of the

share on the Common
Corporation, payable

per

Stock

MANUFACTURING

DIVIDEND

quarterly dividend of forty (40)
cents per share for the second quarter
of 1958 has been declared on the com¬
mon
stock, payable June 10, 1958
to stockholders of record at the close
of business on May 23, 1958.

career

IPtPPEHtLLl PEPPERELL

Funston,

re-nomination

offering,

Keith

DBEWRYS

Meantime, sponsors for the $15
million Southern Counties Gas Co.
California

Co.

-v
as

He was Chairman of the
American Stock
Exchange from

changes.

1.947 to 1950.

cents

Gerard A. Weiss,

Dividend

York
Ex¬

Stock

American

the

serve

the New

of both

Chairman

progress.

Rome

Directors

Corporation has declared con¬
Dividend No. 77 for 25

Werle

/•

history

Cable

ord

IRON CORPORATION
C.

Edward

1947.

took

group

interest

4's%

bids.

the
bid of 100.799 for

successful

The

1940.

Competition

Treasurer.

wmi

the

man

1924

GREENBURGH,

THE COLORADO FUEL

become

individually, United Gas Improve¬
ment Co.'s offering of $15 million
seven

been

Providing one of those oppor¬
tunities
which -. affords
under¬
writers
to; flex
their
muscles

June

first

1919.

Meehan

Board

The

June

Racine. Wis.. May
12. 1958
of
$1.75 per share on
the 7%
stock and 11.375 Cents per share on
Second Preferred stock of this Com¬

pany
has
to holders

Monday, May
19, he will

son

however,
the coming

for

roster

week

noted,

the

Chair¬

and

business

July

dividend

pressure.

should

including

Freferrcd

the

off

take

;■

Mr.

manship

recognize that

secutive

JOHN

A regular

assumes

the

11, 1958.

Walter

terms:

77th Consecutive Dividend

re-elected

(Incorporated)

Werle

dearth of new
opportunities to fill their needs in
the weeks ahead. This condition
there

year

were

J. I. Case Company

constitu¬

the

debt

corporate

new

record

June

City).
membership of the Board

33,

tion.

real difficulty.

any

of twenty-five
(25c) cents per share was declared,
payable June 27, 1958, to stockholders
of

CORPORATI

dividend

quarterly

York

Total

for¬

mal

several

underwriters have been fortunate,

;

8, 1958

May

CABLE

ROME

New York 6, N. Y.

its

had

61 Broadway,

DIVIDEND NOTICES

25th

DIVIDEND NOTICES

MIAMI COPPER COMPANY

ch a. ngc,

Sim¬

Investors

with

was

Stock Fund.

Meehan

wait, for

in their chairs and

back

Ellis

Goldman, Sachs & Co.
(New York City); and William M.

e e

1817 when the

their feet,

drag

Two Governors

Board

the

Governors

Stock Exchange.

Recognizing that four or' five of
the

has

Werle

Chairman

elected

keep pretty
movement of

they

moreover,

Edward

around

operators know their way

Blunt

(Chicago); and Henry M.
Watts, Jr. of Mitchel, Schreiber,
Watts & Co.. (New.York City).

Of New York Exchange

investment

Kumasaki

mons

talks.

sales

their

hard-shelled

These

Werle Ch'man of Board

com¬

somewhat

showing

panies

Simmons

Smith,

DIVIDEND NOTICES

Dewar, Robertson

(San Antonio); James
Parker Nolan of Folger, Nolan,
Fleming-W. B. Hibbs & Co. Inc.

are

insurance

Harding

Barney & Co.

& Pancoast

finding major institutional buyers,
chiefly

were

serve

H. H. Dewar of

day, will sell $16

ago.

dealers

Underwriters, and

240,000

Governors

new

three-year terms:
J. Truman Bidwell, an individ¬
ual
member
(New York City);
James - F.
Burns, Jr. of Harris,
Upham & Co. (New York City);

stock. Public Serv¬

ice7C]d;'

of inventory
last

and

bonds

new common

Charles
other

elected to

The corporate new issue market Monday, Gulf States Utilities Co.
currently a little on the,?slyg-,, is slatecbto open ;bids-for $20 mil¬

gish side judging from comments
-of those in a position to discern
conditions. There has been a bit

Co.

Six

W. It. G1ESEKE,

Vice Pres. & Secretary

NATURAL GAS: Processing and Transmission

and Production

The Commercial and Financial Chronicle

(2216)

Thursday, May 15, 1958

year

from the Nition'i

jljL

Capital

are

$1,700,000,000. Similar
pending in both the

Senate and House.
Under

Washington.
Bekin<Mhe-Seeno Interpretation*

bills

BUSINESS BUZZ

for

•.

the

ing

d~kl I

WASHINGTON.

Congress have been signed into
law by President Eisenhower.
They are the 1958 highway con¬

struction law

great-,
er
spending program for the
next two fiscal years; increasing the debt ceiling, and the
emergency housing program. i
providing

chances
state

the

been

Senate

trying

differences

iron

these

been

omy

measures

price

unemployment

the

current

fiscal

Under

two

%he.y

This is to be
Democrats
Congress, and the

Labor

ion

bill is

actment.

mittee

ducted

The

fense

have

run

tion

reciprocal trade, the mu¬
security program and de¬
reorganization measures

that

not

that

mean

this

the

Senate

quire

time the defense reorgani¬
bill
which
President

than

passage

have

pears

some

ulation

that

three

will

recommended.

Alaska

and

Haiti

Both

the

Senate

Interior

and

come

modern

disclose

to
the

Both

House

came

Affairs

exemption
before

lip

it. appears

Committees have reported fav-

vorably the Alaska statehood
bill; the Senate committee hijs

years..

gas

86th

proposal

Congress,

certain

the

will

Congress

and

come

that

will start.next January for two

Perhaps

few

bills

that

anti-recession

ever,

and

tax

business has

relief

Tax

cut.

unlikely

certainly

individual
for

small

been

gaining sup¬
port on Capitol Hill for .weeks.
Just what shape legislation fa¬
vorable

will

business

small

take is speculative at this time.
The Senate and House confer¬
have

first

agreed

class

rate

the

from

cents

Olin Oil & Gas

want

stamp

all

postage to four
present three-

conferees

air

while

six),

(now

Senate

raising

seven-cent

favor

mail

the
eight

Full text of Commercial and Financial Chronicle : May 15, 1958, Vol. 187, No. 5742, Section 1

FRASER