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MAY 17 1957
ESTABLISHED 1S39
BUSINESS ADMINISTRATION
-It
■
LIBRARY
U'
EUf. U. B. Put. Office
Volume
r
■
185
Number 5638
New York
7, N. Y., Thursday, May 16, 1957
Price 40 Cents
Copy
a
i
■
EDITORIAL
See It
Steady Jobs, Stable Dollars
By RAYMOND RODGERS*
J
Professor of Banking, Graduate School of Business
;
-
t
Mr. Khrushchev has come forward with a plan
for decentralizing - the management of Russian
\ industry^ Final jurisdiction would remain in the
| Kremlin, but a much larger degree of autonomy
and
Federal Reserve System
Finance, New York University
I
j would; so it is reported, be granted to managers
in the field. The Kremlin appears
\ in line without much if
any
*
to have fallen
dissent. The first
many Americans,
{thought that will occur to
J doubtless, is that Mr. Khrushchev and the other
in Russia must
bosses
have
^contacts in this country
use
cause
not only for ordinary
Mr. Balderston maintains supplying credit to meet all
demands would add to price inflationary pressures with-
adding to supply of goods. The central banker r
advocates financing investment primarily out of real '
savings from current income, and points out that exces¬
sive private demand may be curbed
by taxing powers.
states, and lead to corporations selling bonds to repay
'too
with
what
for a
These
The
good while past with excellent re¬
giant enterprises are too large and
intricate to admit of central
long-term
outlook
the
on
management in
economic
if
think
Mr.
they
by
can
or
simple
so
controversy
reflection
number
smaller
of
and
less
surpass
its competitors
or
people
Washington.
of
The
the
ahead.
in
New
York
Two Ways
Doctor
Raymond
of
The
covered
on
page
28
address
the
May
6,
by
National
Mr. Rodgers
before
of
Association
the
Mutual
37th
on
the
page
holders
of
life
million savings
by social security,
that
there
would
one would
be severe
savers
those
and
them.
It
is
-
Continued
24
♦An
Conference
Banks, Buffalo,
Annual
Savings
million
the rights
who
depend
encouraging that
/the Life Insurance Institute is currently using nation¬
wide advertising to create more public
understanding
and thereby lessen the danger of dollar destruction
by
imprudence.
;
\
- re¬
insurance plays an important role in today's economy
of
upon
Grover W. Ensley, Execu¬
Continued
♦An
100
competition to champion
C. Canby Balderston
only by increased saving and investment. He said
that the chief problem of the postwar period has been
at least
of the dollar.
power
kept sound, both as a medium
exchange and as a store of value.
think
on
the
and
loan shareholders,
14 million
employees with pension rights under
private plans and 66 million who are
by two top
Committee
buying
insurance policies, 15
of Economic Life
Congressional
for
mass
With
Economic Report, said that sound economic growth could
com¬
needs
that is
tive Director of the staff of the Joint
Rodgers
human
whole and the protection
prosperity and mass sav¬
ings, human welfare requires a dollar
a
deeper-seated,
years
of
as a
the
With
conflict between the sat¬
no
isfaction
govern¬
the budget is but
much
a
in
addresses
of
Continued
economic or political objectives.
be achieved only if the dollar is kept sound.
government economic advisers.
petitors—to keep it sharp. It remains in business
and continues to be a success only if it can match
possibly
long-run
There is
come
or
of
can
diametrically
opposed
view¬
points, which have again clashed
head-on in Washington, were point¬
edly set forth recently in public
bring Rus¬
formidable
list
they
two
of the others
a means
in
over
of
achieved
any
any
But
closely
basic difference of opinion as to how
continued economic growth may be
sian industry to the pitch of efficiency and pro¬
ductiveness that is the rule in this country, they
have
a
rude
awakening awaiting them. The
causes of the
vast superiority of the American
system lie much deeper than any type of organ¬
ization or any mode of procedure. General Motors
has its Ford and its Chrysler—to say nothing of
a
circles
ment
procedure.
Khrushchev
is
rates
philosophy which prevails in
policy but detailed
operation is left in large degree to an array of
managers across the country. The Kremlin does
But
interest
for
tied to the long-term outlook for the dollar. The future
value of the dollar will depend to a considerable extent
detail. The head office fixes
well to imitate the
The well-being of all its citizens should be our nation's
primary goal This means that social values should head
loans, and to changed Federal Reserve credit
policies, first applied to short sector of the market.
is
8,
page
34
by Mr. Balderston before the annual meeting of the
Insurance Association of
America, Washington, D. C., May
Health
1957.
on
address
1957.
GROUP OF IBA CONVENTION PICTURES—Candid shots taken during the course
TEXAS
of the 22nd Annual Convention of the Texas Group of the Investment Bankers Association
DEALERS
of
American
Convention
at Dallas,
State, Municipal
in today's PICTORIAL SECTION.
appear
in
and
U. S. Government,
UNDERWRITERS
Stale and
Municipal
telephone:
STATE
and
Securities
m
MUNICIPAL
and
DISTRIBUTORS
COPIES OF
BONDS
INVESTMENT
CHEMICAL
THE FIRST NATIONAL CITY BANK
Burnham and Company
MEMBERS NEW
ST., N.Y.
CABLE:
NEW YORK 5, N. Y.
•
Dl 4-1400
TELETYPE NY I-22M
COBUMNHAM
OF NEW YORK
Bond
Dept. Teletype: NY 1-708
Net
T. L.Watson &Co.
Active
1832
Commission
New York Stock Exchange
American
goathuxAt
Stock
Orders
Canadian Exchanges
CANADIAN
Exchange
DIRECT
WIRES TO
Executed
York
Stock
Exchange
offices
from
coast
Chase Manhattan
5
bank
coast
to
$250,000
Brokers
Province of British Columbia
Guaranteeing
British
Columbia
for California
Power
Municipals
Commission
4%%
On
Due
All
Payable
At Regular Rates
in
Debentures
April
15,
United
1987
States
Dollars
Price 98 and interest to yield
4.50%
Prospectus upon request
1-2270
MONTREAL AND TORONTO
Goodbody
VIEMBERS NEW YORK
BRIDGEPORT
,
New
MUNICIPAL BOND
STREET
NEW YORK 4, N. Y.
I FIRST
and
DEPARTMENT
Teletype NY
,
25 BROAD
COMPANY
BAitAJ
34
SECURITIES
Members
the
Banks
THE
&
BROADWAY, NEW YORK
Maintained
Markets
Dealers,
CANADIAN
SECURITIES
of
Members
120
To
ESTABLISHED
-V.-f
•
•
BOND DEPARTMENT
AVAILABLE
REQUEST
Harris, Upham
STOCK EXCHANGES
YORK AND AMERICAN
15 BROAD STREET,
INVESTMENT
NOW
ON
BANK
department
Bonds and Notes
REVIEW"
SECURITIES
CORN EXCHANGE
bond
OUR
"COMMON STOCK
ARE
30 BROAD
Public Housing Agency
of
HAnover 2-3700
PERTH AMBOY
'15
BROADWAY
NEW YORK
&
Doxnnox Securities
Co.
Grporatioti
STOCK EXCHANGE
1 NORTH
LA SALLE ST.
CHICAGO
40
i
out
their term
purpose of keeping in
going on in industry here.
This type of decentralization in the management
of our large corporate enterprises has been in
sults.
-
\
of these temporary weaknesses , could
the otherwise sound economy to decline, the author
espionage but also for the
; vogue
-
ceptions about inflation now being propounded are :
exposed by Federal Reserve Governor in tracing the!
close connection between steady jobs and stable dollars. !
Non-correction
their
of
Present day Mirabeaus and Bryans dangerous misconf
/Banking. Professor explores possibilities of short-term
rate decrease and, though not
quite as extensively, de¬
cline in high-grade bond yields. Should
they materialize,
some of the
determining factors for this development,
according to Mr. Rodgers, might be r halt in price infla¬
tion, downward housing trend, and decline in durable
consumers' goods in general, including the auto
industry.
touch
<
i
made
By C. CANBY BALDERSTON*
-
Vice Chairman, Board of Governors of the
Administration and School of Commerce, Accounts,
Exchange Place, New York 5, N. Y.
Teletype NY 1-702-3
WHitehall 4-8161
DEPARTMENT
Bttttk of America
NATIONAL
300
JTviVo s ASSOCIATION
MONTGOMERY STREET
SAN
FRANCISCO, CALIF.
The Commercial and Financial Chronicle
(2274)
2
For
The
only
Bunks, Brokers, Dealers
participate and give their
they to be regarded,
take advantage
not
of it?
y-y
think the
New York Hanseatic
Stock
it
SAN
FRANCISCO
RIGHTS
Since 1917
through
Grande
American
120
Stock
Stock
results
the
Furniture
Lynchburg, Va.
TWX LY 77
of
manufacture
and
things
produce substantial business
Its Loewy-Hydropress
Vanguard, the earth satellite. It will also design and construct
for
the
Navy,
a
huge
hieh-soeed
apparatus,
ship and
land tests
will be used for
Polaris,
inter-
an
ballistic missile,
division which de-
range
the
is
signed
producing
forging presses
to 50,000 tons pres-
giant
the
up
airplane
forge
which
sure
and
wing
Service A
sections in one piece, elimi-
nating riveting and other assem/ o;
_®„.
Magna Theatres
bhes.
the
three shifts
Sreewe^CovApam^
1930
a
developed
in
tested
through
tP
V
Century Controls
Wyoming Uranium
Acoustica Associates
Western
States
Ref.
In
(a
type
to
by
•
•
•
•
of
locomotive
prototype
this
delivered
was
was
designed
lightweight Xplorer and de-
also
1956. For its light-
train, the
New Haven
new
I
aZy
for
and
engines
iet
gufded m"s-
steel rings for
'
.
,
Los Angeles,
0—,
for
hi
th
.
facilities
efficient operation and after
recasting of administration (it
is now decentralized, with execua
providing good earnings.
A
highly
competent
management
has, I think, solved many probcompany
newcomer
and
1956
and
Exchange PI.,Jersey City,N.J.
Possessed
nowers
an
HEndarson
2-8570—Teletype JCY 119
Direct Wirt Dlgby 9-3424
operation,
shows
and
the
locomotive
substantial savings in fuel
maintenance
costs.
Results
37 Wall
a
an
a
to the
Dealers
investment
of
.<ov)a WoSa
Corporation.
broad
charter
caDiat
strong
oosition
readily-marketable
outstandingly manageable'man-
agement, Nationwide Corporation
'S'SAm&
for the
the 34c
^m?ardes eve5. J® be created in
the
f^ld.
insurance
It is
holding
a
company,
vestment company
and
an
in-
a manage—
ment company, all combined in a
*s' *° our. kno\vlecIge, no other
no^other *company^s^so 1 well-
sometime this year and
equipped to take advantage of the
increased
a
trend.
My
this year.
Since
1945,
of $1.50 to the present 40c.
and varied
profit
bonds or preferred stock
there
are
only
4.3
million
Over-the-Counter
Quotation Services
for 43 Years
oppor-
tunities offered by the insurance
business
*
class
A,
capftal consTsts'of 800°000
and
2,010,000
class
s0^ t°
National Quotation Bureau
Incorporated
B
Capitalization is simple: there shares. The class A shares were
and
Underwriters—Distributors
Calif.
level of $2 per year
will reach
no
T.;
Canadian and Domestic
estimate is that the rising trend
are
Street, New York 5, N.
excellent banking background
eliminated, from an annual rate standing
ular
Toronto, Canada
.EMpire 3-B204
INC.
single business enterprise. There
rising
a
more
•
Burns Bros. & Denton
own
or
:
a^y one of the most profitable
first quarter of this year maintained
King St West
Trading Dept.
most important one,
a
Nationwide
fs
pared with the 125 tons or more
After reg-
73
had for a is the most flexible, and potenti-
long time.
in
a
scene,
these
centralized),
the company have
brilliant promise, it seems to me,
86c
COMPANY
limited,
Nationwide Corporation
erable consolidation of plant, mamore
and
v
President, Robert II. Hoff & Co.
ddystone^ after consid-
P a^| a
J
Limited
WISENER
ROBERT H. HUFF
surplul
LINES
PIPE
\
-
parninff~
,g.l e C0SX1y» surplus
.
—
Investment Securities
; '
resuiting from the costly
of
TRANS-CANADA
of
holdings of the stock,
sjjes
dividends have been cut, but not
of the standard diesel.
fall
to the reader to inform him that
clients and partners of the writcr's firm have relatively large
tive, which weighs 87 tons, com-
CAPPER & CO.
the
among technical students once and
it reaches 16-17. It is only fair
is I expect the dividend rate to be many
using Baldwin's new locomo-
since
and
f
From v
$2.63 in 1946,, earnings f
&
per
country,
Baldwin for New York Cen-
weight
comoonents
the lems that the
directly
power
the U. S. Army)
tral's
a
Maintained
Securities
24, the stock quickly set¬
back
<« about 30.
Baldwin has a large public fol-
booked),
been
6 COrtlandt 7-5680
Markets
the
All
,
share fell to 40c in 1955, rose to
livered in May,
Mohawk Business Mach.
and
in
1959 has ®genV®ilUtle mT tha"
a year-and-a-half m a base of
''eaccumu at1 on between 12 and
13ve watched the action of
the stock daily for more than a
^e.ar and be evlcjence of accumuboth °n .tbe tape ai}d °n
t®c.1hm£al. aaalYsls. are unmistakabi?' ^hls bas.f °f ^accumulation
a short-term objective
PIP a more distant level
steel
f0rgings and castings, super alloy
have
the first
this
commercial
From
tled
(world-
wide orders for 16 mills of
Branches
Bankers
Investment
Trading
Firm
}^ one of those rare accidents
machin-
economies), rolling mills
type
A*
111 Broadway. N.Y.
ot lucK->
mechanical-hydraulic
a
&
drive.
ery
1897
Office Tokyo —70
Brokers
J wa^
m.ust
PI th^L rl™
™
extensively 0f
motors
and
transmits
diesel
y>>
and
Established
Home
lowing and technical theory leads
(a new design has attracted me to believe that buying interinterest because of certain .est in the stock will be spurred
the five policy
new type products of
had
Yamaichi
Securities Co., Ltd.
tt
Ho
f1 "J®;
expected),
are
can-making
:
««
i■
™
Pf. ^
,
the
for
presses
developments
secured
Europe.
It does away
conventional
electric
the
generators
%
year,
rights to manufacture a
of diesel locomotive
which
with
Herold Radio
program,
last
day.
Baldwin
1955,
been
Tel. HAnover 2-4850
Force
Air
built
presses
continuously
operated
In
nmc(,oc
such
Six
under
Radiation, Inc.
United Artists Corp.
/
major pro-
power
mechanical
jng
platform which will
Lockheed's
This
Diversified
a
simulate the motions of a
mediate
Botany Mills
Af
water
write
P.®
a™]iii?
automotive industry and interest-
for the
of
Trading Markets
31 Wall St., N. Y.
measure-
t
information
or
think
reader
i LnLL
thJ
but
here,
as
jts
which
ESTABLISHED
c°ntracte /Le"t fh°
practically
be Btirring due
current
Call
^
? founfd^c}'
™
P
including such
turbines
(two very large ones will be installed in the country's first underground power plant), railway
dump cars? mechanical and hydraulic presses (its engineers are
studying advanced automation of
in
Division, in cooperation with the
Martin
Company,
designed and
installed the launching platform
STRADER and COMPANY, Inc.
Investors
^
It is developing a number
0f new products and systems, the
use 0f which is growing rapidly
in both industrial and military
pletely
active
For
ft?nHarwpntai^Cnf
grams.
time.
in
Commonwealth Natural Gas
LD 39
force
ment systems to three
•
becoming
is
design
may
of Va.
Life Insurance Co.
believe that
I
and
Energy
at
improved Japanese economy.
to
?rgy stocks were the great favor-
contributed
has
equipment for handling and
launching
guided
and
ballistic
missiles, a field which, of course,
Industries
Furniture
Bassett
and
appear to
now
the announcement of the contract to study the atomic locomotive and at that time, atomic en-
be
A new division, the Electronics
and Instrumentation Division,
moved into a new plant of modern design at Waltham, Mass., last
October. This division also is doing work in the missile field and
extensive
^
middle of last year.
Baldwin
American
of
integration
Atomic
the
to
will
studies
remaining
stationary levels for three years
This was the time
March, 1955.
the
shortly,
Very
STOCKS
after
cember, 1954, the stock broke out
°f this base and reached 24 in
Nuclear
Kidde
these
of
reported
period
JAPANESE
to
of sharply higher earnings.
The
improvement
has
already
shown up in first quarter results, * fields,
when on about the same sales, the
These and other divisions proprofit
margin was
more
than duce
wld(( variety of products
double
that
prevailing
at the t0Q nu^er6us«i to * mention com-
Trading Interest In
snows . an excepbullish
pattern,
good,
the stock fell to 8% in 1949 and
Commission.
years
TEL. REctor 2-7815
action
base indicated an eventual price
°i 30. In an extraordinarily fast
nuclear- rise that started from 10 in De-
contract
a
Walter
Laboratories.
Cortese
of transition and poor profit
margins will now be followed by
BROADWAY, NEW YORK 5
^
J.
A.
years
Exchange
Exchange
Western,
with
tion
modernization
Members
York
New
market
tionally
huge.
take
study the feasibility of a
diversification,
"McpONNELL&fO.
be
would
branch offices
our
-
Technical analysis of Baldwin's
powered locomotive. These studies
have been carried on in conjunc-
dis-
a
from
Direct wires to
then, during the next four years,
posal of more than three-fourths
of this
property was complete!
last year and the Eddystone division has just begun to contribute
to earnings. More than this
this
noted,
old
company
has been
SCRIP
&
shares.-
over 300,000
Mobile, Ala.
mimorl
nnmnonu
made a base of accumulation between 8 and 15. This four-year
years,
the
.
tho
nf
Early in 1955, the Atomic Energy Commission granted to Baldwin
and
to
the Denver
& Rio
earnings,
on
but
rectors of the company owned
course.
now?
seriousIdrain
New Orleans, La. - Birmingham, Ala.
0f Feb. 1, '■(•77
di»• 1957,
/ officers and
rantnrc
N. Y.
NY 1-1557
HAnover 2-0700
shares of common outstanding. As
From a high of nearly 39 in 1946,
will
source
Exchange I
Exchange :r.
Members New York Stock
19 Rector St., New York 6,
Bald-
business
Steiner,Rouse&Co.
Members American Stock
that
to
t0
that
and
of
President, Robert H.
Co., Los Angeles, Calif.
(Page 2)
.
.
similar
^
that
LliCiv
see
OvC
.
diesel,
volume
however,
plant at Eddystone, Pa., was
Specialists in
to
IU
easy
CCifij'
•
v
This,
time, of
this
and over-sized
a
to
win's
obsolete
the
to Principal Cities
Wires
js
.
conversion,
conversion>
steam
prospects.
For
...
w
,
Huff,
Huff &
when the railroads converted from
has brilliant
CHICAGO
•
PHILADELPHIA
Private
York 5
•
BOSTON
com¬
a
period
depressed
earnings and
Exchange
diesel> X v
vlivdCJLj u
ii
of
Qf
Bought—Sold—Quoted
.,
Natmnw.de Corporation- Robert
H.
there will be an important period
of
Teletype NY 1-40
WOrth 4-2300
tio«al
LivUCiJl
.
from
1920
New
Broadway,
*
corner
that
120
T
•
has defi¬
nitely
turned
the
Member
Associate
American
f j
Baldwin-Lima—
id
r
.
selling at 14.
1
Ln?„~ ??
g a
now
pany
Corporation
Established
is
time
(Page 2)
..
mechanical-hydraulic diesel shows
large economies over the conven-
choiceffr^e best speculain the stock market at the
Hamilton,
Senior Partner,
Cortese & Co., New York
prototype for freight service. If
a
freight locomotive using the
i„
u„-
n/r..
My
A. J.
nor
Wltb tbe engineering for a heavier> more powerful all-purpose
Baldwin-Lima-Hamilton
tion
-
Co.
Stork Exchange
York
New
Members
be,
to
the company
York City
New
present
U
—A. J. Cortese,
gratifying to Baldwin that
decided to go ahead
were so
Senior Partner, A. J. Cortese &
part
Why
nation.
the
of
A. J. CORTESE
brokers
banks,
of
and dealers in every
intended
are not
'
Louisiana Securities
Baldwin-Lima-Hamilton Company
offer to sell the securities discussed.)
as an
Thursday, May 16, 1957
Alabama &
Their Selections
particular security.
a
.
Week's
This
City.
(The articles contained in this forum
are
rectly contacting hun¬
dreds
for favoring
reasons
;
Forum Participants and
week, a different group of experts
and advisory field from all sections of the country
in the investment
extensive
wire system, di¬
private
"
A continuous forum in which, each
Try "HANSEATIC"
We maintain an
Security I Like Best
.
public in April, 1956,
Continued on page 29
Established 1913
46 Front Street
CHICAGO
NewYor1i4,N.Y.
SAN FRANCISOO
Number 5638
185
Volume
.
.
The Commercial and Financial Chronicle
.
(2275)'
INDEX
Pfospeiity and Inflation Is
—■■■
v
of Chicago
v
sion, MidWest banker calls for
inflation.
retreat in the fight against
no
The ingrained fear of depression and reactions.to
4
See
country
getting around the
lately
deal
great
a
constantly
and
impressed with the
am
tremendous boom and
growth vis¬
ible everywhere. Yet, several dis¬
turbing thoughts have occurred to
would
that I
me
briefly.
like to
examine
'
'
Ingrained Fear of Depression
.
first
The
of
to be
pears
a
While
these
is
what
ap¬
chronic and nagging
fear of de¬
gression, In
spite of a dec¬
ade
almost
of
continual
—Earl F.
-
u
*
Hastings...
9
__,
Meeting Technological Changes With New Agricultural
Dimensions—Hon. Ezra Taft Benson.
'
T *
v1
>'\y&-
Jr
Y*
*—O. B. Jesness______
Analysis of the Sources and Uses of Investment Funds
—Sally S. Ronk_
_:
' ;
*
we
much
of
economic
our
thinking
the
of
on
problems
deflation
and
depression
rather t h
M.
David
Kennedy
it
times
a n
and
picture,
the
brink
of
used to
serious
a
have
We
downturn.
an
are
in
or
at
business
so
operating
economy
become
on
draft
forced
basis, with the at¬
tendant maladjustments and infla¬
a
we cannot
think in terms of relative stability
tion,
at
apparently
that
It almost appears
depression is
high level.
a
recession
that
or
being defined as the absence of
setting new records every day,
every
week,
and
month,
every
every year.*
Most
our
ol
believe
strongly
in
competitive, free market
We know that a high
of
economic activity does
economy.
Whither Interest Rates—Raymond Rodgers__
The Blunt Truth
J
„
fail
and
segments
large
of
—William
*
economy
rather
This is
of
the
we
than
at
once
which
spell real economic trouble.
one
of the
post-war
have
*A
all
seen
great strengths
economy
which
time after time.
talk
by Mr. Kennedy before the
Open House and Conference of the . Fed¬
eral
Reserve Bank of Minneapolis,
May
4,
L.
Many
economy.
gloomy
business
made
year
a
forecasts
Savings Banks
very
• were
because of
ago
*
Grover
de¬
W.
Executive
Named
cases
lip service to
Similarly, I have
where, after paying
the desirability of
Yes, But
25
expenditures,
concern quickly is expressed that
a
real cut or lack of expansion
in the budget might lead to seri¬
ous trouble.
We forget the expe¬
rience
of
tailed
when
1953-54
expenditures
the
at
Federal
drastically
were
same
Decline
aster.
lead
haunting
of Growth
for
Downtown
Sidney L. Solomon
See It
thinking.
some
fear
of
My first item
_______Cover
Stocks
Term
Lending"
8
Singer, Bean
.—
4
&
8
—
disastrous
evils
Washington Ahead of the News—Carlisle Bargeron____ 15
From
Funds
Mutual
Reporter
—_—
continued erosion
47
Public Utility Securities
Securities
is -the
Continued
areas
on
in
page
The
Security I Like
.
.
.
Spencer Trask & Co.
York Stock Exchange
Boston
•
TELETYPE N. Y. 1-5
•
•
Chicago
Schenectady
•
•
Glens Falls
Worcester
27
Best—
____——
—
Twice
_
.
„
Place,
New
„„„
York 7,
...
Vitro Corp.
Ambrosia Minerals
Lithium Corp.
B' D*n*
'
c
matter
Febru-
Possessions,
•
K V. FRANKEL 1 CO.
.
Subscription
-in
Rates
United
Territories
and
States,
U.
Dominion
of
Canada,
of
$63,000
per
INCORPORATED
S.
Members
Pan-American Union, $60,000 per year; in
Other Countries, $67,000
Thursday, May 16, 1957
Eng-
25, 1942, at the post office at New
york, N. Y., under'the Act of March 8, 1879.
9576
SEIBERT, President
C.
ary
.
N. Y.
.
SEIBERT, Editor & Publisher
WILLIAM DANA
and
_
second-class
as
Subscriptions
HERBERT D.
E.
.
1Q_,
C°Pyr'8ht
Reentered
COMPANY, Publishers
DANA
B.
Park
.
„
U. S. Patent Office
.
.
Preferred
Warrants
5
—
1 Diapers'- Gardens, London,
land, c/o Edwards & Smith.
FINANCIAL CHRONICLE
Reg.
Resources, Inc.
Common,
48
Weekly
;
„
2
—
'
Metallurgical
16
Washington and You_
20
ST., NEW YORK 4, N. Y.
TELEPHONE HAnover 24360
41
—
——
1
36
—
:
The State of Trade and Industry.—
the
—
and You—By Wallace Streete__
Market
(Florida)
45
——
—-
Corner
Salesman's
Security
The
Commonwealth Oil Co.
31
——
w
—___
in Registration—
Now
Prospective Security Offerings
.
for various
;___
Railroad Securities
point
needing re¬
question of "
just what are our future economic
problems.
If
depression of the
1930-1940 type is to be our future,
a good case can be made for heavy
Government
spending,
aid
and
crutches
Dallas
United Western Minerals
29
Reporter's Report——
on
Chicago
5
Governments..
Our
to
Los Angeles
20
Observations—A. Wilfred May
-
Direct Wires
44
'
Our
second
N.Y.
Philadelphia
46
News About Banks and Bankers
dollar.
The
INC.
40 Exchange PI.,
Teletype NY 1-1825 & 1-4844
22
—
Indications of Current Business Activity
Years of Growth Ahead
examination
Mackie,
HA 2-0270
_____—
REctor 2-9570 to
26
___
:_____
important item
most
of inflation and
,
45
Einzig: "British Commercial Banks Extend Larger
„
Nashville
Storesv
«
Dealer-Broker Investment Recommendations
on
of
the
analysis of
-
our
25
•
Department
an
28
:—
Coming Events in the Investment Field__
a
without
in
Portrayed
(Editorial)
Bank and Insurance
thoughts shpuld
these
be the
Profits Graphically
prepared
Regular Features'
As We
re-examination may be t.oo
idealistic and
intangible. But it
may
Corporate
Real
Business Man's Bookshelf
to re-examine
us
basic
We have
the
of the 1930's?
Perhaps
17
.
Capital Formation Sponsored by
on
was
the
of
in
Seen by
Is this lack of faith another
resurgence
'.
.! (Boxed)
.
Decade
Great
.
New
JCY 215
-
cur¬
time
.
Study by First National Bank of Boston
-
Members
HEnderson 4-8504
Teletype:
University of Vermont and New York Financial Community 18
cutting in¬
ventories sharply. Neither of these,
at least on hindsight, led to dis¬
private economy
.
Summer Course
Federal
reduced
PREFERRED STOCKS
BROAD
Exchange PI., Jersey City
DIgby 4-4970
the
of
.
WILLIAM
Albany
Vice-President
Association
.
specialized in
1
20
Ensley
Published
25
Lake City Stock Exch.
Spokane Stock Exchange
National Association of Mutual
The COMMERCIAL and
For many years we
J.F.Reilly&Co., Inc.
13
clines in the automobile and hous¬
1957.
have
;
12
;
Barton
New Officers of the
v
the
of
adjustment periods one at a time
would
Perspective
a
through
get
can
DOMAN HELICOPTER
7
Members Salt
appreciate fully the basic
underlying strength and resiliency
of the
the
.6
Housing—George S. Goodyear.
on
CAMDALE CORP.
'
to
basis
industries
URANIUM
Banking's Personnel Programs Now and in the Years Ahead
that somehow, for some
the economy cannot take
adjustment in stride. I think we ;
reason,
thing. And it is good that different
guaranteed prosperity
for each and every line of business
at all times. The idea of "rolling
mean
"
Cover
Placing the Federal Budget in Some Sort of
'
readjustments" has become im¬
bued in our thinking as a good
n6t
PACIFIC URANIUM
22
Where Do We Go From Ilere in Housing and Mortgages
—Thomas E. Lovejoy, Jr.__
all, namely the question of faith
in the future of the country and
our free, private enterprise econ¬
omy. Lacking this faith, we will
have
a
hard
time meeting the
challenge of the future and mak¬
ing our economy work on a sound
level
Trust Fund Plan
a
FOUR CORNERS
the fear
such
us
Part of
..—Hon. Walter Williams
into
In spite of the strong over¬
we
hear statements
all
as
Addresses at National Association of Mutual
Savings Banks* Convention '
|
the
of
'
of Faith
Lack
run
we
MINERALS
17
Another facet of the problem is
Right
now
UNITED WESTERN
14
Bank Lending Officer
—Roger W. Babson
;
to Washington for
solution to each in¬
a
industries.
going through a stage of roll¬
ing readjustment in certain lines,
but at a high level of total activ¬
ity.
trend
a
dividual problem.
ing
are
a
—J. P. £>reibelbis__
The Use of Speculative Trusts
look
to
help
be
to
seems
inflation.
to the effect that we
Some Present Day Thoughts of
„
.
concen¬
WHitehall 4-6551
11
___.
neces¬
rec¬
expansion,
STREET, NEW YORK
ID
Getting to the Roots of the Perennial Farm Issue
r'V:r .-'ih'
adjustments are a good thing
in the over-all picture, we appear
unwilling to face them individu- ;
ally. When an industry or a com- V
pany in which we have a particu-'
lar
interest
goes
through
an
adjustment
period,
our
first
reaction
is to
cry
"depression"
and
to
run
to
Washington for
help. This thought is not aimed
at any particular industry. Rather
growth and
trate
these
Obsolete Securities Dept.
89 WALL
le:
sary
ord-breaking
still
realize
we
for quick results!
us
5
_
I have been
For something worthless.
Confident Capital Market Is Our Common Goal
-
setting daily new records causes Mr* Kennedy to
declare that this is an unwarranted lack of faith in our economic prowess and is a resurgence of the haunting fear of
the 1930s. The hanker sees inflationary built^n pressures,
public policies and thinking jeopardizing our future growth
unless it is stopped with sound fiscal and monetary policies.
v
VALUE
Cobleigh__
Tax-Exempt Bonds: Their Past, Present and Future
—A. Wilfred May
v
;
absence of
\
3
British Columbia Power Corporation Ltd.—Ira U.
Foreseeing problems of prosperity rather than those of depres¬
IBBMIMMaf
SOMETHING OF
—David M. Kennedy
-
AND COMPANY
Cover
Prosperity and Inflation Is Our Future Economic Problem
Continental Illinois National Bank
Trust Company
Page
Steady Jobs and Stable Dollars—■€. Canby Balderston
By DAVID M. KENNEDY*
and
ilCHTtnSTEIIi
B. S.
Articles and News
Our Future Economic Problem
President,
3
per
year.
39
BROADWAY, NEW YORK 6
WHitehall
3-3960
year.
Teletype NY 1-4040 & 4041
and ad-,
• '
.
Other Publications
vertising issue) and every Monday (comBank and Quotation Record — Monthly,
plete statistical issue — market quotation
$40,000 per-year. (Foreign postage'extra.)
records, corporation news, bank clearings,
Note—On account of the fluctuations in
Every
state
Thursday
and city
Other
C'hieago
news,
Offices:
3,
111.
(general
etc.).
135
news
•
the
South
(Telephone
La
Salle
St.,
STate 2-0613);
rate
of
exchange, remittances for foreign subscriptions and advertisements must
be made in New York funds.
Direct
PHILADELPHIA
wires
to
DENVER
SALT LAKE CITY
The Commercial and Financial Chronicle
4
.
.
Thursday, May 16, 1957
.
(2276)
a brief outline of its area, British Columbia was mov¬ June 18, 1957 (New York, N. Y.)
complicated corporate ing swiftly ahead; but with that
New York Society of Security
far
broader
economic
might be of interest. At added a
Analysts, Inc. annual outing at
the top is British Columbia Power horizon is visible.
Westchester Country Club.
While
affording
an
exciting
Corporation Ltd., with 4,133,455
June 19-20, 1957 (Minneapolis-!
common shares outstanding
(sole speculative attraction not found
St. Paul)
capitalization).
This company commonly among utility shares,
Twin City Bond Club annual
owns
(1) the outstanding voting B. C. Power also has a consider¬
stock of British Columbia Electric able appeal for the more conserva¬
outing and picnic with cocktail
party at Hotel Nicollet June 19
Company Limited (which in turn tive investor. The company enter¬
enterprise,
somewhat
British Columbia Power
structure
_
Corporation Limited
By IRA
U. COBLEIGII
Enterprise Economist
one of the most rapidly
North American Continent.
consideration of
A brief and favorable
growing major utilities on the
Today's piece is a swift salute to
British Columbia in general, and
to
the distinguished
utility com¬
that serves a principal sec-
pany
•
of
tioii
-
it,
in
particular.
Just
H
in
you
haven't
case
perused
an
"g* Atlas recently,
we
may
say
British
that
Columbia
is
the most west
1 y
of the
provinces of
Canada;
that
it comprises
some 360,000
e r
square
U.
Ira
it
Vs larger
over
for scenic
Texas); and that
than
miles
(making
Cpbleigh
grandeur, and sylvan magnificence
it is unequaled anywhere on this
Mountains up to two and
eastward
planet.
a
half miles high rise up
from the Pacific
provide a series
excellent harbors; and the tim¬
inlets
and
rivers
of
Ocean; numerous
entire
the
owns
voting
of
stock
British Columbia Electric Railway
prise is
over
60 years old and the
stock
common
that
(or
of
its
Ltd.), and (2) all the predecessor company) has paid
outstanding stock of Western De¬ consecutive cash dividends for 40
Province.
The price range on the
velopment
and
Power,
Ltd., a years.
Blessed so abundantly by nature
hydro-electric development enter¬ common since Dec. 31, 1955 has
and the development of transpor¬
prise and (3) all the shares of been between 36J/2 and 50Vs so
tation facilities, it would be ex¬
B. C. Engineering Company Ltd., that today's buyer is not required
pected
that
British
Columbia
an
engineering service company. to pay a gaudy premium to be¬
would
grow.
But since the oil
A very considerable leverage thus come
a
stockholder
at
current
strike at Leduc in 1947, and par¬
operates in respect to British Co¬ price of around 46. Net per share
ticularly since the completion of
lumbia Power common, since it is for 1956 was $2.34 providing a
Transmountain Pipe Line in 1953,
preceded in the consolidated bal¬ comfortable cushion for the cur¬
a
new
dynamic factor has been
ance
sheet by 13 different issues rent $1.40 dividend. On the present
added
petroleum.
Throughputs
of first mortgage bonds, one de¬ quotation, B. C. Power common
of
4>il to Vancouver expanding benture issue and five issues of sells at 20 times net earnings and
rapidly since 1954, led to the
preferred, all of the Electric Com¬ yields a bit below 3%. It requires
building of refineries at that port,
pany; three bond issues and two no particular clairvoyance to sug¬
and now the Westcoast Transmis¬
prel'erreds on the Railway Com- gest that both the cash dividend
sion
Company Ltd.
will bring
pany—a grand total of $264,809,088 and market price of this common,
steadily expanding gas deliveries
in bonds, and $91 million in pre¬ could increase within a twelve¬
from
Peace
River
(Alberta) to
v.";'■ --'lik TVferences
ahead of BC common. month.
Vancouver, giving a new dynamic
All this capitalization is supported
to the economic life of the towns
by assets, having a value for rate
and cities along the way.
making purposes of about $450
All of which brings us to today's million
(including
construction
COMING
topic,
British Columbia Power underway).
Corporation, Ltd., a holding com¬
While the foregoing may seem a
tip is Victoria, capital of the
ern
Company
—
controling the most exten¬
system
of
public
utility
pany
sive
in
the
of
one
Canada;
western
largest
services
and
producers
of
EVENTS
bit
labyrinthine
set-up with such
arate
corporate
welter of sep¬
as
a
a
issues, the fixed
security buyer does indeed
energy
ber
in North America.
May 16-17,1957 (Nashville, Tenn.)
Security
Dealers
of
Nashville
annual
spring outing - dinner
at Hill wood Country
Club; field day May 17 at Belle
May
population of opened up a substantially larger advance its consolidated earnings
1,398,464 up 71% from 1941, as gas service area for the company, from $9.3 millidn for 1947 to $37.5
Net available
against a 36% increase for all of including not only the Greater million for 1956.
Canada
in the
same
period of Vancouver region but West Van¬ for the common stock has zoomed
time.
The principal city is Van¬ couver and 15 municipalities in ahead
in
like
manner
from $2
the Fraser Valley area. As a mat¬ million in 1947 to
couver (over 300,000 population),
$8.7 million last
its
with
1956
third largest city in the country—
magnificent seaport, headquar¬
ters for the shipping '(especially
grain and lumber),;fruit ahd fish
packing, lumbering and furniture
a
industries.
western
of
also the
is
Vancouver
terminal
transconti¬
British
Power
net
might be expanded by as much as
railways, and the seat of
University of British Colum¬
Offshore
bia.
few
a
Island of Vancouver,
miles
is
the
largest island
of
Columbia
nental
the
(13,400
source
alone.
tric
Company)
units
Power
teddy...
4
The Insurance Stock Survey
due
1977,
sold in
of
$1,000
in de¬
consisting
bentures
A/out
shares
12
and
for
common
of
B.
leading insurance companies is
A copy
;
will be
now
available.
393
miles
and
the
of
urban
Electric
426
miles
bus
routes;
Company, itself,
of interurban
bus
radiating
out
and
Westminster.
New
Inspection
from
Van¬
vestment
in Canadian securities reveals that
favorite.
not be
While
it
singled out
current
is
common
a
popular
our
surely would
the basis of
yield, the growth-minded
can perceive, in this equity,
unique vehicle for sharing in the
most impressive industrial expan¬
a
facilities for the
purchase and sale of insurance company stocks.
sion
in
West
Canada.
Purists
utility buyers may view
with some disfavor, the bus trans¬
portation section of company oper¬
ations, since in the United States
among
the fashion has been to slough off
the traction elements
of
power
Blyth & Co., Inc.
14 Wall Street
San Francisco
Boston
•
•
•
Detroit
Pasadena
companies
New York 5, N. Y.
Chicago
Philadelphia
Indianapolis
Sacramento
•
•
•
Los Angeles
Pittsburgh
Minneapolis
•
•
Angeles,
San Diego
•
•
•
•
Seattle
Cleveland
Spokane
San
Josb
•
•
Louisvillh
•
Oakland
Fresno
•
time.
This might
possibly take place in B. C. Power,
too, in due course.
Portland
•
over
•
Eureka
Palo Alto
However that may be,
the main
points to apprehend here in Brit¬
ish
Columbia
are
the
rate
of
nament at the Knollwood Coun¬
industry
roaring petroleum
superimposed
on
this
a
Philadelphia,
Whitemarsh
annual
golf
lumbus
June
21, 1957
Club,
(Philadelphia, Pa.)
Philadelphia Securities Associa¬
tion annual outing at the Overbrook Golf Club, Ithan, Pa.
June 28, 1957 (New York City)
Investment Association of New
York annual outing
mis
at Apawa-
Club, Rye, N. Y.
June 28, 1957
(New York City)
Syndicats annual buting at the
Nassau
Country
Club,
Glen
Cove, Long Island, New York.
Aug. 1-2, 1957 (Denver, Colo.)
Bond
Club
of
Denver-Rocky
Mountain Group of IBA annual
summer frolic and golf tourna¬
ment at the Columbine Country
(Santa Barbara,
.:'-;;;:>V.
;■
;-.;V
Investment Bankers Association
Fall
Meeting at Santa Barbara
Biltmore.
Oct. 7-8,1957 (San Francisco, Cal.)
Association
of
Stock
Exchange
Firms Board of Governors meet¬
ing at Mark Hopkins Hotel.
Oct.
10-11,
1957
(Los Angeles,
Calif.)
V..,vt:-
Association
of
Stock
Exchapge
Firms Board of Governors meet¬
Nov. 3-6,
1957
National
ciation
(Hot Springs, Va.)
Security Traders Asso¬
Annual
Convention
at
the Homestead.
Dec.
1-6, 1957
(Hollywood Beach,
Fla.)
Investment Bankers Association
Annual
Convention
at
Holly¬
wood Beach Hotel.
VVrKv:
:tv/V;:T Q
MASSACHUSETTS
"Trading Markets
"Retail
outing
the
at
Co¬
e)<
'
ZERO COURT
June 7, 1957
(New York, N. Y.)
Glee Club
New
York
nual
dinner
dance
third
the
at
Distribution
KELLER BROTHERS
Country Club.
CO., INC.
SiREti,
jril 9, MASS.
Telephone Richmond 2-2530
ieleype
BS-630
an¬
Bel¬
Plaza.
11, 1957
Club
summer
Lake
outing
Country
Whitemarsh, Pa..
SECURITIES
Columbus Stock and Bond Club
Bond
summer
(Baltimore, Md.)
(Detroit, Mich.)
of
Detroit
WRITE
FOR
annual
COMPARISON
REPORT
ON
outing at the Orchard
Country Club.
DETREX
June 11-14, 1957
Investment Dealers' Association
of Canada Convention at
Park Lodge, Alberta,
June
13-14,
Ohio)
1957
CHEMICAL
Jasper
Canada.
(Cincinnati.
INDUSTRIES
A
chemical stock
at
Cincinnati
Municipal
Bond
Dealers
Group annual spring
party at Sheraton Gibson and
the Maketewah Country Club.
June 14, 1957
Municipal
(New York City)
Club
Bond
York annual field
chester Country
of
New
day at West¬
Club and Beach
Club, Rye, N. Y.
growth in population, industrial
earnings, installed electric horse¬ June 14, 1957 (Philadelphia, Pa.)
power, deliveries of natural gas.
Investment Association of Phila¬
Even without
(Philadelphia, Pa.)
at
try Club.
mont
Club,
ing at Beverly Hills Hotel.
fL. Wright Memorial Golf Tour¬
June
Yacht
Traders Association
of
on
buyer
offer
1957
Investment
Security Traders Association of
of
portfolios of in¬
companies specializing
B. C. Power
sent to you upon request.
JVe specialize in and
(Los
Security Traders Association of
Los Angeles annual spring party
at the Palm Springs Biltmore,
May 24, 1957
couver
comparative analysis of 108 of the country's
C.
$1,400.
routes
■
1957
Bond Club of Baltimore annual
-By the way, about the Railway
Company, subsidiary of the Elec¬
Outing at the Elkridge Club.
tric Company — it operates 108
May 24, 1957 (Columbus. Ohio)
miles of railway freight lines, and
runs
Our annual
17-19,
Calif.)
capital expansion and better¬ May 20-23, 1957 (Cleveland, Ohio)
National Federation of Financial
program involves expendi¬
tures
of
over
$100 million, fi¬
Analysts at the Hotel Statler.
nanced, so far, by sale of $40 mil¬
May 21, 1957 (New York City)
lion in 25-year first mortgage 5s
Cashiers'
Division
Association
of the Electric Company, and $40
of Stock Exchange firms Walter
million of 5%% debentures (Elec¬
those
who
have
never
miles). At its south¬ examined this 500 million dollar
sq.
May
ment
off the west coast of North Amer¬ '■■j\ For
ica
spring
at the Country Club of
Maryland.
the
$1.50 by the end of 1960 from this
June 21,
outing
fact, the potential expansion year.
from natural gas % Naturally a utility growing so
Palm Springs, Calif.
is one of the brightest elements in
rapidly has to come to the security
the forward motion
of
British markets
quite frequently for ex¬ May 19-23,1957 (Cleveland, Ohio)
Columbia Power; Some quite com¬
pansion funds, which accounts for
National Convention of Invest¬
petent analysts have gone so far the series of offerings alluded to
ment Analysts Societies.
as
to suggest that the per share above.
This year, for
example,
ter of
of earning power
Bear
White Bear Lake, Minn. June 20.
16
municipalities, villages, and un¬ to be a quite meritorious equity
Meade Country Club.
Dominion as a organized areas—a total popula¬ on a number of grounds, besides
tion of about 1,000,000. The switch its obvious
May 17, 1957 (Baltimore, Md.)
leverage.
province in 1872, British Columbia
from manufactured to natural gas,
Take earnings. Here's a utility
Baltimore Security Traders As¬
has, for many years, been the
6, 1956, company which has been able to
fastest growing of all the prov¬ which started on Nov.
sociation
22nd
annual
inces
day sports program
White
Sept. 25-27, 1957
Cab)
the
Entering
all
an
the
at
Club.
Field
Investment
security
income
in Canada. get a lot to choose from.
The
stands, including Douglas Firs Electricity is supplied to Van¬
common of B. C. Power provides,
300 feet tall, constitute the most
couver, Victoria and New West¬ however, simple and direct entry
valuable and imposing forest area minster
and to some 60
rural into this situation, and it appears
hyro-electric
In
and
delphia annual outing at Phila¬
delphia Cricket Club.
selling
about 7 times current
earnings
MORELAKD & GO.
Members
Midwest
Detroit
1051
Stock
Stock
Exchange
Exchange
Penobscot Building
DETROIT
WOodward 2-3855
Branch
26, MICH.
DE
Office—Bay City. Mich.
?5
Volume
185
Number 5638
.
.
.
The Commercial and Financial Chronicle
Steel
The
Carloadings
Retail
Trade
Commodity Price Index
Food Price
and
Business Failures
Important barometers of industrial production showed a mod¬
erately higher trend the past week, notwithstanding the continued
decline in steel output. In the case of the latter
industry/many
steelmen, it is reported, are expecting mill operations to show
a higher level of
production in the third quarter.
?
Last week automotive production extended its gains of the
previous week, while electric output also nosed upward. Carload¬
ings too, registered gains of 4.1% above the prior week. Further
reports the past week on retail and wholesale trade, corporate
profits and construction were encouraging signs that business is
.
Let
first
us
weigh.
for permanent
the
rise
1.2%
was
the
a
policies
and last March.
Although
smallest
Early estimates of corporate profits for the first quarter re¬
flect a year-to-year increase of 7.8%, higher than most business¬
anticipated.
remain
close
to
machine tools
of
first
three
months
1957
of
exceeded
those
by 27%, as manufacturers reduced high order back¬
New orders were moderately less than shipments,
a
year ago
logs.
The dollar value of construction put in place rose seasonally
r
to
$3,500,000,000 in April, 10% over March. / For the first four
a year-to-year gain of 2%
occurred, with higher
costs accounting for most of the increase, according to the United
States Department of Commerce. Slight declines from last year
in private outlays were offset by rises in public building. Although
highway construction expanded somewhat, it was below expec¬
months of 1957
^
tations.
O /'/
/
In the steel industry this week hedge buying against higher
;
prices is giving the steel market a slight lift. It doesn't amount
to much as yet, but some users seem more inclined to stock up
before the July price boost than they were several months ago,
according to "The Iron Age," national metalworking weekly.
of
price boost comparable with last year's average $8.50 a ton.
suggested that the increase should be even more than
$8.50. This is quite a bit higher than earlier unofficial estimates
of $5 to $6; a ton.
this trade magazine states, have noted
r^ently in expand for hot-rolled sheet.
a
V The
There
hopeful signs that other steel users may be con¬
tributing to the price hedge pick-up in the same way by main¬
taining their inventories at present levels rather than continuing
their policy of cutbacks.
J
are
For this
this trade weekly notes, it looks as though
reason,
May will be the critical month for steel in the spring-summer
price hedge buying gains momentum, ingot produc¬
so much as had been expected.
But if users
the long run to hold down inventories,
demand will be slow.
I
months.
If
will not drop
tion
decide that it's cheaper in
then
optimistic straw-in-the-wind comes from Pittsburgh,
largemill reports that its order backlog has increased
slightly in the last two weeks. A Pittsburgh sheet warehouse
also notes that there has been a strong< upswing in sales this
Another
where
a
Continued
Food lor
For
most
big
name
To
a
page
33
mean
networks with
good
many
example, here
are
few that
we
1947
to
1957
—
make markets in,
89%
other
and
or
Company, Inc.
Inc.
Thorofare Markets, Inc.
Appoints Officers
Herbert
tax-
Jones
77
of 24%
iri
over
•
stock
common
the
into
latter
their
at
sold
made Assistant Secre-
r
BEVERLY
or
near
HILLS,
The
and
inflationary
continued
the
_
A,,
T
Gardner Abbott Jrn Opens
prices, indicates the
on
(special to thb financial ohroniouO
maturity value, has been a thorities' defense through restricstreet — at least in the tive monetary policy. Regarding
CLEVELAND
Ohio
—
Gardner
Abbott, Jr. has opened offices in
where the call feature the surmises that a new Secretaiy +v*g Williamson Building to onsase
is present to stop substantial ap- 0f
the
Treasury
"light signify jn a securities business under the
K SifL?®
the interest late.
3
in
5In
age
some
reversal, is the Presidents
comment that he him-
firm name 0£ Abbott & Co,
decisive
this connection,
the
of
faxabkl
U.
S.
the advant- self is and will continue to set
Savings Bond, monetary policy. And there is the
SereThe holders
seen.
L. W. McDonald Opens
BOUNTIFUL,, Utah — Leonard
JlcDonalT'fa "engaging :ta
continuing prospect_of great un-
redemption feature eliminates all certainties in the. Tieasury s rechance of depreciation.
Further, funding and financing operations.
midst the rise in money rates and
the major decline in the bond
market, through the redemption
privilege accorded to the Savings
holder
he
advan¬
take
can
We
redeeming his bonds
re-investing the proceeds in
Monetary
our
the moving
office
to
Market
Plus
20
N. Y.
ASIEL
CO.
&
Members Mew yurk Slock Exchange
Since 1*7 H
addition, through the change in
rates,
is
now
severe
burdened
shrinkage
money
in
the
of
value
his
Our
telephone and teletype numbers
remain the
the
regarding
of
the
authorities'
contribution
of
"Current
to
a
panel
Problems in State
Local
New
■'
Finance," before the City Club
York, May 16, 1957.
-
i
■
.
-
'
/.
Telephone:
be
with the
of
rising
utilization
May's
discussion
attrac¬
would
bonds
the
concerned
*Mr.
same
long-term future, our
importantly
of
STREET
BROAD
New York 5,
the
HAnover 2-5000
/"
■
.
•
-
.<
*,
■ v
May 13, 1957
.
.
:■
a
securities business -from offices at
50 West Fourth South Street.'
1
announce
of
non-Savings Bondholder,
likewise suffering from inflation,
and
::
Calif.—
prospects for a continua¬ Daniel Reeyes & Co. has opened
branch 'office
at" 195- South
tion of the country's boom (even a
if
accompanied by some read- Beverly Drive under the manage¬
ment of Charles W. Burger.
justments, "rolling" or otherwise)
-
one-way
NEW YORK 5, N. Y.
i
a
B.
many cases
conclusion
;
made
New Daniel Reeves Branch
Bearish Factors
continuation of the monetary au-
been
was
was:
and/ Herbert
very
now.
bonds
have
O. Wolfe
Vice-President
-
switch
principal.
Offices in 109 Cities
New
exempts now. The spread between
a
equity investment, the
realizable
write
of
NY Hanseatic; Corp.
;
pressure
But
Merrill Lynch, Pierce,Tenner & Beane
>
•
change in capital value, where the
tiveness
'-r
■
;
to
"• '•
of/the
attractiveness
the
price, there
102% in Iv
to
"
of their present
Complaint is widely voiced over
the
erosion
to
the
purchasing
power
of
the
Savings
Bond¬
holder's
principal, such as the
30% or so over the past decade.
Trading Department
»
'
desirable
1954
in
shrinkage
a
Over
*
District
tary of New York- Hanseatic Cor;:v r: Treasury Bonds and tax-exempts poration ;; 120
Broadway,
New
has narrowed to a point making York Citv
;
'
.
decline from
a
manifests
data
1.' ■,
/The comparison
•?"
2.46
statistical
this.
yield to that on common stocks,
mortgages, savings accounts, and
V corporate bonds, further adds to
J2.82
...
the
of
de¬
1.84%
contrast
In
Red Owl Stores,
''r~s
the
Depreciation
Mayfair Markets
(0 PINE STREET
market
interval.
the
in
or
the
In terms of market
has been
money
with a
Just call
of
3.35
Penn Fruit
Inquiries?
Court for
District
York, has authorized David. I.
Shivitz, Receiver for Barrett Herrick & Co., Inc., to employ B. S.
Lichtenstein & Companyi 99-Wall
Street, New York City; "specialists
in inactive and unlisted securities,
taxable
income
current
2.94
Purity Stores
Inc.
States
Southern
the
S it g er m a n,
Sidney
Judge
United
rises
1956____
Century Food Markets Co.
Lucky Stores, Inc.
As
exempts
1957
Colonial Stores, Inc.
Food Mart,
Barrett Herrick & Co.
the
better
the
for
,1955—. 2.57
invest¬
find markets for—
Alpha Beta Food Markets, Inc.
market
with
sources.
1954—_
number of smaller companies that
a
his
on
1953
.
-
and
might become the by-words of tomorrow.
For
weeks
liquidation
Security Holdings of
other securities.
investors though, "food chains" spell
a
recent
of
Of
may
bearish
and
stronger
obtainable by
super-market giants—
we
The
tage of the better existing yields,
from coast-to-coast.
stores
always,
bullish
To Handle
the demand for funds from other
1947_
Bond
Thought?
people "food chains"
opportunity in
ment
on
economic
lowing tabulation of annual aver¬
age
yields on Moody's 20-year
municipal bonds: V.
Some of this business
automotive companies, but auto producers claim
their orders do not reflect better business. May production sched¬
ules are running 14% above May of last year, but output was
cut back last May in the face of slow sales.
Mostly, they say,
they are plugging gaps in their steel inventories.
over
long-term pitfalls, f.;
B.S. Lichlenstein& 6o.
mar¬
provides a
material ben-
May
extent
pick-up
is coming from
both
action
present-
preciation is evidenced in the fol¬
a
Several mills,
caution
urging
yields on tax
to that of fully
securities, they become
yield, calculable according to his increasingly sought by investors
respective bracket. But to the in- outside the commercial banking as consultant and broker-in the
dividual concerned with pre-ma- system.
We see that the supply liquidation of the securities in¬
turity capital value, as for estate Of money elsewhere is very large, ventory held by the receiver. B.
tax payment purposes, this cur- which as a favorable imponder- S. Lichtenstein & Company have
rent yield benefit can be effaced able usually ; seems
somehow to for many- years specialized in inby depreciation such as the recent turn up. The recent strength of active and unlisted securities.
the tax-exempt market in the face
sharp one in principal values.
taxpayer
Some have
•
in
As
efit
Wilfred
A.
The reason for this is that steel mills are thinking in terms
tj:
'
the varied
reception to some of the
climate. Of new issues, as of the State of Ohio,
course tax
shows
that
in
practice money
exemption market restrictions give way to
Profits in the second quarter are expected to
of the similar 1956 period.
Shipments of
the
future?
elements.
day
those
in
ket
note
the
wbiie
Outlook
What of the shorter-term
unds
disadvan¬
tages in bond
sale holdings were
men
Short-Term
The
investment
While manufacturers' inventories expanded, whole¬
unchanged and retail stocks declined slightly.
January 1955.
confident
in conclusion, we are
about the short-term market out-
While
price level, it would elim¬
inate the progressive deterioration
of the investor's purchasing power.
rateg
compo
the
in^Mtment^a^dsw?
rise in
money
total
than seasonally in March,
month-to-month increase since
more
bonds.
on
existing
holdings from previous purchases,
is progressively discouraging < to
market
of the current
major
return
the long .and persistent
• of
successively? lower
market valuation on
this would place a floor under the
and
attitudes.
The result
little
~
money
individual investor interest
investment* pur¬
long-term
poses,
showing
rates to curb the, ecori-i;
omy's inflationary tendencies; but
with an eventual ceiling on the
of
some
the implications of the municipal
bond markets recent performance
■
both February
one direction. Despite
the fact, that the bonds are bought
for
•
emerging from its lethargy.
that of
running in
May suggests broad investor implications of the market
depreciation in tax exempt bond prices, including contrasts
with other investing media. Cites some comparative advan¬
tages of U. S. Savings Bonds. Listing bullish and bearish
influences, he urges confidence in short-term market outlook
and caution over the long-term, pitfalls.
'The recent upsurge in consumer buying
encouraged many re¬
tailers to revise upward their estimates of sales for the last six
months of 1957, it was reported. Wholesale volume in March was
to
psychological
prompting the investor
to pursue a trend which has been
Mr.
.
;
close
Then there is the
By A. WILFRED MAY*
:
business inventories rose
of potentially new/ as well
outstanding issues overhanging
as
elements
Index
^N:;
tities
the market.
Auto Production
Industry
5
Another depressing factor is the
supply situation, with vast quan¬
Tax-Exempt Bonds—Their
Past, Present and Fntnre
Production
Electric Output
State of Trade
(2277)
Teletype:
NY 1-1110 and NY 1-1111
The Commercial and Financial Chronicle
6
that
Where Do We Go From Here
the
In Housing and
that
Mortgages
lowed
is
personal
my
I
Predicting
I
half
I
J
'
,
stitutional funds.
have
we
greater than the sav¬
was
had,
from
historical
a
have had to learn how to operate
homes
a
for
their
cost, it enabled the under conditions where interest
builders to undertake with con¬ rates are higher.
Many of these
fidence large building projects to. builders will survive, and those
that do survive will learn how' to
provide
these
homes,
and
of
reasonable
a
for
the
all
into
a
in
do
business
the things
job
they
than
did
interest
where
conditions
There
we
the
on
program
some
costly to handle, *
get 4%
or,
AAA Bond, it is hard
handle, not
or
and
when
better
to
on
as
you
a
can
justify taking
a mortgage un-;
approximately a 1%
higher return.
In other words,the return on the mortgage should
less
there is
is
today,
difference
a
rates of the 1920s and today.
should
with
finesse
more
and
approximately 1% higher than.
get on the-Triple A Bonds.;
you can
is
It
for
loans
If this had been done last
sooner.
summer
lot
a
the
of
in-J
in FHA
December
last
rate
been
have
The increase
avoided.
in)
distress
would
months
recent
terest
need;
VA and_
recognized
on
not
was
the
that
unfortunate
higher/return
a
FHA
a
was
anticipate
the
partial answer, but in many sec-*
business .better tions of the country, even 5%
country
when
legislation could fluctuations; in
creasing the dividends paid. How¬ have been passed enabling the than they did 30 years ago. Back FHA loans are
bmng purchased at
ever,
the flexibility is always FHA with an already established in the 1920s the Federal Reserve a discount. I believe the increase"
there, and if conditions warrant, experienced organization to pro¬ was clumsy. That is not the case on FHA loans in December was
they can quickly adjust their divi¬ vide a similar service to the vet¬ today.
I make these statements too late.
:■
s
attract
to
busi¬
surance
failure
been
has
part of
be
though, between the high interest
One
However, I have always thought
the, beginning that the, VA
from
associations and commercial banks,
life in¬
the
it, the trouble in. recent
see
,
easier.
were
not of the main differences, as I see
inflationary.
Federal Reserve
have been set up separately from it, is that the
In many respects the investment this time with the competition the the FHA, or to put it another way, Board has more know-how today
in the management of our money
of life insurance funds and sav¬ savings bank business is now hav¬ I have always felt that it was un¬
ings bank funds and the problems ing between savings-banks, as fortunate to duplicate the facili¬ markets," which I believe means
as
with
entailed therewith are similar. If well
savings and loan ties of the FHA by setting up the that they can today manage things
in
As I
months
,
that rates
"
house.
better
a
under
manufac¬
and
trades
make
who
turers
go
resulted
that
course,
mortgage
anything,
mort¬
on
tween the 1920s and recent months
industrial
our
families; at
vide
decline for short-term rates, life
insurance president opines that: if this comes about, it will
ease moderately mortgage rates*
Mr. Lovejoy believes: (1)
housing decline is due to supply catching up to demand and
will not reverse itself until the 1960's; (2) many builders will
survive the restoration of higher interest rates; (3) VA-FHA
is sounder financing than the old fashioned method, but that
the need for higher return was recognized too late and the
reduced down payment will have little effect; and (4) use
of VA insurance fund for direct mortgage is unsound and
of
yield
be, ,ip jme ,with the
other kinds of invest¬
must
yield on
ments, in order to be competitive
and
attract
savings
institution
funds.
Perhaps I should say in¬
finance
point of view, unusually easy in¬
terest
rates
brought about arti¬
years
the
words,
people to recognize
stantial contribution to our econ¬ ficially. This has spoiled some of the necessity for a spread between
our people, including the builders,
the
return
on
omy in many ways—it made' it
mortgages
and
possible for the veterans to pro¬ who in the last eight to 12 months, bonds; Bonds are easier to service
money
some
we
has made a very sub¬
cent
second
decline of long-term
resulting in
rates, but not as much
>
Thursday, May 16, 1957
..
ings available for investment. Be¬
that is regrettable because
the VA mortgage program in re¬
easing of demand for funds during the
some
1957
of
Historically
to
growth
program is going to be al¬
to expire next year.
In a
way,
President, The Manhattan Life Insurance Company
1920s.
funds
opinion
VA mort¬
the
like
looks
it
gage
By THOMAS E. LOVE JOY, JR.*
|
it
other
gages
the
there
ond,
have
always had high'interest rates in
this
country — the demand for
is now pretty definite
will be no increase in
interest rate on VA loans. Sec¬
First, it
f
.
I
42278)
savings
more
VA mortgage offices all
over
in¬
by
r
have
ness
little
tage in that
can
with
sonable
racy
a
advan¬
we
-
dends down.
accu¬
forecast
can
we
made
available
cumulate
i
for
as
as
There is
to
ac¬
specified
a
no
in
E.
Lovejoy,
Jr.
in
our
approach
to
investments.
YA and F1IA
Future
of principal of in¬
already held—whereas
the savings bank busi¬
Policies
1 suspect it would be an under¬
statement
the
♦An
pay.
you
may
by
That
state¬
,
paradoxical
seem
address
Mr.
Lovejoy
at
before
the 37th
Annual Meeting of the National
Association
of
Mutual
Savings
Banks,
Buffalo,
May
1957.
7,
me
is
we
reliable, it
read
now
in the papers
looks like Con¬
to
VA
say
mortgage
the interest rate
as
well
on
what
as
program
and
VA mortgages,
they
will
do
confusion
has
me
a
little amused
about
at
the complaints
high' interest rates during
or eight to ten months.
the last six
in
been
of
few
a
points, but when discounts
get to be 8 to 10 points, that can'*
seriously hurt the .housing field:
and mortgage market.
I person--
ally don't like such big discounts.
Also, I am not too keen on a
I
raising its dis¬
rather than lead the
hope that
sure
back
never comes
again.- But discount and premium
markets can be expected so long
there
as
pegged rates on FHA
are
mortgages.
Some
mortgage
our
spondents have
will
money
be
corre¬
asked how much
going into the
In thev
mortgage market this year.
of
case
company
own
my
'
'
,
of
ex-:
we
pect to put about the same amount
last
year if we can do so at;
competitive rates. From an over¬
well all
standpoint
the
amount
pf
as
for financing of housing and
money that goes into ithe mortgage:
other
capital expenditures, has
market, that is to say the amount
just been more than the funds
of commitments made to go into
available. By funds I mean sav¬
the mortgage market, will depend
ings: It looks as if this condition
largely upon this question of re¬
funds for plant
will
continue
expansion,
for
some
time
al¬
I
That is
postponed.
for it
some
current
I
can
relieve
will
somewhat
the
Consequently,
signs or I have a
pressure.
some
see
feeling, if
you
want to put it that
like
of funds
Trustees
sav¬
and. life
insurance
companies have a definite obliga-:
tion to invest their funds at the
ings
banks
in keeping
highest rate available
investment principles.
with sound
A short
stretch¬
ing out of this demand for savings
which
turn.
good thing
a
there is
means
as
as
for plant expansion by some large
industrial
companies have been
GROWING
when such discount is a matter of*
premium market for mortgages—
when
market
have
noticed in the
newspapers in the last few weeks
several announcements that plans
GROWING...
bad;
the
though
GROWING,
discount market is not
The
Actually during the past year
the Federal Reserve has followed
the
Actually the interest' rates' for
long-term money today are not
this high in relation to the interest
rates that were prevalent during
resolved.
some
the ground
FHA can provide mort¬ count rate,
gages for veterans.
That is good, market. By that I mean that its
and although there would be some increases
in ? the
discount
rate
lag in time before this feature were made after the market had
could be set up and functioning, already- indicated that such in¬
it may be that in the long run crease was necessary.
this
would t prove to be a very
The reason for our high interest
good thing. I hope this legislation
rate today is that the supply of
or similar legislation is. passed.
savings is not sufficient to take
the demand for capital
Finds Interest Rates Not Too High care of
funds.
This demand
for capital
Now, in some ways I have been
by
Washington in regard to the FHA,
Fortunately for
is going, but they can't stop
swells.
ness.,
"
vision in the law for FHA where¬
T.
well
dividends
ment
what
If
way we
that in recent
ness, although they can estimate months, particularly since the first
fairly accurately the run-off of of this year, the housing situation
and mortgage market have been
your mortgage portfolio, are at all
times subject to the hazard of a quite confusing. One of the major
change
in
the public's
savings contributing factors to the con¬
habits.
On the other hand,-those fusion, I believe, has been the un-;
in the savings bank business have certainty of what would be done
in Washington with reference to
the" advantage of flexibility in the
those
misunderstand
gress is going to pass legislation
change that rate.
So much which will create a
special pro¬
for the similarity and differences
repayment
vestments
at
reserves
Don't
can
during the
coming year—
that
is, new
funds
a
interest rate.
estjment
n v
contract
lifetime
expect to have
erans.
that
have
don't
business
ance
the amount of
funds
We in the life insur¬
fully ^realizing the Federal Re¬
though—our experience has been serve' is the first to admit they
flexibility with regard to our re¬ most satisfactory vwith VA mort¬ cannot create prosperity or bring
serve requirements.
Once we sell gages — the thing that disturbed about depressions. All they can
a life insurance policy, we have me was the wasteful
duplication. do is to influence the way busi¬
rea¬
time
I had the op¬
ago
portunity to go over
dum
forecasting the
saving
available
a
memoran¬
investment
for
of
amount
be
to
expected
funds
1957.
in
interesting because it.
showed that in 1957 there will be
It
most
was
there could be some about
6% more savings available
the demand for funds for investment than in 1956 to
during the second half of this
take care of the demand for capi¬
year.
This should result in some tal
expenditures.
Where
those
easing in the interest rates for funds will
go will depend on the
long-term money. I don't expect
relative attractiveness of the in¬
any material easing on short-term
vestment.
that
way,
easing
rates
of
view
in
amount of
of
tremendous
the
refunding of short-term
.(some
obligations
Housing Decline
billion)
$82
during the next 12 months, plus
the necessity of raising funds *for
the
payment of savings bonds that
This cashing
in of savings bonds has added to
being cashed in.
are
On September 1,1854, more than a century ago,
Erie County
the
the
Savings Bank issued its first passbook.
in
confusion
recent
months—
and we
One year
with
later there
were
When the convention
years ago,
was
a
mis¬
to
make savings bonds
pay¬
able
deposits totaling $346,582.
now
take
3,249 savings accounts
on
demand.
first held in Buffalo, 34
the number of savings accounts had
realize it
was
that
the
Today,
we
have
over
200,000 depositors with
than 300,000,000 on deposit.
of
Here
78,381, totaling $61,363,000.
Looking back at this record
growth is satisfying...but not nearly
the realization that
we are
to
as
satisfying
sharing in the futures of over
ambitions.
We
are
Erie
living for the tomorrows... and still growing!
BANK
Buffalo 2, N. Y.
Insurance Corporation
views
for
the
If
in
regard
mortgage
my
guess
right that there is some sign of
easing
in
long-term
money
rates
during the second half Of the year,
it is my
some
Member Federal Deposit
Co
SAVINGS
is
my
and housing.
market
as
200,000 people...helping them realize their dreams and
are
outlook
the
more
too.
is
to do
to
my
and demand for
housing has
of
have
I
ure
more
with the drop in starts
heard
housing
to
1948
many
as
880,000
the
for
starts
880,000. That isn't
than
The last fig¬
high interest rates.
been
to
the housing
personal view
relationship of supply
regard
it
for
is
1957
bad actually.
so
we
number
had
never
starts.
as
What
I
believe is that since 1948 we have
Easing
grown
in
Now
market,
Prior
Sees Moderate Mortgage Rate
and Mortgage
Volume
that must be done by the Treasury
that there could be
in mortgage rates,
However, I believe whatever
guess
easing
easing there may be will be mod¬
erate, and mortgages must be in
line with the money market.
In
the
building
so many
houses that
has finally caught up
supply
the
the
case,
it is only logical that there
should
be
number
in
demand.
some
easing off in the
new
starts to be more
of
line with
We
may
several
If
that
is
with
the reduced
have
years,
war
babies
ilies
and
this
demand.
condition
for
the crop of
up, form fam¬
until
grows
the demand
Continued
for
on
housing
page
33
Volume
185
Number
5638
.
.
The Commercial and Financial Chronicle j
.
(2279).
in
-r
ril
.v-i;
on
1955
when
the
Federal
Reserve* Board embarked blithely
on its tight
money program. The
*
by
the
V
f
,
f :r
By GEORGE S. GOODYEAR*
'
*
G' GI ^program
r
-the
•ch
President, National Association of Home Builders,
Washington, D. C.
what is
to
as
"going
includes, according to builders' trade head, the indictment that
on
tight
a
discriminate against
.1,200
Mr. Goodyear expresses opti¬
housing's future; declares municipalities are doing
half of their job and that they must spend over $200
housing.
V
If
the next decade; and warns that unless
housing is unshackled, the government will step in to avert
the worst
The
the
of
ings banks has been
mutual
one
Let
earth.
of intelli¬
out
of
sound
afford.
,
That
is evi¬
denced by the
fact that at the
beginning of
being built. :
"gloom and
about
the
-
,
doom"
this
mutual
George S. Goodyear
s
7
held
$18
were *
ingS
sav-
those facts, then
banks
of
which
builders
invested
in
GI
This is indeed
their
under
able record of service to the hous¬
ing needs of the nation. Your
tinuing
willingness
this
Finds No Socialism in Housing
'rji
Mutual
carrying out
helping
hpusing for all
now,
well
a
free
provide
so¬
good
our people.
Until
this responsibility has been
met.
years
to
—
of the
one
basic responsibilities of
ciety
-
-
savings banks have had
share in
a
^
In
a
short
span
of
12
since World War II, America
has become the best housed nation
;
*An address by Mr. Goodyear before
.the 37th Annual Meeting of National As¬
sociation of Mutual Savings Banks, Buf¬
falo, N. Y., May 7, 1957.
'
^
: ;
*
*
the
,
conditions
that
have
industry over the
Let me say for
building industry that
we,have unbounded ^confidence in
,
believe this
we
of
millions
of
v -•*-
About
getting
we
dollars
for
to
house
them.
population will hit
193,000,000
By
a new
there
and
1965,
high
will
be
"postponing" of the storm. If
home building is not unshackled
the 1960's will
see
the worst
housing shortage in all our his¬
tory. We will then witness a real
paradox of plenty. In that age of
'
travel, miracle drugs, syn¬
jet
thetic
foods,
and
push-button
prosperity, we will be the bestdressed, best-fed, healthiest and
fastest-moving
nation
of
tentdwellers
know
earth.
on
we're
Of
course,
we
not
act.
Democracy^
build those homes—and
-provide
private financing for them—pejrhaps at a rate of 2,000,000 new
homes annually—then the govern¬
ment will do the job. It's up to
us,
here and
to act before time
now,
that
and
annual
crop
of 4,200,000
babies force the
new
government
to take
over
completely. Then our
great housing industry, the builder,
the lender and the manufacturer,
truly will be subsidized and so¬
^
cialized.
are
new
later
or
less than nature, abhors a vac¬
If private industry cannot
uum.
is
It
for those
national
in
association took
Administration
enable
of
us
to
housing
the
American
pr6posals ' covered
,
,,
long
the policies of
and
to
.
.
points.
First
interest
an
rate.
not yet
fit to
seen
Second
major
increase in the GI
The
Congress
revision
a
of events,
delay, disagreement
do-nothing, that have led
our
are
sequence
and
schedule, and third
present state.r All of you
well
duction
us.
aware
began
that housing, pro-
to
slide
.
■-■
.
.'
„
..
„
Those
market.
latter
solution of our immediate financa
look
.
000,000 Americans of 1965 will not
live
quietly in inadequate hous¬
ing while private industry shrugs
its shoulders and passes the blame
not the full
to the blunders of the 195Q's.
needed
question will
not
be:
Is
The
there
Charges Discrimination
Those
a
legislative
measures-are
answer.
There also is
recognition by
a
ahead
to
that
being
*
the
housing progress of the past
and all the hope of the future can¬
not
and
away
must
not be lightly
KRONER:
ROMMEL3
vtCKERS3
KE6EIMAN4
President
Asshtont Vice President
-
I must say
bluntly that we
*
Continued
on
('.V
.
SMYTH
Assistont Vice President
Vice President
Vice President
You know
~
men
our
distinguished Trustees. Also well worth knowing are the
five offices. Each of these men is a banker of
Savings Bank
who manage our
outstanding ability and experience, whose
problems of
a
years
of intimacy with the
NEW
YORK
CITY
large community add substantially to the value of the
services rendered at East River.
Member Federal
A
OF
AMERICA'S
LARGEST
AND
OLDEST
5 Thrift Corners in New
<!)26 Cortlandt St.
<2)55 John St.
TVAINSTITUTION
I.
Deposit Insurance Corporation
EAST RIVER SAVINGS BANK
ONE
17
\1
SAVINGS
BANKS
York
<3)60 Spring St. (4)41 Rockefeller Plaza
(5)743 Amsterdam Ave.
Member Federal
cast
in the name of "credit con¬
created
*<,,,'
high¬
monetary
and ' other
these
are
our
authorities that all
est
breathing spell in which to
downhill*, problems
pro¬
,
ing problems will really only give
us
two
going to live in
posals will, I am confident, be
tents.
'
:/■:•/-•//. "'
'
weighed carefully bv Congress and
You and I know that will not
will be acted upon during the cur-:
be allowed to happen. Those
193,- rent session.
..
,
enlarg¬
ing the capacity of FNMA to do
part in stabilizing the mortgage
its
*
.
mod¬
ernization of the FHA down pay¬
ment
Let's not fool ourselves. If pri¬
recreational facilities, sewers, watrol."
ter and all the other complex vate industry defaults on a social
services needed by our expanding responsibility, government must
population.
h^dustry is fully aware -that
has
along with
go
.to get to work on them now. Our
in
people
Our
three
We know that local governments
a vibrant strength that
throughout the Upited States will
let nothing halt, jte growth, have to spend
morefthan *280 WlBut there is a .vast gulf-between
bon
provide thes^ services over
gloom and doom
and the blunt/the next 10
year$u-;At their curtruth about what .is going on in
rent rate of spending, they are do¬
housing today.
ing less than half the job. And the
dangers will multiply if we fail
Blames the Federal Reserve
will not attempt to review
to
job
our
and in the years ahead.
now
us.
proposals
get on with
wiH
I
our
the lead
presenting to Congress and to
the
nation has
detail the
that
reasons
;.
vbaued'
I
homes
now,
Kensington, Maryland—a research
,
•»
are
and
home buyers.. We are demand for housing? It will be:
Who is going to build the housing
concerning ourselves all over the
and how is it to be financed?
country with the vast and growing
problem of community facilities—
Predicts Housing Socialism
the provision of schools, streets,
years.
the future because
hammer.
couples
year,
of1 American
their
two
each
no
'house
are eternal optir
They could not be other-
the
young
of
Home *'dr.eds
nature
very
to
the. home
market is. most welcome &>. us .in
the home building industry/\ "
:
by
harassed
past
con¬
toVser/e
the: truth.
married
our
Research Projects
wise and continue to build homes
FHA
and
commend¬
a
certain' circles
from
1,600,000
are
caused them have been corrected.
.
profession
mists.
billion
$12
further
and
joining the
speak out until the policies which
■
embodying new materials
refer to home builders as prophets- and construction techniques which
of gloom-and doom. Nothing could ; one:day, we hope, will save hunbe
*
* "
this :country
billion worth of home
mortgages,: of
loans.
the
year
carpenter's
^
to
or
in
1965,
two years and we will continue to
•
month's, it has become
fashionable
until
family each year. Wed¬
are ringing louder than
crisis; but the crisis of the future .weeks,' we have started work on
that confronts us today.
*'7 >.7^7+^e^out,«4drts of the: capital—in
In recent
reach
not
American
_-
concern
would
ding bells
a
a
There
people in America
today, a level which the experts
only -10 years ago predicted we
producing fewer than 900,000
me
Socialism
leaders.
our
170 million
are
needed
are
with^ ; But our concern here is not with
subsidy through ,the
t
We in the home building
unique
mortgage financing
partnership between industrv are
oud of the
t w|
*pattern that government and free private en-have pl
d in providing; good
will-make it terprise.
Mutual. savings banks;
housing for our feiiow citizens,
possible for have had a hand in that achieve-:We intend to do a
job in the fo¬
increasing ment, and all have sharedTm .the ture that will
give us equal cause
numbersof unprecedented national prosperity
;f6r pride. We are going forward
our
people to which made it possible.
a.r •
with vital research projects, that
attain home
Consequently; I am certain that will enable us to produce more
ownership on bankers are deeply concerned with -and better
housing in the years
terms they can
the crisis—not alone the present ahead. / Within
the past several
gent concern for the development
fhe vision of
plead guilty. We have
been speaking out about them for
<
.
Our
future, but which
is
emphasize that
this has been accomplished
on
sav¬
Make no mistake about it.
sooner
no
f '■
,
babies
I'll have to
housing shortage in our history. Advocates a better
FHA, lower down payments, and castigates the
reappearance of secondary mortgages.;
record
it
speak out
FNMA and
>
not
are
our
•;
•
4,200,000
homes that
new
and for the
now
.
billion to catch up in
'
With
that passes, our housing
inventory is depleted by another
•r
mism about
less than
dependent
are
every day
in 1955, which is said to
money program
of
-• "
_
population is growing faster than
Industries which
Workers have been laid off.
housing declined when the Federal Reserve Board "blithely"
embarked
helped spark
housing boom \
; jon housing have cut back produc¬
tion, of materials and equipment.
in housing today"
on
which
postwar
is dead.
:
'
The blunt truth
great
growth
r
"V- ».r ■
*
Warns of Housing Shortage
•
f
explosive
'country.
,7
Deposit Insurance Corporation
page
26
8
The Commercial and Financial Chronicle
(2280)
Corporation—Analysis—Sincere
Salle Street, Chicago 4, 111.
Crescent
South
to
send interested
231
t *" *
?!
*
Building, Detroit 26, Mich.
Douglas Aircraft—Analysis—J. R. Williston & Co., 115 Broad¬
General
Recommendations & Literature
Jt is understood that the firms mentioned will be pleased
Thursday, May 16, 1957
.
scot
way,
■
•
.
Industries—Report—Moreland & Co., Penob¬
Detrex Chemical
Dealer-Broker Investment
Company,
and
La
.
New York 5, N. Y.
Motors Corporation—Analysis—R.
Milwaukee, Wis.-
North Water Street,
F. Newman,
735
.
Great Northern Gas Utilities—Report—Gairdner and
Company
'■I; Limited, 320 Bay Street, Toronto 1, Ont., Canada.
\
Co.—Data—Joseph Faroll & Co.,
Harbison Walker Refractories
parties the following literature:
Broadway, New York 6, N. Y. Also in the same bulletin
are data on General Refractories Co.
29
International Breweries, Inc.
Atomic Letter (No. 26)
— Comments
on Atomic Fund's stock
dividend, British buying of Canadian uranium, Metal Hy¬
drides, Inc., Kerr-McGee Oil Industries, Inc., General Tire
and Rubber Co., Dominion Magnesium, Ltd., and Lindsay
Chemical Company. Revised Reactor Diagrams now avail¬
able—Atomic Development Mutual Fund, Inc., Dept. C., 1038
30th Street, N. W., Washington 7, D. C.
■;
Npw York
Lockheed
—
N
*V--
■■.
"V-
—'Herbert
t*8-.r-
port
Association
,.,^-A
1107
Current
information
—
Maracaibo
Oil
E. Stern & Co., 52 Wall Street,
same bulletin are data on
American
&
Co., 36 Wall
Also available is a bulletin on
Rohr Aircraft
Company
Stocks
—
Fifth
annual
adition
with
cal
Sangamo Electric Co.
115
showing an up-to-date comparison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
randa
Quotation Bureau Averages, both as to
performance over a 13-year period — V
Bureau, Inc., 46 Front Street, New York
&
an
—
on
Engineering Company—Bulletin—Eisele & King, Libaire,
Broadway, New York 4, N. Y.
'
Corp.—Analysis—Alfred L. Vanden Broeck
Co., 55 Liberty Street, New York 5, N. Y. Also in the :
same
bulletin is an analysis of Canadian Industries, Ltd. *
(Special to The Financial Chronicle)
ST.
Evans
and
James
become
R.
Whitaker
York
and
Research
of
the
Stock
Natural
the
department.
Joins Harris,
Wayne Keller—Mc¬
Street/New York
'
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City Guide and Alma-
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nac
1
(soft cover)
$2.75;
"i
PHILADELPHIA,
Pa.
monwealth Securities
been
formed
Street
securities
William
with
;
(published in English)—cover¬
ing various phases of the Jap¬
economy—$10 per year—
Oriental Economist, Nihonbashi,
anese
Tokyo, Japan.
*4
1957
engage
Officers
1220
in
a
are
L.
Miller, President;
Simons, Secretary-
Harry A.
Mr.
Mr. Simons
Miller
was
for¬
with Allen Beers
was
.
.
—
Commerce Clearing
Fifth Avenue,
522
Inc.,
New York 36, N. Yr$1.50." " "
Profits—^Something for
Co., Inc. has
to
business.
.
.
Partnership Income Tax Guide—
Com¬
offices at
Everyone
—Chamber of Commerce of the
United
D.
C.
Washington
States,
Week—A
Work
Shorter
Bibliog¬
raphy—"Selected References"—
Industrial Relations Section,
Princeton University, Princeton,
N. J.
Tax
(paper) 20 cents.
Reduction
and
Tax
Reform:
When and How—Committee for
& Co.
Economic Development, 444
With
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New
Stock
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ESTABLISHED 1894E
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Trading Markets in—-
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3, 111.
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Craig Systems, Inc.—Analysis—P. W. Brooks &
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Fftlir .Inilt
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New
State
Commerce,
of
of
New York
—
&
of
Victor R. Fuchs—Columbia Uni-
versity
pany, 207 East Michigan Street, Milwaukee
2, Wis.
available is a memorandum on
Zapata Offshore Co.
Steel
Gulf Oil Corporation and United Electric Coal
Companies.
Cedar Point Field Trust—Brochure—Gruss &
300
Products, Inc.—Analysis—Stanley Heller &
Co., 30 Pine Street, New York 5, N. Y.
' '
^ v
Three States Natural Gas—Circular—Western
Securities Cor¬
poration, 1 Exchange Place, Jersey City 2, N. J.
Stout & Co., 50
30
York
York
New
—
on
Economics
Electric
Wisconsin Bankshares
New
—
—
analysis
(paper)
Incorporated, 20
Inc., Mercantile Bank Building, Dallas 1, Texas.
,
Worth-
Organizations
State
Department
;
Corporation—Analysis—Kidder, Peabodv
Co., 17 Wall Street, New York 5, N. Y. Also available is a
Sylvania
Rates
Foundation,
■f State Street, Albany 7, N. Y.,
Model, Roland &
Veno Company.
Sulphur Exploration Co.
Analysis
Toll?—Analysis—Harris, Upham & Co., 120
Broadway, New York 5, N. Y. Also available is
of U. S. Vitamin Corporation.
York
on
memorandum
-
or
Business
Life Insurance Co.
Memorandum
Dallas Union
Securities Co., Adolphus Tower, Dallas
2, Texas. Also avail¬
able is a memorandum on Southwestern Life
Insurance Co.
Standard Packaging
by institutional r
t; investors—Harris, Upham & Co.,
120 Broadway, New York
5, N. Y. Also available are reports on Stone & Webster, Inc.,
The Texas Company, and Viek Chemical
Company.
Tax Exempt Bonds—Discussion of their status and
prospects—
New York Hanseatic
Corporation, 120 Broadway, New York
5, N. Y.
.,/•--•/
Tax
Plaza,
20, N. Y. (paper).
;
Stone, 120 Broadway, New York 5, N. Y.
Pocket Guide—Discusses 20 stocks most favored
Surtax
—
Rockefeller
Corp.—Memorandum—Goodbody & Co.,
Southland
;
High
while
—
—
4, N. Y.
Television: Free
-
Stearns Manufacturing Co. and Tyler
Refrigeration.Siemens & Halske A. G.
Memorandum —
used in the National
market
Are
Broadway, New York 6, N. Y.
Schenley Industries, Inc.—Report—Thomson & McKinnon, 11
Wall Street, New York 5, N. Y.
Shatterproof Glass Corp.—Memorandum—Wm. C. Roney &
Co.,
Buhl Building, Detroit 26, Mich. Also available are memo¬
Over-the-Counter Index—Folder
Technical
10700 Puritan Avenue,
Detroit 38, Mich, (leatherette)
members $5; non-members $10.
Memorandum
Bacon, Whipple & Co.,
Street, Chicago 3, 111.
San Jacinto Petroleum
folder explaining func¬
ASTE
—
Engi¬
Techni¬
Papers,
—
—
135 South La Salle
tioning of Oil Division in the Trust Department of the Re¬
public National Bank of Dallas—Republic National Bank
of Dallas, Republic National Bank Building, Dallas 1, Texas.
and
Blair & Co.
Papers
Tool
of
Collected
annual
neers
Clark, Landstreet &
Kirkpatrick, Inc. Life & Casualty Tower, Nashville 3, Tenn.
Sandy Hill Iron & Brass Works—Analysis—John R. Boland &
Co. Inc., 30 Broad Street, New York 4, N. Y.
figures on 21 companies—First Boston Corporation, 15 Broad
Street, New York 5, N. Y. City Bank Stocks—First quarter analysis of 13 New
York City bank stocks—Laird, Bissell & Meeds, 120 Broad¬
way, New York 5, N. Y.
National Quotation
—
Broad Street, New York 5, N. Y.
Sabre-Pinon Corporation — Analysis
New York
Oil Property Management—Illustrated
Memorandum
—
Society
\
Engineering
America, N. T. & S. A., Municipal Bond Department,
Montgomery Street, San Francisco 20, Calif.
Street, New York 5, N. Y.
Square D Co. and on Anderson Prichard Oil.
Life Insurance
America,
Street, N/ W.,
D. C. (paper).
Washington,
Riverside City High School District Bends—Circular—Bank of
Yamaichi Securities
Play—Bulletin—Bache
of
Also in the
5, N. Y.
of New Hampshire—Analysis—A. G.
Co., Incorporated, 60 Broadway, New York 4, N. Y.
Puget Sound Pulp & Timber Company — Analysis — Pacific
Northwest Company, Terminal Box 3686, Seattle
24, Wash.
Riegel Paper Corporation—Earnings statement—Riegel Paper
Corporation, 260 Madison Avenue, New York 16, N. Y.
Co., Ltd., Ill Broadway, New York 7, N. Y.
Trans¬
Sixteenth
Becker &
Wall Street, New York 5, N. Y.
Figures
1957—Air
v•/
•
Public Service Company
Field—Analysis—Newburger, Loeb & Co., 15
Broad Street, New York 5, N. Y.
Insurance Stock Survey—Annual comparative analysis of 108
of the leading insurance companies—Blyth & Co., Inc., 14
Firm
r.
;
Pioneer
Missile
—
Edition
Wall
Mosley Co. Inc., 1500 Walnut Street, Philadelphia 2, Pa.
Natural Gas Company—Circular—Eppler, Guerin &
Turner, Inc., Fidelity Union Life Building, Dallas 1, Texas.
Polymer Corporation — Study — A. G. Edwards & Sons, 485
Lexington Avenue, New York 17, N. Y.
Monthly investment letter— Burnham and
Also avail¬
pictures—Chesapeake and
Ohio Railway, 3809 Terminal Tower, Cleveland 1, Ohio.
