Full text of Commercial and Financial Chronicle : May 17, 1956, Vol. 183, No. 5534

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iU-J

ir,
ESTABLISHED 1839

%
%

Reg. U. 8. Pat. Office

Volume

183

Number 5534

New York 7, N. Y.,

Thursday, May 17, 1956

Price 40

Cents

Copy

a

EDITORIAL

What's the Outlook ior

We See It

As
"What

we

need is

a

new

Construction

The New Deal

vision.

accomplished a great deal; and
Republicans who fought every
inch of the way accepting the programs of the
New Deal and the Fair Deal, at least during this
Leap Year conversion.
- v
these

same

"But I say to

By DR. ROGER F. MURRAY*

Vice Chairman of the Board, F. W. Dodge Corporation

Associate Dean of the Graduate School of Business
Columbia University

F. W.

-

it is always the case that
yesterday's progressivism is today's moderation.
you

America does not stand still. We need

ments

to face the

new
problems of America, and the new
problems of the world—the new capabilities of ;
our

terial

outpacing industry's available

and

manpower

who

shopping

go

the

in

construction

to launch itself upon

mitments

industry's available manpower
material supply.
Building
and
engineering

another and still more radi¬
costly program of reform and collectivism.
We ardently
hope that there are not enough
voters in. this country still under the
hypnotic
spell of Franklin Roosevelt and his imitators for
it to be possible for the Governor to make much
political headway with such obviously and emi¬
a

and

came

typical

set

decisions

37

first

the

con¬

Eastern

quarter

of

the

led

17%.

first

quarter

policy, advises this is no time to make a
long-range commitment of investment policy to a longrange forecast due to uncertainty of interest-rate turn.
Notes effectiveness of credit restraint, and the increasing

instability of expanding discretionary income.
For the second time in about three years, we are in a
period of tight money and rising interest rates. Although
we
experience some discomfort on
observing that very large portions
of

assets

our

lower rates

were

committed

the past, we can de¬
considerable satisfaction from

rive

and

investors, we must end up
feeling of well-being as we
watch average earnings rates creep
steadily upward; and we are quite
naturally disposed to hope that this

ers

with

of

rec¬

a

trend Will continue

engineering contracts.
Thomas

S.

Holden

This

first

A

rise

quarter

followed

indefinitely.

contract volume
itself

diately
that

increase; it followed

recorded

preceding

both

20%

a

There

one.

construction

and

a

year,

increase

over

1955, which
the

evidence

was

business

general

imme¬

last

year

in Interest

required. He
makes it crystal clear, for example, that there is

dences

of

the

strong

demand

Continued

flow.

In

fact,

as

sluggish behavior of the savings
each day passes, we become more easy

activity

on

address

by Mr. Holden
tion, St. Louis, Mo.

43

page

Continued
on

page

before

the

Lead

Industries

Associa¬

in

Municipal

Securities

the

special

section starting

on

page

25.

State, Municipal
and

%I®?

Florida Power & Light
Attractive Growth

Stock

CORN EXCHANGE

on

Request

CITAIIIIHIO

BANK

MEMBERS

AND

OTHER

NEW

YORK

STOCK AND

I

a •

s

STOCK

REVIEW"

ON

4

EXCHANGE

COMMODITY

EXCHANGES

115

ST., N.Y.

Beach

—

Rye,

N. Y.

REQUEST

HARRIS, UPHAM & C°

OF NEW YORK

Broadway, NewYork 6, N.Y.
Miami

*

THE FIRST NATIONAL CITY BANK

DEPARTMENT

30 BROAD

STOCK

Bond

Members New York Stock Exchange

Dept. Teletypes NY 1-708

120

V"

,•

DEPARTMENT

BOND

ARE NOW AVAILABLE

J. R. WlLLISTON & CO.

Housing Agency

Bonds and Notes

LATEST*
"COMMON

Memorandum

Public

COPIES OF OUR

HAnover 2-3700

CHEMICAL

BOND

44.

by Dean Murray before the 36th Annual Conference
of the National Association of Mutual Savings
Banks, Washington,
D. C., May
7, 1956.

Government,

telephone:

page

address

in

State and

on

42
*An

*An

Ro*er F- Murray

for

funds in contrast to the

PICTURES IN THIS ISSUE—Candid photos taken on the occasion of the 21st Annual
Meeting of the Texas Group of the Investment Bankers Association of America appear

DEALERS
U. S.

Rates?

As in all such periods, we are apt
to be most impressed by the evi-

eleven consecutive calendar years of
had

Secular Rise

are

Continued

to

in

the prospect of investing new money
on a more favorable basis.
As lend¬

The first quarter

-

all-time dollar volume

new

unmis¬

heavy

rank and file who need to have them in mind at
sound

the

no

for investment

ords fof residential_and iidffrresidcntial
building contracts and

facts, which, though obvious to the thoughtful,
not by any means
always understood by the
if

It

last year by

upon

the

are

times

during

corded.

But the country is indebted to the Governor
for rather pointedly calling attention to certain

all

awarded- in

States

and

year,
as
reported by F. W.
Dodge Corporation, amounted to $6,099,872,000.
This was by far" the
largest first quarter total ever re¬

the scene when con¬
spirit of the people were quite
different from what they are at present.
ditions

tracts

too fast for the

this

Rooseveltian tactic, but the author and finisher
of the New Deal

rise

may

are

turning point in the bond market;

a

expects relief from present tight money conditions sooner
rather than later; and, after charting four implications

market

cal and

It is

takable signs of

ma¬

in the coming months may encounter a certain amount
of traffic congestion before the
year is out.
It is just
possible that construction demands and contract com¬

last very long, though, as yet, there

to

supply in view of this first quarter's largest total

Folks

Thus Governor Harriman of New York, assert¬

ing that the "middle of the road" is an "Eisen¬
hower trade mark," sounded a call to his party

these.

Murray concludes we may be looking at another
cyclical peak in the demand for funds which is not likely

anticipated cement capacity increase will be adequate.

nation of ours."

as

Dr.

recorded for the 11 consecutive calendar years of
contract volume increase. Mr. Holden
questions whether

new limitless potentialities
physical strength of this great

nently dangerous ideas

Consultant, Bankers Trust Co., New York City

ever

country, and the

of the moral and

Dodge official evaluates growth factors operating
in the economy and concludes it is most likely that there
will be gradual substantial construction volume increases
rather than spectacular spurts with periodic setbacks.
Sees 1956 construction demands and contract commit¬

vision

new

In the Investment Outlook

Industry?

By THOMAS S. HOLDEN*

and the Fair Deal

we see

Critical Economic Factois

•:.v.

THE

Chase Manhattan
BANK

BROADWAY, NEW YORK 5

34 offices from coast to coast

Net Active Markets Maintained

To Dealers,

Stale, Municipal,

T. L.WATSON &CO.
ESTABLISHED

County and

1832

Members

CANADIAN

Exchange

Orders

Executed

On

U. S. Thermo

CANADIAN

SECURITIES
Commission

New York Stock

Banks and Brokers

Control Co.

BONDS & STOCKS
All

COMMON

Analysis

Canadian Exchanges At Regular Rates

oar

American

Stock

Exchange

District Bonds
BROAD

STREET

NEW YORK

4, N. Y

<£>oaiApe4t company
OAUAS




r

'-.'"'J

DIRECT WIRES TO

MONTREAL AND TORONTO

Goodbody

a

Co.

MEMBERS NEW YORK STOCK EXCHANGE

iDGEPORT

PERTH AMBOY

upon

request to

Unlisted Trading

DEPARTMENT

Teletype NY 1-2270

15

first

CANADIAN

115 BROADWAY

1 NORTH LA SALLE ST.

NEW YORK

CHICAGO

Pomdiioti Securities
(ORPORATIOTf
40 Exchange Place, New

York 3, N.Y,

IRA HAUPT &CO.
Members New
and

other

111

WHitehall 4-8161

Boston

York

Stock Exchange

Principal

Exchangee

Broadway, N. Y. 6

WOrth 4-6000

Teletype NY 1-702-3

DepU

Teletype NY 1-2708

Telephone:

Enterprise

1820

The Commercial and Financial Chronicle

(2350)

2

For Banks,

The Seciisltf I Like Best

Brokers, Dealers only

This

Forum

A continuooi forum in

whic?i?
a different group of experts
advisory
fr»n all sections of the country
participate and give their reasons for uvoring a particular security.

If It's

network

and

than

New York

interested in
blocks, our ex¬
perienced trading staff is fully
equipped to serve you promptly.
or

are

number

a

of the

risk

of

Associate

One

1920

is

Member

Stock

120 Broadway, New York
WOrth 4-2300

maker of

5

•

Private

to

it

Because

SAN FRANCISCO

•

Wires

they
easy

is

CHICAGO
a

PHILADELPHIA

ma¬

Principal

cyclical i
I

sue,

Cities

but my own guess is that
they will be larger than the $2
per share level of the first quarter,
but smaller than the $6.61, per

for

it

short

and

terms, not for

J.

A.

$4 per share were paid. Dividends
were
omitted in the last half of

Cortese

permanent in¬

RIGHTS & SCRIP
Since 1917

|
.

VT-.!.i

grr='

-r

'

V

'

•" ■}': "

V

,

•

I

Members
New York Stock Exchange
American

§§

Stock

120 BROADWAY, NEW YORK 5

g
fj

TEL. REctor 2-7815

lathes

spindle

EES

boring, milling and drilling ma-

1

chine.

These

and

jj
W

Trading Interest in

who make them

are

craftsmen.

change to

A

American Furniture

^low^ $ laJVearVnA"

men

highly skilled

therefore,

time of

writing is selling (New
York Stock Exchange) at 34. The

new

results

in

the-

As

been

The

well

become

men

design, unit

in

used

market

received

and

62.

to

sections of the economy

year,

the outlook for capital goods

price of 58-

a

course,

is not

either

revision,

upward

In
note

addition

of

the

to

long-term

in

payable

million,

$4

STRADER, TAYLOR & CO., Inc.
Lynchburg, Va.
77

Banks, Brokers and Dealers

important

an

with

industry,

($23

if they would reduce working capital below

last

The

Securities

sales

offices

the

across

in

-retired

25 Broad St.

New York 4

Dlgby 4-4460

NY 1-3222

Branch Office:

Representative:

Key West, Fla.

throughout the world.
are

pany's working capital was more

Its

in the automo-

used

than

million

$10

tive, machinery, aircraft and elec-7 available
trical

industries

and

by

for

and

$214,000

dividends

(or 29 cents per share).

compan-

there was

Capitali-

'

making

railroad,

equipment

shipbidjvu',

.

consisting only

for

the

zation

oil

and

of 728,640 shares of common,
'

simple,

is

considered
its

the

year,

type

the

foundry

Now

represented

by
1,000,005
shares, of which 973,52f
were
received t rough
stcck dividends and stock splits
this $26,472
investment ha
,

As I said

about American Cyan-

pieces
be

had

to
new

all

of

also

the

can

ture
*Mr.

faculty

not

needed

obtained

one

not

is

also

Fordham

and I think that Bullard is in this

category now. Obviously, I recom-

the

mend it only to those who can

keeP a close watch on business

but

conditions, because the company's

only will supply t
needs,

be enlarged to

Cortese

of '

The'

they

cast
and

outside,

company's

but

meet fu-

Total cost of

requirements.

of

coast.

a

member

University.

of

the

-

business is sensitive to changes in
the business weather. But that
fact

also,

I

think,

makes

it

a

good buy at this time for those
seeking

capital

gain when

prices generally are high.

stock

practically

at

stationary levels for three
to

years

be stirring due
improved Japanese economy.

now

appear to

common

a

For

97.4%

or

current

than

market

worth

$30,000,000.

considers

rupted

the

of

in

one

assets

ard is

the

Securities

write

Co., Ltd.

Established

and

1897

Home Office Tokyo — 70 Branches
Brokers
& Investment Bankers

volume, the rapidly-ris-

\

111 Broadway,N.Y.t COrtlandt 7-5680

J. K. Rice, Jr. & Co. Buy and Sell

of the top money-mak¬

one

the

of

information

or

Yamaichi

more

And when

current

Call

company's uninter¬

increases

insurance

is

industry

CATARACT

It operates in
rapidly-growing
insurance, disability and

explained:
most

two

fields of

MINING CORP.

life; it writes only the most de¬
sirable

business

within

these

fields; it has the freedom to, and
does

employ,

modern

Bought—Sold—Quoted

merchan¬

dising methods in the sale of its
policies;

its

and

accounting

general operations

dled

with

All

exceptional

factors
of

ance

continues

to

company

fine

same

this

to

Progress Report
Available

The

and

Brokers and Dealers Only

Standard's

enjoy the

management,

and
han¬

continu¬

a

Beneficial

record.

are

efficiency.

point to

amazing

about

manage-1

have

a

that

times

14

life

average

J.K.Rice,Jr.&Co
J

Bell System

how

greater

are

Its sales

methods

1-714

"OOf

ever

in¬

are

<?

\

creasingly effective. And its sales

potentials,
reveal,

as

the following facts

continue to be

volume

has

industry
Yet

rn
*

insurance

premium

to

risen

to

years,

400%

of

a

1955

$3,000,000,000.

65,000,000

still lacking

with

o
V)

the

total

with

"•

enormous.

During the past ten

disability

=Sj

the

of

than

now

'

Broadway

Teletype N. Y.

Its operat¬

company.

'

ESTABLISHED 1908

REctor 2-4500—J 30

ing facilities and operating know-

Americans

hospitalization insur¬
having

85,000,000

saving^

no

surgical insurance, and with 120,000,000

com-

modern

East

could

largest

the

company

most

the

on

STOCKS
after remaining

:

ance,

amid when I recommended it in
pleted construction of a newr^rey* these columns at 53 last year, a
iron foundry, many features of' g°°d time to buy a stock is when
which
are
automatic, which is it is depressed for passing reasons

Buenos Aires




i9oi,

in

tion at only $26,472.

At the end of last year, the corn-

country and

branch offices

I A PA N E S E

preferred
aoweve/V

leaving the net capital contribu¬

pay-;

that date for the period involved,

old

(9ppenhe.ime/t Sc r€oy

The

stock.

common

before.
or

than covered by net income after

This

West German

million and unless

12

has

construction industries.

Firm. Markets in

$6

declared

be

cities in this country, sales repre-

ies,
Tel. HAnover 2-4850

with

not

may

ments after Jan. 1, 1954 are more

products

37 Wall St., N. Y.

backlog

our

Incorporated in 1940* Bene'icia
was originally financed
through the sale of both preferred

that cash

largest in peacetime history.

outlets

&reeue<mi(iompara|

provides

the total of declarations

sentatives

1929

also

dividends

Request

ESTABLISHED

It

time.

tool

compared

as

in

and

part

machine

Exchange

NY 1-1557

Life Insurance Co.

of

year's sales of $30 million) is the

company

Bought—Sold— Quoted

the

Bullard's

million,

MURPHY CORP.

on

Standard

ment' continues

common

Direct wires to

Standard

tion

play

Stock

La. - Birmingham, Ala.
Mobile, Ala.

large^
them•-•equal* annual installments from
stake.'about $16;000,000 worth at
for many years, as mass producers Juty) 1954 to July, 1969, there are
current markets, in the company's
of consumer goods strive to imshort-term bank loans totaling $4
future. The company continues to
prove
productivity in order to million. The long-term loan agreebe one of the strongest in the in¬
reduce costs.
In
the mass proment Permits short-term bank
duction industries, machine tools loans totaling $8 million at any dustry, with a capital funds posi¬
good for some

American

New Orleans,

Member Los Angeles Stock Exchange

or

velopmeqts.

it may

Members Jfew York Stock Exchange

HAnover 2-0700

Vice-President, Fewel & Company,
Los Angeles, Calif.

pre-

downward, by future market de-

this

Steiner, Rouse & Co.

~ROBERT H. HUFF

other
a

diction and the estimate is subject

are

in full production.

some

This, of

price

stock

future

probable

movements indicate

machines

new

industries is excellent and

-

methods

usual

a

of

costs.

continue

Prospectus

>

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

ers

While there may be doubts about

Commonwealth Natural Gas

For

Los

Members

cumulation since last fall and has
apparently begun a good uptrend. easily

unit

now

Camp Manufacturing

LY

shown characteristic signs of ac-

prod-

a

It has

analysis to estimate the amplitude

have

Bassett Furniture Industries

TWX

the

in

large, but temporary, increase in

costs decrease.

39

complex

are

familiar with the new

Life Insurance Co. of Va.

resumed

were

cellent, bullish position.

horizontal

a

Bought—Sold—Quoted

Insur-

t

last

money

1

model,

LD

lost

company

I
^
ucts of engineering and the

Exchange

jj

(Page 2)
Life

"

business

basic lines, single- and multiple-

| McDonnell & To. ]fg
H

Standard

first quarter of this year when
.ing earnings which reached $3,g year ($1.41 per share) for two. 20 cents was paid.
I would ex272,000 last year, and the current
■§§■ reasons: a decline in defense or- fect larfmr payments in succeeddividend disbursement of $1,200,H ders and, in order to incorporate in£ quarters.
COO per year, this valuation wouh
H the most modern advances, the
From the point of view of marappear very conservative, indeed.
| complete redesign of its three
analvsi* BullaH is in an exThe

|

HI

but

1955,

vestment.
_

1

dividends of

share of 1954, when

intermediate

jj Specialists in

fluctuate widely. Nor is it
to estimate this year's re¬

sults,

-

recom¬

mend
the

s

Kupsenel -&

President, Fewel & Co.,
Angeles, Calif. (Page 2)

was

point in taking an average of
the company's earnings, because

chine' tools.

Teletype NY 1-40

BOSTON

improved

.

no

known

-

Louisiana Securities

Cortese,

Co.—Robert H. Huff, Vice-

ance

quarters and the earnings curve' and
should continue rising.
There is

Bullard, the

well

Exchange

Beneficial

Beneficial

quality are expected.
Financial results have been in
the
black during the last two

these

of

and

economies

tial

re¬

the

to

probable
profit is small.

Corporation
American

in

lation

Substan-

scheduled for the fall.

The degree

is

capacity production

; num

i:

Cortese,

Co. New York City.

Casting at the
began this spring;
full operation and

in

now

buys than mo it

leading issues.

Partner,

nor

Society.

foundry

new

of the bull market,
secondary
issues

of

Company—A. J.

the Equitable Life As-

from

<Ui0f.ce

to be better

seem

New York Hanseatic
Established

Alabama &

loan of $4 million at

i'v;,{~term

Company

At this stage

small

be,

to

11 the securities discussed.) V

by me sale of stock in 1954 for
i
million ' and by " part . of : a

City

4%
Bullard

intended

not

sre

v

oundry is estimated at $6.8
rxu'lf >n and the funds were raised

Exchange

400

Whether you

Bullard

the

Members of the New York Stock

*

securities.

large

offer-to

Partner, Cortese, Kupsenel & Co:,

wires
markets in

private

trading
Over-the-Counter

active

more

of

ac m

A. J. CORTESE*

facilities
a
nation¬

trading
supplemented by
complete

they to be regarded,

are

v

Try "HANSEATIC"
wide

Thursday, May 17, 1956

Week's

Participants and

Their Selections

..

(The articles contained is tbig foruxv

are

.

in the investment and

Over-The-Counter.

Our

..

against

having

insurance

no

general medical

expense,

it is obvious that the sales

tials

of

poten¬

disability insurance have

hardly been scratched.

During the past ten
insurance

250%

to

in
a

increase

is

population

high

taxes,

increased

current total

$410,000,000,000.

Yet

measured

gain,
and

Quotation Services
for 42 Years

of about

when

this

against the

the
the

life

years,

has

force

Over-the-Counter

impact

of

doubling

of

National Quotation Bureau
Established 1913

living costs during the period, it
is

easy

to understand why "For-

46 front Street
CHICAGO

Continued

on

page

43

New Yorit 4, N.Y.
SAN FRANCISOO

Volume 183

Number 5534

.

.

The Commercial and Financial Chronicle

.

(2351)

3

>■

jj |^|

Shortage of Copper Dae

* jr*

1

Articles and News

To Rise in Living Standards

-

By EDMOUR A. R. GERMAIN

Critical Economic Factors in the Investment Outlook
—Roger F. Murray

Mr. Germain estimates this
year's free world copper capacity if

compared to 2.7 million in 1953, and '

<

primarily the U. S., to invest by
production. Author convinced the

r

copper shortage is more serious than most realize and finds the
basic market situation is the same now as earlier this
year.

-

the

of

the

aluminum is

industrial

a s

the

this

coun¬

as

else-

where.

velop its

own

the

on

of

copper,

problem

de-

raw

particular markets

are

going

itself.

the

the

doubtedly attracted by favorable
prices,
have
been
moving
to

£.

A.

Germain

R.

market.

meet

the requirements of a technologi¬
civilization.
this

country, there is too
thinking with re¬
gard to possible available supplies
of the ore out of which copper is
wishful

But

plainer

every

of

age

the

truth

becomes

day that the short¬

copper

serious

more

is

probably

than

much

almost anyone

is willing to admit.
The

>

tendency

much

situation.
U.

S.

here

short

too

is

Memories

take

to

view

a

of

the

of

"depression"

in

the

1954

copper,

shrinking domestic consumption
by 100,000 tons or 7%, are prob¬
ably yet too vivid to permit many
people in this country to be very
bullish

about the

market, despite
the shortages and high prices of
the last year and more.
will

It

be

recalled,

however,

how the decline in U. S. consump¬
tion in 1954 turned out fortunate
for

Europe1

,

because

it

enabled

countries like West

the

Germany and
Kingdom to get the

United

metal

they needed then. World¬
consumption of copper was
up
about
10%
in
1954
even
though
we
needed less
of the
wide

Of

The rise in European
in 1954 was 400,000 tons.

what

course,

since then is
demand

5%

on

has

happened

rise of 20% of U. S.

a

top of

a

further rise of

in Europe and the rest of the

free world.

cop-

total

6

Tight Money in

9

200,000

scrap,

of

metal

ary

tons

is

un¬

:i

Evolutionary Atomic Age and Investment Banking Targets
•—Harold Vagtborg
^

13

*

Rand McNally

Peaceful

,

Harlow
■

Energy

U.

S.

Any

Curtailed

Directory

7

First
10

on

_________

Economic

at

Some Hard Sense About Interest Rates

(Boxed)

59

Corpus Christi Refining Company
As We
Bank

See It

and

that probably can't

long as the prices are high,
the temptation for labor to press
for higher wages is of course go¬
ing to be strong. Higher wages

Gulf Coast

(Editorial)

Insurance

Business Man's

last more than two or three years

Cover

Stocks

industry of course would
only tend to bolster up the high
prices.

given

to

press

rather

;

Lower

a

Bank

Rate

in Britain?"

From Washington Ahead of

the

20

;___

Mutual
NSTA

62

1

Funds

in the copper market is

Picture Blurred

The domestic picture is blurred

by the talk of all the competition
that is supposed to exist
copper

tion

and

there

aluminum.
is

but

the

between

Competi¬
aluminum

people when discussing financing
with

their bankers

insist the

from copper.

One would
per

the
of

think

that

the cop¬

industry would be glad to let
aluminum people take some
the

market

pressure

off

is

it

of

the

the

Number

for the U.

source

wisdom

or

and, his¬
has been a big

S. market.

Notes

On

Our Reporter on

have specialized in

Our

Reporter's

Public

Utility

Railroad

Wilfred

18

May

propriety of such

the

surface

been

derive

the

self from

anyhow,

Chile

making

do appear as

what certainly
well-timed moves to

greatest benefit to

the multiple—there

Continued

from

Governments

Albany

•

Nashville

Now

on

page

it¬

The Market
The




•

j_

New York Stock Exchange

•

•

Direct

W ires

to

63

24

__

in

42

Murphy Corp.*

Registration

Security

52

Offerings

57

Gulf

Sulphur

46

,

.

TELETYPE N. Y. 1-5

Chicago

48

•

Glens Falls

Like

Pan American

16

Best

Sulphur

2

Revlon*

4

,

Washington and You

64

General
Twice

Weekly

1

Drapers' Gardens, London,
land, c/o Edwards & Smith.

COMMERCIAL and

FINANCIAL

B.

Park

DANA

REctor

HERBERT D.
WILLIAM

2-9570

SEIBERT,
DANA

to

Reentered

Y.

Thursday

SEIBERT, President

and

Other

Chicago

city

news,

Offices:

3,

HI.

135

Salle

on

request

Pan-American

Union,

in

Dominion

Canada.

of

Other
Bank

$40.00

St.,

(Telephone STate 2-0613);

$60.00

and

per

rate

cf

year;

per

Record

of

maas

in

WHitehall

—

Monthly,

York

Direct

PHILADELPHIA

3-3960

1-4040

& 4041

Wires to

DENVER

the fluctuations In

exchange, remittances for for¬
New

BROADWAY, NEW YORK 6

Teletype NY

(Foreign postage extra.)

account

39

year.

year.

eign subscriptions and aaveriu»eiueuka
be

S.

Publications

Quotation

year.

Note—On

per

$63.00

Countries, $67.00 per

m V. FRANKEL & CO.
INCORPORATED

of

the
La

Rates

Subscriptions in United States,
U.
Possessions, Territories
and
Members

news

etc.).
South

Prospectus

Febru¬

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

Other

and ad¬
vertising issue) and every Monday (com¬
plete statistical issue — market quotation
records, corporation news, bank clearings,

Worcester

Dana

second-class matter

as

Subscription

Editor & Publisher

(general

*

B.

Capsule*

Eng¬

ary

9576

Thursday, May 17, 1956
Every

C.

Company

COMPANY, Publishers

Place, New York 7, N.

E.

Copyright 1956 by William

CHRONICLE

Reg. U. S. Patent Office

state
•

and You—By Wallace Streete

,

Security I

The State of Trade and
Industry

ST., NEW YORK 4, N. Y.

Schenectady

INC.