Japanese Stocks
Transport Facts and
18th
40
Philadelphia Life Insurance Company—Analysis—Suplee, Yeat-
Chessie & Her Family—Portfolio of
Bethlehem
Co.,
Company—Report—Loewi & Co. In¬
corporated, 225 East Mason Street, Milwaukee 2, Wis. Also
available is a report on Hamilton Manufacturing Company.
15 Broad Street, New York 5, N. Y.
able is current Foreign Letter.
Barnes
Air
/
&
man,
View
Company,
yield
Data
-
Northern Pacific.
Northwest
,f Electric.
Lake
—
New York
-
York 8, N. Y. Also in the same issue are surveys of Central
& South
West Corp., General Public Utilities and Union
Guided
Winslow, Cohu &
—
'
Boron—Survey—E. F. Hutton & Company, 61 Broadway, New
Burnham
Analysis
—
Stetson, 26 Broadway, New York 4, N. Y.
Company—Analysis—Glore, Forgan
Kellogg
LONG
DISTANCE 421
C.
with
Co.,
Volume
Number 5638
185
.
.
The Commercial and Financial Chronicle
.
quarter figures
prediction.
Confident Capital Market
Is Onr Common Good
Cause
Z'-V:
criteria for
a
effect
be
many
goal; that keeping it free and
fident
is
our
con¬
job
common
and
and
desire.
The objective may be achieved
and maintained by a continuing
Returning swing towards greater equity financing is reported
?
by Mr. Hastings, based
upon
first quarter 1957 returns
compared to debt issues comprising 75% of 1956
as
:
effort by both the regulators and
the regulated.
Z
"Z
security
new
offerings. The year-old SEC member provides data to support
"regulation statutes have proven beneficial"/
"
James
his view that the
in terms of
>
capital formation. Estimates that registered securities, which
were $6.4 billion in 1951, will reach $15 billion in 1957, and/
-
Zz >;•/
capital formation.. We
and Exchange
Securities
the
at
like
Commission
paramount
feature of
think that
to
a
'
-
Z
:
plans to spend a record 37.5
billion on new plant and equip¬
ment in 1957.
This amount is
over
2
billion, or 6^%, above the alltime high established in 1956.
Business
our
the mandates
capital expenditures,
accelerating as they are, need ever
increasing new investment money
since retained earnings alone can¬
of
not
job
—
we
administer
the way
Congress
laid
down
by,
stat¬
security
utes
proper
with
C.
Ohio—James R.
has - become
associated
J. Devine & Co., Union
Commerce
was
Building. Mr. Ruffing
formerly
trading
in
Mericka &
corporate
.
of
Wm.
J.
Co., Inc. ZzzZ^zz
panel.
On
Levitt,
Comptroller of the State of New
and
Finance."
Local
June
1
Francis
J.
the
New
York
City, members of the
New York and Midwest Stock Ex¬
change.
Mr.
firm's public
ment.
Stephan is in the
utility bond depart¬
^://'
...
Fol¬
Form Sees. .Trading
DALLAS,
Texas—Securities
Trading Co. has beenformed with
Wilfred May of the "Commercial offices in the
Fidelity Union Life
and Financial Chronicle," former Building to engage in a securities
business. Clyde L. Garrett is Pres¬
special economics expert to the
ident and Treasurer, and Neil
Securities and Exchange Commis¬
Brans, Secretary. Mr. Garrett was
sion, and Raymond Trigger, Editor formerly an officer of Garrett
of "Investor Magazine" and Man-. Bros., Inc.
..
7
This announcement is not
•
J1*'
•
V
L
:
offer to sell or a solicitation of an offer to buy these securities•
offering is made only by the Prospectus.
an
The
expansion!
'*+■
,
:1^4
:
and vigorous ad¬
If that
ing
Commission, I believe, is play¬
a vital part in the necessary
confidence is
sustenance
of
there, the free
capital mar¬
which is
kets
will
capital by business.
tain
$15,000,000
necessary
health
and
the
to
sus¬
Earl
growth—
they
F.
The
to meet
increasing
the
seemingly
demands
of
ever
business
It goes without
tal formation is
ity.
our
There
Federal
saying that capi¬
tremendously im¬
economic prosper¬
is
nothing
securities
in
laws
the
designed
to hinder
or impair the raising of
As I said. I have been at
capital.
the
Commission for
after
having been
a
over
I
and
a
year,
State Securi¬
ties Administrator for
years,
full
some
principle
L
process.
have
t
>
as you may
such
to
get
which
dence.
In
to avoid it, in a
this
as
into
under
always
statistics.
Securities
of 1933 for sale to the
ing
fiscal
1956
registration
Act
public dur¬
consisted
981
of
covering
statements
the largest
dollar amount of
new
issues of corporate securities—13.1
billion—of any period in the
mission's
First
history.
This
Com¬
compares
with 11 billion of issues
registered
during fiscal 1955 and 9.0 billion
of
new
corporate securities for
has
«
Price 102.046% and accrued interest
aid in
confi¬
connection
the
is
continuously en¬
eliminate as far as
Succinctly, what I
that
the
worked
The
registration state¬
ments filed with the Commission,
having a dollar value of 15 bilion,
and the estimate for 1958 is 1,190,
having a dollar value of 17 billion.
Compare this with 1951 when the
dollar value of securities regis¬
tered
was
6.4 billion.
So, from
1951 to estimated 1958, 6.4 billion
vs.
1,085
17.0 billion.
The gain in corporate financing
in 1956
as
compared with 1955
was
due to increases in the amount
of
both publicly offered and private¬
ly
placed
securities.
record 7.1 billion
was
In
1956 a
offered pub¬
licly as against 6.8 billion in the
preceding year.
As to business
capital expenditures, final figures
for 1956 show total expenditures
of
35.1
billion, with every major
participating in a 22%
rise from 1955.
By way of justi¬
fication
for
statistics,
this
in¬
industry
crease,
of
one
recorded,
was
the largest ever
within 1% of the
figure projected by business in the
survey
♦An
the
a
year
by
Group,
address
Texas
Association,
ago.
Business
Texas,
Api il
1957.
in
Mr. Hastings before
Investment Bankers
Dallas,
may be obtained in any State in which this announcement is circulated from only such
undersigned and other dealers as may lawfully offer these securities in such State.
Prospectus
of the
Z-v-'vZV' *Z
.;Z;
•■/'/";//Z:ZZ
..
Z
Z
'
•
our
economy
HALSEY, STUART &. CO.
have
benefit
investor,
the
of
laws
the
to
saying is
am
securities
well
business,
of
/ R. W. PRESSPRICH A CO.
and1
in gen¬
&
BAXTER
.'JO /'
•>v-'
Of
it
course,
the
has
taken
It
statutes.
has
more
taken
THE
INCORPORATED
their
with
These
administration.
things, the law, the vigor¬
22,
& COMPANY
FREEMAN
industry that has co¬
operated under the securities laws
and
Z
FIRST SECURITIES CORPORATION
May 16. 1957
.
Z
''
:
GREEN, ELLIS A ANDERSON
SCHWABACHER &. CO.
THOMAS L COMPANY
•
the cooperation of
industry with those that ad¬
industry,
ous
that
minister
within
the
the
the
laws,
protection
ven
into
that
has
tinue
to
means
intricate
an
investor
of
these
become
laws—they have all
wo¬
structure
000,Z;/!:ZZ:ZlfMZ
002,4$
•7
provided and will con¬
provide, I am certain,
of adequate capital for¬
Missouri Pacific Railroad
Admittedly regulation has
irksome
features,
as
you
well
Equipment Trust, Series H
know, but these must be carefully
weighed against the benefits pro¬
vided.
In balance, as I say, the
regulation
have
statutes
41/2% Serial
proven
beneficial.
Some
phasize
that
in
on
the hori¬
To
point out and em¬
1956 debt issues,
To be
particularly those of manufactur¬
ing companies, accounted for vir¬
tually all the increase in the ag¬
gregate of new security offerings.
They point with varying amounts
alaftm
to
fact
the
1956 financing was
that
and
25%
The
sues.
have
was
reasons
that
75%
this
note, however,
that
the
that
the
the
uptrend.
3^2
of 1957 may well
equity
ratio
equity
on
an
The pendulum seems to
moving back towards
financing
if
greater
these
4.40%
1961-72
4.50
The
of these Certificates are subject to authorization by the Interstate Commerce Commission.
Offering Circular may be obtained in any State in which this announcement is circulatedfrom only
such of the undersigned and other dealers as may lawfully offer these securities in such State.
HALSEY, STUART
R. W. PRESSPRICH &. CO.
DICK &. MERLE-SMITH
•
FREEMAN & COMPANY
CO. INC.
-
WM. E. POLLOCK &. CO., INC.
and
mark
is
I960
4.25
Issuance and sale
of financing for
billion
4.00%
1959
before concluding
the first quarter
reach
dividends by endorsement by
ratio
a
amount
|
1958
of
the
economists
wide range of
diversity of opinion, and I am not
going to add to or comment upon
that here today. I should like to
analysts
$280,000 annually June 1, 1958 to 1972, inclusive
guaranteed unconditionally as to payment of par value and
Missouri Pacific Railroad Company.
by debt issues
by equity is¬
for
mature
MATURITIES AND YIELDS
permitted
the
and
Equipment Trust Certificates
(Philadelphia Plan)
shadows
see
when they
zon
be
J. BARTH & CO.
WM. E. POLLOCK &. CO., INC.
ILLINOIS COMPANY
a
vigorous
of
HIRSCH & CO.
BACHE A, CO.
&, CO.
INCORPORATED
than
its
INC.
SALOMON BROS. L HUTZLER
WEEDEN
COMPANY
eral.
needs.
Registered Securities
In 1957 it is estimated that there
be
May 1,1987
in
assisted
mation for business and economic
will
Due
Dated May 1,1957
Laws Have Worked Well
a
fiscal 1954.
Gain in
Mortgage Bonds, 4 %%Series due 1987
principle,
deavoring to
possible the fringe operators and
the
illegal
operators
frohi the
market place.
; V
/, i
you
some
the
this
Commission
therefore to
The number of corporate security
issues registered with the Com¬
mission
disclosure
Light Company
that
helped
helping—and do not harm
impede the capital formation
Try
Operators
gaining, and continues to
sustaining,
that investor
seven
convinced
am
these Federal statutes have
subject
Florida Power &
the "truth in securities" idea, has
become a part of the securities
—are
or
Illegal
and
confidence
prerequisite
of that new
flotation mechanism, and it is this
expenditures.
portant to
investor
acquisition
Fringe
Hastings
and grow
must
a
first
SHEARSON, HAMMILL &. CO.
May 9, 1957
Stephan
will be admitted to partnership in
Vilas
&
Hickey, 26 Broadway,
Mr. Levitt's address, the
subject will be analyzed as viewed
by the financial community by A.
.
of
burden
the
department
on
Arthur
ministration of the securities laws
confi¬
dence.
entire
market,
and
Through
fosters
—
that
the
carry
plant
Ruffing
Honorable
lowing
'
v :
CLEVELAND,
turn
Raymond Trigger
The
State
G. J. Devine & Co.
V^(Special to The Financial Chronicle)
yZ...v, -//'/V v..;-.Z,y
$17 billion in 1958.
is the cor¬
Investor confidence
nerstone to
Ruffing Joins
fostering investor confidence—the cornerstone to
"Investment
Dealers'
York, will address the City Club
of New York, on Thursday, May
16 at 8:30 p.m. at the Harvard
Club, 27 West 44th Street, on the
subject of "Current Problems in
„
Editor of
9
Digest."
City Club on
State, Local Finance
F. J. Sfephan to Be
New
York
State
Comptroller
Arthur Levitt, A. Wilfred May
Vilas, Hickey Partner
length, but we know,
all, that a free, confident
capital market is our common
'
i,
aging
To Address
ar¬
above
/. v//, ;..Z
By EARL F. HASTINGS*
Commissioner, Securities and Exchange Commission
and
are
gued .at
'
•kv;-r
(2281)
McMASTER HUTCHINSON &. CO.
!
'
■'
■'
■■■■
■
■;
.
.
Meeting
tation.
.
With New
Agricultural Dimensions
EZRA TAFT BENSON*
By HONORABLE
*■
During the 19th century came
cle.
plow, the reaper, and the
the steel
Then
drill.
improved
came
In
\
concluding that the fr6e enterprise system is the best
economic structure for farm operation, Mr. Benson reviews the
transportation, the internal com¬
bustion engine, and electricity. By
the time of World War I, the rev¬
olution was accelerating. Disease
I
problems agricultural technological advances have created and
outlines the policies designed to accommodate the necessary
control, plant and animal nutrition
and refrigeration moved forward
1
adjustments.
j
{
During World War II the
reached the explosive
rapidly.
The Secretary notes that 1956 farm income in-
while seeing that
we
abundant
debt.
verged at this stage, such as the
application of the science of genet¬
ics to crop and livestock breed¬
When, many
hence,
years
had
there
few
been
ing,
consequence
•
writes the his¬
two
of the
Century,
The
20th
he
will
that
say
this
even
ognized
was
tool
for
agriculture
in
Egyptian
Pharoah's
the tifrie when
could
time
have
rec¬
practically
every
farm
by American colonists.
used
revolution
struck
since Bible times.
agri¬
and
essing, and
will
revolution
18th
19th
and
of
Centuries.
interpret farm issues of the
ent
wisdom
made
pres¬
the basis of whether
on
dimension
new
farm
in
the
or
field
of
that
do
we
their meaning.
revolution
well
be
in
called
are
not
so
fully
close
to
was
perceive
the
Great
might
City,
blind spot in
29,
human history.
daily bread"
in
blades
of
dramatic
came
their
turned
men
of
acreage
interests
Mendel
gave
1957.
us
the
Austrian
of
allotments and marketing
tried. Despite these
total farm pro¬
duction has continued
and last year
reached
to increase
all-time
'
It is impossible to legislate scar¬
city under our free enterprise
biologist,
monk
fears
consequence
The
efforts, however,
agriculture and bi¬
French
increased,
the
to
as
quotas were
ology: Liebig the German chemist,
the
production
put of various crops: among them
changes.
an
high.
who
the science of genetics.
first
offer to sell
an
The
or a
solicitation of
offer to buy these securities.
an
offering is made only by the Prospectus.
Number
widely
is
to
disseminate
fruits
of
these
one
the
'
The
revolution
far ahead
as
is
that
the
level of material welfare here and
abroad.
was
The
revolution
to
belief
is
can
ceive
its
advantages
and
ioned when the advances
to
possible explanations for
unsatisfactory farm prices, there
technical
is the
many
few
are
difficult
so
hend,
so
peal
or
lacking
4
dividends,
a
to
in
compre¬
popular
barren
of
■>
rev-
a
to blame
easier
politi¬
person, or a program, or a
cal party!
the
of
delusions
popular
of the day is
that farm prices are
Washington.
It is true
passed in Washington
can
exert a helpful influence on
prices of farm products. Certain¬
ly wise laws Can reduce the fluc¬
tuations in farm prices.
But if
prices are supported considerably
in
made
that
laws
and
continually above the levels
and consumers
through the mar¬
ket machinery, then, ultimately,
trouble develops.
Buyers turn to
where .producers
would set them
substitutes
or
other
to
sources
of
supply, production responds to an
incentive
price rather than
to
market needs, and the warehouses
unwanted
goods.
best make the
Agriculture can
adjustments
called
for
of
all
the
people
and
noj
need
This ig
feare(j
in
effect,
a
blessing. It willingly accepts the
challenge to deal boldly with new
forces. 1 It is an optimistic, not a
tired
or
fearsome
a
or
The reactionaries of agricultural
are those timid and
apprehensive people who fear the
fruits
of
advancing technology.
They would meet the problems of
technological
a
revolution
to fight a depres¬
strict production
controls,
price supports, government
domination
the
marketing
involvement
of
of
heavy
process,
government in the role of decision
making.
Rather than risk the dif-
ficulties
of
learning to live with.
abundance, they would attempt to
create artificial scarcity.
<
The
liberals
so-called
have
always
in
tyranny
over
need
not
Basic
of
the
mean
has
that
loss
of
changes in legis¬
accomplished
the
indeed
the
abun¬
be
cannot
zation
in
and
developed
processes
of
Class
the above shares
Common
Stock
The Rights will
The
any
several
or
A
on
Common
the
Stock and
basis of
Common
Stock
one
Common Stock
such share
held,
as
more
to
have
agreed,
subject
to
for
certain
on
May 27, 1957.
conditions,
to
change
and
then
Stock
as
more
fully set forth in the Prospectus.
SUBSCRIPTION PRICE TO WARRANT HOLDERS $12 PER SHARE
•■'.■•yv •' ■ V
third
logical
of
169,733
shares
of
Class
A
Stock—129,733
shares
being acquired
through exercise of rights purchased by tbe underwriters from principal stockholders
and 40,000 shares being purchased by the underwriters from .certain of said stockhold¬
ers—is being offered to the general public by the underwriters, as more fully set forth
in the Prospectus.
OFFERING PRICE TO GENERAL PUBLIC $14 PER SHARE
-
be obtained in any State only front such of the several under¬
the Prospectus and others as may lawfully offer these securities in such State.
may
been
May 16, 1957
Meeting Abundance*
Number
two
among
our
ob¬
jectives is to protect farm people
from
the
sometimes
their
of
quences
Never
harsh
own
conse¬
abundant
:
before
have
the
people
diet,
of this country had so good a
to
bought with
their
of
so
reasonable
incomes.
For
share
a
this
they
Sometimes the very abundance
that
our*
farm
people
produce
more
works
a
times
our
serve
people.
As
fiber.
.
,
farmers
have
grown
fewer farm
to
supply
our
people
our
food
are
and
A
century ago, one farm
worker fed himself and 3 others.
Johnson, Lane, Space & Co., Inc.
be
grateful
working,
cient
farm
resourceful,
people.
hardship
farm
production
demands
needs,
to
to
on
our
and" effi¬
them. Some¬
people
meet
hard¬
expand
special
war
and
expanding market
during the 1940's, only to
as
Today he feeds himself and about
find that the market later shrinks
20 others. In colonial
or
eighths of
not like
times, sevenpopulation was ru¬
ral. Today seven-eighths is urban.
Once a farm couple could start
farming with a team of horses,
plow,
a wagon,
on
Today the
farm is
sand.
our
80
and
acres
average
a
of
per
our
easily to its original posi¬
being stretched. It is
taffy, which stretches
easily but is hard to squeeze
after
like
Our farmers today face not
only
weather,
weeds, insects, and diseases. They
must also adjust to a technologithe
natural
an
earlier
being questioned.
individual
farm
operators
hazards:
cal revolution.
burdened
.Can the family farm adapt itself
to the technological revolution?
Can
Farm production is
rubber band, which re¬
back.
investment
The accepted ideas of
are
tion
out
land.
good areas
the total outlay for a typical famlly farm is two or three times that
dav
a
turns
more
free
$25 thousand to $30 thou-
In many of
disappears.
homestead
amount.
Kuhn, Loeb & Co.
cisions of informed individuals.
farm
claim
writers named in
has
true
liberty, are now, as always,
placing faith in the intelligent de¬
production.
.
techno¬
the
The
in
should
a
Copies of the Prospectus
of
revolution
needed
aggregate
effect
individuals.
bring about profound changes in
the whole structure of agriculture
and to place great stress on the
efficient,
An
democratic govern¬
Says Free Farms Can Exist
A
They be¬
of.govern¬
institutions which
purchase
unsubscribed shares and, both during and after the subscription period, may offer
shares of Class A Common
a
re¬
times.
liberals, namely those who believe
reali¬
186,032
Class A
fully set forth in the Prospectus.
expire at 3:30 P. M., Eastern Standard Time,
underwriters
subscribe
for each three shares of
of
ment.
the
These
a
for
need
the
of
the
been
lieve
farm
winning
with
tools fashioned
sion,
high
ment
the
reaction¬
policy today
1930's
must await further the deliberate
holders of its
a
view.
ary
our
The
,
ga^
hopeful yiew
It
that abundance is
a
actionaries of
on
that
and
this revolution cannot be avoided
-
the
a
our newly-won
knowledge is the prop¬
There is the strong feeling that
sub¬
by
technological revolution if
erty
belief that
they should share in its blessings.
ap-
itical
Do
£L,2*
technological
c.s
olution. How much
lation
Rights, evidenced by subscription warrants, have been issued by the Company to the
are more
rapid than the structure of society
will readily accommodate.
There
overnight,
of
course.
changes must await first
«
re¬
cush¬
bring downward pressure on
prices of farm products.
Now I assure you that of all the
freedom.
Share)
this
that would not otherwise
areas
dance
Class A Commoii Stock
that
be
modified, made
good1, fruit, guided into
bear
as we can see.
.
market.
Radiation, Inc.
de¬
new
basically
good,
capable of lifting the
.are
that they are
techno¬
A second effect, and an inescap¬
able consequence of the first, was
:
belief
velopments
making
226,032 Shares
per
great
changes, not only among farm
people but among all our citizens.
stantial degree of freedom is pre¬
served
with respect
to decision
(Par Value $.25
pol¬
this
of
Long-Range Policy Objectives
to make
products abundant presently
farm
and
the
of
consequence
overflow with
This advertisement is not
V*
to the farm
me
.
something we cannot now fore¬
see with clarity.
In any case, the
One
made to cut back the level of out¬
spoken out of gen¬
prayer
Pasteur
by Mr. Benson before the
Club of New York, New York
April
role
matters
to
address
Economic
a
high
this day our
us
Then
present day farm policy.
*An
this
in
generation
Congress passed
laws to hold production in check.
During the 1930s and since World
War II many attempts have been
uine human need.
The technological
agriculture
and
major
a
''Give
changes
two
where only one grew
grow
abundance.
priced in terms
of human labor.
Hunger played
policy.
These
As
arose
leads
which agriculture is passing. The
long-range objectives are these:
is
cumulated.
fields
scarce
this
of
awareness
was
make
in
Even
of human endeavor
had made but slight impact in ag¬
riculture.
Farm
products
were
being
now
earlier
An
to
before, and accomplished this ob¬
many
He will judge the
decisions
of
there
not
us
will
day in the light of technologi¬
cal revolution.
abundant
become
out
-
products
grass
history.
late
He
agricultural
country.
Muscle
the consequences?.
are
jective.
Agricultural production
processing and has increased more rapidly than
our
growing
population.
Diets
distribution. progress
had
been
have
improved
but,
even : so,
slow.
The arts and the sciences
which had flowed so brightly in stocks of farm products have ac¬
compare
the
diseases.
■•Uv:
Revolution
the
it with the in- 1
dustrial
have
set
t
,
power
marketing. He
Benson
farm
in storage houses.
They must be used by people who
need them, at home and abroad.
students logical
\
First:
was
the major factor in
production of farm crops and
had been so from the dawn of
animal
most
.
agreed: the process is irrevdr* •
What
Little had been
duction, proc-
thing
one
Consequences of This
gained in the battle against plant
pace
to be accelerating.: No man
sible.
flail, the rake, the hoe, the
sickle, the plow—these had been
almost unchanged in form or use
cultural pro¬
Taft
are
the
Now
tell where it will lead.
Upon
of
worker
farm
can
The
the scientific
Ezra
seems
three thousand years.
or
the negative.
We are
best to answer them in
.
fertilizer.
of
the
farm
for
Administration, as
viewed in the light of the tech¬
nological ' revolution
through
up
an
use
of
changes
the historian
tory
icies
abundant and the
should be on use. Our
farm supplies must not
locked
in
our
This
intensified application of
Whether this abundance
will,
Prior to the recent onrush of labor saving machinery to nearly during the long pull, keep pace,
or more than keep pace, with the
farm technology, which began in all farm operations, irrigation in
America
during the Civil War, marginal areas, and the intensive needs of our growing population
Agriculture
standpoint of the
technological revolution through
which agriculture is now passing.
the
from
Revolution in
Technological
policy
that
fact
agriculture^
enterprise system
affirmative.
the
are
emphasis
be
the
face
now
stage, in which stage we find our¬
selves today.
Many forces con¬
prefer to approach farm
doing
were scarce
products
management decisions
by the complex struc¬
economic structure
swered
of working
that
farm
and that the
emphasis should be on production,
products
<
operation in today's world?
In half the world, the world of
the Soviet Union and its satellites,
these
questions have • been an¬
record peacetime prosperity.
under
for
Isthe
those who farm
share in our
many years
the
principle
the
best
have opportunities to
After
'
■
ture of modern
grateful for the challenge. It is a
blessing.
Our problem is
how to get the most good out of
this great capacity to produce-
revolution
operated and that two out of three have no mortgage
I
live
how to
great
creased 4% over 1955 and opines it will increase further in
1957. Points out that three-fourths of our farms are owner-
|
learn
must
with abundance and we should be
Machines began to replace mus¬
seed
of Agriculture
Secretary
.1'.
We
so.
experimen¬
agricultural
modern
make
called
system. Nor would we want to do
in
Rothamsted
at
England,
1840's, the basis was laid for
the
,•:'
.
Thursday, May 16, 1957
.
(2282)
In
•
.
• ••
■ ■
,.
The Commercial and Financial Chronicle
10
at
least
in
programs
in
a
Their markets
are
with
surpluses, created
by unwise farm
the past.
They are
part
of
period
of
postwar
Continued
on
ad just-
page
33
Volume 185
Number 5638
.
.
The Commercial and Financial Chronicle
.
(2283)
■■
*
•
i
»
-
♦
.
i
special
Getting to the Roots of
demands
quick
farm
- •
>
agricultural
economist
allege
the
and
critiques,
War II bailed
to
speak
the
farmer
for
present
as
of
one
>
They probably do
they view farm prices
because
our program
related production. payments, built-in soil
bank handicaps, and illusionary cut-price exports, continues to
high level of activity and employ¬
ment, the gross national product,
agricultural policies. Declares that
our
of price supports,
deal "with consequences much more
Professor Jesness advocates
proposals bringing surplus
that
warns
we
mar-
V
«
and
more
<
farms, and gradual return of decision-making generally
more
the farmer.
to
:
at the crossroads between
are now
expanded government operations and controls to
not
go
far
so
to
as
accept in full the contention that
unit
which everything else depends.
Agriculture
essential,
so
are
ber
:
the
on
of
the
is
that
small
financing
farmer has
and
a
of
ing
unit
con¬
comparatively
the
individual
limited bargain¬
in pricing his products.
power
very
other essential
When
services.
1956 found that sales outlets would
But
iculture
automobile
the
not permit
nts
sig¬
Dr.
p r e s e
a
O.
B.
Jesness
industry in
production at the 1955
The
rate, it slowed down output.
wheat
tends
farmer
to
maintain
nificant share of the
output in the face of surplus
is
less he has alternatives which
distributed
so
are
of urban
that
so
provides 'activity for
other lines and rural
so important as sources
many
hreas
population, it
widely over the
it
country,
population and workers,
yield
enjoying
period.
there
will
generally
the
financial
dire
.<
others
facts
are
are,
in
As
tion
does not
class
a
are
while
The
however, that in recent
distress,
labor
his
the market and the
on
would
he
V,.;,
own.
output
lay off is largely
try and
to
other lines
many
subject
forces
the
seeking
grams
agricultural
riod?
core
were
decade
in
this
focused
The
to farmers.
be
chain
of
price
Board
Administration,'
much
,
even
so
supplies
of
they
pay
the cost price
squeeze in which the farmer finds
himself. Thinking farmers did not
expect to be privileged to retain
indefinitely the relatively favored
This
than
is
the
early
postwar
and
demand
prices
remain unchanged in face of
capacity:
excess
the
over
current
state
of
tion*
List
of
1956
ing
in
under
disadvantages
which agriculture is labor¬
ing today?
;
not
but
in
a
the
ture
way
is
not
made
,
easier
by
agricultural production is
ganized.
unit in
typical
producing
agriculture—the individual
good
deal
these
days about the al¬
of
loose
talk
leged threat of corporation farms,
the latter are the rare exception,
not the rule.
In many other in¬
dustries
there
are
associated
decided advan¬
with
size.
In
farming the individually operated
suffer
loss
by
Prof.
Jesness
before
the 45th Annual Meeting of the Chamber
Commerce of the United States, April
29, 1957.
of
price situation.
his
right
mind
is
or
the program to
What is called for
were
is
shift
a
of
supports
emphasis from price
to
some
effective
pro-
to help lines of farming in
surplus fit capacity to produce to
gram
the markets available and obtainable.
1933.
;■
Before
tion
it
of
may
briefly
time
out
us
A
some
to
a
worthwhile
certain
becloud
an
was
popular
1940's
and
because
for
NEW ISSUE
\
Du Mont
to
review
arguments
up
which
and which
political
income
of
or
or a
tend
contention
solicitation of
ports
in
when
surpluses
de¬
appear.
1952
1951
sup-
The
use.
have
are
in
accumulations
built
been
no
small
farm
characteristic
which
market
bearing
of
r
offset to lowered
as an
This suggests- a .-lack-"ofunderstanding . .of- farming and
£arm costs b* those , who . advance
argument. A very important
reason for the increased supplies
?f feJd Brains .is that .the acres
forded ,?ut o£ wbeat and c°tton
dnder the support program have
.n Tow(.
'bto feed
Fa,ns- In ,short- the fin-pins bas.
t)rlces.
-
.
been spread, not cured under the
An
.S
has
ingenious
attracted
argument -which
some
attention
an
Continued
»-V-.v
on page
offer to buy these securities.
v
r,
-
"
.
Broadcasting Corporation
per
Share)
*
••
by the Corporation to the holders of its Capital Stock at the rate
for each three shares held, as more
-
'
.have been
of one share
fully set forth in the Prospectus.
The Rights will
expire at 5:00 P.M., Eastern Daylight Saving Time, on May 27, 1957.
Of the above shares, 83,800
Corporation,
a
have been purchased at the Subscription Price by Paramount
stockholder of the Corporation, and have riot been
underwritten.
im¬
SUBSCRIPTION PRICE $7 A SHARE
a
be
human
nation
of
"lack
of
stomach."
such
food
ably
of foods
understandable expression
more
may
"inelas¬
as
case
as
intake
constant.
stretch
In
a
in
the
satisfied
more
unsubscribed shares and, both
shares of
well-fed
the
remains
remark¬
subject to certain conditions, to purchase
during and following the subscription period,
may
any
offer
Capital Stock as set forth in the Prospectus.
quantity
ours
Copies of the Prospectus may be obtained in any State only from such of the
The
make-up of
the diet may improve as incomes
rise,
but
the
quantity
remains
relatively fixed. Let a man really
get hungry and food becomes well
nigh priceless. Once his appetite
is
The several underwriters have agreed,
he
does not keep on
merely because sup¬
ply is there. The margin between
scarcity and surplus in farm prod¬
ucts is very slender. In war-time
several underwriters named in the Prospectus and others
as
may
May 15,1957
?
•
lawfully offer these securities in such State.
Kuhn, Loeb & Co.
.
is
that Jowering price. supports increases the losses to the governb^ent because .it "devalues" the
price instability arises from what
In the
re-
acquired. Comparison of the period
1933-1952
with; the- years
Rights, evidenced by subscription warrants, to'subscribe for these shares
agricultural
after
made
price supports have
mainly after the stocks were
the
an
has
on
-
which
in
-
Another
up
measure
commodities 'in
ductions
come
standbys rather than
were
of
up
1950
Capital Stock
Pictures
.
war-demands
in
and
active
which
V-j.-
(Par Value $1
issued
in-
an
of Korea that, price
because
problem,
314,812 Shares
V V
re-
of
time
a
offering, is made only by the Prospectus.
reduced' volume.
of
in
a prpfit.^ The market
strong during most of the
so
considera¬
the real problem.
offer- to sell
The
in-
of
holdings at
program.
on
the. adjustment
be
VS.! V
'
going
keep bobbing
to
levels,
This advertisement is not
de¬
The Human Stomach's Capacity *
eating
address
in
suddenly.
period of reduced sales
tic demand."
a
♦An
dropped
the economist refers to
is heard
tages
materially
sales
or¬
The
bailed
automobiles
the
farm—is small in comparison with
that
in
most
other
industries.
While
of
changed
total
form
portant
Solving the dilemma of agricul¬
II
overlooks
The farmer takes his cut in price.
In short, in agriculture price tends
not many
minimize the
us
This
prices
they overstress mand falls off
the advantages they think others
may
of the
end
ing from the degree of organiza¬
Perhaps
have; but in turn
causes
behavior result¬
they would be less to be the variable. In manufac¬
human if they showed; no turing, it tends to be output, Eoth
concern
War
.
commodities
and
list
because
But
affairs.
the
cent years. The other is that World
why
cotton, tobacco and other included
of
conservative
more
jn force much of
Production
economic
Supports then were at
program
Our
as
pledged to the CCC," chaos would
reign in the market for wheat,
depression ; levels
in
the
early
1930's made.considerable sense as
a
at
decidedly lower levels than those"
are
person
Endeavors to bring prices up from
of
that
advocating a sudden, withdrawal
of price supports. With $8 billion
reason¬
1929
in
is
were
of commodities in the hands of
lies
Farm
these
supports during the 1930's
the
supports.
eral
Losses ■?
pe¬
in j government
This dates back
to the establishment of the Fed¬
provement
situation:
prices
such keeps
centering attention on the
the
prices
on
the
over
or
of
In
we
The spotlight has been and
continues to
•
facts
are
innocently
suPPlles of feed grains with low®red ^PP"13 13 bflnS c.lted 33
>roofof tbe Popular but pecullar ,n ,10n
a £ai:Priars increase
cidedly from 1955 levels. By and
large, the manufacturer tends to
adjust output and takes his beat¬
prices
low.
of pro¬
alleviate
to
situation
supply
by farmers for their products are
far below the postwar peaks of a
of
re-
flexible
not
are
of
the difference in
years.
lines,
mainly
made
One
spokesmen' have
argued that the automobile indus¬
plight of agriculture is seen
even more clearly by a look at net
income. While the prices received
the
from
No
What has been the
but
'
„•.
The
position
and
other
raged
be
conveniently
overlooked.
farm
Some,
may
up.
(wheat,
rice
either
on
important
some farm prices are since is a case of
comparing unshort, in supporting prices like situations.
V
attacking
consequences A
rather than finding remedies for
! ThS combination of increased
that is not the
A people or na¬
greatness by
attain
justment
the gross income of agricul¬
ture has tended to sag while the
national income has been rising*
are
has
or
clear
concern
on
resisting progress, but by adopt¬
ing and adjusting to progress.
recovery.
years
,
However,
road to progress.
able effect
farmers
than
we
market,
the
His individual
prices.
moratorium
reasons
problems.
to maintain
a
its successor, the Agricultural Ad¬
direct induce¬
no
or
that
contend
have
us
part
rolling in wealth.
ago,
few
whether supports should
main at 90%
product
farmer's
identity
to
action will not have any measur¬
that
as
its
there is little
to
some
favorable
that
This does not
farmers
that
argument
over
from
comes
tobacco,
a
due
ment for the farmer to cut
not sharing fully in
present boom.
mean
in
concede
are
pro¬
specific
a
close tie between
a
individual
loses
mean
economic
no
Much of it
ing is that farm incomes are low
will because prices are low and that,
The consequently,
the road to
im¬
output and sales of that make.
are
economy
a
relatively
This does not
are
Many
-
the
of
sectors
the
un¬
return.
plant is not just
make. There is
the
large, the non-agricul¬
By and
tural
better
a
automobile
position of farmers is universal.
V,
him
ducing automobiles but
economic
the
with
concern
of
tions.
significant
sequences,
process¬
such
carryover
agricultural research and innova¬
Ability
One of the very
ing,
ing,
g r
needs.
war
leads
f
Price-Determining
without
manufactur¬
a
cotton,; corn,
peanuts) and
Part
increased productivity; in agricul¬
Limited
transportation,
r e
a
While mandatory price supports
have
been .narrowed
to
Selected crops called basics
im¬
some
of agriculture.
of this results from
ought
could not
host
surplus in
expanded farm .production to meet
dwell
not
and the manufacturer.
Our
exist
it. is
portant lines
the
shall
We
econ¬
omy
-
for this here, so suffice it
note
that the differences are
tions.
-
again
No, the cause is hot depression.
Instead
it has
because
r
Certain
freasingly difficult supply problem and enabled disposal of some
Incorrect Emphasis Upon Prices
" ■■■■ /.-rrv-
,
to, the adoption of im¬ so that supports may be lowered
inherent in the two lines of ac¬
if supplies mount.
Unfortunately,
tivity rather than resulting from proved technology and mechaniza¬
this debate tends to becloud rather
tion at a stepped up pace.
This
differences
between
the
farmer
other
lines.
,
The Cause Is Surplus
■
„
.;
ture
but
modern
income, the
Unfair Comparison
"
crops by the Act of 1938
-
reasons
to
is
num¬
a
of
k^sic
•
greatest advantage in most situaj-
agriculture is the "basic industry"
on
prevails
to 75% of parity provided
limited number of so-called
to 90% of
consumers
in the market place.
problem, including the unfair comparison of losses
between the period of 1933-1952 with the years since.
need
postponed
52
for a.
Author corrects several misconceptions about
the farm
One
ol
power
pro-
the
and
parity for a wider range
buying
Congress
clearly
provide a ?
labeled this as a temporary war
strong, not a depressed market for
measure
by indicating *that the.
farm 'products.; Were, the economy,
90 /0 level was to remain in effect
generally .'in
the ; doldrums,
the
only for the duration of-the War,
supplies of farm products avails
and two years beyond.
able today would lead to disaster
national
trie
than with basic causes."^
£ duction lines into balance with available and attainable
kets; and
as
-
out of that situa-
us
price support program during the
the ' day of 20 years 1933 to 1952 with those
reckoning. War also changed the since then.
The
farm
program
cbjective of price supports to that losses of the last few
years loom
of providing incentives to farmers
large in such a comparison. The
to maintain an increased
produce not infrequent charge is that this
tion ^needed for war.
Levels of shows that the problem becomes
price supports ;were raised from worse as supports are lowered.'
tion
effects.
being
"depressed."
Clearly,
depression is not the cause. The
reforms of
-
as wheat and cotton, which
has
gained
considerable
accumulating in the Com- circulation involves a comparison
modity Credit Corporation. World of the losses resulting from the
were
a
"depression."
real
suggests
of
things, such
of
on
have de¬
can
picture
so
Expert
who
situation
bring
form
Later
price depressing
Some
University of Minnesota
to
the
prices.
agriculture
Head, Department of Agricultural -Economics,
:
in
modest surplus
very
cided
JESNESS*
tend
responses
rising
The Perennial Farm Issne
By O. B
11
■
Carl M. Loeb, Rhoades & Co.
30
12
The Commercial and Financial Chronicle
(2284)
policy
Placing the Federal Budget
In Some Sort of
the point clearly, eloquently, and
in its proper perspective in a state¬
be surprised to learn
for
tional
tary
Fund
the
and
International
Bank:
"We
of
the proposed
Diagnosing the public's extraordinary reaction to
a
as
such reminders
real
Both
banking.
in
offices of trust,
are
field
neither
in
Examples readily
stewardship
government
in
should
as
we
ever
Protection
of
and
local
area
respon¬
which
agents
private
other
investments
they
is the cruelest form of theft—with
themselves
protect
and
.
.
.
infla¬
.
.
important
contribution
nation
a
soundness
of
incentive to save."
an
...
the
to
for the wise
quately
Certainly this viewpoint, as ex¬
by the Secretary of the
works, notably roads and water
supply, can conceivably be han¬ Treasury strikes a responsive
dled privately and once were, but chord in the hearts and minds of
not in today's complex civilization. you men in the mutual savings
people's mon¬
ey.
The least
that
is
we can
But
must
do
its
protect
value.
For that matter the modern po¬
we
liceman had as his early counter¬
never
part the "thief-taker" who worked
to strive
cease
to increase
for
of gov¬
ernment
Walter Williams
clos-
to
the
and sound
use
of the tax¬
of Commerce have been ever
government's
sole
point as briefly and clearly as it
has ever been expressed:
legitimate object of gov¬
a community
people whatever they need to
have done but cannot do at all, or
the
have
tradition
sound
not
only
a
powers
Amendment
government
with a Bill
of
of
so
Some
well do, for themselves
to the States
reserved
are
respectively,
to the people."
or
Americans
forgotten that this
much
as
as
to
of
the
which
10th
have
Amend¬
part of the Con¬
a
Furthermore, it
first
10
was
Amendments,
refer
we
the
as
to
Bill
of
Rights, which were proposed by
the 1st Congress and ratified as a
♦From
the
37th
a
talk
Banks,
Annual
Buffalo,
the
Hauge,
President's
economic advisor, once put it this
by
Williams before
Mr.
Conference
Association
tional
Still,
of
May
of
Mutual
6,
the
Na¬
Savings
1957.
FLORIDA
SECURITIES
Industrials
the
ally by insisting that change be
that there be continuity
progress,
"hanges
are
"^ad^ with
on
the course. When
made,
a
full
they must be
sense
of
resnon-
-ibility to what past generations
bave soundly done and to what
generations
°xpect.
Above
takes the
Under
-dearlv
all,
may
Need
conservatism
ami
Perspective
start
you
well say, $71.8
money — too
how much is too
lot
a
of
that question, which
answer
each citizen
it will
the
be
for himself,
for what
do
must
helpful to
see
will be spent.
money
Secre¬
ages in a recent speech:
62.6% of the proposed expendi¬
tures are for national security, in¬
cluding defense and aid to our
free nation
partners.
27.7% will go for interest
national
debt,
veterans
the
on
benefits,
agricultural supports and grants to
States.
9.7%, thO
balance will pav for
all the rest of government—Exec¬
utive.
Legislative and Judicial—
a
dime in the budget
than
dollar.
Now let's start cutting! Taking
the last item first, I assume none
of
wants
you
committee
the
and
to
to
chairman
out
Congress
Judiciary
and
most of the civil operations of the
Executive Departments and inde¬
pendent agencies to
10 cents of the
save
less than
budget dollar!
Defense
Costs
More
So let's go to that big item next,
earmarked for major national se¬
curity and related
let
note
us
But
programs.
that
major
81.5%
the
of
increase
fiscal
the
over
Add
year.
related
security programs and we
that, of a total budget in¬
'
crease
of
$2.9; billion
90%, is
over
1957.,
over
represented
by
in¬
for major national security
and related programs.'
perspective.
;rf i
In the first place, let us exor¬
cize the ghost of inflation which
creases
hovers
is
of
..,
.
over
of these discus¬
many
The price of
not
cheap.
security and
To take
one
peace
exam¬
thousand
to
aid
for
all of
the
us
other side when
our
con-
And,
own.
huge
a
costs
million.
$8
deficit of nearly $10 billion lor fis¬
Even
cal
the dpfense budget and cut
1953,
when
we
which
half
was
over
took office. Furthermore
if
power
dollar in goods it would buy was
cut almost in half and the cost of
"Life"
living almost doubled.
reason
real
was
inflation,
with
money
ing
instrument of national nol-
an
and
deficit financ¬
meat-axe
a
ple billion dollars for,
from 1939 to.1952 the value of the
cheap
took
one
say,
"hardware,"
or
editorial
to
cou¬
a
One
Final
ing.
Let's
that
pointed
out
(quote) "there might still be good
on
to spend all that and more
needs not
instance
being
noin
being met—for
basic
on
slighted
research
and
now
fiscal
In just three years the deficit
Russia's growing oroduction of
was
wiped out.
gineers" (unquote).
flation
about 3
The spiral of in¬
to a decline of
So
held
was
cents in the value of the
now
we
Furthermore fiscal 1956 showed
ricultural
budget surplus, another is esti¬
States and
the
for
current
and
the proposed budget will also be
in balance. Yet, as vou also
know,
year,
these remarkable fiscal results
achieved
were
tax cut for
grown
a
with
$7.4
billion
population which has
11
over
million in the last
how
Budget?
posed
is
about
This
that
current
$71.8 billion
to
is
lead
to
bv
the
1958
extraordi¬
public interest in
bound
Dm
na¬
that
pro¬
healthy.
sound
a
running
a
municipalities. The in¬
best be reduced
can
by
budget surplus to per¬
mit debt
reduction, as was done in
fiscal '56 and is planned under the
current budget. As it stands it's a
fixed charge which cannot be re¬
pudiated, containing an unward
as
Government securities
'56, the first balanced budget
'58 budget and rank them in order
of their contribution to the in*
It's most educational.
crease.
The
totals
How
teom
about
benefit"
o+^r
components?
The
$66.5
are
with
list
51%
contribution
a
of the
increase.
agriculture with
total increase.
hit
the
over
Triangle
TRADING DEPARTMENT
TELETYPE
MM51
budgets.
Put in "Contingencies"
which, if spent, will probably be
spent for these large items in the
budget, plus programs related to
major national security, and you
accounted
for
98%
over
of
the increase.
Such
heart
analysis, I trust, will
attention upon the
an
help focus
of
your
the
problem
and
help
guide your thinking and action as
responsible citizens. Wars and ru¬
of wars, in the ancient Bib¬
phrase, are at the basis of
major ills the world over. This
mors
lical
our
is
to
easy
in
see
penditures
our
budget
ex¬
for
past, present and
possible future wars—or to head
them off. We
even
in
to
the
normal
our
brought
economy
the agriculture
traceable
are
cations
them in veterans'
see
on
dislo¬
market
bv the forced
draft from the hot breath of Mars.
How
anyone
can
honestly
be¬
lieve that
wars
wars
essential elements in the
are
and preparation for
health and growth of our economy
leave
I
the Marxist
than
T in
have
seems
sure
had
fathoming
%
mentality.
Instead it
me—and I'm
crystal clear to
to you—that po¬
economic freedom
and
inseparable
perity
who
those
to
success
morn
are
and that peace, pros¬
and
hand in hand.
human progress
Meanwhile we
can
dedicate ourselves to do all in
our
friendly and profitable
crease
nations
between
tacts
Government to be
our
go
to ease world tensions, in¬
power
and
an
con¬
help
effective
instrument for human betterment
here in America and
both
among
all the peoples of the world.
"civil
Direc¬
Chicago Analysts to Hear
CHICAGO, 111.—George Soatta,
of
Clark
Eauipment
will address the lun¬
President
Company,
meeting
the
Investment
tor of the Budget, Pereival Brun-
cheon
dage, made
Analysts Society of Chicago to be
of
ments within the last few months.
held
^rvade the whole population, in¬
spective
In
of the Midland Hotel.
appraisal.
branches.
enterprise
teral
Their
but
also
spirit
of
of
must
State
and
specialThey, too must
take "the long view." ".
if
groups.
the
role
of
the
needed
for
realistic
a
Strain
on
GNP
greater strain
on
our
resources
A
useful
measure
is
the
tederal
to the Gross National Product
'reedom
for
nevertheless
the
tradition
individual,
important.
it
of
is
Public
.
per¬
relation
the
"national heap" of goods and serv¬
ices expressed in terms of their
com¬
When
to
I
I
manv
down
came
was
strongly
even
from
.*
More
said*
"In
W.
Schwabacher
F.
C.
ted°^al
a«stet.ance,
people who
to
the
verv
principle."
recently
Mr.
Room
Shoemakdr, partner
in
general the
those
condemn it in
James
verv
how
for
the Adams
in
Named Directors
of these programs
prised to
js
]6
to
thought they should be'dras¬
tically reduced. I have been sur¬
see
Mav
op¬
an^
demand
centage of the budget in
and
posed
At the outset, let's ask ourselves
whether this new budget will put
than previous ones.
Federal
.
pertinent
some
speech he said:
one
".
a
Government is limited, un<ter our
system
and
Washington,
Less of
governments
But
is
people
and
Limited, But Important
of the
between the 1956 and 1958
crease
examination
or any
a
Phone: Miami, FRanklin 3-7716
25%
parade, interest, with
their representatives of our spend¬
ing programs. But again some per¬
teterest
201 S.E. 1st Ave. Miami, Fla.
over
comes
about 10%, and you find that these
3 items account for 86% of the in¬
*he Federal Government
its
Golden
of
Add number three
cluding leaders not onlv of private
Florida's
$71.8
Next
-Arvatism cannot be monopolies of
Invest in
and
billion, respectively. Of the dif¬
ference
of
roughly $5.3 billion,
major national security heads the
car¬
rying low interest rates are re¬
placed. on maturity, with securi¬
ties carrying higher rates.
It
re¬
supoorts, and grants to
terest, item
bias
four years.
Now
on
27.7%
actual budget
certain items for
on
years, with proposed expendi¬
tures on those same items in the
litical
to that
earmarked for interest
tional debt, veterans benefits, ag¬
dollar since 1952.
mated
come
en¬
Calculation
in
matching
on
icy.
Secretary
compare
expenditures
man¬
as
as
One final calculation is reveal¬
bomber
interited
cut threat¬
a
for money to be spent in their
districts is almost irresistible.; ;
B-52
Administration
One
recently said,- the tempta¬
tion of our Congressmen to' vote
items
Our current
to
Weeks
cost
$693,000.
committee
a
plenty of volunteers to
benefits, but
are guilty of walking on
plane
This
are
school construction?
find
shrouds
gloom.
pro¬
cut the other fellows*
benefits—and
with
one
-
citizens
our
head
ple of many, the old B-29 bomber
them
and
-
which
in
Want
na¬
security alone accounts for
ask
cut aid to veterans, to agriculture,
to reduce or eliminate grants-in-
on
wipe
Federal
the
still
interested."
tary of Commerce Sinclair Weeks
brought out the following percent¬
less
the
grams
ens
much?
To
for
can
may
Well,
find
the
analysis by
putting this budget in some sort
nary
form of government,
statesmanship
esti¬
an
for fiscal 1958.
is
current
for
let's
So
rightly
long view."
our
insufficient
or
National
national
a
md steadiness
based
be
information.
of
nature
"Conservatism makes of change
future
Bank, Insurance Companies,
discussing
conservatism:
an
TRADING MARKETS
in
way
misinformation
on
the budget
In¬
express
of
ob¬
each succeeding year
billion
tional
to
seems
is
in fiscal '53 to
much.
first
which
This
Gabriel
you
down
come:
cussion
group.
their separate
interfere."
if
result
same
in fis¬
reeeive
I
something — for the National
Guard, for the veterans, for dredg¬
ing channels, for building dams,
sions and, in its extreme form, en¬
the other sections and
amendments.
one
to
seem
The
percentage
balanced by estimated governmen¬
tal receipts, has engendered a dis¬
designed to protect
form of government.
federal
our
a
estab¬
Founding Fathers,
by our
and individual ; The problem of statesmanship
partakes of the nature of steward¬
capacities. But in all that people
ship. It must at once preserve and
can
individually do as well for
change. It must constantly relate
themselves, government ought not order and freedom.
in
a
the
in
fiscal
1958, starting July 1, the
public has had a bad case of
the Eisenhower Administration has "budgetitis"! A proposal to spend
also been ever mindful that we $71.8 billion, even if more than
In
lished
stitution
ernment is to do for
editorial
magazine
submitted his proposed budget for
exception in local government.
ment is
of Government
Spending
cannot
un¬
Ever since President Eisenhower
States,
Abraham Lincoln put this view¬
of
about the Budget?"
how
Well, I want to accept the
the rule rather than the
justification" for taking the tax¬ It reads as follows:
payer's dollar is to spend it more \.'"The
powers not delegated to
effectively1 for his benefit tha n he the United States
by the Consticould spehd it in his private ca¬
,tution, nor prohibited by it to the
pacity.
'•The
ask:
April 15 issue: "Let's Talk Sense
On the Budget." I intend to try.
Rights protecting the individual
against some acts of all levels of
government
but
also
a
10th
Purposes
mind,
no
may
department,
and private hose companies main¬
tained
by insurance companies,
limited
that
some
"Life"
fire
During the Eisenhower Admin¬
istration, and under the leadership
of Secretary of Commerce Weeks,
mindful
"But
that
sense
spoken challenge in the title of
volunteer
payers' money.
we
reader I
the
and
were once
practical working of our business
community, we have perhaps a
unique vantage point from which
to appraise what makes for sound
stewardship of our economic re¬
sources
fees
bank field. But while I'm
The
As the
agency
•
personal body¬
guard who protected the wealthy.
its
value.
est
or
forms
as
pressed
of other
use
on a
Certain
tained
which people can
money—money
trust—makes
good
custody and
basis.
1958.
declined
Administra16.2%
.
"It is far to little realized what
an
ade¬
individual
of public
those least able
to
tion destroys the incentive to save
to invest funds.
prop¬
fulfilled
be
cannot
the
greatest harm
police and fire departments,
certainly be viewed as an
where people have a need
are
for
brings with it grave
social injustices and instability. It
destroys not only the value of sav¬
ings but also confidence, and se¬
curity, and social values. Inflation
would
sible
responsible
are
"Inflation
erty, from our armed forces to our
forget that we
We
make to provide for the future....
to mind.
come
persons
skill
and
cal
mated 19.4%
to
as
work
have
estimated
an
from 24.7%
and
national security and related programs account for
90% of the increase over the current fiscal year; and the
new budget is less of a strain than previous ones.
Singles out
wars, and rumors of wars, as the culprit, and cannot under¬
stand \yhy some claim such expenditures are essential ele¬
ments in an economy's health and growth.
The value of sound
Product and
each year under this
ries, their savings accounts, their
pensions and insurance policies,
years;
is
may
the value of their wages and sala¬
last four
11 million population growth in
as:
people's
our
money.
attention to
on-leave-of-absence-mortgage banker calls
The
the trustees of the value
are
which is to say, the value of their
appraisal of the budget.
needed perspective for a realistic
You
tion to
Under Secretary of Commerce
$71.5 billion Federal spending as a "bad case of 'budgetitis',"
Commerce Under Secretary Williams offers what he terms
Thursday, May 16, 1957
.
letters
ten
that budget expenditures in fiscal
1953 were 20.8% of the Gross Na¬
session of the International Mone¬
Perspective
a
.
market Value. Is? thd Federal Gov-f icism of, spending fwfcich, has. ap¬
ernment's "take" on the increase? peared in the press, mine out of
ment last fall at the opening joint
WILLIAMS*
By HON. WALTER
far to help curb in¬
Secretary Humphrey put
can go
flation.
.
Brundage
Lindvall
Board
Applied
was
&
Co.,
and Dr.
elected
have been
of
Physics
Directors
announced bv Howard
President
of the
of the
Corporation,
it
Gary,
Pasadena, Calif,
spite of the tremendous crit¬ manufacturing plant.
Volume
185
Number
5638
.
The Commercial and Financial Chronicle
..
.
(2285)
record
Banking's Personnel Programs
successful
concept
of
per¬
sonnel administration includes
Now and in the Years Ahead
re¬
porting, policy making, employee
welfare, research and planning,
By WILLIAM L. BARTON *
work
Assistant Vice-President, East River Savings Bank, N. Y. City
—
keeping and correspond¬
today's
broader
and
far
ence, \
more
measurement
and
simplifi¬
cation,
supervisory and manage¬
development programs,
group motivation plans, personnel
little money—that is all.
a
you
Mr. Barton's analysis of bank personnel practice and
tion
of
as
problems
audits
to what should be done, and recogni¬
other
recent
accomplishments in employee personal and ,'
security status. The East River Bank executive fore¬
clerical shortage for the immediate future and continuing
The
or
.
-
After studying the report
sible to devise
guarantee
subject
broad
a
field
that
expense
personnel problems and
practices in 1957 it may be help¬
new
ful to establish
training
accompany
We will
background.
some
con¬
cede that
no
help.
There
weren't
enough
babies
We
during the early 1930s. De¬
pression babies now graduating
from
high schools are entering
employment, but there is
day,
can
ford
to
chance
the
problems of
sound
exist
until
about
continuation
a
of
1960,
a
cess
assuming
prosperous
and its admin¬
istration.
The U. S. Census Bureau
Nor
be
as-
reported
that
such
d
working
wives
problems
the
do
women
not
where
exist
people
William
employed.
Today, we are
L.
Barton
.,=
4V-
.
Banking today is
petitive
endeavor.
.
highly
a
It
!
com¬
requires
maximum
service to the public
quality and quantity—at rea¬
sonable cost. Any savings bank's
finest hope of maintaining a good
competitive position in the comr
munity lies in the- abilities and
attitudes of its people^ in
.
And
-.
caught in the
try to hire and
hold top-grade clerical employees
so,
squeeze,
.
are
are
we
when all
.
.
we
as
our
operating costs
Since we
continuing to rise.
deal
only
costs
^services,"; heavier
in
be
cannot
passed
along
to
customers.
For
15
years, we have
relatively
a
labor
tight,
market
ment.
with
lived in
competitive
full
A most critical
employ¬
shortage of
clerical help cannot be overlooked
in assessing the current personnel
situation.
'Time' magazine recently said:
"We
need
more
bodies.
There
been
secretaries
enough
(or even file clerks) for 15 years."
Another
plight
isn't
of
publication
the
what
poor
is
used
said:
"The
working
be."
to
girl
What
the average New York girl wants
these
days
is
.'.'and frequently gets
.
first
job
with
large
salary, long vacation, short hours,
free
lunches, two coffee breaks,
and
easy work, preferably in a
...
a
glamor business such
a
advertis¬
as
ing, airlines, TV, theatre or fash¬
ion in an centrally-located mod¬
ern,
air-conditioned building
convenient to whatever transport
tation
she
prefers . . .. plus a
handy
of
supply
marriageable
As
prosperity piles
up the paperwork, the shortage of
banking
clerical
help
becomes
more
severe.
Full
employment
young
and
men.
defense
a
direct
ment
competition
and
brings
Govern¬
economy,
with
industries
other
dwindling labor supply.
for
'
years
The
the
grass
fence
when
riods
of
labor
the
Of
of
chief
sary
service
from
.
resulting
executive
lowered
importance
on
the
are
other side
a
lot
of
greener
plentiful.
Banks
faced with pe¬
are now
high
turnover
and
the
falo,
Barton before the
Annual Meeting of the National As¬
of
May
is
bank's
is
neces¬
of any per¬
Who
is
em¬
and
each
,
employee
responsibilities
carried
much, if not
Mutual Savings
£,..1257. '
Banks,
Buf¬
Illustrations
read:
"A
out
require
attention
than routine tasks. These are the
essence
of executive leadership
and
From
Recent
nel
Administration"
been
published
book
;
to
point out the
progress has
:
f
has"
in
Some
The
York
methods
marizing
a
significant
included;
about
employment
emphasized; proper
major technique for
decreasing personnel problems. ;
?
We should never forget (and as
the ladies so well know)
"The
quality of the soup depends upon
what the cook puts into it."
was
selection is
Procedure
supplied
by
New
Savings Banks sum¬
16-page questionnaire
more
survey
1. Employment
data
State
the
Information
survey was based on confi¬
dential
of
which
been
Outline of the Survey
(2) Methods of Compensation
Position Definition; (3) Personnel Administration;
(4), Benefit and Welfare Plans;
(5> Employee and Supervisory
findings of the
made, to iden¬
tify the nature of tliq problems,
and to comment upon the signifir
cant progress made over the
years.
.
110 actual pro¬
over
Education and Training.
form
They Handle
was intended
areas
of
re¬
and
under the title "How
Personnel")
in
the
(1) ; Selection and Placement of
i
(which
in
were
man¬
review
what
Employees;
r
"Trends In Person¬
on
actual
lowing general headings:
it
Com¬
Personnel Practices
A thesis
an
five main sections under the fol¬
com¬
prehensive Survey of New York
State Savings Banks/.. r£ ;
.V
a
Aptitude Tests
as an
aid in
se¬
lection is not yet a standard pro¬
The
cedure
main purpose of the study was to
obtain answers needed to make
all banks. Few of
among
the smaller banks
use
such tests.
important policy decisions and to
make possible comparison
prac¬
An increase to 31 banks from only
tices
not being used.
with
those
of
other
three in
savings
banks.
The
Replies
is
arc
more,
came
from 86%
banks
out
banks.
Answers to
500
of
questions
tabulated.
The
V
the
were
129a
or
banks
indicated
testing is
-
importance of selecting
em¬
and mentally
capable of undertaking their job
assignments requires little elab¬
total of 81,-
analyzed
1941
ployees physically
111
savings
oration. Yet in 1955; only 60 banks
and
reported
physicals
'
divided, ac¬
To obtain expe¬
were
,
that / pre - employment
required. This was
improvement over the
were
100% cording to size.
time-wasting
tactics
(tardiness, today in financial administration. /
1941 period; then 30 banks indi¬
rience
and' information
which
We do not wish to create any
absenteeism, and so on) requiring
cated such an examination is a
would be helpful to banks of all
more
notions
about
help to perform the same false
personnel
condition of employment.
sizes, the replies, classified and
volume of work. / :
management.
It does not mean
; ;
/ /
;
The use of personal and busi¬
tabulated according to the number
-These factors made for a
rapidly going overboard personnel-wise,
of employees in five categories, ness references continues to be a
growing gap between what we giving away the resources of the
ranged from less than 10 to 100 common practice in banking; 100
have, what we need now, and bank, destroying its substance, or
banks report this method was used
or more employees.
V?' /
what we will need shortly.
being charitable. It means bring¬
to verify prior service or educa¬
?;
The problem of achieving em¬ ing the eternal triangle of savings
The Questionnaire
tional records. This check is sup¬
ployee relations is of primary im¬ banking — services, net earnings,
The questionnaire was designed plemented by investigations re¬
portance today in order to retain and people—into proper relation¬
as
a
check list and constructed garding the character and integ¬
our present employees and attract
ship or balance.
rity of new employees.•, There ap¬
John Ruskin refers us to the so that each item could ordinarily
qualified new employees.
pears to be an increasing tendency
The essential ingredient for do¬ common law of business balance be answered
by either "YES" or to place less emphasis on the ref¬
ing the job in the future will not which points out that:
"NO." An attempt was made to erence as a source of reliable in¬
"It's unwise to pay too much
necessarily
be
more
machines,
formation concerning an applicant.
material or money.
but it's worse to pay loo little. simplify the questionnaire, which
The single
Continued on page 32
factor is the one we will never When you pay too much, you lose covered a very broad field, and
a
,
■
;
-
be
able
to
People
do
without—PEOPLE!
important than
anything. For any bank, just as
for any business, capable men and
are
more
wpmen
The
asset.
its
are
This
announcement
is neither
in
manner
organization
which
handles
its
an
The
significant
most
any
NEW
offer
to
sell,
nor a
solicitation of offers to buy,
any
of these securities.
offering is made only by the Prospectus,
ISSUE
May 10, 1957
people
reflects directly on the
production
it obtains, the volume it creates,
and the earnings it realizes.
As
Ben
Wooten
will
always
what
he
"Employees
says:
give
their
,
125,000 Shares
employer
deserves."
Machines
eventually
may
of
over
some
once
handled
the
by
ASSOCIATED
take
rountine
work
people but
will never
em¬
TRUCK LINES, INC.
ployee relations
lose
importance as a factor in savings
banking.
■
CLASS A COMMON STOCK
Active Leadership Required
Par Value $3.00 Per Share
Is it not sound business practice
for
management to
leadership in
a
active
assume
that
program
en¬
courages the welfare and satisfac¬
tion
of
its
Francis
employees?
said:
time
man's
"You
.
.
.
but
Price $10.00 Per Share
Clarence
buy
can
to Chicago
a
cannot
you
buy
initiative; you cannot buy
loyalty; you cannot buy the devo¬
tion
of
have
hearts,
to
Application
minds
earn
of
Techniques
Proven
for
and
these
Copies of the Offering Circular
souls.
undersigned
as may
may
be obtainedfrom such of the
lawfully offer the securities in this State.
things."
Personnel
Handling
Cruttenden, Podcsta & Co.
the
Problem
There does not appear to be any
single cure-all for this current sit¬
uation.
Awareness
of these
problems and
to solve them
closest
we
can
and
come
to
analysis
our
realistically
a
Bateman, Eichler & Co.
Bache & Co.
the
of
-r.
;
.
.1
.
I
•* >
'
'
Instead
of
being
operations as
confined
to
i
employment,
Watling, Lerchen & Co.
*
Harold E.Wood &
today.
such
H. M. Byllesby & Company
Incorporated
MacNaughton-Greenawalt & Co.
solution
problems
Kalman & Company, Inc.
the
.
personnel
Lester, Ryons & Co.
Bradbury-Ames Co.
efforts
are
'
address by Mr.
sociation
the
officer
program.
how
how
as
output,
work
make
success
defined
inaccurate
and
poor
in
today's
may
interest; of
ployed,
treated,
/Poor work habits is another fac¬
tor
to
"theory" of personnel
is done—and
The
type of information re¬
quested, with emphasis on meth¬
ods being used, was divided into
com¬
-—distributed in March 1955.
for the
sonnel
banking
a
large
market,
as
,
paramount
constant
for clerical jobs.
upon
for
"An
37th
this—
primarily upon
progressiveness; co¬
conditionsy
sults
•
.
not statements
were
grams.
significant when
as
around
•
agement but
old say¬
an
is known by the people
keeps."
-v frW,j.
Their
the recognition that first hand and
number of the young men couiuea
The ratio
ago.
appears
jobs
generally
and
You
Federal, State, and local Gov¬
ernment employees is one out of
eight; compared with one out of
50
' C-.;V,
depend
changing
<
military
will
necessary.
recently
number
dropped.
curient
a
of
25,
arnica,
•
"
haven't
be
can
like
flexibility in plans such
increased, while
single working
of
removed
of the necessity of
aware
the
program
maintaining good employee rela¬
tions.
number
'me
are
acutely
static,
a
operation between employees and
management; sincere determined
and carefully planned
effort; and
Currently, the trend is toward
early marriage and large families.
it
to
which
and do tell you
can
management
peacetime economy.
person¬
nel program
s u m e
reduction
formula
many of the more
successful approaches for dealing
with people are required.
Suc¬
age. Latest population and census
figures indicate this situation will
af¬
leave
turned
har¬
and
application of
short¬
a
It is just
the
what
employee
,
business to¬
zan
defies
successfully applied,
to a sore spot. /
born
as
ing.
relationships
between
employees and management. This
inflexible
dealing with such
is known by the
man
pany he keeps." That's
formula that will
a
permanent
on
prohibits paying a little and
getting a lot—it can't be done."
"A
1
<The results
ance
monious
of modern methods.
In
of 15
relationships, it is almost impos¬
people, of a higher calibre, who will feel that they are partici¬
pating in, a common endeavor and are receiving the rewards
to
developments in
years
and points out that more machines, material
will not do tomorrow's job—for it will still require
money,
per¬
*
tions.
law of business bal¬
common
pany
for several years,
^
increasmgly important
sonnel activities.
economic
sees
program evaluations and
or
included about 750 primary ques¬
pay too
little, you sometimes
lose everything, because the
thing
you bought was incapable of do¬
ing the thing it was bought to do.
ment
includes suggestions
When
13
Company
14
The Commercial and Financial Chronicle
1
(2286)
1949,
Analysis of the Sources and
By SALLY S. RONK*
I
Economics
not
was
widely circu¬
It contained only six tables
covering (1) real estate mortgages,
(2) sources and uses of corporate
Uses of Investment Funds
f
and
lated.
funds,
(3) life insurance compa¬
nies, (4) mutual savings banks,
(5) savings and loan associations,
and
Department, Bankers Trust Co., New York City
(6) ownership of Government
securities.
Bankers Trust Economist provides
description of
summary
additional
years, infor¬
table
pension funds, state and local gov¬
study for 1957, with line numbers
ernment retirement
added
tions,
changes
1948, which indicates total use and sources of funds in 1957
be $1.1 billion less than 1956. The objective of the anal-
on
in assets
has
sectors
may
others
ysis, according to Mrs. Ronk, is to determine the magnitudes
Although the systematic total¬
ing of sources and uses of invest¬
ment funds has become more in¬
flow of current investments,
the
limited to that realizable in the
taken into account.
are
;
The Bankers Trust annual
study
uses
ment funds is
being released,
and
now
few remarks
a
of invest?
billion for 1956 and $8.5
in order
seem
other.
net
Our
mortgages
debt
and
is
approach
increases
to
securities
in
outstanding
treat
and
that
is,
instruments—as
equity
—
ining
investment,
devel-;
encompasses
Savings, or "sources" of funds, ac¬
cording to this concept are the
major investing institutions and
and
some
individuals,
the
problems
e x
1
p
liow
a
it
oped,
what
it
of
tions
involved in its
in
tram
e
the
a
Thus, the
issues
instru¬
of funds
users
mortgages in orde^ to
long[-term investment re¬
quirements,
funds
capital
the
and
suppliers
who
those
are
of
the
enter
capital markets seeking long-term
that
investment outlets.
Sally
Ronk
We have been
current
making this study
for many years, and it has gained
basis; it presents figures for each increasing attention. Back In 1948,
of the past five
years, along with when we started this work, no sys¬
some
We
guesses for the current year.
recognize
that
there
are
tematic
the
approach to the study of
and
sources
uses
of investment
possible approaches to the
problem of measuring saving and
funds had been developed.
investment, or flows in the capital
markets, and that there are many
the available statistics and placed
them in a systematic framework,
methods of treatment.
we
many
The objec¬
our
thought that if
would
we
It was
gathered
have at least the rudi¬
tive here is to determine the mag¬
ments of
nitudes
sis of capital funds, and that this
involved
current
savings
in
on
the
the
flow
one
and of current investment
of
hand
in
turn
supply-demand analy¬
a
might give
some
us
clues
to the movement of interest rates.
on
the
At first, the available data
*An address by Mrs. Ronk before the
Municipal Bond Women's Club. New York
fairly
City.
and
Our
meager.
study
first
was
investment funds involves trac¬
this,
we
well
as
analyze each type of in¬
strument separately and include
tables showing gross issuance of
securities, loans and mortgages as
the
net
were
sources
change
in
out¬
standings in the handsroffeach
major group of holder.. Also, we
have
tabulated
for
each
major
class of institution the sources of
its funds
where
and
The
has
framework
evolved
for this
with
study
availability
the
It is not devised
ideal to which
an
"/'X
.
of the statistics.
as
these funds
placed.
are
prepared in
to
(offering of these bonds for sale, or an offer to buy, or a solicitation of
buy, any of such bonds. The offering is made only by the prospectus.
an
schools
In this, way, we
current data.
tics,
the statistics
data
from
other
For
Official
projections,
but
of
views
made
after
are
great many
reflect
a
ex¬
responsi¬
our
are
our
1
.
,
and
Our
course
and
bility.
Estimates
uoon
sources
estimates.
too,
discussion with
own
past statis¬
our
published
perts,
availability of
rely almost entirely
we
certificates—are of short-term.
-
Due May 1, 1937
since: fhe
yestments
that
assume
.of
ments
It
is
debt,
the
are
agencies
series
we
assets
on
credit
outstanding are
published
by
various
regularly
data
consumer
loans
and
these
Also,
of
i
5
1
F. S. Moseley & Co.
I
Lee Higginson Corporation
Central Republic Company
Hallgarten & Co.
(lni-orporated)
.
Ilayden, Stone & Co.
G. H. Walker He Co.
Baker, Weeks & Co
i
'
McDonald &
Company
McDonnell He Co.
_
C. F. Childs and Company
»
,
Elworthy & Co.
-
McCormick & Co.
*
First Securities Corporation
,
.
-
.•
-
Incorporated
First Southwest
William R. Staats & Co.
Brush, Slocumb & Co. Inc.
Company
Sutro He Co.
Halle &
of
series
statistical
SEC
of
•
corporate offerings; rather,
since these companies in turn in¬
new
vest
chiefly
in
and stocks, we
as
line
on
In
14:
1956,
gross
elsewhere in the study,
shown
:
corporations used $4.1 billion of
the proceeds of the new borrow¬
invest¬
are
This raises the question
of
gross
In follow-
and net flows of funds.
-x
Buyer"
series
other
while
loans,
securities included
municipal
watched; and
of
new
in
term
items
we
bank
long-term
In
in
derived
from
this
covered
includes
companies,
life
mutual
large
insur¬
of
funds,
instalment
is
of
the
when
1955,
in
indicated
separate
study, which show
users
of funds—cor¬
major
real
and
state
estate,
short-term
it
That
Sources of Funds
Lines 8 through
was
table
mary
credit regular
instalment
14 of the sum-
the non-bank inT
funds,
tal
vesting institutions.
by absorbing
a
large
namely,
institution
slice of bank credit.
investment
of
sources
major
the
represent
spurted and impinged on the capi¬
markets
"net flow"
on a
the
porations,
became evident
so
final
have set
we
local governments and consumers.
namely, consumer
credit.
desirable to do
in
framework
tables
we
Thus,
The magnitude of the gross
flows
of
by
mar¬
the
measures
funds.
basis.
also included the
area
which
of
up our
analysis by adding in all bank
other
in¬
savings
use
for.
this ^difficulty,
in the capital
pressures
sector
purposes.
view of
funds
of
kets, but it is the net take of any
short-
of
supplied
use
ingful for analysis of the day-to-"
investments
amount
We have
balance
The list of institutions
as
the
$3.2 billion. Gross flows are mean¬
the day
of
some
credit
loans.
have in¬
changes
corporated
years,
Each class of
different
has
invest-
Summary of Sources and Uses of Investment Funds
tt
c
;Vv'
v
-
^
(In billions of dollars)
i
/
T?
i
r
:?,
5.6
6.1
7.6
,9.9
12.5
16.1
14.8
3.0
2.1
2.8
4.0
4.8
3.4
3.2
20.6
22.9
25.6
25.6
3.6
0.6
5.5
2.5
7.8
5.1
33.2
31.1
.
:
17.4
19.2
3.1
0.6
5.9 4 4.5
4.1
3.6
22.5
26.8
1.5
1.0
•
25.1
25.0 ,38.9
8.5
No.;
-
.
(1)
13.0
(2)
3.7
(3)
25.2
(4)
2.3
(5)
3.6
(6)
,
.
(7)
44-
•
:
funds_____
investing institutions
5.9
5.9... 5.8 V; 5.9
2.0
2.5
2.0
-(8)
(9)
1.9
2.8
3.5
4.2
2.5
5.2" "4.4
4.2
(10)
0.5
0.6
0.8
1.1
1.0
1.0
1.0
1.2
1.1
1.5
1.5
1.9
1.6
2.0
2.1
(11)
(12)
0.4
-
5.0
2.1
0.8
:
5.2
1.8
2.0
._
5.9'
1.5
__
:i_4
0.3
0.5
0.6
0.4
0.8
0.4
1.0
0.5
0.5
1.1
0.8
1.3
0.8
(13)
(14)
13.4
11.9
6.6
0.2
14.1
4.0
16.7
17.6
17.6
17.5
(15)
4.7
12.0
7.9
' 5.9
(16)
0.3
0.2
0.3
0.4-"
0.3
(17)
3.9
0.5
1.0
0.6
7.2;
1.8
0.9
1.0
0.9
0.1
—0.2
2.5
2.9
4.8
2.7
10.6
13.4
11.1
4/8.3
25.7
other
1.8
14.9
:
2.2
1.4
1
0.4
0.4
i__i
2.3
0.2
10.8
11.1
t___.
;_
Credit unions
Individuals and others**
;•
0.2 "" 0.3
.___,
Commercial banks
__.
""'".V
Line
(Proj.)
5.4
4-*--^----;
Non-financial corporations
,
v-4:V''
4- >
government retirement
Investment companies
Total
•6.7
9.4
7.4
9.0
25.7
"/ f";r. ^
•
Life insurance companies_____
Mutual savings banks__
agencies
5.9
(Est.)
/
;
;
non-bank
1953
10.1
-
loans, excl. real estate & instal'mt"
uses
local
1952
3.5
.-4
.
instalment credit Outstanding
consumer
Sources of Funds*
Federal
1957
1956
1955
1951
n
(non-Federal)
Net new issues of non-financial corporations....
Increase in real estate mortgages..:
Total
1954
1950
16.6
IT
Uses of Funds
22.5
26.8
25.1
25.0
.
J
•
0.9
1.2
(18)
5.7
5.3
(19)
(20)
21.3 ' 15.6
13.6
(21)
33.2
31.1
(22)
4.5
'
Stiegiitz
sources
38.9
^Investments
such
as
corresponding to demands shown above.
Thus, investments in Government securities ancF some other types of investments
policy loans and real estate of life insurance companies, are omitted.
**Residual.
NOTE:
The
Reflects
effects
figures in
this
of
table
revaluation, of
have
been
>
these governments is estimated at
have included short-term funds in
Government agen¬
or
recent
closely
justments,
essentially shortNor is it possible
represent
uses
cies
is
issues
great—commercial account retirements and other ad¬
banks supply short-term credit for
long-term requirements. However,
the banks do not report their term
loans and ^he like separately from'
our
Total
May 15,1957.
the
commercial
that
pressures were
and more major groups of
investing institutions have been
compiled and published by trade
more
State and
.
the
from
capital markets, since the banks widely quoted. It should be noted, *
regularly meet long-term require¬ however, that this represents a
ments for mortgages, term loans
gross flow; state and local govern¬
and municipal securities. At times, ment new offerings in 1956 were
also—as in 1955 and 1956, when $5.4 billion, but, after taking into
as
liabilities
use.
and
Savings and loan associations
,
of
institutions
essential
Fire, casualty and marine insurance companies
Corporate pension funds
Blyth & Co., Inc.
other
in
long-term- 4/
ing the capital markets, one genA problem arises also with re¬
enerally thinks in terms of gross
spect to the long- and short-term flows from day to day or week
investments of commercial banks. to week. For example, the "Bond
may
Total
Francis I. duPont & Co.
bulk
the
these
term financing.
to -measure the
bank
Increase in bank
legally be distributed.
retirements;
the net addition to the
outstanding. We have ex¬
cluded investment company issues,
words,
by maturity. In general, ings for retiring securities, so that'
it is probably safe to net new issues totaled $7.6 billion; *
however,
Subtotal
Copies of the prospectus may be obtained from any of the several under,
only in states in which such underwriters are qualified to act as
sheets
balance
gages, Federal and State and local
and
Increase in
writers
all
less
amount
funds
major savings: institutions, as re¬
ported, seldom differentiate in-
Increase in net debt of state and local
governments
Price 101.55% and accrued interest
offerings of new issues, but
the total of Oil offerings
gross
rather
in>all
Government
...
i
corporate bonds and stocks out¬
standing. This does not represent
supply side, too, it is not offerings of corporate bonds arid
cases to separate stocks, excluding investment com¬
long-term funds from short-term, panies/totaled $11.7 billion; but,
pf the changes in cor¬
New York State Electric & Gas Corporation
dealers in securities and in which the
prospectus may
"Invest¬
the
in
contained
detailed
the
in
set
is
items
On the
possible
porate securities, real estate mort¬
ance
Dated May 1, 1957
The
reference.
most
fully
more
uses
of
now
Mortgage Bonds, 4%% Series due 1987
ready
of
and
corporate bonds
have included in¬
vestment - company - additions
to
-^•notably railroad equipment trust portfolio securities as a source of
terion has been the
formation.
First
hoped to keep our
banks be included in any analysis
sheet
$25,000,000
investment
re¬
factories, homes,
and.net working capital.
as
should be fitted; rather, the cri¬
Government
not an
offer
forth
changes tables
long-term
•
quirements
associations
This is
uses
for
derivation
summary
sources
we
movement
or
ing the flows of funds through the
capital markets. In order to do
or
finance
available
are
on
their holdings of these
those who borrow in the capi¬
tal markets by means of security
work
markets
their contribu¬
the increase
and
are
statistical data
on
funds.
of
measured by
are
ments.
preparation.
study at¬
tempts to pull
together in a
system a tic
The
"uses"
or
treated
analysis closer to the concept of a
capital market. Unfortunately,
of,, interest; however, long-term funds cannot
rates.
Nevertheless, it does give be,
separated completely in the
improved insight into the pres¬ statistics as
they now stand. For
sures in the capital markets.
V
example, municipal issues as re¬
A Framework for Sources and'
^ ported include short-term serial
bonds;
construction
loans
are
Uses Analysis
lumped with real estate mort¬
Analysis of the sources and uses
gages. Also, some corporate bonds
of
not
bank credit.
of the sources and
are
and
the
from
the
is
shown
Here
of funds.
uses
as
comprehensive, it has
provided a magic key to the
level
.
billion in 1957. Apparently the increase of 1957 over 1956 will
come
from decreased mortgages and not from commercial
,!■■■
funds
of
Originally,
such
clusive and
market and including short-term funds, for whatever clues
might be revealed in the capital market regarding the possible
movement of interest rates.
Net increase in corporate bonds
and stocks is estimated to be $7.6
liabilities
in
sources
as
funds, and, of
banks. Here
commercial
course,
'
involved in the "net" flow of current savings as against
Uses of Funds
savings and loan associa¬
fire, casualty and marine
insurance
companies,
corporate
banks,
ment
Outlook
for
1957," study
had hoped to issued by the Bank this month.
been added as it has become avail¬ limit the data to
Uses of funds are summarized
long-term bonds
able, so that today 12 sectors are and mortgages, that is, to instru¬ in lines 1 through 7. Line 1, for
covered in detail and three or four ments
which
typically
finance example, shows the increase in
savings-investment study, made annually since its inception in
7
Cfver the
mation
Thursday, May 16, 1957
...
book
rounded
assets
and
do
of- other
not
holders.
made regularly,
*
necessarily add to totals shown.
'
.
/
.
.
Volume 185
ment
Number
policies "and
5638 I1'/. The Commercial and, Financial Chronicle
in
operates
-
sometimes different and sometimes
finance companies
a
use
included
are
as
(2287)
?
Table
which
T
show' the.
these
amounts
institutions
commercial
have
as
during the year to their
holdings of corporate and municipal securities and mortgages;
From
v4
Washington
}'Ahead of the
banks is also included
of
added
since
the major non-bank investinstitutions
do
not
make
ing
instalment loans nor, of
consumer
bank
course,
of
sources
loans,
funds
investing
the
from
institutions
may
be
compared
total
on
line 4
non-bank
line
15—
the
—
sub-
with
in
total
order
deter-
to
mine the share of the increase .in
corporate and municipal securities
and
mortgages taken by non-bank
investing institutions:
T
..
■
.
Life
insurance
have
corporate
bonds
vice
and
obtainable.^
these
However,
funds
well
in
vestments
changes
their
tion.
advance,, their in¬
tend
to
in the
acquired
lag
behind
investment
i
For
situa-
.0™
example,
x,
1956
in
they
record amount of real
a
estate
mortgages, while - at the
time they were sharply reducing their mortgage commitments.
Although the life-comsame
panies
some
limited
mon
years
they
interested
not
Nor do
municipal
than
some
enue
bonds,
has little
com¬
apparently are
equities in- the
in
current market.
chase
received
ago
to purchase
powers
stock,
they
securities,
since
other
rev¬
tax-exemption
value to them.
The chief investment interest of
mutual
savings banks is in mort¬
gages,
but
been
placing
recently, they
have
some funds in cor¬
porate bonds
as
yield differentials
narrowed.
have
Like life compa¬
nies, they do not place much em¬
phasis on state and local govern¬
ment'/ securities
or
and
of their
funds
corporate
small
a
States
Government
Fire,
casualty
niapimx
mnct
th
rvf
-
f
^
l
In inWcJa
J" ^
Und'
pension
d' arei n0t
•
each portion adds to market
in different ways and
bearing on the total invest-
pressures
hag
stocks have become
able.
."•••;••/
State
always
s u r v
i
re-
of
size-
requires
on
i ser y. He
seldom ap-
pears
the
v
before
securities
municipals.
or
and
more
more
funds
received authority to buy
corporate bonds carrying a public
rating of AA
view
of
better.
or
the
However,
pressures
the
on
municipal market in 1956, their
takings of corporate bonds were
curtailed, and it is likely that they
will shift their chief
state
and
interest back
local
government
he
Government Sector
resign.
say
Federal Government may be a net
supplier
a
or
net
tbe investment market, depending
on
the budget position and:purchases
of
securities
accounts for their
of
of funds to
user
the
trust
investment
own
of
he
in the case
the
party
333 P°wer*
„
.
„
,
,
■
.
figure for funds supplied
commercial banks covers all
and
the
to
of tax payers
into action and it is seldom
Congress has had so much
the
outset
I
wondered
investments other than
United States Government securities
like
Truman
and
-
But such could not be true
common
Carlisle
Bargeron
to
man.
The
The
which is good
Demo-
common
man.
if it does make
even
the Democrats inconsistent and
the Administration unhappy,
There are a lot of ways to skin a
cat.
believed,
said, in government spending
bring the good things of life to
the
Chairman of the party on the out- spenders. There
Now, Rayburn
Paul H. Gaither Forms
^^
ment activity
^«
:
.
During
capital
been
this
and
.
recent
dominated
municipal
users
bv
the
period
markets
monev
have
private
after the '56 elections, an advisory
they were the first to turn against
the
and
of funds. Nonbank
investing institutions havp
1ill
bal-
on
i^^
ance, been
sellers of United States
t^otoi116*
securities In order
t2
?
+
investing institutions to the
capital markets, we have netted
Government securities in
our
table: that is, purchases
die
are Iiui H'UU 'eu
not included
summary
direct
a
of funds.
use
has
ever
have
been several such advisory committees
to
try it. Members of
Lfore
Deiore
of
Government
focus
directly on the pressures
operating in the markets. /
The
significance
of
treat-
our
this
and
ana
invest-
in
-ercial
nave
*
How did this all come about?
said be not only did not need the
Neither is.Mr. Butler's advisory
money
committee accomolishing anvthin*
very
eminent citizens
as:Truman
such
but
pennv
not
not
efficiently
eiticientiy
ninchers
in
.
the
it. J-enny pincners in tne
security,
...
.
;
r
..
pa,u
Paul
arp
are
curities
,
engaging in
business
82 Beaver
from
the
to
banks
was
the
$10 3
of
in
1954
Beauchamp, West & Stava
firm
& West
name
of
Beauchamp
115 Broadwav
New York
«*'es^£e^oaf^e'New YoJk
g^ock Exchange, will be changed
three or come up this year with an econ- to Beauchamp, West & Stava ef-
suit.
omy
budget the Democrats would
fective May 1.
NEW ISSUE
$9,000,000
(First installment of
"
Second
excluding Government securities,
we
see
banks
lion
contributed
to private
mands in
1955.
Commercial
only $4.7
and
41/4% Equipment Trust Certificates
bil¬
municinal de¬
■.V,(Non-callable)
1954 but $12.0 billion in
Although the Federal Gov¬
ernment sector has been
excluded
To be dated June
detailed tables and a table
changes in ownershin of such
To
1, 1957.
from our summary table, we do
show- changes in United States
Government securities held for
each class of institution in the
United
changes
States
issue not exceeding $20,700,000)
Equipment Trust of 1957
that the picture
actually reversed.
an
Chesapeake and Ohio Railway
and
in
mature
Issued under the
'
•
'
$600,000 each June 1 from 1958 to 1972.
Philadelphia Plan with
20% cagh equity
on
MATURITIES AND YIELDS
se1958
of
secu-
rities,.although not shown
3.90%
1961
1959
4.00
1962-1963
4.20
1960
holdings
Government
4.10
1964-1972
4.25
4.15%
sepa-
rately in the
summary table, do
enter our analysis of sources and
uses of
investment funds, since
the
funds.
When investing institu¬
tions sell Government securities
for
our pur-
in order to invest in corporates,
the
balance
These Certificates
received by us,
are
offered subject to prior sale, when, as and if issued and
subject to approval of the Interstate Commerce Commission.
they
te
investment
well
as
credit markets. It may
poses
wheel
be regarded
between
banks
as
supply
as
and
to
de-
.
Our
some
measure
of the commercial
contribution
bank
demands
loans
for
Thus there is
also
includes
of
instalment
con-
by sales
'"buted to meet investment demands not only through the flow
Continued on page 35
Eastman Dillon, Union Securities
Stroud & Company
?f.1a"a'ys!s show.s .the f"nds con-
double count-
credit
Drexel & Co.
are reduced. Thus our framework
funds.
investment
some
Salomon Bros. & Hutzler
institutions invest in Government
secunhcs, /Jl'r sources of funds
finance
which
ing: first, total extensions of
sumer
sources
or
mortgages, their
funds are augmented.
Similarly, to the extent that these
mand.
banks'
are included insofar as they
affect the sources and uses of other
municipals
Incorporated
May 16,19S7.
at
JL/.
commercial
investment markets
billion
se¬
To Change Name to
banklXigsSfwUhToan
contribution
a
offices
Street, New York City.
Congress boycotted, it from the doubt that had the Administration-
securities,:
h
H.
Max Bush Opens
The
"
cmirprs
Officers
Max Bush is
Ibe Democrats retorted.
Adlai
and
could
could
but
Stevenson. Democratic leaders of). And there is not the slightest
demands slack, commercial banks
added heavily to their Government portfolios, but in 1955 they
lightened their holdings consider- ably> as loan demands quickened. ;
Government
Boule¬
securities
a
,
look
four members followed
different
Shaker
11900
engage
Oalther Prerident anHTr^nriJS*?ltheJ>. .?re«.
* aT d Treasurer,
™dw?,rd+A- Elsel(~> Jr> Secretary.
Mr- in Ball, £as fIor„m£ly a part~
9a*h*r Burge & Kraus.
ner
as
beginning and all save
under
at
to
h
business.
upon: National sisted on increasing the Adminispaid
employees, tration's budget. For one thing,
They have no constituents and they added a billion dollars to the
they have not been elected at the Air Force budget notwithstanding
polls.