Exchange PI., N. Y.

are

PREFERRED STOCKS

Boston

40

Philadelphia ' Chicago * Los Angeles

22

Report

Securities

Prospective

The

TELEPHONE IIAnover 24300

mors

'

Spencer Trask & Co.
Members

in

securities

Teletype NY 1-1825 & 1-4844

5

Securities Saleman's Corner

25

BROAD

Mackie,

HA 2-0270

Securities

Securities

WILLIAM

25

markets

'

Published

For many years we

trading

over-the-counter

Singer, Bean

10

But

moves.

has

350

&

Observations—A.

judgments are likely to be thrown
askew by raising questions over
the

Request

Three

metal

torically at least,

ex¬

pansion of their business does not
depend
upon
stealing
markets
away

because

producer

important

on

60

in recent months. What Chile does

Domestic

maintain

15

News About Banks and Bankers

•

We

than

News—Carlisle Bargeron

Indications of Current Business Activity
i

dramatic

moves
made
by Chile
the past year but especially

*Circular

8

■

attention

the

Co., Ltd. Units

8

Recent Moves by Chile

great

Mining Corp.

Westcoast Transmission

i •

Einzig: "Towards

The overall world situation has
been obscured here to some ex¬

the

Rare Earth

42

Recommendations

Leaseholds, Inc.

Pacific Uranium Mines Co.*

22

Bookshelf

the

by
in the

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

Regular Features

present

—as

Philadelphia, Washing¬

.

year,

While

Teletype: NY 1-4643

Direct wires to

33

_

Broadway, New York 4

DIgby 4-4970

Accelerated

,

Coming Events in the Investment Field

also

42
16

Dealer-Broker Investment

tent

J.F.ReiIIy&Co.,Inc.

Estimate; Blames
Board's1 Restrictive Credit

Reserve

tion—and

in

MINERALS

Sales

probably inordinately high prices
in the face of shortage
leading to
large profits, is an unusual situa¬
one

,_i

Development Stressed by

Development Reported
Tempo by David L. Grove___^

work

further.

GENERAL
24

*

Passenger Car

Demand

Philippines

stoppage
anywhere, however, would imme-„
diately
aggravate
the
supply
situation

15

___

_

Cuts

around
70,000 tons of it to fabricators in
the

*

City Bank

Curtice

Policy

V

1955 due to

I

FOUR CORNERS

be available

course

this

Atomic

National

Barring labor disturbances, the
estimated 150,000 tons of copper

consumers

FEDERAL URANIUM

-v

second¬

to reach the U. S. market this
year
over last.

to

.*

Issues New Bank

1947

available

strikes will of

11

12

v

secondary

more

market in

SABRE URANIUM

Destabilizers

Problems and Activities of Texas Securities
Dealers
W. E. Tinsley___-

annually ;
than eight or nine years ago and
an
increase of 25,000 tons to a
total of 150,000 tons is expected

lost to the

LISBON URANIUM

Tight Economy—Allyn P. Evans

Accelerated Depreciation's Use to Stabilize Economic
Growth
—John Airey

present, '

about

6

Outlook for Railroads—Roger W; Babson

■

is equal to about two years' U. S.
mine
production.
At

over

-

The

from

metal sold in the world since

metal here.
demand

of

consumers

refined

metal,

this case, cop¬

made.

other

NEW YORK

WHitehall 4-6551

Financing

Convertible Bonds: Why and Which—Ira U.
Cobleigh
a

WALL STREET,

URANIUM

per, great quantities of secondary

metal—in

In

/

Fortunately, for the fabricators :

;

99

Telephone:

.

and

much

Obsolete Securities Dept.
5

The Broader Monetary Scene and
Dangerous
—E. Sherman Adams
j_

has solved the
into the alu¬

course,

by

business

4

r

unique characteris-

constantly be¬
ing demanded
t o
produce

cal

1

camps

particular metal, con¬
there will be some over- !

minum

per—to

t

the

tities

Try 99 Wall Street!

3

Prosperity—James N.'Land-L

Future Capital Requirements and Problems
of
—Robert F. Ulin

com¬

will

metal

Obsolete*?

>'

i

v

ceding
lapping along the way. Anaconda, one of the big producers of

In¬

materials

both

Germain________^____

.

of

creasing quan¬
of

each

based

tics

obviously

in

try

copper

in

men

that

admit

world, though
probably; not

the

Bank Assets in

battle to the death.

a

Reasonable

revolution
over

all

-

panies, it must be said, take the
position that the struggle with

salient problems arising
the relentless progress of

more

out

Not

For

Outlook for the Oil Industry—Edmond N:
Morse

developments by various firms, copper producing
countries, and factors responsible for increased copper demand
them.

R.

(SONG)

Cover

>

Reviews

The story of copper today illus¬
trates in poignant fashion some of

THE SWAN

Shortage of Copper Due to Rise in Living Standards
—Edmour A.

tmmmmmmmmm—mmmm

Cover

What's the Outlook for the Construction
Industry?
—Thomas S. Rolden__^__
i.

expects world copper industry,
1960 $1^4 billion to expand

Page

V—m—mm—mmm AND COMPANY

•••*:■

_

to reach 3.1 million tons

iicHitnsTEin

-

V

funds.

iuu*i

SALT LAKE CITY

The Commercial and Financial

Chronicle

.

.

Thursday, May 17, 1956

.

(2352)

4

will

Outlook lot the Oil Industiy
By EDMOND N.

MORSE*

Senior Oil Analyst, Smith, Barney

York City

finds excellent prospects for higher earnings with
larger increase to stem from improved domestic

Oil Analyst
the

|

& Co., New

level

refining, marketing and higher oil production, and foreign
interests to account for major part of earnings increase over
the

long-term.

Mr. Morse points out: (1) oil market stock
than—if not parallel—most indus¬

(2) Middle East does not appear as great a
first glance might indicate; (3) increasingly diffi¬
find oil in U. S. A. to maintain reserve capacity, and
as

be paid to areas capable of
long-term basis. Suggests companies and

(4) greater investment attention

supplying oil on a
areas to help
build

and

employment

fa¬

industrial

ac¬

the

moment

Steel

CB

to be leveling off

seems

operating
autos

Industrial output for the month of

found

industry

ship

repre¬

sents

an

in

im¬

with approxi¬
32% increase for indus¬
try in general. Therefore the oils
were
on
the
defensive
in last
15%.compared

portant factor
inves¬

the

mately

Morse

N.

Edmond

mating growth in petroleum de¬
mand. For example, at the end of

have

a

weeks

recent

how

about

The first real clue on

continued

Some

do so.

to

months ago "The

can

The following table shows
magnitude of these seasonal
fluctuations for
1954,
1955 and

pated, nor was the steel industry might not seem very much, it is
expected to operate at capacity actually a one-third greater in¬
through the second half of last crease than' had been expected

end

demand

and 1955, indicating
undertone to gasoline
and also heating oil in

Most forecasters saw indus¬ only five months ago. The coldertrial
activity. An eight million than-average winter of 1955-56
had a great deal to!do with this
the second half of the year. In
excellent gain. In addition, analy¬
retrospect, industrial activity in sis of the statistics shows that
the second half levelled
off or
despite the cold weather which
continued upward slightly.
helped heating oil demand, gaso¬
The nation operated more auto¬
line consumption was up d sur¬

response

to colder weather.

mobiles and drove more miles per
auto

This
*An

Bond

8,

last

year

address

Club

of

than

demand.

by Mr. Morse before the
Buffalo, New York, May

1956.

The
of

the

second

and

third

gasoline demand.
mated that second

1955

1954

100
96

100
92

100
95

95

February

quarters

It is now esti¬

94

87
SOL.

June

90

87

July

85

84

August

91

84

September

90

86

October

90

November

102

strong, "The Iron Age,"

December

114 H.

87
96
108H,

Lots
the

more

.

,

accounts

for

over

European consumers also are

and

year

tionship between supply and de¬

than just Antoine's, the March Gras, or

would

It

mand.

Sugar Bowl—at least for alert investors.

be

sign

a

of

danger if the Commission did not

in

they're finding more and more opportunities
Louisiana industry. In lumber and petroleum r. .

in

petro-chemicals, sulphur and natural

parent that the Commission should

Because

take

gas.

are

a

find buyers

few that

we

make markets in—or help

half

you

The

-

Hibernia Nat'l Bk. in New
Louisiana Power &

Orleans

Light $6 Pfd.

year

in

the

ap¬

latter

consumption

as

Sugars, Inc.

Southwest Natural Gas Co.
Standard Fruit &

Steamship Co.

upon

ucts.

Fenner & Beane
NEW YORK

70 PINE STREET

Offices in 107 Cities

Inventories

5, N. Y.

affect

Order books of most steel

A

year

ago

inventories
were

inventories

gasoline,

but

were

not

too large. This
are

larger

smaller

in

producers continue to reflect gen¬

gives no sign of improve¬
for steel have yet been
placed for July delivery. There is some talk of automakers push¬
ing June tonnages back ibto July, but the expected price increase
Meanwhile, the situation in Detroit
Scarcely any automotive orders

this.

has discouraged

scheduled

only half the nation's auto builders

last week with further

five-day operations

for

statistical

recorded

estimated

agency

the

are as

low or lower than

Continued

on

page

46

produc¬

car yield
year's low of 112,730

past week's

completions, another drop from the
in the week preceding.

Truck

remaining relatively firm at 1956
expected to fall behind the 1955 total as

though

building,

Through the week previous, truck manufacturers had main¬
a lead over 1955 on a year-to-date basis since the third

tained

week of 1956.

weekly counts during last spring
General Motors Corp. and
late-winter changeover dips.
Chevrolet,

at

front,

labor

the

On

Chrysler

last

Corp.

reflected an up¬
Dodge following
announced

week

affecting 6,200 employees and Ford Division en¬
labor tiff at its Dearborn, Mich, plant which resulted

further lay-offs
countered

a

in walkouts.
In
the

addition, less-than-five-day

following producers: four days

bly plants including B-O-P

four days at

home facilities; four days at

Chrysler Division and three

Elsewhere, American Motors

company

days at DeSoto.

reported it will not resume pro¬

Nash-Hudson cars this Monday as

has been building only

Steel Output

Scheduled This Week at 95.7%

change in favor of a walkout if
week-end

premium pay,

of Capacity

will
its demand
"Steel" magazine stated on Monday

The chances at present are

for

10 out of

American Motors;

planned. The
Ramblers since April 23 and
sales of the smaller car are running at 1955 levels.' No
startup time for the larger vehicles has been set.

duction of "big"

definite

operations were scheduled by
at all General Motors assem¬

assembly units; 4V2 days at

15 Ford Division car

against a steel strike, but they

the union stands pat on

of this week.
The

in

other

products. Demand is up so "days

supply"

shortchanged since last

building up.

ment.

prodqct

prices and prices affect earnings.

year

Merrill Lynch, Pierce,

inventories of refined prod¬

healthy. They

Trading Department

tremendous backlog has been

a

eral market strength.

reports

matching

of

supply to demand lies in its effect

Texas Eastern Transmission
Mississippi Shipping Co.'
Whitney National Bank of New Orleans




the

importance

New Orleans Public Service

Southdown

General Gas Corporation

becomes

It

increases.

and sellers for:

Central Louisiana Electric Co.

of

action.

allowables

increase

Specific stocks?
Here

such

in position to take up some of

Overseas customers have been

the slack.

of

40%

domestic

production to restrict
production to anticipate the spring
decline in consumption. This is a
factor
of
strength
designed
to
maintain a strong statistical rela¬

,

But most steel producers are

The strong

H. High.

It is therefore normal for Texas

Lots to offer

that steel business is

asserts.

price and strike ;
looking for a good third
quarter—strike or no strike—and it's doubtful that the quarter
will average any less than 90%. The continued boom in construc¬
tion, freight car building, oil and gas and capital goods spending
constitutes a strong backstop to the letdown in automotive output.

trend

LOUISIANA!

lethargic attitude—for the moment

strength of the market is due partly to

weekly levels also was
of this time last year.

quarter demand

our

Detroit automotive cutbacks, some
There's no

However, there is no doubt also

—in steel.

The

88
85 L.

which

on

overlooking other facets of the economy.

doubt that Detroit is taking a

at 112,590

95

L. Low.

With interest centered
observers are

lay-offs and labor unrest contributing to sharply reduced
tion schedules, "Ward's Automotive Reports," revealed.

May

March

April

-

declares.

were

1956

January

depend heavily upon

year

Demand

less than
others, this trade weekly

would be down to rock bottom in

In the automotive industry

(January equals 100)

prisingly large amount.

before.

ever

gasoline

boomed

1954

stronger

Index of Monthly

fabricators in the area had been
Workers were being laid off and
being contemplated.

in some plants and 30 days in

15 days

hedging.

1954
economists looked at 1955 Gas Journal" in its study of 1956
prospects and almost without ex¬ demand concluded that demand part of 1956. In 1954 demand de¬
ception anticipated only a 3%-4% should increase about 4%. This is clined 20% between January and
average
increase
in
petroleum about an average increase for the May and thereafter rose 35% by
consumption. Few were higher in industry over a period of many the end of the year. In 1955 the
their estimates. Actually the in¬ years.
However, once
again trend was much the same but the
from
January r to
May
students of the industry seem to decline
crease turned out to be just about
twice these estimates. The econo¬ have been conservative. The amounted to only 15%, followed
mists' error stemmed almost en¬ record so far; this year indicates by a rise of 34% by the end of
year.
For
the first three
tirely from miscalculating indus- that first quarter demand rose the
trail
activity. An eight million 51/2% over a year ago. While an months of 1956 the decline has
been
somewhat
less
than at the
unit auto market was not antici¬ increase of 5 ^2% instead of 4%

year.

Iron Divi¬
week—not

operations.

manufactured items

The

the

of

inventories comes from the South, where

Despite all the talk of an inventory buildup, many steel con¬
would be in bad shape—quickly—in event of a general
steel walkout. Steel inventories in relation to incoming orders for.

be

a

a

sumers

year.

Oil and

inventories as

quite three weeks later—some
forced to cut back

further reductions were

we

steel consumers are racing

transportation strike shut down the Tennessee Coal &
sion of U. S. Steel Corp., beginning April 26. Early this

optimistic about oil industry
prospects when the State of Texas
tor's
deciding
has reduced its production allow¬
if oil equities
are
attractive investments.
year's market. Action of the oil ables each month since February. 1
One
of
the
fortunate
things confirmed this as a following table To understand this apparent con¬
about the oil industry in recent will indicate. In the latter part flict it must be realized that de¬
for
petroleum
products
of 1955 the oils began to outper¬ mand
years has been the susceptibility
of
its economists
to underesti¬ form the market as a whole and fluctuates with the seasons of the
in

build

to

a

had many inquiries in

We have

industry earnings of about

oil

efforts

their

the steel trade.

Seasonally

These factors caused an increase

V

against time
hedge against higher
prices and a possible steel strike. For some, it's like walking on
a
treadmill—it's tough to barely keep even, according to "The
Iron Age," national metalworking weekly in its current report of
the steel industry,

In

in

Production

Texas Reduces

Oil Earnings

relation¬

construction showed some curtailment.

layoffs in mining and

factors.

because

1 9 5 5

this

*

ally and were 4% below those of a year ago. The most noticeable
decrease in claims occurred in Pennsylvania and Kentucky, where

high

Record

of the industry's ex¬

April showed little change

unemployment insurance declined fraction¬

Initial claims for

1954 personal income can be high
industrial activity but consumption of gasoline does
not necessarily have to set new
perience in 1955 followed by an required tremendous amounts of
records. As long as the average
appraisal of 1956 prospects seems heavy fuel oil. The record level
of
residential
construction
in¬ consumer feels that his income is
in order before discussing the out¬
creased the number of oil burners secure
he tends to
burn more
look for the
in use by about 8% so that heat¬ gasoline
than if he is worried
oil
industry
ing oil demand was increased by about the future, even though his
and for some
at
least
that
amount.
Lastly, present income may be high. He
0 i 1
securities
winter weather in late 1955 ran may conserve his dollars for the
individually.
much colder than a year earlier anticipated
rainy day and burn
The 1956 out¬
to help raise consumption of heat¬ less
gasoline. This occurred in
look
cannot
1954.
Present
evidence is that the
ing
oil
to
a
new
all
time
high.
be studied
Thus in 1955 we had a combina¬ average consumer must be quite
alone. It must
tion of almost entirely favorable optimistic.
be related
to

review

A

country-at-large in the

Board stated.

in

out

_

previous months this year, the Federal Reserve

the level of

from

industries orders con¬
exceed shipment.

the

As

Auto Production
Business Failures

Over-all industrial production for1 the

other major
tinue to

Trade

Price Index

period ended on Wednesday of last week was high and steady as
output in the steel, electric power, paperboard and petroleum in¬
dustries held close to the level of the previous week.

capacity or
exception of
equipment.
In

farm

and

Food

.

the

with

Carloadings
Retail

Commodity Price Index

and Industry

with most
industries

Production

Electric Output

•

either

at

it

to

close

basic

nation's

the

of

The

State of Trade

wages,

motoring weather, and
vorably psychology.
''r-

portfolio.

aggressive common stock

an

1955.

tivity has leveled off and is now
only one or two points below the
high established by the Federal
Reserve index. Industrial activity

trial groups;

cult to

of

At

should continue to do better

problem

of

good

term

near

ahead

5%-6%

run

Obviously-heating oil demand is<
not important. Gasoline is the im¬
portant 'product. High
gasoline
consumption depends upon a high

metalworking publication reports

settlement if the union does not
As

far

as

the

steel

demand could be

a

odds favor a peaceful

push the premium-pay

demand.

the premium-pay
Its cost alone amounts to 55 cents

companies are concerned,

strike issue.

Continued

on page

50

Number 5534

Volume 183

Prosperity

•

+>■1

*1

4*

Hindsight has proved that in
past the quality of lending
tends to deteriorate in long pe¬
f

the

•

Mellon

Senior Vice-President,

...

„

National

Bank

Co., Pittsburgh, Pa.

Trust

and

,

^

y

riods

By A. WILFRED MAY
Mellon National Bank official refers to the

THAT BULL MARKET ILLUSION

set-back within the next few years

^

currently raging stock-split craze is based on the popu■lar twin beliefs that such -reduction of the purchase price im¬

:

portantly broadens the share ownership, and results in a price
In

/,'y/7y:^V;7v. 7'
previous

a

3,

(May

space

1956)

•

"'

in-

we

Reliance

of

Splits," by G. Austin Barker, Manager 7

■

*

Cleveland

the

not

increase

automatically
in

market

bring about,

a

The

price.

I, U

'.77 A New Investigation
-

A. Wilfred

May

7.77y,;j7'7'

;

r

effect

the

of

savings banks.
residential loans,
21% in volume of the loans made
in 1925-1929 eventually went into
default as compared with only 8%
of the loans of this character made

Bank

of

multitude

consist

largely

borrowers' obligations to pay. The

out
was

such assets, therefore,

the ability of borrowers

y

'

in

those of the 50 companies included
the

For the industrial segment,
Standard

and

Industrial Average that split during

Poor's

In the case of public utilities, all splits were:
included if the common stock was listed on either the New York

period, were studied.
or

American Stock Exchanges
industrial

34

As

result,

a

total of 41 splits by

a

utilities are

companies, and 34 such actions by 31

•/■

"'/covered.
three

related

were

to

a

date two

weeks

prior to the announce-

■

ment of the

proposed split, to take into account the advance dis¬

counting factor (as via "split candidates" nominating technique).
One

problem consisted in preventing the results from being

affected

by general changes in dividends and market prices midst

•the bull
of

Such changes were avoided by dividing the index

period.

change for the particular company by the index of change for

the

corresponding Standard and Poor's Average.
The

study handles the dividend factor by differentiating the

companies

with

dividend

increases

above

the

entire industry, from those with increases In

the average, at the intervals following the split of
six months, and

for

average

the

disbursements below

three months,

12 months.

dates

of

the

is generally a rise

split's

the Treasury to

becoming

its

and

effective.

This market price spurt usually takes place whether or not
is

accompanying

an

dividend

there

become

The sole

closely
rise

the dividend action.

on

the

exceeded

its level

industry's

In those

cases

the

average,

where the dividend

price

continued above

existing before the split's announcement, although not in

proportion

dividend

the

to

increase

dividend

was

months after the split

increase.
than

less

Furthermore,

the

industry

where

average,

the

three

the price fell below the pre-announcement

level, more than wiping out the initial gain.

And by

one year

All this midst

lowing, the price deteriorated further.

a

fol¬

will

£

*

Hence

we

must

*

conclude

that

*■

if.

any

permanent rise in market

;

7

•

1920-1924.'/ These

for

James

days

he

replied,

Land

N.

-

reckoning.

Will

Rogers,

asked

was

depressions,

have

same

is

what

reported

"Well,

every

motion

once

now

circumstances

of

chain

which leads to inflation.

caused

to

a

less of its effect on

have
and

Regard¬

quality, how¬

it does tend to reduce the
quantity of government obliga¬
ever,

have to stop and pay'up."
history getting ready to re¬
peat itself again, or has the crea¬
we

tions in

Is

the hands of banks.

For

instance, during 1955 the pressure
obtain

to

tion of debt this time been suffi¬

for

funds

banks

commercial

loans
to

a

caused

dispose

of

or

not imply¬

a

tion

on

general deterioration seems sup¬
ported by the overall facts regard¬
ing corporate debt.
These facts
have been obscured somewhat by
a

increased

use

"lease-back"

of the

which creates obligations i
that do not appear on the balance

device,

Nevertheless, it seems

sheet.

—

Brokers

Cataract

—

owned, the rise in the debt of non- ;
financial corporations during the

it

was

about 1*4

cumstances.

times Gross Na¬

tional Product for that year; now
it is only about 70% of the cur¬

Weaker

rent annual rate of Gross National

An

of

Relationship
be

can

continuing
States

ability

of

the

course

sale

of

of

the

of

United

the
to

meet

The

come

new

strength

security

money

obligations,

the

while possessing a large degree of

that the

of

maintaining

by

past

the

false

on

and

on

There is

sense

condi¬
without

a

of

reverse

enterprises,

debt has been

strong

whereas
indicate

would be the part

For instance,'after an

period of prospertiy per¬
haps we should regard a current
ratio of 2 *4 to 1 as being no better

Land before the
Pennsylvania Bankers Association 62nd
Annual Convention, Atlantic City, N. J.,
May 3, 1956.

than
of

1%

following

1

to

liquidation

when

a

period

things

had

debt, not only over the
of the last 15 years but also
during the present decade. This
suggests
that there' may be a
porate

greater segment of borrowers of
marginal strength among unincor¬

than

porated businesses
corporations.
and

state

While

debt

mental

local

•

SOLD

•

years,

ably
Gross
was

it is nevertheless consider¬
smaller now in relation to
National Product than it

not seem

mary or

likely to be

initiating

in the economy.

cause

more

to

raising

Markets

maintained

Mining

—

Oil

—

in

TRANS-CANADA PIPE LINES LIMITED
over

200

stocks

Copies Are Available on Request

Industrial

Exchange Place

Branch Office

Jersey City 2, N. J.

WISENER

AND

COMPANY

LIMITED

73

King Street West, Toronto

1, Canada

149 Broadway

New York 6, N. Y.

DIgby 9-3424




\

Tele

-

JCY119

MEMBERS INVESTMENT

DEALERS' ASSOCIATION OF CANADA

pri¬

The problems of

new

Continued

available

CAPPER & CO.
1

in

a

of trouble

state and local governments

relate

money

on

Study of the Assets of:

and its holdings

Such debt

1941.

1940 and

in

does

QUOTED

Latest progress report

Firm

a

sub¬

increased

has

CANADIAN DELHI PETROLEUM LTD

Mining Corporation

BOUGHT

prepared

among
govern¬

stantially since the war and par¬
ticularly
during the last three

the test. And perhaps

been put to

we

span

extended

condi¬

Mr.

a

prosperous

borrowers,
experience would

part

of wisdom.

tions in the money market which
address

into

as

find that
increasing at
somewhat faster rate than cor¬

rated

their
a

a

temptation to be content with re¬
duced margins of safety, as for in¬
stance in the relationship of cur¬
rent assets to current liabilities on

ing deficits when they unfortu¬
nately occur. The Federal Reserve,

necessity

of

for many marginal
Also many lenders

serious reversal.

largely

recognizes

>

tions continue

its

must also the funds for financ¬

independence,

*

lulled

become

for payments of prin¬

cipal must of
as

Enterprises
result

unfortunate

enterprises.

doubt

no

Government

it requires
from

Marginal

long period of prosperity is that
it creates a deceptive appearance

Federal Reserve-Treasury

There

last 15 years

$7 billion of United States
Government securities. This sub¬

about

from higher earnings.

Dealers

fair¬

ly clear that, if we leave out ac¬
crued taxes offset by short-term
U.
S.
Government
obligations

has not been as great
proportionately as the growth in .
either
corporate profits *or the
stitution of risk assets for riskless
general economy during the same
caused some lessening in the aver¬ period. It is true that this is partly
because the debt rose relatively
States Government. The Federal age quality of bank portfolios.
Private debtors and state and little during the war years, but
debt, as we all know, is a huge
local
governments cannot have the even if we deal only with the
one. It has not, however, increased
markedly in total amount in the same degree of assurance as the present decade we find little evi¬
Federal
Government in obtaining dence of any markedly dispropor¬
last 10 years, and relative to the
size of the economy it has declined money with which to meet their tionate growth in corporate debt.
? When
we
turn to unincorpo¬
considerably. At the end of 1946 obligations under any and all cir¬

ciently restrained that no new day
of reckoning is to be expected?
The
largest
single
borrower
whose
obligations
are
held by
banks is,
of course, the United

We have

Banks

strong':

less

is

debts

price does not result from the stock split itself; but rather from

higher dividend disbursements,

;.

serious deterioration of posi- j
the part of most business
enterprises.
'
' "7
" /*
7
In the corporate field at least,
the veiw that there has not been

ing

dimin¬

a

or

...

suggesting that there may be
margin of borrowers whose abil¬
In

than it should be, I am

question regarding the

the

off;before

paid down or paid

be

ity/to1'pay

Banks

in

purchasing power. Prosper¬
ity is a threat to the quality of
such obligations only if it sets in

general

/

default.

ished

many

painful

*An

bull market!

govern¬
to cause

quality of United States Govern¬
ment obligations is not whether
they will be paid but whether the
dollars in which they
are
paid

.

when

general

Governments

the amount of

of

the

bayond

alike

obligations in dollars.

increase.