1
r
that Secretary of Defense Wilson
Congress
some
can
vard,
Only last year the Democrats in-
iike
Nothin£?
w°rKea
committee accomplishing anyimn^
Jc,,ri- notwithstanding it is Composed of use
By this
offices
budget,
the?I
mere
/
WOrked
of ouu, SCtuimCS
such securities
as
Administration's
understandably so, but the Democrats took over and are carrying
the ball. The situation has left
Eisenhower out on the limb, he
and the small group around him.
Chairmen
tion of
out
can
committee' which was to share
with the Democratic members of
Congress
the
responsibility for
policy.
considerations rather than invest-
tribution
commercial
now
be no denying
has been a net sunplier of funds side looking in.
Own Investment Go.
this and to see the Democrats in
to
the investment
markets
and
Mr. Butler, however, despite his Congress leading the
economy
(Special to The Financial Chronicle)
changes in Government holdings distress is a hardy soul. He had drive is something to behold. The
CLEVELAND, Ohio—Gaither &
have tended to reflect
liauidity to be one to create as he. did, Republicans
started the drive, Co., Inc., has been formed with
(line 16 of the accompanying
table); it measures the total conof
if
believe, sold out to
Never ! again, Adali
Chairman serves at his pleasure and Johnson are throwing that to
9ncl therefore is not subjected to the winds.
the .harassments that befa11 the
At that, it has been the party of
Recently, the Federal Government
Thus,
,
Sector
The
loans
At
Stevenson
cratic party had always
always has the
The
comment.
The
President
curities is also included.
obligations.
Commercial Banking
organizations
sprung
the
put
after the President's speech of
the
enemy.
Tuesday, and his less formal redeclaimed could the Democrats go cent utterances. It looks like a
before the country as the friend reduced budget is in the offing,
Adlai- like
being
if
and
Truman
such '"liberals"
press
without
asked
special
is
have
an
business
maybe the Administration had not
planned it this way. It was difficult to believe anyone could have
been so devious or so clever. Yet
the Democratic leadership in Con- -the statements of Secretary of the
gress, namely Speaker Sam Ray- Treasury
Humphrey
and
the
burn and Senate Leader Lyndon President's acquiescence in them
Johnson, had broken down or as give some basis to my theory,
v e s
shrank to $4.5 billion in 1955.' By
V..
and
1950,
Messrs.
m
The Federal Government sector
however,
Since
to
other
and
publicly bemoaned the fight that
the.'-Democrats
in Congress are
making to cut the budget. They
cited this as an example of how
intends.to
The Federal
chiefly in United States Government
served
a laughable light. The
committee met here recently and
an
solely
ment situation,
local government retirement funds formerly invested
by
is
,
a
Counting
bonds, although in
their acquisitions
common
Commerce
-
cent, years
The
the
felt that this duplication might
be a shortcoming.. However, even
though-the "double-counted" financing may be for the same end
in-
TnlCiPnS
to
for
havte-Tn
^j£X3£
in
loans
securities
marine
budget coming from him had
effect of shock. The U. S. Chamber
that
secu¬
Now''ho™ T/
stock
mbn
and
companies
could
of
has
wanted
heat applied to it.
Also,
unhappy- one but
purpose of purchasing
impression
that
securities you - get
the
are counted as a use of funds, as. Democratic
are the securities for which the Chairman,
loan is made.
At one time we Paul Butler
.
ment of United States Government
surance
it
But
National Chairman
a
Eisenhower-had
economy budget this year he
not have pursued it better
he
did.
The
$71.8 billion
an
and
The lot of
ap&
it
succeeded.
than
By CARLISLE BARGERON
„
companies
portion
rities.
*
If Mr.
have
bank credit.
in
mortgages, the
balance being employed to build
liquidity through acquisition of
United
mortgage
:
increase
to
probably
which is financed by commercial of the opposition political party party in
treatment
tions invest all but
commercial
pur¬
higher-yielding
or no
tutions
since
commit
companies
in
versa,
according to where the best yields
are
funds
bank loans (line 6). Another case
double counting is. found in I
that portion of real estate mortgages acquired by investing insti-
use,
.
companies
relatively flexible investment policies, shifting from mortgages to
of
use
a
sought
would
overlapping sepmrients'of, the capl- Amentcredi t'*and that p.6t tal markets; The: summary data floii:financed
by borrowing frorfr
in
have
-
'
of funds in consumer instal-
15
& Co.
The Commercial and Financial Chronicle
16
.
.
Thursday, May 16, 1957
.
(2288)
decisive, however.. Gen¬
was
Connecticut Brevities
eral Motors after
THE MARKET.
Industrial shares this week
seen
the
to
more
once
500 level not
AND YOU
.
WALLACE STREETE
By
returned
.
since early
makers of missile fuels,
such
Liquid Carbonic. For that
as
in
matter, Olin's participation
but instead of high-energy fuels was in large
chasing away all the gloom, part responsible for its sud¬
it merely served to increase den appearance in the lime¬
September
light.
caution.
For one, the
big disappoint¬
Bosch
xAmerican
able
was
also
outperform the gen¬
to come to the fore when thp eral market, in part, because
industrial average broke of its work in guidance sys¬
through to a new high for the tems for missiles. In fact, a
year; The feeling is somewhat separate division was set up
ment
that the rails failed
was
general that it will take the
support of the rails for the
to
for such work less than a year
ago. The division, still facing
developmental costs, admit¬
anywhere near testing the all- tedly will not! loom impor¬
time peak of 521 posted 13 tantly in earnings this year
but could grow to important
months ago.
stature next year and after.
industrial
to
average
come
Skepticism lAccompanies
For
another,
business
the
In
Market Rise
other
over-all
the
picture is hardly one
that warrants any new
record
fuel
Bosch's
meantime,
bright hope is gasoline
injection which already
is available
models arid
limited current
on
seems
assured of
having disappeared frora the "sug¬
gested" list for a bit as other
companies nudged into its
large share of. the market,
was
once
again in guarded
favor. The thinking was that
General Motors, which cele¬
brates its golden anniversary
next year, could hardly let
the celebration go by without
a
vigorous attempt to win
back its commanding share
of the
with the
market
new
models.
Pullman—Also
For
Market
a
Sleeper
figures compiled by the U. S. De¬
The
partment of Commerce. The fig¬
m a r
k
e
t
play in
m a n y
months but currently is avail¬
able substantially below last
year's peak and a dividend
yield of over 6%, there is
Pullman
which
has
shake off, in the
the
public mind,
that
notion
tied
is
it
cyclical rail¬
road car business. Actually,
the Pullman of today is far
from being a romantic entity,
the
strictly "to
highest of any state in the coun¬
with
has
but
achieved
sta¬
new
a
a
is to investigate the feasibility of
capita personal
per
prices
on aver¬
income of $2,513.
producing other than cold-rolled
carbon steel strap for springs at
the Wallace Barnes Steel Division
During the year 1957 The Stan¬
in
Forestville.
still
level
with
level, the market
20%
some
which
it
under
could
speculative
the
reach
enthusiasm
rampant, and about the
margin
was
same
what might be
over
said to be the attractive
buy¬
ing level.
its
rockets, missiles and profield
of
with
a
unique unit.
in
on
its
General
work,
Aerojet's
own
results
for
period last
the
year
some
Apart from its participation
Tire
Missile Interest
the
actors
the
similar
and
nuclear re¬
projections indicate that
small
and they might approach the 1949
record this year. The stock
pellants, is also busily forging
into
above
is
facing
still
is
far
closer
than its historic
its
to
low
high.
plant expansion and
improvements. A large part of this
will be spent to expand produc¬
tion of steel strapping. A new
$6,000,000
on
is
Scovill
ford
to house a mill, largely for
production of tubing. The plant is
and
located
is purchasing
equipment to enable it
Iona
■
TORONTO,
has.
Hartford
Canada—James G.
Strathy, Dominion Securities
Corporation,
has
been
elected
K.
re¬
electric mixer
plant contain¬
ing 23,000 square feet of floor
space and located in Manchester.
division
to
a
The present
mixers
Chairman
will
Exchange,
Hammond.
Other
an
New
High for
a
New
of
more
companies participating in
phases of the field.
portant items in new cars.
various
For the
their
work
large plane makers,
Auto
participation in missile showed
has
not
offered
much
new
Motors Indecisive
issues
Vice
little
signs
of
any
spirited market action. Sales
incentive, mostly because have been
ambling along
they are facing a shrinking of without
calling for much
their plane orders while their
market
elation.
The
issues
missile
loomed
take up
There
work
has
not
yet
important enough to
the slack.
was
much interest in
were
fairly buoyant with
an
occasional easiness when tem¬
porary
trims
are
made in
car
production. Little about them
with
ment
as
now
industrial
and material
trucks
as
J.
U.
a
some
for
a
moderate
dividend increase this year.
article
views
do
not
Mraihy
Gaird-
R.
Also members of
Treasurer.
the Board of Governors
D. S.
are
Beaty; S. K. Bongard, Bongard
& Company; F. O. Evans, McLeod,
Young, Weir & Co.; E. B. Kernaghan, Thomson Kernaghan &
Co., Ltd.; Mr. Osier and Marshal
Stearns, T. A. Richardson & Co.
Raymond Dragat With
Walston & Co., Inc.
HAPfTFORD, Conn.
—
Walston
&
Co., Inc., members of the New
York Stock Exchange, announced
that
Raymond H. Dragat has be¬
with
associated
come
firm
the
as
registered representative in the
a
Hartford, Conn., branch office. 111
Street.
Mr.
Dragat is a
Pearl
member of the Bar Association of
State
the
former
is
a
Connecticut
of
Hartford
and
a
He
Alderman.
graduate of Yale College and
Yale Law
by
an
School.
in¬
Asa V. Wilder With
Harris, Upham & Co.
(Special to The Financial Chronicle)
2,000
second.
compare
one
SAN
#
Asa
V.
FRANCISCO,
Wilder
ciated with
232
was
Calif.—
has become
asso¬
Harris, Upham & Co.,
Montgomery
Wilder
will be the first
research and de¬
Street.
formerly
a
Mr.
partner in
Hooker & Fay.
M
%•: Primary
Markets in
f *
1
expressed
in
this
necessarily at any
time coincide with. those of the
"Chronicle/'
They are presented
as those of the author
only.]
CHAS.W. SCRAKTON& CO.
Members New York Stock
Exchange
CONNECTICUT
of its followers it is
candidate
[The
new
K.
G.
ner,
automatic
pinsetters for bowling alleys.
To
a
D.
occu¬
handling equip¬
well
in
step
Eric
J. H.
Crang & Co.,
Secretary; and
Scott,
plans to establish a new re¬
This
Chair¬
-
man;
search center at its Bristol head¬
quarters.
H.
Burgess & Co.,
The Associated Spring Corpora¬
tion
e y,
a
,
highs and is
pied
themselves
Ht
i1
Charles
capacity of the proposed
*
Diversifier
were
C. P. L
system is illustrated by its ability
or
officers
elected
It will be the
installation
add, subtract
S.
Osier, Osier &
company
tem. The
Stock
Gordon
expanded
be
the
of
succeeding
and only the
third installation of a Bizmac sys¬
surance
Gov¬
of
Toronto
world, will require
25,000 and 30,000 square
such
first
Board
ernors
the
of floor space.
feet
the
capacity exceeds 3,000
plant
between
to
tire field this
sustained interest replacement
Otis Elevator, once re¬
was
pretty much concentrated year and is preparing for garded as a cyclical entity in
in the missile field with the mass production of the new
tune with commercial build¬
high hopes ranging from one style rubber "springs" that ing activity, was a quiet addi¬
are
to the other of the
expected to become im¬ tion to this week's lists of
long list
The
in
of
new
day and it is anticipated
a
the
tem
200
Elects New Officers
,
its
moved
cently
that
is
and
about
Toronto Stock Exch.
Manufacturing Com¬
West
of
pany
site
acre
employ
cold
plant additions.
The
93
a
to
persons.
rolled steel, largely
for use in the company's produc¬
tion of steel strapping. In the year
1956 about $4,090,000 was spent on
quality
on
expected
ekpand its production of high
to
Manufacturing Company
has begun construction on a 275,000 square foot plant at New Mil-
Division
Steel
the
construction
under
five-digit numbers in
expected large increase in the
;
ley Works expects to spend about
.
the 500
supplement
existing research facilities of
Barnes-Gibson-Raymond Di¬
at
Plymouth, Mich. One
purpose of the proposed program
growing rapidly with the new
bility ranging from the Kel¬ by about 20,000 additional square
age.
Dividends i have been models. By direct injection,
feet of floor space
in the near
logg division that "does engiwell-maintained in the great¬ the complicated carburetor is
future. The introduction of sev¬
n e e r i n
g and construction eral new electric
appliances is
er bulk of issues but increases
eliminated,
efficiency
work for the oil industry to scheduled for this
year.
haven't been especially nu¬ enhanced, and power in¬
$
*
highway trailers. Moreover,
merous.
So market strength creases provided. Thompson
the railroad car business, par¬
The International Silver Com¬
Products thought well enough
merely serves to reduce yields
ticularly in freight cars, is pany is in the process of moving
and bring stocks back in com¬ of this product to obtain a
its silver plate holloware and cer¬
having a bit of a boom cur¬ tain administrative
departments
petition with other forms of license to work with Bosch on
rently even on top of last to a new building located midway
investment, including bonds. its development.
year's large growth in this between Meriden and WallingOlin
Mathieson,
for
in¬ A Return to the Quality Lists
portion of the business. The ford. The move to the new $6 mil¬
lion building is expected to be
stance, was able to spurt into
General Tire was back in a freight car shortage has been
completed
by
September.
The
the spotlight this week. The
routine rut this week after little alleviated by the large machinery and equipment to be
company has maintained a $2
deliveries of last year and in moved have been located on State
the
commotion
in
consort
rate throughout its rapid ex¬
Street in Meriden in various old
circles
will
reach
a
with its subsidiary, Aerojet, some
pansion of recent years and,
"crisis" when harvest time is buildings, some of which date
recently. With the speculative
back 100 years or more. These old
with more
capital expense
buildings will be torn down to
over,
General again at hand.
still ahead, is hardly listed on play
Coca-Cola is an issue in a provide room for a 400 car park¬
showed on lists of quality is¬
any
lists of candidates for
sues available for capital ap¬
neglected field that seems to ing lot to be established by the
Meriden Parking Authority.
higher payment. Yet in the
preciation. Aerojet currently have definitely made its turn¬
*
*
«
varying optimism of the last
is contributing about a third ing point after the stock had
The Travelers Insurance Com¬
year and a half, the stock
to General's over-all sales but fallen from 200 in 1946 to be¬
pany,! which recently completed a
ranged from about 65 down
isn't overly important in aid¬ low 100 this year as rising large hew office building in Hart¬
to 42 about a month ago and
ford and also purchased from the
costs squeezed profits. Annual
ing the profits reports yet be¬
Aetna
Insurance
Company
its
up
to 52 this week. This
cause
of its own heavy ex¬ earnings expanded moderate¬ main office building, which is
hardly reflects any dividend
penditures for expansion and ly each year since 1954 and adjacent to Travelers buildings,
expectations.
stockholders
recently were has announced that it plans to in¬
development. It is almost cer¬
stall an RCA Bizmac electronic
The more balanced view,
tain to become an important told that April sales set a
business system early in 1958. The
record. Earnings for the first
ajs several of the market spec¬
installation, which
will be the
earnings contributor in time.
tators put it, is that around
The subsidiary, in addition to quarter were comfortably largest electronic computing sys¬
levels in stock
products.
new
will
vision
try, being exceeded only by Del¬
aware
center
new
the
to
yet
develop
the
the second
for Connecticut is
ure
additional
a
improve its present line of prod¬
ucts and to
1955 was $2,499 according to
vision
issue that hasn't had
an
velopment program designated to
capita personal income
of residents of Connecticut for the
year
plant for the Steel Strapping Di¬
.
.
The per
New Haven
SECURITIES
<
-
.«
T-j"JUvy/
New York
Hartford
—
—
REctor 2-9377
JAckson
7-2669
Teletype NH 194
Volume
185
Number
5638
.
.
.
The Commercial and Financial Chronicle
Some Present Day Thoughts
Oi a Bank Lending Officer
By J. P. DREIBELBIS*
Senior Vice-President, Bankers Trust Co.
New York
City
farther
go
movement.
must
we
avoid
Not
ing
comprehensive
study
From
points of view, the
some
past 2V2 years have been difficult
for
years
it
is
tomed
bank
lending
made
strange and
a
sort
unaccus¬
of
most, of
Our
distribute,
t
ability,
From
a
seem¬
P.
J.
This
and
period for a good
Part of our difficulty,
conditions
Reserve
when
finding
was
it necessary to restrict the volume
available to the bank¬
ing system. And this combination
of vigorous demand for credit and
a
limited supply of reserves put
the bank lending officers in the
is
determining which
profitable and
are
not
are
encourages
loan portfolio
our
view to
a
it
that
and
whether
we
off
ones
lavorable
in
books
our
economic
a
and
that
plied
skillfully
lent judgment.
Impact
of
has
it
been
with
and
Credit
ap¬
excel¬
Restraint
It is a fact, of course, that a pol¬
icy of credit restraint bits hardest
at the top of a boom. That is the
time
when
its
Some
As
all
we
credit
business
confidence
rosiest, when profit
has
universal
acclaim.
have
against
are
not
A
been
with
met
number
of
levelled
policy among which
penalizes the small bor¬
to the benefit of the large
the
that it
rower
is
oppor¬
boom
ana
which
can
trouble for the economy la¬
ter on,
but also from the point of
of the loan portfolios of the
commercial
banks.
When
mate¬
rials and manpower are scarce and
fully utilized, easy
credit would only add to inflation¬
ary
pressures.
We have had
enough inflationary pressures dur¬
ing the past two years despite a
restrictive credit policy; I shudder
to think what might have devel¬
oped
had the Federal Reserve
been liberal in providing bank re¬
are
being
serves.
The
straint
has
into
policy
helped
of
credit
channel
productive
related to the
*An
the
address
City,
N.
and
essential
re¬
bank
purposes
that
bankers
in
help to
promote public understanding and
foster public support of the Fed¬
eral Reserve in its efforts to pro¬
mote sustainable economic growth
with a minimum in instability and
minimum
of
inflation
a
subject that should
size
medium
in
increase
end of
tomers
to
their
the
and
loans
smart
the
since
1954 shows that their cus¬
have not been
credit.
bank
It
its,
have
we
obligation to
an
denied
ac¬
would
a
be
contro¬
versial point.
further
A
icy
of
more
criticism, that
a
pol¬
credit restraint may bear
heavily upon borrowers of
junior credit standing than upon
prime credit risks probably has
some
validity. I would go even
further and say that I hope it has,
I have already suggested that one
of the dangers in a boom is that
credit standards may be relaxed—
with
undesirable
like
of
to
mention
the
policy
which
is
of
not
third
a
seem
which, it does
to
me,
of
a
entire professional
number of our
vast
but
essarily increased the cost of
car¬
rying the public debt and, as to
banks, sinmplv meant more and
excessive earnings. I think we all
know the right answer, but I won¬
der
sometimes
if
tionary climate such
vailed
has
as
viewed
too
I believe
an
infla¬
the past 21/?
over
government,
not
are
we
timid in expounding it.
the truth to be that in
pre¬
years,
either
no
from
responsibilities for sound
and the public welfare or
from
its
costs for
own
services purchased in
ket,
afford
can
am
and
sure
money
free
a
"easy"
"low" interest rates.
I
goods and
Of
that
mar¬
monev
make it
possible to stay longer and
or
thing
one
is
that
the
saved on the dollars bor¬
an "easv" market would
rowed in
have
it
far
been
offset
in¬
the
bv
numbers of dollars which
creased
would
have
had
to
borrow
to
the increased cost of the goods
purchased.
Beyond this, however, inflation
poses direct and difficult problems
for
bank
fect
to
the
sion of
of
have
be
rate
relief
is
dis¬
more
favorable
as
been
during
the
great moment. But I still believe
this is a good time to take stock of
they
as
past
1xk
where
we stand, to examine our
policies and practices with critical
years. Let me add that while bank
earnings look good in comparison
with
the
record
the
ago,
rate
of
vested capital
a
liberal
face the
of
is,
I
few
a
earnings
care, and
years
today, not
even
suggest that
nomic climate.
we
necessity of using all
our
one.
I
is
we
managements;
even
the
it,
one
earn¬
difficult, to be
more
BIyth Adds
to
Staff
(Special to The Financial Chronicle)
SAN
E.
FRANCISCO, Calif.—John
Cook, Jr. is now connected
with BIyth & Co., Inc., Russ Bldg.
pertinence to
namely, that
Form Buffalo Ventures
BUFFALO, N. Y.—Buffalo Ven¬
tures, Inc. has been formed with
offices at 810 Abbott Road to
activity, in the demand for
gage
in
a
securities business.
Yes, But....!
of
rmeds
the
whole
and thus to the
exoan-
loan accounts.
At first
our
look favorable to
may
banks.
But
it
is
not
an
un¬
mixed blessing.
Forced to Sell Governments
result
is
of
the
serves
to
As
result,
a
the
inflationary
that the Federal Re¬
has found it
necessary
commercial
banks
forced to make
room
to be
re¬
banks.
have
rabidly
and declining
rising
nation
and
of the pro¬
that have been included
law.
It is
prediction
a
extend, when you
make the first estimates, some
more
than
in the
a
year
and
half
a
future, and these
sums
stupendous.
it would be odd, I
should think, if every—if the
are
"Now,
first guesses, or
the first esti¬
how care¬
Pres. Lisenuuwer
fully we arranged them, we
send to the Congress, would
prove to be exactly accurate for the next 18 months.
mates,
no
matter
"Now, in their prying into all of the business of
think it would be
these various activities, I should
if occasionally they [Congressional ex¬
perts] didn't find some savings. But I have told
you
also that you cannot reduce this budget
markedly except by cutting programs, either pro¬
grams of services that the United States people,
operating through the Congress, have stated that
they wanted the Federal Government to perform,
or
you must go into the great programs that are
designed for the protection of this country and for
the waging of peace in the world." — President
strange
Eisenhower.
been
loans
These
raoid
decline in the ratio of bank capi¬
tal to risk assets. I should like to
"programs
of services"
are
fact the road blocks that limit if they
certainly in
do not
pro¬
hibit reduction in Federal outlays.
holdings of Govern¬
a
the
that has ito
for loans by
disposing of Government securi¬
ties, generally at a loss. This com¬
of
"Now, I have explained this budget time and
again. We have been perfectly honest about it.
Every item in a budget is, after all, in a sense, a
prediction of what will be needed to carry out the
necessities of government and
grams
in the
But
is of
to
are
they untouchable? Of course not—that
common
govern.
sense
on
courageous
en¬
shall continue to have fluctua¬
of
of
side when and if
sentiment becomes less ebullient.
gage in economic forecasting, and
I propose to keep that promise.
bank
see
cautious side when everyone else
seems most optimistic; and, what
pace.
promised that I would not
As I
the obligations of a lending officer
is to be just a little bit on the
energies in efforts to increase the
ings keep
to ask ourselves whether
loan portfolio is in position to
withstand a less favorable- eco¬
our
in¬
on
productivity of capital invested in
commercial banking. The commer¬
cial banks will have to grow with
the economy and be in position to
meet the growing credit needs of
an
expanding economy. And this
ef¬
the
past
has been to add greatly
blush, this
the
inflation
credit
economy,
One
managements.
the
of
two years
ments, has contributed to
1957.
interest
always
restraint and the resulting
higher interest rates have unnec¬
fairly niggardly in providing
that covers the
no
even
some¬
lending, enjoyed so long a period
of time with so few losses as has
loss experience
and
-credit
consequences
to this point; a pe¬
favorable
more
turbing is the prospect that loan
comes from very unexpected
quarters—that is the charge that
serve
case
are
they have * been in many
years; business sentiment, while
perhaps not as optimistic as it was
some months ago, is still
optimis¬
tic; and, more particularly, credit
times
pressure
favorable
rates
than
lending officers. l am making no
predictions, and assuredly no pre¬
dictions of impending problems of
trends will not
What is
ness
itself
in
banking system, in its commercial
the
in sight.
restraint
credit
new
commercial banks. Seldom has the
of
interest
tions in aggregate levels of busi¬
One
been
satisfactory to
lending officers; loans and busi¬
ness activity are at record
levels;
this is a subject which re¬
quires careful study by bank man¬
agements. For surely if inflation
continues, loan demand will con¬
tinue, capital ratios will shrink
criticism
quarters that we should so handle
our credits on the "upside" as
to
11,
accom¬
inflationary movement
of the price level. Here I would
Mr. Dreibelbis before
Bankers
Association,
May
use
any
alike for the economy and for the
riod
ment that is quite
clear
conclusion that is of
of bank deposits that
panies
and services
assuredly
seems
and
formation could be made available
is
questions. It also
more
Without posing as a seer, however,
I suggest that there is one general
pay
what
assets. But, it seems clear that the
trends of recent years cannot con¬
tinue without raising more and
every effort to prevent the con¬
fiscation of the value of the dollar
helpful if in some way some
comprehensive and reliable in¬
on
ratio of capital funds to risk
mum
commer¬
bankers from many points of
view. As custodians of the depos¬
its
and
loans, in credit policy, in interest
rates, in business profits, and in
prices of all manner of tangibles
and intangibles. For 2Vz years we
have been living in an environ¬
gen¬
sound mini¬
they cannot do unless their
Inflation is
production and dis¬
J.,
defla¬
or
tion.
bination
Pennsylvania
Atlantic
when, how
what
lending officers. I would think it
to be acceptable philosophy in all
by
like
economy
money
experience is probably
typical of most banks. The fact is,
of course, that literally thousands
of
banks
in
the
country have
nothing but borrowers of small
our
career
credit
goal,
only if the central
vigorous
a
determine
to
that
most
stand¬
ing begin to take on some of the
aura of prime credits. Yet, this is
the very time when caution and
restraint
are
most
needed, not
only in an effort to curb the ex¬
cesses that frequently
develop in
view
this
ours, perhaps the most difficult
problem the central bank faces is
conversations with lots of bankers,
borrowers of junior credit
cause
collec¬
our
cial
know, the policy of
criticisms
cess
business
do so
can
policy. In
climate.
Criticisms
restraint
a
and
in
achieve
be close to the hearts of
tunities look their best, and when
a
to
bank has the power and the free¬
to follow a flexible credit
generally
corporation, and that it bears most
heavily upon borrowers of junior
middle. All of us have had to turn credit standing and leaves rela¬
down loans that appeared to meet tively untouched the prime bor¬
the test of creditworthiness, and rower
with
established
banking
sometimes to forego establishing relationships.
These are serious
new relationships that we believed
criticisms
and
I
think
we,
as
would be of continuing advantage bankers, should face up to them.
to our institutions. These are not 1
cannot speak for
the banking
easy decisions for lending officers system, but I can say that in our
and bank managements to make, own operation the small borrow¬
yet I think it can be said to the ers have not been discriminated
credit of the banking fraternity, against, we have not put arbitrary
despite the problems posed by the ceilings on our branch lending op ¬
policy of credit restraint, bankers erations that deal with smaller
have supported the policy of the businesses; and, what is equally
Federal
Reserve.
I
think
most important, we have turned down
bankers share my belief that tho lots of applications for large loans.
policy of credit restraint was nec¬ It is my impression, based upon
essary
contribution
efforts
dom
a
under
reserves
boom
might better get the unprofitable
a
Federal
is
examine
which
many years.
of course, is that this tremendous
demand for credit developed at a
time
business
a
relationships
Dreibelbis
have been in this position
long
so
the
result
to
with
in¬
first
we
tive
evaluation of credit risks. An¬
our
us
the
great
critical in
other
time
point of
but it
in
know what is
men,
degree to restrain the ex¬
credit point of view. With am¬
pansion of credit in a boom. This
ple outlets for our funds we tend
is the reason why I believe it is
to be more careful and
time when the
satiable.
speculation.
economic
do I
or that it can prevent
further, and more banks will find
business upturn from gen¬ it necessary to add to their
capital losses have remained low. This
erating excesses or eliminate every either by
reducing dividends or, comes pretty close to being a Uto¬
sag in business activity. We have more
probably, by selling stock.
pia for lending officers, or so it
to expect some
alternating periods
Finally, all of us are fully aware would seem.
of expansion and contraction in
of the impact of
rising costs and
the economy; our problem is to
Need for Caution '
salaries, also by-products of in¬
try to even out the swings and
I have the
feeling* without be¬
flation, upon our operating costs.
prevent the big booms and the big
Despite mechanization, automation ing able to document- it, that con¬
busts that have troubled us in the
ditions may not always be so fa¬
and electronification, our costs
past.
Credit policy can make a
vorable or so free of trouble for
continue to rise
so
credit, at
was
services,
financing of
or
not
am
erally concerned at this trend, nor
that
a
demand for
ingly
and
the
salutary. For one thing, it gives
us an impetus to look more care¬
fully at our loan applications from
bank
loans
goods
from
broad
a
restraint
o
our
com¬
modity,
of
away
point of view of the
a loan account, al¬
so, I believe that a policy of credit
ited supply of
scarce
tribution
and
management of
lim¬
a
on
From
us.
problem
the best of
at
inevitable
make it clear that I
every
view, this is all to the good.
■
has been to
of
the
general credit policy is a perfect
applied by all-know¬
even
officers,! deals, acquisitions,
difficulty for
the
we
I would not want to suggest that
this; agrees credit
for junior credit borrow¬
ers; and answers the charge that credit restraint has increased
the public debt's cost and produced excessive
earnings.
a
standards should not be relaxed,
for
if
mechanism
see
is
that
Perfect Mechanism
a
of the present
a
"downside"
any
follows
temptation toward a downgrading
in lending standards in a period
of prosperity.
satisfactory environment, difficulties and criticisms con¬
fronting bank lending officers in the past 2y2 years are sifted
by Mr. Dreibelbis in looking at credit problems and questions
but
on
It
interested in promoting sound
and sustainable economic growth,
are
The
and near future. The noted banker doubts small
borrowers have been discriminated against, but would like to
17
(2289)
and
American
traditions
are
en¬
The Commercial and Financial Chronicle
18
.
.
.
Thursday, May 16, 1957
(2290)
non
Summer Course on
Lee, Jr., American
change.
,
Quoted
Capital Formation
sixth
annual summer
the Economics of Cap¬
its
on
course
Formation, dealing with the
nature and operation of securities
ton &
analysis. The
in New
York.
er,
Philipp H. Lohman. The
will give graduate or un¬
dergraduate credit of six semester
hours.
H.
Growth
Formation
Rails—
the
Hayden,
& Co.
Rating—Edmund L. Voge-
—
ing
Carl H.
Liability Composition—Charles A.
Hutzler.
Agemian, Chase Manhattan Bank.
Corporate
and
Growth
Government
vestment
Oberg,
Steel
Browne, Kaiser Industries
Corp.
National
Investment
—
Harold S.
of
Association
Factors
the
in
An¬
alysis of Public Utility Securities
—Theron W. Locke, Goodbody &
—
Paul B. Harman, Merrill
Lynch, Pierce, Fenner & Beane.
Evaluation of
an
Oil Company—
McGinty, Moody's In¬
vestors Service and Participation
in Canada's Growth through In¬
vestment in Canadian Securities.
Economic
Growth
in
Canada
Thomas
E.
Since 1939—James R. Clarke, Do¬
minion Securities
Co.
Companies.
Jr., Bache & Co.
Evaluation of the Paper Indus¬
Field includ¬
Analysis of Its Assets and
Important
Importance of In¬
Companies
an
gan,
Corporation.
$105 for the six
Registration fee
for all students not previously en¬
rolled at the University of Ver¬
for non-residents,
hours.
semester
A $50 deposit will be
$10.
mont,
required by June 1.
Rooms
available
are
the
at
Students who plan
Hotel Latham.
stay at the hotel must pay the
University of Vermont $84 for
one-half a double room with bath,
to
nights
40
Single
questions about:
Lockheed Management answers your
$2.00 plus 5% city
16
to July
26.
at
June
from
tax
available
are
rooms
at a
higher rate. Tuition and room fee
must be paid to the University by
June
14.
Lockheed's Missile Business
Subjects included in the course
are:
Role
of
Process
in
Industry
Financial
of
Formation—
Capital
Philipp H. Lohman.
Fi¬
Recent Trends in Corporate
F. Power, East¬
nancing— John
Co.'
&
Securities
Union
Dillon,
man
...
Venture
James T.
Investment—
Hill, Jr., William A. M.
Capital
Burden & Co.
*
Economic Outlook
—
Harold,X.
Schreder, Distributors Group, Inc.
New York Stock Exchange and
the
Economy—Edward
American
Vice-President
C. Gray, Executive
1*
How much missile business is
Lockheed doing?
York
Stock
Organization
Exchange:
H.
Member
Its
and
Firms—John
Its
New
Schwieger,
York Stock Exchange.
Role
—Edward
&
Co., Inc.
Atomic
for
Systems Division, which
began functioning as a separate division
in
multiplied its sales seven times
Banker
Blyth
Glassmeyer,
Outlook
Lockheed's Missile
late 1953, has
Investment
the
of
Energy—
Paul F. Genachte, Chase Manhat¬
tan Bank.
Floor Procedure and Round-Lot
in the past two years.
Sales in 1956 were $53
million; current backlog is in excess of $36 mil¬
another $50 million is in final nego¬
lion ; and
tiation. Sales forecast for 1957 : $75
million.
son,
Exchange—Robert J. JacobBenjamin Jacobson & Sons.
Odd-Lot
York
Trading
New
the
on
York Stock
Exchange—Phillip L.
West, New York Stock Exchange.
Put and Call Options—Herbert
Stock
M.
2.
What is Lockheed investing in new
Market
Loeb,
E.
Outlook—Gerald
F.
Hutton
Com¬
&
missile
facilities?
During 1955-56 Lockheed's Missile Systems
Division
and
quadrupled its work force to 5,000,
more
than doubled the space
occupied by
equipment, shops and
offices. By the end of 1957
this division will be
operating $30 million worth of facilities and
pany.
Analysis of the Technical Action
of the Stock Market—Edmund W.
Tabell, Walston & Co., Inc.
Financing
Stockholder
Company
Relations of
John
—
American
J.
Telephone
a
and
Listed
Scanlon,
and
Tele¬
of
the
rare
materials, rock¬
automatic data reduction, and outer space
theory and its applications.
For
security
reasons,
15 contracts
can
only 3 of the Division's
be disclosed: One is the
Polaris, the U.S. Navy's intermediate-range
launched
sonic ramjet test
California.
More than a third of its 905,000 square
space now
in
use or
feet of
under construction is for
missiles which can be
parachute after each flight, un¬
like most missiles,
and re-used—thus saving
the Air Force $350,000 on every
flight. Third
the X-17 three-stage rockets,
which weigh
are
six tons and
are as
tall
as a
four-story build¬
ing. The X-17's mission : to obtain important
data about the
re-entry of long-range ballistic
missiles into the earth's atmosphere from
space.
It is
a
outer
key link in our nation's ballistic
missiles program
(which includes the Atlas,
Titan, Thor and Lockheed's own Polaris).
manufacturing, ideally suited to large volume
graph Company.
Role
equipment at its three present locations—Palo
Alto, Sunnyvale, and Van Nuys,
Philosophy
and
etry, electronics, human capacities, high-speed
recovered by
its laboratories, test
Filer, Filer, Schmidt & Co.
ultrasonic aerodynamics,
new
from submarines. Second are the X-7 super¬
Stock
Exchange — Stuart
Scott, Jr., Carlisle & Jacquelin.
Listing of Securities on the New
problems,
Fleet Ballistic Missile—which can be
Trading on the New York Stock
Exchange—David Scott Foster.
Specialist on the New York
Stock
altitude research,
heat
of the New York Stock Exchange.
New
Securities
and
Ex¬
change Commission in the Capital
missile production.
4.
How does Lockheed's
position in the missiles
Formation Process—James C. Sar¬
field compare
Commissioner of the Secu¬
rities and Exchange Commission.
gent,
Stock
Ticker
and
Quotations—
3*
What contracts does Lockheed
presently have
Philipp H. Lohman.
Economic
of
the
American
•—John
Stock
and
Social
Functions
Stock
Exchange
J.
Sheehan,
Exchange.
Listing
American
-
American
of
Securities
on
the
Stock Exchange—Mar¬
tin J. Keena, American Stock Ex¬
change,
Floor
Procedures
Bellone,
American
—
Arthur
Stock
A.
Ex¬
change.
Outside
Supervision
—
H.
Ver¬
In 1956,
the
Lockheed Missile Systems Division
and engineers are
with other airframe manufacturers?
after only 3 years as a separate divi¬
sion, Lockheed Missile Division sales exceeded
in the missiles field?
missile
Indus¬
try
Position of the Chase Manhattan
Bond Market—
Jonas H. Ottens, Salomon Bros. &
The
Donald
Stone
Bank in the Banking
Securities
Registrations should be filed
and the Money Market—Lawrence
with Dr. Philipp H. Lohman, 147
G. Ritter, Federal Reserve Bank
Waterman Building, University of
of New York.
Vermont, Burlington, Vt. Tuition
for residents of Vermont is $60;
S.
for
Bretey,
lius, Moody's Investors Service.
Madden, Federal Reserve Bank.
U.
Outlook
R.
Federal
Reserve Bank.
Policy
and
The Chase Manhattan Bank.
Bond
the Credit
Olsen,
the
Auto Industry—Charles N. Mor¬
The
Pierre
Federal Reserve and
of
tion.
Importance of Re¬
Market—Leif
Evaluation
Relation to Investment try—Philip E. Albrecht, Merrill
Vicinus, Wall Street
Lynch, Pierce, Fenner & Beane.
Management Corporation.
Organization and Outlook for
Role of the Analyst in the Se¬
Kaiser
Industries
Corporation—
tirement Funds—C. Jerome Web¬
It will be di¬
Planning and Its Tax As¬
curities
I nd ustry — Lloyd
S.
William R. Coughtry, The Lehman Corpora¬
—
Cowie.
the
and
Banks
Companies
Electronics—Harry M.
Sibley, International Business Ma¬
chines Corporation.
in
Direct Placements with Life In¬
Philipp H.
surance
Commercial
IBM and
Corporate
J. Bryson Aird, Chase
—William W.
Money Market—H. C. Brewer, Jr.,
National City Bank of New
rected by
course
—
Estate
pects
First
joint project of the University of
Vermont and the New York Fi¬
nancial Community.
of the United States.
Market
Lohman.
June 17 to July 26 as a
York City
G. A. Sax-
Co., Inc.
Money
be presented
will
course
-
-
Markets—Carl Stolle,
—
Manhattan Bank.
loy, The First Boston Corporation.
Investing
for
Life Insurance
Companies — William C. Cowie,
Equitable Life Assurance Society
Walk¬
National Quotation Bureau.
Over
the
Counter Securities
ital
markets and security
Over-
the
er,
University of Vermont will
The
hold
in
Markets
the-Counter Markets—L. E.
Trustee
Taylor, Chase Manhattan Bank.
Revenue Bonds—Albert F. Mil-
the
of
Functions
Municipal Securities—Harold C.
Stock Ex¬
/
scientists
Department of Defense's entire expendi¬
tures for missiles
just six
years ago.
engaged in 15 separate
projects—involving research and
missile
major contractor on one of the nation's 4
physics, high-
significant long-range missiles of the future.
development in 40 areas of advanced
technology, including : nuclear
Further, the Missile Division has become a
Volume
185
5638
Number
.
The Commercial and Financial Chronicle
.
.
the
Oil Mont
Broadcasting
outstanding stock of WNEW
Inc.,
operator
of
radio
WNEW
Station
WNEW, New York
City, for $5,160,800 by payment of
erate it
270,147
shares
of
Du
and
$2,932,087
in
cash.
tion
Du
discharged
rights to sub¬
scribe
for
314,812
additional
shares of capital stock at the rate
ties and obligations of WNEW, in¬
of
one
new
shares
price
10,
1957,
share
held.
is
$7
Mont
stock
Mont
Combined
for
Intaddi¬
r
the
1956
liabili¬
results
weeks
52
and
approximately
of
Dec.
the
$1,760,000.
12
of $9,-
revenues
the
December,
A. G.
underwriting
are:
Broadcasting
Corp.
Kerb
ciated
W.
Jacobs
now
.
;
Of Midwest Exchange
A
is
Allyn Slated
19
For Board Chairman
.
'CHICAGO, 111.—Arthur C. Allyri
Chicago has been named of¬
of
Oppenheimer Adds
v
Mont
Included~ in
McCue & Co., Inc.
ficial
asso¬
the
with
Oppenheimer & Co.,
i25 Broad Street, New York City,
incorporated in August, 1955,
was
rights
|
31, 1957 show
757,739.
Du
in
Jones,
Kreeger
&
Hewitt; Hallgarten & Co.; Hemp¬
hill, .Noyes &.Co., and Charles J.
29,
for
Jan.
stockholders
group
Mont
Du
ended
WNEW
months ended
stockholders for advances made by
them i to; WNEW," amounting
to
three
The
i
division of Du Mont.
a
cluding liabilities to WNEW pro forma gross
subscription
share.
a
each
for
The
as
its
1955.
*
Mont
May
to
Washington, D. C. The
intends to dissolve
Broadcasting, Inc. and op¬
company
Broadcasting Corp. is
offering its stockholders of record
on
in
WTTG
Broadcasting,
Offering Underwritten
Du
(2291)
candidate
Board
of
for
Chairman
Governors
Midwest Stock
„
v.
<•
i
»
,
of
the
of
:
..
■f. Proceeds from -the- present of¬ as a wholly-owned subsidiary of
•Exchange,
members of the New York Stock
Reuben Thorfering, which were advanced to Allen B.: Du Moht Laboratories,
Exchange, as a registered repre¬
Du Mont by Kuhn, Loeb & Co. Inc.0 The ^latter,
in
sonf Paine,
September, sentative.
^
'.y; =,'* •
' Webber, Jack¬
and Carl M. Loeb, Rhoades & Co., 1955, transferred its local televi-r
were used to pay a portion of tlie
son
"sion broadcasting business, include
& Curtis,
offering of 231,012 shares.
The cash required for the
•
Hildebrand Opens
Chairman of
purchase. trig. Stations WABD and WTTG, j
remaining 83,800 shares are being The balance of the
(Special to The Financial .Chronicle)
:f ;: •the Nominate
required cash to Du Mont, Broadcasting in ex¬ { r
subscribed for by Paramount Pic¬
SANTA
was obtained through bank lo£fisr change for all of Du Mont BroadJ ROSA, Calif.—George i n g Com¬
will expire at 5:00 p.m.
(EDT) on
May 27, 1957. Kuhn, Loeb & Co.
and Carl M. Loeb, Rhoades & Co.
head
a
group
underwriting the
•
tures Corp., a
corporation.
Du
Mont
mittee,
a n-
•n
e
stockholder of the
H. Hildebrand is engaging in a
Du
Mont
presently operates |castihg!s coital stock.- The ahares
■'; %%%%% television broadcasting S t a t i o n so received; by. Aheip B; Du Mont- securities business from Offices at
"
,
on
May
in
WABD
acquired
14
New
York
City
Laboratories,
and
Inc.
4000
spun-off
were
o
u
n
c
d.
Nomination of
Montgomery Drive.
•
official
the
slate
is
tanta¬
mount to elec¬
which
tion,
will
Lockheed's: work, which at first concentrated
on
study
in varied fields,
programs
Because this diversification, among the widest
in the
is
now
'
advanced articles
shifting to work
on very
with large volume
production prospects. Long
be
Mr.
,
needed by the
Armed Forces in the
has
limited-use missiles of today are
out
of
production, Lockheed's
will be in
ahead, military aircraft production will
obsolete and
new
production.
How will the
ties
growing emphasis
for-defense affect Lockheed's sales
on
cargo
in production.
missiles-
and
Technology
•*
Newest of these: the starliner,
At the end of 1956, Lockheed's
divisions
These orders
backlog for all
are
manned aircraft
before and the largest since mid-1953.
of
H.
O,
a
third term
of
the
ex¬
Chicago nominees for Governor,
.
to
commercial jet flight.
evidence of the wide oppor¬
well
as
as
for
Of this backlog, 52% was Air Force orders,
deliver the people and goods
20% Navy, 28% commercial.
the
ever-expanding air
three
serve
years,
are
J.
Buhler, floor member;
Walter W. Cruttenden, Jr., partner
of
Cruttenden,
Podesta
&
Co.;
William E. Ferguson, partner of
Thomson & McKinnon, and Henry
jW. Meers, partner of White, Weld
&
of military
planes that will
Co.
E.
%
/
Other
•
the year
Barnes
Vice-Chairman
•each
schedules in
tunities for continuing production
$1,597,523,000—up 31% from
was
P.
been renominated for
delivery; the prop-jet electra, starting in
the coming decade of
will add to it..
Bankers
Co., Kansas City, Mo., has
Walter
of business, this new emphasis
Vice-Presi¬
past
Investment
of America.
Fredefic
as
luxury liner, currently
needs of short-to-medium range
Lockheed's rising volume
and
the
Association
production and designed to fill profitably the
Far from reducing
Mid¬
change.
in
tion of aircraft?
of
Peet &
world's longest-range
and produc¬
are
the
Exchange since 1948.
been active in the securi¬
trustee, of.the Illinois Institute of
was
transports
Co., which
of
member
the
for nearly 50 years,
widely
known
for
his
underwriting activities. He is a
ill the company's his-
passenger
C. Allyn &
a
of
banking
is
dent
$444,871,000, the largest
Chairman
is
investment
business
and
year-end, Lockheed's commercial backlog
r'
,
Stock
He has
Commercial business is expanding, too. At the
missiles
tory. Both
5*
re¬
main high at Lockheed.
of the subsonic, short-range, and
Allyn
been
1
•
firm of A.
years
west
after many
3.
nationwide
industry, includes several types most
C. Allyn
A.
held
June
on
nominees
Gunn,
are
Clemens
Vice-President of Cun¬
ningham,
Gunn
&
Carey, Inc.,
Cleveland, B. Franklin Houston,
of the world in
age.
Vice-President
of
Dallas
*
Union
Securities
Co., William S. Macfadden, partner of Piper, Jaffray
&
Hopwood,
Minneapolis,
and
Morris M. Moss, partner of Morfeld, Moss & Hartnett, St. Louis.
Howard P. Morris, Vice-President
of Taussig, Day & Co., Inc., St;.
Louis, has been nominated to con¬
tinue serving an unexpired term
due
to
a
resignation from the
Growth of Lockheed Missile Systems Division:
SALES
*
PLANT AREA*
WORK FORCE
5
60
board.
-
..
■,
r-
Messrs.
■
}J
50
■
/
J
f
4
<
i
-
i
.■.
to
serve
the
three
-
400
year-
9
9
O
t
elected by
are
.chosen each year.
9
X
»
t
30
the
Eight Governors and
a
!Chairman and Vice-Chairman are
9
<
if>
at
terms.
9
o
z:
9
i
i
i
.■
...
■members
f
f
i
</)
:
.....
all serving on
are
Governors
Governors of the Midwest Stock
Exchange
t
9
9
9 "
#
of
Board
present time!
4r
♦
9
40
.the
LT
<
4
Barnes, Buhler, Fergu¬
and Morris
son
9
X
Boston Inv. Glub
9
»
t
en
i
14
-
To Hear
a
t
z
/
20
D
■A
/
♦
<
t
.
'
■
BOSTON, Mass.
'
1
9
V
9
/
1954
•
■
•,.
.
/
,,
9
9
9
9
>
a
9
I
1
1955
1956
1954
1956
1955
5:15
Club.
9
1954
1955
1956
^Square feet of Plant Area in use and under construction.
on
Tuesday, May 21, 1957,
Boston Yacht
will be Paul
Vice-President of
Middle South Utilities, Inc.
Mr.
Hallingby has chosen as his topic
"Atomic
Energy
and
Electric
Powei1," a discussion of the* im¬
pact of atomic energy upon the
at
9
*
9
,
meeting
9
9
9
9
r ■■
The Boston
Investment Club will hold its next
9
9
10
—
9
9
9
/
Hallingby
"
X
at the
p.m.
The
Hallingby,
electric
speaker
Jr.,
utility industry.
-
j
■
Following graduation from the
Harvard Business School in 1942,
Mr.
Hallingby served in the Naval
emerging with the rank
Air Force
LOCKHEED
means
leadership
he was associated with
F. Hutton & Co. and the First
the
E.
war,
Boston
One of a
series of
messages
addressed to the financial community of America
Commander.' After
Lieutenant
of
•before
ties
in
Corporation in New York
joining Middle South
President.
Utili¬
Assistant to the
He was elected to his
1952
as
in
June.
1955.
-
20
The Commercial and Financial Chronicle
(2292)
entered the
Harris
Mr. Yager was
NEW OFFICERS,
REVISED
an
1956.
ie was
ated
In
of
Bank
<Jity
Manorial
first
on
May
9 an¬
promotion of James
York
New
the
nounced
from Assistant Cashier
Assistant Vice-President.
Mr.
S.
Deely
to
Deely is in the Bank's Domestic
Division and is assigned to the
England District.
time, City Bank
New York-New
the
At
same
Farmers Trust Company
promoted
from
Assistant
John
Stevens
W.
Officer
Trust
William
F.
Yandell
M.
were
m
*
-Delegates
ap¬
York
Island
proval
of
ap¬
Chase Man¬
metropolitan branch sys¬
tem. As of March 14, 1957 Staten
Island National reported total as¬
sets of $35,061,160. There are 153
people on the staff.
hattan^ 35
is
eight
March 31 the Bank reported
assets of
the
of
call
for
the
basis
an
total
proposed merger
six
share
each
National.
on
of
Outstand¬
13,000,000 shares of Chase
capital stock and 15,-
are
Bank,
sued
National.
G.
Island
staff of the Staten
National
to
serve
in
tomers
efficient
the
tV.
Bank,
'
The
been
as
Trust
he
friendly and
E.
ViceTrust
Company, New York is announced
by Horace C. Flanigan, Chairman
his
the
credit
Chatham
and
Phenix
in
1925.
joined
of
the
National
Company,
facturers Trust
merger
and
department
Trust
City
York,
New
Bank
He joined Manu¬
Company, with the
of the two banks in 1932.
,
si:
Junior
New
of
Bank
presented
was
Corn
the
Exchange
Ba'nk
of
of
seven
to
4
County
con¬
Achieve¬
ment, to Isaac B. Grainger, Presi¬
Exchange
dent of Chemical Corn
Bank.
Junior
First
Bank of New York
in
1950
under
Chemical
It
Corn
offers all
New
York
companies
Achievement
organized
guidance of
Exchange Bank.
was
the
banking services for
Junior
—
Achievement
checking
accounts,
>
f
l-;
Sehwarz
The
First
Company,
sorbed
Electric
cated
one
Trust
and
First
N.
to
of
New
York
Corp. first
Gas
&
the
issue
100.81%
at
competitive
indi¬
for the
the
from
sale
of
bonds will be used in part
discharge $20,435,000 of shortobligations, the proceeds of
company's
construction
and the balance of which
program
was
used
charter to "The
Bank,
.
Na¬
at
general
redemption
prices
redeemed
has
the
Lake," Cedar
County, Ind.
The
106.55%
for
those
prior to May 1,
for those redeemed
1958,
capital of $150,000 to par
on or
of $150,000.
The after May 1, 1987; and at special
Ralph A. Klaas and redemption prices ranging from
Cashier, William H. Burns.
101.55% for those redeemed prior
a
is
if.
E.
*
tie
to
Swearingen, Executive
Vice-President
of
Oil
(Ind.)
Company
a
the
Standard
has
been
Director of the Ameri¬
National
Bank
and
Trust
Company, Chicago, 111.
*
*
ijj
Vincent Yager, 57, Senior Viceand
Director
of
the
Harris
Trust and Savings Bank,
Chicago, 111., died May 7 after a
brief illness.
very
After
the
from
surplus
President
working
as a
reporter for
Marshalltown, Iowa, "Times-
Republican" and
Press
sports
as
an
Associated
correspondent,
change
that
could
continue
Surely
expect temporary
we can
periods ot let-down and readjust¬
ment. But if the years ahead are
be
to
of
me
growth,
we
ones
to
seems
will have to
then
it
re¬
thinking away from the
problems of depression and defla¬
tion to those
of prosperity and
our
Gabriel
Hauge, Special Advisor
President, expressed these
thoughts well in a speech last
March. Among other things, he
said: "Over the past quarter cen¬
the
he
May
1,
redeemed
1958,
on
or
to
for those
May 1, 1987.
par
after
The company provides electric¬
ity and
and
gas in
western
the central, eastern
of New York
parts
State.
The territory served
prises
an
area
of
com¬
approximately
.17,000 square miles with
of about 1,400,000.
a
popula¬
tion
in
$82,735,493
$11,585,940,
operating
and
1955.
net
1956
and
*
of
limited indeed. That
contribute to apprehen¬
sion in
many
quarters that in
seeking this goal we will cause
deflation, stunt economic growth,
generate unemployment, and im¬
pede the satisfaction of essential
wants. It is clear that the deep
.
very
.
.
psychological
state of affairs
normal
if
inflationary
not
flationary, if we
areas
the
of
as
(but)
.
which
being de¬
that all
assume
economy
must
per¬
shall
.
.
objective, we
resign ourselves to
invariable
the
as
have to
If,
decade
$11,030,385 in
.
sistently operate at full capacity,
and if we require sellers' markets
time
total
.
define any condition
we
is
.
of
Prosperity
If
we
to
are
growth
as
as
a
national way of life.
it
ahead
when
we
to me, the
promises to be a
seems
shall
be trying to
than
under-use
the economy, a decade
marked (by
over-use
rather
to
With
have
time
a
of
ahead,
subject to tem¬
porary adjustment
periods, then
clearly inflation is our problem.
The vigor of the American
pro¬
ductive machine will
problem
the
as
other
mitigate the
capacity expands. On
hand, we have many
institutional
pressures toward
combined with
policies
some
and
and
other
inflation. These,
cf
public
our
thinking,
promise
maintaining
serious difficulties in
the stability of the dollar. And we
should all realize the stake
every¬
one
has
in
laboring
the
others
just
school
savings
do
:
.
the
,
.
people,
many
both in government
and
industry,
have
to
accepted the idea
little inflation is inevitable
a
and
have
stake in
more
than
Unfortunately,
seem
aver¬
accounts,
dollar
wealthy.
that
The
pension
teacher
and
salaries, the
much if not
as
dollar.
his
with his insurance poli¬
and
sound
a
with
fixed
on
age man
cies
stable
a
man
desirable to keep the
machine going.
Some¬
they forget to look forward
even
economic
how
and
what
see
a
little bit of creep¬
ing inflation can do over
period. A little inflation
2%
a
would
year
a
of
the
cut
short
only
pur¬
chasing power of the dollar in
during the course of each
generation. I think any reason¬
half
able
person
little
would
inflation
on
that
agree
a
controlled
a
.
.
to
with
de¬
Prosperity is still viewed (by
many) as a temporary and ab¬
.
tQ
of $76,796,316
of the
trauma
pression years has not been fully
healed by the economic success of
the war and the postwar period.
income
compared
income
less normal conditions has been
amounted
net
revenues
our
inflation
Total operating revenues of the
company
tury,
time
overloading of the
threatens
widespread
Inflation
fund,
inflation.
to
from
an
Problem
built-in
for many years.
fact may
ranging
a
and
Jn at period of rapid growth
500,000 for 1957 and $36,200,000
for 1958, and it is expected that
Lake,
and
we: are
economy
of
or
Light & RR. Co. bonds.
company's construction ex¬
penditures are estimated at $32,-
tional Bank of Cedar
Lake
period
a
7 teGhboidgical
advances,
many other factors indicate
and
and/applying
restraints
when
can
Water,
ab¬
First
is
case
The
th$ payment at maturity on
Sept. $ 1956, of $4,994,000 Elmira
.
a
better
this
that
time
But
experience with this
problem
of
seeking prosperity
with price stability under more
for
Morrisville, N. Y. effective May 1.; abouj; $8,000,000 will be required
0
£
from additional financing in 1957.
On
May 1 the Office of the
The new bonds will be redeem¬
Comptroller of the Currency is¬ able at the option of the company
sued
much
be.
record
orient
proceeds
new
a
developing
prudent
tomorrow's
will
growth.
Large
in¬
in population, widespread
and
purchasing
power,
creases
which to the extent of $15,441,000
were used in connection with the
■
'...
Y.,
conditions
made
wealth
,
term
been
Deposit
National
be
what
l<now
I
tremendous
coupon.
Net
the
i,-',.
"
;\^7'
Syracuse,
the
$25,000,000
awarded
at
Queens,
Bank,
if.
■
not
believe
I
mortgage bonds, 4 % % series due
1987, at a price of 101.55% to
yield
4.53%.
The
group
was
Queens
•
:!:
■
has
the
of
Savings
President
The
licly
State
offices
N. Y.
can
Junior
■
with the needs of the situation.
Bonds
State
ap¬
Suffolk
of
i-v.,y
M.
,/
3
page
Onr Future Economic Pi oblem
Comp¬
The Bank
Blyth & Co., Inc. and associates
vesterday (May 15) Offered pub¬
bidding at
Trustee
a
from
a
& 0as
of the
the
of
with
Bank
<l
•
William
elected
of
u^ess
price rises."
had
the
membei
a
Suffolk
••
elected
plaque by John D. Kerr, Execu¬
Director
V.
Prosperity and Inflation Is
the
by
New York State Elec.
7
■■ ■»
John
recognition
Continued
quires
a
coming Friday, May 17. Banking
operations begin on Monday, May
secutive years of sponsorship, the
award was given in the form of a
tive
as
Directors
26
Blytl^ Gitoiip Offers
of the largest state banks in Suf¬
folk County opens its sixth office
at Ocean Beach, Fire Island this
Bank,
York.
In
confirmed
Y.
of
Bank
sponsoring
Achievement
York
Chemical
New
*
*
for
award
First
N.
York
He
was ' appointed
an
Assistant
Manager in 1941 and an Assistant
Secretary in 1942.
v
At present he is assigned to the
bank's Commodity Loan Depart¬
ment located at 177 Montague St
Brooklyn.
•
An
Frederick
ef¬
economic
Gowan, President
Bank
of
Suffolk, Bay
State
Shore,
V
Mr. Veevers began his banking
career with the Merchants Bank,
New
of Idaho,
the
father
20.
of the Board.
Dunkirk,
Lyon
New York—Treasurer.
do
Albert J.
The State
Miles
A.
Cashier, R. M. Ringman.
Riverhead, N. Y.
:Jj
of
William
Lyon
economy,
and a cheap money,
capital of $250,000 and a inflationary national policy. This
surplus of $150,000.
The Presi¬ is not in keeping with our tradi¬
dent is C, A. Monroe and the tion nor do I think in
keeping
Jr.,
counsel,
was
April
on
has
pointment of Mr. George Cushman
in the past."
of Manufacturers
President
Mr.
Board
Assistant
the
Idaho
and
Idaho,
title Bank
new
ter
i-i
of Riverhead
an
Eastern
of
Bank,
National
Idaho
troller of;the Currency.
founder and President.
a
cus¬
appointment
State
First
Caldwell,
J.
Treasurer, Society for Savings, Hartford, Conn., to be President
of the Association for the
ensuing year. Other officers elected
were:
William A. Lyon, Chairman of the Executive
Committee,
Dry Dock Savings Bank, New York—Vice-President; and Freder¬
ick V. Goess, President, The Prudential Savings Bank,
Brooklyn,
7- \
the
Idaho,
and
$
Middendorf,
which
of
con¬
$
Charles
stock
ter of the Continental State Bank
14
trustee and Vice-President of
bank's
as
$
,Vv
Continental
Bank
Vice-
and
Company
For 30 years
course
same
its
value of $25 per share.
par
•••"'
Bank,
Brooklyn, N. Y„ died on
May 7 at his home in Garden City,
N. Y. at the age of 85. '
of
manner
Veevers
&
;
par
a
shares of old
Boise,
National City Bank
in its foreign de¬
Frederick
the
would
Company
tinue
Bank
a
The
Bank,
of
j
"The present
with
shares
10,000
.
retired lawyer and former offi¬
cial of the East New York Savings
Island
Staten
of
7
:
increased
Texas,
20,000
its
with
'
shares
'
New
Trust
Manhattan
000
Worth,
of
for¬
were
V
value of $12.50 per share in place
a
Chase
of
shares
for
Manhattan
Staten Island
ing
On
exchange of stock
of
August M.
elected Vice-
Both
it
capitalization from
$450,000
to
$700,000 by the sale of new stock.
$125,000 of the proceeds will go
to capital and $125,000 to surplus.
The 10,000 new shares were sold
at $25 a share. The Bank also is¬
and
been
.!»:
$7,529,490,137.
Terms
Ft.
partment.
Brooklyn.
in
have
*
The Union Bank & Trust Co. of
*
Clerke
B.
Strung
14 in the
Richmond.
in
none
V''"7'*
managers of tomorrow — an
understanding of the American
free enterprise system."
Colonial
Man¬
in
of
"
youth—the workers, investors
our
years with the
of New York,
93 offices
36
in Queens,
and
Bronx
There
City:
Bank
York.
Mr. fective
May 1.
Dowling will be in charge of the V'
7 '7'.#
*
*
newly expanded foreign depart¬
The "First
National
Bank
of
ment.
Mr. Dowling came to the
Palmdale," Palmdale, Los Angeles
Bank
after
11
years
with the
County, Calif, was issued a char¬
Richmond, to
York
National
the
of Mutual Savings Banks held in the Hotel Statler,
Buffalo, N. Y., May 6-8, elected Charles J. Lyon, President and
value $20).
par
provides
leadership, advice and counsel for
the
learn-by-doing program of
Junior Achievement. Buckling, in
change
hattan's
New
"Chemical
John Dowling was elected
would join the five
offices of the Staten Island bank,
Chase Manhattan has
—
Bank
President of the Pennsylvania Ex¬
The merger
in
of
Association
7;
Falls, Idaho, merged under char¬
ities.
in
Exchange
Assistant Vice-Presidents.
Clerke, since 1950, has man?
aged the Bank's Fifth Avenue of¬
fice.
Mr. Strung has been in the
mortgage department.
proposed merger must then
be approved by stockholders of
both banks
and
by New York
State and Federal banking author¬
Banks.
Conference
$23,000,000 by
merly
The
National
City
Savings
Annual
capital stock from $21,000,000
a stock dividend
effective May 3. (1,150,000 shares,
to
Mr.
Bank, New York.
all
The citation reads
Corn
Bank, New York.
(;o merge the
Chase Manhattan
the
Ex¬
Presidents of The Bowery Savings
plan
a
with
Bank
14 voted
May
on
Corn
"
it
37th
the
Mutual
Houston, Texas increased its com¬
the
Chemical
of
5*!
National Bank & Trust Company,
New
under
,
to
of
mon
guidance
Paul
Staten
First
operated by members of
Achievement
«
tt
•
.
.
change Bank staff members.
*
the
of
Directors
is
bank
Junior
Officers.
pointed Assistant Trust
,
other financial
and
and
Lingua,
M.
George
Gallo¬
A.
Frederick
President.
way,
Vice-
Assistant
to
witnarawais, loans,
services. The
and
ucposiw
and
and
Association
position of senior Vice-Presi¬
dent.
The
Lyon named President, William A. Lyon ViceFrederick V. Goess Treasurer, of National
President,
December,
elevated to the newly cre¬
January,
n
Thursday, May 16, 1957
.
Elects New Officers
J.
Charles
Jirector and Chief Credit Officer
CAPITALIZATIONS
.
Savings Banks Assoc.
Assist¬
.930, Assistant Vice-President in
x933, Vice-President in 1943, and
Bankers
and
ETC.
elected
ant Cashier of the Harris Bank in
CONSOLIDATIONS
NEW BRANCHES
National
1920.
.n
News About Banks
banking business with
and Savings Bank
Trust
.
basis
just is not possible.
Once
understood, the public would try
to
hedge
against
it.
Certain
groups might think,
because of
their superior
bargaining power,
that they can protect themselves
from
little
a
would
be
inflation.
But
it
only
temporary and
contrary to all the evi¬
of history that we could
would be
dence
have
a
little
inflation
without
eventually leading to the destruc¬
tion of
our,
economy as we know
it.
■
This
problem
understood
more
is
coming to be
and
more.
shortage rather than a surplus
of labor, then the objective
of
the Socialistic countries in
prosperity with price stability re¬
have
Even
a
taken
fiscal
and
Europe
monetary
Number 5638
185
Volume
combat
to
measures
.
.
.
The Commercial and Financial Chronicle
increase
inflation;
it
well, what
tunately,.
discipnne
spending.
tax structure
size
of
high.
be
cannot
civilian
York
York
City
members
Stock
of
Exchange,
the
an¬
become
associated with
the
firm.
Mr.
by the
inflationary
is
With
Hemphill, Noyes
formerly
Stuart & Co. Inc.
with
Monzani
Halsey,
was
Noyes
&
bers of the New York
Kuhn, Loeb & Co.
nounced that John F. Monzani has
utilized
economy,
in itself.
New
goods and services
on
of
Kuhn, Loeb & Co., 30 Wall St.,
New
The very
spending,
government
much of it
that
Joins
seem
to
from big government
Our budget is large and
pressures
our
yet
not
standard
Hemphill,
the price of selfhalt
inflationary
pay
real
Unfor¬
means.
do
we
willing to
the
living.
bitter experience has taught them
too
in
(2293)
Co.,
exchanges,
BOSTON, Mass.
announces
that
Securities
formed
Office
organization
vestment
a
Amott, Baker Adds
Livingstone
registered
rep¬
resentative in their New York of¬
fice, 15 Broad Street.
He was
formerly associated with Merrill
Lynch, Pierce, Fenner and Beane.
&
Corporation
with
Richard K. Davis has joined their
as
—
Samuel Jacobs is
now
associated
Stock Ex¬
change and other leading securi¬
ties
Forms Livingstone Sees.
mem¬
offices
has
at
been
10
Post
Square to continue the in¬
business
Company.
of
Officers
Livingstone
are
M. Eli
as a
Amott, Baker & Co., Incorporated,
150
and
M.
Hite, Secretary.
Broadway,
New
York
Exchange.
Mr.
\'
Jacobs
was
formerly
Straus, Blosser & McDowell.
The current grass roots'
for holding the line is a
sign. Wc can only hope it
good
in
result
ment
of
effective
curtail-
ever-growing
V
expend- '
itures from Washington.
Praises Monetary Policy
I
The
tion
brightest side in the
is
in
policy.
has
in
stand
not
Reserve
taken
a
It is
of
;
heavy
very
of
Federal
result of
a
demands for credit
large
courageous
Today's tight money is
result
a
"
spixe
pressures.
action.
-jf
'
monetary
area
The
System
equa-
of
Federal
the
and
Reserve
excessive
in relation to
growing
supply of
but one still not large
enough to satisfy all demands. We
a
savings,
•
have
too
been
fast;
The
trying to do too much
than
more
Federal
afford.
we can
Reserve
wisely
expansion of
money supply to a moderate
has
held
the
down
level.
the
Increased
money: would
amounts
of
increase
not
the
production of goods and services
at present.
Wicn our labor force
.and resources being utilized so
•
fully,
additional
would
money
-only
mean
higher and higher
History tells us that ex¬
.prices.
cessive
credit
expansion
and
in¬
flation,
inevitably
lead
to
the
disaster of depression we all
very
want to avoid.
Consequently,
;
it
to
seems
me
that the bankers, so much a key
;part of our money system, must
stand together and support the
Federal
'. The
Reserve in its endeavors.
Federal
Reserve
.the job alone.
•
•
But
do
cannot
be
we can
sure
that if the Federal Reserve yields
to
the - pressures
to create ex-.v
cessive money,
xsibility
of
there is little pos- •
future
stable
And this restraint must
the
basic
control
ation, not from
"controls
,
from
cre¬
a mass
of selective
•
which peacetime experi¬
shows
ence
and
growth.
come
money
of
merely lead
ineffective
more
to more
controls.
■
-
•
These
pressures come from all
Powerful political factions
sides.
favor
Even
cheap
some
'economic
they
times.
of the Administration's
advisers, committed
to
are
all
at
money
as
policy of protecting
dollar, appear to
a
the value of the
waiver
•
at
times
resist
and
discipline of tight money. We
tight money being blamed
various
-industrial
the
see
by
labor
and
for
whatever
problems
having.
The Federal
'budget, with its absence of a large
cash
surplus in this period of
high over-all activity and great
groups
;they
are
prosperity,
seriously compounds
problem of applying restraint
the
the money market.
to
MODERN SCHOOLS IN THE WASTELAND
The Decade Ahead
If
the
decade
is
ahead
to
be
of growth and a high level of
activity, subject to temporary ad¬
justment periods, I suspect we can
one
look fonvard to
continuation of
a
the
inflation
for
credit
and
growth continued
riod
of
problem.
should
time
cessive
remain
heavy,
over
lead
may
optimism
ventures.
Demands
a
to
and
pe¬
ex¬
unsound
We
bankers, along with
lenders, will have a job to
do in putting our funds to work
wisely, progressively, and selec¬
other
,
tively to the mutual advantage of
our
present
ers,
future
communities,
our
own
and
institutions.
But if
custom¬
and
we
our
are
to
The
jungle yields to the
of
power
chinery. In the wasteland skilled
man
men
armed with modern science and
of Middle and North America
vantage point, then all of
do
part
our
fiscal
and
achieve
our
us
in supporting
policies
monetary
goal
of
must
sound
a
to
continued
ma¬
together
creating banana plantations and thriving communities. Well-equipped, airy
schools
bring the full benefits of education to the children of the workers, mold¬
ing the good citizens of tomorrow.
This
practical guidance will lit these youngsters for the tasks ahead, operating
farms, railroads and docks that their fathers carved from the jungle. They will
inherit
a
strong economy,
linking the rich lands of the Americas with the
kets of the world. The crops
tures to
The
make that
mar¬
of today bring the dollars, machines and manufac¬
bright future
a
reality.
Living Circle of trade and communication guards the prosperity of the
Americas. This free way
of life offers the only true security against communist
be blessed with
problems of pros¬
perity rather than problems of de¬
pression, as now appears from my
are
aggression.
United Fruit Company
City,
members of the New York Stock
Livingstone, President and Treas¬
urer
registered representative with
pressure
will
21
THIS
LIVING
CIRCLE
STRENGTHENS THE AMERICAS
United Fruit
Company lias been serving
usefully for 56 years—re¬
claiming wasteland, stamping out dis¬
ease, developing human skills, helping
by research, new techniques and trans¬
portation, to increase the production and
sale of bananas, sugar and other crops,
and expediting communications.
the Americas
with
Chronicle
The Commercial and Financial
22
.
.
1957
Thursday, May 16,
.
(2294)
and
the
should
away
a
The Use of
resources
from traditional self-
in the attitude of
wealthy depositors may in
tend to press the banks to go
change
-Several, trust funds, not
^
many
fact
liquidating short term credits to longer-term lending is en¬
dorsed by leading Economist in terms of safety and of eco¬
nomic benefit to his country's economy. Dr. Einzig writes from
London that "as far as Britain is concerned a run on the
banks is a matter of the past."
Trust Fund Plan
a
By ROGER W. BABSON
Bills
Treasury
Speculative Trusts
As Part of
most.
A
trend
their
type of loans that is needed the
Lending
By PAUL EINZIG
British commercial banking
employ
of
why
they
larger pro¬
in the
reason
no
not
portion
Extend Longei-Teim
This being so
Treasury.
is
there
British Commercial Banks
further in the direction of a more
college instructors
young
enterprising policy. Until recently
V'
Treasury Bills were only acquired
Babson who
sees
instructors.
f
i
*
their accounts coming on a sufficient scale to
part of the avert a failure which would be
year, in which case their hank Was damaging to the whole banking
willing to accomodate them during
cormfnunity.
I
the
busy
This state of af¬
season.
fairs continued for
ter 1945.
time
some
drawal without notice or at short
notice
Confidence in Liquidity
as a result of the de¬
from the cheap money
policy.
Although banks, accept¬
ance
houses and
issuing houses
ter increased
parture
1957-58, to succeed
its
is
simply
have
banks
as
inconceivable.
be
to
come
The
regarded
eternal, just like the
Govern¬
ment itself. From time to time dur¬
ing the inter-war period informa¬
Vice-President of the club; Henry
Lending-Pattern Changes
substantial
is only during the last year
or two that a change in their atti¬
tude became noticeable in this re¬
Under the influence of the
spect.
relative
sources,
sion
of
scarcity
of capital re¬
industrial expan¬
much
came
to be financed
bank credits. In
by
some
long-term credits for
means
instances
periods
up
to ten years were granted for spe¬
cific purpose such as the building
of
tankers.
short-term
on
the
other
credits
instances
were
granted
understanding that the fa¬
cilities
and
In
would
be
renewed
again
again. Had it not been for this
more
liberal attitude of the
industrial
expansion
banks,
would
have
been gravely handicapped by lack
of funds available for investment.
Owing to the high level of tax¬
ation, the volume of savings that
is
available
equities
or
for
investment
industrial
in
debentures
lias declined considerably. The de¬
ficiency
of
risk
capital
has
been
which
ered
banks
most
inner
such
could
having
very
out
reserves,
losses
without
had
be
even
serious difficulties.
Morton
H.
urer;
Vice-President
sist
First
the
of
National City Bank of New York,
that the Trustees
be held responsible for
provide
ever,
will
will
re¬
>
With Eastman Dillon
secret, but it is understood to be
substantial. Even the Labor
Government resisted, after nation¬
banks in difficulties.
could
Government
No
H. L. Mitchell
LEAKSVILLE, N. C.
is engaging in
ties
may
to
suffer
be
conditions
but
looked
the
its
depositors
after.
banks
culties
other
would
be
In
such
could
well
assisted
by
business
the
banks, the Bank of England
in
dealer
from
of
106
at
acting
and
formerly
was
a
a
as
He
bonds.
with
associated
John W. Yeaman.
These audits
in
N.
local
and
C.—Donald
stocks.
He
was
formerly with Powell & Co., Inc.
member
Winmill
of
the
&
New
Exchange, passed
Co.,
York
away
investing
looks
fortune by
Youth
of
America, especially as to new
developments and new industries.
I would also like to see one of
these
Trustees
young
a
woman.
President of the well-known
investment house,
A. M. Kidder &
Co., is a woman. In fact, the ma¬
jority of our nation's stockholders
women.
are
This
.
.r
*
is especially
.
.
Profits
Investing for
important for
in high income brackets
compelled to pay a tax
of 50% or more on general income
people
who
but
investing
are
would
need to pay only 25%
on
for
$10,000
with
this be left
of
forward
four
-
looking
trustees,
previous weeks this column leaving the remaining $40,000 in
how you can build a Trust Fund with a bank, to be
$10,000 up to $1,000,000 in 25 years operated in the usual- orthodox
shown
has
without borrowing any
in
their
to
the
and
Kleiner Exec. V.-P.
the
before
industries
new
brokers
on mar¬
be by investing
gin." This would
public woke up
possibilities.
To
Of Cantor,
accom¬
.
Executive Vice-President of Can¬
get competition between the dif¬
ferent Trustees. A bank does not
wish
serve
as
firm, has announced.
Mr. Kleiner is a member of the
to
This means
board
four individuals
Trustees.
should
individuals
be
and
a
Stock
May 7.
sit
based
should
on
secure
them
you.
instructors
such trustees.
more
paid
you.
This
interested
Having
a
a
will
in
Rapid
Cincin¬
the
same
Mr.
time,
Cantor
gene
M. Miller and Lionel Bell to
Vice-President.
1
to
Glist Opens
good
services,
which
of
announced the promotions of Eu¬
These indi¬
their
results
the
for
be
for
the
of
Company
Company.
At
daughter who is in college, have
or
her pick out four bright,
as
directors
nati, Ohio, and also serves on the
board of the Dallas (Texas) Tran¬
him
serve
of
Electrotype
college instructors—one in
physics, one in chemistry, one in
biology, and one in business ad¬
ministration. If you have a son or
forward-looking
& Co., Inc., B.
President of the
Beverly Hills investment banking
four banks to do this.
that you must get
Cantor,
get
impossible
practically
Gerald
Hence, it will
small Trust Funds.
be
Fitzgerald
tor,
such
with
bothered
be
to
Fitzgerald
HILLS, Calif.—Burt
has
been
promoted
to
BEVERLY
Kleiner
$2,500 each in order to
of
y
manner.
money or
anything
without buying
commission
George E. Watson, Jr., partner
Gude,
a
industries.
new
profits from securities. Further¬
Few
more, I am not advising that all
the idea of making, a profit for your Trust Funds be of a specula¬
tive
nature
specializing in new
you or your heirs, but rather with
the
sole
purpose
of
providing industries. If, however, you plan
to leave $50,000 to some grand¬
safety and protection against pos¬
child in trust, I certainly advise
sible inflation.
viduals
George E. Watson, Jr.
of
make
are
forward; youth is willing to take
a
chance; and youth is the hope
corporations.
of these trustees invest with
Funds
These
T.
Midyette has opened offices in the
Dunn Building to act as a dealer
in securities specializing in mutual
funds
They
him
young
(Special to The Financial Chronicle)'
BERN,
like autop¬
more
are
useful in helping
a
person to save his money; but
are
of very little use in helping
sies.
protect their own reputa¬
Pension
to
Donald Midyette Opens
NEW
previous years.
companies for
today,
and committees who are
Funds
H; L.
securi¬
offices
Street,
stocks
—
They want to see the audits
ward.
This also applies to bankers
tions.
$1,000,000 in 25 years.
interested in having young
am
looking backward rather than for¬
plish this I believe that the $10,000
should be divided into four Trust
Opens
Mitchell
unforeseen losses, its shareholders
would
order to
I
In
(Special to The Financial Chronicle)
Washington
afford
allow a bank crisis
to develop.
If a bank .should get
into difficulties through an im¬
prudent credit policy or through
nowadays
however,
may be rather risky.
This espe¬
cially applies to the "Blue Chips,"
which trust officers like to buy in
the
must
expect to turn $10,000
is
you
people
as
Trustees
for
these
"speculative" funds for another
reason.
Older men are constantly
they buy either convertible
bonds or common stocks. Buying
stocks
foresee
will
can
This
which
upon
work if you
into
do this
common
goal
your
person
jackpot."
principle
To
against inflation.
one
the
that
;
very
alizing the Bank of England, the
temptation of raiding these re¬
serves.
They are available for as¬
you
trustees
four
but
the total result of the
in
No
"hit
supposed to
are
the
money;
advance which of the four
in
Investing for Profit
-
J PHILADELPHIA, Pa.—Eastman
Likewise,
the
heavy depreciation of the banks' Dillon, Union Securities & Co.r
members
of
leading
stock
ex¬
holdings of Government securities
in recent years caused no concern changes, announce that Joseph G.
among depositors. It is also well- Flanigan is now associated with
known that the Bank of England their Philadelphia office, 225 So.
itself has a very large inner re¬ 15th Street, as a registered repre¬
^
serve.
Its size is a closely-guarded sentative. -f
sisting
protect
be
will
The
officers
Trust
lose
four.
of
two
or
one
*
,
not
losses. It will be assumed that
any
Governor.
for
dividends.
duce
some extent by the in¬
afford
to
commit themselves
in
creasing willingness of insurance
long-term lending to a much larger
companies, trusts of every kind, extent than
they have done so far.
pension funds, etc. to depart from There is no likelihood of
large"gilt-edged" investment and in¬ scale withdrawals of
deposits that
vest in good equities. Even so, but
would create an embarassing sit¬
for the change in the attitude of
uation.
And
if
the
unexpected
the banks, industries would have
should happen the bank in diffi¬
Some bankers of the old school
W.
of
Incorporated, for Treas¬
and Dana B. Scudder, As¬
Co.,
securities.
young
will, how.r
The Trust Agreements
different bank so as to
a
of
selection
a
■
of Youth
instructors, < rather than
older professors, because the older
men
are
usually more interested
in their own reputations and have
more
fear of making a mistake.
get diversification of management,
as
well
as
diversification
of
of
covered to
encountered
Company, In¬
has been named for
Robert
R.
Krumm,
corporated,
Secretary;
cov¬
to
Vice-President
Assistant
Milner,
of R. S. Dickson &
&
that
for
nominated
been
has
Manhattan
Chase
The
of
dent
Bank,
Vice-President
cret
Field Day on
14, at the West¬
chester Country Club, Rye, N. Y.
John W. deMilhau, Vice-Presi¬
June
Friday,
est in the financing of domestic
It
The elec¬
annual meeting will be
held-at' the Club's
c|ame to take a more active inter¬
tion transpired about heavy losses
or large-scale immobilizations af¬
industries, they remained until re¬ fecting one or the other bank. But
cently reluctant to grant long- nobody 1 worried unduly about it.
term credits.
For one thing, it was an open se¬
Co.,
Trust
Bankers
of
Vice-
Jr.,
Fulkerson,
President
tions and
public duly realizes
this. Although in Britain there is
no arrangement similar to the de¬
The British
were usually reinvested in
Treasury bills,
and- hanks de ¬ posit
insurance
in the
United
pended for their profits largely on States, British depositors are sat¬
the
difference
between
deposit isfied that default on their depos¬
rates and bill rates after the lat¬
Neal
W.
of each in
Club
Bond
Municipal
the
New York for
it has been announced.
af¬
Deposits subject to with¬
of
?
advise
I
NY Receives Slate
on
..
.»
college
Mun. Bond Club of
greater
'
Importance
-
the
and
competition
create
also
will
rivalry between these four college
-
balance
portion,
a
profit-making. situations.
t
a
for
in trust fund management
room
•
during
of
proposed by Mr.
trustees, are
as
.1 believe in Trust Funds, for
Treasury Bill rates during the last
both chijkiren and grandchildren.
two
years, many private firms,
disapprove this tendency and feel
LONDON, Eng.—There has been
and even individuals with ample The ideal method is to leave onea distinct tendency during
recent that it has gone too far. Several
half of your money in trust, and
bank
chairmen, in their annual liquid resources have acquired the;
years in British commercial bank¬
t
one - half out¬
habit of buying Treasury Bills.
ing towards a much more enter¬ spe eehes to shareholders, ex¬
right. In the
This
means
that
less Treasury
prising a 11 i- pressed their hope that long-term
case
of
chil¬
tude compared lending by banks should remain Bills are available for the banks.
dren or grand¬
with pre - war the exception. In reality, it seems They may have to allow their
children, you
days. Before that British banks could well af¬ liquidity ratio—the proportion of
save an inhertheir easily realizable investments^
the war Brit¬ ford to go much further in that di¬
l
tance
tax by
■■h mm
4
ish banks had rection. In the light of the change to their total investments—to de¬
leaving the
f. '• 'Mm
been extreme¬ in the situation the principles of cline below the traditional limit
■
money in trust
of 307c
lilBfKi
X
-"':i ■
ly conserva¬ liquidity that had become estab¬
for them and
Once this tradition is abandoned:
tive and tradi- lished could and should be re-con¬
providing that
one
of the psychological
ob¬
'
'
*
dition ridden. sidered.
your wife will
stacles to long-term lending .will,
The
principle
The reason why it has always
have a life
cease
to operate. It is true, the
that a cohi- been
regarded an elementary rule
interest in the
conversion of deposits into Treas¬
mercial - bank of sound banking that a high de¬
income. There
could only gree of liquidity should be main¬ ury Bills would reduce the re¬
are three rea¬
Roger W. Bab sod
sources of banks available for in¬
grant self- tained is the feeling that banks
sons for form¬
vestment. But if, in order to make
liquidating must always be in a position to
(l)For the pro¬
up for the decline in their prof¬ ing such trusts:
short
te r m face
unflinchingly any conceiv¬
Dr. Paul Einzig
tection of your estate; (2) for the
credits was able withdrawal of their deposits. its, the banks should expand their
industrial lending, this would tend saving of inheritance taxes, and
firmly established, and the extent But as far as Britain is concerned
to replenish their
deposits. For (3) to be sure your children and
to which banks were prepared to a run on the banks is a matter of
this reason, even though the banks grandchildren get what you want
depart from it was negligible. Most the past.
view the new interest of their cus¬ them to have. All of this will be
banks and acceptance houses were
Even during the crises of the
tomers in Treasury Bills with dis¬ explained to you without charge
even reluctant to grant acceptance
'thirties there were no bank fail¬
credits
to
domestic
customers. ures in Britain. During the inter- may, the change is likely to work by the trust officer of any bank.
out to the advantage of the com¬
They preferred
to grant
such war period a few relatively unim¬
What About Diversification?
munity.
credits to first-class o ver sea s
portant banks got into difficulties,
A trust
officer will properly
banks whose name was considered
but
the authorities saw
t h em
to be a water-tight guarantee—ex¬
diversify
yolir
holdings
as
to
through, and depositors or cred¬
securities. This is also true of any
cept in situations such as arose itors suffered no losses. In some
money you put into Mutual Funds.
during the 1931 crisis — for the instances the banks in difficulties
Such Trust Funds, however, do
self-liquidating na t u r e of the were taken over by other banks.
Charles E. Weigold, President not provide for diversification of
credit.
Domestic
industrial and Even in the absence of official as¬
of Chas. E. Weigold & Co., Inc., management.
commercial firms, in o r d e r: to
My appeal is that
sistance, mutual support by the
qualify for bank advances, had to banks themselves would be forth¬ has been nominated for President you have several Trust Funds,
keep
diversification, some
and others placed in the hands
devoted to speculative
by Banks and other financial in¬
stitutions. As a result of the high
to obtain"
one,
with the usual management,
-
they
make
serving
number of trustees
,
1
Office
(Special to The Financial
ANAHEIM,
Glist
is
business
Calif.
from
—
Edward
securities
offices
at
1308
conducting
North Patt.
Chronicle)
a
Volume
5638
Number
185
.
.
The Commercial and Financial Chronicle
.
(2295)
<0 The
Livingston V.-P. of
t
following Trustees "ofT the Committee on Rules and Proce¬
Gratuity Fund—which pays death' dures of the New York Stock Ex-
'
benefits
R.
—
Vice-President of Doremus-Eshle-
Company, Philadelphia office
man
of
Committee
Doremus
&
an¬
was
nounce d
by
William H.
Long,
Jr
Chairman
the
.,
o
tor
is
He
a Director of the
City Fed¬
Savings & Loan Association
eral
and the Central Home Trust Com¬
President and Director of
Kellogg & Sons, President of
Kellogg Foundation (an
organization
for
medical
re¬
pany,
J. C.
mount Co.
the
Mr.
Kellogg
Chairman
Finan¬
of
J. C.
search),
for¬
Direc¬
of
ity
and
Vice-Chairman of the
Authority's Finance Committee.
& Co.
•
was
F.
E. F. Hutton & Co.;
Phelan, Nash & Co.; Emil
J. Roth, E. J. Roth & Co.; Edwin
H. Stern, E. H. Stern & Co.; and
George H. Walker, G. H. Walker
Company.
Mr. Living¬
ston
(Edward
John J.
Doremus&
merly
were:
Kantzler,
f
of
Board
NY
Security Analysis
Outing on June 28
.deceased
Becker, McDonnell & Co.; Arthur
C. Briggs, Delafield & Delafield;
Phillip W. Brown, Smith, Barney
& Co.; Edwin H. Crandell, Blair
S.
Williams
&
Co.; George R.
Company,
it
of
Stock
Philip
Livingston has been elected a
Pa.
families
cnange, a committee which in lb55
Exchange members — were, compjeted one of, the f broadest
re-elected: John Rutherford, John
surveys of the Exchange's opera¬
Rutherford & Co., and John K.
tions ever made.
Starkweather, Starkweather & Co.
Mr. Kellogg is a Commissioner
Elected to the 1958 Nominating
of the Port of New York Author¬
Doremus-Eshleman
PHILADELPHIA,
,
to
Bay
served as ViceSpecial Review
the
and
a
(N.
Westminster
a
Trustee of the
J.)
Chapel
and
Presbyterian Church.
Society of Secu¬
rity Analysts, Inc. has designated
Friday, June 28, 1957
for the Annual
as
Outing, it
the date
was an¬
nounced
by W. Sturgis Macomber,
Reynolds & Co., President.
"
Gerald
L. Wilstead, Hallgarten
Co., will be Chairman of the
outing which will be held at the
&
Westchester
Club,
Country
Rye,
New York.
Joseph
with
F.
associated
Moore,
Clark, Dodge & Co., passed
away
on
Crullenden, Podesta
To Admit Partners
CHICAGO,
111.
—
Cruttenden,
Podesta & Co., 209 South La Salle
Street, members of the New York
and Midwest Stock
Exchanges, on
May
23
will
admit
Ernest
A.
Mayer and Willis J. Meehan to
general partnership, and Majorie
O. Stephens to limited partner¬
ship in the firm. Mr. Mayer is
Manager of the firm's sales de¬
partment.
Lyle Schmitter Opens
Joseph F. Moore
Director of May-
He is
Head
The New York
-
Schmitter
Md.—Lyle
L.
conducing a secu¬
is
rities business from offices at 4021
Franklin
May 6.
ing in Phila¬
delphia
and
Street.
R. Livingston
Philip
continue
will
supervise all financial accounts
He joined the firm in 1947
an
account executive in the
to
there.
as
Philadelphia office.
Mr.
Livingston was graduated
from Cornell University in 1942.
He
is
Treasurer
of the Cornell
Club of Philadelphia and a mem¬
and
the finance committee
ber of
the Wayne
Pa. He
is also Treasurer of the Footlight-
Financial Secretary of
Methodist Church, Wayne,
theatrical
amateur
ers,
of
group
Wayne.
During World War II Mr. Liv¬
ingston served in the Army Air
Force, having been commissioned
directly in Africa while employed
Pan American Airways-Af¬
with
He left the service in
Captain.
rica, Ltd.
1946 with the rank of
Kellogg Re-elected
Chairman of Board of
Governors of NYSE
Crane
James
re-elected to
term
year
Board
of
Kellogg, 3rd, was
a second one-
serve
New
the
of
the
of
Chairman
as
Governors
Stock
York
Exchange.
Mr.
has
Kellogg
been
a
of
Governor
the
Exchange
Detroit^
since 1950 and V
served
as
»
Vice
i
m a n
•
y
"""
v
I
\
"*V
.vy
> .V''
-fli
y.
'
y
S-
y
'
'
v-.T'
Most
He
senior
t h e
T
-
1954
n
1955.
and
is
Chair
-
of
Spear, Leeds
& Kellogg,
a
partner
member -firm
J. C.
acts
Kellogg, 3rd
as
the
of
;
Influential
Ex¬
change which
specialist in a number of
and preferred stocks.
Citizen
common
Mr.
Kellogg was admitted
Exchange membership
Stock
July 1936, when he
old.
He started
his
was
to
in
21 years
career
in the
brokerage business as a telephone
clerk on the trading floor of the
Exchange.
The following were elected to
three-year
serve
ernors:
Lynch,
(New
Earle
terms
as
Gov¬
W.
Pierce,
English, Merrill
Fenner & Beane
York
City); Horace W.
Frost, Tucker, Anthony & R. L.
Day (Boston); William E. Hutton,
W.
E.
Hutton
&
Co.
Ryons & Co.
Five Governors
for
three
-
year
(Los Angeles).
were
hill
&
Bloch
Jacob
(New
(New
York
City);
Wagner,
Stott & Co.
(New York City);
Roscoe C. Ingalls, Ingalls & Sny¬
der (New York
City); and Joseph
M.
Scribner, Singer, Deane &
Scribner (Pittsburgh).
Total membership of the board
is 33, which includes Keith Funston. President, and three men
outside
P.
the
Boylan,
at
securities
as a
major
source
of
fuels that could only be
imagined
a
few
years
everyone
over
the horse's job,
judged its performance in terms of horses.
Thus, the 1903 Ford
business
chosen by the Board of Governors
to represent the public.
power
But
...
in 1925.
Likewise, each of these Cities Service
was
said to have eight horse¬
lenes prevents engine trouble that
But
today, it would actually require as many as
300 horses to
equal the
modern
And the fuel of these
power
under the hood of
from the fuel of fifty years ago as
cars
is
as
many
different
gasolene from oats.
only
a
gaso¬
mechanic
could fix back then.
because it did the job of eight horses.
cars.
ago.
Just two gallons of any one of these fuels will do
the work that required three gallons of gasolene back
description.
For when the automobile took
City); Elmer M. Bloch, Ca-
Robert
longer regarded
of transportation, his memory lives on as a
re-elected
terms:
Bleibtreu, Abraham & Co.
York
no
source
(New York
City); and Lloyd C. Young, Les¬
ter,
Although the horse is
superb
part of
a
as
these
new
fuels
are,
they
are
continuing series of improvements
but
now
offered and yet to come from Cities Service... for
as
America grows, so grows Cities
half
a
century
a
Service, for nearly
leader in petroleum
progress.
Outstanding examples of this fact can now be seen
at Cities Service
tirely
new
stations, which offer motorists
gasolenes for
every
en¬
type of car..."dream"
CITIES
©
*
'KENSINGTON,
Advertis¬
cial
23
SERVICE
24
The Commercial and Financial
(2296)
Continued
from first
accumulation
The
slowed
has
inventories
of
there
and
down
efforts
of
evidences
Whither Interest Rates
Accumulation.
Inventory
(4)
page
to
New: York
in
City
Chronicle
22%
was
are
reduce
Over-all
Strength
vs
Individual
undersaving, because, in his words:
"Partly in
to the expan¬
response
authorities
serve
policy
in
response to the opportunities af¬
forded by technological advances,
private investment has also in¬
creased at a rapid rate. A consid¬
erable
carefully
portion of this investment
financed by credit expansion
was
adhere
to
the
active credit restraint,
they will aggravate the
decline and subject themselves to
of
the
sion in consumption and partly
them. Obviously, if inventories are
more
criticism later
the
At
on.
Reserve authorities must consider
possible
the
clearly indicate,
even though the over-all economy
of the country is still sound, as
reflected by the Index of Indus¬
trial Production and Employment,
weaknesses have materialized, and
adverse
which
production,
have
well
effect
an
as
on
on
is bound to
employment as
wages.
(5) Housing Construction. Home
have decreased materially;
starts
time, the Federal
same
Weaknesses
curtailed, consumption will exceed
in
fact,
of
instead
the
usual
seasonal increase, they dropped to
880,000
on
seasonally
a
these
As
they
psychological impact of a change
in
credit
policy under present
conditions. It is even possible that
basis. As it is highly doubtful that
Reserve Board faces the
the
tion: Is this only a temporary
ments."
if
they take measures to increase
reserve positions of the mem¬
ber banks, thereby increasing the
have
the
home
availability of credit and tending
to depress interest rates, it may
be interpreted as a sign of weak¬
even
In sharp contrast to this ortho¬
dox, conservative viewpoint, Doc¬
tor Paul W.
Council
held
McCracken,
President's
the
of
that:
"We
member
a
three
Economic
of
Advisers,
either
have
must
man
-
unbalanced
Federal
budgets
or
unbalanced private budgets in the
decade
and
ness
cause
cline to be
it
and
the
reasons,
than
latter
sales
in
the
case."
Of
importance
more
bankers
concern
mary
their
with
reported
to achieve
to
pri¬
of
the value
to
as
dollar, Doctor McCracken
further
was
saying
as
billion by
debt,
Of all debt to
1965 would
pushing
than
more
total
the
trillion
a
dollars! He said that about three-
quarters of this increase would be
private debt which would have to,
roughly, double in the eight
efore 1965.
years
And, most important
f all because of its inevitable re¬
duction in the value of the dollar,
reported
was
this
doubling
have
would
Basis of Federal
that
require about $430 billion of ad¬
he
saying that
debt
private
as
of
be
to
financed
by
expansion of bank credit!
the
long pull, we can only
continue to hope and fight that
the harder, but sound, method of
saving
prevail
times
at
will
before
will
investment
Reserve Policy
As has so often been
eral
Reserve
in
lated
a
said, Fed¬
policy is not formu¬
It
vacuum.
is
based
primarily on a careful study of
business activity, particularly, the
level
of
employment,
on
the
movement of wholesale and retail
prices
commodity
and,
least
at
in part, on the position and needs
of
the
Treasury.
Of
business situation
and
of
ment
most
these,
the
the
move¬
employment
play
the
It is, there¬
important roles.
to
review
the
picture briefly in order to
fore,
necessary
credit
conclusions
sound
leach
what
For
auhorities
rather slowly
move
actions
contradictory. It is even
possible that for a couple of weeks
they may tend to ease the money
market and then tighten it again.
Gross National Prod¬
a
uct of $565
ditional
For these
be.
Reserve
to
their
de¬
appear
even
savings
our
and
bound
are
pending
pronounced than
more
would otherwise
ahead, with private debts
rising substantially more rapidly
incomes
the
the
to
as
policies of the Reserve
authorities may be. As you know,
the Reserve authorities pay care¬
ful attention to many factors, par¬
ticularly the following ones:
over the "primrose path"
(1) Business Activity. Industrial
acclerating debt expansion and
activity is evidenced by the Index
inflation.
As
I
have
long be¬
of Industrial Production. This in¬
lieved, and still believe, that eco¬
dex stood at 146 (1947-49 = 100) in
nomic sanity will prevail, it is
January, February and March, as
my opinion that the dollar,
de¬
contrasted with a peak of 147 in
spite the many Washington pres¬
December.
The average
for the
sures
and
the
wage-price-cost
year 1956, when the country was
spiral, will be preserved and that,
in
the midst of a
great boom,
therefore, the long-term, or se¬
was 143. Business activity, there¬
cular, trend of interest rates will
fore, is not yet causing the Re¬
be downward from
of
present levels.
Of course, if my view on prices
is not correct, then interest rates
will
rise!
authorities
serve
any
concern
on
the down side.
(2)
Employment.
The
total
of people gainfully em¬
ployed in March reached 63,865,000, a record for the month, and
787,000 greater than a year ago.
Nonetheless, the total number of
unemployed
increased
and
is
somewhat larger than in March,
number
Money and
Capital Markets in
Transition
Turning
change
money
rates,
has
first
the
taken
Federal
of
the
the
ington
for
considerable
in
place
the
Although
year.
Reserve
undoubtedly
are
outlook
a
and capital markets since
the
of
the
to
short-term
almost
authorities
fully
cognizant
irresistible
pressures
Wash¬
for further
eco¬
nomic growth fueled by the infla¬
tionary fires of further commer¬
cial bank credit expansion, close
study
their
of
actions
reveals
changes—so | far, hardly percepti¬
ble—in
their
It
economy.
attitude
is still
toward
too
the
early to
determine
due
are
whether these changes
to
economic forces,
or
whether they are due to the ne¬
cessity to ease the market some¬
what to aid the Treasury in rais¬
ing
new
money
to
finance
the
redemption of F and G bonds and
the May refunding.
Moreover, it must be admitted
1956.
Moreover, employment in
manufacturing
industries
has
tended
to
rise.
authorities.
more
Price
Trends.
Prices
of
sensitive commodities have tended
to
decline
weeks.
whether
in
In
sensitive
greater
force, obviously, it is not advis¬
to
change
present
credit
policy. On the other hand, if the
softening in business is an indi¬
cation of
the
a coming
readjustment,
longer the Federal Re¬
of
sumer
the
relatively
The
to
role
in
the
weak¬
decline
later
the
fact
that
the
prices for the
has
year
stable,
re¬
while
index has continued
the
however,
the
higher
services, which play
index.
this
increase in
index,
primarily
recent
commodities
connection,
consumer
rise.
able
then
greater
in
authorities
borne in mind
quarter
mained
the
with
a
this
index of wholesale
first
off
Reserve
ness
on.
level
or
The
decide
must
to
future
take
less stable.
or
(3)
commodity prices will be resumed
near
also
year ago and that wages in manu¬
facturing industries for the first
quarter of the year have remained
in
the
They must
into account that the present work
week is somewhat shorter than a
should be
if the
present softening in business ac¬
tivity is only temporary and the
upward swing in business and in
in
of workers in one
industry or another. The level of
employment is considered a very
important factor by the Reserve
forecasts
specific,
that
Almost daily the newspapers
dilemma.
be
while
report layoffs
that the Reserve authorities today
find
themselves
facing
a
real
To
decrease
the service industries continues to
an
con¬
is
due
cost
of
important
construction
of
this
terms
easing
of
mortgage
by the Administration will
any appreciable impact on
starts, it is quite possible
that this downward
trend
will go
further.
(6) Capital Expenditures. Plant
and
equipment expenditures by
corporations are leveling off. An
increase of 6V2 % is now estimated
for
1957, compared with 22% last
Similarly,
year.
credit
the year was
ago;
the
demand
for
during the first quarter of
smaller than
in particular,
a
year
tax borrowing
ation
or
nesses
big ques¬
situ¬
will the number of weak¬
and
increase
economy
begin
entire
the
decline?
to
this
to
answer
question
The
will
depend, of course, to a consider¬
able extent upon developments in
durable
consumers'
goods
the
industries in general, and automo¬
biles in particular; and, to a
extent,
retail
upon
trade
the spring selling season.
of
not
the
their production dur¬
This,
months.
summer
obviously, would have an adverse
effect not only on the industries
number
steel,
rubber, glass, and certain
of allied
copper,
but also on a
industries, such
as
textiles. Under such circumstances,
a
decline in over-all
business
ac¬
could materialize by June;
and the pattern of business might
be similar to that which prevailed
tivity
It
It follows then that the Federal
rather than real savings, with at¬
tendant inflationary price move¬
recent
Thursday, May 16, 1957
during the second half of 1953.
number.
adjusted
.
involved,
facts
constantly increasing in
are
.
will curtail
ing
smaller than last year.
.
durable
pick
consumers'
up
lesser
during
If sales
goods
do
materially in April
and May, it is quite evident
manufacturers
of
these
that
products
is, of course, extremely
ficult
to
volatile
estimate
what
automobile
;
dif¬
the very
will
industry
Personally, however, I believe
that the output and sale of the
do.
1957 model cars will not
to
the
expectations of
come
the
up
auto¬
mobile manufacturers. In the first
place,
experience
demonstrated
automobile
that
has
amply
whenever
the
industry
absorbs
a
substantially greater proportion of
the disposable income in any one
year, as was the case in 1955, it
takes two years to overcome it;
Secondly, many people bought the
1955 model on a three-year term
and will wait until they have paid
off the outstanding debt on their
*
,
Volume
Number
185
5638
present car before they buy
one.
v
;
/
.
.
.
The Commercial and Financial Chronicle
.
a new
/ V/'
•
in
activity in the next few weeks,
I
of
am
the
opinion
that
de¬
a
cline will set
:>
No
Other
ment
than
Sight
increased
expenditures,
force
new
Rescue in
business
of the
time,
boost
a
govern¬
there
spring of last
the
decline
year.
will
turn,
is
no
horizon to give
similar to that
the
on
At that
in
fore, the automobile industry and
the durable consumers' goods in¬
dustries in general witness a
greater pickup than seems likely
at
the
credit
of
credit
tive
will
be
reflected
in the index of industrial activity
as
well as in the total number
of
unemployed.
Since,
/;,
;'
before, I
do
automobile
in
general,
industry
ticular, to enjoy
a
in
,
change in
Obviously,
cannot
be
par¬
a
posi¬
given
as
Reserve
ately
likely to reflect immedi¬
the changes in the short-
term
market.
member
the
bank
Reserve
reserves,
borrowing from
banks
has
over
been
excess
offset.
This
will
probably not be precipitate;
in fact, it may take several weeks.
Once this point is reached, the
Federal
reserve
tral
Reserve may lower the
requirements in the cen¬
reserve
cities
by
one
or
two
decline
activity is only
or
it
is
that
increases, I
the
other
words,
repetition
a
:■/
expected.,
.
of
..
Conclusions
If
analysis is correct, the
impact of the change in the credit
policies of the Reserve authori¬
But,
the number of weak sectors in
as
the economy
am
Federal
con¬
my
sector
of
the
market,
namely,
authorities will slowly and grad-^ Treasury
bills, bankers' accept¬
ually change their policies.
At ances,
and
commercial
paper.
Nonetheless, the
as
buyer of Treasury bills in the
a
open
market
will
and
term
loans.
As
soon
term
move
long-term
rate
of
order
loans.
This
of
On
GROW?
is
of a series telling what Chesapeake and Ohio
doing to make this
a
bigger, better railroad.
Savings
Banks
announced
recently that Dr. Grover W. Ens¬
ley,
the
rate
obligations.
Another
upward
" *
\:
r
factor
that
'
*
will
press
of
United
been
appoint¬
Vice
Presi¬
-
dent
of
A
ciation,
s s o
1,
to the
the
two
markets
changes in business activity
credit
and
the
effective June
sidered
between
the
Executive
ed
market will be the increased sup¬
differentiation
Con¬
1957.
the
of
one
most
truly
representative
organizations
the
in
country,
to
99.8%
bond
market; and yields
high-grade
bonds
on
likely to
decrease, although not to the same
extent
as
are
short-term
rates.
Grover W. Ensley
national trade
the Association's
have
banks
member
term
be
to
money
market eases, it is bound
have an impact on the long-
the
States
ply of tax-exempts.
This
of
o m-
Congress, has
*
rates in the long-term
on
Director
Eco¬
C
mittee
long-term
on
Executive
Joint
nomic
hand, the increased supply of cor¬
porate
securities
will ; tend
to
maintain
effective
The National Association of Mu¬
other
the
Association,
tual
the
ease
of
June 1.
their
repay
will
interest.
the reactions of
interest
to
policy should not be
Obviously, if the
short-term rate decreases arid the
ILROA D
dent
as
misunderstood.
One
Appointed Executive Vice-Presi¬
position of the banks, particularly
in the large cities, and thus have
a depressing effect on short-term
will
exceedingly slowly.
The
continue
prime rate
in
Ensley Joins
Mutual Savings Banks
obligations in the bond
own
market
ties will first be felt in the short
Reserve
appear
This
many
obtained
25
National Association of
is
probable
corporations, un¬
willing to pay the prevailing rate
of interest in the
capital market
during the past year or so, have
rates
be¬
readjustment.
a
in
con¬
the
market.
because
their
business
temporary
a
whether
ginning, of
determine
-
in
term
However, I repeat,; the process
undoubtedly will be a slow one;
be
the
Grover W.
Moreover, the
change, when it does start, will
be relatively slow in the
long-
bond yields decrease, such cor¬
porations may be expected to sell
their
endeavor" to
not
percentage points, and simultane¬
ously lower the
discount
rate.
the policies that were adopted in
the second half
of
1953
cannot
and "first, the Reserve will
material pickup
Re¬
in the
is
of
policy is highly
flexible
and
subject
to
daily
changes. It is my belief, however,
that they will do little in the next
few weeks, but will continue in
vinced
.
the durable consumers'
industries
goods
the
I stated
as
not expect
;;
-
coming
policy?
answer
Federal
dition
this
the
as
such' a policy until the present
negative reserves, i.e., the excess
market.
money
timing of this
expected to start,
cline—and
of
well
as
What will be the extent and the
whether
moderate de¬
the
Probable Change in Credit Policy
present, business activity in the
next six to eight weeks should be
a
policies
authorities
serve
status
in
activity in
automobiles and in housing was
more
than
counteracted
by in¬
creased
capital expenditures by
corporations. This is not likely to
take place this year. Unless, there¬
in, and that this, in
bring about a change
(2297)
of
assets
of the entire savings bank
industry. At the same time, it was
announced that John W. Sand-
stedt, Executive Secretary of the
Association, was advanced to the
post of Administrative Vice-Presi¬
dent.
Associated Truck
New eyes
and ears for Chessie
Dr.
underwriting group headed
by Cruttenden, Podesta & Co. on
Chesapeake and Ohio's 5,100
Ie system a waybill is made out, a car passes
unction point, a passenger buys a ticket, a
xdianic requisitions a dozen bolts from a
on
freroom, a
le,
an
lessie
brakeman works
investor buys a
common.
an
minute reports on any
are
phase of C&O operations
always available
ment
as a
guide to
manage¬
decisions.
Electronics
over-
hundred shares of
speed
:v,v\v
service in many ways.
Chesapeake and Ohio
Closed circuit television
gives the yardmaster
hour
a
is
the million, such bits of information
are
|^hed to data processing
centers where they
language of tape and
ich cards. Machines quickly classify, digest
analyze this information. Thus, up-to-the-
close-up view of what
the other end of the yard. Radio
loudspeakers give him efficient control of
going
and
up
on at
the entire operation.
journal boxes and axles before
they happen. Result: better, faster service;
dependable deliveries for Chessie's customers.
on
the
road, trains maintain contact by
radio with other trains and with
Electronic
to
switching enables
one
control all train movements
of miles of track.
*
dispatchers.
central office
over
hundreds
**
High-speed communications enable C&O To
figures on its monthly operations on
the first day of the following month; its annual
figures on the first working day of the new year.
Chesapeake and Ohio is
'ches and
electronically activated from
board, resulting in increased utilization of
signals
are
a
forward-looking
organization; quick to adopt new methods and
oadzvay equipment for better service. C&O has over
always ready to invest in improvements to
better serve America's industry. Chessie's rail¬
0 miles
road is
control
of Centralized Traffic Control trackage.
growing and going!
selection
that pur¬
organized
Association,
includes in its mem¬
seven of the 527
stock ($3 par value) of Associated mutual savings banks of the na¬
Truck Lines, Inc., at a price of tion. Mutual savings banks' assets
total nearly $34 billion, and they
$10 per share. Of the shares
being
offered, 75,000 are being sold on hold deposits of more than $30
behalf of certain stockholders.
billion, representing the savings
of 21 million depositors.
Associated
Truck
Lines,
Inc.
Dr. Ensley is 42 years old, is
will apply its net proceeds from
married and has four children. Ho
the sale, together with other funds,
received a B.A. degree from the
to the purchase of land and the
construction of a new terminal University of Washington in J937,
an M.B.A. from the University of
and trailer maintenance depot at
Washington in 1938, an M.S. from
Grand
Rapids, Mich., headquar¬
the University of Denver in 1940,
ters of the firm.
class
A
common
operates
company
and
maintains 27 terminals, and is one
the
of
largest
short-haul
a
but
Its
States.
Giving
Ph.D. from New York Uni¬
versity in 1947.
He
Economist
Tax
for
Research
was
Foundation,
motor
in
the
United
areJa
service
covers
effect
been
the
to
current
Executive
Joint
Economic
stock sale, capitalization will con¬
sist of: $119,950 of equipment ob¬
ligations;
mortgage
ton
notes; 4,1.93 shares of 6% cumu¬
preferred
stock;
134,906
shares of class A common stock,
$3 par value; and 207,548 shares
of class B common stock, $1.50
par value.
\
ties
Director
the
of
since !>
Committee
in economics at
$410,772
of
lative
Associated
with
Cruttenden,
Podesta &
Co., in the underwriting
are:
Bateman,
Eichler
&
Co.;
Lester, Ryons & Co.; Kalman &
that time.
George Washing¬
University and other universi¬
and has
Rome
in
in
economic
on
Rio de Janeiro
1955, and in Bangkok in
He
is
the
articles
is
and
author
of
1956.
numerous
economics and finance
on
of various
member
a
in
conferences
1953, in
eco¬
nomic and statistical associations.
Texas ISA
Group to
Meet in Houston, 1958
HOUSTON/ Texas—The
Association
Joins Lee
'
served
to
Texas
Group of the Investment Bankers
Co.
&
Dr. Ensley has lectured
delegations
Company,
Inc.;
Bache
&
Co.;
Bradbury-Ames Co.; H..M. Byllesby Sz Co., Inc.; MacNaughtonGreenewalt & Co.; Watling, Lerchen & Co., and Harold E. Wood
Higginson
t
(Special to The Financial Chronicle)
•
hold
its
Mass. —G.
BOSTON,
April 24 and 25 with a
are
>
Sterling
annual
meeting in 1958 at the Shamrock
Hotel
in
Houston.; The official
dates
.
will
preliminary get-together
on
April
.:
23rd.
.
Grumman has joined the research
of
Lee
Higginson
Corporation, 50 Federal Street, as
senior analyst.
department
Would you
like
a
portfolio of pictures of
Chessie and her
family? Write to:
esapeake and Ohio
ATLANTA,
ern
3809
TERMINAL
Mutual
formed
Ga.—Great
Funds,
with
Inc.
Edna
offices
in
securities
Callaway,
the
firm.
Jr.
business.
is
a
securities
cess
in
Thomas
principal
business from
offices
of
Management Corporation.
Irving Lifton Opens
Wil¬
►
a
Corp.
Markey is engaging in
New York City
under the firm name of The Ex¬
South¬
the
C.
at 99 John Street,
has been
liam Oliver Building to engage
TOWER, CLEVELAND 1, OHIO
Excess Management
a
Great So. Mutual Funds
Railway
:
Inc. from
1940-1941; Fiscal An¬
alyst, United States Bureau of the
Budget from 1941-1947; Technical
more than 3,300 miles of
author¬ Adviser
to
Senator
Ralph
E.
ized routes in Michigan, Ohio, In¬
Flanders from 1947-1949, and lias
carriers
common
have final
v-.vXvX'V.v>Z%X,
The
pose.
bership all
of
and
spot troubles in
special
in April 1920,
shares
diana and Illinois.
*
a
000
The
Out
'jLk
Executive
committee appointed for
May 10 offered to the public 125,-
translated into the
Electronic hot box detectors and reflectoscopes
by the
Commit¬
survey
tee
through
fol¬
appointment
extensive
an
Association's
Lines Stock Offered
An
mewhere
Ensley's
lows
Irving
Lifton
is
conducting
a
securities business from offices at
116 Nassau Street,
He
was
vestors
New York City.
previously with First In¬
Corp.
26
The Commercial and Financial Chronicle
(2298)
Average Rate of Return
Average Rate of Return
.
On Loans
On Govts.
1952,
2.81%
1.89%
1955
3.14%
1.97%
1953—.—-
2.96
2.10
1956—_.
3.77
Bank and Insurance Stocks
2.86
1.77
The
By ARTHUR B. WALLACE
1956 figure on loans was 34%
However,
This Week
—
loans
Bank Stocks
will
greater than that for 1952.
1957 will probably show an even better gain as more
mature this year and renewals will be subject to the
ruling higher interest rates.
J. P. Morgan
& Co., Incorporated, New York
1947____
previously conducted by J. P. Morgan & Co., the private banking
concern that had so long been one of the leaders in finance in this
1949
1952
Clearing House Association.
1956____
list had
132%
1823/4
158
1,827
7.08
208 3/8
1451/4
11.13
13.77
6.67
220.73
17.21
1,940
8.33
144%
1,984
8.33
2533/8
237.90
16.01
2,155
2,280
8.74
281
10.00
316
259.44
24.74
2,129
10.00
370
which the organi¬
day the figure i$ better than. 60%.
Cash and in Banks
and
State
and Acceptances
Capital Stock
Profits..
•
the
from
705,797,585
39,768,812
building
the wisdom of
for
into
principal
//■'";„V.
follows:-.
Cash
to
meet.
cians have their
categories
:
Other Securities——
24.8%
Obligations 21.1
Municipal
Obligations
3.6
Govt.
Loans and Discounts.
State and
Real
a
__
1.7%
45.7
Estate
-
has
to
2.8
As of the year-end date, the government bond portfolios were
distributed into the following maturities in the past seven calendar
Maturities-
-Maturities-
Up to 5
5 to 10
Over 10
Up to 5
5 to TO
Over 10
Years
Years
Years
Years
Years
Years
95% *
5%
1954-
__
1951___
78
22
__
1952
67
33
...
1953—
93
*5
1955_
5 or
more
14%
78
__
1956_
1%
22
84
gages
entered
!|
J
• i r
vf
;
1
financing package.
All
general
!i miniiimx
years.
obligations,
are
was
two years and four months to final
market
carried
securities,
on the
including
reserve
The bank's average rate of return
on
S.
maturity.
Government
books at cost, or, when purchased
premium, at amortized cost calculated
J. P. Morgan & Co.'s valuation
U.
to the nearest call date.
for securities is $1,000,000.
on its loans and discounts
its governments in recent years follows:
builder, in fact
1940's, when
of
13 N. Y.
City
Bank Slocks
/
r'
Laird, Bissell & Meeds
Members New York Stock Exchange
Members American Stock Exchange
180 BROADWAY, NEW YORK 6, N. Y.
Telephone: BA relay 7-3500
Teletype—NY 1-1248-49
Bell
(L. A. Olbbs, Manager Trading Dept.;
Specialist* in Bank Stock*
BANK
INDIA, LIMITED
Bankers
to
the
Government
in
Kenya Colony and Uganda
Head Office: 26
Bishopsgate,
London, E. C. 2.
West
End
(London) Branch:
13, St. James's Square, S. W. 1.
Branches In India, Pakistan,
Ceylon,
Burma, Aden, Kenya, Tanganyika,
land
Paid-Up
Reserve
Protectorate.
Capital
£4,562,500
£2,851,562
Fund
£3,104,687
description of
banking and exchange business.
Trusteeships and Executorships'
The Bank conducts every
also
of the
frantic
To¬
have
to
seem
safety factor
chase
after
to
home
for
said
about
the
ownership.
kind
that
Let's not fall
statistical
of
word
juggling.
The millions of families
left rented quarters to be¬
who
come
home
didn't add ap¬
owners
preciably to their regular monthly
shelter debt. They simply switched
from
monthly rent payments to
monthly mortgage payments. The
average home owning family's
monthly expense for housing is
not substantially greater than it
would be if they lived in a rented
house.
or
their
And
form
a
saving for the family.
in
J
that
Board
rugged
In its April Bulletin, the
points with some satisfac¬
tion to
the role played
by second
mortgage financing: in maintain¬
ing what it calls "active markets"
Board
undertaken
property. Of course,
refers
to
these
instru¬
"junior financing." But
believe me, only the name has
been changed. The danger is
just
as
as
real
as
it
was
in
the
late
20's
early 30's when just such topheavy "junior financing" in the
mortgage structure brought on the
great collapse. I ask you: do we
and
want to walk again the
road of the 30's?
There
was
a
time
long hard
not
*
too
long
ago when all of us concerned with
this
industry
—
lenders,
builders
and government—were agreed
that
high and stable level of housing
production was essential to the
a
economic
and
this country.
to
note
social
that
is
Our differences
I
but
ences,
are
am
honest differ¬
convinced
that
of them are rooted in basic
misunderstanding of our housing
economy
and suspicion in some
quarters of the government's role
in housing.
many
When the Federal Reserve Sys¬
welfare
of
I would be less than
of
helped
new
to
homes which
make
possible
it has
the
are
envy of everv nation in the world.
We do not believe it is perfect,
but
neither do
faults
its
heart
or
Senator
one
of
He
has
we
believe that its
be cured
can
by cutting out
removing its head.
Smathers
of
Florida
is
legislators who is keenly
aware of the need for modernizing
the FHA down payment svstem.
our
introduced
bill
a
the
in
by Congress in Senate which would make it pos¬
the early years of this century, it sible for more lower and middlewas
greeted with cries of alarm income families to buy good homes
by most of the leading bankers of on lower down payments than are
the day.
It was denounced as an now required. He has pointed out
unwarranted governmental inva¬ that the average young home-buy¬
sion of the private banking field, ing family of today has not had
and 'worse, But the banking com¬ the opportunity to save a large
was
created
munity finally realized that it was
tremendously valuable adjunct
a
to
over-all financial stability.
our
The Federal Reserve System over
the intervening years has become
highly respected and respectable
our banking
system. In
fact, there is a suspicion tbat in
a
servant of
respects
some
it
than servant.
is
Y"
master
more
.
\
Wants
a
amount
Better FNMA and FHA
bulwark
of
val¬
commercial
our
a
banking structure has its parallel
the
The
field
of mortgage
Federal
Home
cash
which
measure
to
meet
current
requirements.
is
the full
has
The
constructive
a
sup¬
port of my organization.
We
are
convinced
constructive
with
features such
as
ator Smathers,
that
FHA,
modernization
advanced by Sen¬
offers
an
unparal¬
opportunity for private in¬
dustry to work in partnership with
our
The story of the Federal Reserve
in
of
down payment
Smathers
Bill
leled
System's development into
champion of
sound credit, the Federal Reserve
Board, appears to have been lulled
by the music of second mortgage
money.
failed
I
something less than full
agreement on this question today.
ued
Even
if
The FHA program and the mil¬
lions
even-
Appearance of Second Mortgages
Uganda, Zanzibar, and SomaliAuthorized Capital
a
for
was
principal.
day, many lenders
lost sight
ments
of
mortgage lenders
the safety of their
for residential
NATIONAL
recall
can
recently as the
the chief con¬
as
late
the
First Quarter Analysis
I
time in my earlier years as a home
1930's.
Average maturity of the bank's holdings of governments at
the end of 1956
ele-r
the. mortgage
high-yield second mort¬
part of the conventional
as
there
tem
higher yields. They seem to have
forgotten the hard lessons of the
16
2%
morti¬
of
use
their
A"-'.';.:
,y;'fv.
in
85%
__
the
later.
cern
years:
1950—
been
Wants Lower Down Payments
Housing
on
honest
layaway plan
the
government-in¬
mortgage and to encourage
sured
about 36%.
were
Even
own
discredit
0.3;
Miscellaneous Assets
departure from the bank's breakdown as
1954, when governments were approximately
as June,
30% of total assets and loans
mone¬
Lately, another disturbing
ment
material
recently
a
financing picture. I refer to the
growing tendency among some
segments of the lending fraternity
the
is
industry
but denies a workingman
opportunity to decent housing
his family on terms he can
the
—pay now, go
assets
before.
ever
has
tremendous rise in mortgage debt
that accompanied this great shift
of
credit
11,058,079
20,157,629
Outstanding..
above
Much
mortgage payments become
American people, that encourages
Caribbean
pleasure cruises on
$77,832,862
—
afford
This
selling at approximately 13.5 times
tary policy that restricts nothing
but the housing
needs of the
$854,614,967
S.
are
7
page
home
question
Accounts Payable, Reserve for Taxes, etc.
the
book value was 9.5%.
The stock is held in good size blocks in many
The Blunt Tiuth
,
Letters of Credit and Acceptances
of
better Americans, better economic
risks than
apartment
Continued
in
t
breakdown
on
of
their
19,668,342
$30,000,000
30,000,000
17,832,862
Surplus
A
price
4,241,934
—LIABILITIES—
Official Checks
operating earnings
present
last year's earnings.
3,000,000
Deposits
the
on
institutional accounts.
$854,614,967
Undivided
of
1954.
390,961,831
Interest, Accounts Receivable—
of Credit
yield
ating earnings. The shares
1,800,000
Banking House
Letters
Nov.,
approximately 335 is about
2.90%; the dividend payout in 1956 was only seme 40% of oper¬
13,019,849
—
Loans and Bills Purchased
Accrued
In 1956 the rate of
The
30,500,104
Federal Reserve Bank Stock
Other Securities
in
share block at 225.
179,738,532
Municipal Securities
1951; 20%
at an annual rate of $14.45 per share. Dividend payments were
only about 53% of total operating earnings in the decade.
The general public did not participate in the ownership of
Morgan stock until 1942, when 16,500 shares were publicly offered
at 206. Then i,n 1943 the holding of the late J. P. Morgan went on
the market, 18,750 shares at 200; and this was followed by a 25,000-
$211,634,375
Government Obligations
S.
these people living in homes
own
are
better citizens,
And
Oct.,
of
In 1940, only 40% of
people owned their homes. To¬
our
or
—ASSETS—
U.
in
building
of millions.
296
25%
pro¬
apartments and bring¬
ing home ownership within reach
256
dividends:
volume
made
ments and
2081/8
21.67
stock
gave
a
which
tool
means of moving Ameri¬
families out of crowded tene¬
can
210
247.23
for
building industry
today, because
it
credit
the
of
crea¬
postwar years. FHA and the
related GI program have been the
2003/4
17.15
__
know
we
creation
principal
228.78
__
The
the
There has thus been good growth in this decade: book value is
35%; earnings about 125%; invested assets 40%; and dividend
about 87%. The gain to the stockholder (consisting of the growth
in his equity, plus cash dividends, of course, adjusted) was $144.45,
steady one since incorporation.
a
♦Due
11.52
214.14
that
marked the
a sense,
tion of the home
up
STATEMENT OF CONDITION—DECEMBER 31, 1956
"and
1621/g
6.67
203.00
__
♦Adjusted
As a consequence, the high calibre of the
business has been continued, and the bank's growth in accounts has
^
130%
207.65
imperative
tomorrow.
possible
142%
1583/4
1955.
zation had been trained.
a
177%
5.33
grown
and developing further the banking services in
at
$5.33
3,432
1,667
1,706
__
1954
incorporation, the bank had 77 shareholders.
to approximately 1,900 by the end of 1956.
The partners of the old firm became officers of the corporation.
The transition from the activities of the former widely known
private banking business was made with an eye to maintaining
U.
$1,598
__
1953
Low
High
8.58
__
1951
Dividend
the time of
At
been
Assets
$9.93
__
1.950
of Morgan,
and
FHA, in
duction
198.04
__
The company owns a one-third interest in the ordinary
Grenfell & Co., Limited, of London, and the
entire stock of Morgan & Cie, Inc., a New York corporation doing
business in Paris.
These two connections are important in the
conduct of foreign business. The bank carries on a general bank¬
ing and trust business, and is a member of Federal Deposit Insur¬
ance Corporation, the Federal Reserve System, and the New York
This
Earnings
■"■—Price Range-*
Invested
$196.28
__
1948
country.
shares
Oper.
is ' equally
builders for the first time
■
Value
It
FHA's advance commitment
*
Book
Thursday, May 16, 1957
.
FHA be modernized and strength¬
ened to meet the needs of today
as
TEN-YEAR STATISTICAL RECORD —PER SHARE*
This company was organized in March, 1940, under the laws of
New York as a trust company, and acquired the banking business
.
of boom-and-bust cycles th&t have
harassed us in the past.
2.20
1954
On Govts.
On Loans
.
finance.
Loan
Bank
System, The Federal National
Mortgage
Association
and
the Federal Housing Administra¬
tion have played vital roles in the
own
government toward
our
goal of better housing for
every American family.
common
All of
us
here have
a
fundamen¬
tal stake in the continuing growth
and
stability of the housing indus¬
try, the builders who erect the
the
manufacturers who
provide us with the materials and
equipment for those homes, and
homes,
the lenders who finance them.
We
America and in the have a basic
responsibility to con¬
financing pat¬ vince
those in authority that hous¬
terns
which made that housing
ing must occupv a fair place in
possible. I am firmly convinced our
economy.
If we fail in that
that
these
activities must be
responsibility, I can see no alter¬
broadened
and
strengthened to native but the ultimate socializa¬
meet the challenge of the future,
tion of both mortgage lending and
the challenge of the 1960's when
home building. It is time we close
we will
be called upon to house
ranks, put our industry's house in
many more millions of people than
order and go forward in harmony
are in the market for homes today.
to the big job ahead.
for
housing
of
establishment of the
More than
a
year
ago,
exam¬
ple, NAHB proposed to Congress
that FNMA be reorganized into a
true central mortgage
With SBK Investment
facility that
(Special to The Financial Chronicle)
help provide the financial
DENVER, Colo. — Robert T.
stability .that our industry so badly
needs.
We are still hopeful that Kittleson has become connected
this can be accomplished and we with SBK Investment Corp., cen¬
intend to continue our fight for
tennial Building. He has recently
it, because without such a system,
been
with
Carroll
&
Co.
and
the home building industry will
continue to face the same menace Birkenmayer & Co.
would
Volume
185
Number
Slock
5638
The Commercial and Financial Chronicle
;
.
Forms R. Edelstein Co.
Exchange Drive for Protestant
Welfare
Robert
Securities Salesman's Corner
Agencies
Robert
at
if
Who Is
Broad
to
When
build
you
starting
are
to
out
that you take all the business that
comes
your
But
way.
after
He
while;
a.
t^eir
There
is
worth
others
that
amount
of
are
excessive
attention.
to
....
require
into
someone
These people
minority but as soon
as
this
like
in
are
send
you
other
expect
this
let
one
When
category.
run
is
the
best policy to politely, but
times
if
clear
an
^account
firmly,
Some¬
position
unprofitable
business/
make
you
your
otherwise
be
can
into
turned
Welfare
drive
Exchange
of the
Federation
of
Other
active
businessmen
board members Francis L.
S.
in
the
drive
Some
a
w:
H. Richard and Louis J. Rouleau,
Jr. have become connected with
(Special to The Financial Chronicle)
F. J.
JACKSON, Mich. — Donald G.
Corley is with H. H. Butterfield
& Co.,
City Bank Building.
Davis, Joseph Walker & Sons; and George C. Textor, President,
(Special to The Financial Chronicle)
/With Skyline Sees.
LAKEWOOD, Colo. —David S.
Butler, Joyce I. Bovik, Jack T.
Baker, White,
fice.
R. Peters Burr, F. S. Moseley & Co.; Mr. Dudley
to
This
of Prot¬
members (from
■! NEWARK, N. J.—Maurice Bert
is
Bruck
firm
members
Kohn
E.
Richard
of
&
York
the New
of
Co.,
Stock
Exchange, 20 Clinton Street, New¬
J.
N.
ark,
&
King,
&
a part¬
Libaire,
securities firm, and
Co.,
that
before
formerly
was
Eisele
in
Stout
for
was
many
retailers
where he
The
in
that
the
making
are
was
Son,
Amboy
Perth
in
resident.
a
Banks
John
bentures,
of
agent
collateral
the
yesterday
T.
a
announced
15).
(May
the
bentures
million
$38
2%
de¬
Bank
for
of
the Central
of
Cooperatives,: maturing
June
1,
'
An active
participant in welfare
on the state
fraternal affairs
and
level, Mr. Bruck has recently been
reappointed by Governor Robert
Meyner to the Board of Managers
of the New
Jersey Home for Dis¬
Menlo Park on
abled
Soldiers
which
he has served
he
is
At
for 20 years;
President
former
a
Board.
at
is
he
present
of
the
Right
Worshipful Junior Grand Stewart
of the
Grand Lodge
State
the
is
such
a
of
and
Jersey
New
member
of Masons of
the
of
staff
as
of
1957, to repay short-term borrow¬
ings,
The
at
The
par.
The
through
St..
Grand Master.
Mr.
South
to the
ber
East
Bruck
lived
where he
Orange,
Village Club.
of
while
a
Temple
Orange, he
Temple
Beth
Amboy
during
Now
Sharey
was
belongs
a mem¬
Tefilo
in
President of
Mordecai
his
in
in
Perth
residence
that city.
in
York
offered
about M^v 21.
or
will
be
City, with the
as¬
nationwide group
a
of
security dealers.
The
tered
under
Farm
the
under
and
the 13
ernment,
the
over
his
enjoyed
his time was
his
with
so
make
to
Since the customer was
trip.
reasonable
and
over
account
Time
is
your
most valuable asset
and unless you use
both
advantage
clients
regular
the
secured
obligations
of
well
as
cooperatives,
capital stock in these Banks,
are
obligations
not Govern¬
and
are
not
guaranteed by the Government.
5580
8962
the fixed rate of interest of
No. 8962.
The interest of $2.07
the basis
A Good
has
it to
your
and
you
will
be
best
your
of
out
Customer
is
customer
amount
in
make
it
to
worth while for you to
vestments
service his
should
customer
to
should
confidence
over
to
of
copper
Share in tax
and
-
.
826,258.
969,580.
importation of petroleum for the
copper
industries
(Article
7th
of
405,247.
of January 6, 1938)
Pursuant
to
the
extension
granted
by
the
Supreme Government under the terms of Fi¬
nance Decree
No. 10,234 of December 10, 1954,
the
period for acceptance of the exchange au¬
will remain open until
thorized by Law No. 8962
December 31,
1957.
to
per
$1,000
of
against presentation and surrender for cancellation
the two coupons corresponding to said payment, (in the
case
of the
City of Santiago, Chile Twenty-One Year 7 °Jo
Ext. S.F. Bonds dated
of
needs.
available
of $2.07
bond
January 2, 1928, the said payment
by presentation of the bond for endorsement
letter of
you
the
the
interest
payment)
together with
an
appropriate
transmittal, at the office of the correspondent of
undersigned in New York City, Schroder Trust
Company, Trust Department, 61 Broadway,
New York 15, N. Y. Letters of transmittal may be
obtained at the office of said
correspondent.
doing business with you
the telephone.
Personal
con¬
occasionally when something im¬
portant arises, and, if possible, he
A
-
US$
companies
on
Law No. 6155
that
sultations should only be required
should
on
following revenues:
give
the proper in¬
suit his
be
so
by telephone and should not be ad¬
verse
1956 is calculated
Participation in the profits of the Corporation de
Ventas de Salitre y Yodo of Chile
Share in the taxes on income of the 4th category
will be made
good
He
year
titled to receive the aforesaid payment
someone
securities
or
money
sufficient
A
for the
provided in Law No. 5580 with respect to the
Holders of bonds assented to Law No. 5580 will be en¬
good
that
of $2.07 per $1,000
bond. This compares with
3% or $30.00 annually per
$1,000 bond received by holders of bonds assented to Law
at the rate
pocket.
A
external
plan of service of old Law No.+
and do not accept the new plan under Law No.
will be entitled to receive for the year 1956 interest
was
profitable.
now
was
sell him
Administration.
No. 8962 announces that holders of bonds of the
debt who assented to the
the telephone and
can
of
Caja Autonoma de Amortizacion de la Deuda Pub-
lica, in accordance with the provisions of Article 3 of Law
*JS$2,201,085.
business
this
service,
good
transacted
you
They
Assented to Law No. 5580
receiving
was
char¬
1933.
Service of Bonds of the External Debt
nitrate
the
full
are
Mile High Center.
Republic of Chile
clients
other
afford
his
Although the Gov¬
their debentures
ment
he
you
supervision
are
several
as
of
the
Credit
Banks.
told
was
and that he didn't
service
provisions of the
Act
debentures
joint
owns
The Banks
Credit
Farm
The
marketing,
business
and
cooperatives.
he
Cooperatives
make loans to farmers'
ourchasing,
of making the
account.
for
Banks
small
couldn't
he
n^red
William
130
Knox,
Mr.
New
sistance of
the
for
on
issue
new
be
this
and
that
but
up
of interest will
rate
be announced
operations.
will
debentures
onerete
the
lending
for
and
than
much
how
the
The proceeds will be used to re¬
deem
were
business
do
taken
fiscal
Knox,
Banks,
calls
The salesman politely told
visits,
de¬
trust
other
come
good
to your
customer
CAJA AUTONOMA DE AMORTIZACION
EDUARDO SOLMINIHAC K.
General Manager
Santiago
office.
does not ex¬
pect to free ride every fast mov¬
L.
with Allen Investment Com¬
pany,
customer wanted him to
to
him
for
State
and
instead
person
want
arrangements
retired
dhy of his time
and
person
in
for Cooperatives -that
Banks
13
325
Company,
talking
couldn't afford to
longer because his
any
telephone
trip
public issue of $46,000,000 9-month
years
President of Joseph Bruck &
shoe
:
Colo.—Thomas
now
&
Street.
The
profitable
more
Cooperatives
consolidated
Mr. Bruck
ner
For
associated with the
now
Two With Allen
DENVER,
Red
was
entire
work
phone.
Offered by 13
Investors
T.
Sheffield
trip
account. He called the man on the
Debentures To Be
.
long
the Boston
and
just
it
make
desk
call
Richard E. Kohn
added
been
E.
every
customer
the
man
an
he
and
fund
M. B. Brack With
have
G.
small
a
and
the
Finally, the salesman woke up
the! fact that this .'trip
took
right)
1957
of
Johnson and Verna H. Walker are
talk.
like to
about
Donald B. Tansill, President of the textile firm of
general chairman of the federa¬
appeal; Ralph Hornblower, Jr., partner in the
brokerage firm of Hornblower & Weeks; George C. Textor, Presi¬
dent, Marine Midland Trust Co. of New York; and Francis L.
'Blewer, partner in the brokerage firm of W. E. Burnet & Co.
^
•
to
client
made
outlook
Sox.
M. Lowenstein & Sons, Inc., and
tion's
staff
LONDON, Conn.—Robert
L. Calvert is now affiliated with
politics, religion, the busi¬
he
organization for the city providing coordination and a central pro¬
•left
he
about
gram for 212 Protestant and non-sectarian agencies.
Active in the Stock Exchange drive of the Feueration
board
Oakes
E.
the
a
with
ness
general chairman of the federation's 1957
;■'Vv Vv'r
v
federation is the central Protestant welfare and health
federation
New
hours
& Sons, Inc., is
appeal.
are
to
Inc., 1950 Taft Drive.
Each time he spent several
order.
Stanley & Co.; Mr. H. Ward Reighley, DeCoppet & Doremus;
"Mr. Charles W. Rendigs, Jr., Bache & Co.; Mr. Donald C. Stroud,
McDonnell & Co.; and Mr. Richard Vivian, The First Boston uor^.
Donald B. Tansill, President of the textile firm of M. Lowen-
Agencies-
seph
Inc., 619 Nineteenth Street.
through traffic to this man's home
and he would usually get a small
gan,
Welfare
rep¬
in
followed
securities
of
often
so
Co.; Mr. J. Edward Newton, Glore, Forgan & Co.; Mr. Jansen
Noyes, Jr., Hemphill Noyes & Co.; Mr. H. Lawrence Parker, Mor¬
estant
by
told
was
he
this
sold
He
amount
Cates, Kidder, Peabody & Co.; Mr. William S. Goedecke,
Smith, Barney & Co.; Mr. Leonard L. Marshall, Jr., Harris, Upharn
The
Elsloo, Frank J. Kozeluh and Jo¬
DENVER, Colo.—Lee C. Hazelis with Skyline Securities
wood
(reply from an
miles from his of¬
60
about
ad)
&
fund
Co., 11 Wabash Ave.
lead
newspaper
F.
.stein
Leazes
Joins G. E. T. Investors
NEW
firm
a
business
this
in
Marine Midland Trust Co.
Weld & Co.; Mr.
*
England that when he started out
Blewer, W. E. Burnet & Co.; Howland
Committee members also include Mr. Philip D.
'
;
registered
a
for
resentative
federation
include
I
ago
years
friend who is
Hackettr and
L.
WORCESTER, Mass.—James' M.
Fell, Patsy L. Mercandante, Luke
With H. H. Butterfield
;
(Special to The Financial Chronicle) i
Case in Point
help support its 1957 budget of $618,827
opened Monday, May 13, under the leadership of co-chairmen
Ralph Hornblower, Jr., a partner in the brokerage firm of Hornblower & Weeks; and Hollis K. Thayer of Dominick & Dominick.
G.
With Sheffield Co.
Protestant
to
Agencies
CITY, Utah—The
Ackerson-Hackett
(Special to The Financial Chronicle)
one
that is worthwhile.
Stock
of
With F. J. Leazes
you
know!
me
(Special to The Financial Chronicle)
discourage their
LAKE
name
changed to
Company.
losses
some
the
you
it
York
securities
Investment Company, Continental
national Bank Building, has been
an
and
only wish to
participate in fast moving, over¬
subscriptions of new issues and
take a free ride, then they give
their regular business to someone
y!
should
into
find
Others
else.
also
firm
ready to take them.
There are many investors that
fit
you;
service
New
a
and be
you soon
business
He
-
learn that
there are a number of people that
take up more of your time than
ness
should
par¬
clients.
you
have been in the investment busi¬
in
Now G. L. Hackett Co.
ing issue wherein your firm
ticipates.
clientele it is only natural
a
formed
with offices
Street,
engage
SALT
>.
has
Co.
business.
Good Customer?
a
Edelstein
Edelstein
25
City
By JOHN DUTTON
The
27
(2299)
April 30, 1957,
DE LA DEUDA PUBLICA
SANTIAGO WILSON H.
President
23
The Commercial and Financial Chronicle
(2300)
industry
Graphically Portrayed
Decline in Real Profits
of Boston's study shows 1956 profits, on a
First National Bank
dollar
1947
base,
we
The
First
"New Eng¬
publication of the
Monthly
May
Letter,"
a
National
Bank
Boston,
of
points out that "management, sci¬
and technology, represented
by
this nation's
manufacturing
industry, have borne a stagger¬
ing load during the active post¬
ence,
Our goods producers
poured nearly $115 billion
war
years.
have
substantial
spiral
Prices
infla¬
economy.
in
an
labor has been
growing share by
forcing
compensation
costs
up
more
rapidly than justified by
increases
in
productivity.
Net
profits have been shrinking and
have failed to provide sufficient
nourishment, endangering sound
tionary
pre-empting
as
a
long-range growth. The ratio of
after-tax profits to sales for man¬
ufacturing corporations was ac¬
tually
than
less
30%
around
in
1956
"Corporations
sumers
no
At
time
a
become
we
have
to
when
huge
accustomed
so
job
for
a
production
required an investment
in early 1956 at $14,-
worker
estimated
in
employment
Assuming
000.
manufacturing
labor
our
accounts for oneannual addition to
the
of
currently esti¬
three-quarters
force,
around
at
million
a
been
less
much
im¬
the
for
1947 through 1956,
of
one-half of
years
allowance
after
dividends. The re¬
a rather lim¬
replacing old plant
and
equipment in a period of
rising prices when depreciation
accruals have been completely in¬
earnings for
mainder represents
ited
for
sum
sufficient."
"That the
in
rapid
constant
to
in
of
fact, since 1947 the prices of
heavy construction and factory
equipment, the most likely ex¬
penditures for retained earnings
of business, have risen twice as
rapidly as have consumer goods
and services.
Thus, in 1956, con¬
sumers'
dollars
purchasing
dollars
had
cents
of
business
cents, in compari¬
Corporate retained
and
power
but
83
72
with 1947.
chart.
outran
adjustment
rate
would still
productivity. Even if
were made for an 11%
factory employment,
gain in compensation
be half again as great
that in
output per man hour,
which for
the period in question
as
its
above
the
seen
chart
long-term
the
at
the
that
well
running
apparently
was
rate.
From
right it will be
gain in sales
relatively less than that in
was
com¬
pensation, the principal cost fac¬
After-tax profits showed but
a
lars, with the average annual gain
the decade only about one-
17%
filth
actually 40%
were
less after price ad¬
week
to
Alarming
Trend
"This
alarming trend has
serious
implications.
of
our
national
some
The
income
originating in manufacturing is
nearly one-third. Total compen¬
sation
ees,
of
manufacturing
including
and
wages
supplemented
employ¬
and salaries
forms
of
come,
is slightly greater than
third
of
total
great as that in manufac¬
as
sales.
turers'
On
a
dollar
1947
further upward pressure on wage
This
costs.
population
of
could
only result
in
increase
of
40
over
may well be a 17
million increase in the number of
million, there
workers, many of whom will seek
jobs in manufacturing.
these jobs will re¬
far-reaching adjust¬
First,
dollar
shrinkage
must be halted.
Then, it will be
essential that the opportunity for
more adequate profits be provided
through more carefully integrated
"To
assure
quire
some
ments.
price, and tax policies."
wage,
Elected to Committee
New
election
Chamber
York
has
Commerce
of
of
the
announced
Champion,
George
President of the Chase Manhattan
Bank, and Gerald F. Beal, Presi¬
dent
of the J.
Henry Schroder
Banking Corporation,
as
members
of its finance and currency com¬
mittee.
Walter
E.
Sachs, senior
Goldman, Sachs and
Company, was re-elected to a oneyear
term as Chairman of the
Mr.
partner
of
committee.
1',
•'
^
*
■'
.V
■-
Green & Co. Formed
DALLAS, Texas—Green
has
been
formed
6135-A Bandera
in
with
Co.
&
offices
to
Street
at
engage
securities business.
a
our
support in
in¬
one-
the 1947-1956 period.
well
the
to
point
dollar
same
sharply
It might be
here
out
also
that
has
purchasing
shrinkage
the
reduced
funds,
which in the past few years have
become a more important internal
power
depreciation
of
than retained
source
economy
one
way
or
must
"The
also
another,
a
serious
ing dollars
on
effects
our
of
a
director
of
The
Rio
Tinto
Mining Co. of Canada Limited has
been
announced.
Mr.
is
Petito
manufacturing
number of lesser
proper
line.,
SQUEEZE
a
PERCENT INCREASE, 1947-1956
Westinghouse and
here at home and
States Steel has its Bethlehem and
formidable
competitors to keep it at the
pitch of effort and efficiency. And so all along the
,
Why They Work Well
giant enterprises — and many others not so
large—are often widely owned, but their practical man¬
agement is in the hands of small groups of shareholders
who either
own a
large enough share of the business to
give them practical control or who have so convincingly
demonstrated their ability to : produce
prpfits that the
responsibilities of management are left to them. The
of their
measure
success
—not adherence to any
intrigues of
is the
profitability of the business
system of philosophy—and ordi¬
political sort do not enter the picture.
in general true:
organization is
keyed to efficiency and profit. Other considerations do
not enter to disrupt or impair the smoothness and the
vigor of operations. Broad policies are on the whole cor¬
rect or the enterprise disappears and is replaced by others
nary
a
What is true of the head management is
of the divisional managers. The whole
whose decisions
are
correct.
Not so,
obviously, with the Kremlin and Russian in¬
Here there is no competition to set the pace.
dustry.
There
is
of the fittest to insure vigorous
types of business or management.
Devotion, or at the least professed dedication to the com¬
munist philosophy and to the "line" as laid out by the
powers that happen to be in control in Moscow, is ;a
sine qua non of holding office or positions of manage¬
ment.
What might be termed career industrialists or
managers in the sense that we have them can not and
do
no
survival
selection of
thrive
not
in
such
circumstances.
Moreover
the
re¬
wards of success,
though possibly more in keeping with
results than formerly, are not of the same order of
magnitude as in this country—despite two or three decades
of political endeavor to reduce or eliminate them in the
United States.
Suppose there were only one maker of steel in this
and that this enterprise was managed from
Washington, say by the Cabinet, which had the duty not
only of fixing policy, but of choosing regional managers.
Suppose the same sort of situation existed in the auto¬
mobile industry, the rubber industry and all the rest. It
can
scarcely be necessary to dwell upon the mess our in¬
dustry and our economy generally would be in from one
year's end to another. Add to all that the supposition that
according to lav/ any manager or submanager must adhere
to the political philosophy of the government at Wash¬
ington, and you have some rough similarity to what is
taking place in Russia.
country,
The Best System
If
Joins Merrill Lynch
history shows anything it is that the most efficient
productive system of economic organization
is that commonly referred to as laissez faire. That is to
say where individuals are left to their own devices so
long as they do not interfere with the rights of others. The
and the most
(Special to The Financial Chbontclk)
TOLEDO, Ohio—John B. Farese,
joined the staff of Merrill
Lynch, Pierce, Fenner & Beane,
monarchies of older times which undertook to
616 Madison Avenue.
MANUFACTURING
ON
other
some
These
with
THE
;
v
competitors,
abroad. United
some
several
Morgan Stanley & Co.
Jr. has
shrink¬
a
partner in the investment firm of
earnings."
A Sane Look Ahead
This seg¬
Petito Director
The election of Frank A. Petito
as
Thursday, May 16, 1957
of them. General Electric has its
some
natural
Two Bank Presidents
The
page
.
See It
We
we
These influences
seem
likely to
contribute
to
added
capital in¬
vestment
requirements
at
the
same time that they are exerting
1956, despite the fact that the
latter
year
showed the second
highest total after-tax profits for
compensation from
all forms of livelihood.
ment
be
to
should
combination
in
in
very
certain
seems
base, profits were actually lower
justment."
share
toward auto¬
rising labor
pace
erally expected.
modest increase in current dol¬
for
1956
This
costs.
tor.
earnings which had decreased by
between 1947 and
quick¬
the left shows the
total com¬
in both current and
dollars, and that both
of
In point
the
of
periods
a
mation in response to
postwar rise of
the
erosion
at
clear
is
accompanying
in
insidious
on
firms
the
to
the
increase
same
Profits
squeeze
contrast
from
far
the
oil
manufac¬
turing has favored the employees
pressive. This applies particularly
to the comparison of wage and
profit dollars, which are subject
period of. rising prices.
ening
longer
There is
the
persons,
manufacturing corporations
of all
pensation,
has
toward
capital a further extension of the very
requirements would
be in the situation which has so adversely
over
the
past
order of $3.5 billion.
This would affected profits
Let us not forget either
take nearly three-fourths of the decade.
that by 1970, with an estimated
average annual profits after taxes
of
growth trend in terms of constant
son
in
jobs
from first
As
the
and
toward a shorter day or
the degree that is gen¬
The section
dollars
trend
to
1930's
due
the
of
rates
entrants
progress
"Each
dollar aggregates, it may be well
to
pause
and reflect that
our
a
the
force
work
for education.
con¬
affected by the chang¬
are
the
birth
fewer
are
future progress.
Squeeze
less than
ing purchasing power of the dol¬
lar.
into
low
1947.
in
labor unions for
periods at a time
work
accelerated
mated
surging
the
of
there
Continued
.
prospects.
further
ment
lessly
are
more
understood
other forms of endeavor.
Thus
a
healthy productive ma¬
chine is a requirement for our
third
have been mounting
the
widely
in
Today
moving closer to the chal¬
when
many
into plant and equipment, and $15
billion into research and develop¬
expenditures to provide new
and better products for our rest¬
of
share
be
and
future
of
shorter
former year was the second highest after tax
profit-year since 1947. In view of future capital investment
requirements needed to assure future jobs, the Bank advocates
more adequate profits and a Halt to price inflation.
though the
land
view
lenge
actually lower than in 1947, even
were
should
recognized
.
PERCENT INCREASE, 1947-1956
73.4
the life
interfere
and
activity of subjects, the mercantilist
system and the guild system, all had their day—and for
the most part ceased to be for the simple reason that they
could not survive in competition with the economic re¬
sults of free societies. In some ways the Kremlin is under
a severer
handicap than these former systems of social
and economic organization. It holds and must hold to a
doctrinaire theory of socialism or communism presumably
set forth by Karl Marx and Lenin. The answer to all prob¬
lems must somehow be found in the writings or teachings
of these leaders—and that does not tend to increase effi¬
.*2
38.8
&
31.8
ciency
or
productivity.
When the
nary
XSSSG&K
15.9
• ••
PROFITS-'1947' dollars
ordinary man in Russia or groups of ordi¬
in Russia are free to proceed as they them¬
selves choose to
and
0
AFTER TAX
men
let
begin and operate any sort of enterprise
pocket the legitimate profits therefrom—all without
or
hindrance from the government
out reference to any
-9.5
the day
and certainly with¬
sort of political creed—that will be
that the United States may well begin to wonder
some day in the future, an industrial rival may
whether at
/
,1947
iK.'
j
"
.
rise in that
:
1956
1947
1956
surpass
Manufacturing Employees
Manufacturing Corporations
such
part of the world to match and possibly to
the record that is ours. But, of course, even in
circumstances
time,
probably
very
considerable
Volume
185
-
Number
5638
.
.
.
The Commercial and Financial Chronicle
opportunity
periods of time, would have to elapse while the Russian
learned his way around in a system of private enterprise
in
land of freedom. But
a
cumstances
a
business
Of course,
in such specialized
comparable to
cases
most unusual
ours.
its
hordes
of
semi-slaves
record of economic achievement
Morris M. Townsend, Executive
Government will have to resort to cash borrowings again soon
(by
ties
Corporation and
dent
/
we
system of
Axe-
mutual
these
any
c o m
the
nies,
p a
estment
Company and
Townsend
Management
Company.
He will
organiza¬
tion
M. Townsend
Morris
as
in-
an
dependent
consultant.
Mr. Townsend, a veteran in the
banking and investment field, is
The Security I Like Best
proceeds to the corpora¬
being equal to $17.35 per
tion
share.
issued
B
class
The
shares
Fire, In¬
surance
Companies in exchange
lor assets which, according to our
computations, had
of
B
between
an
was
created in order that the corpora¬
would
tion
con¬
a
subsidiary of the two in¬
trolled
stricted
much
its
investment by
companies, this
was avoided
by limiting the ag¬
gregate
voting
power
of each
class, regardless of the number of
shares outstanding, to 50%.
greater
controlled subsidiaries—not to
mention
the two insurance
that
of
North
Accident
and despite the cor¬
poration's .almost
u n limited
growth
potentials,- its
class
A
shares at. this writing are priced
—
their
tional
standards, it is ridiculous
pricing. If Nationwide Life, for
example, were valued on the same
are:
(99.19%),
Na¬
Life
Casualty
price-earnings and price-to-equity
basis as is a certain very popular
life
insurance
issue,
its worth
would be in excess of $120,000,000.
That is just 2xk times the current
(92.92%), North¬
National
western
certain
and
ownership,
percentage
Nationwide
(51.13%),
Life
Michigan Life (50.46%). The
fifth company, in which the cor¬
and
poration holds a one-third inter¬
est, is the North American Ac¬
cident Insurance Company of
Chicago.
The
mium
market value of Nationwide Cor¬
poration's entire capital. Yet Na¬
tionwide
<
y
,
health
and
accident
they had
of
life
a
might
force.
income
last
other
169,000 of assets, and $142,000,000
life insurance in force, at the
of
one.
then, that while
Nationwide Corporation has been
been
It will be seen,
and
"sit"
should
on
its
it
do
no
present
more
than
holdings,
crease
in its life insurance in force
the same periods were
112%, 476% and 6,202%. These
increases were accomplished un¬
during
the
Savings
He
Nationwide
_
its
set
guished
Treasury's
Service
it
Life
are
the
invested
in
of
was
Distin¬
and
Dis¬
tinguished Service Citation.
He
joined the Axe organization in
March, 1949.
Headquarters of the Townsend
companies will be in Short Hills,
N. J., and their main objective
will be
Mr.
Townsend
number
a
of
is
stock
dividends,
of
first,
this
policy
very
are
modern
dividend
and
demand
to be very
in
the
rapidly-growing
disability insurance busi¬
plus a means of benefiting
nesses,
from
the
profit
opportunities
Golf Tournament
hold
*
F"t
*
t
the Ninth Annual
Wright
ment
,
Memorial
Walter L.
Golf
Tourna¬
Tuesday, May 21 at the
Country Club, White
Plains, it was announced by the
organization's President, Myrvan
on
Knollwood
P.
sional element very much
moved about very readily.
the competition is
70%
of
the
stock
prizes
one
for
low
will
Jr.,
of
awarded,
ful insurance
as
institutions; and the
keen
in control, so that quotations can be
This will continue to be true as long as
it is from corporates and tax-exempt
as
'
liquid Government obligations. Even with the Treasury refunding
operation, which was concerned in part with a short-term certifi¬
cate, there was practically no noticeable slackening in the demand
for
Treasury
institutional
bills.
It
buyers
indicated
is
who
that
have
must
corporations
other
and
available on short
notice, were not willing to make important shifts into a certificate
with a maturity of less than 12
months, namely the 3J/2% due
April 15, 1958. To be sure, tight money conditions have been re¬
sponsible in no small way for the attitude of those that operate
money
in the money market and, until there is some modification in this
policy, the demand for Treasury bills will continue to be very
Jsizable.
With
the
refunding operation out of the
way, and the cash
high side, comes the discussion about the next
Treasury into the money market. There appears
to be strong opinions around that a cash offering is in the making
for July, with other guesses that
borrowings will be forthcoming
pay-out
on
venture
of
the
the
before the end of the current fiscal year.
The "F" and "G"
Refunding Again in Focus
The money market continues to wait for news on the F and G
Savings Bond offer and it is believed in
will be
some
developments
quarters that there
many
this matter soon, so that the owners
on
maturity of the aforementioned savings bonds in June
opportunity to make an exchange into another Gov¬
ernment obligation if they so desire.. The important question at
this time seems to be will the Government be willing to make an
'Offer to the holders of the F and G Savings Bonds attractive
enough for them to make the exchange into a marketable obliga¬
tion.
Competition for the real savers' money is as keen as ever
an
and it is evident that unless the Treasury is willing to meet this
competition, the reception is not likely to be too enthusiastic. The
reason for such
opinions is the large offerings of corporate and
municipal bonds that are coming into the market at yields which
are
much
more
of
the
of
association's
the
are:
H. C. Brewer,
City
National
First
Thalmann
Trautwein,
The New York Stock Exchange,
Moriarity,
&
Co.;
The action of the corporate and tax-exempt markets
good and, in
Ladenburg,
Frank
and
J.
has been
better than that of the Govern¬
ment market, so it is not surprising that savings bond money has
been and still is being shifted into non-Government bonds with a
as
better return.
some
way
cases,
even
It is evident that the money
which has been coming
savings bonds has been responsible in no small
out of Government
"New
York, Chairman;
Barclay J. Conway, Purcell &
Co.; Carl L. Mochwart, Manufac¬
turers Trust Company;'JJohn J.
favorable than those of Government obligations.
Corporate and Tax Exempts Attractive
he
net.
Members
Bank
be
for low gross score, one
golf committee
for the favorable reception which has been given to many of
the
new
the
considered
flotations of corporate and tax-exempt bonds.
that
now
this
Also, it is
judgment of not a few money market specialists
exchange of Government savings bond funds for
corporates and tax-exempt bonds is
be
development that will not
a
easily overcome.
Joins Earle C. May
There appears
Thinking
to be
on
no more
Business Outlook
agreement
the future business
on
'
(Special to The Financial Chronicle)
.
PORTLAND, Ore.—Charles W.
Keller has joined the staff of Earle
C. May, 811 Sduthwest
He was formerly with
Sixth Ave.
Walston &
Co., Inc.,
pattern than has been the case for the last few months. There is
no question but what the reports coming from Government sources
in Washington are still very much on the bullish side of the picture
in
spite of the uncertainties which are being experienced by certain
segments of the
economy.
the money market
On the other hand, there are those in
who still hold to the opinion that the rolling
readjustment which the economy is going through will get worse
With BuyS, MacGregor
(Special to The Financial Chronicle)
GRAND
ert
E.
RAPIDS,
Schermer
staff
of
Mich.—Rob¬
has
to
the
&
been
added
Buys,
the year goes
as
at all
along. Based on this kind of thinking, it is not
surprising for them to be looking for a change in monetary
policy later this
year.
Up to
now,
MacGregor
Two With Jensen Co.
With Fordon, Aldinger
(Special to The Financial Chronicle)
(Special to The Financial Chronicle)
MARYSVILLE,
DETROIT, Mich. —Gardner S.
Schultz is with Fordon, Aldinger
D'lnnocenti
&
426 East Fifth
Co., Penobscot Building, mem¬
bers of the New York and Detroit
Stock Exchanges.
now
are
and
Calif.
Max
with Jensen
—
W.
&
Arthur
Mendel
Stromer,
Street.
Joins Westheimer Staff
(Special to The Financial Chronicle)
With Carl M. Grady
WOOSTER, Ohio—Lee H. Stinson
is
now
however, the tight money be¬
argument.
lievers have had all the better of the
Co., McKay Tower.
is
held for permanent investment by
two of the country's most success¬
continues
Caution and uncertainty are still the main forces in the money
market and this has created a very sizable demand for short-term
Burns, of Bear, Stearns & Co.
Two
said,
arising in other insurance fields.
than
Government securities
are no indications yet of any change in '
buying. The intermediate and long-term Government
still inactive, very thin and narrow, with the profes-'
are
will have
The Cashiers Division, Associa¬
tion of Stock Exchange Firms will
obvious.
life and
near-term
of the large
Cashiers Div. to Hold
poration's
interest
for
large and there
this kind of
markets
a
Society.
To summarize: Nationwide Cor¬
capital stock provides,
surprisingly low cost, a strong
\
\\
The
director of
a
corporations
at
the
the
small
capital growth.
member of the board of managers
of the New York Bible
the
4%, was paid
April 1, 1957. The tax advantages
More
Medal
in
very
.
Bearish
funds
annual
which
at
Divi¬
originator
Bond-A-Month Plan and
the
a
only $647,000,000 being taken, with reports that Governlargest owners of the latter issue.
?'■..
■* i
v.
Short-Term Issues in Demand
company.
with
of
Bonds
the
was
awarded
$0.15, and is payable
semi-annually, April and Oct. 1.
It is planned, however, to sup¬
plement
the
cash
distributions
its
growth potentials would appear to
be
very
great. During the past
five, 10 and 20-year periods, for
example, the asset increases of its
principal subsidiary, Nationwide
Life, have been 150%, 607% and
4,572%, respectively; and the in¬
And
The initial per-share rate has
year-end.
already ranks as one of the
most powerful factors in the life
and disability insurance field.
The basic operating objective of
Nationwide Corporation is growth,
value.
rapidly-growing life and disability
insurance fields, and with growth
its primary operating
objective,
the cash dividend policy of the
corporation will be a conservative
was
it
of
With
nearly $15,000,000; and it had $37,-
active for little more than a year,
equity
less
con¬
fully comparable to those of
North
year
for
be
records
American Accident's disability
premium
accounts
corporation's
mentioned, in passing,
that the growth and performance
total of $2,905,495,000
in
the
solidated
of
insurance
Life
half
than
pre¬
the four con¬
trolled
companies last year
totaled
$26,235,000;
and at the
year-end, their aggregate re¬
sources
were
$437,302,000,
and
writings
sion.
ft- y «#-*■
principal assets of Nation-' at a discount from their indicated
wide Corporation at this time con¬ equity
value, and at less than
sist of controlling interests in four nine-times earnings.
By even the most conservative
life and/or accident and health
insurance companies, and a strong standards, this is low pricing for
good growth
investment;
by
minority interest in a fifth. The a
companies,
Treasury's
American
The
stock-controlled
director, banking
investments, of the U. S.
and
—
companies, and thus re¬
in its activities. Despite
surance
the
become
not
the
of
equity
equal
to about $19.50 per share; and the
adjusted 1956 earnings accruing
to its present holdings—and not
including its interest in the un¬
distributed
earnings
of
North
American Accident
were equal
to $2.14 per share. And despite
the remarkable growth records of
actual worth
capital
estimate
consolidated
value at this time would be
$18 and $19 per class
two-class
conservative
A
corporation's
share received.
The
Nationwide
Corporation's present manage¬
and
without
benefit
of
added capital, or the purchase of
business from other companies.
Nationwide Mutual
and
of
ment,
were
the Nationwide Mutual,
to
former national
direction
the
der
net
the
taken
was
$2,341,000,000, whereas the 3%% note is
bonds.
Axe
2
certificate
con¬
tinue with the
page
result of the $1,167,000,000
as a
ment agency accounts are the
own
Townsend
n v
the
fpee enterprise of
from
issue with
•
posts to
head-his
ours as we have been
doing—and expect the next century to match the past.
Continued
amount of
funds,
has resigned
necessary, to add
afford to continue to abuse
meanwhile
not
the
;Houghton
,
mmmmmsmmmmm
fitting, however, indeed it is
can
increasing weekly Treasury bills),
cash redemptions.
The 31/2%
of
Vice-Presi¬
of
Director
and
I
It is
Governments
on
By JOIIN T. CHIPPENDALE, JR.
Vice-President of the Axe Securi¬
^\
that
Reporter
Head Own Companies
remotely comparable to
ours.
this
show
can
Our
one.
Morris Townsend lo
safely be ignored or forgotten. But of one thing we
be certain: It will be a long time yet before the
and
a
Despite sizable assistance from the Federal Reserve Banks,
the Treasury had a difficult chore in the
refunding of the May 15
issue of l%s.
The Central Banks and Treasury Trust accounts
came into the market and
gave support to the Treasury operation
and, by so doing, kept down the size of the attrition. Nonetheless,
the actual out-of-pocket
payments by the Treasury in this refund¬
ing was 28%, one of the largest on record. And it may be that the
foolish to suppose that the Kremlin and its machinations
may
in
29
associates
Counter Market.
and their rulers have world-wide ambitions. We should be
Kremlin
hands
with
stock is, indeed, the security I like
best. It is traded in the Over-the-
ducing armament, the Russian system may work un¬
fortunately well. The Russian people have long had to
bare subjugation intolerable to free men. There is no
special reason known to us to suppose that they can not
be imposed upon in whatever way is necessary to build
or
maintain a formidable military establishment in the
future as in the past. There are a great many Russians,
could
join
Nationwide Corporation class A
that of pro¬
as
to
venture
of this calibre, and on approxi¬
mately the same cost basis, is a
beginning would in such cir¬
by Russia in the long, long
have been made
march toward industrial achievements
(2301)
affiliated with Carl M.
Grady, Peoples Federal Building.
DAYTON, Ohio-Theodore Shahas joined the staff of Westheimer and Company, Third Na-
With
OMAHA, Neb.—James A. Sun¬
now with Kirkpatrick-
derland is
Pettis
Bank
Company, Omaha National
Building.
With Shearson,
SPRINGFIELD
B
man
tional
Building.
Kirkpatrick-Pettis
(Special to The Financial Chronicle)
T_
Cooley is
,
Hammill
M a S S.
—
'n0w with
n
son» Hammill & Co.,
tional Bank Building.
Clar-
Shear-
Tv,ir^
Third
at*
30
The Commercial and Financial Chronicle
(2302)
available
Continued from page 11
timber
re¬
to
which might be
for grazing. This
should not be indis¬
and
shifted
misleading
by such
leases.
some
grass
ex¬ adjustment
only supplier. criminate but should be a process
have stocks for of careful selection to get the right
which they seek outlets. Nor is it land shifted. Some highly produc¬
easy to give away surpluses or to tive land may have to be held out
Surpluses would be easier to
port
Getting to the Roots of
were
Other
The Perennial Farm Issue
The naive In fact, is it not the appropriate
attitude towards subsidy involving public funds that it is legitithe value of government stocks, mate only if it serves public inIf this were the case, why is the
terest?
CCC disposing of some of these
if
there
are
unjustified subthe CCC.
of
assumption on which this rests is
of supports decides
that the level
prices
lower
decidedly
elsewhere
and
abroad
stocks
at
even
or
sidies, the remedy is to take them
away.
To generalize them is no
should be held
terest rates
down
arbitrarily in order to reduce the
cost of the public debt; overlook-
extend.
f0
does
in
salvation
to
compounding sin.
times such
We
ought
at
is
Giving Monopoly Power to
This
of
few
a
belief
the
of
session
to
the
exaggerations in
us,
however,
contention
pos-
We
powers.
time
Let
the
aware
from the
monopoly
take
not
point out
these views.
take
that
look
at
agriculture
a
needs
"countervailing" power to
monopoly elsewhere. It is
held that only government action
can provide
such power. In fact,
one
of the pleas being made is
offset
for
of control which
prices required to give
farmers alleged "parity income."
Let us note this, monopoly power
a
program
will yield
arises
from
control
ideal
of
supply
or
a
as
desirable
to
No
Pr*ce relationships.
rebe^ofPP?r, Jj?
cf,n be
extensive
rather
cultural lines gain
shall
well
are
farm people that non-agri-
among
no
establish the appropriate ev s
and relationships of Pr^e .
parity formula may be very
*ul as ar? indicator m the changin2 relationships. It is
t
/?p\cemeat for (tb?^
as a
establishing these relationships.
Unfortunately, the w
p
y
bas sIi^ a.*r1?®
.f1?
C1l "
tice _that it has attained su
fjxed Place irJ 0lfr thinking
m
,
wiu
...
.
,
,
*„n,r
do
car
limitations of this approach, howbey ^a£
the errors to which it leads.
i.
away
at
that
cut
the
prices
Public participation and sharing
with
in the costs of
will
products
not show up in the regular
ket channels of this or other
temporarily in order to
use
the
we
It is not easy to give
sell
or
assurance
if
land
mar¬
ings
use
ever,
adjustment in
sucn
appropriate.
are
market.
the
dividual
How¬
expect
may
hear
to
for
uses
farm
more
farmers
will
not
neces-
trate major attention on farm sur-
pluses which trouble us today for
they are the dead weight which
possible force prices down.
»
if it should be found
even
them.
to obtain
here
that
between
is
agriculture
to note
difference
a
as
whole
a
the individual farmer.
and
Monopoly
gains
farmers would
trols
as
economical and reliable
materials.
raw
to industrial
individual
to
require strict
con-
right of entry into
that the gains would
so
distributed
number
only
needed
the
the
among
to
produce
monopoly
supply.
restriction
arbitrarily high prices
will
attract
Without
and
hold
such
so
many
people in farming, in spite of
duction
the
curbs,
individual
attractive,
that
the
would
often
attractive
not
are
How far shall
ers.
charg¬
for
expansion
it
growth
helps the
farmers'
However, indications are
that agricultural productivity will
market.
keep
for
with population growth
pace
least
at
while
the
be
cost
to
very
to
so-
the
next
decade
be
tre-
restriction
the
on
right to go farm-
ing.^ How is the government
achieve
to
be
this?
assigned?
situation
a
son
of
How
in
the
are
to
rights
Might it lead
which
farmer's
a
would have to have
to
some
form
"political clearance" before he
could start
on
his own?
It
is
not
to proclaim that the
easy
for
a
Congress
a
to
get
on
such
platform. Experience with
pres-
ent
production controls suggests
that
rights would be generally
assigned and, consequently, monopoly gains would
far
as
disappear
as
the individual is concerned.
o
*
x.
Justification for Subsidies
Similarly,
we
meet
ment that the cost of
gram
is
justified
the
a
argufarm pro-
because
of
al-
One
there is
popular
the
in
world.
effective
only
much
too
as
food,
need
But
demand
when
it
distribution
is
overlooked
grow
subsidy
of
out
some
is
that
objective
serving the public interest.
.not
the
land
intended
to
building
as
ment
the
to
of
benefit
grants
speed
part of
most
arrangements
of
Were
to
railroads
up
railroad
the developcountry rather tha|i
the
railroad "moguls?"
Being
sumption
lished
as
a
and
Unfortu¬
contribute
may
a
estab¬
The
their
to
incomes
of conservation.
by-products.
are
an
basic test for the soil bank
actual
sentials
for
that
administration
its
broad
and
selection
too
fat
results
be
is
given
discretionary rights of
in
deciding
Instead it needs to be applied
ers.
in
such
a
ductive
and
on
the
that
of
that
way
acres
under
you
acreage
be aided by providing rural
people with better training
non-farm jobs. -Better em¬
ployment services to provide in¬
for
formation about job opportunities
and
helping
will
aid.
to
farm
contacts
establish
Job
opportunities. in
people.
economy
needs
at a high level
be
kept open
of
rest
the
stable
operation
provide work
to
opportunities. Location of suitable
plants
in
with
areas
agricultural under-employment is
desirable.
The farm
population includes
good many who are not
cial
farmers
producing
a
commer¬
for the
By far the larger share
market.
of the market supply comes from
about 40%
of the total.
About
30% of the units included
by
the
the
census
commercial
farms
as
in
farms
not
are
use
careful
plan
go
for
This
reserve.
the
have
An
units.
of
census
An
those
im¬
classified
"commercial"
as
modest
sales.
To in¬
clude all of the so-called farmers
in
very
computing
for
farm
an
non-farm
very
ing
income
average
people
with
for
comparison
incomes
leads
to
distorted and mislead¬
results.
People
produce for market
who
are
do
not
not reached
by
programs
seeking
to
boost
prices in the market or otherwise
add
among
farmers.
and
by
share
some
should
selection
farms
self-sufficient
or
portant
use
accepted
are
sense.
pro¬
of
reserve
which
acres
crop
means
highly
held out
are
conservation
for
answer
effective
what lands
to accept for entry. The tendency
is to spread it widely among farm¬
Expand
put
adjustment
aided, not encumbered.
be
They are
adjustment bought with
part-time farms, rural residences
taxpayers' dollars. One of the es¬
of
capacity
to
population
should
are
is heralded
payments
increase
program
also
the
funds
also
make
to
way
as
It
this
was
which
for
and
to
not
is
ought to be in terms of the amount
to
income
related
to
produc¬
tion.
reduces
job.
time.
over
others
Larger Family Farms
should be
erably
long
as
becomes
the
in
market
associated
is
with
of I
food
throughout
the world?
Population and Exports Illusions
™
.
..
^any visualize the foreign mar-
,
ke} as some sort of a bottomless
pit which will take anything and
everything. That is far from a
\ru* Plcture* Personally I am disturbed over the frequent referfnc®8 e?anatli1? frT Washington
to the
of
exports
months.
recent
The unwary may assume that our
stocks are fast disappearing. The
cupboard
emptied.
to
might
the
that
being
the
a
publicity to
large share of these
involve
be
significant
costs
More attention also
called
to
the
acquires
as
has
news
equal
gave
CCC
answer
Would that the
public.
products
from
Citizens also may be led
the fact that
to the
far
is
believe
exports
produce
people
part
of
fact
that
replacement
its
support
than
in
upgrade
As
crops.
their
diets
best
and the
ers
consid¬
ing
people
with
dispiay
a
with
farm¬
of
public must recognize
land and capital.
our
to
program
interests
that it involves
to
resources
the
serve
point
adjustment
We
of
to
respect
well
as
as
witness¬
are
emotionalism
"preserving
the
be other employment.
may
opportunities, job information,
training
here.
and
Some
the
may
consumption.
Some
have to be cared
society
because
other
rural
clearly
for
of
as
age,
handicaps.
A
culture
Perhaps
an
income people on the land.
to
nology and mechanization. Fam¬
ily farms are growing larger but
farm
markets.
could
serve
ally
help
speed this shift to improved diets.
Every legitimate market possi¬
bility should be explored and de¬
veloped. Even though this is done,
need
for
A
is
an
the
unbalanced
might do
wait
are
for
not
more
it
market
a
market
suited
recovery.
to
are
balance
with
capacity
available
mar¬
into
that
workers
dropping,
increased
to
Corporate
merly
on
tural
use
intensive
think
which
would
use.
As
of
be
illustrations,
some
better
crop
used
we
of the
this
U.
to
is
not
activity
which gets the bold headlines, it
is
one
of real
significance and
promise.
Sight should not be lost of the
fact, that
rural
life!
limits
for
Let
settlement
adding to
health
and
sharing
shift
from
and
wear
living.
more
mean
Instead
opportunities
farms
remember
which
that
general
recognition.
City-ward migration
rural
population reaching the
productive stage in life gives sup¬
to the suggestion of broader
participation in such activities.
port
tear
machines, im¬
It does not
more
in such costs, hence, is
something which deserves greater
of
family labor.
better
us
public
while
to the
for
the community to serve the larger
and
other
are
Scattered
support
High
Level,
remain.
city-ward
Stable
Economy
Is Important
proved family incomes and higher
land
there
services aside from price supports
and the like which can improve
ever
of human bodies to
means
While
spectacular
a
entitled than
Increasing the size of the farm
under proper circumstances
means
improved productivity,* a
it
has
the needs of low
serve
costs
of
education,
highway services. A
unit
levels of
modest
program
leadership
Department of Agri¬
S.
farms
likewise
depopulated communities.
agricul¬
and shifting some to less
development
of
started under the
Our
workers
taking
out of
been
increasing.
hired
be
more
true.
further
land
size,
on hired labor,
so
increasing, the num¬
were
of
be
kets
calls
for
adjustment prin¬
cipally in the use of two factors
of production—land and people—
adjustments in land will involve
some
on
while
in
-cause
-
agricultural
hired
up
fact
The
designation of "family farms" bethey depend more than for¬
They
of
gradu¬
depend
would
short
adjustments
have
they
ber
Acre
a
of
been
has
farms
permanent nature needed
Bringing
number
this
if
to
quotas
of
case
farms.
shows
of
now.
into
the
use
answer
production.
and
were
parts
out of
being swallowed
corporation
wheat will remain.
appropriate
allotments
not
are
farms
the board
across
not
Farms
are
decreasing. This is
adjustment to fit modern tech¬
farms
of. holding
program
farms
a
as
well
not
growing larger and tneir
are
adjustment
considerable
in lines such
fact.
in
is
will
physical
numbers
and
grounded
which
own
wards
diets
farm"
help
production for their
prove on
or
will
like
be aided to im¬
family
might
tions
takes
Any
Job
increasing incomes, further shifts
to meats, dairy products,
poultry
and eggs may be anticipated with
resulting improvements in both
operations.
There is danger that
feed the exaggerted noof the export opportunities
It
farm
we
may
Helpful
pound of food in animal
a
products
Are
significant
noted.
more
advertising
releases
these
too.
is
of
been found.
What
it
incidentally, tr.at
purpose for which it
areas,
of
payment. How far are
ready to go in financing relief
means
we
answer
be
hunger and starvation
leged subsidies granted to others,
imaginations
build
up
of
have
one
astronomical ^ures in this realm,
Some
Doctors
However,
tural
-j-
encouraging people
Population Adjustment
The
While
something else. out
why not increase the stretch the
But
sound, but just what does it
record-breaking" agricul-
„
date.
to
end
or
and
Farm
industrial
of
Diets
has
It would
elected
the
product
one
use
Upgraded
good thing, such
as
peraspirant
to
an
of
use
reduce the
in
stomach.
a
That
over-production.
wise
alm0?t superhuman
suasiveness
the
limits
human
over¬
problem than others.
particularly true in areas
with
limited- opportunities
for
commercial agriculture.
is
to
problem is under-consumption and
mean?
might
to
easy
the
agricultural
serious
more
a
awakening of public opinion re¬ £ An entirely different program
is needed to reach the really low
hide stocks involving $8 billion life expectancy. If a man's life
garding what is at stake could be
income people on the land.
of the public's money held by or span is cut five years by over¬ very useful in
The
molding a really
under loan from CCC. Nor can weight, the amount of food he effective adjustment
problem actually is more of a so¬
program. Un¬
would consume in those five years
cial than an agricultural problem.
the taxpayers escape the daily bill
fortunately, prospects are that the
A modest number of these people
of $1 million for storage. What is much greater than the amount scil bank may fall
considerably
needed
to
the ultimate losses will be in sales
put on an extra 25 short of this
goal. We, therefore, may have the capacity to grow
into successful commercial farm¬
below cost, in deterioration, and pounds in body weight. So eating need to
develop a replacement
to excess would tend to cut rather
ers to replace those who may re¬
in effects on the market also are
program which will really do the
than
to
increase
the
food
con¬
tire.