However, following the split date, the market price depends

,

over y trouble hit..

up

ment to such an extent as

over-optimis¬
tic
regarding

been

set itself

should

borrowers'aijd

and

Federal

the

that

unthinkable

Reserve

in market price between the

announcement

14%

and

in .the

past, in',
periods of
prosperity,

the

resulting data, including voluminous charts and tables,

that there

last No¬

is

*'•V

their

The Results

show

This properties, were 37% for 1925-1929

financing.

demonstrated anew

the

Product.

The

in y 1920-1924. i The corresponding
percentages for loans on business

promises. 7' f

•

months, six months, and one year after the split, were used.

These

-v

of

case

J Many- times

then

7:.;. 'v' '

'

To scrutinize the change in dividends and prices, intervals of

y

its necessary

vember

wild

•

;'/«7

the

assistance which striking divergences can be only
Federal; Reserve then ren-. partly^ explained by the fact that
dered to a Treasury refunding. It the earlier loans had more time to

on

split enthusiasts; *• Particularly interesting,- Relevant and - debt that could
convincing is a just completed broad study covering splits of inr:: b e
serviced
dustrial and public utility common stocks during hie period from
and paid,- and
1945 through 1955.
:
: / 77''/ ;;/,7/
77;•,'. ;- 'A.,;--.7 J therehave

of

automatic,

an

will enable the Treasury to carry,

of

quality of

have
-*

be

unstabilizer.:

commercial
associa¬

mutual

and

tions

In

many

7 '

assets

,

lenders

^

stock splits and related dividend policies on7

-

price assuredly should dampen the spirit of the

market
-

exploration

Thorough

'

777* 7

accompanying dividend increase.

an

loans

mortgage

1920's by life insur¬

the

savings and loan

banks,

prosperity tends to give

-7,,*

lasting 7 in

determining/
7factor is rather the;presence or absence of.'.
.

of urban

sample

one

a deceptive appearance of
marginal firms, deteriorate the quality of
lending, and notes the unsustainable recent rates of consumer

to-keep

1956, showed that, actually, stock-slicing

ary,

any

companies,

turns

Illuminating Company, in the, Har¬
"Business Review" of January-Febru-'

does

-

.

with

of

way

ance

Electric
vard

[ 7

Research y

By

prosperity.

in

on

Financial

war,

debt and residential mortgages, may prove to

post-split increase in market price
v* is even more illusionary.
7/77:7
An - objective
factual
study,
"Effective V
Stock

severity than
but not

more

of

example, I shall cite some figures
from a study of the National Bu¬
reau
of Economic Research of a

a

made

strength to

-

possibility of

comparable to the early 1930'$, in urging bankers to adhere to
conservative lending and investment standards. Mr. Land ob¬
serves

troduced data denying the validity of these
premises, particularly the belief that splitting
permanently; broadens the • ownership base.

-

.

.'/•;;

•

in'-', this

article

of

readjustment that has occurred since the

The

increase.

view¬

similar

a

point in regard to the relationship
of earnings to charges.

'v

By JAMES N. LAND*

have

should

we

Bank Assets in
•

5

(2353)

The Commercial and, Financial Chronicle

.

.

.

page

for

20

6

The Commercial and Financial Chronicle

(2354)

plans for

Futwe

ment

Capital Requirements
And Problems of Financing

in

that

you

cate

a

all

and

equip¬

But I

■

advance

signs

Convertible Bonds-

tell

can

indi¬

expansion of
requirements during the

five

Why and Which

years.

By ROBERT P. ULIN*
"

ject for today: How

this will not be much of

a

of

for
is

in.

"This
good business
probably will

economist to say that

an

going

be

to

a

In fact, you

year."

be

very

much

not

inter¬

ested

that

you

will

be

not.

Each

year,

floor

space,

national prod-

given volume

a

in

this

economy

temporary condition.

a

technology

uct, industrial

urge

production,

ard.

in-

taking

c o m e

the

unit

of

our

economy,

along

and

the

consumer's

to improve his living stand¬
Even without inflation it is

personal
volume

of busi¬
is rising.

with the factory's drive to improve
'

capital to finance a1

more

of

production,

or

unit

a

of

purchases.

consumer

Uiin

P.

profits.

As

matter of

the volume

books
is

of

such

of orders

the

manufacturing industry
that
a
rising trend of

getting used to record
years. They come along one after
the other, and an occasional mild
we

are

Thus, the need for

recession—like

those

of

1949

or

new

capital

advances not merely in step with
the growth in our population, or
unit

but

at

flects

consumption
compound

a

the

of

goods,

rate that

[increased quality and-

complexity of the goods that peo¬
ple want. This creates problems

not

It would

add

not

mucn

knowledge either, if I
that this will

demands

be

a

the

on

to your

were

to

say

of record

year

capital markets.

The first part of 1956 has already
seen
such demands.
As most of

know, the prospect is for

you

all-time

level

of

business

an

capital

expenditures.

Contrary to some
expectations, the amounts of
muney
sought to
finance
new
housing
(and
to
improve
old
housing) are proving as large as
in 1955. Inventory loans are still
increasing. The volume of con¬
instalment

loans .has

de¬

slightly.
But recent
of consumer intentions

sur¬

sumer

clined
veys

that the trend will

us

again.

We

must

still

tell

be

soon

up

finance

a

great unsatisfied demand for state
local

and

construction.

As

we

look at total capital
no

requirements,
let-up is in sight.

Just

make

to

myself

unpopular
witn
the financial
managers
in
this group, I might add that we at

McGraw-Hill

hard

trying

are

increase

to

these

very

problems.

We are

working, with our indus¬
advertisers, to spread the

trial
word

and

about

the

for

types

of

consumer.

goods that

—such

as

highly

plant
construction

new

i

it's

hard

to remember

you

time

let
that all forecasts,

in

represented

rising

all

allowance
of

terms

by

these',

the

time,-

for

inflation..'

capital

require¬

was

broad

a

need.

U.

Ira

the table

non-financial corporations and are
somewhat smaller than the fig¬

types of capi¬

new

we

are

advertising

automated
five

machine
to

ten

tools

times

as

as
the
simpler machines
they replace, and still offer a real

much

bargain in terms of labor saving
and increased quality of
produc¬

would

sio

n

was

current

a

best

carry

convertible bonds

Commerce, which include
incorporated business.
It is

on

present

cor-y "converts"

us; vide

porate financing that concerns
y;'-y

grade

10%

a

mar¬

advantages

stand

most

a

the

tOClay.
As

Other

un->

out.

logical

speculator

They

of

pro¬

straddle

for

thinks

he

who

in 1955, non-finan¬ should now cash in on, and salt
corporations invested a total* away, some of his profits, but who
you

merit

see

billion

new
plant and, would hate to be out of the mar¬
1960, this invest-» ket if it broke out again in a roar
likely to reach $32.5 bil-> on the upside. The broad market-r

is

in

By

lion, assuming that 1960 turns out
to be

a

ability of good convertibles makes
a
of normal prosperity.' them
quite
safe vehicle
for
require-v preservation of invested values,

year

This projection of capital
ments was made in our

de-< without

own

foreclosing

opportunities

great gain if inflation rather
but it is very close
projection s-4 by other * than deflation should turn out to
be
the
next
order of
economic
authorities,
including
the [ Ma¬
chinery and Allied Products In¬ business.
similar

■

stitute, which has published excellent studies on this subject.
There
to

are

number

a

of

•

ways

estimate

plant and equipment
requirements for 1960. One is to
relate them

national
tures

it

7%

reach

GNP

000

of 5Vz

ble

into

not

be

overlooked, and that is the poten¬
tial

notes at

to

what issues

GNP

in

1955;

that

they

billion.

We,

on
an
can

trial

processing of lowwhich is creating

requirements

of

in

millions—or

electronics,

Let's

find with

can

General Dynamics 3y2s due 1975

have
at

lively market

a

105.

around

The

common.

glamorous

a

13.33 shares of

well

is big,
managed,

merger

of Electric

company

and

representing

on N.Y.S.E.
$1,000 bond

Each

is convertible into

Boat

Co.,
Consolidated
Vultee
Aircraft, and Stromberg Carlson.
General

sells

Dynamics
62;

at

common

it would

have

now

sell

to

at 79 to

equal today's bond price.
Another top flight item is the

Union
due

Oil

of

the

California

at

1975

109

at

59.

issue
into

at 65.

Common

now

Union

is

common

sells

3%

convertible

not

only

a

great West Coast oil company but
its horizon has expandedl greatly
virtue

bv

stock

to

30%

a

Gulf

of

and

Oil

debenture

which may

in due

Company's
holdings
amount

course

interest in Union.

Another choice

"convert"

com¬

ing due in 1975 is the W. R. Grace
Co.

&

(shipping, chemicals, ferti¬

lizers)
into

3 V2%

above

today's
sell

converts

cash

convertible

issue

at 52 V2, only 3 points

comn-on

The

price.
110

at

Grace

providing

a

yield of 3.2%.

largest telephone company in the

ores,

capital

we

market romance, available at rea¬

power

know how carefullv bank

aminers
folios

comb

bond

over

ex¬

port¬

(as

they should) and how
assiduously thev rule against pur¬
chase

retention

or

of

speculative

securities.

Accordingly no bank
would
presumably be permitted
to purchase a 3% convertible at

U.

S.

and

is

It

which

the-

indus¬

by

1960

contemplate
gain

and

so'ely

would

warranted

and

rifice of yield
curring

the

market loss).

speculative

a

reauir^

an

un¬

unaccentable

sac¬

(in addition to-in¬
of

risk

substantial

Conversely if Scott

managed

splendidly

has grown fabulouslv.

offered,

cently

by

It

re¬

prospectus,

most attractive 4%

a

"convert" due

The price for switching into

1971.

is

common

49

against

current

a

quote right nearby at 45V2.
should turn out to be

chase at 105.

hundreds

that adds zest

sonable prices today.

and

new

to

now

b-mks in this class of securitv. We

in

the

are

all

expendi¬

buying

a
premium price yielding, ,sav,
come up with a similar total.
might add that, to get the total,- 2%. The examiners would sureiv
we
must include new industries. argue that such a purchase would

as

Since

risen

shopping for "converts."

see

and

grade iron

$1.50.

It is this search for spec¬

tacular performers

I

—such

100, converti¬

at

common

expected gross

1980, which
$460 billion, yields

of

or|top drawer

should

that

Oc¬

1954,

Such

of

estimate of $32.5

convertibles

were

In

years.

General Telephone is the second

reasonable

appears

will
a

6%

were

the defensive value

2Vz

of commercial

to the

product.

There's also another element in

50)

1950; they sold

Canadian Pipelines
and Petroleum Ltd. offered $750,-

to; for

partment,

withia

tober,

in

210 bid.

premium

expendi¬ gin. So it's no wonder these hy¬
tures, published by the.U. S. Dept.v brids have become so popular.
of

350

at

at

common

par

the

business"

"all

for

ures

banks

at

5%s

slight.
Further, while

offer

marvellously

some

vertible into

offered

many

"converts"

plant and

new

capital

Canpete

choice
yield
equipment requirements — which* comparable to that of the subject
are
the largest single group
of stocks, they enjoy a far higher
capital
requirements — for
1955 collateral value than blue chip
and 1960.
These are figures for all commons; and until recently
many
I have listed

see,

been

profitable converts. Interprovincial Pipe Line 4's due 1970
(con¬

and

Cobleigh

which you

have

qualities, as
gains.
There

$3.20

so

how much money

see

In

for

has

privilege-

First, let's

about, not

defensive

vistas

common

be conservative.

Now, where will

and talk

cases

much

available.

now

the

charge for the

get the money?

down to
so

"converts," plus

quality

then

conve r

we

of

varied

prime
bonds, where

ments, this forecast may actually
we

a

when

there
such

n

right;

own

and

works, and'
durable goods for project the trend of capital re¬
quirements for separate industries

electronic computers, or

from

—cost

of

public

Some of the
tal

types

new

equipment,

methods
new

its

picture

re¬

change the fact for the financial community, for
that, in our time, the habitual it is their .responsibility to see
that the new capital is available.
course of business is up.
1954—does

un¬

attractive

the

for

this

not

sounds optimistic,

is

equipment.

Growth

business is assured well into 1957.1 the
But

basis

really

of $24.5

Compound Ilate of Capital

fact,

on

now

a

many

selection

value

cial

corporate
Robert

February have brought
"converts" down to a yield

1.3 mil¬

year

never

good. The rising interest

so

rates since

Just in 1955

If

buyers

of

.

of

in; It is built into

terms of gross

or

year,

This is not

whether

year,

measured

built

more

ness

bond

lar

without

they

cost

business

d

o r

it

had it

our

issues

some

capital requirements during the'
five years were too - low.

volumes

factories want
more complex
tools, better lighting, air condi¬
tioning and other features. So the

rec-

a

every

Convertible

about

and

cars—and

on

past

they want bigger,
expensive cars — whether
can
pay
cash for them or

more

tell

I

if

Each

gadgets

more

in>

year

—

comment

.

get
business
we

the defensive merits of prime

on

Let's remember- also that the dol-'

So

with

per

years?

remind

me

to cash.

houses,

longer of much interest

no

but

demand

of

providing realistic depreciation policies; (4) capital
goods price inflation amounted to 8%-10% in past year and
15% or more in past two years, and (5) small business firms

It is

5%

homes—not

next .five

of

access

—

Some notes

-

in the next
will

finance
perhaps an average

capacity.

new

going

we

to

new

1956,

or

Where

of

million

lion

is an excellent time to raise equity capital; (2)
advantages in arranging standby by bank credit; (3) impor¬

lack

money

7

now

tance

the

industrial

—providing unpredictable inflation and technological changes.
do not raise capital requirements further.
Mr. Ulin notes:

(1)

years?

increase

are

expansion

five

expansion

problem for the financial markets

a

finance

to

steady, upward
pace, in the course of estimating corporate plant, equipment
and working capital needs will increase one-third more by
19$0—totaling $48 billion as against $36 billion in 1955.
Expects corporate retained cash flow to increase one-third by
1960, necessitating $16 billion of outside funds. Believes
capital—even without inflation—at

new

Enterprise Economist

This brings me to my main sub¬

McGraw-Hill Economist refers to economy's built-in demand
for

By IRA U. COBLEIGH

Financing Business Expansion

Publishing Co.

Department of Economics, McGraw-lIill

Thursday, May 17, 1956

.

continuing

capital
next

plants

new

1956-1959.

.

.

certainly

Scott

not

This
lively one,

costly

a

pur¬
1

Paoer

3's,

This

earlier.

a

we

mentioned

company

has

ap¬

peared on everybody's growth list
and

the buyer of these 3's at 112

has

a

trial

call

on

the

blue

a

at 79,

common

above

chip indus¬

only 6 points

market.

Moody rates
may
be >as big an industry as4
and
everyone
military electronics or television, Paper 3% convertibles (now sell¬ this bond "A"
knows an "A" paper is at the top
ing
at
112)
sold
in
a
somewhat
and require as much
plant ca- *
goods industries are going to sue-'
depressed stock market, down to of the class!
pacity.
'
ceed further in their drive to im¬
Other blue chip convertibles to
97, they might then be regarded
Still another way to estimate
prove products, increase demand
as aooropriate for bank purchase
keep your eves on are Bethlehem
and
incidentally — raise capital 1960 requirements for new plant on
t^e basis of the high credit of, Steel 314's of 1980 at 120.
Ten
requirements. Just how well they and equipment, is to figure the
tb<* bor-ower, and the reasonable points cheaper this issue would be
are
succeeding, we will not know over-all need for new capacity—
a doll.
Conversion price is at 140
yield offered.
until we get the full results of or in dollar terms, the addition to
In general, if or when a highly with the stock now quoted at 151.
The basic
the McGraw-Hill survey now be¬ our stock of capital.
r?t°d convertible bond affords a And of course the daddy of all con¬
work
tion.

So

it

looks

as

—

if the capital

,

*

The
trend

capital, like the
of business, is in a steady

upward
to

seem

♦An

for

need

Eacn year, people

course.

want

address

bigger

by

and

better

Mr.

Annual

Business

Ulin before
Conference of

University of

Chicago,

April

Fifth

27,

the
the

1956.

—

on

ing

conducted

—

on

long-range

the

1894 £

has

Institute.

ucts
ESTABLISHED

this

been

Machinery and

checked

I

their

MUNICIPAL BONDS

trial

capacity

panies

simply
projections

trend

CORPORATE BONDS

the

these

dustry

trends

will

billion

$17

by

com¬

participating

McGraw-Hill

way

LOCAL STOCKS

indus¬

new

reported

directly

by

Prod¬

have

against the plans for

STATE AND

done

Allied

The

surveys.
are

going,

be

spending

on

new

in
in¬

least

at

capacity

by

1960.

yield within Vs%

or

V4%

plain debenture

of

the

another
able

One-third

Higher

ATLANTA
LONG




•

1, GEORGIA

DISTANCE 421

less

than

try

must

ernize
do

its

only half—or

half—the

also

story.

replace

existing

and

a

little

Indus¬
mod¬

facilities.

To

this, according to MAPI estlContinued

on

page

45

such

considered

Standard
1932 sold

Oil

As

of

credit

"convert"

for

an

possible

illustration.

3V8s

Indiana

there,

they certain]" w^«ld
ba"k

of

19^3 at

bought them

buy them todav at 140.
potential

of

compar¬

and
a

even

(or

in the sorine of

bonks

and

of

status

then

bank purchase.

98

perhans

corporation

be

mav

a

coloration

industrial

standing)

see

But that is

WALNUT 0316

same

thoueh

Investment

RHODES-HAVERTY BLDG.

of that of

Thus

b^vincr

no*
vou

on

plu* ot^er institutional
purchasing, tends to n>ace a mar¬
+Hic

floor

under

rr*ime

converts

on]->ar>pi-»rr their merit

as

de¬

fensive securities.
But

and

enough of theory—let's get

is

American

Telegraph

which

Telephone
deliv¬

has

investors over
$3 billion in share-privilege bonds,
ered, post war, to
added

and

a

fund

new

raising

gimmick in the process. When you
convert,

you

your

use

bond

as

though it were $1,000 in cash, then
up $48 a share and get de¬

nut

a total cost
the way the
selling at 130

livery of 10 shares at

$i,480.

of

3%'s

of

(This

1967

is

now

operate.)
We'll

a

viel^ boais,

ket

vertibles

mention

major "converts"
on

into

a

more

just

two

more

and

then

move

speculative

va¬

riety. Look at Southern California
Edison 3y4's due 1970,
at

42.85

per

common

convertible
share? and

Volume 183

Number 5534

The Commercial and, Financial Chronicle

.

selling at 114, and Canadian;

now

Pacific

3^'s

at 34.48 and

The

of

1966

f

selling at 107.

now

New Bank

convertible

United States Banks

foregoing items were se¬
on a
quality basis. In geni

are

the rest of the nation in number of

Directory Issued

York is-in second place

a

above-market

equity.- In

call

on

practice

of

aim

rise,

a

then

have

we

selections

to

for

thumbnail fashion.
tinental
up

•The trend

your

Air

few

a

sketch

in

It's

than

a

and coming air transport com¬
serving a splendid territory

a

Texas

and

,

I

•

through runs as well from
Chicago via Denver to Los An¬
geles, Seattle and Portland. It is
moving ahead, with the latest in
equipment,
the
New
Viscount
Turbo

Prop

810D

which

travels

v."

Continental Air Lines

Subordinated
•at

102

and

due

1970

sell

convertible

a^p

13 V2

at

common

4%s

against

into

current

price of 11V4. Here

yield, and
version

Prospect Ltd.

interesting

,'.V-.

X" .'..v-,--

5%

has

convertible

___.

67

_

Changes of title_._________.__
Changes of title due to mergers

18
13
4

Banks discontinued due to mergers

at

Here's

140

Conversions
Branch changes for the year
New
.

Plans
•

DETROIT,
of

best

branches

at

425

Branches discontinued

$5

until

Dec.

1,

with

tion, quite

of

Golf

their

Party"

at

to

be

are

scheduled to start

with

a.m.

awarded the
team.

company

dinner

at

are

".v..- In individual states, Texas has the largest number of banks,
runs a

close second with 922.

California leads

of

Post

Office

This announcement is neither an

Laidlaw Adds

to

oil

some

BOSTON,
Sands is
80

Mass.

now

Federal

—

Richard J.

with Laidlaw &

Joins B. C. Morton Co.
(Special to The Financial Chronicle)

invited.

BOSTON,

Dhooge, Manley Ben¬
nett and Company, is President of
the club and C.
R. Cummings,

Mass.—Aime

Fosse has been added
of

B.

C.

Morton

&

acreage in
Saskatchewan; and
it owns a major stock interest in
Canadian Export Gas Ltd., one of

pipeline.

Canadian

merit

ELECTRIC

5's

Prospect

further

your

inspec¬

tion.
Another

fascinating

"convert"
troleum
due

is

Sept.

into

Western

Ltd.

500

Here

1968

1,

shares

Canadian
5V2

notes

convertible

are

of

COMPANY

Decalta Pe¬

the

until

common

Sept. 1, 1956 and then at the rate
of $2.38

The

of

merger

West

is

shows

above

oil

of

oil

million

a

and

million

23

ingly

MFC

exoerienced,
5%'s

110

at

Interest

payable May 1 and November 1 in New York City

reserves,

in

gas

is

exceed¬

re¬

financial

and

backing impressive.
calta

May 1, 1950

of

with

year,

Management

serves.

Dated

and

revenue

million barrels of oil

10

smaller

properties,

actual

$iy4

1, 1960/
reorganized

the

number

a

Canada

now

Twenty Year 3'A% Debentures Due 1976

share to Sept.

a

company

Western De¬

Price 100*6%and Accrued Interest

converti¬

are

ble almost at the current price of

$1.90

common

on

the

Toronto

Board.
We

couldn't

them
RCA

all

begin

todav,

to

cover

there

and

are

3M>'s of '80 at 111; Burling¬

ton Industries 4y4's at

5's at

Inc.

poration
also

93; Textron
104, and Sheraton Cor¬
43/4's at 91 which you

should,

In

no

the

"convert"

which is the Janus of. securities is
a

fascinating financial vehicle. As

an

informed

both

MORGAN STANLEY &

SACHS &

CO.

investor, you should

surely know about its usefulness
for

the

defense and

DILLON, READ & CO. INC.

THE FIRST BOSTON CORPORA TION

may, by
combing over to¬
day's selections, pick out a couple
of big gainers, when the inevita¬

ble inPation that lies ahead of all
us,

starts to gain momentum.

Joins McCarley Staff
(Special to The Financial Chronicle)

SALISBURY,
H.
of

Kenlev

has

N.'c.

—

joined

Thomas'

the

BLYTH &

CO., INC.

GLORE, FORGAN & CO.

LEE HIGGINSON CORPORATION

LAZARD FRERES & CO.

LEHMAN BROTHERS

PAINE,

MERRILL LYNCH, FIERCE, FENNER & BEANE

WEBBER, JACKSON & CURTIS

SMITH, BARNEY & CO.

(Special to The Financial Chronicle)

Co., 229 East Wisconsin
He

Brew-Jenkins

was

recently

Company, Inc.




with

STONE &

UNION SECURITIES CORPORATION

Engel has become associated with
&

KIDDER, PEABODY & CO.

Incorporated

MILWAUKEE, Wis.—Elmer H.

Avenue.

HARRIMAN RIPLEY & CO.

SALOMON BROS. & HUTZLER

t

With Bach* & Co.

Bache

EASTMAN, DILLON & CO.

DREXEL & CO.

staff

McCarley & Company, Inc., of

Asheville.

KVHN, LOEB & CO.

offense.

You

of

offer

inspect.

doubt,

event

any

Copies of the Prospectus may be obtained from only such of the undersigned as may legally
these Debentures in compliance with the securities laws of the
the respective^
respective, States.

May 16, 1966.

'

La

Co., 131 Stato

Street.

offer is made only by the Prospectus.

the largest potential gas suppliers
to
the
projected Trans Canada

P.

to the staBf

$300,000,000

located, but unproved

Co.,

Street.

produc¬

Manitoba and

Staff

(Special to The Financial Chronicle)

offer to sell nor a solicitation of an offer to buy any of these Debentures.

The

\

Hayden, Stone & Co., 10
Square.

an

1958.

•/

7:30

Victor &

listing 948. Illinois

•

BOSTON, Mass. — John R.
O'Day, Jr., has been added to the
staff

to be followed by the award
members

*

(Special to The Financial Chronicle)

golf and door prizes. Guests of

club

19

_

hold

Corporation is

V

swath of strategically

a

.

theEntertainment

of

good Canadian land play

a

company,

may

Cup

two-man

9:00

p.m.,

30
115

Michigan

With Hay den, Stone

The Bond

—

will

Summer

Activities

include:

Changes of title
Changes of title due to mergers

Mich.

Detroit

Outing

Lakepointe Country Club, Friday,
June 8, 1956.
Members will enjoy golf, lunch
and dinner, in addition to other
activities. Competition is expected
to be keen for the Michigan In¬
vestor's

9

of

Chairman

Committee.

"Annual

banks

First

de¬

benture which you can buy today
110. It's convertible into com¬

the

■

Detroit Bond Club

Club

v

31, 1954, Rand McNally's Directory lists the follow'ing bank changes:-

at

mon

bank,

one

potential.

Canadian

.

you get a good
well leveraged con¬

a

earlier.-.The number of branches increased from 6,807

■'

Banks discontinued

400 miles per hour with 70 coach
passengers.

y

New

California,

with

'r

Since Dec.
*

pany

between

year

to 7,508.

lively

a

consolidations, and

during 1955. As of Dec. 31, 1955, there were
14,345. banks in the United States, Alaska and Hawaii—116 fewer

Look at Con¬

Lines.

toward increased bank mergers,

branches- continued

other

you

Only

5,000 offices and branches.

Deposits rose $16.1 billioh, from $213.1 billion to $229.2 billion
capital funds are up approximately $1.3 billion, from $18.5
billion to nearly $19.8 billion.
*
; X

defensive qualities and
more dramatic market

on

for

few inside the Iron Curtain.

a

State Bank of the U.S.S.R., is listed in Russia which has more than

-•

t

accent

concerning

lists every bank and trust company in the
all foreign countries, including brief notations

/
and

share priv¬

willing to lessen

you are

is celebrating its 100th birthday.

year

Directory

United States and

of all U. S. banks reached

resources

date in 1954.

same

ilege.