The best soiution for some
important.
that there cannot
use
of
the
that,
poor
resource
of
imaginary.
ciety in terms of prices, taxes and
mendous. Carried to its logical
end,
the
monopoly
argument
means
fact
fat?
not
repre^
was
lation
Some
have
areas
The
These
than
generally.
agriculture is not evenly
to
for food
better
in
distributed.
other fields need
outlook
the
is
adjustment
farmers to
is
It
legislative
with the problems
cope
in population
Surely, the future market
by
It
to
growth.
in the 1930's when population
seemed to be levelling out. Popu¬
living
young
developed to
was
objectives.
appropirated.
promise
great
see
of
nately, it has some built-in handi¬
One of these is the difficulty
of keeping the adjustment goal in
snarp focus.
Some want to view
the
program
as
crop
insurance.
to the tax¬
up
consumers?
Many
market
farm¬
Program
caps.
products
to
go in
we
ing the difference
payers or
hope to dodge this trouby trying to picture
surpluses as unimportant, if
pro-
gain
not
Some
of
attractive
of farm
bank
these
action
of
sources
Prices
uses
Bank
sents the most concrete
it should be, interested in the most
blesome issue
not
the
on
farming
be
We need
there
The soil
serve
products
however, that industry is,
are,
agricultural nation with
It may
Critiques Soil
action.
our
It, therefore, fol-
sarily gain from monopoly benefits for agriculture as a whole,
pri¬
problem of under-employ-
ment
shoula satisfy ourselves
we
unfair competition and to
as
object to
Our problem
As suggested earlier, prices are two.
promises to
lows that very decided restriction not the cause of the agricultural continue to be one of surplus.
on
But why not get rid of supplies
rights to produce would have dilemma. The real cause lies in
to be imposed on agriculture to the factors which influence prices, by
advertising?
Again
we
en¬
create such monopoly prices. In- We, consequently, need to concen- counter
the
stubborn,
physical
of
remained
population
the market.
it
Without
nation.
have
The
simpler
be
of
The
look may provide.
Surely, let us ex¬
There
ploit every economic use that can
which stand on its own feet. The facts
itself.
base
period
long-time guide
this
problem of surplus disposal.
did not have to worry about ef¬ Here again selection of land which
will yield the best results in terms
fects.
But surplus disposal which
replaces normal sales represents bf production curtailment is im¬
costs
without
any
expansion in portant.
might
prices.
long
a
idea
parity
serves
Farmers
More than
the
to take
of
would
we
an
industrial
these.
as
ment
levels
bargain
about the wonderful outlets which
Confusion About "Parity"
sequences
migration is not new. It has been
going on throughout most of the
history of our land. It has been
part of the growth and develop¬
lower
We
the graver inflationary con¬
of such a program in
ing
road
The
lie
not
Thursday, May 16, 1957
.
marily
at
This argument solution. Similarly, if undue adcoun¬
that the result is to achieve ad¬
apparently is a near relative of vantage is taken
of monopoly tries. Producers in the receiving justment, not to prolong malad¬
the one which contends that in- power, the remedy is to curb, not country tend to view such offer¬
justment.
giving them away?
.
ease
them
sell
problem
holdings
the
we
exporters
.
It would be
if this
tention
an
occasion
to
oversight indeed
did
some
not direct
interests
at¬
which
farm people have ill the programs
and activities in the rest of the
economy.
Mention
already
has
Number 5638
185
Volume
of the
made
been
.
The Commercial and Financial Chronicle
.
which
concern
stability at a high
farmers have in
This is
in the economy.
level
.
es¬
sential
for
and for
employment opportunities
who
those
for
markets
farm
strong
the
leave
farm.
such
appeals
have
We
will
been
weight?
carry
concerned
about
will
be
which
better.
performance
cies
to
have
endeavored
by
fiscal
to
and
apply
policy, hence, includes gov¬ policies. (The pressure for budget
programs in the fiscal, < cutting being applied to Congress
monetary, and other fields which and the Administration today sug¬
promote stability. It includes also gests that there is rather wide¬
in
interest
and
zations
the
attitudes,
of
programs
leaders
and
of
pol¬
organi¬
business,
Farm
people rather generally
accepted the market situation dur¬
the
early
and
war
fiscal side might
plied
postwar
well be
on
ap¬
vigorously so that we
some
debt-reducing
in this period.)
There
more
have
could
industry, finance and labor.
ing
spread opinion that the brakes
the
surpluses
have been
that
veiled suggestions
some
direct
more
market
is
presents
to
one
Public
Utility Securities
destroy.
monetary
ernmental
icies
challenge
the
in
develop improvements rather than
At A
Farm
an
The
weaknesses
the dangers of inflation in this pe¬
riod of high activity. Public agen¬
brakes
interferences
31
(2303)
By OWEN ELY
Crossroads
Those who say that it is an idle
dream
to suggest
return to the
market may well take note of the
fact that the present price sup¬
ports
apply to a minority rather
the majority of the farmers'
than
of market
sources
of
case
income.
the
In
livestock,
poultry
and
most of the fruits and vege¬
eggs,
tables, price programs, if any at
all,
are
minor
and
incidental.
General Telephone Corp.
General Telephone, the largest
independent telephone system, has
enjoyed a fabulous rate of growth
issue. General proposes to offer
1.3 shares of its own common
stock for each common share of
—from $13 million to $237 million Peninsular. An exchange of prerevenues in the past two decades,
ferred stocks will also be worked
This
has
been
due
to
several out, on a basis to be determined,
factors: (1) regular growth — the with the new General Telephone
company has important operations series to be convertible into comin California
and
other growth mon. Subject to registration and
might be necessary to keep things
one that could not con¬
in hand.
Decision-making rests with the areas; (2) acquisition of the big
indefinitely.
They
were
farmer.
However, we are ap¬ Gary System and a number of
Is not this a strong hint to those
conditioned, consequently, to the
proaching a crossroad. Either we smaller telephone properties; and
prospects of some downward ad¬ who sit at the helm in directing
return decision-making generally
(3) rate increases and improved
justment in prices received. How¬ the use of organized strength, to
to the farmer or we expand gov¬ allocation of
long-distance reveexercise
moderation
lest
public
ever, they were not anticipating
ernment; operations and controls nues. The growth seems likely to
a
rise in non-agricultural prices demands will force some restric¬
to
more
and more farm enter¬ continue, for General is currently
which would worsen their net in¬ tion on its use? It is not sufficient
prises.
engaged
in
the
acquisition
of
come position to the degree this to talk of "private enterprise." It
The fervent hope of all of us Peninsular Telephone of Florida,
has occurred.
One does not have is a private obligation to maintain
years
as
tinue
to be among
farmers very long to
feelings on this
such enterprise serving the public
score.
good.
This must be manifested in
deeds
their
discover
rather than
in words.
certainly
must be that we will
what
we
know
about
avoiding depressions with courage
employ
and
No
of farm viewpoints
consensus
price and wage increases else¬
on
where is available.
However, it is
assumption
that
many
safe
a
farmers
want
situation
ally.
favorable
a
economy
gener¬
the
in
with
changes
other
of
which arise from
of
for
have grounds
respect to
Farmers
reservations
come
income
in¬
groups
redistribution
a
ihcorne, particularly when the
is
result
to
farmers'
into
dip
pockets by raising the prices they
must
is
of
they
What
pay.
needed
gain from
production
and
services
in
increase
an
the
goods
which adds to the national income
in real terms.
In
period of farm
a
inflationary
factors
which increase the national dollar
surpluses
rather
income
than
the
real
in¬
tend to add to farmers' costs
come,
rather
than
the
to
prices
they
So it is in the interest of
receive,
farmers that inflation not be per¬
mitted
to
get
Farmers
in
of hand.
out
are
told
that
increases
offset by in¬
creased productivity. But they are
left to wonder why some of these
rates
wage
increases
translated
are
higher
costs
steel,
for
farm
machinery and other farm sup¬
plies, services and family living.
The
farmer
than
more
part
price increases
the amounts which
other
and
wage
in
accept
may
the contention that
are
the farm
not
increases
cost
justify, but still leaves him
won¬
It
to
and
the
govern¬
and
everyone
needs
understand
to
understand
farm
center
concerns
concerns
everyone
The
conclude
we
problem is real. It
farmers
ment.
and
up,
something which
only
his
to
this
why,
power
lines
and
disposal at public ex¬
In doing this it deals with
pense.
much
consequences
with
basic
like it
of
thap
more
Whether
causes.
we
not, the present program
or
price supports, related produc¬
the like is not
tion payments and
the
job needed.
In fact,
to prolong rather than
the situation of unbal¬
production in some lines
doing
it
tends
mechanize
to
or
agriculture.
face
forts
The
this
to
up
and
sooner
we
shift our
ef¬
to
bringing about real im¬
provements, the better it will be
for agriculture and the nation.
An
entirely
This should
in order.
at
approach
new
bringing
with
serious
in
surplus
those
prob¬
with
available
attainable markets.
This the
lems
and
balance
into
present program does not do. Con¬
gress
has not been willing to au¬
the
thorize
controls
sumers
this
and
has been
costs
not
by
con¬
widening during
of
this
that
fact
the
do
paid
Part
period.
from
those
distribution
down
come
results
as
farm
Labor
Powered
While
normal
deavor
it
once
it work.
economic
to
Industry
regarded
This
is
behavior
to
en¬
may
not be blamed
they give emphasis to the fact
for
good health in
of the economy.
farm
restoration
a
which
into
which
its
generalize
to
not
to
vidual
ence
farm.
warns
us
thinking
enable
price
of
syrup
to
us
escape
a
organized power in the hands such an agency can be freed from
management in many influences and pressures engen¬
non-agricultural lines plays a role dered in the political arena.
that
the farm
The
situation.
President
States
in
a
Suggesting
and
message
labor
making
powers
eration
to
the
to
of
function to
return
the
of
United
price-registering
last
winter
market is almost certaih to
appealed to leadership in manage¬
ment
a
use
with
decision¬
due consid¬
consequences
to
economic health and general wel¬
fare. Is.it too much to expect that
the
caustic
quarters
"free."
is
not
that
comment
the
in
market
the
the
evoke
some
is
not
The fact
that the market
perfect,
however,
is
no
price-mak¬
ing with the controls it involves
proof that government
proximately
'
_
General
_
,
has
now
Parent
in
in
acouired
acquirea
J-jary
NEW HAVEN,
Conn.—Harry D.
become affiliated
ap-
1
%
$262
31
67
114
14
8
Corporation
Debentures and Notes
Convertible Pfd. Si>ks. (three)
Garv
the
uie
be
Millions
•—Debs. Notes & Bank Loans—Pfd. Stks. & Minority Int._
of
foreign subsidiaries and controlled
affiliates
amiiaies,
then
follows:
Subsidiaries
„
number
a
will
as
—First Mortgage Bonds
subsidiaries
13
113
13
Through the sub-holding
company, Associated Tel. & Tel.,
it controls Anglo-Canadian Tele-
1
273
Equity
33
$842
stock
100
merger.
p?or^e whichColumbia
has working control
of
British
Telephone
North-West Telephone,
and
directory
The number 0f shares outstand-
jng
13.3
approximates
have
There
been
two
million,
50%
stock
along
com-
dividends, in 1954 and 1955.
General Telephone has enjoyed
panies in Canada; and it also con- remarkable earnings gains under
trols the telephone systems in the tbe
present management.
While
Dominican
Republic
and
the early
postwar
earnings
were
Philippine Islands. In the manu- SOmewhat irregular, ranging befacturing division it has important tween 95c and $1>37> since 1951
subsidiaries
in
Canada,
Italy, ^ey have gained rapidly—from
Belgium and other foreign coun- $1.17
to
$3.14* on, outstanding
with
supply
and
Automatic Electric
is
the largest
equipment manufacturer in the
independent
telephone
industry
the United States and General
shares
for
the
months
12
ended
Feb< 28, 1957. Like American Tel.
& Tel
General has now adopted
practice of reporting its earnGn the basis of average shares
Co.,
and on |bis basis, the latest figure
Electric. Automatic was $3 32. President Power at the
209 Church Street, members of the turer, Leich
Electric, with 7,146 domestic em- annuai stockholders' meeting foreNew York Stock Exchange.
ployees, now carries on its opera- cag£ earnjngs for
1957
in the
has
Sampson
Chas.
with
W.
Scranton
in
controls
also
&
tions
BEVERLY
Gerald
M.
gaging
in
HILLS,
Calif.
is now
Greenclay
securities
a
—
en¬
business
offices at 232 South Beverly
Drive.
,
Planki^ton
Four Wi*h
in
(Special to The Financial Chronicle)
A
tain much
Tho
1QP»7
bers
with
1637
ton,
Walter
South
Plankin-
R.
(Special to The Financial Chronicle)
Chubb
have
and
joined
Mich. —Rodney
Thomas
C.
The
1957.
estimate
W.
Roberts
the
staff of Paine,
Webber, Jackson & Curtis, Penob¬
scot Building.
Griesemer has
of
been
Moody
Woodruff
added
to
Investment
Building.
He
was
merly with State Bond
&
the
Co.,
for¬
Mort¬
has
also
busy merging the operating
General
A. H. Goss Co. Formed
A.
the
H.
Goss
New
&
in
with
its
states.
29
increased
new
op-
Automatic
further inlikely assuming
some
seem
continued favorable business
con-
djti0ns.
The
has
stock
recently
been
4^/4
sening around
and pays $1.80
yield about 4.2%. This year's
range approximates 40-45 and last
to
year>s 38-46.
Gary Syssubsidiaries in
own
With Davis, Skaggs
(Special to The Financial Chronicle)
SAN FRANCISCO,
The
principal
*}• fj1u*w^"
JV,
®taff
Pavls> Skaggs & Co., Ill
c.
t
Paciflc Coast Stock Exchange,
E. F. Hutton Adds
(Special to The Financial Chronicle)
SANTA BARBARA,
Julius
M.
Alberts
E. F. Hutton
State Street,
&
is
Calif. —
with
now
Company,
934
Joins First Sierra
cities
served include Long Beach, Santa
Calif.—Dean
R. Burwell has been added to the
economies of operation. The Sys¬
tem now has 1,649 central offices
(Special to The Financial
Chronicle)
SAN FRANCISCO, Calif. —
California;
Fort Wayne in Indiana; Erie in Thomas E. O'Brien is now with
Pennsylvania, etc. No very large First Sierra Corp., 417 Montgomery
cities are served, and the present Street,
Co., members of
industrial
medium
Exchange,
May 9 with offices
works
will
will
be
Arthur
acquire
a
H.
Goss,
membership
in the New York Stock
Exchange,
general partner, and Ann G. Griffen, limited partner.
of
smaller
and
of
cities
in the company's favor.
proposed
Peninsular
the
favor
in
trend
sized
General's
Broadway, New York City.
Partners
who
Telephone
number of states, with resulting
Stock
York
will be formed
65
a
plant,
would
crease
and
the
at
Monica and Downey in
Co.
gage
was
a greater extent as operations are
expanded) net economies this year
seem rather unlikely.
tern
Mo.—Henry A.
economies
erations
Electric
new
subsidiaries of the old
(Special to The Financial Chronicle)
staff
the third quarter of
kmilHintf will Pfinbuilding will con
equipment, and an
prepared some time
tbe
new
by an engineering firm that
operating savings of $1.6 million a
year might be obtainable. However, since moving expenses may
ohcnrh ahmit
absorb about $2 million and cconmillion and economies will only be obtainable for
a few months of this year (and to
been
Moody Inv. Adds
SPRINGFIELD,
in
neighborhood of $3.40-$3.50 on
shares. Next year, with
average
npw
ago
Broadway.
Paine, Webber Adds
DETROIT,
in
1,157,000 square feet of floor
for manufacturing and 363,000 square feet for offices and a
research laboratory, and will provide
an
increase
in
productive
completed
Hays,
filiated
buildings
more
space
C.
Colo.— James
or
new
have
Mary Leslie, Earl J. Tim¬
and Roy R. Vogt are now af¬
DENVER,
at
16
one-story hmlding is being built on the outskirts
of Chicago to take over all operations. The new building will
Chicago.
jngs
smaller manufac-
a
capacity of about 50%,
Construction is expected to be
of labor and
in
capitalization
last
which
subsidiaries
sales aggregating $188
million, compared with $237 million
revenue
for
the
telephone
had
year
.
much
expect that
other
and
tries.
(Special to The Financial Chronicle)
price
necessarily must
directives rather
the indi¬
Moreover, experi¬
not to
parts
delude
Rights will expire June 10th.
Further details regarding conversion, etc., will appear in the
prospectus. Pro forma system
partly in its
right but largely due to the
acquisition of the Gary System,
now has important manufacturing
own
With Chas. Scranton
to
be
them to
adapt
in
not
us
(Special to The Financial Chronicle)
in
is
Let
that the
supports
the sur¬
gery of adjustment where needed.
There is no painless or costless
cure for the farm "problem.
position to make such de¬
than
is a governmental
agency
than
He
farmer.
the
parts
us
health
of
not.
are
ourselves
As
products.
all
maintain
strength in the parts which are
now strong and
let us work for
Let
ready
which
in
activities
cisions
as
tute
supports of the government rather
than the market attempt to arrive
at the values of certain important
better
get "all the traffic will
bear," farmers
if
and
share
of finding
an¬
making the necessary
adjustments. There is no substi¬
and
are
imposed.
from
to
be
may
his
do
to
Gerald Gr^enclav Opens
adjustment
prices fall. Part is due to increases
brings capacity to produce into
in
the
services
performed. But more satisfactory
balance with
farmers may well have an uneasy
the
markets
available,
decision
feeling that part of it lies in wage with respect to what and how
rates rising faster than productiv¬
much to produce can be returned
ity in distribution.
understanding of the
problem and then for each
there
the controls needed
accept
make
agri¬
pend¬
is
nor
indication that farmers
to
storm
seek
to
is
directed
be
production
de¬
challenge before Americans
will
With specific pro¬
adopt innovations at
the same
grams to bring about needed ad¬
speed.
Farmers
know
that
the
justment in resource use, it should
spread between the prices they be
possible to withdraw gradually
receive
is
to help
the
General Telephone,
However,
severe
recovery.
The
anced
if
able
ing
weather
soothing
of
and
standby program
culture
remedy
over
are
a
swers
to
disastrous
a
return.
pression strike, it goes without
saying that we need to have ready
sition
and
that
so
will
should fail
we
rely on
price supports and surplus acqui¬
price
on
management has
deplored because the sort of con¬
price, it did not trols
likely to be associated with
raise prices earlier.
Increases in the
present
type
of
program
productivity are not universal or would be harmful rather than
uniform. They probably are largest
helpful over the longer run. There
in lines where mechanization or
is room for grave doubt whether
other
capital additions step up farmers ever could disentangle
output per unit of work. Not all themselves
from
such
controls
dering
if
part in it.
continues
program
it
never
farm
lines
into
summing
a
that
is
are
turn
in
As
wisdom
one
Summing-Up
prospectus requirements, General
hopes to begin making the exchange offer effective in the latter
part of June.
; General
Telephone expects to
offer shortly, subject to SEC approval, some $44.4 million Convertible
Debentures
due
1977.
Common stockholders of record
which will increase the number of May 16th will be given subscriptelephones
by
nearly
300,000, tion rights (one right for each
bringing the system total to over share), with 30 rights required to
3,100,000.
*
subscribe for each $100 debenture.
usual
is
sense
not
and
a
acquisition
merger in
does
not
re-
quire regulatory approval, except
for SEC
approval of the registra-
tion
the
of
new
common
stock
Walston Co. Adds
(Special to The Financial
SAN
Chronicle)
FRANCISCO, Calif.
—
Thomas F. Slack has become con-
nected with Walston & C .,
265 Montgomery Street. He was
formerly with Dean Witter & L .
32
The Commercial and Financial Chronicle
(2304)
Continued
level to further their education.
from page 13
Because
of
incidence
high
disability illness and death in
executive
their
Banking's Personnel Programs
the
of
banks
groups,
many
giving more thought to
preventive
or
executive health
Now and in the Years Ahead
are
which provide periodic
examinations
for
key
programs
medical
personnel.
Fifteen years ago, very
few banks
had any one individual or com¬
mittee of individuals specifically
responsible for personnel activi¬
ties, even in cases where the banks
had
than
more
such
changes
have
within recent years,
Establishing separate per¬
place
as:
perhaps, there is need for
educational activity in this
Here,
some
to
area
figures
irrational
statements,
propa¬
or
The
most
far-
and
significant
sion; and assigning responsibility
to a higher echelon with an of¬
reaching progress has been in the
broad area of organization and
ficial
management of
in charge.
Maintaining
them
and
become
to
records
personnel
individuals
of
not
allowing
payroll
numbers is widely recognized. As
a continuing employee inventory,
become
records
such
the hands
in
tools
merely
and others
important
responsible for admin¬
Remuneration and Job
importance of establishing
muneration and job definitions or
classification is generally accepted.
A well-conceived method of com¬
pensating employees can by itself
contribute to good employee re¬
lations but bring their own prob¬
Success in one
lems.
organization
does not necessarily insure success
in another.
"Money may not be
everything but it has a good lead
on
whatever is in second place."
Positions are now graded by a
complete job evaluation program
in, 72
banks; 65 indicate minimum
salaries
maximum
and
are
set.
fairly ex¬
tensively in savings banks. Bo¬
nuses are paid by 84 banks out of
111
responding; 64 of these at
Christmas
and
year.
20
at
other
times
The average sal¬
employment
more
savings
important
advantages
of
bank employment.
One
the
of
the
among
were
prevailing financial
the
provision for
salary continuation during illness
more
incentives
is
indicated
by the fact that about
96% reported that they continue
income during extended absences
as
due
sickness.
to
Sufficient actual data have been
function.
of the larger savings
personnel department
exists as a separate division or as
a definite part of the management
In
many
is
It
function.
that
significant
while about 80 banks indicate that
person
responsibility
personnel
ad¬
assigned to
or depart¬
banks
(including
for
ministration is clearly
a
management
only
ment,
46
the
of
some
set
have
banks)
larger
written statement
a
employee handbook of person¬
or
nel
policies
practices.
and
Em¬
ployee handbooks which are re¬
vised at frequent intervals (pref¬
erably in loose-leaf form) can be
helpful
in keeping the banks'
aims, policies, organization, and
specific rules, before all the em¬
usually
filled
Chambers
cate
other
and
Commerce
of
to
local
indi¬
that
salary levels and fringe
benefits in
savings banks keep
pace with the spiralling cost of
living.
In almost all cases the
various forms of clerical compen¬
sation
in
savings banks compare
favorably—or are higher than in
comparable
positions
in
other
fields.
Up-to-date compensation sched¬
ules
absolutely necessary. The
type of applicant will be
attracted, and capable employees
retained only when there is an
adequate
salary schedule.
This
means
oped
one
on
that
has
been
devel¬
the basis of relative job
within
from
the
savings
increased
The
industry.
banks
salaries
for similar jobs
and
similar types of employment.
No
schedule
adequate
provision has been
riodic
and
views.
An
frequent
salary
opportunity must
re¬
be
available for the better employees
to
earn
more
money
for superior
effort.
-anti
fooled
eral
tut;
—SOOU-_
by "cheapness."
The gen¬
public feels that banking,
oe
as
plan, must
critical
a
immediate
eye
these
problem
benefits,
volume
of
sav¬
have greatly expanded proopportunities. Here
grams
take-home pay.
fect
training
As
of
career
hearing
we are
em¬
so
fre¬
quently these days, management
continuity is among, the more per¬
sistent problems and difficulties
confronting many savings banks,
both large and small.
Methods
for
considering
and
employee problems
and complaints represent another
acting
upon
important advance in present-day
personnel
practice.
Ninety-two
banks
indicate
they established
prompt and orderly methods for
dealing with such matters.
Only
of the
limited number (32 out
a
banks
responding) report¬
a formal management
development program. Participat¬
ing banks mentioned that they
having
the
executive
the
order
Included
the
the
effect
listed:
in
the
reports
retirement
plan
and
fringe benefit programs.
becoming increasingly ap¬
Comparison of the number of
banks providing group life insur¬
protection for employees fol¬
banks
such plans in contrast to 89
ance
lows: In 1941, there were 65
with
banks
reporting group life insur¬
plans in the 1955 survey.
ance
In
85
of
the
responding
banks
is paid for by
cost
based
investments.
on
study, there
tions
that
it
than
of
that
have
is
employee
welfare
factors
ditions
indicated
savings
unquestionably
ing recent
pared
by
banks
improved
economic
and
secu¬
from
$7,335 in
1953
$8,289
to
in
1955.
Many of the newly-enacted life
surance
plans provide for some
in amounts of life in¬
coverage
retired
on
em¬
usually by a
fixed annual percentage of reduc¬
This
until
is
50%
the
of
graduate
they
savings
banks
pro¬
now
(Graduate
Banking and
courses)
of
with
other
the
about
71
encouraging employees
New
and
it
advisable
rent
in
more
had
were
program.
than
plans
only
This number
five-times
in
19
1941
banks
cated that
they had
tirement plan.
as
was
many
when
as
there
which indi¬
a
funded re¬
ing savings bank retirement plans.
paying
of
every
Several
indicated
reasons
are:
revising the formula for credit¬
ing past service benefits; provid¬
ing a vested-right feature; aug¬
menting inadequate pensions
this
•
survey
in
the
thejnselves;
answers
comments
or
after
presented
individual
the
subject headings.
results we may de¬
the savings
From these
the
conclusion
bank
industry in New York State
high
among
its national
contemporaries in employee re¬
ranks
lations progressiveness.
and
to
re-evaluate
training,
cur¬
area
of
understudy
positions.
Wide
in
sis
notable
most
the
being
tivities
The
Needed
times
for
for ade¬
need
quate and up-to-date FACTS and
and
each
will
more
challenge and
an
become
pressing; yet a
opportunity for
bank.
is
It
still
be
that
true
meticulous
the
personnel
most
programs
little
of
help unless they
are
based
on
a
total personnel
policy that is humane, adaptable,
and competitive in today's busi¬
ness
world, and marked by the
same
qualities of leadership re¬
quired in all aspects of modern
can
financial
practices
given
in
changes
to
most
have
personnel
banks
More and
person¬
in the increased empha¬
occurred
the
not
and
manage¬
ment.
variations
policies and practices among
savings banks were recorded.
The
Figures Are
are
more
training, on-the-job training, and
training for advancement to higher
as
ac¬
well
more
emphasis should
be placed on this phase of opera¬
ting functions within our own in¬
There
dustry.
in
evidence
is
that
real progress has been made
some
this
direction.
The loyalty
as
in
developments
with
respect
plans and employees
well-being.
Whatever variations
be
exist would appear to result from
of the staff cannot
ment,
to
benefit
differences
in
environment, such
large banks, or banks
small and
as
located
and
cities
in
small
or
villages.
towns
<
Looking Ahead
Careful examination of
in
activities
be
can
person¬
of assistance
defining the nature of the
per¬
sonnel problems.
In the immediate future,
these
of
the
basic
that
reason
leave
the
tirement
problems,
each
continue
(Of
pression.)
persons
by
force
for
will
re¬
a
de¬
of
the
shortage
help is the fac¬
technological change. New
ways and means of doing things
are coming into banking and other
industries. New systems require
highly trained and well-educated
people in large numbers than the
schools can supply.
Machines and
and investment
people.
operations depend
the
the
personnel
machines
or
apply
the
systems are made to feel that
they are participating in a com¬
endeavor
mon
the
rewards
are
no
of
and
will
modern
or
techniques
a
ganizations
for
of
that
ways
way
sound
us
rather
invest¬
than for
difference!
must
Our
financially
otherwise that they
conditions.
If
we
revise
"
|
continually examine and
our
personnel policies and
practices,
asking ourselves why
how we do things; if we are
on the alert for the better
applying ourselves to the
always
a realistic, down-tothen I feel confi¬
during the years ahead
problem in
manner;
dent that
can
we
hold
our
against
own
problems of clerical shortages and
most
overcome
even
of
|
them
introduction of new
ideas, new thinking, and construc¬
tive leadership.
through
the
Fishman With Waldron
(Special to Tiie Financial Chronicle)
SAN FRANCISCO, Calif.—Sher¬
man
S. Fishman has become asso¬
ciated
Russ
with
Waldron
Building.
&
Co., Inc.,
Mr. Fishman was
formerly in the investment busi¬
in
ness
Boston,
where
he
was
receive
methods,
will
connected with Keller & Co.
Peters, Writer Adds
be
Management, however, should
cautioned against procrastina¬
tion in attacking today's person¬
nel
problems in the hope that
be
(Special to .The Financial Chronicle)
DENVER, Colo.
—
H
a r o
1 d C.
Haag has been added to the staff
of
Peters, Writer &
Christensen,
Inc.,
724 Seventeenth Street.
will turn up and resolve all their
was
former ly
difficulties.
States
some
or
cannot adapt
themselves readily to competitive
great value.
tomorrow
or¬
become
never
muscle-bound
willing to cooperate, the
machines
of
What
us.
methods must be
Unless
with
work
to
earth
cause
need
are
same
administrative, and public
policies, there is cur¬
rently no more important func¬
tion in our savings banks than
that of building and maintaining
a
strong personnel relationship;
in other words getting our staffs
way,
barring
of
run
is
In the
relations
and
several
white-collar
tor
there
least
at
course,
Another
of
earning it.
during the
shortage will
the
for
years.
and
year
ahead,
years
more
working
bought, but there
so
bank¬
ing will continue to operate in a
clerical
help shortage.
Because
and
Banks reported some
the
from
to
training needs in the
orientation
development of formal plans
of
value
on
organiza¬
the
of
level
School
the
many
20%
savings banks reported hav¬
ing such coverage up to March
of 1955.
Many banks are consid¬
ering such plans for their em¬
ployees.
The
greatest activity in em¬
ployee benefit plans
has been
with respect to pensions or re¬
tirement annuity plans. Progress
will
higher cali¬
self-evident
order
in
effective
organizations.
Savings
banking,
unlike
most
fields, places considerable
emphasis on education obtained
by employees after employment.
Today's
critical
shortage
of
qualified clerical personnel makes
York
additional
features are currently being con¬
sidered in development of exist¬
tuition costs. The
indicated
that
savings
recognized
About
plan
needs
who
management
banks
being adopted by
tions.
insurance
expense
derived
either
were
tabulated
INFORMATION
ment
necessary
survey
medical
be
to
to
on
post¬
college
their
impact of mech¬
bre people, rather than lessen it.
Management can attempt to meet
this need in various ways, with
one overriding realization—banks
and
ported they had a definite retire¬
the
to
the
for
employees. Of
all the benefits provided, this is
probably the one most appreciated
by the employees.
A comparatively recent devel¬
opment in the field of health in¬
surance is the new type of major
care
training
methods
or
established
in
of cost-free hos¬
form
we
con¬
today's
of
automation
and
increase the need for
other
nel
some
constantly be alert
used by people. In the final anal¬
ysis, effectiveness of our banking
survey,
banks
had
programs
areas
1955
vide
light
It is stated the
complacency.
maintain
is
reached.
Most
must
amount
retirement
before
Education
and
training
new
the
Associa¬
personnel
the
anization
Facts
years.
Training
Banks
nel
National
our
5.
>
tion, the average maximum cov¬
erage
per
employee
increased
other
problems.
These
of
personnel practices pre¬
today's
in
are
Meanwhile,
rity status of their employees dur¬
service.
According to the 1955 survey of
selected
cannot over¬
we
work.
at
examine
rive
report
most
personal
more
be.
to
survey
clearly
through the
definite indica¬
were
used
The
All
management
conscious
combination
some
on
salary and length of
promising,
parent
that fringe benefits
(or
supplementary personnel expense
items) amount to a substantial will always depend on people.
portion of the present cost of Nineteen fifty-seven problems and
bank operations.
practices are of primary interest
Savings bank managements are and concern to all of us.
endeavoring
to
improve
their
Many of the other conclusions
as¬
planned
from
answering
that
training
banks
of
continued throughout the 15-year
period under study. In 1955, more
than 101 of the savings banks re¬
following methods of
training or development
equivalent study, conference dis¬
cussions, or trial by fire.
the
situation requiring
a
looks
benefits
is
new
cal
of
It
to
which af¬
pitalization and/or surgical-medi¬
and
were
create
other
high income
items
other
and
again, this requires that increased
attention be given to the selec¬
used
Government
revision
and; the in¬
creased cost of living,
taxes
ployees.
motional
ed
could
the
days is to maintain some relation¬
between staff salaries, plus
tion
training
"Cheap
food,
cheap
clothes,
cheap labor, and cheap friends—
are ever the dearest!"
The public
with
reviewed
The
provided
unless
made for pe¬
be
administration
number of formal retirement pro¬
in
is
requires careful plan¬
ning to fit immediate needs and
all
present ones, including the
ings bank activity and the large
signments, job rotation, college
competitive
area
of benefits
reduction
vailing
paid in the
The entire program
return.
no
insurance
values and in relation to the pre¬
or
or
the
motion from within is
are
right
bring about
added cost to the bank with little
stated policy of pro¬
widespread
ranks, the
in
Security and the tax treatment of
benefit
plans
requires
careful
scrutiny.
New legislation or in¬
benefit. plans may services and efficiency of opera¬
a liability, tion and. to obtain greater return
these
the bank. The
basis for coverage, however, is
shifting from a "flat" amount re¬
gardless of salary or length of
service to coverage schedules
ployees.
York
given,
prove to\ be merely
create problems, and
partments.
Only about one-third of the
banks reported that employees are
made by the Com¬
Industry Association
New
many years; Patterns of
employee
benefits are growing
more and more complex.
If careful consideration is not
the entire life insurance premium
ary
of
pro¬
full-fledged personnel de¬
up
tion
and
welfare
and
have been widespread in
savings
bank
industry for
grams
employee
banks, the
through periodic sal¬
surveys
health
ployee
Social
on
application of electric
look the fact that there
pensions.
action
Thursday, May 16, 1957
.
machine accounting or electronics
in
the
savings banks industry
policy formation as a major ship
accumulated
merce
the
for future improvement.
^
without bonus in some banks
higher than in others where a
bonus is paid.
ployees.
It
has
been
traditionally ac¬
As reflected by the fact that 69
cepted that security and stability banks reported that vacancies are
ary
is
of
beclouds
salary
provided with
Bonus plans are used
during the
security
upon
widows'
or
Government
important fact that voluntary em¬
petus and to a large extent guided
the developments in this area.
sonnel
equitable system of salary re¬
an
senior management of the
importance of personnel adminis¬
tration, coupled with an increas¬
ing willingness to "do something
about it"
has supplied
the im¬
tion by
personnel administration and per¬
Classification
The
personnel actlvl?
realistic apprecia¬
more
emphasis
Today, all progressive and ef¬
ficiently managed banks recognize
of supervisors
istrative activities.
2.
The
ties.
current
Benefits
many,
Administration
3. Personnel
departments; making per¬
sonnel an important bank divi¬
The
the
ganda.
sonnel
ments
.
While the
con¬
non-
contributory; and most recently—
providing for automatic retire-*
creased
4. Employee Welfare and
for economic
basis
the
disprove
contentions, based on facts
and not guesswork,
these
and
100 employees.
distinct
Several
taken
industry, does not pay too well.
an
through supplementation;
verting from contributory to
.
mechnical marvel
Securities
with
Corp.
He
Mountain
Volume
Number 5638
185
Continued
from
*
•'m-
The Commercial and financial Chronicle
(2305)
ditional pattern, of
relatively high
6
page
*r~
-
.
.
.
interest rates which will be with
us for many years due to the
need
.if
Where Do We Go From Here
In Housing
for
Summary.
•
That is
ex¬
"
,,
and
increased
modernization
costs
and
My
wages.
tions
To
summarize, my guess is that, tively high interest rates for a
barring war or a national catas¬ long time to come.
;;
trophe, there will be some easing
question of decreasing starts
And my guess for the outlook
is that today most new
houses in interest rates during the last for
housing is that, even though
half
of
this
which could we
year,
provide three and four bedrooms,
may have some easing in in¬
whereas a few years ago most of cause some easing
in mortgage terest rates in
the mortgage mar¬
the new houses had only two bed¬ rates. But I do not see any signs
ket, we can look forward to a
of a return to the easy rates we
rooms.
In
other words,
people
comparatively lower number of
are
buying bigger houses.
The have had in recent years. I be¬
housing starts every year for the
lieve
there
has
actually
been
larger houses, plus increased costs,
next several
years until the early
result in larger mortgages, so that established a new pattern, or per¬
'
the amount of money going into haps I should say the old tra¬ 1960s.
Another
interesting
factor
on
this
.
the
mortgage market could
well be close to the
last
very
amount
same
Continued
year,
even
result in
of
reduction of the
a
interest
mortgages.
that
rates
wouldn't
I
much.
too
termining
count
believe
I
factor
the
the
in
such
on
de¬
interest
other investment outlets.
on
that there will be
some eas¬
a
geous
relatively poor bargaining posi¬
They are exposed to innum¬
ioned.
How
is right, there could be
year
easing
But the
I
some
mortgages.
on
for this
reason
easing,
as
their
objective
fluctuations
placing
at
which
supports,
levels
as
reducing violent
prices
and
the
in
floors
of
have
under
which will
markets
discour¬
not
it, would not be due to the
see
reduced
much,
age
consumption or induce unmortgages so needed production.
due to the maintenance
Market building, with emphasis
competitive position in on new crops, new markets, and
of
number
as
their
of
the rate
on
.;-Vy;
Price
relation to other forms of invest¬
new
ments.
uses.
Broad
do
feel
not
that
the
recent
porary program
acreage
any significant effect on the hous¬
ing situation and on the demand
for mortgages. Please don't mis¬
understand me—I
am
a
great be¬
liever in the FHA pattern of small
down payments and 20- to 25-year
monthly self-liquidating loans. In
fact, I believe the 100% VA loan,
at the time it was permitted, had
considerable merit.
VA's
homes,
in
than
sounder
then
old
fashioned
second
a
quite
was
the
% first mortgage and
a
mortgage which
burden on the home
a
prior to the creation of the
owner
FHA.
My
for making the state¬
reason
tion
in
the
reserve
program
disposal
Surplus
needed
are
the
failure
to
from
away
and
soil
the
only because of
promptly
move
war-time
emergency
amount
of
the
them, the highest percentage
•
operated
families
erator
the
as
op¬
whole
a
im¬
proved their, levels of living sig¬
nificantly
latest
between
Gains
and
1950
agricultural
1954.
by
all geo¬
in
occurred
the
year,
census
graphic divisions and states. This
is evidence that farm people are
participating,
though
not
those
who
record.
Two
of
out
three
farms
have
mortgaged debt.
no
The
tion,
farms
unchanged
has
produc¬
our
from
comes
familypractically
the past
15
been
during
years.
,
Daily average production qf crude oil and condensate dropped
100,150 barrels to 7,422,425 barrels during the week ended May 11,
survey indicated on Tuesday of this
week.'
•'/:vyy■ 'r:>■■:>•!
:)',' J y
the "Oil and Gas Journal's"
It
is
true that the
family farm
has increased in size
lars invested.
in
and
It had to
But
dol¬
change in
most of
on
our
farms, it is still the farm
family which provides the capi¬
tal, supplies the labor and makes
the
decisions.
That
is
the
intend to keep it.
from now, the
we
Years
Will
write
the
in
That this
in
the
of
loss
abundance
of
freedom?
generation had
its
little
so
institutions
free
ply
factor
for
today.
housing
and
demand
The
plus the
competitively
mortgages
de¬
sup¬
for long-term
relationship of
the
and
money
with
other forms of investments in this
long-term
market
money
are
the
determining factors.
As
for
the
tion for the
of
the
Fund
of up to
chase
of
VA
mortgages
now
to
sell
holds.
Trust
would depress the
Market
and
—
the. problem
has
the
of
the
will
We
may
Bonds
the
it
base, it
complicate
Treasury
in
1956
in
1957.
com¬
means,
further
below
are
that
confident
surplus farm
of
not
are
the
am
increase
stocks
that
surrended without fir¬
were
shot?
a
Or will he write that these free
institutions
were put
to the test,
they survived the time of
trial, somewhat modified no doubt,
that
but intact and
to
serve
as
strengthened, ready
inspiration to lib¬
people
everywhere?
an
erty-loving
This
is
is what he
what
equal
he
to
confronts
We
the
This
must write.
will
write, if
opportunity
we
are
which
us.
out
of
but
a
the
we
ago.
year
woods
by
making
are
Keeping
among
should
count
it
a
privilege
witnesses
,
terial
Freedom! Responsibility! Enter¬
The
family
farm!
American institutions
stood
war,
natural
trial
They
whole
of
can
upon
our
and
These
level
This
of
also withstand the trials
on
by
a
revolution, if only
technological
we
are
coura¬
21%
production at
996,801,125
ago.
'
:
industry last week Chrysler Corp. again
output to push the industry's United States
preceding week, "Ward's Automotive Reports'*
car
:y*v,"-
Friday last.
V;
':■<'■<,
:
Chrysler Corp. program of pearly 30,000 car completions
since
the
week
reached 31,961 units and compared
ended
Feb.
23
said
"
when output
with a strike-torn 24,671 two
y;\y.' :
:
.
"Ward's"
y
the
upturn boosted the industry's total to
126,421 passenger cars the past week, which is 5.4% above the
119,999 in the prior week and 19.8% over like 1956.
In the same
week last year 105,552 cars were built;
y
Thus
a
14.4% increase in United
1956. Meanwhile, so far in 1957
car output is running 2% ahead of last year, or 2,536,907 to 2,437,248 despite strike losses which have pared Chrysler Corp. volume
by some 14,000 units in April and early May. ;
-
alive
kept
plans for
are
:
May car assembly over
operations, the. statistical publication
and Chrysler-Imperial output in Detroit was
scheduled for Saturday work last week and Chevrolet and Mer- !
cury-Lincoln United States-wide volume returned to five days
following curtailed operations the week before. De Soto in Detroit,
Oldsmobile in Lansing ahd Buick in Flint worked four days last
Reflecting
smoother
Plymouth
week,
-iy V;l;y"
sales, "Ward's" said dealers
y
In
commenting
on new car
across
the United States delivered at retail 1,049,000 units in MarchApril combined. The combined two-month total was 3.8% below
the 1,091,000 in like 1956.
.:
y ,y Ys
yy'Y,'YY
Steel Production Set at 87.9% of Ingot
Capacity
y;y: :'y.
This Week yy-.
vyvv'
'
Steel
production continued its decline last week, but an up¬
ward movement in scrap prices suggests a leveling out may be
near, "Steel" magazine reported on Monday last.
It said many
people in the industry no>v are expecting mill operations will turn
upward in the third quarter.
y
/
Mills worked at 87% of capacity in the week ended May 12, ;
down
1.5 points from the
preceding week.
Output amounted to ;
2,226,000 net tons of steel, the smallest outturn since August, 1955. i
The metalworking publication pointed out that scrap prices ;
are considered a barometer for steel production.
Last December, ,
prices moved downward, three months ahead of the decline
operations.
Scrap turned upward in the week ended May 1 and has continued to climb since.
"Steel's" scrap price composite at $44.33
scrap
in mill
a
gross
ton is up 66 cents from the
This
preceding week. It also looks
steelmakers' sales.
production rates are not geographically uniform,
duction will probably help
Current steel
capacity.
Demand for steel is mixed, too, the weekly
said.
'■■■■:-'.y.
In
some
^
magazine i
,v i
,
consuming industries, such as appliances and auto¬
prob¬
mobiles, buyers are apathetic, but shipyards continue to expand
their demand for heavy plates. Because of the heavy and accumu¬
lating bookings for this product, some yards have contracted for
conversion tonnage to meet their most pressing needs, this trade
challenge than it is
freedom.
Colo.
DENVER,
Plettner
is
Frederic
A.
now
—
817
Demand for plates is helping continuous hot sheet
They have open space largely because of the reduced need
for the raw material that ultimately becomes cold-ronea saeecs.
Some hot sheet mills are filling in schedules with rollings of strip
Steel prices as
The
H.
with
Seven¬
American
With Bache Staff
CHICAGO, 111.—Carolus Smejda
now
connected with Bache &
Co., 135 South La Salle Street. He
was previously with A. M. Kidder
,
*
,
,
whole remain stable.
a
Iron
and
announced that the
98.1% of the steelmak-
Steel Institute
,
for the entire industry will be an average of 87.9%
of capacity for the week beginning May 13, 1957, equivalent to
ing capacity
2,251,000 tons of ingot and steel for castings, as
compared with
86.7% of capacity, and 2,220,000 tons (revised) a week ago.
The industry's ingot production rate for the weeks in 1957
is based on annual capacity of 133,459,150 tons as of Jan. 1, 1957.
For the like week a month ago the rate was 90.4% and pro-
(Special to The Financial Chronicle)
Co.
turning idle time of some rolling nulls to good
Producers are
advantage.
mills.
operating rate of steel companies, having
Gerald
affiliated
Adams,
weekly pointed out.
plate.
teenth Street.
&
;
ranging from a low of 56% in New England to 99% in the Far
West.
Some plants in the Far West are running at 104%
of i
a
a
(Special to The Financial Chronicle)
is
•
j
which started the first of the year ;
that any upturn in metalworking pro- 1
means
more
patience, and courage to see the
opportunities which lie beyond
problems. May we willingly
accept the responsibility which
will forever be the
counterpart
of
j
T
like the inventory adjustment
ma¬
our
other
them by all the
turbulent history.
year
automotive
a
its best volume
was
1957
a
is
inflation,
every
on
The
estimated
949,840,232
May God grant us wisdom, faith,
of
well-being.
have with¬
depression,
disaster
laid
brought
the
lem.
ob¬
jectives is to preserve and
strengthen our free institutions.
prise!
lift
Joins F. A. Adams
our
stated
to
Farms Free
three
the
is about over.
progress.
Number
years
now
providing cash to handle
savings bond problem.
I
1947.
I be¬
Treasury Bond
further
since
Our
operators
from
4%
up
year,
it
farm
in¬
Realized
1955.
in
preceding
the first peacetime increase
was
definite
Fund
Treasury
If this is
of
come
of
reached
low
journal
.
they
pur¬
raise that much cash to make such
the
December
any
direct
the
above
$1 billion
lieve that is not only inflationary,
but also
unsound.
In
order
to
purchases,
7%
Insurance
Life
the
for
am
modities
proposed authoriza¬
use
Veteran's
Trust
have
I
the
on
mand
much
trade
compared to
total 5.4% over the
of
the
What will he write?
to
have
^
were
590,000 barrels; Kansas,
historian
dominant
effect
will
to
scheduled
history'
winning
resulted
faith
the
way
belong to the generation which
this great drama. We
can
be more than witnesses; we
can
accept the opportunity so to
guide these profound changes as
payment
Major contributions to the loss
said,
happy to report that the
housing situation
farm picture is showing distinct
and mortgage markets is that, in
improvement.
Farm
prices
are
my
opinion, the amount of the
now
4% above a year ago and
cash down payment is not the
down
,
States
percentage of
which
sized
ing
programs.
to¬
are
of
That
resources.
farms
our
day
serve
to the
degree that we would like, in the
cash
fruits of advancing technology.
ment that I do not feel the reduc¬
•
nages
weeks ago.
own
present-day.
bank
family farm in
Three-fourths of
bank, another costly, tem¬
porary measure to pull down ac¬
cumulated surpluses and to con¬
of
my
method of
The FHA and
the
these questions.
to
of soil
Despite the difficulties of
financing
of
postwar readjustment, farm
opinion, is much
method
fares
order to survive.
surplus disposal, a tem¬
designed to move
move for reduction in the amount
existing stocks into use whereof
cash
required in connection ever they can be helpful.
with FHA mortgages will have
The
I
y.;xyy:".y
this time of change? How well is
it meeting the
challenge? There
is encouragement in the answers
These include the continu¬
added:
enough to put them to the
test.1
tion.
money mar¬
ket during the second half of this
*
,1
Further, the log-jam in oil country goods may be breaking ,1
Some purchasing agents say they are being offered extra tonof oil country seamless. They add that supply has loosed
markedly and that inventories are comfortable. The PA's also*
say the mills apparently are trying to advance fourth quarter ton¬
nage into the third quarter, concludes "The Iron Age."
up.
In
ment.
They feel the pinch of a
price-cost squeeze.
They are in
previously stated, the return ing services of research, education,
credit, conservation and associated
on mortgages must be competitive
in the money market.
So, if my programs. To these have been
ing in the long-term
.
gloomy side, most steel users are holding firm to the
The customers are so insistent on
quality that mills
making concessions that amount to price cuts. In short, some
users are paying commercial
quality price for special quality steel.
This
As
guess
.
are
barrels
on
turns
cus-
y The largest increases for the week were Wyoming's 8,800 barrels to 285,750 barrels and North Dakota's 51,000 barrels to 31,700.
mortgages would not be erable economic hazards.
the number of mortgages so much
To meet these problems, a va¬
as
their relationship to the re¬ riety of programs has been fash¬
rate
March and
Oklahoma, down 37,200
off 34,950 to 337,800; Texas, •'/
24,575 to 3,160,080, and Louisiana, 14,950 to 926,200 barrels.
and
for
over
driver's seat.
therefore, the resulting scarcity of
mortgages
should
bring
about
easier
Miay so far are up 50%
asking for rush delivery.
are
On the
num¬
available,
mortgages
Orders for
tomers
barrels
people might feel that, since the
number of starts is down, it will
ber
month.
Y
from page 10
though the
number of mortgages is less. Some
as
5
page
of
is that there will be fluctua¬
within this pattern of rela¬
guess
another spurt.
takes
pected in the 1960s.
from
sayings to finance the mech¬
anization
plant and machinery to increase
productivity in order to offset
and Mortgages
Continued
33-'
duction 2,313,000
was
tons.
A year ago the actual
placed at 2,345,000 tons or
The
higher
operating
than
rate
capacity
in
is
not
1956.
weekly production
95.3%.
..
.
because capacity is
The percentage figures for 1J56
comparable
Continued
on
page
34
t
,
<
,
■
?■
64
The Commercial and Fiiiancial Chronicle
(2366)
Continued from page
33
trading
The Slate oi Trade and
based
are
.with: 335,751
...
There
Indnsby
week.
in
Electric Output Moved
This
"
week.
the comparable
-V-
1956 week and 1,638,000,000 kwh.
The Prior Period
American
Railroads
the
17,980
! f
car output
totaled 126,421 units and compared
(revised) in the previous week. The past week's pro¬
duction total of cars and trucks amounted to
149,589 units, or a
gain of 5,741 units above that of the preceding week's output,
"Ward's."
and 22,121
Last week's
week
V
a
This compared with 23,849 in the previous
ago.
year
All
toll
remained
in
and
the
to
from
39
54
and
milder
less
last
year
than
numerous
in
the 233
and
prewar
1939
comparable week.
trade
casualties during the week.
while
groups except retailing had fewer
Among manufacturers the toll dropped
service establishments to 17 from 27
brought wholesaling down to 31 from
among
declines
36 and construction to 38 from 42.
failures edged up to 142 from 138.
On the
other hand
retailing
Casualties exceeded last year's level in all functions
except
manufacturing and commercial service. The downturn from 1956
was noticeably
sharp in manufacturing in contrast to a marked
;
rise from
a
sales
boost
Volume in
cept for
floor
and used
the
dealers
sales
slight increase
were
in
total
dollar
volume
retail
in
trade
1%
the
of
in
period ended
year ago
in the trades.
sales
store
Reserve
on
Commodities quoted higher last week
peanuts,
sugar,
wheat,
tion
were
corn,
beef, bellies,
and
hogs. Lower in wholesale
oats, hams, lard, milk, tea, cocoa, peas and
rye,
The
of 31
steers
index
cost
were
eggs.
represepts the sum total of the price per
pound
foodstuffs and meats in general use and
its chief func¬
is to show the general trend of
food prices at the wholesale
raw
level.
!
Wholesale
Commodity Price Index Advanced Slightly
!
At Week's End
Although the Dun & Bradstreet daily wholesale
commodity
price index fell to another new low for the
year on May 1, at
285.07 it recovered somewhat at the
end of the week. On
May 6
the index stood at
285.68, compared with 285.62 in the preceding
week, and 292.95
a year ago.
Some commodities quoted
steel scrap, tin and most
grains.
butter
Prices
on
were sugar,
rubber,
livestock, cotton and
close to those of the prior week.
weather conditions in the winter
wheat belt re¬
declines in wheat futures
prices on the Chicago Board
of Trade.
Wheat trading declined from that
of the preceding
week, but was moderately above last year.
While prices in the cash corn
market
were
Favorable
sulted
in
corn
f«tures
were
close
improved slightly last
to
those
of
the
previous
In
Chicago corn buying climbed sharply.
slipped and trading was sluggish.
country-wide
index
basis
fop the
as
week
above that of the corresponding
,
.
Both
the
past week,
While
domestic
and
though prices
coffee
trading
reflecting the limited
Warehouse
stocks
export
were
was
demand
flour
lagged the
steady.
sluggish, prices
supply situation in
of
for
cocoa
totaled
slightly
from first
bags,
compared
increased
by
bargaining
like
those
advances in
wage
productivity.
gain in profits is
mands, followed
price rise.
taken
of
The
then
occasion for further wage de¬
an
is
pressures
enaed
arising
excess
in
resulting
by still another
not
inflationary
only
harmful
to
those who directly feel the effects
of a depreciating dollar, but the
distortions
omy
produced in the econ¬
will eventually lead to down¬
turn
in economic activity.
Under
creeping inflation, there will come
time
a
when
rising costs in dis¬
torted sectors of the economy can
longer
be
verely
passed
when
consumer,
reduced,
;
to
on
profits
are
when
and
the
se^
pro¬
duction will be cut back seriously,
with
widespread unemployment
:
resulting.
Growth Does Not Need Inflation
period in 1956.
harmless
page
belief
and
that
even
inflation
good
is
the
is inevitable.
This
Steady lobs, Stable Dollars
~
expectation of a slowly rising price level is based on two
assumptions.
Continued
strong
demand
as
repository of people's savings
a
has
on
the
been
part
of the
gov¬
rising for over a year.
ernment, business, and consumers
fact, roughly one-half of the will maintain the ease with which
nomic insecurity that accompanies
rise in the gross national product
the
wage-price
spiral can con¬
setbacks
in
health, old age or (the value of all goods and serv¬ tinue to
operate, and
the im¬
the death of the family's bread¬ ices produced in our economy)
proved ability of the government
winner. It has, therefore, seemed last year was absorbed by price
to avoid a real recession through
particularly appropriate to raise increases.
government
spending,
built - in
some questions about
Therefore, the importance and
people and
stabilizers, and improvements in
their dollars with you because of relevance of people's thoughts on
the banking structure, will pre¬
the
peculiar
responsibility
the inflation, especially if their think¬
vent
any
serious
contraction.
insurance industry bears toward ing has included the misconcep¬
Moreover,
the price
level will
both of them.
tions I have in mind, cannot be
continue to rise because the coun¬
It might seem presumptuous of denied. The primary fact I wish to
is not prepared
to
accept
me to discuss the erosion of sav¬
stress is the close connection be¬ try
and
as
bulwark against the eco¬
a
on
those with fixed incomes, pen¬
sions,
and
annuities,
health
times
of
and
social
life
inflation.
security,
insurance
there
But
in
In
tween steady
lars.
If
jobs and stable dol¬
get this across,
could
we
many
of the dangerous misconcep¬
tions
about
are
misconceptions - about the
problem of inflation that I feel are
debtors
important to discuss
and
inflation
would
dis¬
view
that
appear.
you
do
share
not
even
though
is
It
some
In
the
phasize
has
that
a
of
been
time.
It
Dollars
little
first
flation is
period
Sound
rising
the
is
been
place, let me
the problem of
real
one.
We
prices
situation
true
that
uniform
in
the
in¬
in
are
a
this
and
for
em¬
some
rise
has
amount
or
more
account,
money
price
into
level
believe
money,
fact
money
this
the
"to
is the
made clear
of
taken
to
in
that
is
a
whatever
form, be it fiat money in France or
Civil War greenbacks here, would
enable them to pay off their debt
obligations more readily and have
Bryans
prices are
the general
hard
or
led
are
more
timing for all kinds of prices, but
all
benefited by inflation
that sound
Debtors
Jobs and
traditional
a
are
detrimental to their best interests.
them.
when
Brazil.
293,181
that
Another form of the misconcep¬
that
inflation
is
relatively
not
increased
is
tion
Continued
week.
Soybean futures prices
Average daily purchases of
grains and soybeans were about
52,000,000 bushels, against 54000,000 a week ago. This was noticeably below the
year's average
of about 89,000,000 bushels.
life
by
set
are
increases
increases
no
ings, the economic distress visited
higher in price
caused
rates
from
The wholesale
food price index, compiled
by Dun & Bradstreet, Inc., declined 3 cents to $6.09 as of May 7. This equalled
the previous 1957 low touched on March
5, and was the lowest
since Nov. 13, 1956, when it was
$6.01. The current index com¬
pares with $6.03 on the corresponding date a
year ago, or a gain
of 1.0%.
inescapable fact
economic
prices
cost
According to the Federal Reserve Board's index, department
store sales in New York City for the weekly
period ended May
4, 1957, rose 6% above that of the like period of last year. In the
preceding week, April 27, 1957, a decline of 1% was reported. For
the four weeks ending May 4, 1957 a gain of 6% was
registered.
For the period of Jan. 1, 1957 to May
4, 1957 the index recorded
Wholesale Food Price Index
Equals 1957 Low Point
but
modern
high level it is relatively easy
pass along to the general pub¬
lic in the form of higher prices,
Mother's Day and warm weather lifted retail trade volume
in New York City the past week
8% to 10% above the like period
of 4%
that everyone
avoided.
An in-
to
in 1956, trade observers report.
rise
be
a
May 4, 1957, rose 7% from the like period last year. In the pre¬
ceding week, April 27, 1957, an increase of 3% was reported. For
the four weeks ended May 4, 1957, an increase of 8% was re¬
corded. For the period Jan. 1, 1957 to May 4, 1957, an increase
of 2% was registered above that of 1956.
a
precipice
must
A continued rise in
a
Board's
infla¬
begins to make its busi¬
decisions in the light of that
between strong unions and
strong
corporations. When demand is at
to 5%
Atlantic —1 to -f3; West North Central and Pacific
-f-3 to +7 and Mountain +1 to +5%.
Apparel buyers sought fill-in summer merchandise for de¬
pleted retail stocks last week and best-sellers were women's
Federal
accepts
continued
demand from any cause,
including
that part of the economy in which
those
South
the
of
commonly referred
to as the "wage-price
spiral." This
operates
to
reinforce
pressures
Coast
from
is
phenomenon
estimates varied from the comparable 1956 levels by the follow¬
ing percentages: New England, East South Central and West South
Central 0 to +4; Middle Atlantic +4 to +8; East North Central
and
is
currency
community
convienient
higher than a year
according to estimates by Dun & Bradstreet, Inc. Regional
was
that
and
wage
of
Wednesday of last week
tne
agrees
Ex¬
volume
close to
inflation
intellectual
our
the
of
The most consider¬
inventories
are
prospect,
the
infant
ceases
to
creep.
It learns to walk, run, and
finally gallop even though the
gallop may carry it over the brink
prior week.
The
on
a
that
misconception
prospect
on
and
A
Orice
the
conditioners, sales of major appli¬
reported
passenger cars
income
every 35 years. However,
if we accept the inevitability
creeping inflation, and I cer¬
tainly do not, it is not possible to
have just a "little" inflation.
more
coverings and outdoor furniture.
moderate rise in air
a
Automobile
new
in
is
of
goods expanded consider¬
year.
immediate
an
level
lagged.
ances
-
household
is
case.
And
What is
in
not
by the Mirabeaus and
that
process
advantages
spend."
to
the
disadvantages
outweigh the
those very people
far
/
b t o r,
even
:
were
e
apparent
any:
money
fact
of
i
tion
shoppers
d
a little inflation is
thing. A little inflation,
sometimes thought of as roughly
2% a year, would double the price
an
promotions helped
the past week,
.
good
a
Year Ago
a
substantially above last
was
Department
above the 258
17%
were
occurred
industry
were
e r
today is that
sustained
were
year-to-year decrease occurred.
Business failures declined to 267 in the week ended May 9
from 297 in the preceding week Dun &
Bradstreet, Inc., reports.
Failures
part
industrial fabrics.
fashion accessories
able rise occurred
The Past Week
^
1955.
Exchange
t h
e
disruptive of stability and. orderly
dresses, sportswear and men's lightweight suits. Although
furniture wholesalers reported another rise in
volume, a slight
Business Failures Show Moderate Recession
when 321
Cotton
in
growth.
cotton
'
However the
York
h
only illusory.
The
through April 30, exports
and slacks.
coats
ago,
cars,
and 2,705 trucks.
in
New
gray goods and some
ably and
23,168 trucks made
output rose above that of the previous week
while truck output decreased by 681 vehicles during
the week. In the corresponding week last year 105,552 cars and
22,121 trucks were assembled.
Canadian output last week was placed at 9,158 cars and
1,920
trucks.
In the previous week Dominion plants built
10,038 cars
and 2,026 trucks, and for the comparable 1956
week, 11,033 cars
by 6,422
the
season
some
of
were
steady and prices remained
Despite some scattered buying,
was
interested in cotton dresses and sportswear. Men's stores reported
a noticeable rise in the
buying of summer lightweight suits, sports
week's
reported there
increase
declined seasonally.
Although Mother's Day
of
Output Higher Trend Extended
Last week the agency
lyod
ness
with 119,999
the United States.
lambs
week ago.
a
Above Like Period
Automotive output for the latest week ended May
10, 1957,
according to "Ward's Automotive Reports," continued to expand
above the level of the preceding week.
in
of
prior week and the comparable
Trade Volume Last Week Rose One to Five Percent
In Latest Week
states
the
Indeed,
more money.-
w
large
in
stability
that
gains arising from
of the
cor¬
responding week in 1955.
U. S. Automotive
both
buying
on
level
thetic
2.4% under the
or
*'
trading picked up resulting
Cattle supplies in Chicago were moderately
Bookings in v/oolens and worsteds equalled those of the Week
last, and prices were steady. Trading in carpet wools was
sluggish again last week. There was an increased call for syn¬
reports.
cars,
of
unthinkingly join the clamor
give them
worker, or employer — >
or small—has such a stake,;,
before
Loadings for the week ended May 4, 1957, totaled 718,924
cars, a decrease of 51,634 cars, or 6.7% below the corresponding
1956 week, and a decrease of
last
or
Thursday, May 16, 1957
.
creaitor,
estimated 6,320,000 bales, while in the similar period last year they totaled
about 1,501,000 bales.
Loadings of revenue freight for the week ended May 4,
1957, advanced 28,135 cars or 4.1% above the preceding week,
Last
The
For the
Car Loadings Last Week Showed Gains of 4.1% Above
of
purchases of hogs with prices
tnose
.
everyone,
prior week., Exports of cotton two weeks ago
were estimated at 240,000 bales, compared with
122,000 bales in
the previous week and 56,000 bales in the comparable 1956 week.
14, 1955.
the Association
those
Prices
at
the week
over
to
price by the Department
of Agriculture and unfavorable growing conditions in Texas stim¬
ulated cotton trading during the week.
The past week's output advanced 25,000,000 kwh. above that
of the previous week; it increased 474,000,000 kwh. or 4.4% above
ended May
who
market
sugar
An increase in the mid-April parity
modest increase above the preceding
was a
in
domestic
agoi44:'>-'\'jj
slightly.*,'Receipts'somewhat exceeded
lard futures prices
estimated
Electric Institute.
the
week
a
moderate rise
a
close to the levels of
industry for the week ended Saturday, May 11, 1957,
at 11,311,000,000 kwh., according to the Edison
power
was
In
;ago.
At the end of the week cattle
period.
Upward the Past Week
The amount of electric energy distributed by the electric light
year
a
slight price rise.
a
less than
1956.
and
was
advancing
annual capacity of 128,363,090 tons as of Jan. 1,
on an
bags
close to that of
was
.
either of the two known methods
of
control—sufficient
straint
to
create
credit
enough
re¬
unem¬
ployment to halt the rise in labor
cost or drastic
government con¬
trols
of
wages
and prices.
It is my own
belief, however, that
monetary
control
and sound fiscal policies orderly
economic growth and reasonably
with
general
stable
compatible.
I
the doctrine
cannot
have J price sta¬
bility without heavy unemploy¬
ment.
My principal argument is
that excess capacity tends to de¬
press
prices and to curb price
rises. As capacity catches up with
demand, prices recede.
Witness
the record in cotton spinning, the
prices
decline
that
to
are
accept
we
r
production
of rayon and
acetate,
Volume 185
Number 5638
.
.-The Commercial and Financial Chronicle
.
(2307)
35 rs.)
>
/
and
the
weaving
of
cotton
fabrics.
In
the
synthetic
the
of
these, the data suggest that both
productivity and wage rates have
increased
1947
about
while
My
is
limited
company executives
if they are
well
the
end
was
they did
doubtful
efficiency,
we
can
as¬
then
that
direct
controls
will not actually be used to com¬
bat
a
peacetime inflation. This
leaves us with the tools of fiscal
and
to
that
monetary policy. Fiseal policy
combat
inflation
an
involves
going to need more (1) the use of the taxing power
plant capacity, they had better get to curb excessive demand from -the
it
before construction costs rise private
sector, and (2) a reduction
further, thus bringing on the very of spending in the public sector,
malady they dread.
because it
effect upon the
ous
until
It is danger¬
an
insidious
has
the
shows
government
real
a
and
budget
sustained
sur¬
plus. The role of monetary policy
qualify of decision
making by businessmen, who rea¬ -is to control the amount of money,
son
along these lines: "Suppose through regulation of the reserves
do make
we
mistake and
all groups cannot be given special
shelter. It follows, therefore, that
Continued
from
15
page
the
larger the number accorded
special protection or help, through
government
subsidies, guarantees,
loans, and grants, the more pres¬
sure
will be exerted
that
use
Analysis of the Sources and
the groups
on
the free market.
Uses of Investment Funds
•
This question of the differential
inadequacy as
unpopularity and
their
as
sume
some
believe
in
and
success
prevent inflation.
In view of their
basis for the
Hence,
their
►
not
foundation for
bargaining in wage
negotiations for escalator clauses
that tie wage rates to the
cost of
spiral.
since
when supported by wartime
patriotism,
dangerous.
It
is
selfdefeating because it is the rational
wage-price
is
It
peacetime,
and
the
system.
even
second
living and form
enterprise
free
and
have
prices
behef
ing
choice
clear that such controls would not
be effective in
observation is that
that creeping inflation
inevitable is both self-defeat¬
the
market
private
'/'v" ;';r "i••
1■
free
since
one-third
fabric
fallen.
desirability and efficiency of
the
and
last
impact of monetary restraints on of savings but also through the
certain groups of the population' shift of assets from Government
involves the larger question of securities to other major uses.
securities and mortgages issued—
whether
Similarly, the overhanging unsat¬
isfied demands, which do not ap¬
pear in these data, can have a
significant impact upon the course
of interest rates, by pushing bond
prices down. Our analysis, how¬
ever, deals only with the demand
and supply which actually were
brought together in the market.
The size of the residual takings,
being dominated by individuals
and probably marginal, seems to
provide a good key to pressures
in the capital markets. In periods
of eased demands for funds, in¬
stitutional
investors, who musf
aggressively seek investment out¬
lets, bid security prices up, there¬
by virtually freezing individuals
the
social
needs
the
of
community for jobs, schools, roads,
and housing are in conflict with
the maintenance of
sound dollar.
a
Areas Not Covered
In addition to the Federal Gov¬
ernment,
My contention and belief is that
our
there is
ings of
conflict. But
no
no
how great is our need and
for
more
be
fitted
matter
desire
and better
schools, roads,
housing, and productive facilities,
the simple fact is that they must
into
pacity and
available
our
We
resources.
ca¬
cannot
have
everything at once if our
objectives are to be maximum
growth and a stable price level.
have excluded from
we
the changes in hold¬
and deposits, al¬
though where changes in cash
holdings are given separately on
summary
currency
institutional
have
balance
included
the
of funds in the
However,
we
sheets,
item
as
a
we
use
appropriate table.
do
make
not
any
attempt to compute a total change
and to allocate it among the vari¬
ous sectors.
Not only would this
complicate
our picture by bring¬
ing in other sectors, such as the
Treasury monetary funds and the
eventually expand with
Federal Reserve, without neces¬
population growth and by that on the demand for goods and
time
the, rise in the values of services available. While both are
sarily shedding much light on the
buildings and equipment will val¬ important in stabilizing the econ- the part of individuals and cor¬ pressures prevailing in the invest¬
idate
our
decisions."
Subcon- omy, I would like to discuss more porations and it may be effected ment markets, but it would also
involve difficult concentual prob¬
ciously, perhaps, >the feeling is fully the role : of monetary policy
by taxation, but the savings must
that it is better to err on the side in
lems.
In fact, as in the case of
combating inflation.
largely
balance
investment.
A
of
overbuilding and thus keep up
Monetary policy by restricting small amount of investment may Government securities, it would
with the competitive Joneses
for the supply of money and credit be financed out of bank credit introduce shifts governed prima¬
rily by liquidity considerations
creeping inflation will tend to cuts down spending by increasing expansion to provide for
monetary
rather than investment demands.
make miscalculations of
capacity the price of money, the rate of in¬ growth, but this amount must be
in relation to demand look
We have also not covered for¬
like terest. In effect, this substitutes an kept within the margin of toler¬
canny decisions.
increase in the price of money for ance for a stable dollar. The ad¬ eign securities (except in the case
Such
an
"inflation"
psychol¬ an increase in the price of goods. vantages of a stable dollar cer¬ of life insurance companies), trade
a
build, the, market
for
over¬
available to commercial banks, so
prod¬
our
that
will
uct
growth in the money supply
not put additional pressure
will
ogy" can encourage a full-scale
inflation through its effects on
people's spending, saving, and in¬
The
vestment
to
habits
which
could
allocation
supply
then
not
of
left to
those
ing
creeping inflation is desirable, and
in any case
inevitable, invites also
free
the expectation that further infla¬
tion is
has
Spread
striction
of
rapidly
and
highly
probable.
expectation could
activate
the
credit
is
forces, going
who
are
higher
will¬
price
for
borrowed money. This use of ris¬
ing interest rates to exclude bor¬
,
this
market
pay
available
and
borrowers
help but be followed by a slump.
Dr. Ralph A. Young of the Board's
staff has explained that
danger
succinctly: "The widely held view
that, to sustain high employment,
to
the
of
money
from
rowers
which
is
the
most
market
market
is
consistent
system.
a
"tight¬
ness" of money over the past year
new
resulted
not
credit
from
actual
re¬
the
on
supply of money
being but from in¬
in
creased
demands of borrowers. If
spending and bor¬
rowing,
further
increasing the the supply of credit had been
turnover
of deposit
.allowed, to increase to satisfy all
money.
In¬
stead of a rolling
adjustment in demands,
it
would
only
have
output and prices under more ac¬ added to
inflationary pressures
tively competitive conditions and without adding to the supply of
.
in preparation for
stage of
goods,
without
inflation, im¬
resumption of inflation¬
ary tendencies would threaten."
prices
shown
new
a
advance
it
is
and
belief that
my
in
and
time
rium
of
would
maintain
the
the
without
employment,
demand,
output
same
under
can
financial
and
of
stable
lieve
if
that
inflation
growth
do
we
This
is
to
to
prevent
brings
is
to
me
can
control
or
the final
credit
tions
housing or plant and
equipment that cannot be financed
out of savings or schools and roads
that the community is unwilling to
Government
finance out of taxes.
cial transactions. All told, the uses
of funds not covered, aside from
to
Our
has
economy
it?
mis¬
and at the same time
purchasing
stable.
To
power
do
so
bility
of
to
the
further
demands.
Sooner
wduld
spending
than
more
production,
To
must
we
which
we
the
good of the greater number rather
than that of the few, on the wis¬
of
dom
governmental officials to
control excesses through wise use
of
the
and
weapons
to
less
no
private citizens.
our
Columbus Stock & Bond
increas¬
case
table
of
an
Friday, May
on
oi
money
Club,
but
effective
the
unpala¬
action
taken
to
adopt rationing and to
place direct controls on wages and
was
prices.
To
the
extent
it
was
ap¬
plied effectively, rationing did re¬
duce
effective
demand
for. the
time being, but it resulted in an
accumulation of unspent funds in
the hands of willing buyers that
eventually bursts through the
dams cf price and wage controls.
While necessary in wartime, such
direct intervention in individuals'
freedom
of
choice
to
buy
what
they will and at whatever price is
in
contradiction
to
our
belief
in
It
has
that
therefore
these
desirable
t
has
been
been
preferred
be
taken
groups
of
to
decrease
other
types of demand if we are
to avoid inflation. It is certainly
possible,
and
in
some
cases
de¬
sirable, for the government to act
to shelter certain groups, but it is
a
matter of simple
invited.
Reservations
al¬
suggested
arithmetic that
guests
most cord¬
ially
projects
must
o w n
are
elemental,
should be ex¬
empted from monetary restraint
by government action. While the desirability and im¬
portance of these activities are
not to be questioned, it must be
remembered that if these types of
demand are to be given special
shelter from market forces, some
action
Out-of-
Ohio.
lie made
may
y
various sectors Of
among
24, 1957,
Broad
and
The way in which the available
in .suppiy
cutting located
inflation under
conditions,
small
miscellaneous
a
with
J.
Robert
Gallagher,
50
Secretary,
Broad
St.,
Columbus
W.
15,
Ohio.
F.
James
ficers
Merkpl
The j957 Qf_
President, James
Sweney
Cartwright
are:
Merkel,
F.
&
Co.; yice-President, Roy E. Swabby; Secretary, Robert Gallagher,
Gallagher-Roach
and
Company.
Trustees, Don Noe, Bache & Co.;
William Sanders, W. E. Hutton &
Co.; Fred M. Vercoe,
Co.; Wayne J. Graf.
Vercoe &
With Reynolds & Co.
(Special to The Financial Chronicle)
CHICAGO, 111.—Robert W. Hoff¬
man
is
nolds
affiliated
now
&
Street.
Bache &
Co.,
He
39
was
Co.
with
Rey¬
South La Salle
previously with
reg¬
of funds and current
sources
demands, individuals, who might
not normally seek investment out¬
lets in bonds or mortgages, may
be attracted to the capital markets.
finan¬
&
Light 45/s% Bonds
'i
totaled
Halsey, Stuart & Co. Inc. is
only about $3 billion, or approxi¬
mately 10% of total uses in 1953 manager of an underwriting syn¬
which is offering today
the latest year for which detailed dicate
$15,000,000 of Florida
statistics are available.
In some (May 1$)
Power $ Light Co. first mortgage
years, of course, trade, credit in
particular may amount to a more bonds, 4%% series due May. 1,
'
'
■
■
cash
and
'
•
Governments,
sizable figure, but information on
holdings of such credit is not avail¬
able currently. We do have infor¬
1987, at 102.046% and accrued in¬
terest, to yield 4.50%. The un¬
derwriters
the
of
award
won
bonds at
competitive sale yester¬
credit and plan to add it to our day (May 15) on a bid of 101.18%.
Net proceeds from the financing
summary next year.
On the sources side, our major will be used by the company to
additional electric and
omissions are noncorporate busi¬ provide
ness— for
which current infor¬ gas facilities and for other cor¬
purposes.
The company
mation
is
completely lacking — porate
estimates that its 1957-1958 con¬
nonprofit associations, and some
struction program will approxi¬
acricult'irnl and other Federal
mate $132,000,000.
agency funds.
mation
noninstalment
on
consumer
Residual
In
Figure
framework,
our
and
bonds
new
deemable
sources
4831 E.
Street,
Columbus,
.
ular
Offers Florida Power
other
and
able statistics, and since by
demand
flect the imbalance between
Halsey, Stuart Group
brokers,
loans
Outing
(Ohio)
the
of
out
few
with
bus Country
demand.
The problem is, ; the
economy
by rising interest
therefore, how to select which de¬ rates has been sharply criticized.
mands are to be cut in the most
It has been said that j this has de¬
impersonal and equitable way.
prived
us
of " vitally
needed
schools, roads, and housing, and
Question of Prices Controls
has unduly hurt small businesses.
In the
debit
ances
The
COLUMBUS,
lumbus
higher.
capital markets. Contrariwise, in
periods of high demand, the ag¬
gressive search for funds appears
to bring out marginal investors.
Furthermore, as higher yields re¬
The
Club Outing
later,
down
wartime
at their disposal,
degree, on the
a
understanding and cooperation of
totals—
investors
other
and
uses
much
and
been
transactions,
and credit bal¬
agency
interest rates get out of con¬
earn
means
the
on
we pursue
multiply
or
become
ing interest rates are
all-pervasive forces.
con¬
avoid
tq^keep the
our dollar
have
Federal
some
at the Colum¬
generated
sta¬
the
preserve
economy.
inflation
?of
depends
with which
courage
supply
inconvenience. This is the fallacy .forces. It is a fallacy to think in¬
that most
hampers any serious terest rates can be kept low by
attempt on the part of responsible government fiat. The forces mak¬
authorities
ca¬
customers'
sources
our
would
noninstalment
credit),
Ohio —The Co¬
Stock and Bond
Club will hold their Annual Gulf
even
conception I want to discuss, that
inflation can be stopped without
trol
great
a
pacity for growth. Ours is an era
of technological and social prog¬
ress.
But our objectives are two¬
fold: to raise our living standards
(including
consumer
trol, and rise because of inflation-
necessary
what
occur,
tainly outweigh the disadvantages
of temporarily
postponing addi¬
ingly reluctant to lend, at least
insisting on an interest premium
to compensate for the purchasing
power depreciation of the dollars
lent. Thus, eventually in inflation,
dollar, such growth would
impossible. If we do not be¬
be
I
as
still
lenders
a
policy,
borrowing
and
indicated earlier,
financed
be
monetary
activate
would
credit
Indeed,
maintenance
weak
a
spending,
equilib¬
economy.
the
the
at
have
The
have
we
would
an even greater rise.
price rise, coupled with the
expectation of further inflation
mediate
growth,
and
analysis, investment
primarily out
of real savings from current in¬
come. The savings may be accom¬
plished by voluntary action on
that
with
The
In the final
must
and
at
ranging
prices
to
are
be
re¬
redemption
107.05% to
general
from
and at special redemption
balance. The total change in out¬ prices receding from 102.05% to
par, plus accrued interest in each
standing securities, mortgages and
of
uses
investment
can
the
tion
be obtained from avail¬
someone
On
tistics,
defini¬
Florida
&
Power
Light
Co.
is
we
can
count
to
up
known
major portion of the residual
represents holdings of individuals,
some
is attributable to unincor¬
business
organizations.
porated
In
r.
case.
were
had
changes in holdings, and this in¬
variably leaves a residual. While
the
par,
out¬ engaged in the electric and gas
take utility business, with about 98.%
of
its
total operating revenue^
the basis of other sta¬
instruments
standing,
them.
alwavs
funds
making
and
our
non-profit
derived
The
supplies electricity
along the
in most of the territory
east coast of
tural
area
eastern
lower
Florida, the agricul¬
around
Lake
west
and
southern
the
Okeechobee,
coast
and por¬
tions of central and north central
Florida.
forecasts,
from its electric services.
company
Electric
area,
service
is
sup¬
we
plied
in
454 communities,
the
estimate the residual by first add¬
largest of which are Miami, Fort
ing up projected uses of funds and Lauderdale,
West Palm Beach,
then
totaling
our
guesses
of Miami Beach, Hialeah and Day^
sources of funds from each major
tona Beach.
Gas service is sup¬
class
of
"adding
here
investor.
up
used
The
phrase plied
the uses of funds" is
advisedly. We do not
venture
to
demand
for
forecast
the
potential
funds, but rather the
and
in
Miami,
Lakeland
In
an
Day tona
and
tomers in Holly
to
a
Beach
few cus¬
Hill.
unaudited
statement
of
for
the
12
months
type and volume of demands like¬ ended Feb. 28, 1957, the company
ly to be matched by funds avail¬ reported total operating revenue*
able from investors and thus to of $112,729,000 and net income of
become actual uses of funds. Our $17,619,000.
figures do not show a "savings
gap," as measured by the pressure
Joins Chesley Staff
of potential demands against avail¬
(Special to The Financial Chronicle)
able savings.
CHICAGO, 111.—Ann T.McGintjr
In 1956, for example, demands
operations
funds were apparently much has joined the staff of Chesley A
higher than could be met in the Co., 105 South La Salle Street.
market, and if the funds had been Miss McGinty was previously with
available at the desired price, the .T P. Blanev & Co.
for
'
The Commercial and Financial Chronicle
66
.
.
Thursday, May 16, 1957
.
(2308). 1
it INDICATES
Insurance Co.
Academy Life
April 18 filed 750,000 shares of common stock (par 50
cents) to be offered for subscription by military, Na¬
tional Guard, active, retired or reserves, personnel and
not to the public at large. Price—$1 per share. Proceeds
—For
operating capital.
Office — Colorado Springs,
Underwriter—None. Offering—Expected in two or
Colo.
three months.
(5/22)
May 1 filed $22,000,000 of sinking fund debentures due
Co., Riverdale, III.
Acme Steel
amendment. Proceeds—
Price—To be supplied by
1977.
and for expansion program. Under writers—Blyth & Co., Inc. and Merrill Lynch, Pierce,
Fenner & Beane, both of New York.
To repay bank loans
Acme Steel
(5/22)
Co., Riverdale, 111.
filed 396,079 shares of common stock (par $10)
to be offered for subscription by common stockholders
May 1
of record May 21, 1957 on the basis of one new share for
each six shares held; rights to expire on June 5. Price—
supplied by amendment. Proceeds—For expansion
Underwriters—Blyth & Co., Inc. and Merrill
Lynch, Pierce, Fenner & Beane, both of New York.
To be
program.
Acme Tool &
Engineering Corp.
April 4 (letter of notification) 100,000 shares of common
stock (par 10 cents). Price—$1 per share. Proceeds—
For leasehold improvements; purchase of equipment,
inventory material, etc.; and for additional working
capital. Office — 4142 Howard Ave., Kensington, Md.
Underwriter—Williams, Widmayer & Co., Washington,
D.
C.
it American Mutual Fund, Inc., Los Angeles, Calif.
May 13 filed (by amendment) an additional 1,500,000
shares of capital stock (par $1). Price—At market. Pro¬
ceeds—For investment.
Agricultural Equipment Corp.
1 (letter of notification) 500,000 shares of
stock
com¬
cents). Price—50 cents per share.
obligation, purchase tools and for
working capital. Address—P. O. Box 322, La Junta,
Colo.
Underwriter—Mountain States Securities Corp.,
(par
Proceeds—To
10
Air Products, Inc., Allentown, Pa.
(5/24)
May 1 filed 170,160 shares of common stock (par $1) to
be offered for subscription by common stockholders of
record May 21, 1957 on the basis of one new share for
each six shares held; rights to expire on June 10. Price
•—To be supplied by amendment. Proceeds—For general
corporate purposes, including retirement of bank loans
©nd for
capital* expenditures. Underwriters—Reynolds
Co., Inc., New York; Drexel & Co., Philadelphia,
and Laurence M. Marks & Co., New
&
Pa.;
York.
All America Expansion Corp., Pasadena, Calif.
IVTay 3 filed 184,000 shares of common stock, of which
1)2,000 shares are to be offered to public and 92,000 shares
issued to promoters. Price—To public, $1 per share; no
proceeds from sale to promoters.
corporate
oil fruits
Proceeds—For general
purposes. ' Business—Purchase
grown
writer—None.
in Brazil
and
and
resale
of
other countries. Under¬
LeRoy R. Haynes, of Pasadena, Calif., is
President.
;
per
Chairman, Vice-Chairman and President, respectively.
ir American Savings Life Insurance Co.
April 29 (letter of notification) 200,000 shares of com¬
mon stock
(par 10 cents) to be offered on the basis of
per
$1,000 insurance to policyholders and
$1,000 insurance to agents. Price—55 cents
per
Office
share.
to be offered for sale under the "Incentive Stock
Plan
for
Key
Employees"
this
of
corporation
Option
its
and
subsidiaries.
Allied
373 E. Palm Lane, Phoenix, Ariz.
—
Underwriter—None.
it Ames
Co., San Francisco, Calif.
(W. R.)
May 13 filed 50,000 shares of capital stock (par $2). Price
—
To be
with
supplied by amendment. Proceeds — Together
from private sale of $500,000 of notes to
funds
insurance firm, to
retire bank loan; for expansion and
Underwriter—Dean Witter & Co., San
working capital.
Francisco, Calif.
stock
(par
per
Co.,
Atlas. Credit Corp., Philadelphia,
L
'
Merchandising, Inc., Tampa, Fa.
April 17 (letter of notification) 85,714 shares of common
stock (par 50 cents) to be offered for subscription by
•
Automatic
common
at the rate of one new
stockholders
each 2.398838 shares
share for
expansion.
Tampa, Fla.
Bankers Fire & Marine Insurance Co.
—
Finance Co.,
Dallas, Texas
April 22 filed $1,200,000 6% sinking fund capital deben¬
tures due 1972.
Price
At 100% of principal amount.
(letter of notification) 240,000 shares of com¬
(par $1). Price—$1.25 per share. Proceeds—
For partial payment for plant site; partial payment of
obligation to Memorial Inc. and for working capital.
Office—4718 W.
Lincoln, Neb.
Offering—Expected this week.
Allied Product's of
Florida, Inc. (6/3-15)
May 1 filed 130,000 shares of class A common stock (par
$1) to be offered first to stockholders of record May 20,
1957; rights to expire about June 4. Price—$11.50 per
18th
St., Houston, Tex.
Benjamin & Co., Houston, Tex.
Underwriter—
Share.
Proceeds—To retire bank loans, for
expansion,
inventory purchases, to pay current accounts payable
and for working capital. Business—Manufactures build¬
ing materials and electrical appliances. Office — St.
Petersburg, Fla. Underwriter—Atwill
&
Co., Inc., Miami
Beach, Fla.
Amcrete
Corp.
(letter of notification) 300,000 shares of com¬
stock (par 10 cents).
Price—$1 per share. Proceeds
*—For expansion and equipment. Business — Prefabri¬
cated
concrete
wall sections and buttresses.
Office—
Fox Island Road, Port
Chester, N. Y.
Underwriter—
None.
it American Fire & Casualty Co. (5/17)
May 1 (letter of notification) 12,060 shares
of capital
stock (par $5) to be offered to stockholders
of record
May 17 on the basis of one new share for each 15 shares
held; rights to expire June 3, 1957. Price—To stockhold¬
ers, $23 per share; to public, $24 per share.
Proceeds—
To increase capital and paid-in
surplus. Office—307 S.
Orange Ave., Orlando, Fla. Underwriter—Goodbodv &
Co., New York, N. Y.
of Kwikset
stock
(par $12.50)
stock and class B
Locks, Inc., at the rate of
one
share of American Hardware for each two Kwikset com¬
mon
shares and 55,500 American Hardware common
shares
stock.
for
The
150,000 shares
offer
is
of
Kwikset
conditioned
upon
not less than 85% of the issued and
common
and class B
writer—None.
common
'
-
~
class
its
B
acceptance
•'
of
outstanding Kwikset
shares by June 28.
;
common
Under¬
Underwriter—None.
Inc.
(three letters of notification) 12,500 shares of
(par $1). Price—At market (estimated at
$8 per share). Proceeds—To three selling stockholders.
Underwriter—L. F. Rothschild & Co., New York. Offer¬
ing—Expected this week.
April 29
common
stock
Benrus Watch
Co., Inc.
29
(two letters of notification) 25,000 shares of
common stock (par $1). Price—At market
(estimated at
$8 per share). Proceeds — To four selling stockholders.
Underwriter—Ralph E. Samuel & Co., New York, Offer¬
ing—Expected this week.
machinery, equipment, inventories and
Office — Washington and Cherry Sts.,
Underwriter—None.
Conshohocken, Pa.
Calidyne Corp., Winchester, Mass;
May 1 filed $1,250,000 of Limited Partnership Interests to
be offered first to present limited partners at the rate of
one $1,000 unit for each $1,000 of his present investment;
then to public. Price—$1,000 per unit. Proceeds — To
construct plant; to purchase machinery and. equipment;
and to reduce outstanding demand notes. Business—Pro¬
electro-dynamic shaker and other vibration test
Underwriter—None. Robert C. Lewis, Philip
C. Efromson and Thomas Gouzoula, all of Winchester,
duces
equipment.
are
the general partners of this
,,
.
Massachusetts
-
,
Capper Publications, Inc., Topeka, Kan.
March 25 filed $1,000,000 of five-year 4% first mortgage
bonds, series six, and $3,000,000 of 10-year 5% first
mortgage bonds, series seven. Price—At par. Proceeds—
To redeem outstanding bonds and for improvement of
present facilities and other corporate purposes.
Under-
Cargo Cool Corp.
(letter of notification) 100,000 shares of common
stock (par 10 cents). Price—$3 per share. Proceeds—To
open and acquire additional truck terminal branches;
for increased inventories; and for working capital. Busi-^
Jan. 31
ness
—
Office—947
Underwriter-
Transport refrigeration equipment.
Jersey City, N. J.
Ave.,
Communipaw
Fred Kaufman Co.,
120 Elm St., Orange, N<- J.
Mines, Inc., Kings Mountain, N. C.
679,469 shares of common stock, of which
283,676 shares are to be offered for subscription by
stockholders at the rate of five additional shares for each
Carolina
March 29 filed
held; and the remainder will be offered to
shares
four
public.
Price—At par ($1 per share).4 Proceeds—
repay loans, for exploration and development work,
construction and working capital.
Underwriter — None.
A, S. MacCulloch of Vancouver, B. C., Canada, is Presi¬
the
dent and
principal stockholder.
Central Vermont Public Service Conp.
(5/27)
May 7 filed 125,000 shares of common stock (par $6).
f*rice—To be supplied by amendment. Proceeds—To re¬
pay short-term borrowings and for construction program.
Clark Oil & Refining Corp.
March 22 (letter
stock
of notification) 5,000 shares of common
(par $1). Price
—
At market (estimated at about
share). Proceeds—To Emory T. Clark, President
of company. Office—8530 W. National Ave., West Allis,
Wis. Underwriter—Loewi & Co., Inc., Milwaukee, Wis.
$20
per
Coastal Chemical Corp., Yazoo
City, Miss.
May 1 filed 150,000 shares of class C common stock to
be offered for sale to farmers and other users of fertilizer
materials.
Price—At
construct
To
and
($25 per share).
par
Proceeds—
operate facilities for manufacture of
anhydrous ammonia.
Underwriter—Mississippi Chemical
Corp.; Yazoo City, Miss.
•
States Gas
Coastal
Producing Co.
(5/21-24)
sinking fund debentures
1, 1977 (with common stock purchase war¬
rants). Price—To be supplied by amendment. Proceeds
—To pay bank loans, for construction and acquisition of
additional gas gathering systems, and for working capital.
Underwriter—Paine, Webber, Jackson & Curtis and Blair
April 30 filed $5,000,000 5^2%
due
June
& Co. Incorporated,
•
Collins
both of New York.
Radio Co., Cedar
Rapids, Iowa
★ Black, Sivalls & Bryson, Inc.
May 2 (letter of notification) 130,000 units of interest in
Salaried Employees Thrift & Profit Sharing Plan and an
April 17 filed $7,917,000 5% convertible subordinated de¬
bentures due June 1, 1977, being offered for subscription
estimated 5,500 shares of common stock (par $1) to be
purchased in open market pursuant to plan. Price—$1
per unit. Office—7500 E. 12th St., Kansas City, Mo.
May 14, 1957 on the basis of $100 of debentures for each
19 shares of common stock held; rights to expire on May
Bonanza
Feb. 11
stock
Oil
&
Mine Corp.,
Sutherlin, Ore.
(letter of notification) 71,710 shares of common
(par 10 cents).
Price
—
75 cents
per
share.
Pro¬
by class A and class B
28.
Friedman
&
selling stockholder. Underwriter—L. D.
Co., Inc., New York, N. Y.
Edison Co.
(6/4)
May 7 filed $25,000,000 of first mortgage bonds, series
F, due 1987. Proceeds—To retire bank loans and for con¬
struction program.
Underwriter—To be determined by
Price—At par.
common
stockholders of record
Proceeds—To reduce bank loans of
and subsidiaries and for working capital. Un¬
derwriters—Kidder, Peabody & Co., and White, Weld &
company
Co., both of New York.
ceeds—To go to
Boston
American Hardware Corp.
April 8 filed 118,000 shares of common
being offered in exchange for common
common stock
Terrace, Bloomfield, N. J.
Benrus Watch Co.,
April
March 29
mon
it Ben Franklin Oil & Gas Corp.
April 29 (letter of notification) 250,000 shares of com¬
mon
stock (par one cent).
Price—22 cents per share.
Proceeds—To go to two selling stockholders.
Office—
7 Lenox
For
—
working capital.
28
stock
—
Proceeds—For reduction of bank loans and working cap¬
ital, Underwriter—The First Trust Co. of
Proceeds
Underwriter—Hallgarten & Co., New York.
Beautilite Co.
Dec.
stock
To
April 25 (letter of notification) 19,854 shares of common
stock (par $6) to be offered to stockholders of record
May 30, 1957 on a basis of two new shares for each 11
shares held; rights to expire July 30, 1957. Price—$11
per share.
Proceeds — To increase capital and surplus
accounts. Office
3i2 N. 23rd St., Birmingham 3, Ala.
mon
(letter of notification) 14,000 shares of com¬
(par $10) to be offered for subscription by
stockholders and employees.
Price—$12.50 per share.
March 28
mon
held.
Price—$3.50 per share. Pro¬
Office—107-109 i South Willow,
Underwriters—Stevens, White & McClure,
Inc., Tampa, Fla.; French & Crawford, Inc., Atlanta, Ga.;
First Florida Investors, Inc., Orlando, Fla.; Pierce, Carrison, Wulbern, Inc., Jacksonville, Fla.; and J. Herbert
Evans & Co., St. Petersburg, Fla.
ceeds—For
Co., Corsicanar Tex.
Inc.
writer—None.
Pa.
May 3 filed 680,000 shares of class B common stock (par
10 cents). Price—$2.25 per share.
Proceeds—For work¬
ing capital. Underwriter—J. A. Winston & Co., Inc., New
York.
C & D Batteries,
Limited Partnership.
share. Proceeds—For investment
a subsidiary; to carry an inven¬
tory of leases for present and future drilling programs;
and for general corporate purposes. Underwriter—APA,
Inc., another subsidiary, Minneapolis, Minn.
Price—$6
$2.50).
derwriter—Wm. B. Robinson &
Mass.,
Apache Oil Corp., Minneapolis, Minn.
March 25 filed 50,000 shares of common
Underwriter—None.
it Allied Chemical & Dye Corp., New York
May 10 filed 266,678 shares of common stock (par $18)
to
ers.
shares
of common
(par one cent). Price—At market. Total offering
exceed $300,000. Proceeds—To selling stockhold¬
OfficeL-1400 East/Jefferson Ave.^ Dallas,Tex. Un*
stock
shares of common stock (par one
share. Proceeds —- For working
capital and general corporate purposes. Office—Dallas,
Tex.
Underwriter—Peoples Securities Co., J. D. Grey,
of New Orleans, John S. Tanner, of Dallas, and C. L.
Edmonds, of Houston, three of the 22 directors, are
200
Manufacturing Co.
Browne Window
Feb. 15 filed 50,000,000
200 shares per
ISSUE
REVISED
No public offering expected.
delphia, Pa.
cent),
Price—$2
ITEMS
Underwriter—Drexel & Co., Phila¬
Philadelphia 44, Pa.
not
reduce
Denver, Colo.
•
PREVIOUS
April 10 (letter of notification) 82,500 shares
Provident Investors Corp.
American
in stock of APAF
March
mon
Registration
Now in
Securities
ADDITIONS
SINCE
Colonial Aircraft Corp.,
Sanford, Me.
shares of common stock (par 100),
of warrants to purchase the
following number of shares and held as follows: Glick
& Co., Inc., underwriters of original offering, 140,000
shares; and by three individuals 110,000 shares.
Price—
March 29 filed 250,000
to
be issued upon exercise
exercisable
Proceeds—From sale of shares
competitive bidding. Probable bidders: Halsey, Stuart &
Shares to be offered at market. Warrants are
Co. Inc.; The First Boston Corp.; Lehman Brothers; Harriman Ripley & Co. Inc.; White, Weld & Co. Bids—Ex¬
pected to be received up to noon (EDT) on June 4.
at 10 cents per
Brantly Helicopter Corp.
April 8 (letter of notification) 21,818 shares of common
stock (par 50 cents). Price—$13.75 per share. Proceeds
—For
working capital., Office—24 Maplewood Ave.,
April 30 filed $5,000,000 of sinking fund
to
warrant.
sellers of warrants.
Colonial
Stores,
Underwriter—None.
Inc.
(5/21)
debentures due
May 1, 1977. Price—To be supplied by amendment. Pro¬
ceeds—For expansion and improvements. Underwriter—
Hemphill, Noyes & Co., New York:j
Volume
Number
185
5638
.
.
The Commercial and Financial Chronicle
.
(2309)
^
Colt
Golfr Inc.
■
(letter of notification) 50,000 shares of common
(par five cents). Price—$3 per share. Proceeds
—For promotion and advertising; working capital; and
for development of new products.
Business—Manufac¬
ture and sale of golf balls.
Office —- 161 East 37th St.,
stock
New
May 16
(Bids
Washington
Gas
System, Inc. (6/6)
May 8 filed $20,000,000 of debentures, series H, due 1982.
Proceeds—For construction program.
Underwriter—To
be determined by competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.;
Merrill Lynch, Pierce, Fenner & Beane and White, Weld
& Co. (jointly). Bids—To be received up to noon (EDT)
June
on
Oil
Co.
(Steven
Nassau
Southeastern Securities Corp.,
Tilmore
determined
-
Maltz,
t
11:30
(Lehman
Fisher
Brothers
(Merrill
Lynch,
New York
EDT)
Continental Gin
be
offered for
of record about
share
C.
Underwriter
stockholders
additional
common
Acme
Steel
Allyn
&
to
be
Acme
to
Underwriter
—
Leward
held
and
$300
Shamrock,
in
Fla.
Office
—
Laurel,
Underwriter—None.
Miss.
stock
Proceeds
(letter of notification) 560,000 shares of com¬
(par one cent). Price f-~ 50 cents £er share.
For diamond drilling on company's lands,
—
Daybreak Uranium, Inc., Opportunity, Wash.
May 7 filed 631,925 shares of common stock (par 10
cents). Price — At market (approximately 53 cents per
share). Proceeds—To selling stockholders. Underwriter
Co., Seattle, Wash.
&
McDowell)
(Dominick
~
noon
$15,500,000
(Monday)
Bonds
EDT) $19,000,000
Weeks)
Common
225.976
share*
..Common
484,276
Natural
(Bids
11:30
by
Horubiower
shares
(Tuesday)
Gas
Co.-
EDT)
a.m.
Debentures
$25,000,000
June
Dominick)
&
13
(Thursday)
Norfolk & Western Ry.__
(Bids
to
be
Equip. Trust Ctfs.
Invited)
$6,450,000
by
June 18
(Tuesday)
Gulf States Utilities Co
$2,500,000
(Bids
Common
11
Common
EDT)
a.m.
shares
200,000
Public Service Electric & Gas Co._
Preferred
(May be Morgan Stanley & Co.; Drexel & Co.;
International Business Machines Corp
;
Common
and
&
Co.)
1,050,223
shares
(Bids to be Invited)
Interstate Power Co
*
>
(Kidder,
a.m. EDT) $20,000,000
June 24
/ ]
Delaware Power &
——Common
-
(Bids
Peabody & .Co.). 680,000 shares
Magnetic Amplifiers, Inc.—
(D.
A.
Lomasney
Common
& Co.)
Ripley
&
Co.
23
(Bids
(Hugo)
(Bids
Equip. Trust Ctfs.
Air
(Friday)
&
Co.,
St.,
page
38
(Wednesday)
Gas
I
Co
to be invited)
June 28
Inc.;
(Friday)
Common
July 9
(Bids
Service Corp
(Hallgarten & Co.)
Bonds
$35,000,000
(Offering to stockholders—may be underwritten)
(Monday)
Central Vermont Public
Common
to
(Tuesday)
be
/
.
Debentures
invited)
July 10
125,000 shares
217,286 shares
$30,000,000
(Wednesday)
Tampa Electric Co
May 28
(Tuesday)
(Bids
(Bids
Tennessee
11
EDT)
a.m.
Gas
Debenture*
a.m.
EDT)
Transmission
and Halsey,
White, Weld & Co.;
(Bids
-
$6,615,000
stockholders—underwritten by
143,298
Courts
& Co.)
(Offering
invited)
Gas
debs,
and
Equip. Trust Ctfs.
July 31
(Wednesday)
Telephone Co. of Pennsylvania—Debentures
(Bids
to be invited)
September 10
,
(Tuesday)
employees—underwritten by
Duke
58,067 shares
Power
Bonds
Co
be
$50,000,000
invited)
(Friday)
May 31
September 11
(Wednesday)
Common
—
June 3
v
$50,000,000
shares
—Common
and
Bell
(Bids to
underwriting)
900,000 shares
New
Jersey Bell Telephone Co
to be invited)
Debentures
$30,000,000
(Monday)
October
Allied Products of Florida, Inc.—Class
to
about $9,000,000
I.
Common
189,600 com.
Co
White, Weld & Co.)
(Offering
$4,965,000
(Thursday)
(Bids to be invited)
Debentures &
$3,160,000
Co.)
stockholders
to
be
Common
(Offering to stockholders—underwritten by Dominick &
Dominick) 173,970 shares
Intermountain
Equip. Trust Ctfs.
to
Southern Pacific Co
shares
Inc.
&
.Bonds
$15,000,000
(Wednesday)
July 25
Common
Continental Gin Co.__
Weld
EDT)
Great Northern Ry
(Bids
(White,
a.m.
(Wednesday)
May 29
Dorr-Oliver
11
July 17
Equip. Trust Ctfs.
(Bids noon EDT)
to
(Tuesday)
Stuart & Co. Inc.) $50,000,000
Wabash RR.
(Offering
Bonds
about $20,000,000
Jersey Central Power & Light Co
_.Bonds
Co
$18,000,000
invited)
July 16
$15,000,000
(Stone & Webster Securities Corp.;
Bonds
be
(Bids to be invited)
$3,000,000
Gas Co
11:30
to
West Penn Power Co
—Bonds
Community Public Service Co
Government
on
shares
Wisconsin Telephone Co
May 27
stockholders—underwritten
Inc.)
Continued
Common
-
530,712
Tampa Electric Co
Clark, Landstreet &
Kirkpatrick, Inc.; and Minor, Mee & Co.) $350,000
common
Las Vegas,
Bonds
$20,000,000
EDT)
p.m.
California
Common
Hatch
(Tuesday)
invited)
June 26
Common
H%
Bonds
s'yirty
$15,000,000
Corp
3:45
(Bids
Products, Inc
iFrederic
be
$2,550,000
Southern
May 24
to
shares
200,000
(Thursday)
(Bids to be invited)
be invited)
June 25
Stinnes
May
to
Puget Sound Power & Light Co
Preferred
Inc.)
(Monday)
Light Co.———
$292,500
Niagara Mohawk Power Corp
(Ilarriman
Debs.
$70,000,000
Bonds
v:,;/'(Bids 11
/Interstate Power
/-"'C.
Glore, Forgan & Co.) $25,000,000
Southern Bell Telephone & Telegraph Co.
(Offering to stockholders—underwritten by Morgan Stanley
(Bids
Price—At par ($1 per share). Proceeds—For min¬
So. Fourth
10
June 11
$1,150,000
Inc
Bank of Montreal
Underwriter—None.
★ Delaware Pacific Exploration, Inc.
May 1 (letter of notification) 295,000 shares of
ing expenses. Office — 710
Nev. Underwriter—None.
Bond*
EDT)
a.m.
Bearing Co
&
Debentures
(Offering to stockholders—no
stock.
$20,000,000
(Offering to stockholders—may be underwritten
(Wednesday)
Intermountain Gas Co
DeKalb & Ogle Telephone Co.
April 25 (letter of notification) 22,025 shares of common
stock to be offered to stockholders of record May 1, 1957
on the basis of one new share for each seven shares held;
rights to expire June 14, 1957. Price—At par ($10 per
share). Proceeds—For a construction program. Office—
Sycamore, 111.
Goldman,
Debentures
EDT)
(Offering to stockholders—may be negotiated)
.Bonds
'■
Inc
Society,
expenses,
112 W. Elm St.,
by
shares
Portland Gas & Coke Co.
ate
Herrin
..Common
51,000
(Thursday)
noon
(Bids
Common
Grolier Society,
working capital and other corpor¬
purposes.
Office—83 Campfield St., Irvington, N. J.
Underwriter—Roth & Co., Maplewood, N. J.
prospecting
Co.)
Stanley
Debentures
(Bids
March 15
Corp.;
Blyth & Co., Inc.
and Merrill Lynch, Pierce, Fenner & Beane) 396,079t shares
National Fuel
Cougar Mine Development Corp.
mon
&
June
debentures
Price—Of stock, $15 per share;
and of debentures at face amount.
Proceeds—For con¬
purposes
Blosser
stockholders—Underwritten
for each 100 shares held.
struction
Morgan
609,815 shares
Debentures
Quinta Corp.
12 (letter of notification) 11,400 shares of capital
(par $5) and $125,000 of 20-year 5% subordinate
debentures dated March 31, 1957 to be offered in denom¬
inations of $100 to present stockholders, officers and
employees of the corporation at rate of 3/10ths of a share
each share
and
Co.
Metropolitan Edison Co
Paine,
(Offering to stockholders—underwritten by Reynolds & Co.;
& Co.; and Laurence M.
Marks & Co.) 170,160 shares
Turpentine & Rosin Corp.
for
\
Common
&
underwriters)
(Bids 11
Drexel
stock
stock
$70,000,000
.
Reading Co.
March
new
Bonds
shares
Steel Co
(Offering
RR
shares
_
Invited)
as
(Bids
Common
|
191,660
.
.
Bonds
System, Inc.
Debentures
Co.)
;f
Georgia Power Co
154,648
Co
Continental Mines & Metals Corp., Paterson, N.J.
April 24 filed 400,000 shares of common stock (par 10
cents). Price—$1 per share. Proceeds—For exploration
of
Gas
Common
shares
Beane)
1,000,000 shares
stockholders—underwritten
to
Common
&
Belt
act
y
*
invited) $20,000,000
June 6
Columbia
—
to be
Sachs
(Blyth & Co., Inc. and Merrill Lynch, Pierce, Fenner &
Beane) $22,000,000
one
Co., Atlanta, Ga.
Continental
(Offering
$5,000,000
230,000
Fenner
May 22
Lehman
—
held; rights to expire on or about
June 20. Price—$30 per share. Proceeds—For expansion
program and machinery and equipment. Underwriter—
properties.
Boston, Mass.
to
Consolidated
-
May 29, 1957 at the rate of
M. Lister & Co.,
Debentures
"■
•;•••
Commas
Vanadium-Alloys Steel Co
Debentures
Brothers)
Co.)
'
.
•*"
Co.,
and development of
Co.
&
Co.)
&
V
(Wednesday)
stockholders—Drexel
to
(Tuesday)
(Dominick & Dominick) 318,000 shares
for each share
Courts &
1
Philadelphia Electric Co
(Offering
Telephone Co
(Straus,
(5/21)
subscription by
Witter
Dean
(Bids noon CDT) $8,125,000
t
Co
(Bids
Grolier
Birmingham, Ala. 5/27-31)
April 30 filed 143,298 shares of common stock (no par),
to
Preferred
^
$30,000,000
Noyes &
Pierce,
Supercrete, Ltd.
.
•
Indiana Harbor
■
■
Bonds
Timken Roller
New York
April 29 filed 230,000 shares of common stock (par $1.25).
Price—To be supplied by amendment. Proceeds—To help
Brothers, New York.
$250,000
Shipbuilding Corp.
(A.
Probable
17, N. Y,; and Shaw & Co., San Marino, Calif.
expanding operations.
Co.)
(Offering to common stockholders — underwritten by
Webber, Jackson & Curtis; Stone & Webster Securities
and Mitchum, Jones & Templeton) $46,000,000
—
finance
&
General Telephone Corp
Corp., Chicago, III.
March 13 filed 558,100 shares of class A common stock
(par $1). Price—$5 per share. Proceeds — To discharge
current notes payable, including bank loans, and long
term debt in the total sum of approximately $1,030,000;
for new equipment; and for working capital.
Under¬
writers
Allen Shaw & Co., 405 Lexington Ave., New
Lines, Inc.
and
EDT)
a.m.
(Bids
Inc
(Hemphill,
International
Continental Air
Corp.
Bonds
$10,000,000
Co.___
General Telephone Co. of California
shares
Continental Air Lines, Inc.
Halsey, Stuart & Co. Inc.; White, Weld & Co.
Paine, Webber, Jackson & Curtis (jointly); Morgan,
Stanley & Co. and the First Boston Corp. (jointly). Bids
—To be received at Room 3000, 30 Rockefeller Plaza,
New York 20, N. Y., up to 11:30 a.m. (EDT) on June 11.
•
Common
,
250,000
Greenwald
Colonial Stores,
con¬
bidders:
York
(Wis.)
CDT)
Edison
June 5
Common
and
Conticca
a.m.
First Boston
(Bids 11
(Paine, Webber, Jackson & Curtis and Blair & Co.
Incorporated) $7,917,000
(6/11)
by competitive bidding.
10
(The
Co., Inc.) $300,000
underwriting)
May 21
May 9 filed $25,000,000 of debentures due June 1, 1982.
Proceeds—For 1957 construction program. Underwriter
be
(Bids
California
Common
&
Coastal States Gas Producing Co
Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Salomon Bros. & Hutzler; Blair & Co. In¬
corporated. Bids—To be received up to 11 a.m. (EDT)
on May 28 at 90 Broad Street. New York, N. Y.
—To
Randall
(Bids
struction program.
* Consolidated Natural Gas Co.
Common
100,000 shares
Virginia Electric & Power Co
Public Service Co. of Colorado
New York.
Proceeds—To refund bank loans and for
$25,000,000
Co
Southern
(Monday)
Corp.
•'
Community Public Service Co. (5/28)
April 25 filed $3,000,000 first mortgage bonds, series E,
due 1987.
EDT)
Northern States Power Co.
Common
Fund
(No
Underwriter—
agreement.
Arts, Inc.
Lake Lauzon Mines, Ltd
Memphis, Tenn.
<
May 2 filed 750,000 shares of common stock. Price—$2
per share. Proceeds—To construct mill; for payment on
royalty
Bonds
noon
1,200,000 shares
Comico Corp.,
and
$2,400,000
(Hemphill, Noyes & Co. and Parrish & Co.)
Common
shares
May 20
Beach, Calif. Underwriter—Samuel B. Franklin
Co., Los Angeles, Calif. Offering—Postponed.
leases
Equip. Trust Ctfs.
EDT)
noon
(Bids
(Reilly, Hoffman & Sweeney, Inc.) $300,000
dondo
mining
(Tuesday)
Boston Edison Co
Moore Products
(Friday)
12,060
($1 per share). Proceeds—For oil
Office—1848 South Elena Ave., Re-
expenses.
Bonds
EDT) $8,000,000
a.m.
(Offering to stockholders—underwritten by Goodbody & Co.
Paul Hesse 3-D
Price—At par
drilling
(Bids
Co
May 17
6.,/'J:';',^^--v; '..
Comanche Creek
June 4
Alabama Great Southern RR
$6,420,000
American Fire & Casualty Co
March 14 (letter of notification) 75,000 shares of common
stock.
Light
CALENDAR
'
__Equip. Trust Ctfs.
EDT)
noon
(Bids 11:30
Columbia Gas
ISSUE
(Thursday)
Northern Pacific Ry
Underwriter—Landau Co., New York.
York, N. Y.
HEW
/
Feb. 25
37
130,000
Atwill
&
Co.,
shares
Employees Corp.
(Johnston, Lemon &
by
Co.)
1
(Tuesday)
A Common
(Bids
Debentures
about $500,000
Bonds
Utah Power & Light Co
to
be
invited)
$15,000,000
Common
Utah Power & Light Co
(Bids
to
be
invited)
400,000 shares
The Commercial and Financial Chronicle
38
Corp. (jointly); Kuhn, Loeb & Co., Lehman Brothers
Glore, Forgan & Co. (jointly). Bids —Had been
scheduled to be received up to 3:45 p.m. (EDT) on May
stock.
ton
Corp.
May 8 (letter of notification) 250,000 shares of class A
stock (par 10 cents).
Price—$1 per share. Proceeds—
For working capital.
Business — Electronic equipment.
Office—35-10 36th Ave., Long Island City, N. Y. Under¬
• Digitronics
writer—None.
Inc.
Dorr-Oliver,
(5/29)
May 7 filed 173,970 shares of common stock (par
to be offered for subscription by stockholders of
$7.50)
record
May 29, 1957 on the basis of one share for each six com¬
shares held and one share for each three preferred
mon
supplied
be
by
Underwriter—Dominick
purposes.
York.
Price—To
corporate
& Dominick, New
expire on June 12, 1957.
amendment. Proceeds—For
shares held; rights to
Broadcasting Corp., New York
capital stock (par $1),
of which 314,812 shares are being offered for subscrip¬
tion by stockholders at the rate of one new share for
shares held on May 10; rights to expire on
(Paramount Pictures Corp. has agreed to pur¬
chase 83,800 Du Mont shares to which it is entitled to
subscribe.)
Of the remaining 281,889 shares^ 270,147
shares, together with $2,932,087.25 cash, were used to
purchase all the common stock of WNEW Broadcasting,
Inc. and 11,742 shares were issued to discharge certain
of WNEW's liabilities. Price—$7 per share. Proceeds—
To pay a portion of the cash requirements under the
agreement to purchase WNEW. Underwriters—Kuhn,
Loeb & Co. and Carl M. Loeb, Rhoades & Co., both of
New York, for 231,012 shares. 1
tnree
May 27.
Electric Co.
Paso
April 16 filed 119,522 shares of common stock (par $5)
being offered for subscription by common stockholders
of record May 6, 1957 on the basis of one new share for
oversubscription privilege);
May 21, 1957. Price—$22 per share.
held (with
each 15 shaves
rights to expire on
an
construction pro¬
Stone & Webster Securities
'
Proceeds—To retire bank loans and for
Dealer
gram.
-
Manager
—
Corp., New York.
Engeiberg Huller Co., Inc.
May 6 (letter of notification) 4,084 shares of common
stock (par $10) to be offered for subscription by stock¬
holders of record May 15, 1957 on a 3-for-10 basis; rights
to
expire June 15.
Proceeds—For
Office—831 West Fa¬
Price—$25 per share.
expansion of belt grinder division.
Underwriter—None.
yette St., Syracuse, N. Y.
Esk Manufacturing,
Inc.
Thursday, May 16, 1957
.
10th
West
St., Wilmington 99, Del. Underwriter—
Co., Metairie, La. and Salt
Ackerson Hackett Investment
Lake
D.
City, Utah.
,
preference stock, to be offered in units of $500 of deben¬
tures and 40 warrants. Price—$500 per unit. Proceeds—
expansion and working capital. Underwriter—None
Offering to be made through selected dealers.
For
named.
Application is still pending with SEC.
General Telephone Co. of California
(6/5)
April 29 (letter of notification) 12,640 shares of common
stock (par $5) and $100,000 of convertible 6% deben¬
tures due 1967 of which 7,000 shares of common stock
1, 1987. Proceeds—To repay bank loans and for
be determined
Underwriter—To
program.
by competitive bidding. Probable bidders: Halsey, Stuart
Co. Inc.; Paine,
Webber, Jackson & Curtis and Stone
Securities Corp. (jointly); White, Weld &
Webster
&
Kidder, Peabody &
and
Co.
Co.
(jointly).
$1), of which 2,500,000 shares are to be offered publicly
at $4 per share prior to Nov. 30, 1957, each purchaser of
one
share to receive an option to purchase two addi¬
For investment in and temporary
advances to telephone
subsidiaries and for general corporate purposes.
writers—Paine, Webber/Jackson & Curtis and Stone &
Corp., both of New York; and Mitchum, Jones & Templeton, of Los Angeles, Calif.
Co., Cleveland, O.
(5/21)
—
York.j
1, 1987. Proceeds — For construction program and for
purchase of shares of capital stock of Southern Electric
Generating Co.
Underwriter — To be determined by
Probable bidders: Halsey, Stuart &
competitive bidding.
Co. Inc.;
Morgan Stanley & Co.; Blyth & Co., Inc.; Kid¬
der, Peabody & Co. and Shields & Co. (jointly); Equit¬
able Securities Corp. and Eastman Dillon, Union Securi¬
ties & Co. (jointly); Harriman,
Ripley & Co. Inc. Bids—
Tentatively expected to be received up to 11 a.m. (EDT)
on June 6 at office of Southern
Services, Inc., Room 1600,
250 Park Ave., New York 17, N. Y.
on June 3. Price—$51 per share.
Pro¬
For construction program. Underwriters — Kid¬
der, Peabody & Co. and Merrill Lynch, Pierce, Fenner
& Beane, both of New York.
the
4
filed
Pompano Beach, Fla.
850
certificates
of
beneficial
interest
in
Trust.
Price—$1,000 per certificate. Proceeds—To
acquire by purchase, lease or otherwise, and to hold,
own, subdivide, lease, mortgage, exchange, bargain, sell
and convey lands and every character of real property.
Underwriter—N one.
Shops of America, Inc.
& Film
Grolier
April
Society, Inc.
filed
26
debentures
stock.
ofiers
The
a
Dorn
will
expire in
Underwriter—None. State¬
days from April 26.
effective
ment
April 24.
Holy Land Import Corp., Houston, Texas /
(letter of notification) 100,000 shares of common
stock. Price—At par ($3 per share). Proceeds—For in¬
Feb. 27
ventory, working capital,
& Co., Houston, Tex.
etc.
Underwriter—Benjamin
;
•
,
★ Houdaifile Industries, Inc., Buffalo, N. Y.
May 8 filed 50,000 shares of common stock (par $3) to be
offered for sale under the
Purchase Plan
Stock
and its subsidiaries.
to
company's Salaried Employees'
eligible employees of company
,
Intermountain
Gas
Co.
Underwriter
(5/29)
May 6 filed $3,160,000 of 6% subordinate debentures due
1982
and
189,600 shares of
common
stock (par $1) to be
and six shares of
offered in units of $100 of debentures
which
stock
will
be
not
separately transferable for
ap¬
proximately three months from date of issue. Price—To
be supplied
Proceeds—For construction
Underwriter—White, Weld & Co., New York.
by amendment.
Gas
Co.
(5/29)
May 6 filed 58,067 shares of common stock
(par $1), of
which
45,150 shares are to be offered for subscription
by common stockholders of record May 24, 1957, on the
basis of one share for each six shares held; rights to
expire
The remaining 12,917 shares are to
Price—To be sup¬
June 12.
on
be offered
to
employees and others.
plied by amendment. Proceeds — For construction
gram. Underwriter—White, Weld & Co., New York.
International Bank of Washington, D.
pro¬
C.
Sept. 28 filed $1,000,000 of time certificates, series B, C
and D. Price—At 100% of principal amount. Proceeds—
working capital.
Underwriter—Johnston, Lemon &
Co., Washington, D. C.
International Capital Corp.,
(5/22)
$2,500,000
due
amendment.
•
of
May 1, 1967.
convertible
subordinated
Price—To be supplied by
Proceeds—For working
capital to be used
Society, Inc.
Corp., New York
which
300,000
and
finance
capital.
to
be
sold
for
account
of
sales
contracts
receivable
Underwriter—Dominick
&
and
for
Dominick,
York.
29
filed
Loan
Co.,
Equity Corp.
on
a
share of Financial
cial
porate purposes. Office—162 Remsen St., Brooklyn, N. Y.
Underwriter—None.
stock.
185,000 shares
stock in
common
Equity and Finan¬
each of Interna¬
exchange for all the outstand¬
common
the
receive
to
are
tional
ing shares of common stock of Investors Financial Corp.
and Group Equities, Inc.
that
shares of
142,000
International has been informed
Equity
common
owned
by
Fre¬
Corp. will be tendered in acceptance of the Equity
mont
Underwriter—None.
Duplex Corp., San Francisco, Calif.
International
(letter of notification) $300,000 of 10-year 7%
subordinated capital notes due May 1, 1967.
Price—At
par. Proceeds—For expansion of business and other cor¬
share-for-share basis in exchange for
Equity Corp. common stock, and the remaining 135,000
shares by Financial General Corp. on a basis of 1%
shares of International common stock in exchange for
Inc.
April 10
Des Moines, Iowa
shares of common svck (par 10
cents), of which 185,000 shares are to be offeiod by The
370,000
exchange offer.
Guardian
stock (par one
Proceeds—To equip and
establish five super launderettes and for working can,tal.
Underwriters—Names to be supplied by amend¬
Dec.
21
:ent).
filed
500,000 shares
Price—SI
ment.
per
-
.
.
International
(England)
of common
share.
-
.
;
Fidelity Insurance Co., Dallas, Tex.
80,000 American depositary receipts for
ordinary shares. Depositary — Guaranty Trust Co., of
March 28 filed 100,000 shares of common stock
New York.
rate of
filed
9
April
(letter
26
common
pursuant
share.
of
$250,000
aggregate
and/
(no par) to be offered to employees
plan for reorganization. Price—$100 per
Office—1917
W.
one
for
new
subscriotion
by
(no par)
stockholders at the
share for each seven shares held.
Price
ing capital,
notification)
cumulative preferred stock (no par)
a
offered
by amendment.. Proceeds—For work¬
Underwriter—Franklin Securities Co.,
Maryland, Evansville, Ind.
Un¬
derwriter—None.
etc.
Dallas, Texas.
Interstate Fire & Casualty Co.
stock
to
be
to
—To be supplied
Hancock-Trucking, Inc.
March 29
fered
shares of common stock to be of¬
for subscription by common stockholders of record
April 1, 1957,
per
April 30 (letter of notification) 6,105 shares of
common
stock
(Ell.)
filed 20,000
on
five shares held;
★ Hartford Special Machinery Co.
the basis of two new shares for each
rights expire on June 10. Price — $21
share. Proceeds—For working capital. Underwriter
May
to
be
offered
stockholders
to
of
record
24,
1957 on the basis of one new share for each
eight shares
held; rights to expire June 21, 1957. Price—At par ($20
per share).
Proceeds—For construction and equipment
and
installation of
incentive wage plan.
an
Homestead Ave., Hartford, Conn.
Office—287
Underwriter—None.
,—None.
Interstate Power Co.
25
Price—To
shares of 50-cent convertible pre¬
ferred stock, series A (par $5) and
2,476,116 shares of
stock
(par 60 cents), of which all of the pre¬
ferred and 763,011.3 shares of common stock are
being
offered
in
exchange
common
share
for
stock
each
Underwriter—To be determined by competitive bidding
preferred stock
Probable bidders: Blyth & Co., Inc., and The
for each of the
of
for
on
the
and
Mount
the
Vernon
basis of
one
Co. preferred
Holly series A
406,638 shares of Mount Vernon
2%
be
shares
of Holly
common
305,204.52 shares of Mount Vernon
stock
corn-
— For
Underwriter—Kidder, Peabody &
supplied by amendment. Proceeds
construction program.
Co., New York.
Interstate
filed 406,638
(5/22)
April 19 filed 680,000 shares of common stock (par $3.50).
Holly Corp., New York
Jan.
and
First Bos¬
are
(par $1),
shares for a selling stockholder.
supplied by amendment. Proceeds — To
instalment
working
New
shares
Nov.
one
stock
common
18,000
To be
—
and
(no par)
1,537,500 shares of common B stock (par $1). Pro¬
ceeds—To the Attorney Geenral of the United States.
(5/22)
April 26 filed 318,000 shares of
of
receiv¬
Underwriter—Dominick & Dominick, New York.
Grolier
Jan. 14 filed 426,988 shares of common A stock
exchange for 64,696 shares of Van
common
—
common
General Aniline
in
(letter of notification) 240,000 shares of common
V International Business Machines Corp.
(5/22)
stock (par 30 cents) of which 86,610 shares are being
sold pursuant to outstanding warrants. Price—$1.25 per •|f May 1 filed 1,050,223 shares of capital stock (no par)
share.
Proceeds
For Additional discount department ji-f to be offered for subscription by stockholders of record
May 21, 1957 on the basis of one new share for each 10
store operation; to increase the number of stores; and
shares held; rights to expire on June 10, 1957.
Price—
for working capital. Office—41 Stukely St., Providence,
To be supplied by amendment. Proceeds — For working
R. I. Underwriter—Bruns, Nordeman & Co., New York,
capital. Underwriter—Morgan Stanley & Co., New York.
N. Y.
or
Corp.
rights to expire
Florida Trust,
about 30
For
Gob
amount of 5%
April 19 filed 255,813 shares of common stock (par $7.50)
to be offered for subscription by common stockholders of
record May 14, 1957 on the basis of one share for each
10-shares held
(with an oversubscription privilege);
March
a
are
to be reserved for possible issuance at
are
date
Works
Intermountain
May 10 filed $15,500,000 first mortgage bonds due June
May
selling stockholders. Business—Operator of chain of 93
yetail food stores. Underwriter — Merrill Lynch, Pierce,
—
future
Iron
program.
Hadfields, Ltd.
May 1 filed 154,648 shares of common stock (par $2.50).
Price
To be supplied by amendment. Proceeds — To
ceeds
388,176
ing
(6/6)
Power Co.
ir Georgia
Underwriter—None.
Power
Under¬
Webster Securities
time prior to Nov. 30, 1959 at $4.50
The price of the remaining 2,500,000 shares
will be $5 each, of which 500,000 shares are to be re¬
served for exercise of options to be granted to directors,
officers and employees.
Proceeds — For industrial and
business
development of Mississippi and the South.
share.
Florida
on
finders, 60,000 shares to certain ven¬
1,016,595 shares will be reserved
ies, etc. Office—525 Broadway, New York;
Price
April 10 filed 10,000,000 shares of common stock (par
i/enner & Beane, New
35,000
shares
—None.
company
Mississippi Corp., Jackson, Miss.
Brothers
common
1977, to be offered for subscription by common stock¬
holders of record May 16, 1957 on the basis of $100 of
debentures for each 30 shares of common stock held;
rights to expire on June 10. Price—At par. Proceeds—
able.
stock and debentures are reserved for
rescission offer, etc. Price—$1,000 per unit. Proceeds—To
buy equipment and for general corporate purposes. Un¬
derwriter—Whitney & Co., Inc., Washington, D. C.
common
Fisher
certain
property;
Holly
common
of
stock
Insulation, Inc.
>
May 10(letter of notification),$50,003 guaranteed secured
20-year bonds. Price—At par. Proceeds—For inventor¬
(5/21)
of
debentures are to be offered in units of $500
debentures and 50 shares of commen stock; the re¬
per
38,333
April 26 filed $46,000,000 of convertible debentures due
and $70,000
tional shares at any
of
basis;
Holly
holders
common
Infra
General Telephone Corp., New York
I
certain
to
Bids—Ex¬
pected to be received on June 5.
in general to finance installment sales contracts
First
*
May 3 filed $20,000,000 of first mortgage bonds, series K,
&
remainder, 210,000
offered
against conversion of preferred stock; and the remain¬
Aug. 17, 1956 filed $2,000,000 of 6% subordinated sink¬
ing fund debentures, due Sept. 1, 1971, with detachaDle
warrants to
purchase 160,000 shares of parcicioating
•
^Famous Virginia Foods Corp., Lynchburg, Va.
maining
six-for-one
dors
Credit, Inc., Washington, D. C.
Genera!
the
shares of Van Dorn Iron Works Co.
offered to
C., but bidding has been postponed.
Of
being
are
>
(letter of notification) 150,000 shares of capital
stock (par $1). Price — $2 per share. Proceeds — For
manufacture and sale of molded plastic items. Office—
•
.
Jan. 21
Feb. 8
100
654, 101 Indiana Ave., N. W., Washington 25,
13 at Room
construction
April 18 filed 596,701 shares of
El
shares
due June
Du Mont
each
mon
and
37
Continued from page
•
.
(2310)
April
19
filed
Power
Co.
$20,000,000
(5/22)
of first mortgage bonds
due
Proceeds—For purchase of certain proper¬
& Light Co.; to redeem $1,585,000 first mortgage bonds of Northwestern Illinois
Gas & Electric Co.; to repay bank loans; and for addi¬
tions and improvements to properties. Underwriter—To
May 1, 1987.
ties
of Kansas City Power
be determined
by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Merrill Lynch, Pierce, Fenner
Beane and Kidder, Peabody & Co. (jointly); White,
&
Volume
Number 5638
185
.
.
The Commercial and Financial Chronicle
.
(2311)
Weld & Co.: Salomon Bros. &
Hutzler; Smith, Barney &
Bids—Expected to be received up to 11 a.m; (EDT)
May 22 at The Chase Manhattan Bank, 40 Wall St.,
New \ork 15, N. Y.
'
'V
Midland Telephone Co.
Co.
mon
n?;
;
v
New York Telephone Co.
(5/21)
April 26 filed $70,000,000 of refunding
mortgage bonds,
series J, due May
15, 1991.
Proceeds — Together with
proceeds from sale of 1,400,000 shares of
$100 par com¬
March 13
on
Variable Payment Fund,
offered
Manager
—
Investors
Diversified
Minneapolis, Minn., which will also act
Israel
Industrial
American
Services,- Inc.,
distributor.
Development
Bank,
—None.
6% debenture stock.
110% of par. Proceeds—To be converted into
pounds and will be used as working capital to
the medium and long-term credits to enterprises
in Israel.
Office—Tel
-
•
*
six
-
stock to American
Telephone & Telegraph Co.,
parent, to retire bank loans. Underwriter—To be deter¬
mined by competitive
bidding. Probable bidders: Halsey,
Stuart & Co. Inc.; Morgan
Stanley & Co. Bids—Sched¬
mon
uled to be received up
V.
;
Niagara Mohawk Power Corp. (5/22)
26 filed 200,000 shares of cumulative
preferred
stock (par $100). Price—To be
supplied by amendment.
J?,:,vi./'v:
April
notification) $190,000 of 7% regis¬
tered debenture bonds due
and accrued
interest.
May 1, 1967.
Proceeds—To reimburse the
company's treasury and to
finance in part the company's construction
program. Un¬
derwriter—Harriman Ripley & Co.
Price—At 100%
Proceeds—For expansion of
serv¬
Inc., New York.
ice
area and working capital.
Office—2 King St., Middletown, N. Y. Underwriter — Frazee, Olifiers & Co.,
/
Northern States Power Co.
(Wis.) (6/4)
May 2 filed $10,000,000 of first mortgage bonds due June
1, 1987. Proceeds—To repay $5,750,000 bank loans and
$1,000,000 advanced by parent, Northern States Power
Co. (Minn.) and for construction
program. Underwriter
New York.
Janaf, Inc., Washington, D. C.
April 23 filed $10,000,000 of 5Vz%-8% variable interest
Mississippi Valley Portland Cement Co.
Dec. 26 filed 1,600,000 shares of
capital stock (no
which 708,511 shares are subject to an offer of
e
♦
sinking fund debentures and 400,000 shares of common
stock (par 20 cents) to be offered in units consisting Of
$1,000 of debentures and 40 shares of stock. Price—$1,008
per unit.
Proceeds — To be loaned to subsidiaries and
used by them as working capital.
Of total, $5,000,000
will be advanced to Janaf Shopping Center, Inc. for its
shopping center near Norfolk, Va., and $500,000 to pay
"second deed of trust on the shopping center land and
par), of
rescission.
—To
be made
stock.
Price—At
capital
($1
par
expenditures,
Fenner
own agents.
Monticello Associates, Inc.
Feb. 18 (letter of notification)
300,000 shares of
leases; $600,000 to Janaf Motor Hotels, Inc., for its Ad¬
miralty motor hotel adjacent to the shopping center;
$200,000 to Janaf Homes, Inc.; $2,050,000 for acquisition
of land and/or new development (new ventures); $750,000 to retire present preferred shares; and $100,000 for
expenses. Underwriter—Name to be supplied by amend¬
bidders:
Underwriter—None, offering to
through company's
per
share).
including
construction
—
For
of
(letter of notification) 7,200 shares of common
(par $5) to be offered first to stockholders on
preemptive basis; unsubscribed to
employees; and
remainder to public.
Price—$16 per share. Proceeds—
stock
a
Philadelphia, Pa.
For
Juneau & Douglas
Jan.
24
Telephone Co.
(letter of notification) $295,000 of 6%
debentures due
1972.
Price
nominations
$1,000
each).
and
of
—
At face amount
Proceeds
—
Co., Philadelphia, Pa.
—
For additions
writers—Hemphill, Noyes & Co. and Parrish
Moore
Wasn.
Products
officers
March 18 tiled 750,000 shares of common stock
Price—40
penses,
cents
Proceeds—For
Underwriter—Steven Randall & Co., Inc., New
York.
1
*
Magnetic Amplifiers, Inc. (5/22)
29 (letter of notification) 90,U00
stock / (par
Proceeds—To
3
•
April
mon
(par $1;.
drilling ex¬
equipment, working capital and other corporate
purposes.
•
share.
per
cents).
$50,000
50
retire
Price
bank
shares
of
Marion
28
Finance
?'*
—T.
market.
Price—$6.50
National
,
i
(EDT)
on
May 28.
Lithium
April
15
Inc.
convertible
filed
debentures due
$7,500,000 of
subordinated
May 1, 1967. Price—To be supplied by
amendment. Proceeds—For reduction of short-term
working
capital
writer—Bache &
Weld
olans to issue and sell $30,000,000 of bonds late in
Nassau
National Telefilm Associates,
14 filed
,
debt,
Under¬
purposes.
Co., New York.
(Province
1, 1982.
Proceeds—To
Electric
corporate
change at Turner from
exchange.
J
None.
a
manual service to
Office—Buckfield, Me.
dial
a
auto¬
Underwriter—
r
r
Pacific
.
Northern Airlines, Inc.
(letter of notification) an undetermined number
of shares Of common stock
(par $1). Proceeds—To go to
a
selling stockholder.
Office
1626 Exchange Bldg.,
May 3
4,
Wash.
Underwriter
Walston
—
&
Co., Inc.,
Seattle, Wash.
•
Paul
Hesse 3-D
March 28
mon
stock
Arts, Inc. (5/17)
(letter of notification) 300,000 shares of com¬
(par 10 cents). Price—$1 per share. Proceeds
—For
machinery, equipment and working capital. Office
Brookline Blvd., Pittsburgh, Pa. Underwriter—
Reilly, Hoffman & Sweeney, Inc., New York.
—1250
Pepsi-Cola Mokan Bottlers, Inc.
April 11 (letter of notification) 60,000 shares of common
stock (par 50 cents).
Price—$5 per share. Proceeds—
For general funds of the
company.
Office—207 West
8th St., Coffeyville, Kan.
& Co., St. Louis, Mo.
Underwriter
G.
—
F. Church
ic Philadelphia Electric Co. (6/5)
May 14 filed 609,815 shares of common stock
to
offered
be
for
of record June
each 20
subscription by
common
4, 1957 at the rate of
one
(no par)
stockholders
new
share for
shares
held; rights to expire on June 25. Price
supplied by amendment. Proceeds—To repay
bank loans and for construction
program.
Underwriters
—Drexel & Co.,
Philadelphia, Pa., and Morgan Stanley
& Co., New York.
—To
be
Plymouth Fund, Inc., Miami, Fla.
5 filed 500,000 shares of capital
Feb.
Price—At
writer
market.
Proceeds—For
Plymouth Bond
&
stock
(par
investment.
$1).
Under¬
Share
Corp., Miami, Fla.
Joseph A. Rayvis, also of Miami, is President.
—
Power
advanced
Commission
to
to
The
New
repay
Bruns¬
bank loans.
Underwriter—Halsey, Stuart & Co. Inc., New York and
Chicago. Offering—Indefinitely postponed.
New
Dec.
3
being
Gas
&
England Electric System
819,000 shares of common stock
offered in exchange for capital stock
filed
Electric
for each
Co.
on
the
basis
of
two
Lynn share.
(par $1)
of Lynn
NEES
shares
This offer will expire on May 29.
Dealer-Managers—Paine, Webber, Jackson & Curtis and
F. S.
S.
C., is President and Board Chairman.
Public Service Co. of Colorado
1987.
of)
Price—To be supplied by amend¬
be
Prudential Investment Corp. of South Carolina
April 30 filed 209,612 shares of common stock. Price—
$1.20 per share. Proceeds — For general corporate pur¬
poses.
Underwriter — None. J. C. Todd of Columbia,
April
$12,000,000 of 25-year sinking fund deben¬
tures due Jan.
ment.
other
and
Brunswick
New
Dec.
wick
June.
basis
—
Indefinite.
com¬
Michigan Wisconsin Pipe Line Co.
July 2, 1956 filed $25,000,000 of first mortgage pipe line
bonds due 1976.
Proceeds—To pay off short term bank
loans and for construction program. Underwriter—To be
determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; The First Boston Corp.;
Blyth & Co., Inc.
Bids—Three bids were received on
Aug. 1„ all for 4%s, but v/ere turned down. Company
Office—10
Corp., New York
Feb. 19 filed 3,120,000 shares of common stock (par one
cent). Price—$1.25 per share.
Proceeds—For acquisi¬
tion of properties; for ore testing program; for assess¬
ment work on the Yellowknife properties; and for cost
of a concentration plant, mining equipment, etc. Under¬
writer—Gearhart & Otis, Inc., New York.
Offering—
& Co.; Blyth & Co., Inc.; Kidder,
Peabody & Co. and Drexel & Co. (jointly); The First
Boston Corp. Bids—Expected to be received up to noon
(EDT) on June 10 at offices of General Public Utilities
Corp., 67 Broad St., New York, N. Y.
White,
investment.
be received up to 11:30 a.m.
petitive bidding. Probable bidders: Halsey, Stuart & Co.
Inc.;
Proceeds—For
Dillon, Union Securities & Co.; White, Weld & Co.; HarRipley & Co. Inc. Bids—Tentatively scheduled to
Metropolitan Edison Co. (6/10)
April 30 filed $19,000,000 of first mortgage bonds due
1987.
Proceeds—To repay bank loans and for construc¬
Underwriter—To be determined by
the
on
—
riman
Corp.
April 18 (letter of notification) 10,000 shares of common
stock. Price—At par ($10 per share). Proceeds—For ac¬
quisition of production machinery and equipment; pur¬
chase of materials and tooling; advertising; patent ex¬
penses and working
capital. Office—560 Mills Tower
Building, San Francisco, Calif. Underwriter—Financial
Investors, Inc., Sacramento, Calif.
par
Seattle
Underwriter—To be deter¬
mined by competitive bidding. Probable bidders: Halsey,
Stuart & Co. Inc.; The First Boston Corp.; Eastman
(Claude)
program.
St.,
sion program of subsidiaries.
per
Wichita, Kan.
tion
West Broad
National Fuel Gas Co.
(5/28)
April 4 filed $15,000,000 of sinking fund debentures due
1982. Proceeds—Together with bank loans, to be used to
repay bank loans of certain subsidiaries and for expan¬
Kansas, Inc.; Ranson & Co., Inc., and Brooks & Co., all
McFaul
5001
—
St., Princeton, N. J.
For working
of
Office
• Nassau
Fund, Princeton, N. J. (5/20-24)
May 8 filed 250,000 shares of common stock. Price—At
Price—At
shares of com¬
share. Proceeds—
capital. Office—1501 East Douglas, Wichita
7, Kan.
Underwriters — Small-Milburn Co., Inc.; MidContinent Securities Co., Inc.; First Securities Co. of
(par $5).
Coleman Andrews.
Minerals, Inc.
(letter of notification) 150,000 shares of com¬
mon stock
(par $1). Price—$2 per share. Proceeds—For
purchase of royalty and working interests. Office—1518
Walnut St., Philadelphia 2, Pa. Underwriter—Walter S.
Sachs & Co., Inc., Philadelphia, Pa.
McCormick Armstrong Co., Inc.
March 21 (letter of notification) 31,940
stock
At
present stockholders
rights, thereafter to the public.
Price—
($5 per share).
Proceeds
For converting ex¬
filed
19
April 22
—
mon
stock to be offered to
of preemptive
matic
Inc., Washington, D. C.
note certificates.
Oxford County Telephone &
Telegraph Co.
April 18 (letter of notification) 6,000 snares ot common
Co., New York.
Mutual
(in denominations of $250 each). Proceeds—For in¬
vestment. Underwriter
None.
Offering to be made
through officers and employees of this company and
of its affiliate, Mason Mortgage & Investment Corp.
Statement effective May 6.
and
Ripley
Co., Inc. and Stone & Webster Securities Corp. (joint¬
ly); Lehman Brothers. Bids—The two received up to 11
a.m.
(EST) on Oct. 30 were rejected.
Tru%t for Profit Sharing-
Richmond, Va.
par
-
Investment
liabilities
&
to be offered trustees of
May 1, 1972. Price—At par (in units of $100 and
'$500 each). Proceeds—For working capital. Office—17;
W. Lancaster Ave., Ardmore, Pa. Underwriters—Walnut
Securities Corp., Philadelphia, Pa.; B. Ray Robbins Co.,
New York; and Berry & Co., Plainfield, N. J.
Feb. 8 filed Sl,000,u00 of 8%
Sponsor—Ira Haupt &
Plans, Inc., Richmond, Va.
50,000 shares of capital stock (par $1),
profit sharing retirement plans.
Price—At market. Proceeds—For investment. President
March
filed
Mason Mortgage Fund,
certain
Retirement
mand
•
stock
common
by
company.
Mutual
$250,000 of 6% renewable subordinated;
debentures, due upon demand May 1, 1967, without de¬
,
of
subscription
—For investment.
—
$3.25 per share.
loan and for general
Corp., Ardmore, Pa.
for
• Municipal Investment Trust Fund, Inc. (N. Y.)
May 9 filed 5,000 units, series A, in this Fund. Proceeds
com¬
corporate purposes. Office—632 Tinton Avenue, Bronx,
New York 55, N. Y.
Underwriter — D. A. Lomasney &
Co., New York.
March
offered
current
writer—To be determined
by competitive bidding. Prob¬
able bidders: The First Boston
Corp.; Blyth & Co., Inc.;
Kuhn Loeb &
Co.; Eastman Dillon, Union Securities & Co.
and Salomon Bros. & Hutzler
(jointly); Harriman
(par $1) to
employees and
Of the total, 27,216 shares are to
be offered to retire 972
outstanding class B common
shares held by employees, and 13,988 shares offered for
cash. Price—$10 per share. Proceeds—For
general cor¬
porate purposes. Underwriter—None.
be
of
Ohio Power Co.
Co., Philadelphia, Pa.
April 30 filed 41,204 shares of
Toronto, Can. (5/20-24)
payment
Sept. 20 filed 60,000 shares of cumulative preferred stock
(par $100). Proceeds—For construction program. Under¬
Co., both
of New York.
improvements. Office—139 W. Second Street, Ju¬
Alaska. Underwriter—Grande & Co., Inc., Seattle,
neau,
Lake Lauzon Mines Ltd.,
&
construction,
working capital. Office—1313 Sixth St.,
Redmond, Ore.
Underwriter—None.
(6/4)
April 30 filed 100,000 shares of common stock (par $1).
Price
To be supplied by amendment.
Proceeds—For
improvements and other corporate purposes. Under¬
15-year
(in de¬
'/V
,,
March 28
ment.
Moore Products
4.
Northwest Telephone Co.
motel,
roadside restaurant and gas station.
Business—Has been
processing and selling of gravel. Office—203 Broadway,
Monticello, N. Y. Underwriter—Walnut Securities Corp.,
•
&
June
on
common
Proceeds
be
determined by competitive
bidding. Probable
Halsey, Stuart & Co. Inc.; Merrill Lynch, Pierce,
Beane; Lehman Brothers and Riter & Co.
(jointly); Blyth & Co., Inc.; The First Boston
Corp.;
Kidder, Peabody & Co. and White, Weld & Co. (joint¬
ly). Bids—Expected to be received up to 10 a.m.
(CDT)
Price—$3 per share. Proceeds—For completion of plant,
provide for general creditors and for working capital.
Office—Jackson, Miss.
to 11 a.m. (EDT) on May 21 at
1600, 140 West St., New York, N. Y.
Room
Mid-State Commercial Corp.
March 29 (letter of
Aviv, Israel. Underwriter—Israel
Securities Corp., New York.
each
—
—
extend
for
public, $1.50 per share. Proceeds
For retirement of
outstanding bonds and working capital. Office—126 N.
Fifth St. (Box 988), Grand
Junction, Colo. Underwriter
as
Ltd.
Price
shares
seven
an
Feb. 13 filed $2,500,000 of perpetual
Israel
of
shares held (with
oversubscription privilege); rights to expire on May
31.
The remaining 18,667 shares have been
offered to
public. Price—To stockholders, $1.25 per share and to
Inc.
March 25 filed 10,000 shares of common stock. Price—At
market. Proceeds—For investment. Sponsor and Invest¬
ment
(letter of notification) 170,154 shares of com¬
(par $1)? of which 151,487 shares are being
to stockholders of record
April 1, 1957 on the
stock
basis
Investors
39
Moseley & Co., both of Boston, Mass.
filed
19
(5/20)
$30,000,000 of first mortgage bonds due
Proceeds—To repay bank loans and for new con¬
Underwriter—To be determined by competi¬
bidding.
Probable bidders: Halsey, Stuart & Co.
struction.
tive
Inc.; Kidder, Peabody & Co. and White, Weld & Co.
(jointly); The First Boston Corp.; Blyth & Co., Inc. and
Barney & Co. (jointly); Lehman Brothers; Harri¬
man
Ripley & Co. Inc. Bids—To be received up to
11:30 a.m. (EDT) on May 20 at Guaranty Trust Co. of
New York, 35 Nassau St., New York, N. Y.
Smith.
•
Public Service Co. of New Mexico
April 25 filed 181,997 shares of
of
which
tion
by
166,997 shares
common
are
to
stockholders
(5/20)
stock (par $5)
be offered for subscrip¬
at the rate of one new
common
Continued
on
page
40
40
The Commercial and Financial Chronicle
(2312)
Continued from page
•
39
' *
shares'held on or about May 20, 1957.
with a 20-day standby. The remaining 15,000 shares are
to be offered to employees. Price—To be supplied by
amendment. Proceeds—For construction program.
Un¬
derwriter—Allen & Co., New York, for offer to stock¬
agreed to purchase all of the debentures not
York
Pyramid Productions, Inc., New
York..
•
:a--
Business—Tele¬
capital.
working
and for
Inc.;
tions,
Underwriter—E. L. Aaron & Co., New
vision releases.
;.
V' .r-?'
<;
Quinta Corp., Santa Fe, N. Max.
(5/24-28)
New York; Clark, Landstreet & Kirkpatrick,
Inc., Nashville, Tenn.; and Minor, Mee & Co., Albuquer¬
que, N. M.
Sc Co., Inc.,
Inc.
Radiation,
April 25 filed 220,032 shares of class A common stock
(par 25 cents), of which 186,032 shares are being offered
to stockholders of record May 15, 1957 for subscription
on the basis of one share of class A stock for each three
.shares of class A and common stock
held; rights are to
expire on May 27. The remaining 40,000 shares are be¬
ing offered publicly for account of selling stockholders.
The subscription rights of certain principal stockholders
would be purchased and exercised by the underwriters,
and the new stock created thereby (129,733 shares) of¬
Price—$12 per share to stockhold¬
Proceeds—For working capital and
other corporate purposes. Underwriters—Kuhn, Loeb &
Co., New York; and Johnson, Lane, Space & Co., Inc.,
fered to the
public.
$14 to public.
ers;
Savannah, Ga.
Raytone Screen Corp.
Feb. 15 (letter of
City, N. J.
Resource
Fund, Inc., New York
(par $1).
March 29 filed 100,000 shares of common stock
price—At market.
Proceeds—For investment.
D. John Heyman of New
writer—None.
Under¬
York is Presi¬
Investment Advisor—Resource Fund Management
dent.
Co., Inc., 60 Broadway, New York, N. Y.
Rogosin Industries, Ltd., New York
1 filed 75,000 shares of common stock. Price—
At par ($100 per share). Proceeds—For site improve¬
ments and buildings in Israel; for process equipment
and machinery; for utilities; working capital; and other
March
corporate purposes.
•
Underwriter—None.
St. Louis Insurance Corp., St. Louis, Mo.
March 27 filed 1,250 shares of class C cumulative pre¬
ferred stock (par $57).
Price-—$97 per share. Proceeds
—To R. M. Realty Co., who is the selling stockholder.
Underwriter
— Yates,
Heitner & Woods, St. Louis, Mo.
Offering—Expected within the next few weeks.
Regis Paper Co.
April 1 filed 850,000 shares of common stock (par $5)
to be offered in exchange for common stock of St. Paul
St.
Lumber Co.
& Tacoma
on
the basis of 56%
shares of
St. Regis stock for each share of Lumber company stock.
The offer will be declared effective if 95% of the latter
is
(and may be declared
option of St. Regis, if not less than 80%
of the stock is deposited).
stock
deposited for exchange
effective
at
San Juan Horse
Racing Association
April 29 (letter of notification) 259,945 shares of com¬
mon stock (par 50 cents).
Price—$1 per share. Proceeds
construction
-—For
of
a
horse
racing oval;
erection
of
stable, etc.; in operating a race track and working capi¬
tal.
Office—1040 Main St., Durango. Colo. Underwriter
—None.
Scruggs (Loyd) Co., Festus, Mo.
April 11 (letter of notification) 54,646 shares of common
stock to be offered for subscription by common stock¬
holders
basis
the
on
of
one
new
share
for
each
share
held. Price—At par ($1 per share). Proceeds—For work¬
ing capital.
Office—1049 Front St., Festus, Mo. Under¬
writer—None.
Sire
Plan,
Inc.,
New York
Stinnes
fund notes.
(in denominations of $100 each). Proceeds
(Hugo)
the
—
—
$5),
•
988,890 common shares.
Proceeds
To the Attorney General of the United
States. Underwriter—To be determined by competitive
bidding. Probable bidders include Kuhn, Loeb & Co.,
Lehman Brothers and Glore, Forgan & Co. (jointly).
Bids—To be received up to 3:45 p.m. (EDT) on June 25
at Office of Alien Property, Washington 25, D. C.
Sun Oil
is
—Zilka, Smither & Co., Inc., Portland, Ore.
Uranium Corp.
bert Griswold of
Valley Telephone Co., Silverton, Ore.
March 12
one
to expire on May 10. Price — At par ($10 per
Proceeds — For expenses for operating a public
utility
(telephone
and
telegraph).
Underwriter —
share).
Daugherty, Butchart & Cole, Inc., Portland, Ore.
^ Vanadium-Alloys Steel Co., Latrobe, Pa.
stockholders
at the rate of one new share for each eight shares held
on May 10; rights to expire on May 27. Price—$23.50 per
share. Proceeds—To reduce bank loans and for working
capital. Office — Rockford, 111. Underwriters — Merrill
Lynch, Pierce, Fenner & Beane, New York; Bacon,
Whipple & Co., Chicago, 111.; and Dean Witter & Co.,
common
Francisco, Calif.
—
Virginia Electric & Power Co.
Stuart & Co. Inc., all of New York.
Providence, R. I.
May 8 filed 300,000 shares of common stock (par 50
cents) to be offered for subscription under Employees'
Peabody & Co.; Equitable Securities Corp; Eastman Dil¬
lon, Union Securities & Co.; The First Boston Corp. Bids
—To be received up to 11:30 a.m. (EDT) on May 16 at
Room 1106-1100 H St., N: W., Washington 5, D. C.
company
and its subsidiaries.
• Tilmore
Corp., New York (5/20-24)
April 30 (letter of notification) 50,000 shares of common
stock (par $1). Price—$5 per share. Proceeds—For
gen¬
Western Electric Co.,
eral corporate purposes.
Business—Operates eight retail
furniture stores. Office
120 Broadway, New York 5,
N. Y. Underwriter—Maltz, Greenwald &
Co., New York.
ity stockholders of record April 9, 1957 at the rate of one
new share for each nine shares held; rights to expire on
June 3. An additional 1,565,662 shares will be subscribed
Topp Industries, Inc.
April 19 filed $2,750,000 of 6% convertible subordinated
debentures due'May 1, 1977. Price — To be supplied by
for
$1,250,000; $650,000 to purchase additional capital
equipment; and the balance for working capital. Office
—Beverly Hills, Calif. Underwriter—Dempsey-Tegeler
Western
Offering
March
and
for
subscirption by common stockholders
28, 1957 at the rate of one new share
for each six shares held; rights will
expire on March 31,
activities:
also
for
working capital and other corporate purposes.
Underwriter—Sire Plan Portfolios. Inc., New York.
other
expenditures
general
(par $25).
Price—To be supplied by amendment.
Underwriters—The First Boston Corp.. New York,
Dean Witter & Co., Los Angeles and San Francisco.
gram.
and
Acceptance Co.,
San
Antonio, Texas
March 26 (letter of notification) $300,000 of 6% deben¬
tures due
additional
1967.
Co. of Lincoln
Kansas.
Price—At face amount.
working capital.
Underwriter
Proceeds—For
—
First
Trust
(Neb.), and Beecroft, Cole & Co., Topeka,
new
*
••
>
>
Corp.
share
for
each
share
held
and
800,000
shares to
public. Price — To stockholders, seven cents per
share; to public, 10 cents per share. Proceeds—For min¬
ing expenses. Office—139 N. Virginia St., Reno, Nev.
Underwriter—None.
Wilson & Co., Inc.
Aug.
28 filed
bentures
ment.
due
$20,000,000 of 20-year sinking fund de¬
1976.
Proceeds
Price—To
To
be
supplied
by
amend¬
redeem
presently outstanding
bonds, to repay bank loans and for ex¬
pansion program.
Business—Meat packing firm.
Unlerwriters—Smith, Barney & Co.: Glore Forgan & Co.
—
first mortgage
ment Plans without insurance and the
underlying shares
of United Accumulative Fund. Price—At market. Pro¬
-
Uranium
the
ik United Funds, Inc., Kansas City, Mo.
May 9 filed (by amendment) an additional 800,000 of
United Science Fund shares, 500.000 of United Conti¬
nental Fund shares, and
$60,000,000 of Periodic Invest¬
-
unit. Pro¬
per
(letter of notification) 1,000,000 shares of com¬
mon
stock
(par five cents) to be offered as follows:
200,000 shares to present stockholders on a basis of one
Engineering Corp.
(letter of notification) 100,000 shares of class A
common stock
(par 10 cents).
Price—$1.50 per share.
Proceeds—For working capital; machine
tools; equip¬
ment and
proprietary development. ^ Office — 4932 St.
Elmo Ave., Bethesda 14, Md.
Underwriter—Whitney &
Co., Inc., Washington, D. C.
>
Price—$1,011
March 16
exploration
corporate purposes.
Tripac
ceeds—For investment.
1,100 shares of stock.
Western
for
Calif.
Southwest
Rawlins, Wyo.
Underwriter—Bosworth, Sullivan & Co., Denver, Colo.
Proceeds—For'
Feb. 27
Proceeds—To retire bank loans and for construction pro¬
Nuclear Corp.,
filed
27
ceeds—For capital expenditures and operating purposes.
Underwriter—N one.
^Southern California Edison Co. (6/4-5)
May 13 filed 1,200,000 shares of cumulative preferred
and
Underwriter
$400,000 of 5%% subordinated deben¬
tures, series B, and 440,000 shares of common stock (par
one cent) to be offered in units of $1,000 of debentures
March
expenditures
Broadway, New York 7, N. Y.
—None.
Trans Empire Oils Ltd., Calgary,
Alberta, Canada
April 9 filed 436,291 shares of common stock (par $1.25)
capital
—
Office—195
by
(Canadian).
by American Telephone & Telegraph Co., the parent.
$45 per share. Proceeds — For expansion, etc.
Price
Proceeds—To reduce short-term borrowings
Price—$2.50 per share
Inc.
April 16 (letter of notification) 2,856 shares of common
stock (no par) being offered for subscription by minor¬
—
& Co., St. Louis, Mo. and Los
Angeles, Calif.
—Expected this week.
(5/16)
April 25 filed $8,000,000 refunding mortgage bonds due
1982. Proceeds—To repay bank loans and for construc¬
tion
program.
Underwriter — To be determined by
competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Blair & Cq. Incorporated and Baxter & Co.
(jointly); Merrill Lynch, Pierce, Fenner & Beane and
Stone
& Webster
Securities Corp.
(jointly); Kidder,
• Textron Inc.,
key employees of
(6/4)
(EDT) on June 4 at 40 Wall St., New York, N. Y.
Washington Gas Light Co.
Proceeds—To repay bank loans. Underwriters—Stone &
Webster Securities Corp., White, Weld & Co. and Hal-
offered
Underwriter—Goldman, Sachs & Co.,
May 1 filed 1,000,000 shares of common stock (par $8).
Proceeds—For construction program; Underwriters—To
be determined by competitive bidding.
Probable bid¬
ders: Stone & Webster Securities Corp.; Merrill Lynch,
Pierce, Fenner & Beane. Bids—To be received up to 11
a.m.
be
of record about
New York.
Jr Tennessee Gas Transmission Co. (5/28)
May 8 filed $50,000,000 of first mortgage pipe line bonds
due July 1, 1977. Price—To be supplied
by amendment.
of record
as
4, 1957; with rights to expire about June 19. Price
To be supplied by amendment. Proceeds — For ex¬
pansion program.
debentures due 1967. Price—At par. Proceeds—To repay
$550,000 bank loans, and for increased facilities and
working capital. Office—St. Boniface, Canada. Under¬
writer—Straus, Blosser & McDowell, Chicago, 111.
to
share for each 10 shares held
one new
June
^
,
Stock Option Plan by certain
(6/5)
May 13 filed 51,000 shares of capital stock (par $5) to be
offered for subscription by stockholders at the rate of
6 Supercrete, Ltd.
(5/21)
April 1 filed $1,150,000 of 6% convertible subordinated
—For
stock
new
rights
stock (par $5)
common
being offered for subscription by
(letter of notification) 12,811 shares of com¬
stockholders on the basis of
share for each two shares held as of April 10;
stock being offered to
mon
Sundstrand Machine Tool Co.
April 22 filed 170,471 shares of
amendment.
Portland, Ore., is President.
Philadelphia, Pa.
April 18 filed a maximum of 228,904 shares of common
(no par) to be offered for possible public sale
during the year ended June 30, 1958. Proceeds—To
selling stockholders. Underwriter—-None; Such shares
will be sold through brokerage houses on the New
York Stock Exchange and the Philadelphia-Baltimore
Stock Exchange. Statement effective May 7.
sey,
of America, Portland, Ore.
April 30 filed 1,250,000 shares of common stock (par 10
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¬
stock
San
subject to acceptance by not less than 80% of each
expire on July 1. Dealer-Manager
class of stock and will
Co., Philadelphia, Pa.
Sun Oil Co.,
Abilene, Kansas
Oregon-Washington preferred share. This offer
for each
April 18 filed 15,000 memberships in the Stock Purchase
Plan for employees of company and its subsidiaries
and a maximum of 161,000 shares of common stock
(no par) which it is anticipated may be purchased under
the plan during the year ending June 30, 1958.
State¬
ment effective May 7.
•
United Utilities, Inc.,
April 25 filed 105,000 shares of common stock (par
$10) to be offered in exchange for stock of OregonWashington Telephone Co. on the basis of 2% shares for
each Oregon-Washington common share and five shares
—
•
re¬
purchase of new materials and working capital. Office
Phoenix, Ariz. Underwriter — Jonathon & Co., Los
outstanding
presently
Inc.
Angeles, Calif.
March 29 filed 530,712 shares, of common stock (par
of
S. Semiconductor Products,
U.
April 11 filed 500*000 shares of common stock (par $1).
Price
To be supplied by amendment. Proceeds — For
(6/25)
New York
Corp.,
Corp.
indefinite.
May 10 filed 100,000 shares of common stock (par $1)
to be offered in connection with merger into this Fund
of Fund of Fortune, Inc., Fortune II, Inc., Fortune III,
Inc. and Fortune IV, Inc. Underwriter —« William Allen
Steadman & Co., East Orange, N. J.
1959.
14 filed $1,000,000 of nine-month 8%
May
Price—At par
^ Steadman Investment Fund, Inc.,
East Orange, N. J.
notification) 50,000 shares of common
(par 10 cents). Price—$3.25 per share. Proceeds
—To reduce debt, for purchase of inventory and for
working capital. Office—165 Clermont Ave., Brooklyn,
N. Y. Underwriter—J. P. Emanuel & Co., Inc., Jersey
fitock
subscribed
the other stockholders.
.
•
April 22 filed 700,000 shares of capital stock (par five
cents). Price—50 cents per share. Proceeds—For build¬
ing program, for future development of mineral deposits
and working capital.
Underwriters—Frederic H. Hatch
•
for by
States Air Conditioning
(par 10
cents), of which 50,000 shares are to be offered to em¬
ployees, distributors and dealers; 50,000 shares, plus
any of the unsold portion of the first 50,000 shares, are
to be offered to the public; and the underwriter will be
granted options to acquire the remaining 500,000 shares
for reoffer to the public. Price—At market prices. Pro¬
ceeds—For working capital and general corporate pur¬
poses. Office—Philadelphia, Pa. Underwriter—Mortimer
B. Burnside & Co., Inc., New "York. Offering—Date
scription by common stockholders of record May 23,1957
on the basis of $100 of debentures for each 30 common
■shares held; rights to expire on June 17. Price—At par
(flat). Proceeds—To reduce bank loans. Underwriter—
None. The largest stockholder, Pyramid Rubber Co., has
holders. '
Thursday, May 16, 1957
Sept. 27 filed 600,000 shares of common stock
April 11 filed $2,017,300 of 5%% subordinated convert¬
ible debentures due June 15, 1962, to be offered for sub¬
share for each 10
£ept. 27 filed 220,000 shares of common stock (par $1),
of which 200,000 shares are to be offered to public and
20,000 shares issued to underwriter. Price—$5 per share.
Proceeds—To retire $125,000 of outstanding 15% deben¬
tures as well as a $173,180 debt to Trans-Union Produc¬
United
(5/24)
Spalding (A. G.) & Bros. Inc.
..
.
*
and Hallgarten & Co., all of New York City.
Indefinitely postponed.
' "
Offering—
Volume
Number
185
5638
.
.
The Commercial and Financial Chronicle
.
-
Advance Mortgage Corp., Chicago,
Dec.
it
4
III.
and
Irwin
Jacobs
&
Co.
of
Chicago)
plans a public
offering of $1,000,000 class A 6% participating convert¬
ible stock (par $1). Underwriter—Baker, Simonds & Co.,
Detroit, Mich. Offering—Expected in May.
(par $100\ and on increasing .the authorized out¬
standing indebtedness to $15,000,000, in connection with
its proposed recapitalization plan. There are no
specific
objectives involved. Control—Acquired by General Tire
Tire &
mon
mate
Inc., Emmaus, Pa.
may
stockholders some additional
done
offer to its
common
com¬
shares.
Alabama
Great Southern
RR.
&
Co.
Probable bidders:
Halsey, Stuart
Inc.; Salomon Bros. & Hutzler.
/
plans to issue and
15,000 shares of $1.20 cumulative convertible pre¬
(par $20). Stockholders on April 6
ferred stock series A
to
are
vote
approving an authorized issue of 30,000
of preferred stock.
Underwriters—Emch & Co.
shares
on
and The Marshall
Co., both of Milwaukee, Wis.
is
offered to
Arizona Public Service Co.
or
early Fall
Underwriter
—
an
undetermined amount
Previous
bond
financing
was
done
privately through The First Boston Corp. and Blyth
Co., Inc.
Atlantic City Electric Co.
April 9, Bayard L. England, President, announced that
later this year the company will probably issue about
$5,000,000 of convertible debentures. Proceeds—For con¬
struction program.
Underwriter—May be determined by
competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Kuhn, Loeb & Co., American Securities Corp.
and Wood, Struthers & Co. (jointly); White, Weld & Co.
and Shields & Co.
(jointly); The First Boston Corp. and
(jointly); Eastman Dillon, Union Securi¬
Smith, Barney & Co. (jointly); Lee Higginson Corp.; Blyth & Co., Inc.
& Co.
May 7 it
Montreal, Montreal, Canada
was
(5/31)
announced Bank will offer its stockholders
of record
May 17, 1957, the right to subscribe for 900,000
(par $10) on the basis
shares held; rights to
expire on Aug. 9, 1957. Warrants will be mailed on or
about May 31. Price—$30 per share.
Proceeds—To in¬
crease capital and
surplus. Subscription Agent — The
Royal Trust Co., Montreal, Canada. The offering will
additional shares of capital stock
of one new share for each five
not be
registered with the Securities and Exchange Com¬
mission.
Bell Telephone Co. of Pennsylvania (7/31)
April 25 it was announced company plans to issue and
sell $50,000,000 of new debentures due 1997. Proceeds—
To redeem
$50,000,000 of 5% series C bonds. Underwriter
—To be determined by competitive
bidding. Probable
bidders: Halsey, Stuart & Co. Inc.; Morgan
Stanley &
Co.; The First Boston Corp.; White, Weld & Co. and
Eastman Dillon, Union Securities & Co.
(jointly). Bids—
Expected to be received on or about July 31.
Berks
County Trust Co.,
Reading,
Pa.
April 15 Bank offered to its stockholders of record April
8, 1957 the right to subscribe on or before May 15, 1957
for 28,611 additional shares of
capital stock (par $5) on
the basis of
share for each 20 shares held. Price
one new
—$24.50 per share.
Proceeds—To increase
capital and
surplus.
'
and
To
Birdsboro
Steel
$20,000,000
was
financing,
announced company may
probably
building for the future
and
this
to
earning and
continue
paying
divi¬
dends.
April 8 it
was
additional
common
company plans an offering of
stock to its common stockholders
during the first half of this
bank
year.
Proceeds—To pay off
loans
(amounting to $700,000 at Dec. 31, 1956).
Underwriters
Smith, Ramsay & Co. Inc., Bridgeport,
Conn.; and Chas. W. Scranton & Co., New Haven, Conn.
—
•
Byers (A. M.) Co.
May 7 stockholders approved
new
class
of
100,000
shares
proposal to authorize
cumulative
a
preference
i
*. J
.
.4:,,.
*
plans to issue and sell
company
Probable bidders: Halsey, Stuart & Co. Inc.; White, Weld
& Co. and Shields & Co. (jointly); Morgan Stanley &
Delaware
Power & Light Co.
(6/24)
1
■
/
'
April 26 H. H. Plank, President, announced that com¬
pany plans to issue and sell $15,000,000 of first mortgage
and collateral trust bonds due 1987,
Underwriter—To
determined by competitive bidding.
Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Eastman Dillon, Union
Securities & Co.; Merrill Lynch, Pierce, Fenner & Beane
and
Kidder, Peabody & Co. (jointly); Kuhn, Loeb & Co.,
Salomon
Bros.' &
Hutzler
and
Wood,
Struthers
&
Co.
Brothers.
received
★
Detroit
Bids—Tentatively
scheduled
be
to
June 24.
on
Edison
'
Co.
.
May 6 it
about
was
*
announced company plans to sell in 1957
$60,000,000 of mortgage bonds.
Proceeds
For
tive bidding.
&
Ripley & Co. Inc.; Merrill Lynch, Pierce, Fenand Stone & Webster Securities Corp.
Beane
,
Central
April 9 it
,
Illinois Public
,
,
,
,
Service Co.
reported company plans to issue and sell
$10,000,000 of 1st mtge. bonds.Proceeds—To reduce bank
Kuhn, Loeb & Co. and A. C. Allyn & Co., Inc. (jointly).
Offering—Expected late in 1957.
April 8 it
announced company plans to
issue and
$6,000,000 of first mortgage bonds.
Together with $4,500,000 of 4%% 12-year
convertible debentures to be placed privately, to be used
to repay bank loans and for construction program. Un¬
sell
was
this
late
Proceeds
year
—
derwriters—Kidder, Peabody & Co. and White, Weld &
the private
placement of an issue of $5,000,000 series G first mort¬
Co. about the middle of last year arranged
gage bonds.
—
Probable bidders: The First Boston Corp.
Halsey, Stuart & Co. Inc.
(jointly); Coffin & Burr,
Co. (jointly). Bids — Now
expected to be received in latter part of June.
Inc.,
Spencer Trask
and
Duke Power Co.
&
(9/10)
reported company plans to issue and sell
$50,000,000 of first refunding mortgage bonds. Proceeds
—To repay bank loans and for new construction. Under¬
writer—To be determined by competitive bidding. Prob¬
April 22 it
was
able bidders:
ton
Halsey, Stuart & Co. Inc.; The First Bos¬
Morgan Stanley & Co.; Stone & Webster
scheduled to be re¬
•* V'" '- ^
Corp.;
Securities Corp. Bids—Tentatively
ceived on Sept. 10.
Eastern Gas & Fuel Associates
April 3 it was announced company may need additional
capital of between $25,000,000 and $35,000,000 during the
next two years.
termined
Underwriter—For any bonds to be de¬
competitive bidding. Probable bidders:
by
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; White, Weld
& Co., and Kidder, Peabody & Co. (jointly).
Eastern Utilities Associates
April 15 it was announced company proposes to issue
and sell $3,750,000 of 25-year collateral trust bonds.
Proceeds
For advances to Blackstone Valley Gas &
—
Chance
Vought Aircraft, Inc.
April 15 it was reported company plans to issue and sell
$12,000,000 of convertible securities (debentures of pre¬
ferred stock). Underwriter—May be Harriman Ripley &
Co., Inc., New York.
Cleveland
Nov. 12 it
and
was
rities & Co.; Blyth & Co., Inc.; Kidder, Peabody & Co.;
and Merrill Lynch, Pierce, Fenner & Beane (jointly);
Electric
Electric
Co., a subsidiary. Underwriter—To be deter¬
mined by competitive bidding.
Probable bidders: Hal¬
sey* Stuart & Co. Inc.; Kidder, Peabody & Co.; Blyth
& Co., Inc.; White, Weld & Co.; Stone & Webster Se¬
curities Corp. and Estabrook & Co. (jointly).
„
Empire District Electric Co.
Illuminating Co.
reported company plans to issue and sell
$25,000,000 of first mortgage bonds in the Summer of
1957. Proceeds—To repay bank loans and for construc¬
tion program. Underwriter—To be determined by com¬
petitive bidding. Probable bidders:
Halsey, Stuart &
Co. Inc.; The First Boston Corp.; Blyth & Co., Inc.; Dil¬
lon, Read & Co. Inc.; Blair & Co. Inc., and Baxter, Wil¬
liams & Co.
(jointly); Glore, Forgan & Co.; White,
14, D. C. McKee, President, announced company
plans to issue and sell some additional bonds this year.
Proceeds—To retire bank loans ($2,200,000 at Dec. 31,
Weld & Co.
that
was
Coastal Transmission
Corp.
6 it was reported the company plans to offer
publicly $7,800,000 of interim notes and 678,900 shares
of $1 par stock in units. (Common stock not sold in units
would be purchased by Delhi-Taylor Oil Corp., or its
stockholders at an average price of $10 per share.) Pro¬
ceeds—Together with funds from private sale of $40,000.000, for construction program.
Underwriters—Lehman
Brothers and Allen & Co., both of New York.
March
Columbia
Feb.
Gas
18, company
System, Inc.
announced that it plans the issuance
and sale of
$25,000,000 additional debentures in Septem¬
(in addition to $20,000,000 additional to be sold at
competitive bidding on June 6—see above). Proceeds—
ber
To help finance 1957 construction program, which is ex¬
pected to cost approximately $87,000,000. Underwriter—
To be determined
by competitive bidding. Probable bidHalsey, Stuart & Co. Inc.; Morgan Stanley & Co.;
Merrill Lynch, Pierce, Fenner & Beane and White, Weld
& Co. (jointly). Bids—Expected to be received in Sep¬
bers:
Columbus & Southern Ohio Electric Co.
Feb. 21 it
was
reported that company plans to issue and
sell in the Fall $8,000,000
of cumulative preferred stock.
Underwriter—Dillon, Read & Co. Inc., New York.
Connecticut Light &
Power Co.
Feb. 18, it was reported company plans to sell not less
than $20,000,000 of first mortgage bonds, possibly this
March
1956) and for construction program. Underwriters—Pre¬
vious bond financing was done
Erie Resistor
April
upon market conditions.
Proceeds—For
program.
Underwriter — Putnam & Co.,
Hartford, Conn.; Chas. W. Scranton & Co., New Haven,
Richard
G.
23,
a
new
issue
construction
Conn.; and Estabrook & Co., Boston, Mass.
Consolidated
May 9 it
was
Natural
Gas
Co.
announced company plans to issue and sell
$25,000,000 25-year debentures in October in addition to
privately.
Corp., Erie, Pa.
of
Fryling,
President,
announced
200,000 shares of preference stock
$12.50) has been authorized and that the 62,475
shares of outstanding convertible preferred5 stock (par
(par
$20)
called for redemption at an
Fulton, Reid & Co., Inc.,
expected to be
Underwriter
are
early
date.
—
Cleveland, Ohio.
of California
General Telephone Co.
announced application has been made to
the California P. U. Commission for authority to issue
May 3 it
was
shares of 5% cumulative preferred stock
shortly after the sale of an issue of $20,000,bonds which have been filed with the
SEC (see a previous column in this article). Proceeds—
and sell 500,000
(par $20)
000 first mortgage
construction
For
Underwriters—Paine, Web¬
and Mitchum,
program.
& Curtis, Boston, Mass.;
Jones & Templeton, Los Angeles, Calif.
ber,
Jackson
★ General Tire & Rubber Co.
May 10 it
issue
an
was
of
reported that this company is considering
debentures, prob¬
convertible subordinated
ably around $15,000,000, which may first be offered for
subscription by common stockholders.
Proceeds—For
working capital. Underwriter—Kidder, Peabody & Co.,
New York.
Government Employees Corp.
March
12
it
was
announced
(6/3)
company
plans to offer to
stockholders about June 3 the right to
subscribe
approximately $500,000 of convertible capital deben¬
tures due 1967.
Underwriters—Johnston, Lemon & Co.,
Washington, D. C.
for
Fall, depending
•
a
of
•
,
<.j ,/.•
Harriman
•
reported
reported
was
•'
\3
To repay bank loans and for construction program. Un¬
derwriter — To be determined by competitive bidding.
common
Bridgeport Gas Co.
■■
,
construction program (estimated to cost about $89,000,000
this year). Underwriter—To be determined by competi¬
have to obtain
year,
t
Probable bidders: Halsey, Stuart & Co.
Inc.; Morgan Stanley & Co.; Kuhn, Loeb & Co.; Eastman
Dillon, Union Securities & Co.; The First Boston Corp.;
tember.
Foundry & Machine Co.
April 19 it
additional
■
■
repay
petitive bidding.
ties & Co. and
Bank of
issue
to
\ Central Louisiana Electric Co., Inc.
reported company plans to issue and sell
was
in late Summer
Drexel
plans
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler;
Equitable Securities Corp.; Eastman Dillon, Union Secu¬
will
States; and Pictet &
Cie, in Switzerland. Latter owned of record, but not
beneficially, on March 1, 1957, 380,532 of the 459,379
common shares outstanding.
&
—
April 22 it
Lehman
company
months
first mortgage
bank loans and for new
Underwriters—To be determined by com¬
Proceeds
;
(jointly); White, Weld& Co. and Shields & Co. (jointly);
Francis I. duPont & Co. and Reynolds & Co. (jointly);
stockholders during the current year
offering is presently planned. Underwriters
stock
common
common
no
of bonds.
two
•.*.
Consumers Power Co.
be
loans and for construction program. Underwriter—To be
determined by competitive bidding.
Probable bidders:
additional
that
—Dominick & Dominick in United
April 26 it
-
be
probable
although
reported
was
about
(jointly).
April 24 stockholders approved a proposal to increase
the authorized capitalization from 600,000 shares (con¬
sisting of 500,000 common shares and 100,000 preferred
shares) to 1,000,000 common shares, without par value.
It
it
2
in
construction.
ner
American European Securities Co.
;
;
Central Illinois Light Co.
bonds.
announced company
•
Kidder, Peabody & Co., New York.
May
.
Aluminum Specialty Co.
was
.
Hudson Gas & Electric Corp.
issue and sell
Proceeds—To'
Underwriter—Probably
sell
March 18 it
Previous
April 9 it was announced company plans to
this year additional first mortgage bonds.
finance construction program.
(6/4)
'
sell
permit
(which approxi¬
debenture financing was
privately.
Central
Un¬
Bids will be received by the company up to noon (EDT)
on June 4 for the purchase from it of
$2,400,000 equip¬
ment trust certificates.
$12,200,000).
Webber, Jackson and Curtis (jointly); Morgan, Stanley
& Co. and the First Boston Corp. (jointly).
plans to issue and
amount which would
"
derwriter—Reynolds & Co., New York.
•
an
Underwriter—To bo
11.
competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; White, Weld & Co. and Paine,
Co.; The First Boston Corp. and Harriman Ripley & Co.
(jointly). _•; \\:
substantial reduction of its bank loans
derwriter—Kidder, Peabody & Co., New York.
company
announced company
was
debentures in
some
June
on
by
Inc.
Telephone & Telegraph Co.
March 11 it
sell
$25,000,000 to be sold
determined
.i.'.-l-V $40,000,000 of first mortgage bonds this Fall. Proceeds—
Pipe Line Co.
Carolina
$5,000,000 and $10,000,000 by the sale of additional
common stock, perhaps 25,000
shares or so, either pri¬
vately or publicly. Proceeds—For working capital. Un¬
reported
::
Lynchburg, Va.
tween
was
j
was reported company plans to construct a
pipe line in South Carolina at an estimated cost of about
$8,700,000.
Underwriter — Scott, Horner & Co., Inc.,
reported that this company (a 95% owned
subsidiary of General Tire & Rubber Co.) may raise be¬
Air Products,
V
March 11 it
was
Feb. 26 it
Rubber Co. financing.