'J If

which this

The

31, 1955, reveals that
a new all-time high
approximately $252 billion, compared with $234.1 billion on the

combined

should

try always to buy a prime "con¬
as closely as
possible to the
price
at
which1 the
debenture
no

pany,

there

when

1872

.

vert"

would sell if it had

New

Directory was founded by Rand McNally & Co.
were only
6,097 banks in the country. The
book has been published continuously since that date by the com¬

in

are

The consolidated recapitulation for Dec.

major

a

you

branches, totaling 1,254.

with 1,223.

The Bankers

still getting bigger.

also dwindling in number, according to the first 1956
edition of the Rand McNally International Bankers Directory,
which has just been issued.
'
•
;
*
*
.

have to pay somewhere
10% premium today for

you

around

They

T

(2355)

T

lected
eral

an

.

.

SECURITIES CORPORATION
WHITE, WELD & CO.

8

The Commercial and Financial Chronicle

(2356)

Limited—Analysis—C. M. Oliver & Com-

Britalta Petroleums
'

Limited, 821 West Hastings Street, Vancouver 1, B. C.,:.

,pany

Canada.

Dealer-

■

^■

■

-

.

i»it

COMING

-

of the
company and its holdings in Trans Canada Pipe Lines Ltd.
Wisener and
Company Limited, 73 King Street, West,

Canadian

Petroleum

Delhi

Thursday, May 17, 195.6

.

Ltd. —Study

of the assets

EVENTS
In

Investment

Field

—

Recommendations & Literature

Toronto

Canal

send interested

to

Randolph Corporation

Cataract

of atomic industry as of

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

Mining

Chesapeake

Corp.

&

Co.,. 44 Wall Street,

Industry—Bulletin—Smith,

Pharmaceutical

&

May 17, 1956

Report

—

Co.,

1

Ex¬

& Co., 120

J. K. Rice, Jr.

of

Co.

Cyrus

—

Report —Scharff

&

Bar¬

York

New

5, N.

Also in the

Y.

Whirlpool-Seeger Corp.

bulletin

same

are

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

In¬

Stock

Review

Report

—

—

Harris, Upham & Co., 120

Broadway, New York 5, N. Y.
Dollar Averaging—Review of
in

dates

Pont &

of

potentialities with

list of candi¬

a

Pointers"—Francis

"Market

I.

,>■.

on

May 20-24, 1956

brief

able is

Fire

&

American

analysis

of
selected

Casualty

Companies—Study—First

Insurance

—

and Trust

—McKee & Co., 900
Florida

Power

A

Broadway. New York 6, N

Boston

■

..

R. Willston

June 4, 1956

& Go.,

Foreign
tions

of

listing

Quotations—Folder

Exchange

currencies

of

countries

137

Food

5, N. Y.

100 Broadway, New York

Y.

throughout

Corcoran

quota¬

current

Company,

Also in the

5, N. Y.

55

General

Wall

Capsule—Report—General

Street, New York 5, N. Y.

discussion of Bunker Hill Company.

Street, New York 5, N. Y.
—

New York Stock Exchange—1956 Fact Book—New York Stock

Exchange, Department of Public Relations and Market De¬
velopment. 11 Wall Street, New York 5, N. Y.
Rector

Prices

—

Bulletin

—

Hare's

Limited,

and

porated,

National
York

Public

Indian

Ltd.

Stocks

with

*

*

■

Office

American Life & Casualty Company — Analysis — A.
Allyn & Co., 122 South La Salle Street, Chicago 3, 111.

C.

Cohn

Texas

American Express

Company—Bulletin—Laird, Bissell & Meeds,
Broadway, New York 5, N. Y.
Kentucky—Bulletin—The

Bankers

Bond

Co.

II.

Incor¬

Company— Analysis

Harkisondass
'

f

Lukhmidass,

an

Co.—New

Co.,

10

—

Reynolds

&

Co.,

&

French

—

Memorandum

nomink Country

Securities

—

-

Hollow Golf Club.

I.

S.

—

clients

can

and

you

Twin

Kidder, Peabody & Co., 17

nual

.

Electric

Co.

—

Memorandum

profit in:

With

Spencer, Zimmerman

(Special to The Financial Chronicle)

its

volume

recently
from

in

less

stated

now

than

that

decade.

a

"half

will be devoted

that

the
to

this
A

COLUMBUS,

industry

may

prominent

electronics

not

Ga.

—

Jere

M.

double

Spencer, Zimmerman & Co., Inc.,
1238 Second Avenue.

six

now

years

exist."

LAKE

&

CHARLES, La.—BenjaCompany
of
Houston,

Texas, has opened

Along With Many Others, We Trade and Position:
AEROVOX

•

•

•

•

CORP.

at

500

Broad

a

branch office

Street,

under

the

management of A. Marshall West.

•

IIYCON MFG.

AIRBORNE INSTR. LAB.

•

JACK & HEINTZ

COLLINS RADIO

•

LITTON INDUSTRIES

DYNAMICS CORP. OF AMER.

•

PERKIN-ELMER

ELECTRONIC ASSOCIATES

•

•

&

June

June 29, 1956

Sept.

1-21,

74

Trinity Place

HAnover 2-2400




•

New

annual

Association

Bank

meeting

at

the

and

Hotel

Radisson.
Oct.

Joins Paul McDougal
(Special to The Financial Chronicle)

(Detroit, Mich.)

4-6, 1956

Association
:

of

Stock

Exchange

Firms meeting of Board of Gov¬
ernors.

COLUMBUS, Ga—C. Luke Burnette

has

Paul

A.

Murrah

become

affiliated

McDougal
Building.

with

Company,

Established

1856

Members

DEPENDABLE MARKETS

-

New

New

Analyses

EQUITY OIL

Stock

York

American
New

York

Exchange

Cotton

Exchange

Commodity

Chicago'

N.

Y.

Exchange

Stock

Exchange,

of

Board

Orleans

Inc.

Trade

Cotton Exchange

exchanges

other

Exchange Bldg.

Cotton

NEW YORK 4, N.
Chicago

Association

6, N.

of

Convention

,

MOUNTAIN FUEL SUPPLY

York

summer

(Minneapolis,

34th

Women

P. R. MALLORY

Dealers

Toledo

of

1956

National

ATLANTA,
Ga. — Stella
C.
Fortinberry has joined the staff
of Franklin Securities Co., Henley

TROSTER, SINGER & CO.
Security

at

(Toledo, Ohio)

Club

and

York

21

H. Hentz & Co.

SPRAGUE ELECTRIC

New

guests,
Hotel;
the White

Nicollet

Minn.)

New

Members

the

at

Bear Yacht Club.

Bond

Franklin Sees. Adds

Building.

New Benjamin Co. Branch
min

•

Hutton

spokesman

business

products that do

E.

picnic

(Special to The Financial Chronicle)

Pound has become connected with

indicates

W.

out-of-town

for
20

outing at Inverness Club.

Electronic Stocks
Evidence everywhere

—

-

City Bond Club 35th anpicnic and outing cocktail

party

)

Corp.—Analysis—Van Alstyne, Noel & Co., 52
Wall Street, New York 5, N. Y.

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

your

(Minneapolis- i

20-21, 1956

St. Paul)

Vitamin

Westinghouse

again suggest

21st an¬
outing at the Plum

summer

June

We

(Detroit, Mich.)
Association

Traders

Detroit & Michigan

of

June

Wall Street, New York 5, N. Y.
U.

...

Club, Newtown

Square, Pa.

Post

Corp.—Analysis—First California

Towmotor Corp.— Memorandum

120

Broadway, New York 5, N. Y.

DEALERS

(Philadelphia, Pa.)

15, 1956

nual
Transmission

convention,

Philadelphia Securities Associa¬
tion annual outing at the Aro-

Kiser,
Shumaker, Inc., Circle Tower, Indianapolis 4, Ind.

Eastern

annual

June 19, 1956

Laboratories

(Canada)

1956

Canada

June

&

13-16,

Hotel, St. Andrewby-the-sea, N. B., Canada.

Co., 1 Wall Street, New York
analysis of Swank, Inc.

views—Lerner

outing

Country

Algonquin

various

Hamam

5

summer

Whitemarsh

the

Investment Dealers' Association

arid

■'

"

Traders Association

Club, Whitemarsh, Pa.

<
,

(Philadelphia, Pa.)

8, 1956

Philadelphia

June

Also

Thompson Fiber Glass Co.—Bulletin—Walker's Weekly
Newsletter, 215 West 7th Street, Los Angeles 14, Calif.

porated, Kentucky Home Life Building, Louisville 2, Ky.
Powder

of

of
on

sum¬

Hollow

Company, 300 Mbntgomery Street, San Francisco 20, Calif.

-

Atlas

Company

Sleepy

at

Investment

Square, Boston 9, Mass.

Smith, Kline A

Ashland,

Express

of New York

outing

Country Club, Scarborough, N.Y.
June

Incor¬

Wis.

Lake-

(New York City)

Club

Bond

.

All

120

—

Also available is
Cement

Riverside

Co.

annual

Detroit

of

golf

June 8, 1956

a

Corporation.

Ranco, Inc.—Analysis—Cohu &

income

r

Transmission

f

appeal—Bulletin
Co., Inc., 70 Pine Street, New York 5, N. Y.
*

Co.—Analysis—Loewi &
Street, Milwaukee 2,

(India)—Bulletin—including data

securities

5, N. Y.

Cpmmon

—G. A. Saxton &

is

at

Mason

Street, Bombay, India.

4, N. Y.
Utility

bulletin

mer

analyses of American

Texas Eastern

Quotation Bureau Averages, both as to
over a
13-year period —
Bureau, Inc;, 46 Front Street; New

Paper

East

are

Polychem

performance

Quotation

225

available

Index—Folder

market

Cohen, 52 Wall

same

New York 5, N. Y.

Nekoosa-Edwards

19

showing an up-to-date com¬
parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
yield

the

Corporation—Report—Thomson & McKinnon,

Wall Street,

11

Street, New York 6, N. Y.

used in the National

Midland

Marine

Club

party at
pointe Country Club.

80

Company—Analysis—Laird, Bissell &
Meeds, 120 Broadway, New York 5, N. Y. Also available is
an analysis of Gimbel Brothers, Inc.

Yamaichi Securities

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

Over-the-Counter

Also in

(Detroit, Mich.)

1956

summer

Illinois Central Railroad

Japanese Stocks—Current information

Security

June 8,

on

Street, New York 5, N. Y.

$1

at

Club, New

Britain, Conn.

Street,

data

Investing Corporation,

Ilecla Mining Co.—Analysis—H. E. Herrman &

"Exchange" Magazine—available on subscription for
year—TB, Dept. 8, The Exchange Magazine, 11 Wall

for

are

Bond

issue of

Outlook

bulletin

same

outing

summer

the Shuttle Meadow

Underwood.

How Does News Affect the Stock Market?—Study in current
per

Connecticut

111

Street, Durham, N. C.

York

New

containing tables showing the decimal equivalents of
shillings and pence, and common fractions—International
Trust

Corporation,

Ford Motor Co.—Data—Bruns Nordeman & Co., 52 Wall

the world,

also

Banking Department, Manufacturers
Broad Street, New York 15, N. Y.

Securities

;

(Connecticut)

Security Traders Association of

...

.

Inc.—Analysis—First

Mart,

Exchange annual
'

June 8, 1956
•

Corporation,

(Chicago, HI.).

Midwest Stock

.

election.

115

>

Club of New
York outing at the Westchester
Bond

Country Club.

Also avail-"

Wilshire Boulevard, Los Angeles, Calif.

Light—Analysis—J.

(New York City)

Municipal

.

Company—Analytical brochure

Finan¬

of

Analysts convention at the

Sheraton Plaza.

analysis of U. S. Thermo Control Company.

an

(Boston, Mass.)

Federation

June 1, 1956

Roman & Johnson,

Boulevard, Ft. Lauderdale, Fla.

Western Bank

First

Broadcasting Paramount
Theatres, and
lists of good quality liberal yield
stocks and companies with small share capitalization.
a

Analysis

—

Corporation, 111 Broadway, New York 6, N. Y.

companies with possible higher earnings and a list of Dis¬
count Stocks. Available in the current issue of "Gleanings"
is

cial

Dodge Manufacturing Corporation—Analysis—Aetna Securities

discussion of Atoms for Peace; also a list of 44 selected

a

Corporation

East Las Olas

312

a

National

Organization,

New Superior Oils of Canada Limited.

on

Dixie Aluminum

by

May 18 at the Richland
Country Club.

Broadway, New York 5, N. Y. Also available is a bulle¬

tin

du

Co., 1 Wall Street, New York 5, N. Y.
In the same
discussion of growth potentialities in Ethical Drugs

issue is
and

issue

current

100

followed

dinner

.

Diebold Incorporated—Bulletin—DeWitt Conklin

;

?

activities

outdoor
y

-

Common

Club

Bond

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

J.

data

&

outing at the Brookside
Country Club, Linworth, Ohio.

,

Jones,

Stock

annual

Sons, 115 Broadway, New York 6, N. Y.
Orleans Annual

New

Memorandum

—

(Columbus, Ohio)

Columbus

Dayton Rubber Company—Data—Bache & Co., 36 Wall Street,

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

ney &

&

corporated, 219 Carondelel Street, New Orleans 12, La.

New York 5, N. Y.
Chemical

—

Railway

Ohio

A

Lawrence &

City
McDermott

Cantor, Fitzgerald

—

Broadway, New York 5, N. Y.

March

P.

Report

—

Corporation—Report—Capper &

Mining

Cataract

Bonds—Bulletin—Peter

7

.

change Place, Jersey City 2, N. J.

————

Atomic Commentary—Current status

.

Co., Inc., 232 North Canon Drive, Beverly Hills, Calif.

will be pleased
parties the following literature:

understood that the firms mentioned

It is

1, Ont., Canada.„

Edward L. Burton & Co.

Y.

.Established 1899

Teletypes NY 1-376-377-378

DEMPSEY-TEGELER & CO.

•

Detroit

Miami Beach

Hollywood, Fla.

•

•

•

Coral Gables

Beverly Hills, Cal.

Geneva, Switzerland

Amsterdam, Holland

160 S.

Main, Salt Lake City, Utah

Y.

Pittsburgh

•

•

■

Number 5534

-

.

I

■

.

Volume 183

The Commercial and Financial Chronicle

..

(2357)

$320 billion as compared with a ingi twice as much that he yearns
rate of $312 billion in the fourth to own.
So capital expenditures
and tax reductions represent pow¬
quarter.of last ye&rv
"Take home' pay also will be erful
stimulants
to
consumer

ma

thermore, the publicity that has*
been given to the radical restyling
of next year's cars has restrained

t

By ALLYN P. EVANS*

higher during the closing months demand.
of this year
than it was last
Consumer
year.
We are often inclined to

President, Lionel D. Edie & Co., Inc.
Investment Counselors and Economic Consultants, N. Y. City

overlook the

Noted Economic Consultant describes the

expected convergence
stimulating factors, and the more promising situation of
areas
currently undergoing correction, in the fourth quarter,
resulting in an Index of Production of 148, price level increase
of 2%-3%, and $406 billion GNP. Referring to: (1) Federal
Reserve pledge to maintain economic growth; (2) inflationary
consequence of increasing money at a time of tight capacity
and finance, and (3) need to increase the money supply more
rapidly or cause a decline in growth, Mr. Evans suggests
increasing money supply, via bank reserves, by reducing
reserve requirements or changing "bills only" policy.
Recom¬
mends policy of "tight" and not "easy" money in a tight econ¬
omy, and the prevention of contraction by preventing excesses.

during the past
are collected on the much attention
$4,200 earned. With the ever year. Fears have been expressed
rising level of personal earnings that the consumer has overbur¬
more

and

their

Social

ductions

a

deducted

all

but

ing

year

$5,200

fourth

of

:
y
tight I mean
how closely it
,

nirirJ?

SSSw!

epp

tkis per od w

vpi-v

tntn-niav

P
aiinwpH

tn

run

thpir

Lt

operating to
s
uo
capacity, not ural course will exert strong uponlv with re- ward pressure on the economy,
y, ™ir'? r.
Thp
airondv
fitrht
ponriition
nf
spect to physi- the already tignt condition of
cal
nlant but business
would
become
even

eLrt

also

With

re-

sn^tTnTahnr
spect to labor,

Evans

which
.

,

CUr-

tighter during the latter part of
It is this prospect that
is worrying the money managers.

rently is 96%

Stimulating Forces

employed. While an exact
figure would be difficult to arrive
and

may

poses

equally

Index of Industrial Production of
a

Gross National Product of

$405-$406 billion in present day
prices would represent the operat-

ing capacity of the
asmuch

the

as

In-

economy

first

at

quarter of 1956 was running
$399 billion annual rate, you

a

see

that the margin

between

these levels of

activity and capacity is very modest. The gap can
be accounted for largely by the
present reduced level of activity
in the automobile and agricultural

machinery industries.
in these fields would

A revival
fully occupy

the labor force and plant capacity,
Full

When

economy

is operating

closely to its full capacity

as

in

as

is today, any further increase

ours

demand

tionary

brings

pressures.

with

it

infla-

The Eisenhower

Administration has been attempt-

ing to
the

we

encourage growth and at
time keep the
dollar

same

outlays for roads

Pub*lc services of all kinds. These
expenditures, both Federal,, and
°ca1' a.^f 'n a "sing trend and
}bey wlU be at a h!gher rate a
!be uyear end than they were at

Let us now look at the probable position of the consumer
Last fall he began to show signs
of conservatism. Personal savings

pressures

by

pursuing

aggressively tight money pol-

icy.

action would not be
it not for the fact

Such

the

latter

of

part

this

year,

which had fallen to an annual
rate of $16 billion in the third
of 1955 jumped to $19
billion in the fourth quarter. The

that all but a few of the country's

trend is still upward and the in-

industries

dications

operating at close
and many materials
in short supply. It is because
this tight situation that the
are

capacity

are

of

ings

will

billion

trial

as

measured
Index

Production

has

by

of

the

Indus-

been

virtu-

ally stationary for the past five or
six months.
During this period
last year's excesses in automobile

production,
inventory
use

of

housing,

that

these

have

been

without

rate
and

of
the

credit have been

consumer

undergoing

the

accumulation

correction.
The fact
major readjustments
and

are

disturbance

From

On

the*36th

National

March

was
an

2.1

Income Tax Reduction
be

no

income
proye

jg ^

upward

1

the

pressure

minimum

wage

it exerted

on

the

taxes

in

to be the

This

1956.

may

but the

cage

fa£

result
fined

^.be »preasury not

only will
with a sub-

for

is

a

series

..

some

reduction

However

let

in

n«

taxes

should

fourth

that

At

be

de¬

reached during
of this year.

the

consumer's

ca¬

assume

H*. year> fipwever, let us assume pacity to borrow will have been
that no cut in taxes will be made improved, and when this condi¬
dosm« T10""1® o£ 1956 tion has existed in the past the
bc the
consumer, heing fully aware trend has changed and an upward
of
Treasury's cash position phase of the cycle begins.
The
will be anticipating a tax cut for
probability is that this historical
early in 1957 and this we believe tendency will be repeated in the
fourth quarter.

f/the

as

it passes

-

Likewise, it has come to pass that
a dollar of tax cut generates more
than $1 of consumer spending

It is our

opinion that the com¬
income, higher
take home pay, greater savings,
improved
debt position,
lower
taxes
or
the prospect of lower
taxes will put the consumer in a

bination of higher

frame of
the fourth quarter.

mind

spending
The
mand

-

for

heavy

automobiles

curred in the third

during

;

;

exceptionally

that

about the

months

this

of

year

in dealers hands.

the result of the tightening up

into effect last year.

government

However, the
to have set

seems

1,200^100 housing starts

as a mini¬
couple of months ago
it rescinded the reduction in the

mum

and

a

length of mortgages that it had
put into effect in 1955 and re¬
turned to the 30-year term. There
is usually about a six months lag

in the building field, and response
to the extension of mortgages froni
25 to 30 years will take some
weeks

to

more

catch

on.

housing starts does not in¬
crease it is possible that the gov¬
ernment might also ease up in the
matter of down

find

summer

us

payments, and by
back to the prac¬

tice of nothing down and 30 years
to pay.

The effect of such

fall. In any
event, housing starts taken in
themselves can be misleading in
their economic implications.
Floor space is

a

realistic
The trend to¬

more

unit of comparison.

day is toward larger homes. Those
new families who
bought small
homes after the second World War

outgrowing those homes and

date

their

Therefore,

To be

though

starts this year may be

80,000 below 1955, the floor space

pretty generally ac¬

last.

to

this

is

added

the

Continued

Fur-

on

issue not exceeding $12,900,000)

Equipment Trust Certificates

guaranteed unconditionally as to payment of par value and dividends
The Chesapeake and Ohio Railway Company

by endorsement by

yield 3.40% for all maturities

of these Certificates are subject to authorization by the Interstate Commerce Commission.
Offering Circular may be obtained in ctny State in which this announcement is circulatedfrom only
such of the undersigned and other dealers as may lawfully offer these securities in such State.

an

and

industry this summer, which will
set the pattern for other indus¬
tries.

HALSEY, STUART &, CO. INC.
DICK & MERLE-SMITH

BAXTER, WILLIAMS & CO.
IRA HAUPT & CO.

The result will be that the

over-

prevailing
1956

Anni^lConfe^ence'oMhe *' 6 J™
of
Mutual

wage

in

will

and

the
be

salary scale
fourth quarter

higher

than

1955

in

Per-

'131 income we believe Will then
be running at an annual rate of

R. W. PRESSPRICH & CO.

L. F. ROTHSCHILD & CO.

FREEMAN & COMPANY

THE ILLINOIS COMPANY

GREGORY & SONS

WM. E. POLLOCK A CO., INC.

INCORPORATED

SHEARSON, HAMMILL & CO.

MULLANEY, WELLS & COMPANY
May 14,1956

factor

of

higher costs the total value of resi-

Issuance and sale
The

housing
50,000 to

will be almost the same, and when

$320,000 annually June 4,1957 to 1971, inclusive

to

families.

increasing

even

(Philadelphia Plan)
mature

a move

would be apparent by

Chesapeake and Ohio Railway
Second Equipment Trust of 1956
To

If the

rate of

$4,800,000

3%% Serial

of

requirements put

~

an

are

year

seeking larger ones to accommo¬

cepted that the companies will in¬
troduce their new models earlier

(First installment of

a

are

quarter of last

this year than they did

said

oc¬

induced the industry to push
production
during
the
fourth
quarter so that we entered this
year with a large inventory of
It has been

been

de¬

year

new cars

has

mortgage loan

quarter

time

look

This slowdown is probably

ago.

cycles.

cycle
the

we

about 15% below those of

curred in

nns-

sibility of

Much
three

The last peak

for the *ext fiscai year Theref
rannot rule out the
*?re one cannot rule out tne pos

Thus

a

fact that housing starts in the first

ex¬

clearly

with

coincide

of the instal¬

quarter.
»

consumers.

of

will

step-up in automobile sales
and.production in the fourth

in the cycle oc¬
September, 1955. Since
stantial cash surplus but the in- then we have been moving irreg¬
dications are that an even larger ularly in a downward direction.
casb surplus will be experienced The low point in the current

whole

salary scale of the
country. New wage increases will
be granted throughout the steel

wage

to




by

This

income standpoint his

increased from 75 cents to $1
While this affected only

general

Savings
Banks, Washington, d. c., May 7, 1956.

credit

cutback in pro¬

the bottoming out
ment credit cycle.

us

of

million workers

place

Association

models.

When these changes are deter¬
that there mined on a monthly basis, season¬
reduction in personal
ally adjusted and then plotted, the

Washington tells
win

credit

heavy inventory
a

hour.

taking
the

instalment

Priced

an

instalment

the

In the fourth quarter of

this year the automobile industry
will be in full production of new

credit extended and repayment on

1

sav-

position also should be improved.

of
befwe

they will be enjoying
increase in their take home

pay.

his

tensions. By this I mean the dif¬
ference between new instalment

therefore
an

the fourth

personal

be

rate

last year.

Reserve

year

accumulating at an
$22 billion, or $3
higher than at that time

annual

policy, and the subject of inflation
are
receiving so much attention
today.
Business

that by

are

quarter of this

business outlook, Federal Reserve

Federal

be

and

ago

year

quarter

necessary were

to

will

consumer

a

billion.
This indicates that a
higher rate of spending will be
necessary in the later months of
the year if the total for the full
y?aF *s Soing to amount to $35
billion-

ex-

flationary

deductions

than

$35 billion on new plant and as giving him $120 more to spend,
equipment this year. This is $6 He looks upon it as giving him
billion, or 22% more than exa m0nth to pay off on a loan
P e n d 11 u r e s were in 1955. The jncurred to buy some article costseasonally adjusted annual rate of

business and control in-

endeavoring to avoid

from

out

why-. Because under the present
spe"d"^ hablts of tbe American
lts beginning.
public the consumer does not look
Business is planning to spend uP°n ? ta* cut °Lsay' $1?° a year

has been

an

of

schools and through the economic machine

in

in

completes his
By the
this year the

It is esti- ®'ll h.a.^ a Psychological effect
™atad that Federal, state and
him.
local spending this year will run
At this point I would like to
$3-$4 billion higher than last year, emphasize that every dollar spent
The Federal Government is in- on capital improvement by induscreasinS its expenditures for de- try, and as I have said the figure
fense> foreign aid, agriculture and will be $6 billion greater this year
Publ*c works. Local and state than last, generates more than $1

sound. The Federal Reserve Board

cesses

earn¬

private capital expenditures in the
first quarter was a little over $33

Capacity Pressures
an

stimulating forces that

wages

weeks.