Carolina
Aerojet General Corp.
May 10 it
stock
& Rubber Co. in 1956.
Underwriter—Dillon, Read & Co.,
Inc., New York, handled previous preferred stock financ¬
ing, while Kidder, Peabody & Co. underwrote General
reported this company (to be surviving
corporation following merger of First Mortgage Corp.
was
41
(2313)
★ Great Northern
Bids
are
Ry.
(7/17)
expected by the
company
to be received on
July 17 for the purchase from it of $4,965,000 equipment
trust certificates. Probable bidders: Halsey, Stuart & Co.
Inc.; Salomon Bros. & Hutzler.
Continued
on
paae
42
42
The Commercial and Financial Chronicle
(2314)
Continued from page
The
41
announced company plans to issue some
additional first mortgage bonds, the amount of which has
not yet been determined. Proceeds — For construction
program.
Underwriters—Carl M. Loeb, Rhoades & Co.
and Merrill Lynch, Pierce, Fenner & Beane.
was
Gulf States Utilities Co.
March
it
4
reported
was
Boston
plans
company
to issue
Dillon,
Weld
it Gulf Interstate Gas Co.
May 3 it
First
Eastman
Utilities Co.
Iowa Power & Light Co.
June 18.
on
Gulf States Utilities Co.
April 8 it
—To
be
reported
was
issue and sell
some
finance
Stone
by
year.
plans
to
Proceeds
Underwriter—To
bidding. Probable bid¬
program.
competitive
Webster
&
tentatively
company
preferred stock this
construction
determined
ders:
|
ceeds
To finance expansion.
Barney & Co., New York.
—
Underwriter
—
New
Corp.; Lehman Bro¬
(jointly); Lee Hig¬
ginson Corp. and Carl M. Loeb, Rhoades & Co. (jointly);
Kuhn, Loeb & Co.; Glore, Forgan & Co. and W. C. Langley & Co. (jointly).
•
Haima Steel Co., Birmingham, Ala.
April 8 it
reported company plans to issue and sell
120,000 shares of class A common stock. Price—$5 per
was
ahare.
Underwriters—Cruttenden, Podesta & Co., Chi¬
111.; and Odess, Martin & Herzberg, Inc., Birming¬
ham, Ala. Offering—Expected in June.
cago,
Hilo Electric Light Co., Ltd.
March 9 it
ceeds from sale of
sell
ing
an
Previous bond financ¬
done privately.
was
Houston Lighting & Power Co.
Feb.
13
it
reported
was
offer late this
Fall approximately $25,000,000 first mortgage
bonds, but
exact amount, timing, etc. has not
yet been determined.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Equitable
Securities Corp.; Lehman
Brothers, Eastman Dillon,
Union Securities & Co. and Salomon Bros. & Hutzler
company
company plans to offer
publicly $22,405,556 of 5%% interim notes (convertible
into preferred
stock) and $18,241,944 of common stock
in units.
Part of
common
ent stockholders
at
Btruction program.
$10
stock will be offered to pres¬
per
share.
Proceeds—For
con-
Underwriter—Blyth & Co., Inc., San
Francisco and New York.
au¬
chares to 1,600,000 shares.
(par $50) from 1,000,000
Underwriters—Merrill Lynch,
Pierce,
and
&
•
Beane
The
First
Boston
Corp.,
both of New York.
Indiana Harbor Belt RR.
Bids will be received by this
(6/5)
5
(CDT)
for
the purchase from it of
$8,125,000 first
mortgage bonds due June 1, 1982. Proceeds—To refund
bonds due July 1, 1957. Underwriter—To
be determined
fcy competitive bidding. Probable bidders:
Halsey, Stuart
& Co. Inc.; Salomon Bros. &
Hutzler; Kuhn, Loeb & Co.
Indianapolis Power & Light Co.
Nov. 21, H. T. Prichard,
President, announced that pres¬
ent plans contemplate an issue of
$6,000,000 of preferred
stock
some
time in
feasible, and
bank
porary
an
1957 if market conditions make it
issue of $8,000,000 in bonds in 1958. Tem¬
are available
and probably will be
loans
utilized, during at least part of 1957.
rities will need to
to
be sold in
1959
approximately $14,000,000.
Additional
and
secu¬
1960, amounting
Proceeds—To repay bank
loans and for new construction.
Underwriter—May be
Lehman Brothers, Goldman, Sachs & Co. and The First
Boston Corp., who underwrote last
equity financing.
International Utilities Corp.
March
April
15
17
it
on
was
announced
approving
stockholders
increase
in
were
to
vote
the
authorized
stock from 2,500,000 to
4,000,000 shares (par $5).
Underwriter
Butcher & Sherrerd,
an
—
Iowa
last eauitv
Gas
April 1 it
&
Philadelphia, Pa.,
financing.
Kaiser
for
new
was
bonds.
Proceeds—To
construction.
by competitive bidding.
retire
bank
Underwriter—To
be
Probable bidders:
loans
and
determined
Halsey, Stu¬
art & Co. Inc.;
Kuhn, Loeb & Co.; Glore, Forgan & Co.;
(EDT)
a.m.
Industries
on
July 16.
Corp.
Halsey, Stuart & Co.; Kuhn, Loeb & Co., Leh¬
and Salomon Bros. & Hutzler (jointly);
Eastman Dillon, Union Securities & Co. and White, Weld
& Co. (jointly); Equitable Securities Corp.; The First
Boston Corp.; Merrill Lynch, Pierce. Fenner & Beane.
Kaiser Co., or of certain other assets.
First Boston Corp., New York.
future
^ New York Central RR.
Stuart &
^
Kentucky Jockey Corp.
was
the
stock
reported corporation plans to issue and
next
securities
new
to be
six
months $2,500,000
(probably
units).
1
to, $3,000,000
debentures and common
This offer is expected to
offered in
be underwritten.
v.
/
■
April 16 it
announced
be
determined
of
by
Co., New York.
v-
company
rist
Bids
are
to be received by the company on
purchase from it of $6,450,000 equipment
Probable bidders: Halsey, Stuart & Co.
expected
Corp.; Blyth & Co., Inc.; White, Weld & Co. and Lehman
Brothers (jointly).
Bids—Expected in June.
Michigan Wisconsin Pipe Line Co.
was announced company plans to issue and
$30,000,000 of first mortgage bonds.; Proceeds — To
April 24 it
sell
bank loans and for construction program. Under¬
writer—To be determined by competitive
bidding. Prob¬
repay
Halsey, Stuart & Co. Inc.; The First Boston
& Co., Inc.
Offering—Expected late in
June.
stock
There
(par $100).
of these shares..
sell
Utilities
reported
Co.
debentures
plans to
bonds
or
issue
and
convertible
before
June 30, 1957.
Underwriter—To be
by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc., Merrill
Lynch, Pierce, Fenner & Beane and Kidder, Peabody
determined
& Co.
(jointly); Blair & Co., Incorporated.
New England
Electric System
tric Light Corp., Lawrence Electric Co., Haverhill Electric
Co. and Amesbury Electric Light Co., into one company.
This would be followed
issue
by
by a $20,000,000 first mortgage
the resultant company, to be known as
Marrimack-Essex
determined
Halsey,
by
Stuart
Electric
competitive
&
Co.
Inc.;
present plans to.sell any
reported
notes and
some
was
common
Co., Ltd.
•
*
plans to issue and sell
stock in units.
Proceeds—About
company
$10,500,000, together with private financing, to be used,
for new construction. < Underwriters — Hemphill, Noyei
&
Co.
to
head group in United
and
Bear,
May, 1957,
•
Stearns & Co., both of New York*
States. ~ Offering—Expected in
v
/•
Northern Pacific Ry.
•"
'
A
(5/16)
Bids will be received
.
'
■
,
by this company up to noon (EDT)
May 16 for the purchase from it of $6,420,030 equip¬
Probable bidders: Halsey, Stuart
& Co.
Inc.; Salomon Bros. & Hutzler.
Northern
<
4
it
Co.
Underwriter—May be
bidding. Probable bidders:
Kuhn,
Power Co.
States
(Minn.).
was
be determined
construction
program.
Underwriter—To
by competitive bidding. Probable bidders:
halsey, Stuart & Co. Inc.: Merrill Lynch, Pierce, Fenner
Kidder, Peabody & Co. and White, Weld &
(jointly); Lehman Brothers and Riter & Co. (joint?*
and Beane,
Co.
;ly); The First Boston Corp. and? Blyth & Co., Inc.
(jointly); Equitable Securities Corp.; Kuhn, Loeb & Co.j
Harriman Ripley & Co. Inc.
'
(
Outboard Marine Corp.
April 22 it
tional
was
announced company plans to offer addi¬
(sufficient to raise about $10,000,-
stock
common
000) first to stockholders and sell publicly $10,000,000 of
debentures or notes.
Underwriter—Morgan Stanley &
Meeting—Stockholders will vote May 24
proposals and a 3-for-l stock
Co., New York.
approving
on
financing
.
Power
&
Light Co. ^ "
McKee, President, announced that
raise about $30,000,000 between
and the end of the year. Stockholders on April 16
April
17,
Paul
B.
company: expects
now
to
approved an increase in the authorized serial preferred
.stock by 250,000 shares and the common stock by 1,200,000
shares.
The
type
of financing has not been deterr
mined, but it is anticipated that about one-third of the
required will be raised around mid-year and the
balance in September or October.
Underwriter—To be
funds
Jan. 3, 1956, it was announced company plans to
merge
its subsidiaries, Essex County Electric
bond
are no
Northern Ontario Natural Gas
Pacific
company
$10,000,000 of first mortgage
^
"
split.
was
^
,
May 9 it was announced stockholders will vote June 11«
on approving a new issue of 300,000 shares of preferred
Proceeds—For
company
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; The First Boston
it
<
.
reported company plans to issue and
sell in the Fall of 1957 $15,000,000 first mortgage bonds.
plans to issue and
$30,000,000 of first mortgage bonds. Proceeds — To
repay bank loans and for construction program. Under¬
14
«
i
;
it Northern Illinois Gas Co.
March
-
Michigan Consolidated Gas Co.
.Montana-Dakota
:
-
Inc.; Salomon Bros. & Hutzler.
on
Stuart & Co. Inc.; Salomon Bros. & Hutzler.
March
(6/13)
ment trust certificates.
expected to be received by the company some
it of $14,400,000
equipment trust certificates.
Probable bidders: Halsey,
Blyth
Union Securities & Co.. (jointly).
trust certificates.
are
Corp.;
bidders:-Halsey, Stuart & Co. Inc.: The First
Corp.; Morgan Stanley & Co.; Kuhn, Loeb & Co.
June 13 for the
time in the Fall for the purchase from
able bidders:
^
was
* Norfolk & Western Ry.
competitive
announced
f
Probable
bidding. Probable
bidders: Halsey, Stuart & Co. Inc.; The First Boston
Corp. and Blyth & Co. Inc. (jointly); W. C. Langley &
Co. and Smith, Barney & Co. (jointly).
was
(5/21)
reported company tentatively plans to
issue and sell this fall about $40,000,000 of bonds.- Un¬
derwriter—To be determined by competitive bidding. -
April 22 it
March 1 it
plans to sell later
mortgage bonds, series J.
Proceeds—To refund $12,000,000 of series C bonds due
Jan. 1, 1958 and for construction program. Underwriter
was
$40,0o0,000
year
Shipbuilding Corp.
Niagara Mohawk Power Corp.
v.
/
Long Island Lighting Co.
—To
&
of
sell within
New York
May 7 it was announced that a secondary offering of
191,660 shares of common stock isl planned. This is part
of 211,254 shares for which a registration statement with
the SEC recently became effective.
Proceeds—To Merritt-Chapman & Scott Corp. Underwriter—A. C. Allyn.
near
750,000 shares of common stock
(par $4).
be supplied by amendment.
Proceeds—To
selling stockholders. Underwriters—The First Boston
Corp., New York; Dean Witter & Co., San Francisco
Calif.; and Carl M. Loeb, Rhoades & Co., New York.
Loeb
&
Company;
,
Probable bidders: Halsey,
Co. Inc.; Salomon Bros. & Hutzler.
trust certificates.
equipment
Boston
Price—To
of
are
and Eastman Dillon,
reported registration is expected in
,
expected to be received by this company some
time in June for the purchase from it of about $6\j0u,00i)
Underwriter—The
Industries Corp.
April 15 it
Brothers
Bids
$25,000,000 installment due April
1, 1957 on its 4%% term loan may have to be provided
by the creation of debt by, or the sale/of equity securi- J
ties, of this corporation or Henry J.' Kaiser "Co., Or
through the public or private sale of a portion of the
securities of the companies owned by the Henry J.
was
was announced company plans to issue and
$5,000,000 of first mortgage bonds. Underwriter-^be determined by competitive bidding.
Probable
bidders:
necessary to meet the
Co., Lowell Elec¬
Electric Co.
reported company now expects to issue
and sell in the second
quarter of 1957 $11,000,000 of first
mortgage
to 11
Jersey Power & Light Co.;
12 it
man
(7/16)
Nov. 28, E.'E. Trefethen, Jr., Executive Vice-President,
stated that it is anticipated that a portion of the funds
common
handled
plans
sell
company up to noon
June
company
issue of convertible deben¬
changed to $15,000,000). Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Kidder, Peabody & Co.; The First Boston
Corp.; White, Weld & Co.; Eastman Dillon, Union Secu¬
rities & Co., Salomon Bros. & Hutzler and Merrill Lynch.
Pierce, Fenner & Beane (jointly). Bids—Expected to be
April 24 it
on
New
To
Jr., announced
Co.,
expansion program. Underwriter
by competitive bidding. Probable
determined
be
Sept.
sell
Jersey Central Power & Light Co.
up
(par
Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co.;.
Morgan Stanley & Co.; Shields & Co.; White, Weld &
Co.; The First Boston Corp. Bids—Tentatively expected
to be received on Sept. 11.
r
Proceeds—For expansion program.
received
pro¬
bidders:
Sulphur Co.
an
Proceeds—Together with
900,000 shares of common stock
to parent, American Telephone & Telegraph
—To
Sept. 12, it was announced company plans to issue and
sell $8,000,000 of first mortgage bonds due 1987 (later
Bids
increase in the
an
•
(9/11)
will be used to pay for
Louisville & Nashville RR.
Illinois Power Co.
March 29 stockholders
approved
thorized serial preferred stock
Fenner
tures.
this
Houston Texas Gas & Oil Corp.
March 6 it was reported that
Lake
Dec. 27, Eugene H. Walte,
in the near future to sell
may
(jointly); Lazard Freres & Co. and Blyth & Co., Inc.
(jointly); Kidder, Peabody & Co.
company
—
Kaiser
$2,000,000 of first mortgage bonds, series F, at
interest rate not to exceed 6%.
announced
plans to issue and
sell $5,000,000 of first mortgage bonds later this year.
Proceeds
To repay bank loans and for construction
program.
Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Kuhn, Loeb & Co.; White, Weld & Co.; Lehman
Brothers, and Bear, Stearns & Co. (jointly) Equitable
Securities Corp. and Salomon Bros. & Hutzler (jointly);
The First Boston Corp.; Dean Witter & Co.
was
March 13 it
plans to issue and
„
announced company plans to issue and sell
was
$30,000,000 of debentures.
$100)
April 2 it
(Hawaii)
announced company
was
Eastman
Jersey Bell Telephone Co.
May 1 it
Smith,
Iowa Southern Utilities Co.
Securities
thers and Equitable Securities Corp.
SHutzler,
Offering—Expected in first half of 1957.
10 stockholders approved a new issue of 50,000
shares of cumulative preferred stock (par $100). Pro¬
Jefferson
May 6 it was announced company plans to issue and sell
shares of common stock (no par). Proceeds—
About $8,000,000 to repay bank loans and for new con¬
struction. Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Merrill Lynch, Pierce,
Fenner & Beane and Lehman Brothers (jointly); Stone
& Webster Securities Corp.; Carl M. Loeb, Rhoades &
Co. Bids—Expected to be received up to 11 a.m. (EDT)
Thursday, May 16, 1957
April
(6/18)
200,000
.
Dillon, Union
Co. (jointly);
Lehman Brothers; The First Boston Corp.;
Equitable
Securities Corp.; Merrill Lynch, Pierce, Fenner &cBeane,
Kidder, Peabody & Co. and White, Weld & Co. (jointly).
sell
Gulf States
.
and Wood, Struthers &
Securities & Co.
(jointly); Dean Witter & Co.;, Lehman
Brothers; Equitable Securities Corp.; Blyth & Co., Inc. ,
and
$16,000,000 first mortgage bonds late in June. Pro¬
ceeds—To repay bank loans and for construction pro¬
gram.
Underwriter—To be determined by competitive
bidding.
Probable bidders: Halsey, Stuart & Co. Inc.;
Merrill Lynch, Pierce, Fenner and Beane and White,
Weld & Co.
(jointly); Salomon Bros. & Hutzler and
Eastman Dillon, Union Securities & Co. (jointly); Kuhn,
Loeb & Co. and A. C. Allyn & Co. Inc. (jointly); Stone
& Webster Securities Corp.; Lee Higginson Corp.
Bros.. &
Salomon
Corp.; Harriman Ripley & Co. Inc;|s
Union Securities & 'Go,, and White,
Co.
&
.
determined
by
competitive bidding.
Probable bidders:
(1) For bonds: Halsey, Stuart & Co. Inc.; Lehman Broth¬
Bear, Stearns & Co. and Salomon Bros. & Hutzler
(jointly); Eastman Dilloii, Union Securities & Co. and
Kidder, Peabody & Co. (jointly).
(2) For preferred
ers,
stock:
Kidder, Peabody & Co. and Eastman Dillon, Union
& Co. (jointly); Blyth & Co., Inc., Salomon
Securities
Bros.
& Hutzler and
White, Weld & Co. (jointly).
Volume 185
Number 5638
...
The Commercial and Financial Chronicle
.
Pacific Telephone & Telegraph Co.
Jan.
South Carolina Electric & Gas Co.
James S. Cantlen, Vice-President, announced
thai company plans to spend $159,000,000 in 1957 and
$157,000,000 in 1958 for expansion and improvement to
be financed in part, by debt borrowings and stock issues.
14,
About 90% of Pacific's stock is owned by American Tele¬
phone & Telegraph Co.
Underwriter—For
any
bonds, to
be deteimined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.
\
Peninsular
March 28 it
announced company plans to offer to its
stockholders
common
stock
mon
on
189,844 additional shares of
funds from proposed
finance
new
basis.
l-for-6
a
Jan.
14 it
reported company plans to issue and sell
was
$10,000,000 of first mortgage bonds.
Underwriter—To be
determined
by competitive bidding. Probable bidders;
Halsey, Stuart & Co. Inc.; The First Boston Corp. and
Lehman Brothers
(jointly); Kidder, Peabody & Co.;
Eastman Dillon, Union Securities & Co. Bids—Not ex¬
pected to be received until next Fall.
Southern Sell
Telephone & Telegraph Co. (6/18)
and sale of $70,000,000 of 29-year debentures due June 1, 1986. Proceeds
Feb. 25 directors authorized the issue
Telephone Co.
was
(2315)
com¬
Proceeds—Together with
bond sale (probably privately), to
Underwriters
Morgan Stan¬
construction.
—
ley & Co., and Cbggeshall & Hicks, both of New York
1 ty■.
^
^ j". ■;
' v. ''
—For construction program.
Underwriter—To be deter¬
mined by competitive bidding. Probable bidders: Halsey,
Stuart & Co. Inc.; Morgan Stanley & Co. Bids—Expected
be
to
received
June
on
18.
Registration—Planned
for
latter part of May.
•
Southern
Pennsylvania
Sept. 12 it
Electric
Co.
issue and
Bell
$6,000,000 of first mortgage bonds. Underwriter*^
determined by competitive
bidding.
Provable,
iOders: Halsey, Stuart & Co. Inc.; Merrill Lynch, Pierce,
enner
& Beane, Eastman Dillon, Union Securities &
o. and White, Weld & Co. (jointly); Equitable Securiies Corp.; The First Boston Corp.; Harriman Ripley &
o. Inc.;
Kuhn, Loeb & Co.
v
o t
be
.
Philadelphia Electric Co.
eb.
it
14
also
was
»
announced
company
plans to issue
nd sell in the second half of 1957 additional first mort¬
Proceeds—For expansion program. Underriter—To be determined by competitive bmamg. ProDhle b5dd^rs: Halsey, Stuart & Co. Inc.; White,-Weld &
o.; The First Boston Corp.; Morgan Stanley & Co. and
rexel & Co. (jointly).
bonds.
age
.
Portland Gas & Coke Co.
arch 26 it
.
..
eb.
it
28
ected of
astman
units of $50
Canada.
n.
registration is
ex-
of debentures and five shares of
expansion
and
working .capital,
Operates shopping centers. Underwriter —
Dillon, Union Securities & Co., New York, for
of
;
issue. / Balance to
be
underwritten
it
11
eries of first mortgage
bonds (about $30,000,000 initially
will be issued and sold by the com1957.
Proceeds — To repay bank loans
cheduled for 1956)
during
amounting to $25,000,000 at Dec. 31, 1956) and for new
onstruction.
Underwriter—To be determined by cometitive bidding. Probable bidders: Halsey, Stuart & Co.
nc.; Blyth & Co., Inc.; The First Boston Corp.; Harrian Ripley & Co.
Inc.; Glore, Forgan & Co.; Kuhn, Loeb
Co., Salomon Bros. & Hutzler and Eastman Dillon,
any,
riion Securities & Co.
(jointly).
Public Service Electric & Gas Co.
pril 15 it
announced company
(6/18)
ell
—
Puget Sound Power & Light Co.
(6/25)
pril 12, Frank McLaughlin, President, announced that
o'mpany plans to sell an issue of $20,000,000 first mort¬
age bonds.
Proceeds—To retire bank loans.
Underriter
May be determined by competitive bidding,
—
robable
oston
bidders:
Halsey, Stuart & Co. Inc.; The First
Bids—To be received on June 25. Regis-
Corp.
Pur
ex
Corp., Ltd.
pril 30 it
(Caiif.)
00.000
,
are to be received by the
company prior to July
1957 from the sale of new capital stock and used for
orking capital. Underwriter—May be Blyth & Co., Inc.,
an
•
Francisco
and
Reading &
New York.
Bates
shares
is
expected.]
Proceeds
—
To
—
Reading Co.
are
(5/23)
expected
to
be
received
by
this
company
on
23 for the purchase from it of $2,550,000 equipment
certificates, due semi-annually, from July 1, 1957,
o
Jan.
1, 1972, inclusive.
Probable bidders:
Halsey,
tuart & Co. Inc.: Salomon Bros. & Hutzler.
ay
rust
San
Diego Gas & Electric Co.
pril 23, E. D. Sherwin, President, announced that cornany will probably raise about $7,500,000 late this fall
hrough the sale of preferred stock. Underwriter—Blyth
Co.,
Inc.,
San Francisco, Calif.
Petroleum
Corp., Box 8834, Britton Station,
City, Okla., of which S. M. Stauffer is Presi-
Oklahoma
dent.
Utah Power &
March 12 it
Light Co.
(10/1)
announced company plans
was
to issue and
sell about $15,000,000 of first mortgage bonds due 1987.
Proceeds — To repay bank loans arid for construction
Underwriter—To be determined by competi¬
bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; The First Boston Corp. and Blyth & Co., Inc.
(jointly); Salomon Bros. & Hutzler; Eastman Dillon,
program.
tive
the
(joint¬
ly); Lehman Brothers and Bear, Stearns & Co. (jointly);
White, Weld & Co. and Stone & Webster Securities Corp.
(jointly); Kidder, Peabody & Co. Bids — Tentatively
scheduled to be received
Utah
company
Power &
March 12 it
Oct.
on
Light Co.
1.
(10/1)
also announced company plans to offer
400,000 shares of common stock. Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Kidder, Peabody & Co. and Merrill Lynch,
Pierce, Fenner & Beane (jointly); Eastman Dillon,
to
was
the public
Union Securities & Co. and
Smith, Barney & Co. (joint¬
ly); Lehman Brothers; Blyth & Co., Inc. Bids—Tenta¬
tively scheduled to be received on Oct. 1.
Valley Gas Co.
April 15 it was announced
by competitive bidding.
Halsey, Stuart & Co. Inc.; Blyth &
Co., Inc. and Merrill Lynch, Pierce, Fenner & Beane
(jointly); White, Weld & Co. and Eastman Dillon, Union
Securities & Co. (jointly).
Bids—Tentatively expected
a subsidiary of
Co., plans to issue,
one year, $4,000,000 of bonds, $1,100,000 of notes
and $900,000 of preferred stock to its parent in ex¬
change for $6,000,000 of notes to be issued in exchange
for certain assets of Blackstone.
The latter, in turn,
proposes to dispose by negotiated sale the first three
new securities
mentioned in this paragraph.
April 15 it was also announced Blackstone plans to offer
to its common stockholders (other than Eastern Utilities
Associates its parent) and to common stockholders of
to be received on June 26.
the
Southern
Jan.
California
Gas
Co.
(6/26)
it
21
was announced
company plans to issue and
$35,000,000 of first mortgage bonds. Proceeds
repay bank loans and for new construction.
Un¬
sell about
Probable
be
determined
bidders:
Blackstone
Stuart & Co.
•
Inc.; Salomon Bros. & Hutzler.
Tampa Electric Co.
May
sell
latter
8 it was announced company plans to issue and
$18,000,000 of first mortgage bonds.
Proceeds —
bank loans and for new construction.
Un¬
repay
be
bidders:
Tampa Electric Co.
was announced
(6/28)
plans to issue and sell
stock, first to stock¬
holders of record about June 28 on a l-for-10 basis;
rights to expire on July 16.
Price—To be set by the
directors on June 26.
Underwriter—The offering may
be underwritten. Goldman, Sachs & Co. acted as dealermanager on last standby.
2
common
Electric Service Co.
Texas
Jan.
it
announced
expects to sell new
capital for its continuing
plant expansion. Underwriter — For any bonds, to be
determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co. and
Merrill Lynch, Pierce, Fenner & Beane (jointly); Hemp¬
hill, Noyes & Co. and Drexel & Co. (jointly); The First
Boston Corp.; Eastman Dillon, Union Securities & Co.;
Kuhn, Loeb & Co., Blyth & Co., Inc. and Lehman Bro¬
thers (jointly); Harriman Ripley & Co. Inc. and Stone
& Webster Securities Corp. (jointly).
was
company
securities during 1957 to obtain
was reported company plans to issue and sell
10,000, additional shares of 5% preferred stock
and to
sell generally some additional common stock
during 1957. Price—Of preferred, $102 per share. Pro¬
ceeds—For working capital
and general corporate pur¬
Underwriters—Emch & Co. and The Marshall Co.,
both of
Milwaukee, Wis.
Timken
common
mon
Roller
(6/10-12)
plans to offer to its
stockholders 484,276 additional shares of com¬
was
stock
on
Bearing Co.
announced
l-for-10
a
split to be voted
upon
company
basis
(following 2-for-l stock
May 28). Proceeds—For capital
Underwriter — May be
expansion.
improvements
and
Hornblower &
Weeks, New York.
TMT
Trailer
holders.
Proceeds—To pay in part the conditional sales
covering 33 Lockheed aircraft. Underwriter—
None.
Utah
was announced company, in addition to pro¬
raise late this Spring $22,000,000 through the
additional, common stock, plans also to sell in
the Fall $20,000,000 of debt securities. Probable bidders
for bonds may include: Halsey, Stuart & Co. Inc.; Kuhn,
Loeb & Co. and American Securities Corp.
(jointly);
Salomon Bros. & Hutzler; Eastman Dillon, Union Secu¬
rities & Co.; Stone & Webster Securities Corp.; White,
of
Weld &
Co.
Wabash RR.
Bids
(5/28)
/
tentatively scheduled
are
^
,
to be received by th.®
May 28 for the purchas®
from it of $6,615,000 equipment irust certificates. Prob¬
able bidders:
&
(EDT)
on
Halsey, Stuart & Co. Inc.; Salomon Bros.
Hutzler.
'
>■.
.
.
•
.
Grand,
300,000
was
•
..
-
•
Washington Water Power Co.
April 1, K. M. Robinson, President, stated that the com¬
pany will probably market an issue of first mortgage
bonds by June 30 (sale of up to $30,000,000 bonds ia
planned). Proceeds—To carry out 1957 expansion pro¬
gram.
Underwriter—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Eastman
Dillon, Union Securities & Co.; and Lehman
(jointly); Blyth & Co., Inc.; Smith, Barney &
Co., and White, Weld & Co. (jointly); W. C. Langley &
Co. and The First Boston Corp. (jointly).
Brothers
•
West Penn
was
additional
of
Power Co.
(7/10)
announced company
plans to issue some
securities, probably about $20,000,909
first mortgage bonds due 1987. Proceeds — To repay
Dec. 27 it
senior
bank loans and for
new
construction.
Underwriter
—
To
competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Eastman Dillon, Union Secu¬
rities & Co.; Kidder, Peabody & Co. and White, Weld
& Co.
(jointly); Lehman Brothers; The First Boston
Corp.; W. C. Langley & Co.; Harriman Ripley & Co. Inc.
Bids—Tentatively scheduled for July 10.
Public
Wisconsin
Service
Co.
April 24 it was announced stockholders will vote May 28
on increasing the authorized preferred to 300,000 shares
the authorized common stock
from
200,000 shares and
from
3,000,000 shares to 4,000,000 shares.
Underwriter—
(1) For preferred stock, to be determined by competi¬
tive bidding.
Probable bidders: Merrill Lynch, Pierce,
Fenner & Beane, Salomon Bros. & Hutzler and Eastman
Securities & Co. (jointly); Kuhn, Loeb
C. Allyn & Co., Inc. (jointly); Kidder,
Peabody & Co.; The First Boston Corp.
(2) For any
common stock (probably first to stockholders), The First
Boston Corp., Merrill Lynch, Pierce, Fenner & Beane,
Co.
Union
and
A.
Robert W. Baird & Co. and William Blair &
Wisconsin Telephone Co.
April 3 it
was
Inc., Reno,
announced
Nev.
company
shares of capital stock.
plans to issue and
Price—At par ($1
Co.(jointl^).
(7/9)
announced company plans to issue and sell
$30,000,000 of 35-year debentures due 1992.
Proceeds—
Underwriter—To be deter¬
mined by competitive bidding. Probable bidders: Halsey,
Stuart & Co.; Morgan Stanley & Co.; The First Boston
Corp. Bids—Expected to be received at 195 Broadway,
New York, N. Y., on July 9.
For
construction
program.
Yale & Towne Manufacturing
April 29 it
sell
Virginia Electric & Power Co.
March 8 it
World
Airlines, Inc.
April 25 it was announced early registration is expected
of 3,337,036 shares of common stock which are to be
offered for subscription by common stockholders on a
share-for-share basis. Hughes Tool Co., owner of 74.2%
of the TWA outstanding common stock will purchase
any securities not subscribed for
by minority stock¬
contract
$2,500,000 of common stock of Valley
is to receive as part payment of certain
properties. Dealer-Manager—May be Kidder,
Peabody & Co., New York.
Dillon,
Inc.
March 20 it was reported corporation is considering
public financing of about $4,000,000 convertible deben¬
tures through Ira Haupt & Co., New York.
Trans
the
Blackstone
&
Ferry,
company,
Electric
be determined by
Thorp Finance Corp.
poses.
&
it
company up to noon
company
217,286 additional shares of
Co.,
sale
determined by competitive bidding.
Halsey, Stuart & Co. Inc.; Goldman,
Sachs & Co.; Stone & Webster Securities Corp.; Kuhn,
Loeb & Co. and A. C. Allyn & CoTlncTTjointly); Mer¬
rill Lynch, Pierce, Fenner & Beane. Bids—Expected to
be received on July 10.
;.:•
Gas
posal to
(7/10)
May 8 it
Valley
within
Gas
• Southern Pacific Co. (7/25)
Bids are expected to be received by the company on July
25 for the purchase from it of approximately $9,000,000
of equipment trust certificates. Probable bidders: Halsey,
May 8 it
Drilling Co.
acquire a
hird offshore unit. Office
Tulsa, Okla. Underwriters
Hulme, Applegate & Humphrey, Inc.; The Milwaukee
o.; The Ohio Company; and Stroud & Co., Inc.
Offerng—Expected in June.
ids
that
Corp. and Dean Witter & Co. (jointly);
Kuhn, Loeb & Co.
(2) For preferred stock: The First
Boston Corp. and Dean Witter & Co. (jointly).
•
Offshore
pril 18 it was announced company plans to do about
2,000,00G additional financing, which will include an
ssue of debentures not to exceed
$1,700,000 and 500,000
hares cf common stock.
[Early registration of debenures
(with stock purchase warrants) and about 170,000
ommcn
added
locally
announced that proceeds of at least $1,-
was
that
Jan. 30 it
ration—Scheduled for May 17.
Stauffer
The First Boston
plani
to issue and
250,000 shares of cumulative preferred stock. Proeeds
About $25,000,000 for expansion program.
Unerwriters—May be Morgan Stanley & Co., Drexel &
o. and Glore, Forgan & Co.
(jointly) or Merrill Lynch,
ierce, Fenner & Beane.
;
was
announced
of $25 par preferred stock early in June
(see
preceding column). Underwriters—(1) For any bonds, to
be determined by competitive bidding. Probable bidders
may include: Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.;
Probable
announced that it is expected that a new
was
He
stock.
derwriter—To
Public Service Co. of Indiana, Inc.
eb.
President,
shares
To
'..;////:/;/• ,;1
'
Quinton,
Co.
will require
more than $180,000,000 of new
money in 1957 and 1958,
in addition to the $37,500,000 bond issue of February,
1957. A total of $70,000,0u0 may be raised in
1957, in¬
cluding about • $30,000,000 from the sale of 1,200,000
—
two-thirds
bout
early
issue of $15,000,000 of subordinated debenand 1,500,000 shares common stock to
Proceeds—For
usiness
that
(Canada):
1932
sold in
e
lock.
reported
was
an
due
ferred
derwriter—To
company
Principal Retail Plazas of Canada, Ltd.
ures
Harold
20,
Edison
the balance of this year the company's present in¬
tention is to issue additional bonds and probably a pre¬
—To
(6/10)
plans offering to cornon stockholders
of 225,976 shares of additional cornon slock
(par $9.50) about June 10 on a l-for-5 basis;
ights to expire about July 1. Underwriting—To be on a
egotiated basis. Registration—Expected late in May.
reported
was
California
for
announced company plans to
was
March
per share).
Proceeds — To explore and develop com¬
pany's 64 uranium claims in two groups,—approximately
1,280 acres in Hells Roaring Canyon and Yellow Cat
Mining Districts in Grand County, Utah. Underwriter—
Union Securities & Co. and Smith, Barney & Co.
"
v
43
Co.
April 11, Gilbert W. Chapman, President, stated that the
company plans some long-term financing.
Underwriter
—Morgan Stanley & Co., New York.
.
44
Makes Records
Assets Cross
Mutual Funds
mutual
22% to a new
$72,707,871 com¬
pared with $59,835,583 in the pre¬
ceding fiscal year, according to E.
Wain Hare, Vice-President of Na¬
at
Research Cor¬
tional Securities &
poration which sponsors and man¬
the series.
ages
year's sales included
capital gains off $10,compared
with
capital
The latest
reinvested
737.309
gains reinvestment of $6,907,199 in
the
preceding year.
April
high at
Net assets of the funds on
30
set
a
record year-end
§303,488,299, a gain of 7% from
the $283,786,512 total reported a
earlier.
year
The number of shareowners and
outstanding
on April
30
new
year-end highs at
shares
also
set
129,727 and 48,466,334, respective¬
ly, compared with 107,182 and
39,633,792 a year ago.
Mr.
attributed the record
Hare
Assets
of
the
members
pany
panies
136
steadily
increasing popularity of
term
fundus concept of long-
reached
$9,463,314,000 at the end of April, up from
$9,105,043,000 at the end of March and $8,615,458,000 for April 30
a year ago, it was announced on May 16,
Purchases of shares by investors continued steady during the
month, totaling $112,989,000, above the $111,709,000 for March and
$107,539,000 for April of a year ago.
Investors
accumulation plans during the
month for the purchase of mutual fund shares at regular inter¬
vals.
This figure v/as lower than the record high of 18,975
reported for March and above the 14,716 plans opened during
April, 1956.
Total accumulation plans in force at the end of
April are estimated to be 520,000.
17,492
opened
new
Redemption of fund shares bjr investors during April totaled
$37,181,000, higher than the previous month's total of $31,706,000
but lower than the April, 1956, figure of $40,810,090.
Open-end investment
company
reduced
were
$521,146,000.
This
repre¬
$3.2 million growth
the first of the
a
assets
in
Delaware
since
W. Linton Nelson, President,
year,
announced.
Mr. Nelson
396.
By
the
reported Delaware's
asset position
current
of striking contrast,
way
total
fund's
at $50,662,-
resources
amounted to less than $600,000
the close of its first
of
This
latest
Fund
of the country's
growing mutual investment
companies. Launched in 1937 as
a
general account for small in¬
vestors in its area, the fund stead¬
gathered
momentum
had
assets
1950
million
ware
and
in
the
$7
reached
Since
level.
then,
Dela¬
has more than quintupled in
outpacing the industry as a
a
cent of total open-end invest¬
ment company assets from 5.7% to 5.1%. A year ago, when the cash
size
figure
was
increased 250% in the same seven-
136
decline in
cash
as
a
per
$435,021,000, it represented
5.1%
of total
net
assets.
The National Association of Investment Companies represents
open-end and 26 closed-end investment companies with com¬
bined assets in
whose
combned
resources
period.
year
No
longer
owned
billicn.
of $10
excess
whole
local
a
concern
by a handful of sharehold¬
Delaware Fund is now a na¬
tionally-known financial institu¬
ers,
Los
Assets $93 Million
Net
income
of
The
To
Investment
Company of America for the first
quarter ended March 31,
1957,
showed
an
increase
of $107,121
over
the corresponding period a
President
ago,
year
Jonathan
Lovelace
reported in an
report to shareholders.
tion whose shareholder ranks
F. A. F. Moves
Angeles Fund
B.
interim
include upwards of 18,000
#
High Yield
Management
action
rities is highlighted in the folder
just released on The Fully Ad¬
ministered Fund of Group Securi¬
ties, Inc.
an d institutions throughout
the United States and abroad.
$2.09
share
a
*
Reports
Fresh foods for
the board of directors at
a
meet¬
ing held in Rio de Janeiro on
April 27,
1957, the report an¬
nounces. Four quarterly payments
of 20
cents per share were
during
1956.
for
payment
made
The first quarterly
1957
also
was
20
cents.
In his letter to the shareholders,
Mr. Henry B. Sargent, President
of
Foreign Power, stated that ef¬
forts
to
develop
for
Foreign
Power Company among investors
market
a
securities of American &
in
the-
with
United
have
States
met
Negotiations have
just been completed for the sale
to
Metropolitan Life Insurance
success.
the
other
and
Export-Import
institutional and
private investors of
$50 mil¬
over
lion of debentures to yield
57/8%.
Consummation of the sale of these
in the front
men
?
Foreign Power's quarterly divi¬
dend was raised to 25 cents by
Bank
On Food News
with
compared
as
$2.08 in 1955.
Company,
TV Fund
1
,
r
individ¬
uals
in
shifting
to higher yield, less volatile secu¬
1955.
Consolidated net income of For¬
eign Power for 1956, which gives
fastest
ily
$1.37 for
-
or $1.63 per share,
with $9,910,000 or
compared
as
effect to its operations in all coun¬
tries served except Argentina, was
report marks Dela¬
as one
$11,900,000
was
year
complete
operation.
ware
ing to the company's annual re¬
port released today. Net income
at
sented
Broad Street
$100 Million
holdings of cash
to $486,731,000 from the March level of
investing."
Assets Now Over
eign Power Company for 1956
represents the highest corporate
earnings in over 20 years, accord¬
climaxing
open-end (mutual fund) investment com¬
National Association of Investment Com¬
of the
pains made by National Securities
in the latest fiscal year to "the
the mutual
The income of American & For¬
have crossed the $50 million mark
Fund Assets Rise in April
ended April 30 rose
high
Fund
of
Resources
fiscal year
Raise
to
$50 Million
$50,000,000
By ROBERT R. RICH
investment funds in the
Thursday, May 16, 1957
.
Foreign Power
in the Na¬
tional Securities Series of
.
Plans
In Fiscal Year
Purchases of shares
.
Delaware Fund
National Series
record
Chronicle
The Commercial and Financial
(2316)
debentures
—
the first1 long-term
refrigeration securities to be sold by Foreign
Administered Fund since the is¬ may become a routine part of the Power in over 25 years — is con¬
vesting Corporation have topped
Net income for the three months suance of the last folder in Octo¬ Army's future feeding program, sidered as a real milestone in the
$100,000,000 — a new high for the
ber 1956 are: Deere, Consolidated according to "Keeping Up," pub¬ progress of the company.
diversified mutual fund, which is ended March 31, 1957, excluding
realized gains on sales of securi¬ Natural
Gas,
Lone
Star
Gas, lished by Television Shares Man¬
Mr. Sargent arso reported that
now in its 28th year, it was an¬
ties, was $672,555, equal to 6.5 Baltimore Gas & Electric, Boston agement Corporation. The process legislative or other programs have
nounced by Francis F. Randolph,
cents a share on the 10,343,886 Edison, Consumers Power, Illinois to be used by the Army will also been initiated
by the governments
Chairman of the Board and Pres¬ average number of shares out¬ Power, Pacific
Gas &
Electric, have significance for the food of Brazil, Chile and Mexico which
ident.
standing during that period. For West Penn Electric. Also added processing industry in the dis¬ are designed to place the electric
Net
of Broad
assets
The net assets
$100,032,000
on
Street
figure went
In¬
up
to
May 8, Mr. Ran¬
Telegraph,
net
income
$565,434,
share on
was
equal to 6.6 cents per
8,540,716 average number of
the
shares
an
increase
the
from,
outstanding
$22.23— period.
■>
Total
year-end
1957,
$8.96
>.,
-
net
that
during
assets
at
March
31,
$93,635,065,
were
with net assets of $95,038,012, or $9.43 per share on the
10,074,300 shares outstanding at
Dec. 31, 1956.
compares
A
MUTUAL
INVESTMENT
report
April
stated
paid
company
1,
two
1957.
A
that
the
distributions
six
cents
per
share
dividend
(amounting
to
$622,260) was paid from net in¬
vestment income, and a 15 cents
per
to
Nmumal
share distribution (amounting
$1,555,557)
was
paid from net
realized gain on sales of securities.
Jiimct/i Btedti S euei
a
Several
portfolio
changes oc¬
during the initial quarter
1957. Holdings that were elim¬
curred
WRITE FOR
of
FREE INFORMATION
inated
YOUR INVESTMENT DEALER OR
Standard
Sanitary, Pepsi-
Cpla
NATIONAL SECURITIES &
RESEARCH CORPORATION
Established 1930
Southern
and
Radi¬
California
Edison.
Holdings
vertible
Added
of
common
to
the
company were
con¬
stock.
holdings
the
of
of
stocks
common
deb.
Eliminations from the
common
Armstrong Cork,
Plywood, Colgate Palmolive,
Merck, Parke Davis, Pfizer, Con¬
were:
tinental
Can, Bucyrus-Erie, Timken
Roller
Bearing,
Ohio
Oil,
Sinclair
Oil,
Standard
Oil
of
California,
Standard
Oil
(New
Jersey),
Standard
Oil
(Ohio),
Co.,
common
Chesapeake
Steel.
Total
&
Ohio,
number
of
letter
reduced from
was
to
dealers
Administered
ciated 1.5%
which
Fund
had
appre¬
during the first
quar¬
In
over
the
1956
the
fund
true
income
increased
18.6%
the previous year,
and since
1954, income has increased 63.3%,
assuming,
with
as
the
figure, that capital gain
tions
were
earlier
distribu¬
received in shares.
ATOMIC
Record
sales
of
Philadelphia
Fund shares for April and the first
MUTUAL
four months of 1957
reported
by Roy R. Coffin, President. April
FUND, INC.
sales
GET THE FACTS AND FREE PROSPECTUS
f
amounted
56%
increase
$139,839
Development Securities Co., Inc.
1033 THIRTIETH STREET, N. W., WASHINGTON 7, D. C.
FEderal
3-1000
first
in
four
totaled
to
were
$218,667 for
over
April,
months
$626,433,
the
1956.
this
up
previously
G.
an
officer of Eck-
&
Co., Inc.
hardt-Petersen
DEVELOPMENT
Tel.
business
Joseph
Petersen & Co. Inc. Mr. Petersen
was
total
For
year
54%
the
sales
over
the
sales of $406,442 in the like
period
last year.
expansion
staff
of
South
of
the
Stock
has
Rodman
La
Salle
New
—
been
R o b
e r
added
t W.
to
the
&
Renshaw, 209
Street,, members
York
and
Midwest
Exchanges. He was former¬
ly with Julien Collins & Co.;" -
their
costs in
in
interest
programs
Calif.
•
Food packages
will
thick
to six inches
be- handled
by the
tain
normally
as
of
the
the
sub¬
will
perishable
through
passed
and
con¬
foods
bv
a
pork, chicken
These will be
the
accelerator
conveyor
and
may
then be stored many months with¬
out
refrigeration because the de¬
vice's
ionizing radiation destroys
bacteria in food.
If
the
Army's program is suc¬
cessful, the publication says, the
way will be open for approval of
the process by the Food and Drug
Administration.
"This, in turn,
would permit the food processing
industry to use radiation process¬
Hayden Stone to Open
Westchester
WHITE
Stone & Co., stock brokerage
open
as
its
the
first
firm,
Westchester
result
of
a
lease
just closed for 3,200 square feet
of ground-floor space in the fourstory office building being com¬
pleted by Sam Minskoff & Sons
Street, White Plains,
it is announced.
With
local currencies.
cost
Hill, Darlington
The Ex¬
as¬
financing
the dollar
involved, the report states.
The
the
be of invaluable
to
in
sistance
report
progress
also
comments
made
in
on
carrying
forward the $500
million construc¬
the period 19561960 launched by the company to
meet the ever increasing demand
for electricity in the areas served
tion program for
by its subsidiaries. This program
would add 855,000 kilowatts to the
System by 1960.
include
not
These figures do
the
three
atomic
plants ordered by Foreign Power.
During
1956,
88,270
kilowatts
were
added to the System's ca¬
pacity. At the end of the year,
construction
was
nroceeding on
370,000 kilowatts of new capacity
and, in 1957, work was begun on
an
additional
318,000 kilowatts,
according to Mr. Sargent.
In his letter, Mr. Sargent points
to
the
amazing
growth
of
Latin
diversity of its re¬
and the growing under¬
America, the
sources,
standing of its people as to the
requirements for private invest¬
ment
the
of
capital, as indications of
future that lies ahead
the For¬
great
of the nations served by
eign
Power
Power's
(Special to The Financial Chronicle)
extending credits to
financing j construction
continues
Branch
PLAINS, N. Y.—Hayden
in
port-Import Bank of Washington
uncooked
vegetables.
beams
up
accelerator
Varian
new
that
CHICAGO, 111.
financing agencies
Cuba and Mexico have
shown
-
Army's
(Special to The Financial Chronicle)
McGowen
ex¬
bv
the
at
at 55 Church
Rodman & Renshaw Adds
a
of
linear
also
help
office
of
eco¬
capital required for
pansion.- --77,''
• • ■/,'V
sidiaries
accelerator
will
securities
electron
an
sound
the new
food radiation center in Stockton,
under
Philadelphia Sales
of
a
a
in Brazil,
engage
name
issue
May
possibilities stem
--Government
struction
on
nomic footing so that it can attract
Calif., by the
Quartermaster Corps for the con¬
Chemical and Westinghouse Elec¬
the
industry
power
ciates of Palo Alto,
ST.
in
the
ing of fresh foods for the general
public."
J. G. Petersen Opens
Own Investment Office
the
to
says.
recent announcement of
a
ac¬
ter of 1957, while the Dow-Jones
Industrial Average had declined
from
products
contract awarded to Varian Asso¬
and
companied the folder pointed out
that the per share value of Fully
4.9%.
from
such
stocks
54 to 49.
A
its
states that these
U. S.
Texas
of
tribution
public, the magazine
The
publication's
tric.
in
through
^Pt. O
Acceptance,
lines without need of
LOUIS, Mo. — Joseph G.
General Electric and International Petersen, member of the Midwest
Harvester.
Other additions were Stock Exchange, has opened of¬
Eli Lilly, Sharon Steel, Stauffer fices at 1811 South Broadway to
ATOMIC SCIENCE
Atomic
Fully
4%s 1972.
Caterpillar Tractor, Collins Radio,
invest
The
England Telephone &
deb. 4%s,
1986 and
preferred stock of P. R.
& Co., Inc. were con¬
Mallory
verted into
Broadway, New York 5, N. Y.
120
American
ator &
FOLDER AND PROSPECTUS TO
included
for
Roebuck
National
The
FUND
Sears
stock held
-
equal to
for each of the 10,453.627
shares
than
outstanding.
This
$21.85.
New
were
1956,
with $94,518,508 at the end of 1956.
was
added
the first quarter ended March 31,
dolph disclosed, and this compared
Per share asset value
Stocks
System.
experience
has
Foreign
shown
each
country must be re¬
garded as a separate entity, with
its own opportunities and prob¬
lems and its
own ways of dealing
with them.
The economic, poli¬
Jr., is now with Hill, Dar¬ tical and geographic diversity relington & Co. of New York. He "sulting from the spread of ooerawas
previously with Hutchins & tions over so many countries is
Parkinson.
"
T
considered ■ as one of the funda-
BOSTON, Mass.—Don P. John¬
ston,
.
_
;
Volume
Number 5638
185
.
.
The Commercial and Financial Chronicle
.
(2317)
*
mental elements of strength of the
share average for the preced¬
ing five-year period. The previous
per
company.
Mr. Sargent feels that the com¬
it
that
to
can
economic
further
sound
the
the
of
growth
areas
burgh
&
West
Virginia in this
August 30 described
it as a "steel road," among other
search and area development ac¬
tivities to broaden the economic things. This is still the case, but
with the exception that the road's
base of the countries served, and
the publicizing of tourist attrac¬ efforts to diversify and to broaden
its traffic base are apparently be¬
tions and opportunities for pro¬
ductive investment. Area develop¬ ginning to bear fruit. Making due
allowance
for
the
month-long
ment studies are currently under
steel
strike
of
last
July,
the
way in Cuba and Mexico, in full
traffic of the Pittsburgh & West
cooperation with government and
Virginia directly allied with steel
civic leaders.
under
are
in
way
embrace
several
economic
<
,
re¬
Foreign Power to be held in New
York for the benefit of sharehold¬
who
the
at
unable to be present
are
annual
Invitations
meeting
in Maine.
gathering,
this
to
column
last
.
The report also refers to an in¬
formal meeting of shareholders of
ers
scheduled for June 26 at 11
a.m.
at
production
to
56%
all shareholders.
nevertheless
of
total
dropped
tonnage as
1956
compared with 61%
vious
for the
pre¬
The
result of this
better
diversification
was
that,
despite the effect of the shut¬
year.
down of steel production last July,
road showed a 7% increase
the
in
in
revenues
Two Hector Street, will be sent to
with the
1956
compared
as
1955 total and net income
showed
a
corresponding gain of
8.6%.
This
Bankers Underwrite
the
Radiation Stock Offer
Radiation, Inc., producer of ad¬
vanced electronic equipment and
systems, is offering holders of its
A
class
186,032
com¬
ratio
at
of
three
shares of class
additional
stock
or
and
stock, rights to subscribe for
mon
A
stock
common
$12 per
shares
of
class
in the
each
for
A
held
stock
common
share
share
new
one
common
of
record
May 15, 1957. The rights will
expire at 3:30 p.m. (EDT) on May
on
27,
i
'i
1957.
An
investment
banking
group
headed by Kuhn, Loeb & Co. and
Johnson, Lane, Space & Co., Inc.,
will
purchase
shares
the
unsubscribed
any
and offer them for sale to
public.
is
group
The
underwriting
acquiring
also
shares of the class A stock
the
exercise
from
129,733
through
rights
purchased
of the principal stock¬
some
holders
of
Radiation.
of
ing been dictated largely by the
exigencies of former dominant in¬
Pittsburgh & West Virginia Ry.
A previous review of the Pitts¬
These programs, which al¬
countries,
These
shares, together with 40,000 cur¬
rently outstanding shares of class
A stock which the group is pur¬
chasing
from
certain
of
such
was
By GERALD D. McKEEVER
not only by providing ade¬
quate and dependable supplies of
power,
but also by carrying on
programs
of economic
develop¬
ready
somewhat excessive on
this basis and is regarded as hav¬
it
serves;
ment.
rate
Railroad Securities
has the obligation to do all
pany
trend
continued well
present year.
has been
all
rate
into
Although there
let-down in the
a
of
over¬
steel -production
that
has been felt noticeably by roads
serving
terests.
that
However, the lusty trend
the
road's earnings has de¬
veloped is inspiring some thought
of the possibility of the reestab-
lishment
good
of
the
former
in
rate
time.
Great Decade of Growth Seen
in net for the first
three months
For Downtown
of this year
is ascribed largely to
gains
in
traffic
derived
from
plants that have been located on
the
for
Department Stores
Well known
line
the
of
past two years
were
road
completed last
mated
that
within
the
which
and
so
or
tion."
1,400 car loads
be
added
from
annually
the
we have seen in more than a
genera¬
Mr. Solomon opines largest individual
retailing unit will
continue to be the downtown department
store, as
It is esti¬
year.
department store official optimistically predicts
oncoming decade a greater increase in downtown
retailing growth "than
about
will
sources.
However, some of
gain is also ascribed to the
further expansion of piggy-back
these
retailers
the
long as such
long-range merchandising and
promotion programs.
adopt
consistent
which
movement
amounted
to
"The growth of
.^owntown re¬ highway and local improvement,
trailers in 1956 as against
tailing, business, civic and other the future of downtown grows
544 in 1955 following the
developments over the next dec¬ brighter. Our cities are not de¬
establishment of this service in
ade will show a far greater in¬
creasing
in
population
despite
January of that year. Piggy-back crease than
suburban
any we have seen in
growth.
Millions
are
service
has
been
confined
to more
than a generation." ',7.77
now being
spent in cities to bring
"overhead"
movement
thus far
That statement was • made by them up to modern
standards. The
since the volume, of this business
Sidney L. Solomon, President of results are already
startling but
has not yet reached a level
that, Abraham & Straus, Brooklyn, and civic
groups
and
city officials
in the road's opinion, would
justify a member of Federated
must continue to work
Depart¬
together
the construction of terminal facili¬
ment Stores, Inc., of which Bloom- to provide
efficient public trans¬
ties for handling originated and
ingdale's of New York City is a portation, correct traffic
problems
terminated shipments.
member.
7":'"r
7', ■7 and eliminate slums.
Our
previous review of the
He was the fourth speaker of
'The regeneration of our
major
Pittsburgh & West Virginia men¬ the Tobe Lecture Series on Retail cities does
not, however, automa¬
tioned the establishment in 1955 Distribution at the
Harvard Grad¬ tically
ensure
success
for
the
of nine new industries along the uate School of
Business Adminis¬ downtown department
1,241
only
lines of the road.
These included
the
Pittsburgh
district, the plant of the Chevrolet Motor
carloadings of the Pittsburgh & Parts division of General Motors
West Virginia for the 13 weeks and
the
Keebler
Biscuit ware¬
ended March, showed a year-to- house at Rook,
Pa., the midpoint
year gain of 3.2% and a gain of of the line of the road, and
of
tration in Cambridge, Mass.
The
series, established in honor of Mrs.
Tobe Coller Davis, fashion and
merchandising consultant known
store.
Stores must modernize with their
cities to meet customers on to¬
day's terms.
Among major stores
now
expanding or modernizing
Tobe, is part of downtown operations are Foley's
a
nationwide program to develop in Houston,
Texas; Jordan Marsh
the plant of the Mark Lumber Co. interest in
retailing among college in Boston; Kaufman's in Pitts¬
at another point on the line, but
graduates.
burgh; F. & R. Lazarus in Colum¬
9.8% for March alone
as
compared
March, 1956 total. By
way of comparison, total Class I work was also started on ware¬
carloadings were down 4.8% for houses for General Cement Prod¬
with
45
*
«
»
the
professionally
as
Solomon, explaining that bus, Ohio. Even E. J. Korvette
future of the downtown de¬ Co.,
one
of the most successful
ucts, Philip Carey and others. A
partment store "had been brought discount houses is opening new
year as compared with the figures far greater achievement was made
into question by a number of re¬ large stores in downtown Brook¬
for the corresponding 1956 period this
year, however, in the location
cent failures of long-established lyn and Hartford.
and the March total showed the of the new
plant of Vanadium
stores with honored reputations"
"Downtown stores that want to
year-to-year drop of 4.4%. The Corporation at Vancorum, Ohio, or
and by the tremendous interest in continue
result for the Pittsburgh^ & West on the line of the road
growing must adopt con¬
just west the
development of the suburbs, sistent long-range merchandising
Virginia has been a gain of 11.7% of Mingo Junction, Ohio;* This
added:
and
promotion programs.
:■.'7;■: 7.:7' %7
in first quarter gross and, despite
They
acquisition was described in the
must keep abreast of the custo¬
Urban Re-Creation
a
6.6% increase in
road's 1956
the first
13
weeks
of
the
current
expenses,
gain of
$96,000
a
43 %% in net
income as compared with the first
quarter of 1956. While much of the
lead
was
one
of
or
yielded by April traffic,
the Pittsburgh & West Virginia is
the
half
dozen
Class I roads to show
a
or
net
of
so
gain in
the
"most
restrained
state¬
Mr.
the
report
as
mers' new purchasing
power and
important single development of
"Immediately following World
higher living standards; customer
the year" and this would seem to War II there were many misgiv¬
be
a
ment
somewhat
since
the first
two
units
ings
as
to the future of downtown
department stores and their shop¬
this
plant, scheduled to be in ping districts. Almost 15 years of
operation in the third quarter of neglect had overtaken our cities
the
current year,
of
carloading for the first 17 weeks furnish 5,000 carloads annually.
and
a
had
expected to
are
been
majority of
allowed
needs, and desires and must
ing
new
big stores
our
to
run
down.
pre-
seqt
the widest assortment of
merchandise with'hew and excit¬
techniques of presentation,
lighting, fixturing and other
improvements.
"The downtown department store
only has a large home market
Virginia extends from Connells- seen
but a market of out-of-town visi¬
stockholders
an
urban areas. Achievements to date
aggregate of inevitable
and
stemmed
from ville, Pa. where it connects with
tors drawn by the
have been truly spectacular—but
169,733 shares—are being offered
city's attrac¬
higher costs of wages and mate¬ the Western Maryland to Pitts¬
tions plus a large captive down¬
to
the general public today by
rials and from a< larger Federal burgh Junction, Ohio, where it they are mild compared to what
town
the underwriters at $14 per share.
we
are
working population from
going to see in the next
income tax accrual. It was re¬ connects with the Nickel Plate. In
which to draw.
Of
net
Suburban shop¬
proceeds of
approxi¬ marked in our
decade.
previous review spite of gains in originated traffic
mately $2,021,000 to be received of the
from newly acquired industries on
"Business and political leaders ping centers, on the other hand,
Pittsburgh & West Virginia
can
expect the major portion of
by Radiation from the sale of the that the
line,
it will
be
largely a now have a new awareness that
expense problem was ex¬ its
their trade only from the subur¬
additional shares, approximately
pected to loom larger for this "bridge" line for as far ahead as the city must be made a better
ban quadrant in which
$1,100,000 will be applied to re¬ carrier because it is such a
they are
highly can be seen although the propor¬ place to live and must be main¬
situated.
duction
of
current
bank
loans efficient
;
operation and that there tion of this "overhead" traffic tained as a mecca of culture, en¬
and to retirement of sundry in¬
City a Mass Market
is
a
decided
minimum
below will tend to become reduced as tertainment and business for its
of
this year.
The
The 132 mile Pittsburgh & West
increase
in
expenses
But in
the
last 10 years we have
the start of a re-creation of
was
not
—
The
debtedness.
balance
of
the
will provide additional
working capital.
The company's electronic equip¬
ment and systems are used prin¬
cipally in the fields of radar and
proceeds
telemetering, high-speed data
processing, special types of testing
facilities
Organized
in
in
1950,
Radiation's
facilities are located
and Orlando, Fla.
and
plants
instrumentation.
and
Melbourne
Sales
fiscal
and
year
amounted
income
weeks
to
revenue
during
Aug.
$2,337,023
31, 1956
and net
ended
to
the
$218,620.
In the 24
Feb. 15, 1957, net
ended
income amounted to $110,791.
Townsend, Dabney Branch
which costs
with
&
Tyson
Edward
W.
Niemeyer
as
representative.
previous
small
(Special to The Financial Chronicle)
J.
E.
Altenhofen is
Stein
1414
Cal.—Gregory
now
Investment
Broadway.
He
with
Ervin
Company,
was
formerly
with
Digitized the FRASERCompany.
for Curran
and,
year
reduction
tenance
Ratio,
missible
held
with
in
in view
its
of
the
only
the
Main¬
undoubtedly
of
the
a
per¬
excellent
physical condition of the road/the
total Operating Ratio was held at
74.4%
compared
as
with
73.3%
"on line"
new
come
traffic
sources
into production. In 1956 the
own
population
dering suburbs.
and
for
its
bor¬
"bridge" or "overhead" traffic of
"The movement of corporations
the Pittsburgh & West Virginia
to the suburbs has been arrested.
produced 39.1% of total
as against 37.4%
in 1955.
"The city's mass
market, cou¬
pled with a central core location,
at the crossroads
portation and
of
new
public trans¬
urban express¬
revenue
domi¬
Many of the country's leading de¬ ways, assures continued
nance for alert active stores.
are spending far
Pittsburgh & West more on improvements of their
"The combined activities of a
Virginia is one of the smallest of downtown plants and operations strong, dominant, well-organized
Class I roads, its stock has been than they are expending on sub¬ and
well-managed downtown de¬
one of the best performers marurban developments.
partment
store,
operating with
While
ketwise
year.
partment stores
the
thus
far
in
the
Reflecting the
current
good
Also Need Suburban Stores
results
branches, in those suburban
areas
where
branches
are
indicated,
operation against the
"There
should be
no
quarrel points the way to the develop¬
and of the road's revenue gain in generally adverse trends affecting about
the
need
for
suburban ment of a department store busi¬
1956, a notable improvement in rail operations thus far in 1957, stores. They are most important. ness in the next decade."
pre-tax margin of earnings was Pittsburgh & West Virginia stock But
the
downtown
department
achieved, this reaching 23.1% of at 28 is selling close to its 1957 store will continue to be the larg¬
gross in 1956 as against 22.6% for high.
This, however, may
not est individual retailing unit in the
Merrill Lynch Open
the preceding year.
Accordingly, necessarily indicate a price U. S. as long as cities exist. No
for
1955.
the
Pittsburgh
As
a
result
of
this
& West Virginia
into the Number 11
ranking by this measure as com¬
pared with its 13th position-in the
moved
roads
Tax
SACRAMENTO,
road
lowest in all Class I—at 26.8% for
1956
as
against 26.3%
for
the
up
in the group of 49
year
and
presented
Joins Ervin EL Stein
the
not be reduced.
the
Transportation Ratio—one
111. — Townsend,
has opened an
office at 210 East Fayette Avenue preceding
EFFINGHAM,
Dabney
can
Nevertheless
the
in
Margins
Class
our
in
I
average
review
this
of
Pre-
column
limitation
in
view
what
of
the
road is doing, but it could be pre¬
single suburban branch of a domi¬
nant downtown department store
mature to
will
gauge the
price poten¬
tial of the stock by the
of
35%
since
1956 high
latter
was
the
achieved when the stock
was
on a
$2 per share dividend basis.
of
March 21.
Although there appears to have
no need, as far as the trend
gains in net income of the Pitts¬
burgh & West Virginia must be
way
gross
revenues
been
pursuing
of
an
and
this
of
net
have
reduced
present
$1.60
quarter
of
increase in
the
road
course.
has
The
income
is
more
previously mentioned 43%% gain $3.11
per
is
the
concerned,
rate
basis
last
in line
in
year,
with
to
the
the
1956
ever
come
to
the
final
latter
net
of
share and with the $2.35
close to the sales'
volume of its parent operation. The
downtown store is alive and kick¬
ing.
Abraham & Straus
ample last
been
It becomes evident that further
sought by
of the road's
as an ex¬
Toledo
opened
Madison
Office
a
branch
office
at
Avenue, under the
616
man¬
agement of Thomas B. Ross.
did the greatest
volume in its history in its down¬
town store
Branch
TOLEDO, Ohio—Merrill Lynch,
Pierce, Fenner & Beane, have
year
even
Two With Walston
with the inclusion
of
(Special to The Financial Chronicle)
highly successful branch stores
in
Garden
City and Hempsted,
BAKERSFIELD, Calif.—Ted F.
L. I. A third branch is now being Conner and Doyle B. Haney have
built
in Babylon, L.
"With
every
I.
slum clear¬
modern office
new
project, every
building completed, every super¬
ance
become
associated
&
with
Walston
Co., Inc., 1704 Chester Avenue.
Both were formerly with Kostman,
Inc.
The Commercial and Financial Chronicle
46
.
.
.
Thursday, May 16, 19511
(2318)
The following
Indications of Current
latest week
week
Business Activity
Indicated
Equivalent to—
„
May 19
castings (net tons)
INSTITUTE:
condensate output—dally average (bbls. of
Ago
95.3
'LABOR—Month
Total
oil
Crude
and
gallons each)
42
7,529,450
(bbls.) at—
Kerosene
ASSOCIATION OF AMERICAN RAILROADS:'
Revenue freight loaded (number of cars)
Revenue freight received from connections
CONSTRUCTION
ENGINEERING
CIVIL
—*
1,880,000
12,264,090
12,634,000
11,979,000
7,952,000
8,339,000
8,248,000
8,135,000
198,332,000
200,222,000
203,310,000
21,165,000
20,163.000
19,729,000
18,349,000
79,119,000
74,898,000
75,295,000
SALES INDEX—FEDERAL
SYSTEM—1947-49 AVERAGE — 100
ELECTRIC INSTITUTE:
Electric output (in 000 kwh.)—
36,800,000
37,594,000
370,489,000
173,596.000
226,762,000
140,395,000
302,467,000
136,221,000
33,201,000
166,266,000
84,876,000
9,620,000
10,000,000
8,320,000
9,826,000
499,000
489,000
387,000
519,000
—May 11
11,286.000
11,695,000
297
308
-Jay 7
a ay i
Jay 7
$64.56
Aaa
r
Group
Utilities
Public
Industrials Group
30.175c
43.675c
May
-May
— May
——-May
-May
ZZZZ
—
16.000c
16.000c
16.000c
15.800c
15.800c
14.000c
14.000c
14.000c
13.500c
13.500c
13.500c
25.000c
25.000c
25.000c
24.000c
98.375c
98.750c
99.000c
AVERAGES:
DAILY
Government Bonds
90.63
94.13
95.77
96.07
96.85
100.65
101.47
108.16
98.88
Group
99.68
107.09
96.85
104.66
89.92
100.32
Total
93.97
94.56
95.32
103.80
Production
14
96.54
97.16
105.17
Public
14
97.1G
97.16
98.09
105.86
3.39
3.35
3.29
Percentage
of
vlay 14
4.02
4.00
3.95
3.45
3.72
3.71
3.82
3.82
3.97
period
OIL, PAINT AND DRUG REPORTER
1949 AVERAGE = 100
Total
stocks in which registered
Apj/ jz
.p '
Apr- 20
sales
Other
Total sales
Other transactions
Total
initiated
on
the floor—
Apr' 2x
Apr- 2°
Apr- 20
purchases
Short sales
sales
Other
Total sales
*
Total
sales
Apr- 20
^0;
sales
Other
•Total s&lcs
transactions for account of members—
Total round-lot
Total
Apr- 20
Apr. 20
purchases
sales
Short
—
-
-—Apr. 20
Apr. 20
sales
Other
Total sales
DEALERS
EXCHANGE
Odd-lot
sales
Number
—
SECURITIES
by dealers
shares
4.42
of
4.10
4.05
Customers'
short
other
sales
Dollar value
Round-lot
sales
of
Number
3.97
3.93
Other
EXCHANGE
Total
round-lot
Short
OF
ON THE N.
STOCK
MEMBERS
Y.
Other
LABOR
—
(1947-49
=
U.
8.
248,935
283,101
289,465
Gas
93
86
93
99
493,679
388,939
490,041
633,043
107.48
110.44
110.85
1.081.760
1,593,190
972,220
248,880
186,220
290,220
963.230
1,310.860
833,680
1,249,540
1,139,520
1,559,740
1,019,900
1,539,760
264,870
423,610
186,800
44,700
27,500
258.890
414.560
232.570
459,260
260,070
318,160
425.430
751,450
345.088
125,100
87,240
63.310
520,319
779,319
474.160
746,185
598,809
904,419
561,400
809,495
2,768.250
1,504,108
265,160
418,680
300,960
1.540,410
1,841,370
1,001,859
1,317,169
969,320
$48,716,705
$63,741,054
$43,334,294
7,562
11.944
6,428
1.149,592
795,590
oil—.
139.2
;
131.6
130.6
139.3
105.0
103.1
125.6
121.'6
106.1
104.8
108.8
108.6
106.6
99.3
98.2
98,3
127.6
127.2
121.9
92.2
91.7
91.1
135.1
134.4
126.7
175.8
175.8
170.8
125.2
124.3
116.8
136.4
135.5
131.4
122.9
122.6
119.2
-—i—
______
L_;
——
________
care
r'
•
106.8
__^
—
V
120.7
111.7
-
126.2
*
boys'—
girls'
I
:
—
___i
care
110.0
107.7
124.0
121.2
(DEPT.
(running
report
AND
LINTERS
month
OF
COMMERCE)—
DEPT.
OF
Stocks
Cotton
March
spindles
BALES:
690,627
month
-
of
i;701,103
1,726,180
14,051.133
15.464.619
118,395
(DEPT.
OF
112,984
151,832
989,636
1,000,302
1,460,308
18,457,000
18,639,000
19,350,000
21,516,000
t.
March
of
as
916.176
684,366
1,654,221
13,099,426
March. 30
L—
March
:_L
30
active
srINNING
COM¬
March
oi
14,542,040
13,151,208
bales)___;
—
consuming establishment as of
public "storage as of March 30_
Linters—Consumed
30
COMMERCE):
21,537.000
21,997,000
18,457,000
18.639,000
19,350.000
spindle hours
Mar."_ 30
8,731.000
8,749,000
11.740.000
Active
spindle hours per spindle in place Mar.
436.6
437.5
$82.00
$82.41
$78.78
88.75
*86.75
84.25
73.30
*73.10
70.49
40.2
40.4
EARNINGS
(000's omitted)
$41,380,676
$54,384,002
$36,407,533
$55,561,855
213,150
300,220
207,030
251.210
802,018
207,030
477,290
363,550
593,630
DEPT.
S.
;
—
I
goods
Hours—
"
All
manufacturing
40.0
:
-
-
40.7
I
goods
1
Hourly earnings—
All manufacturing
_
■
-
:
.
■
.
40.9
40.9
39.2
goods
Nondurable
"
*39.3
39.6
$2.05
$1.'95
■
$2.05
—
*'
Durable
574,240
382,770
409.810
500.160
8.664.580
12,230,160
8.125,180
9,047,350
12,804,400
8,534,990
12,067,740
NEW
11,567,580
(000's
31
88.6
87.1
86.6
76.8
May
125.3
125.4
125.3
121.8
117.1
117.2
§Eased
on
new
annual capacity of 133,459,150 tons as
128,363,090 tons.
tNumber of orders not reported since introduction of
on delivered basis at centers where freight from East St. Louis exceeds
sold
-
EXCHANGE—As
customers'
extended
on
2.06
1.86
1.78
$2,741,225
$2,763,440
of March
omitted):
Member firms carrying
Cash
"
*2.17
2.18
!■__
—
goods _:
STOCK
*•
1.87
goods
YORK
Total
^Includes 760,000 barrels of foreign crude runs.
469.6
OF
goods
Nondurable
i
HOURS—WEEKLY
of March:
LABOR—Month
Weekly'earnings—
A11 manufacturing
25L210
369,720
AND
ESTIMATE —U.
AVERAGE
1.089.070
1,161.536
855.325
May
pound.
112.4
110.5
In
1,094.719
5,649
847,763
All commodities other than farm and foods
a
112.4
110.7
124.2
FACTORY
Meats
cent
134.2
$78,327,849
100.8
one-half
124.5
134.4
114.8
113.0
124.9
92.8
106.9
:;
104.9
MERCE—RUNNING
1,420,324
104.7
of
111.6
—
Consumed
2,667,415
104.3
basis
116.5
and recreation
goods and services—"
COTTON
2,286,185
2,923,419
116.1
—
and
COTTON GINNING
381,230
2,504,739
2,007,559
111.1
Other
2,343,403
1,742,439
101.4
110.7
*
109.0
-
Reading
In
1,772,060
124.4
100.6
operation
apparel
608,443
78.490
129.1
—
Private
290.460
269,270
107.3
129.8
I
112.0
,^.__
fuel
114.7
113.6
111.4
home
and
and
Personal
118.7
118.9
113.2
,__v
Medical
27,700
104.7
1956
100,293
—
Public
268 430
10,380
V
300,220
May
1,
501,995
285,262
—
electricity
fuels
Credit
tPrime Western Zinc
£67,941
Li
L.
at
Transportation
100):
against Jan.
1
Apparel
1,466,530
176,290
May
as
602,288
543,762
1947-49=100—
—
Footwear
88.8
figure.
1,266,412
853,203
Housefurnishings
hand
net
to
margin accounts—
debit
balances—
in
and
banks
in
34.672
28,064
customers.:
U.
S
322,475
313,450
Total
•
of
Market
Member
value
of
listed
Member
ZINC
of listed bonds
826,127
959.8371
207,719,493
223,887.1631
101,316,654
103,832.1651
of
(BUREAU
59,802
MINES)—
75,050
75.61ll
2,158,264
2,341,533|
48,149
44,084
!
January:
production
United
OF
*
2.109,411
S. Govt, issues
borrowings on other collateral,
OUTPUT
Month
Mine
-
820,830
101.604,819
.
shares
Member borrowings on U.
$2,817,2971
31,3341
342.0271
212,328,639
free credit balances
customers'
value
,
*
*
113.9
and
Other
90.2
1957,
$1,868,700
614,372
;.
Women's
117.2
1,
$1,467,575
of
;
;
Men's
89.4
•Revised
383,000
728,338
^
Solid
109.12
90.3
Jan.
$88,700
vegetables————.
Household
Processed foods
of
24,200
——;
bakery products
foods
272,124
May
Monthly Investment Plan.
12.500
24.00C
731,781
Month
—
■
Other
DEPT. OF
products..
$46,900
*13.10C
$1,460,119
INDEX
and
Nondurable
commodities
$51,500
February
poultry and fish_^.__
Rent
-
Farm
12,822
.
products
235,168
Apr. 20
—
of
*10,791
COM¬
*
Dairy
420.4
Commodity Group—
All
and
Meats,
I
387,268
Apr. 20
SERIES
OF
.—
L
407.9
213G50
Apr. 20
NEW
47
14
THE
municipal
sales—
PRICES,
.
13,100
L,;
360,476
STOCK
sales
L: 16 V
CONSTRUCTION—EN¬
home.
at
408.9
TRANSACTIONS
Total sales
v/ ILL;
52
17
March:
Cereals
(SHARES):
sales
WHOLESALE
of
Durable
SALES
ROUND-LOT
AND
ACCOUNT
L
NEWS-RECORD
Fruits
Apr. 20
Round-lot purchases by dealers—
Number of shares
FOR
IN
L
PRICE
Durable
i
TOTAL ROUND-LOT STOCK
33
11,815
SERIES—Month
items
Food
3.40
Apr. 20
Apr. 20
Apr. 20
sales
sales
57
,45
31
Active
sales
Short
102
58
46
BRADSTREET,
DEPT.
—
Food
3.44
3.87
by dealers—
shares—Total
(NEW)
&
March
Spinning spindles in place on March 30—
Spinning spindles active on March 30——
.Apr. 20
Apr. 20
Apr. 20
Apr. 20
sales
Customers'
104
184.576
and
COTTON
—Apr. 20
—Apr. 20
Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales
rLL
construction
Month
All
3.52
3.93
purchases)—t
Dollar value
355
60
L___—
Federal
3.73
ACCOUNT OF ODDON N. Y. STOCK
EXCHANGE COMMISSION:
(customers'
240
26
50
construction.
CONSUMER
SPECIALISTS
AND
104
•
36
construction
State
3.33
tTOCK TRANSACTIONS FOR ODD-LOT
LOT
31
90
(000's omitted):
Final
Apr- 20
Apr- 20
purchases
Short
Apr. 20
initiated off the floor—
Other transactions
32
20
'
Housing
Jpr' ^
sales
23
63
.L
I
U. S.
381,000
PRICE INDEX—
purchases
Short
29
205
26
;
$88,900
April
3.47
4.48
406.3
May 10
ROUND-LOT TRANSACTIONS
FOR ACCOUNT OF MEM¬
BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in
42 V"
215
$51,800
NEW
GINEERING
3.27
3.77
3.97
May 4
May 4
May 4
—
at end of
3.60
' 3.95
: ;
,
3.93
May 4
activity
Unfilled orders (tons)
314
345
2.95
ASSOCIATION:
(tons)
:
,
113
1
^
L-_i
INVENTORIES
Private
96.54
—May 14
COMMODITY INDEX
MOODY'S
NATIONAL PAPERBOARD
Orders received (tons)
23
'
33
development.^.
ENGINEERING
96.54
May 14
—
8
997
<
30
36
Total
89.09
4.14
Industrials
-L
CIVIL
98.88
^ \\
™ay
Group
Utilities Group
Public
L-
23,900
96.23
.
Raflroad
80
LV- V 283
100
i.
L
—
Wholesale
88.40
4.53
~~~~
—
29
buildings
(millions of dollars):
14
14
^ 14
—
—
.
'
-
44
•
service
STATES—DUN
MERCE
35
L
908,
.«
233
Manufacturing
v
13
375
;
INCORPORATIONS
BUSINESS
14
Aa
A
89.88
89.48
Vlay 14
,
Average corporate
Aaa
I
.
of
79
269
-
'
systems
and
i.2j
398
•V
35
360
and
public
j;v J38*
105.00
100.49
.May 14
.
33
service enterprises..;
other
J"-
'383
-
,
1,094
97.500c
3.99
U. 8.
1
institutional
INC.—Month
■
YIELD
BOND
MOODY'S
All
15.800c
12.500c
14
May 14
———————
V
Group
45.425c
29.975c
15.800c
1———————I———May
—I—
31.575c
12.000c
May
May
—
—
———•
31.600c
L_L
—
;
Conservation
■f
15
;_
:
$53.17
$oU.29
16.000c
May
May
May
May
"~2I——
Railroad
$42.67
29.575c
«
„
;V-Jay °
—
.
Baa
Public
-
29
'24
-919
-
105
307
;
water
-.40
.
"1
"
—
BUSINESS
May 14
---
-
•
23
:
J
430
•
___!
and
Sewer
'
AVERAGES:
PRICES DAILY
Bonds
corporate
$o4.o6
$42.83
25
86
...
Military facilities
Highways LL-—L
53
.
36
23
—
nonresidential
Other
174
40L
•
119
telegraph—
—
and
-98
154
.
-
.
.
private
UNITED
■
S. Government
Average
$64.56
$44.17
—-
:L—
I
•
37
Educational
5.179c
5.670c
5.670c
J
•_
-
38
^_
:__
and
/L;
63
33
:
i
—!
Water
5.670c
252
■
'I
191
64
_
—
Li.
construction
Sewer
„
1
Industrial
258
W
v
131
"
buildings.
Nonresidential buildings
10,637,000
267
239
*
j
us
'
189
Residential
125
31.575c
at
refinery at
York).at
Lead (St. Louis) at
jZinc (delivered) at
Zinc (East St. Louis) at———.
Aluminum (primary pig. 99%) at—
Straits tin (New York) at
U.
Public
56,691,000
11,311.000
May 9
(New
MOODY'S BOND
130,510,000
,
625
.
249
•
;
125
128
—
Telephone
other
L
L,
LOther public utilities
-
All
113
33
.
269
253
—
utilities
Hospital
123
134
1,090
109
: :"
709
garages—
construction
187,201,000
...
v'l 713
warehouses———.
and
L__
Administrative
..--i,
Export
Lead
141,886,000
34
'
271
institutional
Miscellaneous
$557,690,000
117,714,000
■L
34
Social and recreational..—
*
Farm
Railroad
$344,476,000
INC.
refinery
1.232
94
I
restaurants,
Educational
673,974
173,545,000
114
_______
Other nonresidential buildings
Religious
.
770,558
624,122
May 4
AGE
Domestic
,
Public
Electrolytic copper—
1
'644,092'
RESERVE
COMPOSITE PRICES:
; '
Finished steel (per lb.)
+
Pig iron (per gross ton)———
—-——
Scrap steel (per gross ton)
METAL PRICES (E. A M. J. QUOTATIONS):
■
690,789
595,119
$476,032,000
——
2,424
:M
890
_
LL
buildings and
Stores,
:v
*
718,924
940
alterations
and
Hospital and
610,677
(COMMERCIAL AND INDUSTRIAL) — DUN &
BRADSTREET,
1,018
*
Office
33,216,000
211,609,000
EDISON
FAILURES
2,228
1,088
units.
Commercial
63,990,000
37,571,000
OF MINES):
DEPARTMENT STORE
)
$3,421
$3,136
2,365
Industrial■■L-.—-_--—_L—
...
$385,205,000
coal and lignite (tons)
Pennsylvania anthracite (tons)-
$3,459
r__
______—
Nonresidential buildings ————L->—_
189,220,000
—May
May
—May
May
-May
—•
—;
OUTPUT (U. S. BUREAU
1,648,000
12,352,000
May
-May
i——
Ago
(nonfarm)L—1—_
Nonhou.sekeeping
ENGINEERING *
—
Bituminous
OELON
2,048,000
dwelling
Additions
24^725,000
2,276.000
25,683,000
26,211,000
"
Federal
COAL
7,664,000
—-May
NEWS-RECORD:
U. 8. construction
construction
Public construction
State and municipal
New
7,084,433
7,856,000
(no. of cars)—May
Total
Private
7,614.200
7,634,000
26,214,000
—-—May
May
May
——————
Distillate fuel oil (bbls.) at
Residual fuel oil (bbls.) at
7,536,550
fi 7,633,000
to
runs
Year
Month
OF
"
stills—dally average (bbls.)
May
Gasoline output (bbls.)
—
—:
May
Kerosene output (bbls.)
•
—May
Distillate fuel oil output (bbls.)
May
Residual fuel oil output (bbls.)
——
—-——
May
Stocks at refineries, bulk terminals, In transit, in pipe linesFinished and unfinished gasoline (bbls.) at
—_——May
Crude
DEPT.
construction
Residential buildings
May
—
of that date:
Previous
millions):
of April -(in
construction..—.
new
Private
AMERICAN PETROLEUM
S.
CONSTRUCTION—U.
BUILDING
2,345,000
2,313,000
either for the
are
are as
,atest
Ago
90.4
*2,220,000
§2,251,000
of quotations,
cases
Year
.
gteel ingots and
in
or,
lonth
Month
•86.7
§87.9
that date,
on
production and other figures for the
cover
Dates shown in first column
month available.
Week
Week
May 19
or
month ended
Previous
Latest
AND STEEL INSTITUTE:
steel operations (percent of capacity)
IRON
AMERICAN
or
statistical tabulations
States
of
(in
recoverable
short
tons)
zinc
in
L
the
—
41.01S
Number 5638
185
Volume
.
.
The Commercial and Financial Chronicle
.
the company will be opening
tor
bidsvBLSL
-While
the
market's
bond
havior has not been
issue
field,
undertone
the
new
current
the
in
IIaU flntinA1
I 0 YlUlu
debt
nurr
a
stock
S
ll11?,
buyers
of
observers report.
1957, at the Philadelphia Cricket
current of-
Bankers sponsoring
renewal
investors who
stitutional
adopted the belief that there
need for haste in taking
have
is
no
down
issues.
new
prevailing attitude has de-
The
veloped since the recent none-toosatisfying refinancing operation of
the Treasury. It will be recalled
that
in
that
undertaking some
decided to take cash instead
new securities
offered in ex-
23%
of
customers
that the new issue
potential
aw'are
well
are
is
calendar
substantial
quite
look
to
inclined
parently
for
So they are ap-
weeks ahead.
the
to-
at
day's offerings and then sit back
and
wait
for
a
glance
at the
Their
of
lot
easier, particularly where the
element cf competitive bidding is
involved.
■
must
tractive
investor
the
io
not
have
efforts
recent
Some
well,
as
highly successful. Buyers
have
been
sluggish and inventories have expanded a bit.
proved
and
awarded
°''
.
FRANCISCO,
of
be
refunding
of
$70,000,000
Co.'s
Telephone
York
New
bonds
mortgage
on
ThiCp.bitri,,Lb„e.we^?hTw5;
(lay. Proceeds, t0«u "
from
sale
to
slock
shares
of
Telephone
&
1,400,000
of
Ameiican
Telegraph, will
be applied to re-
payment of bank loans.
General Telephone
Corp. cf N. Y., has $46,000,000 of
Meantime,
convertible
due
stockholders
each
for
offering to
rate of $100
held. Public
for
the
at
shares
30
000,000 of bonds up for bids and
Steel Co. will be offering
of debentures.
$22,000,000
Brisk
The
Week
will
week
new
rather
substantial
Earl
1646
Street
to
Peter
Morgan Appoints
Solowey
D.
in
engage
Partners
business.
equity
offering,
of
will
These
holders.
largest on record
industrial corporation.
NOTICES
at
record
ratio
the
10
shares
pire
on
With
the
Co. Incorporated, 23
of
one
held.
June
of May
new
Rights would
Assistant Secretary.
an
assigned
the
to
Mr. Gile
1950.
selling
scope
terms
Equity
cur¬
Offers
On Wednesday, Niagara Mohawk
Power
200,000
Corp.
will
shares
of
be
Morgan's
Yale in
its
marketing
preferred
large
680,000 shares of
projected
Power
common
the market the
day
same
while
has
quarterly
a
($.04)
cents
of
51/2%
of
the
Series
oompany
stockholders
of
June
on
Preston
Ave., Houston, Texas
company
on
Cumulative Preferred
payable July 1, 1957,
record
20,
at
close
the
of
1957.
Vice
A.
KENNEDY,
President
Si
NNCSMI
COR*O«*Tl0«
Secretary
TENNESSEE
CORPORATION
NATIONAL SHIRT SHOPS
OF
DELAWARE,
Board
of
INC.
NO.
May 8, 1957
63
Directors
declared
quarterly
on
31,
22,
dividend of 20c per
the
common
stock
payable
1957 to stockholders of record
1957.
Transfer books will not
(55c)
the
declared
1957, to
Board
ord
fiftyfive
share was
payable June 25,
stockholders of rec'
cents
closed.
COLE
of
dividend
A
a
at
per
the close of business
10
John G. Greenburgh
109
of
Forty-five
61
TEXAS GULF SULPHUR COMPANY
The Board of Directors has declared
a
Broadway
Treasurer.
•
„
New York 6,
N. Y.
..
divi¬
dend of 50 cents per share on the 10,020,000
shares of the Company's capital stock out¬
record
standing and entitled to receive dividends,
payable June 15, 1957, to stockholders of
June^ ^
Brooklyn,
president
record
the
at
close
of
business
May 27,
1957.
E. F.
N. Y.
VANDERSTUCKEN, JR.,
Secretary.
^
j
GAS
:
SOUTHERN
1
NATURAL
1
COMPANY
mas-
"
s
l
o
m
onerations denartment
bank s operations department.
DETROIT
STEEL
Carroll
F.
#«,
St.
the
has
First
been
'
dend
of
$.25
a
a
:
the
Bank
Common Stock of Southern
J
Natural Gas Company, payJune
13,
1957
to
5
on
■
the
Stock
:
able
stockholders of record at the
:
3
cash divi-
share
on
■
73rd Consecutive Dividend
close
business
;
:
31,1957.
of
on
The Board of Directors of Rome
Cable
Corporation
has
declared
for
:
share on the Common
Capital Stock of the Corporation,
payable June 28, 1957, to holders
I
consecutive
Dividend
No.
73
35 cents per
R. A. Yoder
Vice President—Finance
associated
National
declared
been
has
5
payable June
12, 1957, to holders of record
at
the close of business May
29, 1957.
Bankers
Burton
■
dend of 50
■
1957, the Board
April 26,
of Directors voted
1
f*
*/?"
^ect*d President of the its sixtyMissouri
Association at
,
regular quarterly divicents per share
A
:
CORPORATION
■
On
Common
•
■
:
Missouri Bankers Assn.