Reserve governments are increasing their of consumer spending

Federal

Index stood at 142 in March, and
the Gross National Product for the

can

The

hard" to" prove,"it for?sae are several.

be said for all practical purthat a Federal Reserve Board

148 or

ro^

the year.

to 97 %

at"

42

his

worker

close this fiscal year

is

Allyn P.

a

workers

these

under

economy; .is

L° u?»y'

a

in

quarter

number

attests to its funda-

economy

from

for 52 weeks

deductions

in-

or

earning $4,200
Social Security

his

exhausted

has

down

duction.

buying
power.
It is our opinion that the
dangers in the situation have been
exaggerated.
News releases and
headlines frequently create a false
impression in the public mind that
consumer credit has risen steadily
without
interruption.
However,
analysis reveals that there have
been clearcut cycles Of approxi¬
mately 29 - 33 months in net

earlier each

and

worker

has

year

taxes

complete
he
Security payroll de¬

earlier

work

we

has necessitated

dened himself with debt and that

workers

more

A

year.

mental soundness. It will require
vesting infixed income securities several months more to complete
knows that money is tight. How- these corrections.
ever, it is not
situation be later
so
fully: or in the year when this correction
generally-jr e-> has been
accomplished.
Will
alized
just,business fall off the present shelf
how tight the or will a base have been laid for
money

ninths. So

received

has

first

greater
Anyone who has had anything

debt

that would be out of

a car

within

a
relatively few
have been witness¬
ing a decline in sales which in
conjunction with the struggle to

Exaggerated

curity taxes

of

to do with lending

date

Consumer

fact that Social Se¬

many prospective purchasers from

buying
Debt

9

McMASTER HUTCHINSON & CO.
F. S. YANTIS & CO.
INCORPORATED

—

page

50

10

The Commercial and Financial Chronicle

(2358)

+

Securities Traders

Association of Detroit and Michigan: William
Brovyn, Baker, Simonds & Co., Detroit, Mich. ;

P.

(

Besides promising

Security, traders Association of Connecticut: William H. Rybeck,
William H. Rybeck & Company, Meriden, Conn.

Notes

NSTA

Traders

Association

of

COMMITTEE

City, Chairman
Advertising Committee of the National Security
Pershing & Co., New York

Harold B. Smith,
of the National

Traders Association,

Advertising Committee.

affiliate Chairmen to the 1956

Harold

B.

location

labor

able

markets

adequate
in isolated
and

Security Traders Club of St. Louis: Vincent C. Weber, Weber-.
Mitchell & Co., St. Louis, Mo. ;
'
^ ;
:
'
;

high transportation costs of

.

Twin

City

Security

Association:

Dealers

•

..

M.

1

'r-V;

Co., Salt Lake City, Utah

Wichita

Traders

Bond

Club:

Securities Company,

Don

H.

fuels.

report

metals

'

As

at

the

port

minehead

untreated

hundreds

ore

miles

to

cheap electricity for
OF CONNECTICUT

"The

energy.
Leadership urnparticipation in world af¬
fairs. It requires not only tech¬
nological pre-eminence but the
freeing of traditional channels of

trade for atomic hardware. Unite
States
and

ASSOCIATION OF NEW YORK

TRADERS

Security

Association

Traders

Bowling League standing

of

New

York,

of May 10, 1956 is

as

Team:

as

(Capt.), Kullman, Werkmeister, O'Connor, Strauss__
Barker (Capt.), Bernberg, H. Murphy, Whiting, McGovan_
Leinhardt (Capt.), Bies, Pollock, Kuehner, Fredericks

J.

Phillip

Clark

John

L.

Canavan

Club

Point

Assisting

Smith

Mr.

Vice-Chairmen

of

as

Alabama Security Dealers Association: Arthur Stansel,

-"cr—«

Association

of Security
Co., Phoenix, Ariz.

Baltimore

First National

City Bank draws

report in depicting peaceful

Co.,

Bond Club

of Louisville: Hector W. Bohnert, The Bankers Bond
Co., Inc., Louisville, Ky.

Bond Traders Club of
&

John

P.

Miles,

L. D. Sherman &

Co.,

Chicago: Lester J. Thorsen, Glore, Forgan

Co., Chicago, 111.

Boston

Securities

Traders

James

R.

Duffy,

Paine,

Webber, Jackson & Curtis, Boston, Mass.
Cincinnati
and

Stock

&

Bond

Harry J. Hudepohl, Westheimer
Company, Cincinnati, Ohio

Cleveland

Security

Traders

Wm. J. Mericka &

Dallas

Association:

Frederick

Co., Inc., Cleveland, Ohio

M.

Asbeck,

.

Security Dealers Association: John L. Canavan, Rauscher,

Pierce & Co., Inc., Dallas, Tex.

Dealers Association: William R. Hough, Beil &
Hough, Inc., St. Petersburg, Fla.

Georgia

Security

Tindall &

Dealers

Association:

James

B?

Dean,

J.

W.

Company, Atlanta, Ga.

Investment

Traders
Association
of Philadelphia: Clifford
Remington, Woodcock, Hess & Co., Inc., Philadelphia, Pa.

G.

Kansas City Security Traders Association: William J.
Dyer, Burke
&

MacDonald, Inc., Kansas City, Mo.

204

incides

markets
are

and

industrial

locations

of the

some

developments
the peaceful use

pected

in

atomic

energy,

ex¬

of

according to The
National City Bank of New

First

York.

port

San

Mass.

for

the

in

a

re¬

Bank

by

Little, Inc., Cambridge,
and
engineering

research

firm. The New York bank has
tained

the

firm

as

its

nuciear plants by 1980 will
about

20%

of

re¬

consultant

in the atomic energy field.
The report
estimates

that

repre¬

installed

elec¬

tricity generating

capacity and a
cumulative investment of $25 bil¬

lion. To achieve this growth rate,
research and development expen¬
ditures
reach

on

reactor

$500

million

work

should

annually

by
about 1965. Research manpower is
of the most
the

Security Traders Association:
Walter C. Gorey Co., San Francisco, Calif.

Walter

C.

Gorey,

Seattle

Security Traders Association: Howard W. Jones, Jr., Na¬
tional Securities Corp., Seattle, Wash.

Securities

Dealers

Lewis &

of the

Carolinas: McDaniel Lewis,

Co., Greensboro, N. C.




grow

future

critical problems
nuclear
tech¬

of

McDaniel
<

men

to

if

the

the

size

industry

is to

indicated

by

1980, according to the report.

Labouisse,

Francisco

co

anniver

economic

by-product

Partial

five

times.

potatoes

from

four

spoilage

ing-

has

to

by

18

The

sprouting

or

more

in food processing
bring
about
major
marketing, distribu¬

tion and

packaging. Light flexible
containers, for instance, may show
advantages
over
conventional

Conventional

Fuels'

Partner

"It cannot
be emphasized too
strongly,"1 the report states, "that

tive

Nuclear radiation

radiated

nuclear power will be a partner of

these

conventional

market.

fuels, rather than a
competitor, in meeting the rapidly
rising per capita power demands
of

the

reason

that

no

world.

There

is

every

to
believe, for instance,
important phase of the oil

business will be adversely affected

also holds

antibiotics. It
is recognized, though, that exten¬
sive tests, extending over several
years, will have to be carried out,
proving absence of toxicity in ir¬
drugs, such

foods

can

uses

drugs,

before

be put on the consumer

numbe

of

Frank

Ja

his

business

purchased

$82,000

for

and

the

floor

caret

Exchange firm

1902,' M

his

Exchan^

May 17,
time

a

as

a

(

in

1906 ft
operate

so-called

3

In

Harris,

Upham

& Co., nationj
brokerage firr

investment

with 35 offices coast to coast
members of the New York

an

Stoc;

Exchange, has expanded and mod
ernized

offices

Houston,
Springs,
with
and

part

over-all

offices

cur

of

according to

i

keepin
activit

Harris,

Upham;
provide maxi

facilities in each q
the country]

across

an

announcement

Henry U. Harris,
of the

"in

firm

Colorad

customer

policy to

service

mum

the

and

Colorado,

increased
as

of

Texas

a

b]

senior partne

firm.

Merrill Turben Adds
(Special to The Financial Chronicle)

The report

trial

as

and

ranks

death

on

Xvide
;

well
changes in

od

Houston, Colorado Spring

soften¬

-

may

of

;

Harris, Upham Expands in

without

The projected use of radiation-

preservation

Jacquelin
"

now

194

1908, as an origin;
partner, he helped organize th
firm of Carlisle, Mellick & Co.

Lfe
increased

months

in

Carlisl

firm

;

Steiglitz

broker.

storage

been

:

,

membership
on

steriliza¬

refrigerator temperatures by

&

Samson

of

life of fresh-cut meat at ordinary
than

Carlisl

of

with

another

recent

Halle

tion of food has extended the shelf

of

lots.

formed

merger

Co.

Starting

technology is the irradia¬
of foods
to
preserve
their

tion

&

odd

was

with the Stock

nuclear

nutritive values.

in

Gould.

1960 and 1965. Nuclear propulsion

important

senio

Jacqueli
leading firms dealin

the

dealers.

the

need to be replaced between

An

Wal

now

&

ship in the Exchange. He steppe
up a notch, from number 16, wit

study
feasibility
of
nuclear-powered merchant ships
in view of the fact that a large
portion of the U. S. merchant fleet
may

lower

on

15 in respect to years of member

is technically feasible now.
conclusions

are

prepared

one

lot

promise of preserving heat-sensi¬

f

that

164th

Carlisle

DeCoppet,

The report recommends a
the

of

of

Mellick

sional

Pittsburgh Securities Traders Association: Kenneth Moir, Chaplin
and Company, Pittsburgh, Pa.

Yorj

New

date

a

Samson is

Mr. Samson

of

changes in labor

tree

Mr.

Jacquelin
through a

Nashville Security Traders Association: Kenneth B.
Schoen, J. C.
Bradford & Co., Nashville, Tenn.
/

Orleans, La.

anniversar;

the

the

&

development.

and fundamental

in

Traders Association: Robert D. Alexander,
Friedrichs & Company, New

tonwood

one

cans.

Weil,

with

exclusively

nology and must be met by train¬
ing a large number of new profes¬

Howard,

of

Exchange,

Street.

;

Memphis Security Dealers Association: A. L. Whitman, Bullington-Schas & Co., Memphis, Tenn.

New Orleans Security

golden

member

a

partner

of atomic

in the foreseeable future."

sent

Florida Security

Stock

Arthur D. Little, Inc.,
energy, and im-

upon

uses

1965 for research and

Arthur D.

Club:

204

Nuclear-powered
merchant
ships,
radiation-preserved
food

These

Association:

as

plants by
1980 will amount to $25 billion investment, and that this
growth rate will require $500 million annual expenditure by

Dealers: Benton M. Lee, Dean

Club of Denver: Phillip J. Clark, Amos C. Sudler &
Denver, Colo.

Samson's

211

pact upon industrial location, labor market, export trade and
domestic market. Expects nuclear powered electric

Courts &

Bond

NYSE

on

28V2

Peaceful Atomic Energy Development Stressed

Security Traders Association: Charles A. Bodie, Stein
Boyce, Baltimore, Md.

of Syracuse:
Syracuse, N. Y.

50 Years

29^2

of the founding of the Stoc
Exchange under the fabled but

Bros. &

Bond Club

35

sary

Co., Birmingham, Ala.
Witter &

Charles F. Samson

36V2

F.

Barker

Flanagan
Walt Bradley

'

NSTA 1956 Advertising Committee Chairmen

Arizona

r.

37!£

Today (May 17) marks Charle

Joe

G.

healthy and

a

diately ahead, before the domestic
nuclear-power demand will itsell
support the industry."

200 Point Club

Hank Serlen

the

Advertising
Mason, Scott, Horner & Mason, Inc„
Lynchburg, Va.; A. Gordon Crockett, Crockett & Co., Houston,
Tex.; John W. Bunn, Stifel, Nicolaus & Company, Incorporated,
St. Louis; Phillip J. Clark, Amos C. Sudler & Co.,
Denver; John
L. Canavan, Rauscher, Pierce & Co.,
Inc., Dallas; and Edward J.
Kelly, Carl M. Loeb, Rhoades & Co., New York.
Walter

are

40

exporl

major factor in

vital nuclear industry at home, a
least
during the decade imme¬

Edward J. Kelly

Jack

Committee

-

42

.

5

-

46

and economi

nuclear
a

the establishment of

43

(Capt.),-Gavin, Fitzpatrick, Valentine, Greenberg___
(Capt.), Eig'er, Neiman, Weissman, Forbes.

Topol

47

the

market could be

42%-

'

(Capt.), Farrell. Clemence, Gronick, Flanagan___
Donadio (Capt.), Brown, Rappa, Shaw, Demaye__
Growney (Capt.), Define, Alexander, Montanye, Weseman.
Meyer (Capt.), Corby, A. Frankel, Swenson, Dawson Smith
Manson (Capt.), Jacobs, Barrett, Siegel, Yunker
Leone

importance,

0^72

Kaiser

Krisam

of obvious political

Points:

(Capt.), Gold, Krumholz, Wechsler, Gersten
Bradley (Capt.), C. Murphy, Voccolli, Picon, Hunter

can

sufficiently relaxed to permit it t
the initiative. Besides being

(STANY)
follows:

Serlen

finance

accept this challenge,
government restrictions are

take

Inc.

■

industry and

should

once

Crockett

SECURITY

John W. Bunn

th

plies

New Britain.
Gordon

of

nuclear

Club,. New Britain, Conn.
Dinner will be served" at
Tariff, $12. Reservations may be made with Frank Cilento,

& Co., New Haven; Guy Hogarth, Edward M. Bradley &
Co., New Haven; Norman Maigret, Coburn & Middlebrook, In¬
corporated, Hartford, and William Sweeney, Sweeney & Company,

A.

1

7 p.m.

Bros.

Mason

processing.'

countries

Meadow

Security Traders Association of Connecticut will hold
annual summer outing on Friday, June 8, at the Shuttle

Shearson, Hammill & Co. Other members of the Committee are
John E. Graham, G. H. Walker & Co., Hartford, Chairman; Roland
Burnett, Fahnestock & Co., Hartford; George Dockham, Hi'ncks

G.

o

wit

areas

world," the report concludes, "ar
looking to the United States fo
leadership in the peaceful uses o

The
their

Walter

free

.

itself,

have to trans¬

we now

thousands of

Inc., Wichita

TRADERS ASSOCIATION

SECURITY

con¬

an

states

from which

Mid-Continent

Alldritt,

where

example,
that, "One can
envisage integrated mining, re¬
fining, and smelting operations for

Bergman,
A

regions

,

ventional
the

Oscar

a

electricity
have
not
hitherto been available because of

,

Allison-Williams Company, Minneapolis, Minn.

&

Harold B. Smith

on

make avail¬
and
economic

may

heat

s?;

Utah Securities Dealers Association: A. Payne Kibbe, A. P. Kibbe

.

and

global scale. It

Smith,

power

the local

Inc., announces the appointment of

centuries, nuclear power may also
bring about changes in industry

Security Traders Association of Portland, Oreg.: Dan V. Bailey,
'
Foster & Marshall, Portland, Oreg..
v
-

Pershing & Co., New York City

NSTA 1956 ADVERTISING

York:

New

adequate

an

energy reserve over the next few

Security Traders Association of Los Angeles: John C. Hecht, Jr.,
Dempsey-Tegeler & Co., Los Angeles, Calif.
Security

Thursday, May 17, 1956

.

Industrial Location

„

^

.

of

predicts that indus¬
radioisotopes may

bring about a $1 billion savings
10 years hence.
Radioisotopes are
now
estimated to be saving in¬
dustry $100 million a year.

CLEVELAND, Ohio—Nathan
Corning
Turben
merce

New

is

now

with

Merri

&

Co., Inc., Union Cor
Building, members of t

York

Exchanges.

and

Midwest

Stoi

Number 5534

Volume 183

i v The Commercial and Financial Chronicle

.

that in

The Broader Monetaiy Scene
And Dangerous Destabilizers

sion

recent

has

has

,but

also

find

we

Situation

a

stock

our

to

debt,

our

chief

ex-

tion.
Now

tion

is,

book

my

ously

the

cede the

entire

eco-

of

] nomic
Some

people
that

think

that

we

rather

it

myopic

a

view,

think in terms

human

and

than

is

is

should

resources

This

less

Dr. E. S. Adams

scene.

in

of

terms

of

is-a

ours

and the
best

be

our economy can

in

measured

monetary

terms.

it may be revealing to

So

sider what

be

can

Money Situation
Is

there perhaps some aspects

are

that

respects,

should

From

the

monetary

a

chief

of

danger

for

through

money

It

is

good

a

stock-taking.

time

for

We. are

the

from

respite

a

Breathing Spell?

a

such

having

now

will

transition

last

transitioning

are

lieve

that

before

again

may

omy

upside
enter

what

we

Some

be¬

or

into.

long
take

our

off

econ¬

the

on

and
that we will then
into the final and perhaps

spell

ployment

and

Over the past
from

augmented

has

borrowings,.

been

spending

by

has

Debt

further

the

rapid rise in debt

ahead

years

Debt

when

supply

of

credit

current

savings to such

that it results in

flation

of

the

undermines

It

should

upturn,
we

what

guard against

prevent this biggest boom from

leading to

A friend

mine recently sug¬

of

that a society should be
organized for the protection and
gested

to

an

the

become

is

It

already

evident

to

you

that

I belong to this
species which has as

distinctive

notion

characteristic

be

classed

as

one

that
dead.

the

with

in¬

tuations
money

of

the

and

taxes

inevitabilities

of

life.
In many

circles today, this view

is regarded as

neolithic.

The

em-

address

by Dr. Adams before the
Providence Chapter of the American In¬
stitute of Banking, Providence, April 12,
♦An

1956.




_

_

money
„

the

in

financed

debt

created

directly

There

is

It

may

affecting the

spending, flue-'
and
are

amount

The

since

home

forced

to

Tn

«;hr>rt

snpnriiria-

pay

,

.

.

,,

,,

for their money.

hn<?Prl

nn

rpal

could become a men-

stability of our econ.

ace

v

Business Borrowing and Money
Turnover

Let

us

now

look

>

briefly at the

other big segment of private inde.btedness; namely, business borrowing. As we all know, business

.

Housingitis

Housingitis is

ing has not been as great as might
have been expected in view of the

an

Contiued

on

page

14

-

This announcement is neither

an

offer to sell,

nor a

solicitation of offers to buy, any of these
the Prospectus.

securities. The offering is made only by

May 16. 1956

New Issue

also^

blinking

no

$10,000,000

the

of this type

ume
can

have

an

our

upon

of indebtedness

unstabilizing impact

The Celotex

economy,

The experts seem to agree

is

consumer

debt

rise much

during 1956.

not

Corporation

that

likely

to

It is sig¬

414% Convertible Subordinated Debentures,
due May 1,1976

nificant, however, that automobileembarked

have

vast programs for enlarging
productive capacity. These

instalment

suggest the pos¬
further ballooning of

debt

in

the

not-too-

future.

distant

Price 101.625%

the

Over

past

Debt

decade,

Plus accrued interest from May 1, 1956

the

' spectacular— about

truly

the

rate

closely

of

in-

of

their

evidence

bor-

suggests

Copies of the Prospectus may he obtained in any State in which this announce•
went is circulated from only such of the underwriters as may legally offer
these

securities in

compliance with

the securities laws of such State.

twice as large as the record expansion in instalment debt during

1955. It may be that the forecasts
do not give enough weight to the
new

tendency, already mentioned,
■,

mort§aS>e on the

*

+

,

old homestead.

debt

the

of

the

about

is

disquieting

increase

that

it

has

in
not

things

mortgage
been fi¬

nanced entirely from current sav¬

Especially

ings, as it ought to .be.
over

the

past year

and

a

half,

Union Securities Corporation

Hornblower & Weeks

Harriman Ripley

Glore, Forgan & Co.

& Co.

Kidder, Peabody & Co.

Incorporated

Merrill Lynch,

Paine, Webber, Jackson & Curtis

Pierce, Fenner & Beane

Stone & Webster Securities

a

Corporation A.C.Allyn and Company A.G.Becker & Co*
Incorporated

Incorporated

substantial volume of commercial
bank money has been flowing into
the mortaage market

This is

dition,

inflation

doubtless

in

housing

contributed

to

the

Central Republic

Company

Hemphill, Noyes & Co.

Laurence M. Marks & Co,

(Incorporated)

re-

fiected
not
just in the banks'
example, when corporations pur— mortgage portfolios but also in
chase Treasury obligations or
their warehousing and construccommercial
paper.
Also, many tion loans and their holdings of
businessmen who are forced to
obligations of the Federal Nationborrow may operate with a mini- ai
Mortgage Association and the
mum
of cash in order to keep Federal Home Loan Banks. In ad-

the

in

ell

by

into the spending stream—as, for

down

*

{estateto credit
the

economic ingrow-: fiammation that develops when a

indirectly,

or

supply.

money

over.

One

velocity.

money

turnover,

rowings.

28%

that

influence the rate of money turn-

remembered

been

money

in

1

This monetiza-

The Inflation of Mortgage

stability.

the business
Its mernbers

death

either

plans

terrelated.
Rising demands for
cycle is not
credit may activate dollars Pre_
believe that prosperity cannot yet viously inactive and inject them
quaint

is
and

use

As we know, consumer borrowing is financed to a large extent,

a

spending in the

has

These two factors
volume of

-

spending can re- growth of mortgage debt has been

increased

sharp rise in

extinct.
doubtless

dwindling
its

soon

may

have been

years
the

costs

means

encouraging portent.

an

expansion

by

bird

to

.

evidence.

velocity
usually pected that the rise in mortgage
during a boom and debt this year will be more than

additional

This

k/VK

Lv

The stimulation';.

supply that

acceleration

States

of
market,

supply

mortgage

This is naturally a matter
of con- demands xor
for creau
credit m
in recenx
recent years
^aemanas
years
to many of us who sinceiely have been strong and have been
desire to see the American people - met to a large extent by the comenJ°y
3nc*
housing. It mercial banks,
It
should
be
noted, however,
™akf ,httle ort. ^impression,
that the rise in business borrow¬
> uP°n the housingites.

.

Money

United

OVV'lli

than they otherwise would
,

more,

real estate values

sibility of

use

through the banks and about twothirds has been financed by the

strange

its

ana

The

from

preservation of the business-cycle
this

again,

extent

economist., Otherwise, he pointed-

out,

,

upon

causes an

be

diverting too

people to increase their mortgages "
in order to spend more for cur- -

their

thereby contributes to overspending.
Since 1949 about one-third
of

V Vll

.ceived less housing, rather than

mort-

second

confined to home repairs

the

excessive

economic

also

llvv

construction

in

more

indicate.

old housing—
housing

on

The

modernization.

especially

outruns

money

an

accelerates
Perils of Prosperity

over

lead

available
an

in

available

the

that would bring about a drop

MO

owners

four
velocity of money turnover. The times as large as the increase in
flow of money depends not onlv instalment credit. Here again some
on
the
quantity of money but slowing down is predicted for
also on the rate at which it is 1956. Even so, it is generally exspent.

depression?

a

it

This

of bank credit.

from

an

is

expansion

suit

Assuming :

was

manufacturers

dangerous

In

to

nox

in-

serious trouble.

longed boom in

dangers should

could

result

the

fact that wide swings in the vol-;

decade, spending

income

current

vastly

em-

production.

increased

word, maybe this is 1927.

not

homes but houses already

riues

gage

single

in

shrinkage

a

that

a

new

existence.

in

is hardly

period of reduced spending that

would

pro¬

history.

debt

gage

future

deceleration,

period of

a

into

1947-49.

bank credit and therefore affects

to

explosive phase of this most
our

rise

During iyoo
1955 more
more tnan
than nait
half or
of
curing

rent consumption.

economic

of

the $lgl/2 billion increase in mort- cern

the

our

also

credit

*

should

J*.

.

statistics

tion of inflated

a

could

„

credit

sumer

stimulation

Excessive

the

thuch

housing; costs.

—

standpoint,
in

ment to stimulate residential con¬

His

X Wvj

the past year, than the con-

over

of

If the flow

species
housingite.

in

What is

that we

They do, not even seem to be real estate values and a sharp demuch
interested in what, happens'dine in residential construction.
to

"J

well know, a goodly

is

These
fur¬

gone

period ahead could fur.has, ther inflate construction costs. It

.new

a

.the

simply

As for the future, there is little
sign of any abatement of private
and political pressures on govern¬

some

consists of two simple prop-'

con-^°uvt

the

a

infla¬

acute

tionary pressure of 1955. No one
knows how long this period
of

1

lead

A
a

-J

generally realized is that bor-

not

creased much faster than income.

Is This Just

be
♦

♦

j

is

further

system accelerates too fast, it can

from

give us concern?

•

because

two

have

years.

more

rowing for consumption purposes" have paid to acquire or to modh
b
h j
ge
especially ernize their homes. They have re6 '
H
. _ •.
.,

The Danger of Overspending

and

money

credit sound in all major
or

the

about

of early 1956.

of

condition

the

said

as

con¬

would

m?

the

ing tendency on the part of many

money.

you

^
+u1<lr^.'u n0 thereby intensifying the pressure
w"a^> .an<^ (2) that those cn the money supply. It would
lead
eventually to a degree of
wlro disagree are anti-social.,
"
Housingites are not concerned saturation in the housing market

than

in

boom

""+u

housing is the

ositions:> (I; that housing

enorm-

where

expansion

crecto

strongly suggests a rapidly

economic lifeblood,

pulse of

the

is

of instalment credit.
so

let us examine what
perils may consist of, as¬
suming a revival of the boom.

economy.. may be summed up
word: overspending.

monetary
our

Indeed,
emerged:

chunk'"oY this has taken the form

:

"Perils

time.- If

too have been traveling in recent

against mother-

struction.

these

an

Money is

the

be

can

•nitbMpdnP« hL^hjjf^n^nnit
°f ah?Using
tinh
personal.clearly
contributed

be-somewhat

than

houses

many

inflationary threat.

countries

over

in¬

more

indebtedness has been

thpoSrtof

may

too

same

ther along the same road

about housing.

Pauline,"

well-being,

appealing idea, even
to bankers, but it so happens that

If

this

As

major

but they have not yet learned this

business"borrowers!

are

1929.

the

policies

pri¬

private

expanded

•11

at least not

was

build

at

countries have at least decided
that motherhood can be overdone,

But these fac¬

Era

it

our

that

increase

centrated

, w
The date
of the end of

outdated

has

debt.

renewed,

depression-proof

Prosperity

clear

considerably

—

Federal

you are willing to con¬
possibility that the Perils

So, if

viewing

is

today is with

wartime

tne

to

last New

one

In fact,
sacred of the

Credit

on

whereas

debt,

debtedness

up,

a

than

Over, the past decade, there

lic

add

Thp

economy.

our

of

way

not

prnnnmv

of

simply

course,
one

in

Situa¬

Money

do

tors

it

concern

ing.

now

bating instability.

ana¬

the
;

has been little change in net pub¬

edge and better weapons for com¬

lyzing the

-

has

savings,

vate, rather than public, borrow¬

sure,

and

with

has today become a magic
and bank word. It has a built-in halo. One
factor
of can no more be against housing

Looking at the debt picture in

of the many ways

economy

turn-

must take into

we

also

perspective,

in which
become
more
stable than it used to be;
on.
au~,
T
and
we may be prepaied to grant
that we have today more knowlaware

e

Situa¬

Money

I feel

us,

Government

cake

only the relationships ing

turnover.

debts.

of

the

to

of

rate

Living It Up

\

cycle.
all

its

hood.

of the busi¬

destabilizers

contributed
of

but

credit
money

on

built-in

Now

the

amine

and

ness

seem

us

of

money

country, as in many others, hous-

the built-in stabilizers
our
shiny "New Economy,"
little attention is paid to the

phasis is

it

appropriat
for

Since

or

is

trade

money,

would

interna¬

—

economic,

political,
what-have-you.

tional,
in

days,

The Housingites

'^ In analyzing the Money Situa-

credit
these

of

people tries to eat too much of its

over,

tion, therefore,
among

turn

volume

velocity of money'; turn-

creased

in-

an

over.

concern

we

caused

11

with re- look abroad, you will find many
spect to housing have been partly countries — Great
Britain
and
responsible, oi course, for trie Sweden, to cite but two examples
—where housingitis has become a
swelling of mortgage debt., In this

American Bankers Association

Wherever

the

account not

about the private—not public—indebtedness
pace, Bankers* Research Economist probes such unstabilizing trends as: (1) consumption borrowing being larger than indi-?
cated by consumer credit statistics, and the extent of commer¬
cial bank credit in the mortgage market; (2) assumption housing cannot be overdone; (3) alarming ratio of sales volume
to cash balances;
(4) possible dangerously rapid wage in¬
crease;
(5) further rise or slackening of money turnover;
(6) another rise in the price level; (7) monetary illiteracy;
and (8) complicating government real estate policies and
monetary authorities' inability to pursue restrictive monetary
policies single handedly. Suggests six ways to aid the Federal
Reserve's efforts in strengthening the money picture.

debt expan-

years

only

acceleration

By DR. E. SHERMAN ADAMS*

<

not

in

•crease

Deputy Manager, Department of Monetary Policy

Voicing

(2359)

■

has
in-

Baker, Weeks & Co.

F. S. Moseley & Co.

Kalman & Company,

Inc.

The Milwaukee Company

Lester, Ryons & Co,
Stein Bros. & Boyce

Julien Collins &

Company

McCormick & Co.

Stroud &

Company

Incorporated

.

V-

The Commercial and Financial Chronicle

.

.

Thursday, May 17, 1956

,

(2360)

12

4

*

»

1

'

•

1'

.

i

•,

'

■,

■.

'

-

'

•

ments

Depreciation's Use to

Accelerated

the maximum

confused

considerable

less

the subject of ac¬
depreciation, with oc¬
casional statements or inferences
thinking

on

celerated

t h

is

it

t

a

''handout"

t

is

it

necessity then

a

some¬

happened and a loan is required
to get across the valley.
Under
these

circumstances,

whether the

untrue
except in the

interest rate is zero or 6% is

the

will

quite

rare

cases

where

the

tively

corporation

or

sis
d

be

re-

d

to

e

c

metic

if

we

make

the

as¬

sumption

John

the

tuat

Airey

52%

present

corporate tax be changed to the
figure 50% and also ignore the
minor fact that the first $25,000
of

profit

carries

of

tax

a

only

without

suitable

suitable

on

a

is not

negotiable.

is

terms

first

case,

suppose

a

serious factor in influenc¬

a

It

an

he

is

is

if

doubtful
knowingly

nessman

made

equipment

of

become

we

technologically

a

sold

of

the

will

runways

subsidiary will be
the
Corbin Lock
Division of the parent company
and other products, those formerly

If

Cycle Regulator
unlimited

had

we

depreciation
would

tend

when

rate

to

use

operators

Lock

rather

sion.

Profits

recently

a

result

will

The Con¬
Company, which

company,

Water

necticut

be¬

new

the

from

merger

The

and

Naugatuck

of

Company

Water Com¬

acquisition by the
new
company
of
the
water
(2) Producing capacity is more,
of
The
Connecticut
likely to be at the limit than properties
Light & Power Company.
The
when below the median.
An inducement to increase the, resulting company proposes, sub¬
of

ject

goods,

capital

new

when the economic pulse

variations

economic

in

and

pany

activity.

to

Similarly,

the

following
nine
years.
Academically speaking, that
statement

The

is

not

quite

"borrower'"

back,

but

this

pays

only

out

correct.

of

loan

profits.

Those companies who do not have
a

profit in their future will have

in

choice

fluctuations.
It

to

not

does

it cer¬
impossible-

seem

tailor the tax laws covering

so

exists

for

a

selfish induce-,
operator to

each

and

renovate

to

more

ex¬

approval

of

the plan by

Guilford-Chester

of

and Naugatuck and to

approval by
Utilities

Public

Connecticut

Carried

ciation.
this

off

the

first

extreme,

depreciation has any "giveaway"

year.

Those

who make such
sumed

proposals are as¬
be motivated by the
welfare
of
society

to

maximum

benefits
to the, operators.
They have a
are so few as to be negligible.
However, practically all poli¬ good case, but with qualifications,

received

ticians
not

a

"giveaway." Such

and

some

economists

object to helping
and
many

activity
sider it

cases

a

do

con¬

virture, which it is not.
Nevertheless, the frequency and
magnitude of such cases is so small;
as to be of negligible interest and
is referred to
here only ih the
interest of complete truth.
let

tues"

of

There

can

opinion
or

then

6%.
In

a

interest-free

an

be

that

would

any

appraise the

us

if

like

zero

other,

no

to

rate

is

It

of

must

is

than

any

is

desirable

to

well

known

and

it

It is

that

II

e

1 i-C

o

i 1

2V2 for 1 stock split of the Class A
Class

and

activity

in the

money

obtain¬

of

be

SAN
ward

date,

sense

new

activity will increase.

If invest¬

new stock to be
On June 11 stock¬

the
8.

increase

authorized

numbers

of

Class A and

B stock

shares

of

to

change both classes from

par

to $1 par value per share.

and
no

proposal to

the

Wilcox Joins Nat'l
Securities in California
LOS

Calif.

ANGELES,

The

appointment of Bruce F. Wilcox
of Pomona,
Calif., as a whole¬

Southern

in

representative

California

*

Securities Se¬
ries of Mutual
Funds

was

announced
H.

I. du Pont &

Jr., Pres-

id

partner in the firm

Son

Research

Company,

Penn.

These

to

are

Corporation,
which spon¬

to Danbury where

present main office
Hartford. The new

tion

has

involve

an

expendi¬

dissolved

its

Corpora¬

subsidiary,

and

sors

ries.

Bruce F. Wilcox

Wilcox

Mr.

will
L.

Rufus

Resident

Vice-Presi¬

Los Angeles

for the cor¬

Carter,

dent in

to

assistant

as

serve

man¬

the Se¬

ages

poration.

National Secu¬

Prior to joining

Wilcox was associated
from 1951 to 1955 with Charles
W. Scranton & Co., members of
the New York Stock
Exchange,
in New Haven, Conn.
He is a

rities, Mr.

former resident of New

1946

From
was

in

motion

to

Haven.

Mr.

1951

Wilcox

Service Sales Pro¬
Division of the General
the

veteran of
of the
U. S. Marine Corps, having served
from 1940 to 1945.
He attended
the New Haven Business College
Motors

the

He is a

Corp.

Marine Division

First

the Connecticut
Commerce 1938-1939.

1936-1937,* and

of

College

G. G. Young

Joins

Schneider, Bernet
Tex.

DALLAS,

is

Young
the

of
of

Hickman,

&

Inc., Southwestern Life
the

members

of

Midwest

Stock

Haven

was

Building,
York

New

and
Mr.

Exchanges.

with

formerly

Townsend,

&

C.

George

department

Bernet

Schneider,

—

manager

now

statistical

Young

$3 million.
Hardware

&

parts

which

plans to construct a new six-story

wing on its
building, in

Se¬

curities

Conshohocken,

facilities

will be moved

American

a

June 1.

on

Primary Markets in

De

Crouter

Bodine, Philadelphia.

CHAS. W. SCRANTON & CO.
Members New York Stock

CONNECTICUT

Forms Wansker & Co.

Exchange

'

r-

1

New Haven

(Special to The Financial Chronicle)

ATLANTA,
Wansker

is

Ga.

—

R

o

engaging in

business

from

4410 East Brookhaven
under the

Co.

of

t

n

e

Co., 317

Montgomery Street, will become

&

by

Simon-

J.

White, resident manager

for Francis

rities

for

National

the

son,

to

of the creation

with

Calif.—Ed¬

FRANCISCO,

A.

stocks and

common

National

ture of about

Admit E. A. White

widely

the

B

May 25 has been set as the record

Corporation,

toward building will contain about 90,000
square feet of floor space and is

in

Francis I. du Pont to

be stable,
current savings must be currently
invested. The word "invested" is
used

that way which will

helpful

Rubber

Directors of Armstrong

Danbifry, has recently purchased
production facilities of Towle and

estimated

fundamental that for total

economic

this mech¬

use

moving
economic stability.

most

analyze.

Achilles' heel
in our free economy is the wide
swings in the creation of capital
goods. Consumption goods in com¬
parison
are
relatively
stable
through foul weather and fair.
accepted

in

anism

it and

to

alleged

capital goods, houses, fac¬
superior to tories, equipment, et cetera, over
it is 2% or and above depreciation. If invest¬
ments exceed savings, economic

operations




loan.

either

borrow

whether
f

business

"vir¬

differences

one

which

drowning

even

a

Now

rather

feature

manufacti^re
Canada.

Company have vcted to approve a

but

rid of the notion that accelerated

complete

in

result

would

write

the

to

difficulties,

'Inter¬

Ltd., has

Co.,

to

'

The

used to manufacture aircraft

pand his plant in times of lesser
economic
activity.
It
has
ad¬
ministrative

subsidiary,

new

Hardware

formed

16 of the State's 169 towns.

be difficult, but

may

tainly

'

depre¬

of

acceleration

A

builder hardware ip

' inducement

an

by

the

stockholders
the

sold

be

issued June

higher than average, and

creation

will

Ltd.,

holders will vote on a

presumably

are

"

they will be set up as a new di¬
not vision of Heli-Coil.
tion
of life without accelerated he is
going to make 10% plus on
insurmountable ones, and an im¬
amortization is 10 years. Assum¬ the capital employed.
* Sarong, Inc.
of New Haven has
provement toward economic sta¬
ing
straight
line
depreciation,
announced
What are the advantages of an.
plans
to
move
its
bility
potentially
lies
in
that
profits will be decreased by $10 interest free loan repayable only
operations to a 70,000 square foot
direction.
in each of the following 10 years
building
in
West
Haven.
The
out of profits?
jToo much thought and publicity
and $5 will be saved each year
Company, which manufactures
If, during the life of this inter¬ have been given to purchasing
in taxes.
womens' foundations, is presently
est free loan the operation does power
for
consumption
goods
In the second case, let us con¬
operating at a site which is within
not have to borrow money, the rather than
to the governor of
an
area
sider the extreme limit of com¬
presently
being rede¬
value of the interest free loan is the economy, creation of capital
veloped by the city of New Haven
plete write-off in the year follow¬ zero and
merely swells the cash goods to offset savings.
at an estimated eost of $7 million.
ing purchase. Profits in the year balance.
The fallacy enters because pur¬
However, if during this
of write-off will be $100 smaller
Sorenson and Co., Inc., whose
period the operator would have chasing power is almost invari¬
and, therefore, a tax saving of $50 had to borrow
present operations are located in
money if he had ably regarded as synonymous with
will result instead of a mere $5
not had this interest free loan, purchasing act. The facts are that Stamford, is constructing a 70,000
in the former case.
then
an
increase
in
earnings purchasing power plus purchasing square foot building in Norwalk.
The
new
In both
plant,
scheduled for
cases
the corporation would result
compared to the con¬ willingness are required to cause
completion early
in
1957, will
has paid $50 less total taxes dur¬ dition with no such interest free
a purchasing act. In fact, the pur¬
provide additional space for re¬
ing the 10-year period.
In the loan.
chasing power can be substituted
search and manufacture of elec¬
second case the corporation is $45
It is unlikely that the magni¬ by credit and the result will be
tronic control equipment and will
better off cashwise in the first
tude
of
such
potential savings temporarily the same.
provide employment for about 300
year, but is $5 worse off cashwise
would be serious in relation to
Capital goods are the nerve
persons.
in each of the succeeding nine
the financial operation as a whole. center of our free economy. Addi¬
The
Connecticut Power Com¬
years.
tional expenditures in this direc¬
pany
has moved
into its new
Investments Equal Savings
tion create the additional purchas¬
Zero Interest Loan
office building
in Wethersfield.
Having disposed of the alleged ing power among the consumers, The
Compared to straight line de¬
building is owned by Con¬
which in turn tends to increase
preciation, this sometimes alleged "giveaway" aspect of the accel¬
necticut
General
Life Insurance
the
demand
for
consumption
"giveaway" is solely a zero inter¬ erated depreciation, it is desirable
Company and leased on a longto
look
at
the
recommended
pro¬
goods.
est loan of $45 by the tax collec¬
term basis to Connecticut Power.
In
looking
toward minimum
tor to the corporation, which is posals of permitting the operator
The
Connecticut Mutual
Life
economic
to have
instability, let us get
complete
flexibility
of
repaid at the rate of $5 in each
Insurance Company has underway
of

Co.,

Ruswin Belleville Lock Divi¬

the

been made of the proposed forma¬

Guilford-Chester Wat^r

(1)

by

tion of

the maximum

the median

above

in

cnoice

rates,

has

Announcement

cause:

any busi¬
tend
undertakes

development unless
strongly that

optional
believes

that

sold under the name of Belleville

designed

be

by

marketed

been

ing the decision providing it is in*
depreciation that
the conventional region of 3% to

costing $100 and that the expecta¬

purchase

nounced plans to enlarge Bradley

Corbin Lock Company of Canada,
Ltd.
Some
products previously

national

interest rate

Even in this case the

5%.
the

an¬

We

ment

30%.
In

would dis¬

Aero¬

Commission, to sell to the public, sale
to
through an underwriting, about
obtaining a loan is
dampen creation of capital goods,,
45,000
shares of its common stock
optional because the decision has when
unemployment is less tham
to provide part of the funds neces¬
not yet been made to go through
that which gives the most effec¬
with the proposal.
sary to complete the purchase of
Further, the
tiveness,
would
be
helpful * in: the water
properties of Connecti¬
decision will not be made affirma¬
checking the inflationary tend¬ cut
Light and Power. The result¬
tively until those concerned have
ency and tend toward decreased^
ing company will serve parts of
satisfied themselves that a loan"

arith¬

mental

cannot be

clearly

which

then

loan,

analy¬

can

u

one

State

Commission >' has

nautical

is belowis contem¬ the
median, would help minimize

expansion

general

activity

additional

some

undertaken

future.
The

taken anyway.

be

plated,

profit in its

a

rela¬

trifling matter—the loan

a

When

doesn't have

No

-

Connecticut

-The

•

static economy or a

has

thing unforeseen presumably

o

corporations.
This
is quite

give

production of goods

Business

a

Jr.

^

powered commercial airliners.

a

If

:«dr ^

welfare State. for instrument landings. The ex¬
except that neither will occur. pansion will also involve a new
The best we can hope for is a freight terminal building and ad¬
continuous pulsation in economic ditions to the present passenger
activity, and the magnitude of the terminal. The program is being
pulsations will vary — about a undertaken to prepare Bradley
Field
for
the
coming
of jet"perfect" median.

loan is sometimes a neces¬
sity, but probably equally fre¬
quently it is optional.
ing

^t *

although it Air Field at Windsor Locks over
is
two people a three year period and at a cost
would quite agree on a definition of several million dollars. Plans
of the component conditions which call for extension of three of the
would bring that about. Some un¬ present runways and construction
employment will always exist un¬ of a new 12,000 foot runway. One

upswing. Interest free loan aspect involved in the first year's
complete write-off is held to be of negligible importance.
is

<

that statement,
probable that no

potentially capable of modifying capital creation swings—
i. e., the business cycle. Author does not believe it impossible
to adjust tax laws allowing0 unlimited volitional choice^ of
depreciation rate schedule. Explains inducement to firms to
modernize and expand during poorer times by selecting mini¬
mum depreciation rate and natural tendency to use maximum
rate, dampening capital goods creation, during economic

There

4 *

pute

contentions, Mr. Airey approves and
depreciation an economic governor

accelerated

services.

and

would

which

conditions

of

By JOHN AIREY

Disputing "handout"

.*

i'

decrease.; :
"perfect" economy is that set

>J A"

•

Stabilize Economic Growth
considers

*

less than savings, eco¬

are

nomic activity will

firm

name

b

e r
a

t L.

SECURITIES

New York —REctor

2-9377

secu¬

offices

at

Drive, N.E.,
of Wansker

Hartford

—

JAckson

7-2669

Teletype NH 194

&

Volume 183

Number 5534

.

.

The Commercial and Financial Chronicle

.

(2361)

it

Age and

will

have

and

medicine

as

the others.

Southwest

for

Research

and

Education

-

tremendous rate valuable chemical

•

v

-

available.
tition

set

:

°

IdU1
will

in

taxe
take

will

in
m

wmMmmw.

business in the
future.

that

ine

.

nssion

In

thpn
tnen

pan
can

other words, I

/

immediately

process

have

neutron

the

that

op¬

ess

such/

thing

as

We have

is

msed

m v
th
Dr. Harold
Va8,borg

Age,

and,

that

that

h

n

the

as

"convinced
find

the

scheme

we

frankly, I /am
are
going to
fit

will

atom

of

into

business, industry

f and investments by evolution and
.not in any sense by revolution. The

the atom

of

atnm«?

atoms,

a

as

comes

new

a

will bring a new surge
economic development just

and

tion

engine, the automobile, and
airplane. In other words, scihas brought
a
new
factor
into the scheme of things which

the

ence

will continue

"¥~*

•

"

'

-

mi

i

pubdn

^put

get out
with heat

one

in

maintain

to

an

ex-

panding economy and a high level
of prosperity.
Let

look

us

of" the

some

the

comes

for

the

of

in

manner

which

important

an

at

moment

a

aspects

medical

atpms are

of

acnerts

afpec.ls

-

■

shin

plest

it

the

already
work

/

Consolidated
Vnrk

ic

is

been
under

/

Edison

of

New

A^ii*

cnmniotino

a

of a 250,000-KW plant to which

i^S^^11 be derived frora
nuclear power"

v

■

mnsbo/thpir

that

Xexan Outlo»k

-

■

be

siower to develop in Texas,
compare(j to other parts of the
country, because here our fuel
costs are very
low and,* in gen^

as

, ^

_

Hincflon/i.

■

nnnnnnTi'nfQ

rn

ma-

for nuclear
we

tvoes

lir

i,

mii^t.
must

he
be

trievered
triggered

hv

atomic
atomic

an

by

an

the

almost'

O

'

■

-

to attain sufficiently high
for fiminn
'
temperatures for
fusion.|;
In the sun, the process of nu^
clear
fusion' is responsible for
production of energy. In this proc- ■
tpmnpratiirp*;

four

atoms

that

into

of

hydrogen

a

atom

one

of

J

.

the

on

nuclear

technology,

and

energy,

manv

countries involved

^

,

many countries invoivea.

new

store

millions of

is

one

find

heavy

dense

reacning tne eartn s
eight-hour day is produced by the

called

a

cloud,

we

the

center

cloud

of

nucleus.

a

very

electricity

Around

would find

a

this

very

thin
elec-

cloud of electricity called an
tron.
Within the nucleus at
would

center

/electrical

As

clouds
and

neutron

actually
other

a

proton.

a

rule, the various forces in

a

atom

are

in

equilibrium, and

the atom is stable.

There

are some

atoms,

however,

that

broken

up

by

neutron

nucleus,

and

that

atoms

a

there

be

hitting

are

some

stable

not

are

can

and,
therefore, constantly disintegrate,
This

last

type is what

radioactive.

these

For

unstable

or

more

fly off into

no

we

reason

atoms

fly

call

at

all,
apart.

"pieces" of the atom

space

somewhere, and

hydrogen.

<;

.

jn

orcjer

to

the

use

radiation
with

the

will

see

is

constitutes

what

we

Geiger counter.

later,

control

Atomic
measure

As

of

we

this

radiation for science and industrial purposes opens up great new
areas

of

application.

js

not

to

necessary

phenomena

and

know

address

by Dr. Va*tbore bof«re
Group of the Investment Bankers
Assrciation
of
America,
Corpus
Christi, Texas, April 27, 1956.

that

lt

be

nnwpv

fuels

-tUelS

nsiihi

ffpnprallv

w;n

in

•

uation.

nlant

a

conventional fossil-fuel
plant,

en-

namely,

nuclear reactor takes the place

the steam boiler.

ness,

concern

this

been most
but

famifiar

with

-

•

,

can

as

that

and

power on Jan, 17, 1955.

?»•„„„

scientists have

our

thorium

pienti£ul

as

lt

madp

a

IS

three

"

uranium in

,

25,000-mile

hp

generally speaking
yet learned how

fuei

a

have not
to control it as
we

source,

n0

essary-. A

second nuclear-pow-

a

acceleratinS

.

and

plans

generated

in

turn

entire

a

of electricity
town.

amount

a

are
presently being
nuclear-powered mer¬

/-

Major construction work is
in

nroeress

on

the

a

of

a.n ever-expanding economy. It

sufficient

to light the

nation's

now

first

is

interesting

manv

to

consider

countries participating in the Geneva confereflce bad industrial exhjbits

-n

Geneva

In

The

second

of

use

these

large

area

produced

is

60,000-KW
operated

nuclear facility to be

by the

Duquesne Light

Inc., conducted its first Trade Fair

in Washington, D. C.

Continued

Penn.

oj record only.

4V4% sinking fund debentures
DUE MAY 1, 1976

Direct placement

oj these Debentures with institutional investors
negotiated by the undersigned.

has been

the

materials

for military
we

have

processes

that

are

Eastman, Dillon

care-

fully guarded secrets. They do not
neSS
mu

the

normal

broad

il-

j

.

,,

ihe third area is the
we

busi-

aspects of the atom,

want

to

talk about

,,

area that
today, for

"

May 16, 1956.

&

Co.

About 100

on page

Consolidated Cigar Corporation

weapons. Here again,
in the interest of national security,

September,

civilian nuclear power plant—the 1955) the Atomic Industrial Forum,

-

the

that

manufacturers from all the

proper

with

and

for

chant ship.

L. S. Atomic Plants

These processes are secret
I°r the time being, concern
the Atomic Energy Commisand the individuals and ormeasures

Dlans

„uelear.DOwered^shiDJ^in^^^eneral
^
r?Ap_. b g "

is the processing of fission-

security

At that

]us* re'urnlng f™1"

cruise during which
refueling of anv kind was necCiuciug UI dny mna was nec

made for

_T

All other parts Company of Pittsburgh,

able ores into radioactive mate-

r^ab
and»
°.nly
s*on

imropdiafp

!bls lmmediate

^

v

in busi-

us

before

pftmnpfo

$5,000,000

The first area, which does

not generally

Deiieved

sometime

the

have

utilizing the atom that are
involved in the development sit-

hoiiovMi

generally

W1n

nuclear

f0gsil

is

U is

of the

I

ing and

the Texas




It
'.r

much

details

processes

m,t

be interfesting

that

times

just described.
There are three
large areas of activity in process-

concern

*An

ati0n

fw

suc-

materials which are made availabIe to the other two large areas,

atom

radiation.

have TWh

cost*
.

cessfully in business, however, it
a^out the technical

climatic

that

door lnstaUatjons at low capital

below

This announcement appears jor purposes

atom

pieces

the

milrt

so

♦

.

AEC \n the production of atomic

call

tmnemtin*

Three Areas of Activity

The flying off into space of these

of

arp

fu^on of only 352 pounds of

gamzations working under

we

.It may

major difference be-

nnelenr

ergy-generating

one

the remaining portion of the atom
is different than it was before,

what

and

lutfJpfn^n
suriace in an

the

two

called

one

—

the

be

when

conditions

'

tween a nuclear-generating plant in progress on the nations lirst

type of energy is

startling

0nly

t

petroleum, shales, lignite, and all
fossil fuels. The efficiency in pro-

would

at

for the great international
that exists in nuclear

reason

Generally speaking, there

particularly

.

i

*

rp«>rvp<s

our

to point.
^
^ Merest to
out that we: currently have three P°lnt out that the first nucleargeneral types of fuel sources— Powered submarine, the USS Nauuranium, thorium, and hydrogen. /^us' was under way on nuclear
•

•

"

Tie Se

shift

Nuclear power, then, is a burThe first atomic electric plant
terials such as coal, gas and oil. in the world was operating in geoning industry. It has nothipg
It is pertinent to note that, if the Arco, Idaho, in 1953. This is a to do with the secrets of processworld used energy at the average town of 2,000 population where *ng of ores or military uses. Its
United States
rate,
all known the AEC has had a research pro- increasing application by industry
reserves of fossil fuels would be gram in nuclear reactors under wiU create a demand for innumerused up within 100 years.
We way for the past few years.
A able new industrial products. This
can
well understand, then, the research reactor producing steam demand, in turn, will contribute

re-

of heavy hydrogen under a
superpowerful microscope, we

f?pner-

be,: 10%

can

cOsts.

to

unlimitpd

duuusi uiuumiea reserves

earth's crust./Hydrogen, of
in our economic de-, course, is the most powerful, but ®as

energy.

"wV'could "examine &an duction of this

3f

coal-fired

radioactive

lar.-interest
velopment- Steam generation by

en-

is

costs

power"

almost

0

T

ime;of lignite. Then, too,

found tnat thorium can be made
.

,

for the

up energy

me

1975.
Her engineers believe that atomic

found

.