Mo
:
Common Stock Dividend No. 73
S
COMMON STOCK DIVIDEND NO. 109
LOUIS,
;
:
Burton President of
ST.
Birmingham, Alabama
•
th*
the close of business
of
in
record
on
;
May
:
H. D.
'
McHENRy,
;
Vice President and Secretary.
•i
J
5
Dated: May 11, 1957.
:
June 14, 1957.
at
*■■■■*■■■•■■■»■■»■»■■■■■■■■■■■■■■■■■■■
..2
Gerard A. Weiss, Secretary
Louis since 1948.
Rome, N. Y„ May 9, 1957
EARNINGS STATEMENT
ALUS-CHALMERS
SERBORRD
MFG. CO.
COMMON
DIVIDEND
No.
132
A regular quarterly dividend of fifty
cents (50c) per share on the issued and
outstanding common stock, $10 par
Riegel
erally
in
Paper Corporation has made gen¬
available to its security holders
accordance
with
of
Act
Section
1933,
as
11(a)
of
the
amended,
an
period
ended
riod
after the effective date
Company's Registration filed on
6, 1956 with the Securities and
of
March
31,
1957,
such
pe¬
beginning
the
March
Exchange Commission (SEC File No. 212267)
relating
to
194,155
Shares
of
Common Stock
($10 par value) and $6
million
3% % Sinking Fund Debentures
due 1981. Copies of such earnings state¬
ment
will
be mailed
to
the
Company's
security holders and to other interested
parties upon application to the Company.
RIEGEL PAPER
CORPORATION
Madison
New
York
Avenue
16,
N. Y.
By J. Bicknell Lockhart, Jr.
Secretary
Co.'s
on
four
1711
COWANY, INC,
Dividend No.
tration from New York University
jn
19-6
and js assigned
t0
stock
due
Directors
dividend
per share
on common stock payable June
28, 1957 to public stockholders
of record June 7, 1957.
of
from
a
of
Board
declared
declared the regular quarterly
$1,375 per share on the out¬
dividend
Stock
this
with
He received
1950.
The
June 6,1957.
MANUFACTURING
graduation
since
260
offering I is Interstate
1957,
of
ter's degree in business adminis-
stock.
Another
15,
Directors
standing
©
230th
May
16,
1957
finance
COMMON
CONSECUTIVE CASH
value, of this Company has been de¬
clared payable June 29, 19.57 to share¬
holders of record
ness
at
the close of busi¬
June 3, 1957.
DIVIDEND
A
dividend of twenty-five cents
($.25)
4.08% PREFERRED DIVIDENED No. 12
company
STOCK
89th Consecutive
DIVIDEND
Quarterly Payment
upon
a
share has been declared
the stock of Burroughs
payable July 20,
board Finance Company
declared
regular quarterly dividend of 25
cents a share on Common Stock,.
a
Corporation,
A
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 lieen declared, pay¬
able June 5,
record
at
the
payable
1957, to shareholders of record
at the close of business June 21,
holders of record June 20, 1957.
business
Sheldon F. Hall,
Vice President
May
and
22, 1957.
Transfer books will not be closed.
Checks will be mailed.
Secretary
Detroit, Michigan,
May 9, 1957.
W. E. Hawkinson,
Vice President and Secretary
May 8, 1957
July 10, 1957 to stock*/
PREFERRED STOCK
1957.
1957 to shareholders of
close of
i
The Board of Directors of Sea¬
earnings statement for the twelve months'
parent.
Other
May
of
Chairman of
general
been
DIVIDEND
Mahlon M.
—
SYLVAN
graduated
was
fr°m Yale in 1939'
Mr.
Klemme
has
Securities
shares
the
ex¬
10.
in the 330-340 range the
cf
this
undertaking,
in
of dollars, is readily ap¬
rently
Board
be
Street, New York City, it was announced by Henry C. Alexander,
Chairman. Carl W. Klemme was
in
each
for
The
share
.an
21
TEXAS TOY
New York 4, N. Y.
Street,
Wall
&
gan
its holders of
close
Broad
25
regular
Mor-
Corp., has 1,050,223 shares sched¬
for offering to
at
Spickler Opens
NEWTON, 111.
May
May
one
for
offices
from
DIVIDEND
DIVIDEND
International Business Machines
uled
M. M.
The
share¬
include
the
President
May 9, 1957
a
are
Gile have been appointed Assistant Vice-Presidents of J. P.
through
chiefly
business
JOHN
Nicholas
and
M. Hickey,
West Wildwood.
of
outpouring
the medium of "rights," to
510
close
May 29, 1957.
Opens
ANTONIO, Texas — Leon
E. Schumacher is conducting a se¬
curities
on
pay¬
1957 to stock¬
June 14,
holders of record at the
Wm.
L. E. Schumacher
Solowey.
Atkin and Cile
with
a
of business
Loeb, Rhoades & Co.
business
Donald R. Atkin and Clement D.
Mr.
bring
Carl M.
UNION, N. J.—Midas Securities
has been formed with offices at
seventh annual convention.
Inequities
able
share
STOCK,
the COMMON
Avenue. Mr. Hillen was
previously with Purcell & Co. and
to
Service Co. of Colorado has $30,Acme
securities
a
CITY INVESTING COMPANY
Form Midas Securities
securities
J. P.
in
will
engaging in
divi¬
semi-annual
a
dend of 10 cents per
TEXAS TOY COMPANY
Calif.-
Walter H. Hansen is now with
Hooker & Fay, 221 Montgomery
Street, members of the New York
& Pacific Coast Stock Exchanges,
nc
Both
offering
Largest
John A.
—
DIVIDEND NOTICES
able in the way of activity
nublic
N, N. Y.
at
.
considerin new
it being
promises
is
(Special to The Financial Chronicle)
hanking department, Mr. Atkin
and Mr. Gile have been with the
offerings the
bulk of
Morgan bank since 1950 and have
via the negotiated route. Approxi- been
Assistant Treasurers since
mately $201,000,000 of debt se- 3953.
Mr. Atkin was graduated
curities
are
slated,
chiefly
by fr°m McGill University, Montreal,
week
Next
Hillen
With Hooker & Fay
Tile entire issue of certificates
is to be secured by 55 Diesel-electrie ; road switching locomotives
and 2'000 hopper cars, estimated
to cost $26,091,030.
Associates in the offering are:
Drexel & Co., Eastman Dillon
Ahead
Issues
be
Golf
outing dinner to
„
SAN
appointed
Big
annual
Martins,
of-
to 4.25%, according to maturity,
Issuance and sale of the certificates are subject to authorization
of the Interstate Commerce Corn-
his bids to the
gauge
The Board of Directors has
declared
SAN
and
are
A U B U R
The certificates, first installment of Robt. Glendinning & Co. and Spickler is conducting a securities
of an issue not exceeding $20,700,- Harry K. Hiestand, of Reynolds business from offices at 104 Owens
000, are scaled to yield from 3.90% & Co.
Street.
,
prevailing market and then hope
that
such
conditions
prove
at-
•
Hutzler
&
(May 16)
The UNITED Corporation
J. A. Hillen Opens
be held at Flourtown.
underwriter
the
any
He
Ry. Equip. Gtfs.
Martins.
prizes will
first
St.
and
Arrangements to participate in
the day's activities can be made
fering $9,000,000 of Chesapeake through
the
outing
committee
and Ohio Railway 4X,4% non-callwhich consists of Henry Ingersoll,
able serial equipment trust certifi- of Smith, Barney & Co.; Edward
cates, maturing annually June 1, Ryan, of Merrill Lynch, Pierce,
1958 to 1972, inclusive.
Fenner & Beane; Wesley Welsh,
not
attitude does
current
the
make
tennis
Union Securities & Co. and Stroud
merchandise.
newer
the
St.
at
Street.
Hoopes
ming
Bros.
87-60—113th
business from offices at 152 South
and tennis and swim¬
courses
NOTICES
DIVIDEND
day's events will in¬
at
both
the
club's
Pa.
mission.
change.
Moreover
golf
Pa.,
associates today
to
seem
The
Flourtown,
Salomon
have
encountered
this
of resistance among in-
ferings
Club.
G. & 0.
issues,
new
;
Bros. & Hutzler of
stubbornness among po¬
tential
curities
^
Offering by Salomon
market is being reflected in
renewed
a
m?nt Association of Philadelphia
clude
bond
UUIIIlg
mrr
Opens
HILL, N. Y.—Rob¬
is engaging in a se¬
business from offices at
S. Burns
ert
,^ILADELPHIA, Pa. — The
*lrst annual outing of_the Invest-
strong
market,
should it continue, will provide
a
helpful backdrop for the impending run of equity offerings.
Recent behavior of the seasoned
<R. S. Burns
RICHMOND
be-
particularly
a
favorable element in the
l..u
rllllai IllVGSIItlGVIt ASSDi
$20,000,000 of bonds.
.47
(2319)
Burroughs
DIVIDEND
^
V
The directors also declared regu*
lar quarterly dividends of
on
the
$1.18% I
$4.75 Sinking Fund Preon the $5.00
ferred Stock and $1.25
,
1-
Sinking Fund Preferred Stock, both
payable July 10, 1957 to stock-j
holders of record June 20, 1957.
EDWARD L.
April 25,1957
JOHNSON
Secretary
The Commercial and Financial Chronicle
48
.
.
Thursday, May 16, 1957
.
(2320)
"trust fund" outside the budget;
BUSINESS BUZZ
Oil
practically it is
*
Cost
•
•
So
from the Nation's
the
in
costs
the
of
housing bill
And You
Capital
m
Summary
dollars
Behind-the-Scene Interpretations
real expendi¬
a
ture.
millions
of
House-passed
follows:
are as
For college housirjg.150 million
For urban renewal
£.—250 million
gifts
For
rather than
for
Treasury
little
piddling
a
subsidies.
housing loans and
ed
ex¬
of $2.2 billion for assort¬
pense
Democrats
the
Then
came
along with a neat little strate¬
which caught the Repub¬
as
it were, with their
pants hanging on the hook, and
by this strategem themselves
took credit for the modest out¬
gem
pouring of the $2.2 billion.
again banks are not
compelled to make them, and
would have generally rejected
the lower down-payment loans.
v'
Republicans are
forgetting economy. For on the
same day the Senate Appropria¬
the
or
service over
the $2.2 billion to be spent for
housing. As one national radio
network commentator explained
s e n
that the volume
housing construction starts
March, projected on an an¬
nual basis, fell down to 880,000
in
units.
only of loans.
themselves
Committee
bill.
That is because
everybody
gets
in
stantly
tration
friends
Indirect government loans, pur¬
"raiding
not mar¬
are
of
veterans
the
to
the
fund"
NSLI
(non-existent) and the objec¬
of the Administration, like
ketable, outright gifts, and other
assorted benefits.
committee
objection of the
the
of
tion
:
,j„
at
In
due
course
other trustee having to re¬
place a dissipated if legally
dissipated trust, these were sup¬
House
the
posed to be votes for the sub¬
stitute and to kill the commit¬
Banking
out
Committee
reported
its proposed something-tor-
tee bill.
Supposedly it was hll set.
evorybody omnibus bill.
This
that
had
bill
the
The
features
three
Adminis¬
Eisenhower
tration did not like.
One
ence"
ans
was
schedule
whereby veter¬
to pay down
forces
House
Democratic
got
had worked out
have
would
the
quiet
to
a
fooled.
what
buying
the committee bill,
a
house with
ment-insured
A
second
loan.
was
an
a
bill
govern¬
on
would
attempt to
bills—committee
tration
FNMA
bill, Adminis¬
bill
lowances
about
were
—
above
Rep.
for
"sell"
and
in
offer it
Ed
Adminis¬
the
had
tute and it
was
passed. All three
would
&
This
servers
when
leaderships work¬
members
party
floor.
the
on
any
"outsider"
not
tee, has offered
piece
when
the
from
Under the
The
Federal
National
Lone
Pan
more
Theoretically FNMA, which
a legal if not substantive en¬
tity apart from the Treasury,
sells out
Mort¬
until
credit
cated
rates
through a compli¬
of
arrangements
cooked
up
to keep this sum
nominally outside the budget.
ynaze
whose
that
guarantee,
quality
despite
is
the
in¬
govern¬
few
lenders
so
for
co¬
housing
housing,
and
so
the
take them, such
elderly,
of
number
for
as
on.
Treasury
These
through
Ben
«■— a.
St.
m
-
JVSo.
pretation from the nation's Capital
and may or may not coincide icith
unless
the
disappears
so
Asiel &
times
demand
and
New
Company
&
Co.,
York
members
of
the
Exchange,
Stock
an¬
the removal of their offices
to
20
Broad
Street, New York
City.
The firm's telephone and
teletype numbers remain the
same.
housing
With Amott,
get
for
interest
4%, 4Y?% and 5%
individual
views.]
In New Quarters
Asiel
in the
again become so low as to
make
own
small
mortgages
attractive even though
they are long-term deals.
again
as a
the
registered representative with
Philadelphia office of Amott,
Baker
subject of loans the government
insures. It is technically now a
&
Walnut
New
Co., Incorporated, 1420
Street, members of the
York
Mr.
Thus, to all practical purposes
the
Treasury, through FNMA
in "buying" FHA's and VA's is
also financing the housing the
Baker
PHILADELPHIA, Pa—Charles
Boone Doak, Jr. is now associated
with
Stock
Doak,
Jr.
Robinson
&
Exchange.
was
formerly
Co., Incorpo¬
rated.
fhAPING
MARKETS
Campbell Co. Com.
United States Envelope
,0^
Morgan Engineering
National Co.
&
Co. Inc.
Riverside Cement
Flagg Utica
SECURITIES
20 BROAD STREET
Exchange
~
"econo¬
supposedly
Fashion Park
Coal
Louis 2,
of
will
Botany Mills
TEL: HANOVER 2-0050
Arc
aggre¬
Indian Head Mills
Sulphur
320 N. 4th St.
billion
an
In practice it
Steel
Member Midwest Stoc!x
billion
$3
which
A. S.
SCHERCK, RICHTER COMPANY
ct
accumulation of
Pipeline
Star
of
—-r
FOREIGN
SJL 456
and
that
bad
so
Bought—Sold—Quoted
Teletype
its
of
FIlA's and VA's.
net
$300 million
housing at military
a
$2.7
or
This compares with the "tar¬
get"
mies"
nounce
Carl Marks
Bell
$1,250 mil¬
is
expend
insures
of
programs
$1.3 billion,
gate of $4 billion.
$3 billion.
The
leadership's substi¬
orized
FIIA
first the food give¬
the
budget;
outside
plus
than
will not be able to do
to
have
lion.
Association window of the
finance
is
away
further $1.5 billion
a
of America
American
Old
substitute
United States Treasury is auth¬
to
tual true (at
million.
$500
tute boosted this by
"capital grants," that
is, literally gifts to municipal¬
ities
for
urban
renewal, are
raised $250 million.
Delhi-Taylor
Bank
to
$900
Federal
loans
Trans-Canada
Administration
Democratic
gage
Thus, the tentative total of
foreign food give-aways and
housing will aggregate an even¬
the "Chronicle's"
another
creased
to
of
will be
cost of $1.3 billion.
justify the tax cut.
sold.
are
by
raised this
million
a
on
1957), there
[This column is intended to re¬
flect the "behind, the scene" inter¬
availability of money for lend¬
ing for college housing is in¬
$150
such
which did not pass would
passed, the
as
(see this column
the "Chronicle"
of
11,
two
housing
any
The
bill
mil¬
$250
which
this
What It Costs
operative
Anheuser Busch
48
tion earlier in the session raised
entire major
an
legislation
of
theoretically
Before
floor cold and had it passed.
the
Gas
Senate
legisla¬
tion passed this year, the total
limit of this "secondary market"
acquisition was $1 billion. Ac¬
some
commit¬
the
on
loans
cannot
They
case
from
and
chased
have switched bills the last min¬
recollect
another
FHA and VA loans may be pur¬
committee
with
ing
often
remember
can
cir-
thus
Through the FNMA the Trea¬
sury operates a "secondary mar¬
ket" where the less marginal
publican forces flat-footed. Ob¬
will
Olin Oil &
r
,
.
.
_
•
SPECIALISTS
NEW YORK 5. N. Y.
TELETYPE NY 1-971
LEANER & CO.
Investment
Securities
10 Post Office Square,
fl00-
CArnelu 1-022j
4
the
as
the foreign food give
virtually certain to be
by the House as well as
April
"Secondary Market"
caught the Re¬
maneuver
ment
Gas
expensive
as
by appropriations) cost of these
probably cost the most.
loans
Universal Match
un¬
housing, will be
on
Give-Away
page
lions.
but the Administration bill
ury,
ferior
Colorado Oil
that the
bill,
later losses must be made good
installations
Edmondson
(D.,
Okla.) took out of his pocket the
Democratic leadership's substi¬
gov¬
two
substitute
are
bill.
Food
the
in fact finances. Al¬
for "special support"
raised
were
equally expensive to the Treas¬
and
"buys,"
cuitously
substitute, and the Ed¬
mondson
of
tration substitute.
under-priced
if the
what
as
ernment loans.
(Even
on
most
up
in the Administration
*'
limit the discounts the market¬
place puts
and
The
leadership
little deal
write
only one-half what the rest of
the people would have to pay in
was
Adminis¬
the
tration
"veterans' prefer¬
a
least
added
^
where
is
~
Under
million.
Strategem
Here
legisla¬
conference
a
version of the
House
•
any
Dislike Committee Bill
of the
second,
jected tune
ute
Between the
more
chase of loans that
floor
Adminis¬
the
the
for
bill.
it. There are con¬
liberal direct and
on
bill
the
offer a
the
on
substitute
would
"omnibus"
on
The deal was
House
the
that
housing and legislative trades it
an
bill.
"substitute"
the omnibus housing bill. In the
nice fellow
a
Committee to
Banking
reported out its 1957 version of
literally is called
the Administration found
So
story got under way as
Banking
o wer
$2.7 '
year
less the Senate changes its pro-
frightened the
Administration,
really
h
of
$58 million was appropriations
and the housing thing consisted
House
Senate
''Someday that chairman will go too far—had the key¬
hole enlarged so I wouldn't strain my eyes!"
however, was
it, Congress was in there pitch¬
ing for economy because that
and
voted
What
cost
liminary indications
Administration Frightens
E i
final
away
a
this
bill is ironed out. However, pre-
anteed mortgages.
alleged savings of $58 mil¬
the
acts,
purchasing V/z% VA-guar-
for
lion for the postal
Tlie
.
total of $1 billion
to
reserves
be
however, 'will • not
be
known until, first, the Senate
Insurance
Life
Service
tional
sonality conflicts, greatly played
the
The
of War II Na¬
the proposed use
housing aids voted
to
tion,
'
to which
objected was
the Administration
of
billion.
bill
omnibus
mittee
$58 million Arthur Summerfield
was asking for the operation of
the postal service.
All the newspapers, of course,
in the classic devotion to per¬
cost
likely
or
in the com¬
thing
third
The
dime of some
to withhold every
tive
•
would - curtail vol¬
Administration ob¬
jected to their liberality).
firmly
an¬
dedicated purpose
its
nounced
lion.
FNMA voted several weeks ago
is added, this makes the tenta¬
provisions
ume,
the
Committee
tions
2,200 million
—
This thus aggregates $2.2 bil-,
Ifthe $500 million for
;
that these
For that very reason,
250 million
Total
for
erence
It is not that either the Dem¬
ocrats
market"
remaining
same
250 million
—
_
were
freedom
would have held down veterans
loans under the veterans' pref¬
This
licans,
sup¬
For the "secondary
restricted
there probably would be less
money
going out on govern¬
ment sponsored credit and less
ultimate liability to the Treas¬
ury. For private finance is not
yet compelled by law to make
loans on government guarantee.
discounts
If
300 million
For
would have gotten a break.
er,
all set to take
saddling on to the
the Republicans
credit
ing
"special
port"
law, the taxpayer,
perhaps the borrow¬
become
WASHINGTON, D. C.—Dem¬
won
a
great victory in
the House last week. Here were
ocrats
military hous¬
T
Telephone
HUbbard 2-1990
Boston 9, Mass.
Teletype
BS 69
Volume
185
Number 5638
.
.
.
PICTORIAL
The Commercial and Financial Chronicle
1
exa3
INVESTMENT BANKERS ASSOCIATION OF AMERICA
22nd Annual Convention
DALLAS, TEXAS
APRIL 21-23
EXE
c
It
u
C
E
V
I
1957
I
M
M
0
T
T
E
E
SECRETARYCHAIRMAN
Earl G.
Taylor B. Almon
C
Russell R. Rowles
Rowles,
Co.,
Winston
&
Houston
O
M
William F. Parvin
Austin, Hart & Par¬
vin, San Antonio
COMMI
LEGISLATIVE
EDUCATION
Dean P. Guerin
R. Brud Smith
Allison
Eppler, Guerin &
Turner, Dallas
Company, Dallas
M. E.
Inc.,
San
T
I
M
J. Wesley
Hickman
Schneider, Bernet &
Hickman, Inc., Dallas
EE
TT
& Co.,
Antonio
MUNICIPAL
Texas
Underwood, Neuhaus
Cor¬
&
poration, San Antonio
C
H
Eugene D. Vinyard
Charles C. Pierce
Pierce &
Co., Inc., Dallas
Hugh Dunlap
Goodbody & Co.,
Dallas
Central
of Texas,
Dallas
&
Co., Incorporated,
William C. Porter
Dittmar &
Inc.,
Company,
Antonio
San
Houston
A
MEMBERSHIP
I
R
MEN
PUBLIC
CONVENTION
RELATIONS
Edward D. Muir
Investment
Company
Reed
N
Milton R. Underwood
W. Wallace Payne
First of
Keith
E
M
E
E
SECURITIES
Rauscher,
SECRETARY
John P. Henderson
Fridley
Fridley, Hess &
Frederhing, Houston
Rauscher, Pierce &
Co., Inc., Dallas
EXECUTIVE
TREASURER
VICE-CHAIRMAN
VICE-CHAIRMAN
Muir
Corp.,
Investment
San Antonio
Earl G. Fridley
Fridley, Hess &
Frederhing,
Houston
Lewis F.
Mercantile
Bank,
Lyne
National
Dallas
2
The Commercial and Financial Chronicle
PICTORIAL
.
.
.
Thursday, May 16, 1957
Rauscher, Pierce & Co., Inc.
Member
New
York
Stock
Midwest
Exchange
American
Stock
Exchange
Stock
Exchange
(Associate)
Underwriters
Dealers
U
Brokers
Distributors
Municipal Bonds
Bank and Insurance
Company Stocks
Mutual Investment Funds
Public
Business
Meeting—Speaker's
Table:
Charles
C. Pierce, Rauscher,
Pierce
&
Co., Inc., Dallas;
Murray Hanson, General Counsel, I. B. A. of America; Hugh D. Dunlap, Goodbody & Co., Dallas;
Eugene D. Vinyard, Central Investment Company of Texas, Dallas ;W. E. Tinsley, Executive Director,
Municipal Advisory Council of
Texas; Edward D. Muir, Muir Investment Corp., San Antonio;
Earl G. Fridley, Fridley, Hess & Frederking, Houston; Wilbur Frederking,
Fridley, Hess & Frederking, Houston
Utility, Railroad and Industrial
Bonds—Preferred Stocks—Common Stocks
MERCANTILE
DALLAS
BANK
BLDG.
1, TEXAS
Bell Teletypes
Telephone
Riverside
Austin
DL
1-9033
Fort Worth
•
Lubbock
Midland
*
Tyler
•
Harlingen
•
•
Odessa
Victoria
Direct Wires to All
196 and DL
197
Houston
•
San Antonio
*
Waco
•
Principal Markets
C. "Decker" Jackson, Vice-President, I. B. A. of America; Robert H. Crafi, President Investment
Taylor B. Almon, Chairman, Texas Group, I. B. A.; Earl F. Hastings,
Commissioner, Securities and Exchange Commission; R. L. Thornton, Sr., Mayor of the City of Dallas
W.
Firm Bids and
TEXAS
MUNICIPAL
Bond
FIRST
Department
NATIONAL
IN
Bankers Association of America;
Offerings
BANK
DALLAS
The Bank Wire to
Principal Markets
Telephone Rl 8-5471
•
Teletype DL 94
John P. Henderson, M. E. Allison
& Co., Inc., San Antonio; Dean P. Guerin, Eppler, Guerin & Turner,
Inc., Dallas; R. R. Rowles, Rowles, Winston & Co., Houston; J. Wesley Hickman, Schneider, Bernet
& Hickman, Inc., Dallas; W. Wallace Payne, First of Texas Corporation, San Antonio; Lewis F. Lyne,
Mercantile National Bank, Dallas; R. B. (Brud) Smith, Keith Reed & Company, Dallas
Underwriters
Distributors
•
•
Dealers
CORPORATE and MUNICIPAL SECURITIES
Trading Markets in leading Southwestern over-the-counter securities
Specialists in San Antonio Bank Stocks and Texas Insurance Stocks
Rjjss & Company
BELL
Incorporated
i
TELETYPES
MEMBERS: NEW YORK STOCK
Trading
Department
SA
AMERICAN
STOCK
Alamo
EXCHANGE (ASSOC.)
National
23
Building
^
EXCHANGE
MIDWEST STOCK EXCHANGE
San Antonio, Texas
CA. 6-4324
•
Municipal
Department
•
SA
53
DIRECT
PRIVATE WIRES
TO
AND
CARL
M.
LOEB,
CONNECTING
RHOADES & CO., NEW YORK, FIRST SOUTHWEST CO., DALLAS
WIRES
TO
PRINCIPAL
FINANCIAL
CENTERS
Volume
185
Number 5638 j.
.
The Commercial and Financial Chronicle
PICTORIAL
INVESTMENT SECURITIES
of the
UNDER WR11ER
I) IS TR IR VI OR
DEALER
Mr. and
Mrs.
Earl
G.
I. B. A.);
Fridley, Fridley, Hess & Frederking, Houston (Chairman-elect of Texas
Mr. and Mrs. Taylor Almon, Rauscher, Pierce & Co., Inc., Dallas
(Chairman of Texas Group /. B. A.)
Group
^01lth(V€4t
FIRST
MERCANTILE
RANK
COMPANY
RE 1 LI)INC
DALLAS, TEXAS
Abilene
Mr. and
Mrs. James
•
Piainvikw
»
S
v.\
Antonio
.
Tyi.kk
Jacques; Mr. and Mrs. William P. Smallwood, and Mr. and Mrs. Winton Jackson,
all of First Southwest Company, Dallas
TEXAS
MUNICIPAL BONDS
Central Investment Company
oil texas
Kirby Building, Dallas 1, Texas
Bell Teletype—DL 586
Riverside 2-9145
Branch Offices
San Antonio
Mr.
&
Lubbock
St. Paul
Mrs. Jack P. Brown, Dallas Union Securities Company, Dallas; Mr. & Mrs. J.
Wesley Hickman,
Schneider, Bernet & Hickman, Inc., Dallas; Mr. & Mrs. John H. Rauscher, Jr.,
Rauscher,
Pierce
&
Co.,
Inc.,
Dallas
CI
mutual
fund investing in securities of the
Southwest selected
wmmm
for
INC.
possible long term growth.
PROSPECTUS
MAY
BE
OBTAINED
TEXAS
FROM
YOUR
FUND
INVESTMENT
DEALER
OR
MANAGEMENT
CO.
principal underwriter
TEXAS
P.
O.
BOX
871
•
NATIONAL
HOUSTON, TEXAS
•
BANK
CApitol
BLDG.
7-0211
•
TELETYPE HO-566
3
4
The Commercial and Financial Chronicle
PICTORIAL
.
.
.
Thursday, May 16, 1957
firm bids and offerings
TEXAS MUNICIPAL BONDS
'
'
'
I
_
underwriters
•
distributors
•
dealers
Taylor B. Almon, Chairman, Texas Group of I. B. A.; Earl F. Hastings, Commissioner, Securities &
Commission; Robert A. Craft, President, Investment Bankers Association of America;
Murray Hanson, General Counsel, Investment Bankers Association of America
Exchange
MUNICIPAL SECURITIES
COMPANY
investment bankers
600
FIRST
NATIONAL BANK BUILDING
DALLAS 2, TEXAS
Telephone: Riverside 8-5081
Teletype DL558
Wilbur
H. Frederking, Fridley, Hess & Frederking, Houston; Eugene D. Vinyard, Central Investment
Company of Texas, Dallas; Frank Burkholder, Equitable Securities Corporation, Nashville; Morris A.
Dudley, Rauscher, Pierce & Co., Inc., Dallas; Edward T. Volz, Rauscher, Pierce & Co., Inc., San
Antonio; John P. Henderson, M. E. Allison & Co., Inc., San Antonio; Earl G. Fridley,
Fridley, Hess & Frederking, Houston
William
Winston
Nelson
£
William
k
Co.,
II,
Clark, Landstreet & Kirkpatrich, Inc., Nashville; Arthur E. Goodwin, Rowles,
Houston; C. L. West, Russ & Company, Inc., San Antonio; William N. Edwards,
Russell R. Rowles, Rowles, Winston & Co., Houston;
William J. Anderson, Equitable Securities Corporation, Nashville
N. Edwards & Co., Ft. Worth;
Exdfiange
R.
L.
Thornton,
Sr., Mayor of
the City
J Taylor B.
Almon,
of Dallas;
Mercantile National
Co., Inc., Dallas
Lewis F. Lyne,
Rauscher, Pierce &
Bank,
Dallas;
Volume 185
Number 5638
.
.
.
The Commercial and Financial Chronicle
PICTORIAL
A. GORDON
CLAUDE T. CROCKETT
HOUSTON
CLUB
5
CROCKETT
BLDG.
HOUSTON 2, TEXAS
TWX—HO
CApitoI 5-0441
585
Underwriting, Retailing
and Trading
Direct and
Lewis
F.
Lyne, Mercantile National Bank, Dallas; William P. Smallwood, First Southwest Company,
Dallas; Newell S. Knight, Mercantile Trust Company, St. Louis; Morris A, Dudley,
Rauscher, Pierce & Co., Inc., Dallas
Connecting Wires to
Albuquerque—Quinn & Co.
Beckley, W. Va.—Joseph X. Fazio & Co.
Boston, Mass.—Draper, Sears & Co.
Chicago—McMaster Hutchinson & Co.
Minneapolis—M. H. Bishop & Co.
Nashville—Jack M. Bass & Co.
New Orleans—T. J. Feibleman & Co.
New York—McManus & Walker
Cleveland—Wm. J. Mericka & Co.
Phoenix—Kenneth Ellis & Co.
Dallas—Creson, Sledge and Company
Pittsburgh—Blair F. Claybaugh & Co.
Portland—Zilka, Smither & Co., Inc.
St. Louis—Dempsey-Tegeler & Co.
Salt Lake City—A. P. Kibbe Sc. Co.
Salt Lake City—Whitney & Company
San Antonio—Lentz, Newton & Co.
San Francisco—Wulff, Hansen & Co.
Seattle—Blanchett, Hinton & Jones, Inc.
Spartanburg, S. C.—Calhoun & Co.
Texarkana, Tex.—Joel H. Clark & Assoc.
Denver—Carroll & Co.
Denver—Mountain States Securities Corp.
Denver—B. E. Simpson & Co.
Detroit—Don W. Miller & Co.
Durham, N. C.—Erwin & Co.
El Paso—Harold S. Stewart & Co.
Fayetteville, N. C.—Powell & Co.
Grand Junction, Colo.—
G. J. Filosa Sec.
Co.
Toronto—Matthews &
Greenwood, S. C.—Citizens Trust Co.
Harrisburg—Blair F. Claybaugh & Co.
->
Huntington, W. Va.—F. L. Games & Co.
Kansas City—Burke & MacDonald, Inc.
Kansas City—B. C. Christopher & Co.
Los Angeles—Dempsey-Tegeler & Co.
(Contact
us
Co.
Tulsa, Okla.—Miller & Co.
Twin Falls, Idaho—Melville Investment Co.
Victoria, Texas—Buhler, de la Marre & Co.
Wichita, Kansas—Lathrop, Herrick &
Clinger, Inc.
through
of them)
any
mmmm
Lockett
Phil
R.
Shelton, Republic National Bank, Dallas; W. C. Jackson, Jr., First Southwest Company, Dallas;
Neuhaus, Underwood, Neuhaus & Co., Incorporated, Houston; Jack C. Payne, Dallas Union
Securities Company, Dallas; Manley A. Hagberg, M. A Hagberg & Co., Inc., Dallas;
r
W. Perry McPherson, Merrill Lynch, Pierce, Fenner & Beane, Dallas
TEXAS WELCOME
:%
,<
/
/
/
TO
-W
I. B. A. Members
!fc1i|iililif
BE
Sure to
say
Dallas
in
e
Stop In and
"Hello" while you're
Municipal Bond Department
MERCANTILE
NATIONAL
BANK
Dallas, Texas
Alfred
J.
Stalker,
Kidder, Peabody & Co., New York; Hugh Bass, Metropolitan Dallas Corporation,
R. F. Temple, Keith B. Reed & Company, Dallas; Sanford C. Miller,
A. C. Allyn & Company, Incorporated, Chicago
Dallas;
We maintain markets in the
following securities:
GEORESEARCH. INC.
HYCALOG, INC.
OLIVE-MYERS-SPALTI. Common
SUBSURFACE RESERVE CORP.
TEXAS MUNICIPAL BONDS
Write, Wire,
Carl Crofford
Robert E.
or
Temple
Call
,
Jacques de la Marre
KEITH REED «St CO
INCORPORATED
Russell
R.
Dallas;
Victor W.
Rowles,
Rowles, Winston & Co., Houston; R. G. Tucker, R. A. Underwood & Co., Inc.,
Bouldin, Vinson Elkins, Weems & Searls, Houston; John J. Fosdick, EddlemanRobert B. Lee, Lentz, Newton & Co., San Antonio;
R. L. Griffin, Central Investment Company of Texas, Dallas
Pollok Co., Houston;
6
The Commercial and Financial Chronicle
PICTORIAL
One
of
our most
.
.
.
Thursday, May 16, 1957
important services to
institutions and to individuals
■
I
I
I
U. S.
GOVERNMENT,
STATE AND
MUNICIPAL BONDS
m i:h(
am 11a;
_
f
SAINT
H
LOUIS
TRU8T?
1, MISSOURI
New York Correspondent 14 Wall
Street
Patrick J.
Cummings, Bear, Stearns & Co., Chicago; Mrs. E. D. Muir, San Antonio; W. Lewis Hart,
& Parvin, San Antonio; Mrs. Sam P. Johnson, Dallas; A. E. Tomasic, Thomas &
Company, Pittsburgh; Mrs. Edward Randall III, Houston; Mrs. John L. Canavan, Dallas;
Ed D. Muir, Muir Investment Corp., San Antonio
Austin, Hart
Chicago Telephone to Bond Department Dial 211 Requett Enterprise 8470
MILLION
OVER *000
RESOURCES
0
CORPORATE
SECURITIES
MUNICIPAL
AND
h''
,
H
'
r*'\
&
Fredwking
INVESTMENT
BANKERS
Members Midwest Stock
NATIONAL
TEXAS
F. Perkins, Jr., Perkins & Company, Inc., Dallas; Ed W. Franklin, Dittmar & Company, Inc.,
Dallas; E. Kelly Brown, £. Kelly Brown Investment Co., Dallas; Jack T. Currie, Moreland, Brandenberger, Johnston & Currie, Galveston; Richard C. Nongard, Nongard, Showers & Murray, Inc., Chicago;
Louis Pauls, Louis Pauls & Co., Galveston
BANK
Teletype HO 42
Telephone CApitol 8-8221
BURT
JOHN M.
Over
Jack
Houston, Texas
BUILDING
C. NESOM
Exchange
HAMILTON
Thirty Years Experience in
TEXAS MUNICIPAL BONDS
Underwriters
Local
—
Distributors
—
Dealers
Corporation Securities
Mutual
Funds
Shares
Burt, Hamilton & Co., Inc.
Kirby Bid?., Dallas 1, Texas
Riverside 2-8733
—
8734
Bell
Municipal Sales Manager
—
Teletype
—
DL 992
Arthur
Nazro, Parker Corporation, Dallas; Bill Inman, John Nuveen <fc Co., Chicago; Landon A. Freear,
John B. Cornell, Jr., Distributors Group, Inc., Dallas; Kenneth
Drummond, Calvin Bullock, Ltd., St. Louis; James W. Lain, Rotan, Mosle, Inc., Galveston;
Robert E. Clark, Calvin Bullock, Ltd., New York City
William N. Edwards & Co., Ft. Worth;
William S. Hamilton
Corporate Manager-—A. K. Choate
y ''/*f /A'
/,/
,
jj; W A
,//
,
£%#£## A
f
-V
"
"
-
Sanders
securities
-
y
REPUBLIC
ft
Company
&
investment
-
NATIONAL
BANK
,
t.
'
0LDC,
Dallas
Harry Ratliff, McClung & Knickerbocker, Houston; R. E. Whitlock, James C. Tucker & Co., Inc.,
Austin; W. Wallace Payne, First of Texas Corporation, San Antonio;
W. E. Tinsley, Municipal
Advisory Council of Texas, Austin, Texas; B. W. Lucas, Fort Worth National Bank, Ft. Worth;
W. E. Knickerbocker, McClung & Knickerbocker, Houston; Walter Todd, B. V. Christie & Co., Houston
Volume
185
Number 5638
.
.
.
PICTORIAL
The Commercial and Financial Chronicle
Underwriters
Distributors
—
Dealers
—
Corporation and Municipal
Securities
>1-
Specialists in Texas Corporate
and
Municipal Securities
Dittmar & Company,
American Stock Exchange (Assoc).
New York Stock Exchange
Midwest Stock
Exchange
201 N. St. Marys Street, San Antonio
Gordon
Crockett, Crockett & Co., Houston; William G. Hob bs, Jr., Russ <6 Company, Inc., San
Antonio; Claude Crockett, Crockett & Co., Houston; Jack C. Payne, Dallas Union Securities Company,
Dallas; John L. Mosle, Jr., Rotan, Mosle & Co., Houston
Branch
5, Texas
Teletype—SA 15
Telephone—CApitol 7-9311
Office—Dallas
Wire to Laurence M. Marks
Direct
.>«.
•'
Members
-
<ft Co., New
York
Rotan, Mosle & Co.
MEMBERS
NEW
YORK
AMERICAN
STOCK
STOCK
EXCHANGE
EXCHANGE
(Assoc.)
OUR PRIMARY BUSINESS IS THE
RETAIL DISTRIBUTION OF
Jacques De La Marre, Keith B. Reed & Company, Dallas; Dick Gibson, Lehman Corp., New York City;
Arthur R. Lindburg, Lehman Brothers, Chicago; James P. Jamieson, Glore, Forgan & Co., Chicago;
T. E. Graham, First National Bank, Ft. Worth; Farrand Flowers, National Bank of Commerce, Houston
BETTER GRADE SECURITIES
OF ALL TYPES.
H
§§
BEAUMONT
GALVESTON
HOUSTON
Wires to Clark, Dodge & Co., New York, Gregory & Sons, New York,
and leading Texas Cities.
IllllllllllllllllllllllllllllllllllllllllllllllllJIli
UNDERWRITERS
DISTRIBUTORS
—
—
DEALERS
TEXAS
MUNICIPAL
BONDS
CORPORATE
STOCKS
UNLISTED
LOCAL
'
t
John
W. Brandenberger, Moreland, Brandenberger, Johnston & Currie, Houston; Avery Rockefeller,
Jr., Dominick & Dominick, New York; William H. Todd, Kuhn, Loeb & Co., New York; William G.
Hobbs, Russ & Company, Inc., San Antonio; Neill T. Masterson, White, Masterson & Co., Houston;
Douglas E. Johnston, Moreland, Brandenberger, Johnston & Currie, Houston;
A. J. Stalker, Kidder, Peabody & Co., New York
..
&
\ -r;.V'V-y"
•
•
&
BONDS
SECURITIES
"L.
."'v/y
*
R. A. UNDERWOOD & CO.
Incorporated
MERCANTILE BANK BLDG., DALLAS
Bell Teletype
Representatives
TEXAS
1, TEXAS
Riverside 1-9295
DL 492
—•
Belton
STOCKS
—
Edinburg
AND
y;
BONDS
SCHNEIDER, BERNET & HICKMAN, INC.
SOUTHWESTERN
DALLAS,
riverside
San
A.
BLDG.
Teletype dl 286
8* 1201
m £
Hagberg, M. A. Hagberg & Co., Inc., Dallas; David Barnes, Ransom & Company, Inc.,
Antonio; Ed Fizer, First National Bank, Ft. Worth; Murray W. Moore, Murray W. Moore &
Company, Dallas; R. B. (Brud) Smith, Keith Reed & Company, Dallas
Manley
LIFE
TEXAS
hsir
new
YORK
STOGE
EXCKAj
7
The Commercial and Financial
8
Chronicle
.
.
.
Thursday, May 16. 1957
PICTORIAL
UNDERWRITERS
DISTRIBUTORS
—
DEALERS
—
TEXAS
CORPORATION
MUNICIPAL BONDS
SECURITIES
★
★
★
Shawell & Company
Arthur R. Lindburg, Lehman Brothers,
CLUB
HOUSTON
Mrs.
BUILDING
William
York;
James Jacques,
Tomasic
Chicago; Horace Tomlinson, Chase Manhattan Bank, New
Smallwood; A. E. Tomasic, Thomas & Company, Pittsburgh; Mrs.
William P. Smallwood, First Southwest Company, Dallas; Mrs. A. E.
P.
Dallas;
HOUSTON 2, TEXAS
Teletype HO 339
CApitol 4-7569
DEALERS
DISTRIBUTORS
UNDERWRITERS
Municipal and Corporate Securities
Specializing in
>
TEXAS ISSUES
James
MORELAND, BRANDENBERGER,
JOHNSTON & CURRIE
JACK
JOHN
MORELAND
MARVIN
T.
New
York
'
HOUSTON
GALVESTON
J.
P. Jamieson, Glore, Forgan
Co., Chicago; Matthew B. Pilcher, Mid Southh Securities Co.,
Nashville; J. Wesley Hickman, Schneider, Bernet & Hickman, Inc., Dallas; Allison R. Pierce, Harold
S. Stewart & Company, El Paso;
Graham Walker, McManus <fi Walker, New York; James Sheils,
McManus & Walker, New York; Paul A. Just, Television Shares Management Co., Chicago; John C.
Hecht, Dempsey-Tegeler & Co., Los Angeles; Wayne R. Benzing, Fund Research & Management Co.,
W. BRANDENBERGER
DOUGLAS E. JOHNSTON
CURRIE
Bank
Cotton
Exchange Bldg.
GALVESTON, TEXAS
of
Southwest Bldg.
HOUSTON, TEXAS
Telephone CApitol 7-2396 1
Bell Teletype—HO 952
Telephone 3*2404
Teletype—GL 7042
Bell
Dean
New
Sfeocat
&
P. Guerin, Eppler, Guerin & Turner, Inc., Dallas; Horace Tomlinson, Chase Manhattan Bank,
York; Bill Eppler, Eppler, Guerin & Turner, Inc., Dallas; Clarence E. Crowe, McCall, Parkhurst
John B. Cornell, Jr., Distributors
George Cooper, Dallas Rupe & Son, Inc., Dallas
Crowe, Dallas; Joseph C. Graff, Salomon Bros. & Hutzler, Dallas;
Group, Incorporated, Dallas; A. C. Black, Jr., Dallas;
Established 1920
Dealers
and
Brokers in
.
.
.
•
CORPORATION STOCKS AND
•
PUBLIC
UTILITY PREFERRED
BANK
•
INSURANCE
•
TEXAS
AND
STOCKS
COMMON
•
BONDS
STOCKS
STOCKS
MUNICIPAL
BONDS
DALLAS UNION SECURITIES COMPANY
Member
Associate
Midwest
Member
Stock Exchange-
American
1001
ADOLPHUS
RIVERSIDE
.
FT.
WORTH
1-9021
Corporate DL 390;
Direct
Forgan
wire
BLDG.
5-1248
Municipal DL 991
to
& Co., Chicago and Troster,
NATIONAL BANK
EDISON
TOWER
TELETYPE:
Glore,
Stock Exchange
FORT WORTH, TEXAS
DALLAS, TEXAS
Singer & Co., New York
Mandy Denham, First Southwest Company; Morris Dudley, Rauscher, Pierce & Co., Dallas; Earline
Malloy, R. A. Underwood & Co., Inc., Dallas; F. Vincent Reilly, Commercial & Financial Chronicle,
York; Jenny Marshall, Rauscher, Pierce & Co., Inc., Dallas; Edward T. Volz, Rauscher, Pierce
& Co., Inc., San Antonio; Mavolene McMahon, Rauscher, Pierce & Co., Inc., Dallas
New
Volume
185
Number 5638
.
.
.
The Commercial and Financial
Chronicle
PICTORIAL
9
Texas' First Investment
Banking House
ESTABLISHED
of
1907
growin
with
;
th
remarkable Southwest
1 bCT
J.O&J#
John
W. Coles, Jr.* Texas Fund
Management Company,
Management Company, Houston; John H.
Mrs.
Keith
Houston; Edmund J. Wardell, Texas Fund
Ahbe, Distributors Group, Incorporated,
Dallas; Mr. and
Reed, Keith Reed & Company, Dallas; David F.
Anderson, Muir Investment Corp.,
San Antonio; John C.
Chapin, Jr., Value Line Distributors, Inc., New York
Underwood, Neuhaus
&
Co.
INCORPORATED
HOUSTON CLUB BUILDING
MEMBER-NEW
YORK
•
HOUSTON, TEXAS
STOCK
EXCHANGE
Wj,
☆
Specializing
ir
In
Te xas Municipal
I
Bonds
☆
☆
We offer facilities
developed by many
of serving buyer and seller of these
securities. Offerings substantiated by
comprehensive portfolio of ou£ own
investigation.
years
☆
C. Alfred Bailey, Mercantile National
Bank, Dallas; George S. Rooker, Metropolitan Dallas
Corporation,
Dallas; Preston Peak, Metropolitan Dallas Corporation, Dallas; Ben J.
Kerr, Mercantile National Bank,
Dallas; Paul B. Horton, McCall, Parkhurst & Crowe,
Dallas; Bill Estes, R. J. Edwards, Inc., Dallas;
M. Hamilton, Burt, Hamilton &
Co^ Inc., Dallas; Ted R. Alexander, Texas Bank & Trust
Co.,
John
Dallas
•,v3&
Established
☆
☆
1
1923
☆
McCLUNG & KNICKERBOCKER
505 Texas National Bank
Building
HOUSTON 2,
Bell
Teletype HO
TEXAS
298
CApltol 3-4583
☆
B*
Underwriters
Distributors
Corporate Securities
•
Dealers
Mutual Funds
Pension Plans
Trading Department Active
Texas and
Direct Private Wire to New
A.
K.
in
Other Southwestern Securities
York Hanseatic
Corporation, New York
Choate,
Securities
Mr.
Burt, Hamilton & Co., Inc., Dallas; Mr. and Mrs. Richard L.
Bradley, Equitable
Corporation, Houston; Mr. and Mrs. Wallace Metcalfe, Texas Bank & Trust
Co., Dallas;
and Mrs. William H.
Neil, North American Securities Co., Dallas; Jack R. Munger,
Keith Reed & Company, Dallas
Perkins &
ADOLPHUS
Telephone
Riverside
Company, Inc.
TOWER, DALLAS 2, TEXAS
1-5051
Teletype
DLS
481
9
9
Trading Markets
Retail Outlets
TEXAS and SOUTHWESTERN
CORPORATE SECURITIES
REED & SLOAN
INVESTMENT CO.
ADOLPHUS
Teletype——DL
TOWER
Telephone
Direct Private Wire
and
Mrs.
John
S.
Davis, Mrs. Paul W. Utley, Dallas; Mrs. Francis I. Abshire,
Houston;
Mrs.
Edward Walton, Dallas; Mrs. James C. Rambin, Dallas; Mrs. Elbert
Morrow, Austin, Texas
D.
DALLAS
•
99
to
1,
New York
Beverly Hills
TEXAS
Riverside
City
1-1686
10
The Commercial and
PICTORIAL
Financial Chronicle
.
.
.
Thursday, May 16, 1957
Aj
EX
Mr.
WHITE, HASTERSON & CO.
and
&
Mrs.
Ed
Walton, Municipal Securities Company, Dallas;
Mr. and Mrs. Steve Bcoke, Perkins
Company, Inc., Dallas; Mr. and Mrs. Jack F. Perkins, Perkins & Company, Inc., Dallas;
Mr. John W. Brandenberger, Moreland, Brandenberger, Johnston & Currie, Houston
Rusk Building
HOUSTON
Bell
2, TEXAS
Telephone
Teletype
CApitol 4-7643
HO 322
SINCE
1927
RIBUTORS
UNOERWRIT
•
BROKERS
Mrs. Ed Austin, San
Antonio; Mrs. Earl Fridley, Houston; Mrs. J. W. Hickman, Dallas; Mrs. W. Lewis
Hart, San Antonio;
722
HOUSTON
DIRECT
CLUB
PRIVATE
TO
BUILDING
NEW
TO
WIRES
—^jjjggjij^
ROBERTSON
DEWAR,
HOUSTON,
HANSEATIC CORPORATION
YORK
&
PANCOAST,
SAN
Mrs. A. M. Leary, Shreveport, La. (standing); Mrs. John P. Henderson, San
Antonio; Mrs. Jack Dillard, Kansas City, Mo.
TEXAS
NEW YORK AND
ANTONIO
TE X A S
MUNICIPALS
CORPORATES
En
E
ddleman-JLollok
Co.
Bank of the Southwest
Mr. and
Mrs. Lockett Shelton,
Company, Inc.,
Dallas;
Republic National Bank, Dallas; Mr. and Mrs. Ed Franklin, Dittmar &
Mr. and Mrs. B. W. Lucas, Fort Worth National Bank, Ft. Worth
Building
HOUSTON 2, TEXAS
CApitol 8-1427
Teletype HO 261
<s>
Distributors
Underwriters
Dealers
HOUSTON
IN
Specializing in
RETAIL DISTRIBUTION
of
CORPORATE
AND
MUNICIPAL
SECURITIES
BEEBE, GUTHRIE & LAVALLE
UNION
NATIONAL
HOUSTON
Bell Teletype HO
—
875
BANK
2,
BUILDING
TEXAS
Telephone CApitol 7-8105
Mr.
and
Mrs.
Brothers
Maurice
&
M.
Bank, Dallas; Mr. and Mrs. Russell Siefert, Stern
Mr. and Mrs. Murray W. Moore, Murray W. Moore &
Company, Dallas
Hatcher, First National
Co., Kansas
City, Mo.;
Volume
185
Number
5638
.
.
The Commercial and Financial Chronicle
.
PICTORIAL
UNDERWRITERS
DISTRIBUTORS
•
DEALERS
•
TEXAS
•
Municipal Bonds
•
Corporate Securities
Members Midwest Stock Exchange
TELEPHONE
CApitol 2-9944
TELETYPE
Andrew
Mrs.
G.
Bruce
Fund
C.
Sage II, Lehman Brothers, New York; James Leonard, Lehman Brothers, New
Calder; Walter M. Sorensen, Rotan, Mosle & Co., Houston; Edmund J. Wardell,
Management
Company,
Houston;
Mr.
and
Mrs.
Ray Edsel, Smith, Barney
John W. Coles, Jr., Texas Fund Management
Company, Houston
&
Co.,
HO 395
York;
Texas
Chicago;
BANK
1330
OF THE
SOUTHWEST
BLDG.
HOUSTON 2, TEXAS
UNDERWRITERS
DISTRIBUTORS
DEALERS
TEXAS
MUNICIPAL
BONDS
Murray W. Moore & Company
FIRST
NATIONAL
BANK
BUILDING
Alfred S.
Walter, Goldman, Sachs & Co., New York; Miss Maurine Jacobs, National Bank of Commerce,
and Mrs. Sam H. Ranson, Ranson & Company, Inc., Wichita; Mr. and Mrs. Clarence
Sample, Mercantile National Bank, Dallas; Bill Eppler, Eppler, Guerin & Turner, Inc., Dallas
Dallas;
Mr.
DALLAS
Phone Riverside
1, TEXAS
1-6475
Bell Teletype DL-160
SOUTHWESTERN
REVENUE
CORPORATES,
OFFERINGS,
MUNICIPALS
BONDS
LOCAL SECURITIES
BIDS,
APPRAISALS
R. J. EDWARDS, INC.
Globe
Life
Oklahoma
Bldg.
Mercantile Bank Bldg.
Alamo National Bldg.
City 2, Okla.
Dallas 1, Texas
San Antonio 5, Texas
Tel.—Riverside 2-7715
Tel.—CApitol 6-4306
Tel.—REgent
J. Markham, Wertheim & Co., New York; Mrs. Landon A. Freear; John S.
Hilson, Wertheim
Co., New York; George W. Hall, Wm. E. Pollock & Co., Inc. New Work; Mr. and Mrs. Theodore P.
Swick, White, Weld & Co., New York; James G. Brophy, Blyth & Co., Inc., Chicago
Edwin
&
6-3541
Teletype—OC 370
Teletype—DL 162
DIRECT
PRIVATE
WIRES
V
Texas
Municipal Bonds
*
Southwestern*Stocks and Bonds
Metropolitan Dallas Corporation
*
MEMBER
MIDWEST
VAUGHN
Plvorsirie
Mr.
&
Mrs.
Frank
E.
Austin,
Pirst Southwest Company, Dallas;
& Waggener, Dallas; Mr. & Mrs. C. Rader McCulley,
Walter M. Bader, First Southwest Company, Dallas;
Walker, Austin
Mrs.
Waller
M.
Bader
(seated)
r
1 -1 358
STOCK
EXCHANGE
*
BUILDING, DALLAS
Trlrtypo
Dl-103
11
12
The Commercial and Financial
PICTORIAL
Chronicle
.
..
Thursday, May 16, 1957
tjfw*
(&■
BLDC., SAN ANTONIO S, TEXAS
MILAM
CApitol 4-5548
TELETYPE—SA 4
You
When
Want
O N
municipals
texas
Mr. and
Evans
Mrs.
&
Charles
Company,
Co., Inc., Dallas; Clement A. Evans, Clement A.
William G. Hobbs, Jr., Russ & Company, Inc., San Antonio;
& Company, Dallas; Mr. and Mrs. Louis J Kocurek,
Rauscher, Pierce & Co., Inc., San Antonio
C. Pierce, Rauscher, Pierce &
Inc., Atlanta,
Ga.;
Mr. and Mrs. Jesse Sanders, Sanders
Texas National Corp.
Retail is Our Outlet
GUS
NELSON
EDWARD
H. KELLER
SAN ANTONIO 5,
TRANSIT TOWER
Bell
Telephone CApitol 7*3401
TEXAS
Teletype SA 40
Gilbert, Jr., Sanders & Company, Dallas; Mr. and Mrs. John L. Canavan, Rauscher,
Co., Inc., Dallas; Mr. and Mrs. William N. Edwards, William N. Edwards <£ Co., Ft. Worth
Mr. and Mrs. R. R.
Pierce
FIRM BIDS
<6
RETAIL MARKETS
;
MUNICIPAL BONDS
OVER-THE-COUNTER STOCKS
Austin, Hart & Parvin
MEMBERS
.
SAN
Phone
MIDWEST STOCK
USAA Bldg.
EXCHANGE
4119 Broadway
ANTONIO
9,
TEXAS
Bell Teletype SA 71
TAylor 4-2493
Direct and Connecting Wires to
Dallas and New York
Mrs. Ray T. Reed, Jr., First Securities Company of Kansas, Inc., Wichita;
Binford, Goodbody & Co., Dallas; Mr. and Mrs. Hugh Dunlap, Goodbody &
Mr. and
Mr. and Mrs. Joe
Co., Dallas
FIRST OF TEXAS
TV.
Wallace
CORPORATION
Payne,
President
TEXAS MUNICIPAL
BONDS
GUNTER
BUILDING
SAN ANTONIO
;
5, TEXAS
Teletype SA 13
CApitol 7-9253
Representatives
AUSTIN
—
YOAKUM
Mr.
and
Mrs.
Dion
R.
Holm, Jr.; Robert B. Lee; Mr. and Mrs. Leslie L. Lentz, and Mr. and
Newton, Jr., all of Lentz, Newton & Co., San Antonio
Frank R.
Mrs.
Volume
185
Number 5638
.
.
.
The Commercial and Financial Chronicle
PICTORIAL
-I®
UNDERWRITERS
DISTRIBUTORS
13
DEALERS
BROKERS
Muir Investment Corp.
SAN ANTONIO 5, TEXAS
101 N. ST. MARYS ST.
Corporate
•
t;',: 'u:1:
and
Municipal
Robert L. Creek, A. C. Allyn & Company,
Incorporated, Chicago; D. A. Keeler, Lord, Abbett & Co
Chicago; Mr. and Mrs. J. G. Parker, Lord, Abbett & Co., Chicago; Mr. Sanford C.
Miller, A. C. Allyn
Company, Inc., Chicago; Mr. and Mrs. Robert S. Driscoll, Lord, Abbett & Co., New York
,
Securities
SA 116 (Municipal)
Teletypes: SA 172 (Corporate)
Direct
Mr.
and
Mrs.
W.
Lewis
Hart,
Austin,
Hart
&
Parvin,
San
Antonio;
Herman
Mellen & Miller, Inc., Cleveland; Mrs. Hazel Beckett, Dallas; Arthur J. C.
Arthur Wiesenberger & Co., New York
B.
Joseph,
Underhill,
Wires
to
York
New
City, Dallas,
Waco, Wichita Falls
Joseph,
MEMBERSg
NEW YORK
STOCK EXCHANGE
BANK
NATIONAL
AUSTIN
<
—
AMERICAN
CHRISTI
CORPUS
STOCK
BLDG..SAN
COMMERCE
OF
SAN
(ASSOC.)
EXCHANGE
A N T O N I O, T E X A S
SAN
ANGELO
ANTONIO
Dealers and Originators
;
TEXAS MUNICIPALS
AND
SOUTHWESTERN CORPORATE ISSUES
Firm
Bids
Statistical
—
Firm
information
WILLIAM
Offerings
—
Quotations
gladly furnished
on
request
N. EDWARDS & CO.
FIRST NATIONAL BANK BUILDING
Mr. and Mrs. John P. Henderson, M. E.
Dallas
Union
Allison & Co., Inc., San Antonio; Mr. and Mrs. Dick Clark, Jr.,
Company, Dallas; Mr. and Mrs. Clarence Sample, Mercantile National Bank,
Dallas; Lewis F. Lyne, Mercantile National Bank, Dallas
Securities
FORT WORTH 2, TEXAS
Teletype—FT 8032
Telephone—EDison 2-2211
Underwriters
Dealers
Distributors
Corporate and Municipal Securities
Natural Gas Securities
Lentz, Newton & Co.
Members
New
York
Stock
Stock
Exchange
"ALAMO NATIONAL BUILDING
Telephone:
CApitol
American
Exchange
SAN
7-2361
ANTONIO
(Assoc.)
Teletype:
5, TEXAS
SA 45
Gregory & Sons Private Wire System
Direct
Albany
Charlotte
Detroit
Asheville
Chicago
Fayetteville
Indianapolis
Nashville
Mr.
and
Mrs.
& Co., Chicago; Mr. and Mrs. E. James Seal, M. E. Allison
San Antonio; Mr. and Mrs. John L. Canavan, Rauscher, Pierce & Co., Inc., Dallas
Ray Edsel, Smith, Barney
& Co., Inc.,
Connecting
Wires to:
Boston
Burlington
Dallas
Denver
Greenville
Houston
Kansas City Los Angeles Louisville Muskogee
Beaumont
Beverly Hills
Cincinnati
Cleveland
Columbia
Fullerton
Galveston
Grand Rapids
Jackson, Miss. Joplin
Philadelphia
Rock Island
Santa Ana
Seattle
Spartanburg Utica
New Orleans
San Francisco
Baltimore
and
Rome
_
St. Louis
Victoria, Tex.
St. Paul
Washington
14
The Commercial and Financial Chronicle
PICTORIAL
.
.
.
Thursday, May 16,
1957
active interest in
Ranson
&
Company,
Successors to the
Milam
Bld<j.
*
San Antonio 5
Telephone CApitol 7-8137
Teletype SA 8
WICHITA,
inc.
RANSON-DAVIDSON CO.. INC.
McALLEN, TEXAS
KANSAS
Mr.
Mr.
and
and
Mrs.
Mrs.
John
S.
Warren
Weatherston,
Ruxton,
Siefert, Stern Brothers
First
J. R. Phillips Investment Company, Incorporated, Houston;
Boston Corporation, New York City; Mr. and Mrs. Russell A.
& Co., Kansas City, Mo.; W. Wallace Payne, First of Texas Corporation,
San
Antonio
YOUR CONVENTION PHOTOGRAPHER AT
DALLAS, TEXAS
photography
2014 Vi Commorco St.
Convention
Polios, Texas
Photographs Available From Us.
Mr. and Mrs. William G.
National
(Tex)
Association
Hobbs, Rvss & Company, Inc., San Antonio; Mr. and Mrs. Paul Fagan,
of Securities Dealers, Dallas; Mr. and Mrs. Earl G. Fridley,
Fridley, Hess & Frederking, Houston
will be the hosts in
1958
Texas
Group Meeting will be held
April 23, 24 and 25, 1958
at
the
Shamrock Hotel, Houston, Texas
Gus
Nelson, Texas National Corp., San Antonio; Edward A.
Milton
Keller, Texas National Corp., San Antonio;
L. Oliver, Jr.,
Inc., Dallas
Halpern, Rauscher, Pierce & Co., Inc., San Antonio; Mr. and Mrs. Allen
Company, Dallas; Mr. and Mrs. Jack Morris, R. A. Underwood & Co.,
Edward T. Volz, Rauscher, Pierce & Co., Inc., San Antonio
Sanders &
DANCING AT THE WESTERN
PARTY
Volume
185
Number 5638
...
The Commercial and Financial Chronicle
PICTORIAL
15
In Attendance at Texas
Group IBA Meeting
ABSHIRE,
IRANCIS*
CLAYTON,
Moroney, Beissner & Co.
Houston, Texas
ACKERMAN,
Salomon
EDWARD
Brothers
M.
Texas Fund
Management Co.
Houston, Texas
Dallas, Texas
ALEXANDER,
TED
R.*
CONDON,
Texas Bank & Trust Co.
Dallas,
Van Ingen & Co.
Chicago, Illinois
TAYLOR B.*
COOPER,
GEO. E.*
Rupe & Son
Longview, Texas
Rauscher, Pierce & Co.
Dallas
Dallas, Texas
ALSBUFY,
ED
COWDRY, J. H.
Merrill Lynch, Pierce, Fenner & Beane
Houston, Texas
ANDERSON, DAVID F.
San
CREEK,
National Securities
& Research Corp.
Dallas, Texas
Walker,
Tc
AUSTIN,
&
McCall, Parkhurst & Crowe
Dallas, Texas
Texas
.
CUMMINGS,
M.*
Southwest
Kidder,
Dallas,
New York
Texas
Union
Securities
Dattels
Metropolitan Dallas Corp.
Dallas, Texas
Austin, Texas
A.
Texas
DE
BEISSNER, HENRY M.
LA
MARRE,
Moroney, Beissner & Co.
Keith
Houston,
JACQUES*
Dallas, Texas
First
of
Dallas,
Texas
Texas
Fund
New
Dallas
Rupe
&
DICKEY,
Son,
National
of
Bank
R.
J. Edwards, Inc.
Lubbock, Texas
Chicago
/DICKSON,
JOE*
JACK
First
Dallas,
Dallas, Texas
Texas
Investment
Muir
San
Antonio,
BOOTIIMAN,
National
Bank
DIETZMANN, HAM
FRED J.*
BOLTON,
Shearson, Hammill & Co.
Corp.
San
Texas
Antonio, Texas
DILLARD,
O.*
CLAUD
JACK*
Dumas, Huguenin & E'oothman
Beecroft, Cole & Co.
Dallas,
Kansas
Texas
Texas
Turnpike Authority
Austin, Texas
Houston, Texas
BRADLEY,
RICHARD
City, Missouri
DINGWALL, J. C.
BOULDIN, VICTOR W.
Vinson, Elkins, Weems & Searls
DIXON, DICK
L.*
Equitable Securities Corp.
Board
Houston, Texas
Austin, Texas
JOHN
BRANDENBERGER,
Moreland,
Currie,
Johnston
&,
BRINKER,
Savings Bank
Goodbody & Co.
Dallas, Texas
EDMONDSON, JAS. E.
P.*
Securities Co.
Dallas, Texas
BROWN,
E.
R.
Edmondson, Payne & Burkholder
Nashville, Tennessee
EDSEL,
KELLY*
E. Kelly Brown Investment Co.
Dallas, Texas
IIUCHAN, ANDRES D.
RAY*
Smith, Barney & Co.
Chicago, Illinois
EDWARDS,
Bacon, Whipple & Co.
Chicago, Illinois
IIURKHOI DER,
Missouri
Rauscher, Pierce & Co., Inc.
Dallas, Texas
Illinois
JACK
Bullock, Ltd.
Louis,
DUNLAP, HUGH*
Blyth & Co., Inc.
Union
SHERRILL
Dallas, Texas
FRANK
EDWARDS,
WM.
Equitable Securities Corp.
Wm.
N.
Fort
Worth,
CANAVAN, JOHN L*
Rauscher, Pierce &
ELLIS,
Co.,
Inc.
Dallas, Texas
Merrill
Value
New
E.
O.
Lynch, Pierce, Fenner & Beane
Line
CLARK,
JR.
R.,
Distributors
Fund
City
JR.*
Union
Securities Co.
Joel
JOEL
H.
Calvin
Newton, Jr., Lentz, Newton & Co., San Antonio; Edwin J. Markham, Wertheim & Co., New
John C. Hecht, Jr., Dempsey-Tegeler & Co., Los Angeles; Leslie L. Lentz, Lentz, Newton
& Co., San Antonio
New
H.*
Clark
&
*
Bullock,
Denotes
/
B.
•
Eppler, Guerin & Turner
ESTES,
R.
J.
BILL*
Edwards,
Inc.
CLEMENT
Clement A.
&
Dallas,
Ltd.
City
Mr.
Blair
Mrs.
-
Co., Inc.
„
Co.
Incorporated
Texas
(
FAGAN, PAUL J.*
National Association of Securities
Dealers,
&
A.
Evans &
ROGER
EVANS,
Associates
ROBERT E.
York
WM.
Atlanta, Georgia
Texarkana, Texas
CLARK,
EPPLER,
EVANS,
Dallas, Texas
CLARK,
W.*
Southwest Co.
Dallas, Texas
DICK,
Dallas
JOE
Texas
Dallas, Texas
JOHN
York
First
N.*
Edwards
Dallas, Texas
Dallas, Texas
CHAPIN,
E.*
Metropolitan Dallas Corp.
Nashville, Tennessee
CART WRIGHT,
S.*
Co.
City
DUDLEY, MORRIS A, JR.*
R.*
Chicago, Illinois
Dallas
Engineers
Abbett &
York
Calvin
St.
ROBERT
John Nuveen & Co.
BROWN,
Water
DRUMMOND, KENNETH
&
Illinois
BROPHY, JAMES G.
Chicago,
Lord,
New
Texas
H. F.
Harris Trust
Chicago,
of
•DRISCOLL, ROBERT
W.*
Brandenberger,
Houston,
BRIGHT,
R.
Inc.
ERNEST
Goodbody & Co.
Frank
E.
Dallas, Texas
City
Chicago, Illinois
York;
Inc.
Dallas, Texas
WAYNE R.
BINFORD,
Co., Inc.
DeSHONG, HAROLD
BERGQUIST, P. ALDEN
First
&
Dallas Rupe & Son,
Corp.
Research & Management
York
Reed
(DENNARD, ROBERT E.*
Texas
BENZING,
Eugene D. Vinyard; Mrs. Winton Jackson; Winton Jackson, First Southwest Company, Dallas;
Eugene Vinyard, Central Investment Company of Texas, Dallas; Mr. and Mrs. Scan Hilger,
Dallas Rupe & Son, Inc., Dallas
Bank
tDAVIS, JOHN S.*
Republic National Bank
Dallas, Texas
MRS.
Co.
BENNETT, DELTON, JR.*
Mrs.
..-V
•
Mercantile National
Dallas, Texas
HAZAEL,
Southwest
Dallas,
y
IDAVIS, JACK*
Houston, Texas
Condon; Ray Condon, B. J. Van Ingen & Co., Inc., Chicago; Mrs. Fred J. Bolton; Landon
Freear, William N. Edwards & Co., Ft. Worth; Lawrence M. Reickhoff, Northern Trust
Company,
Chicago; Fred J. Bolton, Muir Investment Corp., San Antonio;'Mrs. Lawrence M. Reickhoff
Ltd.
Texas Turnpike Authority
BEAUDRY, ROLFE W.
Fridley, Hess & Frederking
Pam
Co.,
Canada
(DAVIS, JACK
BASS, HUGH*
Miss
&
Ontario,
San Antonio, Texas
First
JACK T.
(BATTELS, DAVID R.
DAVID
Ranson & Co., Inc.
BECKETT,
J.
City
Moreland, Brandenberger, Johnston
Currie, Galveston, Texas
Co.
Texas
BARNES,
FRANCIS
Peabody & Co.
CURRIE,
BAMBENEK, J. RIES*
Dallas
J.
Chicago, Illinois
buNNINGHAM,
ALFRED*
Mercantile National Bank
Dallas,
PATRICK
Bear, Stearns & Co.
Co.
Dallas, Texas
C.
Co.
F.
(CROWE, CLARENCE E.*
H.*
BAILEY,
CARL
Dallas, Texas
WALTER
First
&
Louis, Missouri
Keith Reed & Co., Inc.
Waggener
:as
Antonio,
BADER,
C. Allyn & Co.
Chicago, Illinois
CROFFORD,
JR.*
Austin, Hart & Parvin
San
of
A.
£t.
Austin
Dallas,
Association
L.
Goldman, Sachs
Bank
Texas
E.,
ROBERT
CRICELY, WALTER J.
ARNSPIGER, DAVI.O*
FRANK
H.
Bankers
America, Washington, D. C.
ANTHONY, TONY*
AUSTIN,
ROBERT
Investment
Equitable Securities Corp.
Nashville, Tennessee
National
Trust & Savings Bank
Chicago, Illinois
CRAFT,
ANDERSON, W. J., JR.
Dallas,
Lynch, Pierce, Fenner & Beane
CLARK
Harris
Antonio, Texas
First
Merrill
Dallas, Texas
COX,
Muir Investment Corp.
Dattels, Dattels & Company, Ltd., Kitchener, Ont., Canada; J. Ken
Sims, Dattels & Company,
Ltd.,
Kitchener,
Ont., Canada;
Mr. and Mrs. Robert
Temple, Keith Reed & Company, Dallas;
Richard
N.
Rand, Rand ,& Co., New York; Wilbur H. Frederking,
Fridley, Hess & Frederking,
Houston; William W. Hibberd, Marine Trust Company of Western New
York, New York; Mel F. Cooke,
Central Republic Company, St. Louis
RAY
B. J.
Texas
ALMON,
Ill*
B..
Bank
COLES, JOHN W.f JR.
Hutzler
&
JOHN
First National
Dallas, Texas
Inc., Dallas, Texas
Continued
on
page
16
7
%
16
The Commercial and Financial Chronicle
PICTORIAL
Continued
from
page
McGINNIS,
15
JOHN*
POPPER,
Republic National Bank
Dallas, Texas
I.
ELVIN
Simon
M.
St.
Thursday, May 16, 1957
.
SORENSEN,
K.
&
.
.
Co.
WALTER M.
Mosle & Company
Rotan,
Louis, Missouri
Houston,
Texas
Mcpherson, w. perry*
Merrill Lynch,
In Attendance at Texas
Pierce, Fenner & Beane
Dallas, Texas
MANLEY,
PRATT, MARSOM B.
Estabrook
VINCENT*
&
SPARKS,
Co.
GEORGE
W.
Vinson, Elkins, Weems & Searls
Boston, Massachusetts
Houston, Texas.
V.
Republic National Bank
Dallas,
Group IBA Meeting
Fort Worth,
Dobbins
HUGUENIN,
FARRAND
FLOWERS,
|
INMAN, BILL*
JOY*
JOHN
FOSDICK,
Eddleman-Pollok
Co.
Dittmar
Texas
Dallas,
Judson
Dallas,
FRIDLEY*
Fridley, Hess & Frederking
Houston, Texas
Texas
JAMIESON,
Muif Investment Corp.
New
Dallas,
riRTHUR
Houston,
Dallas,
Texas
Currie,
Texas
Dallas,
T.
Worth,
GRIFFIN,
Dallas,
JUST,
L.
R.
DEAN
KELLER,
Rodman
& Renshaw
Chicago,
Illinois
Co., Inc.
' (?
,
York City
Rauscher,
Pierce &
San Antonio,
HANSON,
Co.
Texas
GUS*
Harrington & Co., Inc.
Jackson, Mississippi
W.
Austin,
San
Antonio,
KERR,
Exchange Commission
BEN J.*
National
National Bank
Wellington Fund,
Dallas, Texas
Securities
M.*
Bank
Dallas, Texas
C.
Dempsey, Tegeler & Co.
Los Angeles,
California
HECHT,
JOHN C„ JR.
Dempsey, Tegeler & Co.
Los Angeles, California
M.
Allison
E.
San
&
Antonio,
Wm.
N.
Co., Inc.
Texas
HENDRICKS, C.
Fort
Worth,
Co.
Texas
Houston,
Moyer & Co.
Pennsylvania
Marine Trust
W.
Co.
of New York
York City
Dallas Rupe & Son,
Inc.
Texas
JOHN
&
New
HOBBS,
Russ & Co.,
Inc.
San Antonio,
HOLLAND,
San
HOLM,
Texas
EDWARD
Creston H.
JR.*
Funk
Antonio,
&
Co.
Texas
DION R., JR.*
Lentz, Newton & Co.
Antonio, Texas
San
HORTON,
Dallas,
HOUSER,
Texas
C.
R.
J.
JACK
PAYNE,
First
Texas
San
American National Bank
Austin, Texas
Bank
Denotes
Mr. &
Mrs.
VOLZ,
D.*
of Texas
EDWARD
T.
San
Antonio, Texas
WAGGENER, NELSON*
Company
Walker, Austin & Waggener
Bank
Dallas, Texas
D.*
PEIRCE,
Long
McManus
Y.
N.
Securities
Co.
Allison
E.
&
Baxter
Dallas, Texis
WARDELL,
SHELTON, LOCKETT*
EDMUND
Houston,
J.
Management Co.
Co.
Texas
M.
Ltd.
WM.
P.*
Southwest Co.
Keith
Dallas,
&
Company
Texas
SMITH, KENNETH B.
MATTHEW
Mid-South
Dallas, Texas
Nashville, Tennessee
Securities
B.
Texas Bank
Co.
Dallas, Texas
L.*
Co., Inc.
FLOYD
Allison
&
R.*
Inc.
Antonio, Texas
WHITLOCK, R.
Jas.
Co.,
C.
E.
Tucker
(TED)
&
Co., Inc.
WIGLEY, W. R.
BRUD*
Reed
S.*
Austin, Texas
Dallas, Texas
C.*
JOHN
Antonio, Texas
E.
San
Canada
SMALLWOOD,
Inc.
&
WESTERMAN,
JR.*
Pierce & Co.
C.
Russ
SMITH,
Texas
Phillips Investment Co.
WEST,
Missouri
City,
SIMS, J. KEN
ART
CHAS.
R.
San
First
Edwards & Sons
Houston, Texas
Kansas
Co.
NATHANIEL*
G.
Stern Brothers & Co.
Ontario,
A.,
A.
J.
Dallas, Texas
Dattels & Co.,
BLAIR
WARE,
WEATHERSTON,
SIEFERT, R. E.*
Texas
PILCHER,
EDWARD*
Fund
Houston,
Dallas, Texas
RADER*
Texas
v
SHILG, J. ERVIN
Texas
Co.
Rauscher,
City
D.
Dallas, Texas
W. J.*
Burns, Corbett & Pickard, Inc.
PIERCE,
Crowe
York
WALTON,
JR.*
& Weeks
Municipal Securities Co.
Dallas, Texas
Corp.
Chicago, Illinois
H.*
Walker
City
Hornblower
York City
Texas
&
&
York
WALKER, JOSEPH T.,
Co.
Antonio, Texas
Republic National Bank
Stewart & Co.
&
City
GRAHAM
C.*
Texas
Perkins
York
WALKER,
& Co.
Houston, Texas
ALLISON R.
PICKAR.D,
Crowe
Texas
&
Goldman, Sachs & Company
R.
Shawell & Company
Chicago, Illinois
&
WALKER, ALFRED S.
Illinois
York,
New
Inc.
First Southwest Co.
*
EUGENE
Investment Co.
Bank
New
W.*
PHILLIPS,
Mercantile National
C.
National
CHARLES
Hugh W.
San
Texas
Antonio,
Dallas,
LYNE, LEWIS F.*
McCULLEY,
Chicago,
SCOTT,
M.
PERKINS, JACK F., JR.*
Worth, Texas
Parkhurst
Pierce, Fenner & Beane
Dallas, Texas
E.*
Texas
SHAWELL,
Texas
El Paso,
Fort
HOBBY
City
CLARENCE
New
Metropolitan Dallas Corp.
W.*
Worth National
McCall,
W.
of
Dallas,
Fort
McCALL,
WILLARD
A.*
PAUL*
Central
The Bond Buyer
Union
Harold S.
Parkhurst
■)
R.
Underwood & Co., Inc.
VINYARD,
Haupt & Co.
New
PEAK, PRESTON A.
Co.
Texas
JOHN
II*
Brothers
Garrett &
L.*
Chicago, Illinois
Dallas,
Inc.
Dallas, Texas
SHANKS, WILLIAM S.
Edwards,
PAYNE,
Lehman Brothers
McCALL,
Co.,
W.*
Merrill Lynch,
Galveston, Texas
LEE, ROBERT B.
Lentz, Newton & Co.
McCall,
PAUL B.*
McCall, Parkhurst & Crowe
&
SEAL, E. JIM*
Dallas, Texas
B.
A.
New
LOUIS
Dallas
LUCAS,
W.
,
Vance, Sanders & Co.
Nashville, Tennessee
San Antonio,
&
Underwood
UTLEY,
Corp.
MILLARD*
PAWEL, TOM E.
LINDBURG, ARTHUR R.
G.,
Ira
Louis Pauls & Co.
Louisiana
Newton
A.
Dallas, Texas
Dallas, Texas
Waco, Texas
M.*
LESLIE
Lank
York City
SAYRE, BYRON J.
G.*
McCall, Parkhurst & Crowe
Dallas, Texas
PAULS,
City
Antonio,
R.
C.,
G.
York
Sanders &
Texas
J.
Shreveport,
San
Manhattan
SANDERS, JESSE A *
WILLIAM M.»
Charles J. Eubank Co.
Brothers
A.
HORACE
Chase
Rauscher, Pierce & Co., Inc.
PARKS,
City, Missouri
San Antonio,
Co.
WILLIAM
W.
JOHN*
York
Lentz,
City
York
New
TOMLINSON,
UNDERWOOD,
City
Mercantile
PARKMAN, HENRY, III
LEONARD, JAMES G.
LENTZ,
S.
Wertheim
'
Hutton & Co.
Kansas
Company
Dallas, Texas
Boston
York
Dallas,
Pierce & Co.
PARKHURST,
Rotan, Mosle & Co.
Galveston, Texas
F.
E.*
&
Eppler, Guerin & Turner
Co.
Barrow, Leary & Co.
SCAN*
Dallas,
JAMES
Thomas
TURNER, JOHN
WARREN*
First
New
Lord, Abbett & Co.
Texas
O.*
City
A.
TUCKER, GIL*
Co.
Illinois
Chicago, Illinois
JOHN
S.*
Oklahoma
Lehman
GENE
A.
Rauscher,
H.
Dallas, Texas
Co.'
Jackson, Mississippi
LEARY,
Schneider, Bernet & Hickman
Dallas, Texas
HILSON,
KROEZE,
OWEN,
Houston,
Trust
Antonio,
&
PARKER,
Rauscher, Pierce & Co.
Lehman
HICKMAN, J. W.*
HILGER,
E.
KOCUREK, LCUIS J.*
E.
Hess,
IIIBBERD, WM.
New
W.
St. Louis, Mo.
San
Sanders
WM.
York
New
&
SAGE,
&
Co.
Dallas, Texas
New
Dallas, Texas
Texas
LATSHAW,
HESS, ARLEIGH P.*
Philadelphia,
Chicago,
Christie &
R.
The
OLIVER, ALLEN L., JR.*
Corp.
McClung & Knickerbocker
LAIN,
R.*
Edwards &
Woodcock,
E.*
ARTHUR
First Boston
Chicago, Illinois
Kroeze, McLarty & Co.
P.*
J.
GEO.
RUXTON,
Texas
Continental Illinois National Bank
Trust Co.,
WALTER
V.
The
City
Tulsa,
NOONAN, WM. A., JR.
Commissioner
JR.
Dominick
Bache
RICHARD C>
■
Pittsburgh, Pennsylvania
AVERY,
RUTTER, JAMES D.
Nongard, Showers & Murray, Inc.
Chicago, Illinois
Texas
Mercantile
HENDERSON,
Inc.
KNIGHT, NEWELL S.
IIECHT, JOHN
R.
Neuhaus & Co.
Antonio,
NONGARD,
B.
TOMASIC,
Lentz, Newton & Co.
San
KIMBALL, C. E.
KNICKERBOCKER,
MAURICE
E.*
Rowles, Winston & Co.
Houston, Texas
'
Kuhn, Lceb & Co.
ROWLES, RUSSELL B.
NEWTON, FRANK R., JR.*
PHILIP
Underwood,
TODD,
New
Houston, Texas
NEUHAUS,
KIRTLEY,
F.
Washington, D. C.
First
.
Co.
Municipal Advisory Council
Dallas, Texas
NELSON, WILLIAM, II ..
Clark, Landstreet & Kirkpatrick
Nashville, Tennessee
Keller & Son
Worth, Texas
&
Metropolitan Dallas Corp.
SAMPLE,
Texas
EARL
Securities and
HATCHER,
JR.*
York
ROOKER,
GUS
Corp.
Antonio, Texas
KENNEDY, JOHN X.
White, Weld & Co.
Chicago, Illinois
The
HASTINGS,
HENRY,
Austin,
Parvin
&
New
Reed
TOD.D,
F.*
Bank
Antonio, Texas
Dominick &
Texas
NELSON,
KING, WILLIAM M.
LEWIS*
Hart
EDWARD H.
H.
San
State
HART,
San
American Securities Co.
Dallas,
Dallas, Texas
MURRAY
America, Washington, D. C.
NICHOLAS
National
Dewar, Robertson & Pancoast
ARTHUR*
Keith
Houston, Texas
ROBERTSON, ALTON
Parker Corp.
North
Illinois
Mercantile
Investment Bankers Association of
HARRINGTON,
Corp.
M.*
Texas
ROCKEFELLER,
Henry
IIALPERN, MILTON*
Inc.
LAURENCE
Dallas, Texas
W.
Pollock &
E.
Wm.
New
Keith Reed & Co.,
Dallas, Texas
Co.
Austin, Texas
Illinois
Dallas,
Texas National
Fort
Chronicle
Northern Trust Company
ROBERTS,
Texas
JACK*
NEIL, WM.
National Corp.
Antonio, Texas
KELLER,
Hagberg & Co., Inc.
GEORGE
The
Chicago,
San
Dallas, Texas
HALL,
REICKHOFF,
&
tinsley, w. e.
Financial
&
Hutton
Dallas, Texas
City
JR.
D.*
Texas
IIAGBERG, M. A.*
A.
E.
NAZRO,
Management
Lord, Abbett & Co.
HACKBERT, PAUL L.
Kansas
REILLY, F. VINCENT
Texas
San Antonio,
A.
Shares
of
Wichita, Kansas
Commercial
F.
TEMPLE, R. F.«
First Securities Co.
Rotan, Mosle & Co.
WUNGER,
B.
D. A.
Chicago,
Dallas, Texas
REED, RAY T., JR.*
Muir Investment Corp.
Paine
Chicago, 111.
Eppler, Guerin & Turner
Dallas, Texas
M.
PAUL
KELLER,
P.
L.,
City
Dallas, Texas
C.
P.*
TAYLOR, W. A.
E.
Republic
HERMAN
Television
Texas
GUERIN,
S.
&
Joseph, Mellen & Miller, Inc.
Cleveland, Ohio
Bank
Texas
Investment Co.
Central
HUGH
Proctor
JOSEPH,
E.
JOHN
York
Keith Reed & Company
Attorney General
Houston,
MUIR,
Knoxville, Tenn.
Texas
National
First
Fort
Abbott,
Hutzler
Brothers &
Salomon
GRAHAM,
MOSLE,
THEODORE
New
REED, KEITH B.*
Houston, Texas
JOHNSTON,
C.
GRAFF, JOSEPH
Dallas, Texas
White, Weld & Co.
New York
DOUGLAS E.*
Brandenberger, Johnston &
Moreland,
First National Bank
SWICK,
Austin, Texas
Texas
JOHNSTON,
ROBERT R., JR.*
STEPHENS, JOHN*
Dallas, Texas
ELBERT*
Assistant
Corp.
Hudson, Stayart & Co., Inc.
RAUSCHER, JOHN H., JR.*
Trust Co.
&
1
W.*
Rauscher, Pierce & Co., Inc.
SANFORD
A. C. Allyn & Co.
Chicago, Illinois
MORROW,
P.*
SAM
Investment
Muir
Sanders & Co.
Dallas,
Texas
JOHNSON,
JR.
E.,
1
MOORE, MURRAY W.*
Murray Moore & Company
Dallas, Texas
EDWARD J.*
Municipal Securities Co.
Winston & Co.
GILBERT,
Management Corp.
Chicago, Illinois
JILEK,
Y.
York, N.
Rowles,
R *
L.
Dallas, Texas
Rauscher, Pierce & Co., Inc.
WALLACE P.*
Bank
STAYART,
Dallas, Texas
Dallas, Texas
Texas
Brothers
GOODWIN.
Texas
v
Houston, Texas
RAUSCHER, JOHN H.»
MILLER,
JOHN
Television Shares
GIBSON, D. RICHARD
Lehman
JAMES P.
Illinois
Vinson, Elkins, Weems & Searls
Inc.
Kansas
McClung & Knickerbocker
Dallas, Texas
Glore, Forgan & Co.
Chicago,
GATTI, JOHN*
Antonio,
Co.
City
W. E.
Houston, Texas
HOWARD*
Rauscher, Pierce & Co.
Texas
JAMIESON,
DONALD*
& Co.
Wichita,
York
STAPP,
RATLIFF, HARRY
MAYES, HARLAND*
JR.*
&
Kidder, Peabody & Co.
New
Ranson & Co.,
Co.
Assistant Attorney General
Austin, Texas
S.,
James
STALKER, ALFRED J.
III*
RANSON, 8. IL, JR.*
Texas
METCALFE,
Rotan, Mosle
San
S.
Austin, Texas
EDWARD,
Houston, Texas
JR.
Texas
MAYES,
Texas
JUDSON
JAMES,
Texas
T.,
HARRY
Dallas,
W.
Rotan, Mosle & Co.
NEILL
First National Bank
First Southwest Co.
Dallas,
Edwards & Co.
Houston,
MAYER,
Co.
JACQUES, JAMES F.*
FREEAR, L. A.*
FRYlt,
Southwest
First
Dallas, Texas
Fridley, Hess & Frederking
Houston, Texas
Fort Worth,
Houston,
JACKSON, W. C., JR.
FREDERKING, WILBUR H.
Wm. N.
Co.
Dallas, Texas
Inc.
& Co.,
Southwest
First
,'7
ROBERT
Gibson, Spence & Gibson
Company
RANDALL,
Dallas, Texas
MASTERSON,
&
York City
New
J.*
MASTERSON, THOMAS
Underwood, Neuhaus &
WINTON A.*
JACKSON,
W.*
Hammill <fc Co.
A.
Houston, Texas
Illinois
Chicago,
Houston, Texas
FRANKLIN, ED
R.*
Bank
National
Texas
SPENCE,
N.
RICHARD
Rand
White, Masterson & Co.
John Nuveen & Co.
Dallas,
RAND,
Republic National Bank
-
Dallas, Texas
Houston, Texas
CARROLL
Mercantile
City
Texas
MASON,
BRYCE*
Huguenin & Boothman
Dumas,
of Commerce
Bank
National
Dallas,
Texas
A.
SPEARMAN,
C.*
Municipal Securities Co.
& Co.
York
New
JAS.
Dallas, Texas
edward
Wertheim
Shearson,
Howard
&
San Antonio,
Texas
markham,
MARTIN, JAKE T.*
VAN H„ JR.*
HOWARD,
FIZER, ED
First National Bank
RAMBIN,
Texas
& Trust Co.
E.
F. Hutton
&
Company
Dallas, Texas
WILLIAMS, LYMAN W.
Hornblower
&
Weeks
Chicago, Illinois
1
@FedFRASER