Need for Non-Fossil Power Fuels
Nuclear energy is for particu-

sponsible for the sustaining of all
forms of vegetable and animal life
on
the earth's surface.
It also
serves to

laxing

rpnnirpmpnts

nnwer

able similarity' in research and we have
development activities among the uranium,

helium,

sun

are

ated by nuclear reactors by

transition-from nuclear science to

is generated as the' extra
weight is changed into energy.
action

ana

"a

,of

time '1

the

takine

are

.inf. almost limitless ner power requirements gener

siv?ly. Ithaf in the b very/ recent
past . there has been' a marked

are

tremendous amount'of

her

The conference showed conclu-

.

ergy

This

and

necessary to determine what type

limitless

atomic application picture.

bomb

used

power is not so great
working on five general

are

types

applications,

be-: ener£y has been: stored in the
tool. millions of years gone by on the
earth's surface in the form of coal,

6tom

~

need

n° urgent

tha? .public. P°wer.

eco-

interest

atoms, but the sim¬
these is the hydrogen

of

-atom.

One

has

and

Although there is not much nuine1^ clear-power activity in Texas, our
of cutthifi
costs
bv Utility cpmpanies are keeping in
cuttJnS cost® b.y close touchwith nuclear-power
atomic
plants.
Tb^r developments. Nuclear power will

franwiv

nrn-

c^^i^pd611 Th i« ;ind U^try- The activities, and data
/ which is released. This reported also revealed a remark-

„^m^lwdio-

ess,

power,

years to come just as

atom '

kinds of

the

Electric

way

stated

:-ag,rt^u5I plications, hiologi- of reactor is most practica! for

together to produce heavier

■

nnwpr

pulsion,

other

nroducts
proaucts..

temperature,

for

nnmios nf dtomir

There are, of course, many differ¬

an

As

one caj hazards and their control, dis- the purpose.
than p0sal 0j£ Atomic wastes, and other
England hopes to have 40% of

more

and

terials,/reactors

"

ent

■

WW

the burning of fossil fuels have
in our
There is extra weight left .over: bfen by far the greatest source
as
did the coming of the steam anc}
aithough this is only 7/10 of
our energy. Here however we
engine, the railroad, the electric i% Gf the weight of the hydrogen, are burning up at a tremendous
generator,
the internai-combus- there are so many atoms involved >rat? valuable chemical .raw ma-

and

eral

signed,

-Pyi^ary*, motive is «,to stake this
out;as an area of private ratner

■cs 01 atomic powei;, snip pro-

seen

•references to
Atomic

up

possible only at hxtreme-

yM nigh

innumerable

tool

"Atomos for Peace,"
few weeks ago in Geneva,
on

atomic.raw

produces

nthPr
other

nn

and

is

'

era

atom

ajomic energy
Procnuclear fusion
In this case,

which

the

"Atomic Age."

■use

a new surge to."
just as the steam
the internai-combus-

Over 1,000 technical
papers from 33 countries, Jncludj.1
ing ^ussja ,were presented. These

The third

.

is any

our

States.

^

area

Switzerland.

one

hrpak
break:

radioactive
raaioactive

don't

I

ot

along

one

'believe there

this

It is this

tion engine did years ago/:
V
?
You will recall the international

held

Chicago to" utilitv

other

seven

.

bringing

conference

of

by Com-

in'Uha"

regard^ to nuclear

economy

engine and

,

process" where
where°ybu
you

portunity to
say to you

•

is

our

§/more than one new neutron which

^

;

:

United

180 000-KW

r

speab

•.

.

varifties.

of many

•

*

the

plant

power

the

T,18 circumstance has caused
Nuclear fission is a phenomenon;
England to concentrate primarily eraj ab0ut one-third^ those1 usual
s
papei; be?auf lnvol>;;ng uranm,m ,°r °lhe!; f's" . 1,000 papers will produce 16 vol- on one type of nuclear reactor for for coal-fired operations in othlr
5
n™ „°v,PP°(rt.i;nl^
. sionable materials, in which the umes 0f 500 pages each as the power generation; however in the parts of the
countrv
With risine
,speGi/n1Gally about the P'ace ™cleus of the at°m is "exploded" iproceedings of the conference. United States where the pressure ,Pataral ga® costs there will en?

in®

_n

in

with

gether

is much greater than it is

power

is

constructed

monwealth .Edison

particularly important to
such areas.
In England, for example, the urgency for nuclear

area

be

companies
general area
generation a $45,000,000 contract with Gen-

energy

become

oil- rea»y has

separated research facilities
.

in

the, world

;states,

raw

industry*

is the

nuclear

mg

largest nuclear

plant to

are in very low
quantity, and the possibility of obtain-

in .the "Wall .Street Journal" a
power> medical
and -agricultural ?bnrt "timp
: "Thp
TTnit^H
research,-industrial research techwith abundant cheap cbal

Shows how creation of Science City lessens
compe¬
for

In many countries'of

The

yet scheduled

fossil fuels

industry, business,
by. arrangement with

,.

a

for scientists and allows

of the

area

to

vistas

new

materials, Dr. Vagtborg
specific long-range policy
with respect to
making nuclear fuels and radioactive materials

hopes that Government will

.

system, such as turbines,
condensers, generators, and transformers, ar£ the^same.
1

of "Atoms for Peace." It involves

expanding economy, ptbvide a new
surge to our economy similar to
past performance of steam
and internal-combustion
engines; and avoid burning up at a

'

*

the Commission." This

-

.

This is the

and science

Noted'!■ Research Institute President
points out evolutionary
business atomic energy usages, but finds it will be sometime
before nuclear power in the Southwest will
compete with fossil
fuels, To maintain an

ft

-

*

available

Foundation

of the

-lndustrial, agricultural, and mediPluses of the atomic materials,
produced by AEC m the first area
previously mentioned and made

By DR, HAROLD VAGTBORG*

President, Southwest Research Institute and

larger impact on
industry, and on
"well,* than either of
a

business

13

41

14

The Commercial and Financial Chronicle

(2362)

Continued from page

more

11

the

demands

Scene
And Dangeions Destabilizes

extent
has

to

of

The answer is that
have been using
more inten¬

money

being handed around
being made to do more

of

skyrocketed
by
50%, but
holdings of cash have risen only
17%. In other words, the volume
of sales per dollar of cash on hand
has increased about 28%. This ac¬
tion

tor

It

the

of

apparent that a renew¬

seems

increase

of

the

large
tc
;
8

de¬

business

in

The magnitude

mands for credit.
increase

depend in
what happens

may

measure upon

the velocity of money.
Looking at the debt picture as

whole,

escape the
serious

hardly

we can

conclusion

that

there

locity

ed with this recurring problem.

would be, I

other

that

believe,

business

concerns

follow high price policies to
larger payrolls and ex¬
pansion programs.
may

finance

Pressure

the

on

Take business concerns,
continue

indefinitely to do

tive to their cash

their cash

volume

the

of

for

business

months

boom

not

been

If

years.

the

is

cerns

policies have

an

import¬

ant

more

they

in

penditures,
continue

to

this

and

indefinitely.

in

money

money

Perhaps

we

look

should
at

take

now

this

matter

a

of

money velocity.
Whither
V

Velocity?

The rise in money

ply

means

_

business

velocity sim¬

that individuals

and

hold

less

concerns

now

money than they used
relation to their

volume of

to hold in

greatly increased
money spending. Fewer

to

speculation

markets.

In

h?,Y>o~

keep

too

more

Their

ex¬

cannot

may

money

so

on

the past year may be in part
manifestation that many indi¬

over
a

It

scraping the bottom of

are

seems

if

start

we

and if the

therefore,

probable,

rise

booming

in

short,

in

it

various

would

possibility of

en-

serious

a

money

again

velocity

Line

Our First

of

Our

,

would

course,

be

defense,

in

again

come

record

recent

good that

so

of

restrictive

a

The

policy

monetary
has been

of

policy.

monetary

have

line

first

eral

Reserve

years

people

some

to

believe,

authorities

economic

sure

ence

as

can

stability.

as¬

Exn^ri-

has indeed demonstrated that

monetary policy can play an im¬
portant role, but it is question¬
able whether it can single-hand¬
edly cope with the pressures that
may lie ahead.
For

example,

the
monetary
clearly cannot regulate

authorities

the velocity of

If

monev.

should

turnover

for

more

In

heavy

demands

bank money.

other

words,
the
turnover has for

rise

in

money
a
num¬
ber of years been
financing much
of
the
increased
demands
for

prevent a pro¬
relaxation of the terms

actual

continue

rise

to

practice, however,

would be

On

a

the

this

difficult thing to

very

other

velocity

makes

hand,

if

money

stons

ary

pressures

ply.

Could

the

on

they,

the
con¬

expansion¬

with insistent

matter,

it

money

as

sun-

nractical

a

effectively restrain these

pressures?

Reserve

is neither

announcement

offers

buy,

to

any

is made

an

offer

to

sell,

nor

a

solicitation of

of these securities. The offering

only by the Prospectus.)

.

.

.

Under these

circumstances, Fed¬
policy might be seri¬
ously handicanped bv monetary
illiteracy. Although there is con¬
siderable

acceptance

of

flexible

cannot

prevent
too
rapid " in¬
in wages, nor can it offset

creases

their

inflationary impact.

have

influence

some

restraint

of

works

many

and

tle

400.000 Shares Common Stock

are

per

I

.

:

'

'

'

"

1

share)

^

.

stirring

of

limited degree.; Wage settlements
reset
the
valves that control
a

lit¬

opposi¬

up

we

payments

opened

are

the monetary
tighten, other

Damocles.

Britain,

Offering Circular

may

be obtained from the undersigned.

Gcarliart & Otis, Inc.
74

Trinity Place




New York 6, N. Y.

WHitehall 3-2900

too

authorities
offsetting

conclusion

not

Federal Reserve
this

like

a

will

tion.

I

briefly

six

should

the

Their

suggest
which they

do

all

can

we

people with respect to
importance of credit restric¬

tion

the

ultimate

quences

are

more

405

formerly Hartford Manager
Shearson, Hammill & Co.- Prior

for

thereto he

was

partner in Tifft

a

Brothers.

J. L. Marler Co. Lid.

:

Formed in Montreal
MONTREAL,
J.

Peter

Que.,

&

Canada—

Co., Limited, has

with

Street.

offices

at

501

Officers

of

the

Stock

Exchanges,

are

Leslie Marler, President; V. Barry

Smith, Vice-President; and Doug¬
Rodomar, Secretary-Treas¬

lass V.

Mr. Marler

urer.

principal

J.

of

Smith

Mr.

was

previously

was

L.

Marler

&

Co.

President of Hart

Smith

&

was

partner in Smith, Thomp¬

a

Co., Ltd.

Mr. Rodomar

son.

during

boom.

a

To

be fully

F. J.

effective, Federal Reserve policy
requires enlightened public sup¬
port

the part of

lenders

as

against

a

bankers and other

well.

We should guard

deterioration

in

the

quality of credit which often, de¬
velops

late

in

the

centuates

needed,

boom

a

among

as

With Paine, Webber

of

(Special to The Financial Chronicle)

the

field

Some

voluntary efforts in this
suffice

that

and

bankers

the

BOSTON,

that

area may

Burnett,
son

is

highly

a

&

(4) During a boom, the Federal
budget should show a surplus for
debt reduction.
cessive

tax

Pressures for
should

cuts

be

has

Henry

—

become

B.

con¬

Paine, Webber. Jack¬

Curtis, 24 Federal Street.

Spear, Leeds Admit

contro¬

Spear,

versial

issue, of course; but the
problem is clearly one that de¬
serves careful, objective study.

Mass.

Jr.,

nected with

Federal

Reserye
should
have
stand-by
authority to regulate instalment
This

of Dallas.

in

believe

economists

not

ac¬

sales department of Shumate
Company,
Life
of
America
Building. Mr. Phillips was form¬
erly with the
First
Southwest
Company and prior thereto with
&

businessmen

credit.

consumer

and

the

be especially

may

lenders,

as

and

With Shumate & Co.

ensuing difficulties. the First National Bank

(3 Restraint
well

:

DALLAS, Tex.—Frank J. Phil¬
Prudence will be called for lips has become associated with

(2)
on

Phillips Now

at least tolerance.

or

Leeds

Kellogg,

&

111

Broadway, New York City, mem¬
bers of the

change

New

York

Stock Ex¬

June 1 will admit Wil¬

on

liam E. Downie to

partnership.

"

ex¬

stead¬

Lard, Bissell Branch

fastly resisted.
of wage policies

area

price policies, there

will be need for moderation and
of

sense

the

social

of

part

responsioility

both labor and

a

on

man¬

agement.

Conn. — Laird,
Meeds, members of the
New York Stock Exchange, have
opened a branch office at 5 North
WATERBURY,

Bissell

Main

(6)

It

also

ernmental

that

means

policies

gov¬

should

be

oriented toward encouraging peo¬

ple

to

save

borrow and

ticular,

more

ratner

spend

more.

tnan
In

io

par¬

the policies of Federal
agencies should be better

coordinated

national

with

mone¬

&

Street

the

under

manage¬

ment of John F. Tufel.

Allied Inv. Co. Opens

aged.

(Special to The Financial Chronicle)

ATLANTA, Ga.—Allied Invest¬
ment Company has been formed
with offices in the Walton

ness.

ford,
man,

W.

Build¬

securities busi¬
Harry I. Staf¬
President, Jack R. ParkVice-President, and John

ing to engage in
Officers

a

are

Chambers, Secretary.

tary policy.

trends

are

Form Colonial Investors

It Can Be Done

In

concluding,

should
in

have

look

at

seductive; and

destabilizing

conse¬

less easily discerned.

gers,

our

in

Money Situa¬
perspective. * We

emphasizing

the

dan¬

course,

strong
have

our

condition.
risen

While

Investors

to

engage in

a

a

McGrath Opens
WASHINGTON, D.
Grath

Securities

our

in

under

the

so

with

Street, N. W.,
securities business.

principal of

the firm.

office

substantially,

formed

been

Robert H. Davis is

are

capacity to support them.

has

offices at 3445 38th

New

other financial institutions

debts

has

of

WASHINGTON, D. C.—Colonial

we

the

broader

been

perhaps

because it is im¬
balance
of payment difficulties; portant for us to be on our guard
and the public more readily sees against them. On the other hand,
despite the unstabilizing trends
the need at times for heroic mon¬
we
have noted, there are major
etary measures.
In the United elements of strength in the money
States, the immediate effects of picture. Our banks and most of
are

Co.,

to educate

the

of

quickly and obviously reflected in

inflation

&

was

Canadian

to

in

should

Kidder

new
company
which will hold
membership in the Montreal and

reinforced:

We

M.

formed

alone.

like

ways

be

(1)

job

A.

South Garden Avenue. Mr. Church

St.

require supplementa¬

should

Oliver

—

Church has become associated

been

authorities to do

stabilizing

efforts

hanging
sword

In countries like Great

inflationary

CLEARWATER, Fla.
K.

valves

expect

reason

no

A. M. Kidder & Co.

cannot

obvious

seems

should

we

is

(Special to The Financial Chronicle)

Marler

without risking a recession.

avoid fool¬

can

Oliver K. Church With

L.

rapidly,

we

there

why we cannot achieve continuing
prosperity and reasonable stabil¬
ity over the years that lie ahead.

part of the
money
flow! through our economy. If the
valves

If

excesses,

balance

no

problem

heads

our

doubt, is that in
have

ish

substantial

tion

The

at¬

mosphere in which wage negotia¬
tions take place but only to a

credit

country

over

'

and

to it.

One reason, no

Offering Price: $1.00 Per Share
.

operation.
snecial interest

and

trouble in

this

10<

actual

grouos have few scrunles

tion

(Par Value

in

it

Demagogues

(A Delaware Corporalion)

may

tutions.

ical

Corporation

It
the

on

credit

theory,

the future.

with

Saving should be encour¬
This presents a challenge
to banks and other savings insti¬

a

able flexibility and resilience that
stand us in good stead in

the

total

Americans do not understand how

inclined to be suspicious and crit¬

International Metals

for

hold

to

the American econ¬
has demonstrated a remark¬

should

the

Finally, Federal Reserve policy

and industrial

eral Reserve

monetary policy as

ISSUE

of

credit expansion within bounds.

(5) In the

Monetary Illiteracy
(This

task

difficult

more

Federal

credit.

see.

accelerating,
monetary authorities may be
fronted

the

drastic

of heavy losses

or

Moreover,
omy

monetary authorities. When these
policies are aimed at stimulating
the
use
of
credit, it obviously

money

sharply, they theoretically might
offset its impact by forcing a re¬
duction in the quantity of money.
In

policy;

not

complicate

may

of

country is not prepared to

be

did

credit

liquidation

to financial institutions.

Moreover, governmental poli¬
affecting J real estate credit

The

try to do. It would mean a "credit
squeeze" the like of which this

would

this

that

crease

there

general

gressive

Defense

does

slacken, there would be a
strong tendency for debt to in¬
rapidly, much more rapidly
than savings, and that, as a
result,

important types of

some

Buttressing Monetary Policy

they did in the '20s, that the Fed¬

keeping up with
each other.
Again, the rise in
mortgage debt on "used" housing
can

that

closer

that

have

low, many people

runs

decide to borrow

expan¬

sion.

con¬

When their

their money barrels too.

velocity of

mani¬

their

the rise in

the

a

have also been de¬

viduals

than

recent

individuals?

impact, of course, upon the
Money Situation. In recent years,
they have been reflected more in
turnover

excessive

What should be done about them?

business

relation

In ad¬

economy.

fact,

credit.

on

our

demand

in

will

in

Tnese, men, are some of the
threats that may confront us over
the period ahead. The question is:

In

part

but

recession.

rising

a

reaching the bottom of

future

clining

they

These

some

What about

become

factors.

loans

that

are

the

cash

unstabilizing

over

the barrel in this respect and

renewed, wage policies
and industrial price policies could

seriously

in¬

an

on

is so remote.
During 1955,
example, the Reserve authori¬
ties pursued an increasingly re¬

Sooner

strong

be in

may

festation

cash balances

has

hand.

transactions.

surprisingly

opportunities to profit from the
strong demands for their products.
this

on

balances

operate

recent

ex¬

cannot

men

accentuation of the im¬

dition, it would tend to intensify
anu
prolong
these
maladjust¬
ments.
It might also encourage

creasing amount of business rela¬

business management
to take undue advantage of their

and

of

for

Business

unions

in

balances

Supply

Money

ample.

in

lacking

substantial

a

prices over the
would probably

years

an

general

credit

about

concerned

every one

few

reflect

increase in demands for credit.

During a boom, there is natu¬
rally a temptation for both trade

Evidence

effect

chief

as

next

later they are bound to reach
the limit of their ability to stretch

potential dan¬
gers. One possibility is that wages
may be boosted too rapidly.
An¬
is

the

much

A further rise in

because under

or

More Destabilizers

other

conditions

boom

well over the past
despite the rise in living
being the case, they

else. This com¬
placency is in itself a danger.

even

are

signs.
In the past, the
swings of the business cycle have
invariably been accompanied by
overexpansion of debt followed
by contraction. If the boom re¬
vives, we shall again be confront¬

are

situation

have

price increases and fail to see that
price inflation might be
very damaging to themselves as

if
this should happen, it would not
solve the

people

Many

further

well

Unfortunately, however,

impli¬

This

not

are

has now been
the rise in ve¬
starting to taper

be

may

material¬

quite

costs.

off.

danger

There

indi¬

some

are

fared
decade

money supply
taken up and that

al of the boom would mean a sub¬

stantial

there

ence

strictive

Unfortunately, this is not widely

On the

of

monetary policy is that its influ¬

cies

understood.

cations that much of the slack in
the

mentioned do

There is little prospect of
debt

for

.

could have ominous

cations.

Monetary

limitation

of instalment credit.

40%.
If money velocity continues to
accelerate at this pace over the
period ahead, it clearly may con¬
tribute to boom and bust.

of

velocity

overall

turnover.

money

privately held

Another

rising prices. A further rise in the
price level at this stage of the
boom

other hand,

:

of

ize, they may be accompanied by

demand deposits has increased by

roughly

the accelera¬

of

mucn

of all

turnover

the

inflationary possibilities

have

we

Since 1949 the average rate

work.

balances

when

The Threat of Rising Prices
If these

,is

faster,

concerns

has

counts

4

general,

are

Since 1949 the sales vol¬
all domestic corporations

sively.
ume

intensified.

dollars

cash

down

is booming, the pressure
expand bank credit would be

to

Limitations

Policy

supply.

economy

which business volume

expanded.

business
their

In

dormant.

the* money

on

Other

thereby
these

of

pressure

If it should slow

The Bioadei Monetaiy

has

and

money

cushioned

Thursday, May 17, 1956

...

York

Colbert.

has
the

Branch
C.

—

Mc¬

Corporation

opened
Warner

direction

of

a

of

branch

Building
Sherley

"

Volume 183

Number 5534

■*

*

t

The Commercial and Financial Chronicle

*.

.

"*■< ■

/

(2363)

From

Washington
Ahead
of the News

forecasts:

■v

minds

of Senator Walter F. George of
Georgia,
lot of sober thought to the Eastern pundits whose

a

attuned to the happenings in
Europe and Asia and who
longer consider events in the United States as of importance
unless, of course, they relate to the other
: ;
hemispheres.
;1
'
■"■*.
are

no

-

..

Hailed

1

mentators

in

by

the

Eastern

generally

as

and

press

of

one

the

reelected

in

his

native

r

State.

He

main

the

for several months.

on

he

reasons

could

of his

cause

Eastern editors

not

And

one

greatness, in the

eyes

'

an

able

man,

he did not

He

years or so.

great

a

become

of the

was

over

the

Bargeron

failure
and

e 1

again

of

Eastern col¬

my

and

-

fares

in

check,
to hold back tne tide of
socialism, he was frequently jeered at
by these Easterners, and generally portrayed as a mossback re¬
actionary.
.

No, he became great overnight when he threw his weight and
influence to the theme that we are global leaders and should be
preoccupied with world affairs, with our wealth and industry, to
the exclusion of mundane domestic affairs.
saw

parent to

Observing him closely,
slightest change in his stature. It was not ap¬

the

and I

satisfied

a tape measurement would have
there must have been a growth of five
inches, at least, because the Eastern propagandists said there was.

shown

me

am

change.

no

But

Then what is the result?
State.

His

He could not be reelected in his

own

to

be, Herman Talmadge, is an able man but
not as able as George and certainly without the experience. Al¬
ready the Eastern pundits are sharpening up their knives for him.
successor

He will not have the

for Europe that George has, nor the

concern

attitude of generosity.

same

of the

But he will more reflect the views
They are sturdy people, predominantly

people of Georgia.

of Anglo-Saxon stock.

They

quite entitled to their place in

are

the Union.

tionist.

that should

case

give

to the

pause

Senator Wiley, of Wisconsin, was long an isola¬

Through

two

Presidential

campaigns, the Republican
Presidential candidate passed the test of international mindedness
but the propagandists harped on the fact that his election would
bring Wiley to
witn

high place in

international relations. Finally,
1952, he became Chairman of the
But he had seen the light.
English lady and became a staunch internationalist.
a

Eisenhower's

election

of the United

area

growth factor. The Eastern "grav¬
ity" coal roads also have had an
impressive year.
I forecast that in the light ot
world conditions, the outstanding
rail group will be the transconti¬
nental roads, especially those with
major operations in ther South,
Southwest, West, and Northwest.
Their freight traffic is heavy and
diversified.

well

Their

our

-

ou

Roger W. Babson

e n-

age
wonc" jobs, the rails have

No longer

a

transportation monopoly, its road¬
are paralleled
by fast-mov¬
ing buses and autos. Huge trucks
beside
mile.

freight

In the

freight

distances

than

more

But two world

for

work.

World

ernment

the

World

in

War

it

a

up

of the rails.

position

to

rail

net-

stepchild
more

managements
.

of

years
,

The

were

handle

in

the

class

by

of

in

the

the

has

the

poor

authorizing

rate

heavy

freight.
senger

rails

sudden

-

Efforts
and

gadgets

and

increases

to

-

ity.

At the same time, good man¬
should enable them to

any temPorary interrup"

the

pas-

income

with

Those

Announced for 1957
ers

Management

an

stead, he attained greatness.

upon as

the Senate gadfly.

Well, the gentleman is

reelection back in his State and he is in trouble.

now

for

This

announcement

He has not been

nor

as

a

defeated yet and may not be.
But only recently the Young Re¬
publicans of the State denounced him. He is fighting for his po¬

litical life and he isn't

talking Europe and Asia to the voters.
is talking about milk, butter and cheese.
Tne

people

tinguished
parliament,

men

of

most

States

to the Senate

undoubtedly

want

to

He

is

promo-

permanently
roads

which
can

do

the

ler-Hilton

Hotel

in

Dallas, April

21-23.

Union Securities
(Special to The Financial Chronicle)

SAN
Robert

success

FRANCISCO,
W.

associated

Borden
with

has

Union

Corporation

of

Mr.

was

under

The

SECONDARY

New

Now With

run.

Goodbody Co*

will best be

DETROIT
RUssow is

Mich —William
with

Goodbody
Co., Penobscot Building.
now

are

construed

be
any

as

an

offer

to

ISSUE

MAY

15,

1956

their contribution to this national

as

104,500 Shares

The rank and file of them,
not concerned wit.i the influence whica a man at¬

on

be

help in getting

important committees by virtue of long service.

This

Frigikar Corporation

may

installation for the
State or assisting a few business friends and getting jobs for a few
patronage seekers. But the main thing is to keep attuned to the
spirit and thinking of the people.
an

airport

Two veteran Senators

now

or

an

army

in retirement in

Common Stock
(50tf Par Value)

Washington, Tom

Connally of Texas, and Ashurst of Arizona, will tell you that.

With Securities Inv.

Joins

Goodbody Staff

Price $5.00
per

(Special to The Financial Chronicle)

(Special to The Financial Chronicle)

DENVER, Colo. — Charles A.
Jack, Earl E. Lewis and Wesley

CHICAGO, 111. — Randolph H.
Pomeroy has become affiliated

Olson have become affiliated with

with

Securities, Inc. Mr. Jack was for¬
merly with Honnold & Co. and

La Salle Street.

(Special to The Financial Chronicle)

1

been added to the staff of Shelley,
Roberts
&
Co., First
National
was

McCleskey

(Special to The Financial Chronicle)

CORAL GABLES, Fla.—Do^H
B. Sittman has joined the staff of
J. R. McCleskey, Inc., 5000 Orduna.

Share

North
The Prospectus may be

or

brokers

as

obtained in

any

State in which this

announce¬

from only such of the undersigned and other dealers

may

lawfully offer these securities in such State.

(Special to The Financial Chronicle)

CHICAGO, 111.—Meade C. Har¬
ris

DENVER, Colo.;—Inez Hjort has




Co.,

With McGhee & Co.

Shelley, Roberts Adds

Joins J. R.

&

ment is circulated

Hicks, Newton & Co.

Bank Building.
Miss Hjort
formerly with Rogers & Co.

Goodbody

has

become

McGhee &

affiliated

with

SOUTHWESTERN

First Securities

Two With

SECURITIES

CORP.

v

Henry Montor

A. G. Edwards & Sons

and Theodore Weinstein

have

joined the staff of Henry Montor

Salle Street.

Inc.,

134

South

,

i

CHICAGO, 111.—John W. Gard-

Associates,

INVESTMENT

Minor, Mee & Co.

Corporation

(Special to The Financial Chronicle)

rer

MUIR

COMPANY

Co. of Cleveland.

La

sell,

of these securities.

represent their States.

tains
a

to

offer to buy

dis¬

send

to speak. And they undoubtedly take a pride in the
distinction they acquire by service. But they want those Senators

however,

circumstances

R. L. Stewart & Co.

become

Securities

York City.
formerly VicePresident of R. H. Moulton & Co.

Borden

offering is made only by the Prospectus.

so

to continue to

no

Calif.—

(Special to The Financial Chronicle)

long

demonstrated by how well it con-

solicitation of an

an¬

meeting in 1957 at the Stat-

In¬

up

Texai
Bank¬

Association will hold their

nual

.....

in

growth

Meeting

DALLAS, Tex. — The
Group of the Investment

be

promote

door-prize

out

longer-term

Texas IBA

type

best, and with the greatest profit,
win

in

any

Robert Borden Joins
to

commodity

stick to doing what they

will

from

sharp expansion in business activ¬

activ-

continues

tions will not prove

profitable.

are

years,

other

...

good

a

ICC

of

"bread-and-butter"

ity

.

the physical property

They

out

reasonable

to

They

benefit

capi¬

.

to

placing the

several

the

rails

during the past few

I, the gov¬

sound condition.

II,
,

building

showed the

necessary

job of

War

completed

wars

strong

a

found

over

bond

Certain Rails Sound

•

necessity

Finally,

the

passengers

tremendous
times the best

five

rail speed.

In

managements
have
in cutting down un¬

mile

cars,

air,

income.

to

be

prove

finances, also,

high-interest

lifted

will

trends.

Corporate
reorgan¬
izations, reduced inventories, and
the dropping of small, money-los¬
ing branch lines also have boosted

move over

at

the matter of

rails,
substantial

with

investments.

position

a

talizations.

beds

had

recapture

transportation.
In

wieldy

r

"make

By

to

succeeded

managed to survive.

take

however, that these efforts

aggressive

strictions

and

I fore-

securities

sound

in

of

could

which

after

ultra-

?herebus,Vneess tosf toXfforms ride
0Ut
tion

ex¬

covered;
despite union

race

and

passenger

by

fail

those

holdings of land, mineral rights.

the

that

so

penses

c

cast,

especjaiiy

agement

rates

re

into

signaling

^

Protectlrd- .Management, in most
cases,
is
improving.
cases'some
is"
imP™ing.
I forecast
transcontinental

that

in

Overnight he ceased to be looked

finances

strong, their prior liens well

are

Senate Foreign Relations Committee.
He married

States has

the

freight

rail system

,

George's is not the only
Eastern pundits.

i

developing
modern high-speed trains.

■will

be

Roosevelt

f

in¬

to

life

new

/business
v

..

classification yards and signaling

put

Southern

never

highways for

X?r±h^f„hKeK

panding oper-}
ating e x-

I

.

despite

Indeed, for years, through the Roosevelt era when he was a
stalwart, later Chairman, on the powerful Senate Finance Com¬
mittee, in those years when he, along with Senator Byrd and other
hold

carl useSofS'elecmonicsCin ireighl

o£

lines;

crease

But

the Chairmanship of the Senate Foreign

struggling to

taxation

u

the road's

was

Young blood is currently lacking in most rail managements. In

this

will

heavy

finance

Relations Committee and accepted the thinking of the Eastern
cult,

stalwarts,

be

can

Does

way.

truck and bus

tim
Carlisle

,

-

Despite

the

•

always

book.

my

great man in the eyes

a

leagues until he took

in

man

;

as

competing

and

intimately for 25

fortune
r

railroads

the rails to

.

....

ill
their

v

growth of the South¬

V

was

commentators, his inter¬
national statesmanship.
I have known the Senator more or less

still considered

are

that

mean

of tLe

reelected

be

and

survive

to

recapture, in

ultiseveral
cases,
however,
virile
mately disappear from the Ameri- managements have succeeded in
can scene?)
V
/;;
; cutting
costs, through mechanioi-ii
zation ■•.'and automatic' controls
Rails Still Necessary
New'diesels otaJTteck'ftSrirt

handwriting on the wall, or his friends saw it
for him, so he reluctantly decided not to run
again after having had an active campaign
going

ability of railroads

not

material

and

principal factor in the
impressive gain shown by the
roads
operating in that region.
There is nothing in sight to in¬
dicate an end
to
this
superior

sharp expansion in passenger and
a
rather undesirable stepchild
in/freight traffic which followed our
this country. Abused,
browbeaten, entry into the war. >
discriminated against—they seem
to be
on
the receiving end of
• Cost-Cutting Progress
Ahrown

the.

saw

ern

been

•

Railroads

whatever

com¬

greatest

the

United States Senate, if not the
greatest, the fact is that George could not be

men

will

labor

■

The faster

spite of cost-cutting
efforts, business lost to competing forms of transportation,
and outstanding rails will be the transcontinental
roads.

experience

should give

rails

total

costs.

By ROGER W. BABSON

Economist discusses the

By CARLISLE BARGERON
The

trols

Outlook for Railroads

:

*

15

Beebe, Guthrie & Lavalle

,

A. M. Law &

Harold S. Stewart & Co.

Co., Inc.

T,

1

16

The Commercial and Financial Chronicle

(2364)

has shown steady
the years largely
policy of adding

company

growth
due

YOU

THE MARKET.., AND

to

a

individual

small

with

chain,

By WALLACE STREETE

banks in
a

Stocks
tom

in

finally bumped bot¬
this

who

those

had

to

struggle

better
the

in

units

the

areas

to

accent

port level around the 490

area

on

criticizes

where there is

*
•

-u

•

-:

*

v.*

*

In the process

-•

-

•

the industrial

dipped under the 500

average

line for the first time in two

months,

wiped

which,
all

out

since

early
rails, which

obviously,

the

in

progress

March.

The

were quietly
posting highs for the average

for

more

than

a

weren't

tury,

dividend rate. This stems

largely from the fact that
large equipment outlays are
ahead when the carriers shift

in

the

to

new

jet transport era

shortly.
*

A

quarter cen¬

spared

were

the annual

*

;••••;•. .-v.

case

*

*

where low dividend

the payout might be the principal

moments of pressure

but their
average only fell back to the
area that prevailed a
couple

reason

that

enthusiasm else¬

where hasn't

Motors

definitely out
of favor as production cut¬
backs continue long after a
strong spring upsurge in new
car
buying had: been pre¬
dicted. Except for Studebaker
Packard, around which high
hopes are held of government
intervention to step up de¬
fense brders and pull it out
of a rut, the usual rule was
were

yet centered on
it could be Sun Oil. Despite for the Big Three and the in¬

good increase in profit last dependents to appear at new
Sun has yet to carve out lows together when the mar¬
Rail Values
ket was heavy, a rare show of
a 10-point range which would
Moreover, the market be a minimum for an issue unanimity.
%
*
*
analysts culling through the selling in the 70 bracket. Even
a

of weeks ago.

year,

rail section

were

still able to

recent

rumors

merger

have

as

for the downturn of automobile sales and
generally.

cause

threat to business

Building equipment firms,

President Harlow H. Curtice

of

General Motors reviewed his esti¬

of

mate

1956

sales

car

passenger

by the automotive industry, May
this

year

still

be

the

third

the

a

preced¬
ing Wednes¬
day's dedica¬
ence

tion

demand

Harlow

Curtics

H.

the
for

AC

will

year

exceed

not

5,800,000" in the domestic market.
The
new
estimate
compared
with Mr. Curtice's January esti¬
mate
of
6,500,000 passenger car
sales

in

Trucks

domestic

the

sales,

he

running at

are

about

far

from

his

current

realized,

estimates

i
*

up

likely than not to be included
Sun, being largely a familyin any list of prime invest- owned
enterprise, doesn't
ment-grade
issues, had its even bother to make the
fanciers, particularly s i n c e favorable adjustments that
the carrier has been extremely ether
companies do to enactive both in modernizing its *
hdqee their results. The com¬
equipment and in locating pany reported earnings of
new businesses
along its lines. $4.72 last year against $4.17
The concrete effect took the in
1954, not even bothering to
form of records last year for
adjust the earnings for a 6%
operating revenues as well as stock dividend paid last year
profit. 7 |
which
would have reduced

be

*

*

*

plans to spin off its gypsum
and
paper
operations. The
company
organized a new
subsidiary^ Bestwall Gypsum

policy is not reversed
soon,
he warned, business gen¬
erally may decline from the cur¬
rent
level, which if maintained

Co., to take over

Product

.

of its

several

researchers

pointed out, C. & O. which

operations and will dis¬

Celotex, too,

vorably
since

ranks 16th in

mileage

among

the nation's roads is outclassed

profit-maker only by the
chip lines, Union Pacific
and Santa Fe, and so far this
year their
leadership is in
jeopardy. A good share of this

as

a

eyed fa¬

quarters,
important
and

in¬

equipment for which
from industrial appli¬
is expected to more

any moderate de¬
cline in demand from residen¬

Transamerican Awakens
Transamerican

some

are

sulation

than

in

was

among
its
acoustical

lines

1954 earnings further to demand
$3.93 and pointed up the in¬ cations

crease.

thesq phases

tribute the stock to its holders.

the

As

bridge

tial construction. The firm is

actually

starting to reach the payoff
stage
of expansion plans only
erudite
investors,
following
completed last year by a new
enactment of a Federal bill
management. It also helps
aimed at breaking up some of
that the company sells on a
the bank holding companies
is due to the rapid growth of
more
favorable
statistical
and a good portion of it was
its
merchandise
traffic, on
basis than other building ma¬
which the line has concen¬ pointed at Transamerican.

blue

came

in

favor

with

at

least

terial firms which could be in

The

seeming contradiction ac¬
part a carryover from the in¬
ence
on
soft coal. It hasn't tually was a belief that the different
performance record
been any hardship, naturally, nonbanking parts of this hold¬
prior to the new management.
that the coal
business has ing company, when spun off,
Libby, McNeill & Libbv,
will have a greater independ¬
been picking up both for ex¬
which successfully fought off
ent value than is reflected in
port and for domestic use.
a
proxy fight last year, has
the price of the holding com¬
Marketwise, the stock' has
been able to show some good
stock itself. Not the
done little to reflect the rapid pany
a
wholly gains in its operations, which
strides made and has been least of these is
could have been spurred to a
available at a yield of well owned subsidiary, Occidental
measure
by; the realization
Life
Insurance
Co.
which
trated

to

lessen

its

depend¬

above 5%.

ranks

Special Interest in Airlines
Airlines
favor

are

group

in

A

among

insurance
*

another out-of-

that is held

importantly

domestic

*

the

outfits.

that there
faction.

along
more

specialized

bank

was

Then,

consumer

*

,

holder dissatis¬

demand is helping

mightily,

for frozen

by most of a gross of offices serving
them this year which would
nearly three quarters of a
be
no
great revelation to hundred communities. The




article
time

do

particularly

foods, which cur¬

not

coincide

necessarily
with

"ChronicleThey
as

those

will

result

more

in

liberal

<

National

Gross

a

about

of

billion. A

$400

policy

also

would

tend to support

long-range expan¬
by industry, needed

sion programs
to

keep

growing

the

with

pace

over"

population, he said.

statement

tion

people are able to decide to
or delay, I think that
the restrictive money policy
now,

them

to

defer, just as it
industry at times to defer

causes

capital

certain

undertaking

in¬

(9)

have

would

that

evidence

no

the

indicate

fight

necessity

to

of inflation," he
think
they
are
non¬

pressures

said.

"I

existent
Mr.

of

seen

.

also denied

Curtice

any

Because
than

has

GM's

closely

has

never

the

of

end

to

tion

as

GM

currently

55%

of total

much.

to

was

demand

other firms

some

had

not

production

geared

that of

cut

back

The

it

produc¬

result

is

that

is

accounting for
produc¬
the retail demand

automotive

tion, but "at
level, our penetration of the mar¬
ket so far this year is not 55%,
it

52%."

is
Dr.

Lawrence

R.

Hafstad,

GM

Vice-President and director of the

no

described

projects

"essentially
study
projects for observ¬

as

«.

ing progress in this field, rather
than moving into this field in a
way
to compete with other or¬
ganizations already in it." GM, he
the

agreement with

an access

Atomic

and

is

also

Energy Commission,
working with
the

Detroit

Edison

breeder

reactor

Company
—

GM's

on

its

only two

activities.

Morton Globus Dir.
Morton

Co.,

Models

Globus

members

of

of

Dreyfus

the

New

&

York

"I
recognize that as being a
negative factor in the sale of
motor cars, and therefore at each
opportunity I define the General
Motors policy on the basis that the
changes that will take place for
1957

continue

will

tionary,

not

be

to

evolu¬

revolutionary,

and

that the introduction dates will be

approximately the same time for
the

Nov.

he

models

1957

models

in

—

1,

plus

as

other

for

minus

or

the

words,

1956

about

10 days,"

said.

Answering

questions

from

ap¬

250 newsmen from
all parts of the United States and
Canada, Mr. Curtice also said:
General Motors car dealers
the main operating on a

(1)
"are

in

profitable
levels

they

(2)

basis,"

are

although profit

somewhat

lower

than

Morton Globus

Stock

Exchange, was elected on
May 9 to the board of directors of
Starrett

is

also

a

Corporation.
director of

Corporation

and

Mr. Globus
the Se^grave

BSF

Company.

were a year ago.

Motors

General

wish to

see

any

does

not

would remain

R. J. Ozol Branch

other automotive

of

of the author only.]

At

rumors

the firms go out of business, but even
presented if this should happen the industry

those
are

at

Motors

produced."

more

earlier than those last year.
New

in

use

only 2% of their yearly supply—
better than the goal of 3%.

introduction dates

of

and

a ques¬

model year, cars still in
the hands of its dealers averaged

"revolutionary" 1957 car

models

possible

1955

atomic energy

."

.

General

"over
the

said, has

vestments," Mr. Curtice said.
"I

reply to

their

Staff, said the firm
projects in the atomic
energy field except two which he

"If

causes

in

was

about

railroad locomotives.

has

buy

the

GM Research

Purchases

Deferred

billion. Mr. Curtice an¬
$1 billion figure in

$1

nounced

too; increased proximately

high regard by the statisti¬ holding company is Marine
rently account for about a
cians but not
overly attractive Midland which operates sole¬
yet to the public. To some of ly in New York, but never¬ quarter of the firm's sales.
the forecasters, record
| The views expressed in this
profits theless has a dozen units with
could be recorded

the

If

their 1955 levels of
operation.
>
(7) General Motors' capital ex¬
penditures in 1956 will be "slightly

thoroughly explored for whatever
purposes they may fit best." This

Mr.

may

exceeding

are

Curtice said, 1956
considered a very
good year," exceeded only by 1950
and
1955—record
years
for the
It would
be
slightly
industry.
better than 1953 and considerably
"still

—

his

annual rate of

not

including
Allison and
Spark Plug Divisions — are
some

Electro-Motive,

January.
(8) Both the free piston and gas
turbine engines are "being

currently

said,

an

950,000,

market.

January estimate of 1,000,000.
If

plans

expected to continue operating

profitably and
the

this

cars

no

(6) All General Motors divisions
are

ap¬

that

pear

near-

was

an

(5) General Motors has

that

would

its employment on a
basis. Some addi¬

to enter any additional fields.

Mo¬

Center

"it

ing

Technical

tors

some¬

a

week

when the industry
all-time peak.

ago

the

of

General

General

1957
carry

Current GM employment is with¬
in about 50,000 of the total a year

confer¬

news

the

public

tional layoffs are planned for this
week but they will be "not large."

history.
told

maintain

40-hour

industry's

He

the

will

cars

material
"can

of rising

costs,

that

assume

Motors

to

in

best

Because

labor

higher price tag."
(4) Despite revised production
schedules, General Motors hopes

15, but said
can

(3)
and

what

failed to stir up much ado.
with some better ap¬
too, were shunned for the
The stock pays only a dollar
parent values than among the
most.
But unlike the
solid better than 1954.
The GM president criticized the
high-priced industrials that, dividend, making a yield of front in the auto section, a
have performed so well up to less than 1 Vi %, but lards it
"very I restrictive" current credit
special situation here or there
policy
of the
Federal
Reserve
here. Chesapeake & Ohio, for with stock payments.'
was
able to kindle interest, Board as a
major factor in the
%
*
%
one, which was once
more
downturn
of
automotive
sales.
including Certainteed, which
come

5,800,000

at

and, in asking reversal in policy,
Federal Reserve's "very restrictive" credit policy

major

a

output

established

told at class with
earnings more than
meeting this week doubled in the last decade.
that there has been no con¬
Sinking Motors
sideration of a change in the

Airlines holders

Car Sales Estimate

estimates

rather than 6,500,000 units,

market

for the industrial average.

President

growth potential than

more

Thursday, May 17, 1956

.

rv

Motors

General

its

desperately to get seats dur¬ centers. Yet the issue has
after a month of indecision ing the Florida season. Prob¬ been available at a 5%
yield
that came to a climax with ably the biggest drawback to which is above
average judg¬
half a dozen losing sessions in market progress of the air¬
ing by the yields offered by
a row. It was
largely a tech¬ lines is the fact that dividends other bank issues. The com¬
nical performance, widely re¬ have
necessarily been con¬ pany is on the verge of forg¬
garded as a testing of the sup¬ servative. In fact, American ing into the $2 billion asset
week's

Curtice Cuts Passenger

over

♦.

highly competitive.

LINDEN,

N.

J. Ozol &
branch office at"

J.—R.

Co. has opened a
401

North Wood

Avenue.

Volume 183

v

Number 5534

.

.

.

(2365)

The Commercial and Financial Chronicle

17

■wyvsw^twy8 »I* 9 M <

%4Bm'

.

m

toward Intercontinental TV
An important advance has been made in microwave

signal steady for highly reliable communications.
Thus "over-the-horizon" transmission

radio! It's called "over-the-horizon" transmission.
Until

recently, microwave

was

limited to line-of-

sight distances, signals being beamed directly from
one

antenna

knew that

beam,
new

or

a

ri£ht at another. However, engineers
small part

of the signal "drops off" the

is "scattered" in the troposphere. A whole

concept was

visualized, requiring

new,

specially-

far

out

Huge

over

new

ter," and




a

new

span

truly long distances

day when TV
and

..

the

J a big step

toward the

For telephone

oceans.

telegraph, facsimile, and telemetering, great

benefits
IT&T
wave

may cross

promises

can

be made available

engineers

were

today.

the first to introduce micro¬

communications, 25 years ago.

And, by the de¬

velopment-of unique equipment, they

designed equipment.
Now, with the

to

technique, the signal is beamed

the horizon with tremendous power.

"high-gain" antennas capture the "scat¬

have made

a

major contribution toward

MB -mmm

■mom

making "over-the-horizon" microwave

commercially practicable.

special IT&T electronic system keeps the
INTERNATIONAL TELEPHONE AND TELEGRAPH CORPORATION, 67

Broad Street, New York 4, N.

Y.J

N

The Commercial and Financial Chronicle
18

Thursday, May 17, 1956

.

..

(2366)

nouncement, the purchase of the

presented

stock by

present directors assures
the continuance of the former pol¬

cerned

and

$taff members of the Madera

icies of the bank.

and

Scotia banks will be retained

past seven years, and is a
President
of the Savings

Bank Women of New York.

News About Banks

*

Albert

NEW

BRANCHES

OFFICERS, ETC.

*

*

.

has

Fay

been

contemplated,

pro¬

Assistant Branch

personnel

Man¬

of

ager

CAPITALIZATIONS

the

William Hecker has been ap¬
LeRoy W. Campbell has been
promoted from Vice-President to pointed Advertising Manager of
Executive * Vice- President • of' Sterling National Bank & Trust
Company
of
New
York.
Mr.
Chemical Corn Exchange Bank of
it

York

New

was

American

n-

a

nounced

with the
Management Associa¬

formerly

Hecker

H.

M

York

r.

Campbell con¬

The

since

office

the

directed

the

b

a n

opened

LeRoy W.

k's

Campbell

of
St.

at

The

8 a. m. to
banking day. It
Bowery's fifth oi'fice, and

8 p. m. on every

City.

tnroughout New York
Mr. Campbell began his

career

with

fice system

first

the

bank¬

investment

an

The

is

office

new

of

mutual

a

savings bank, it is stated, opened
in Harlem since 1908. A preview

ing firm in 1907. In 1921 he went
with City Bank & Trust Co. of of the uptown area, for the press
Hartford, Conn., and became its —and trustees, officers and staff
President in
1924.
In 1929 Mr. of The Bowery was held on May
Vice-President.

as

:

*

•.

A

$

office

York

of

Plans, it is reported, are under
for a merger of the First Na¬

tional Bank of Cedar Grove, N. J.,

&

Es¬

of Newark,

ac¬

Newark

the National

with

Co.

Banking

cording to the Newark "Evening
News" of May 8 which indicates
that announcements to this effect

Jack, Borough President of Man¬
hattan
and
Earl
B.
Schwulst,

According to the "News" the di¬

4

8

to

m.

p.

President of The Bowery, cut

the

that launched

ribbon

new

Dorothy Gordon,

Miss

fice.

made

were

Meier

A.

by

Cowan.

G.

Robert

and

the

rectors of both banks will recom¬

of¬

mend

rep¬

stockholders

their

to

that

month

they

next

approve

a

the recently com¬ resenting the Heights Business merger agreement under which
and
Chester
W. Cedar Grove stockholders would
Third Avenue Build¬ Association,
ing, corner of 44th
Street, in Schmidt, Vice-President of The receive four shares of National
Manhattan.
John T. De Palma, Bowery, who will be in charge of Newark stock for each share of
Assistant
Vice-President,
heads the new office, also participated. their Cedar Grove stock; National
the staff.
Chase Manhattan now A
feature
of
the
opening pe¬ Newark
stockholders
for
their
(May

has

in

17)

pleted

in New

offices

94

York City

relates

riod

including 36 in Manhattan, 35 in

To

counts

*

The

*

*

of Peter
Vice-President

J.
Cuddy
as
a
of
Manufacturers Trust Company of
is

York

C.

Horace

announced

Flanigan,

Mr. Cuddy began
as

by

President.

his banking

ca¬

creditman with National

a

to

accounts.

new

opening

savings

new

ac^-

$5 or more at the new
opening day—or up to

of
on

including May 18—The Bow¬

and

appointment

New

all

office

Brooklyn.

reer

gives

ery

check for $1 which the

a

to

community-betterment"

will

in addition to the

a

sistant Vice-President in 1949. He

project, completed by the Bowery
Savings Bank.
The building oc¬
cupies an entire block front at

is

West

100 Park Row, New York.

ment,

#

*

Trust

Irving
election

of

*

of

May

on

olas

New

14

the

Associated

with

the

bank

since 1931, Mr. Murphy heads the
Joan
administration
division
in

tions

the

bank's

loaning

func¬

centered and in that

are

*

*

"Portrait
of

new

of

the

*

68-foot

Building,

is

mural

the

which

by

William

the

G.

famed

Palmer,

interdependence

the

it
of

important American indus¬

tries such

steel,

Mobil

York, located at
Avenue
and
42nd

Painted

muralist,

many

Socony

New

Lexington

depicts

the

in

as

tobacco, oil, iron and

chemicals,

paper,

equipment
Robert

S.

electrical

merchandising.

and

Emison,

Vice-Presi¬

dent, will be in charge of the

new

*

*

of New York has appointed

W. Lawrence

Marsh

Vice-President.

formerly

an

an

Mr.

Assistant

ficer.


http://fraser.stlouisfed.org/
\
Federal Reserve Bank of St. Louis

Assistant

Marsh

Trust

project
*

the

built

in

*

"News"

The

Of¬

stock

"The

adds:

exchange and dividend would in¬
crease
the outstanding stock of
the National Newark from 260,-

of

Savings Bank

New

it

York,

May

on

Trustee

a

of

the

14 by Robert M.

the
is

a

director of

a

Mr.

number

other

companies in, or associ¬
with, the shipping industry.

ated

He

is

a

member of the

Board

of

Managers of Seamen's Church In¬
stitute of New York and

School

Manlius

of

New

at

a

Trustee

Manlius,

Francis
of the

S.

Bancroft,

Excelsior

New York,

that

President

Savings Bank of

announced on May 11

Marie

J.

Darcy,

Personnel

is resigning from the
bank, effective as of the end of
May. Miss Darcy has been, asso¬
ciated with the bank for the past

Officer,

17 years.

Prior thereto, she served

Special Assistant to the Ma¬
jority Leader of1 the N. Y. State
as

politan
tional
en.

at.

Miss
as

N.

Darcy is currently

Chairman of the Metro¬
Y.

Group

of the Na¬

Association of Bank Wom¬

the

She

has

been

a

member

of

Employer-Employee Relations

Committee of

Association of

the

Savings Banks

the State of N. Y.

The

communities.
in

Bank

Madera,

in

$60,000,000.
The bank's
changed to the Gallatin

of

group

of

Eberly,

who

heads

tia, established in 1910, had total
deposits, it is said, of more than
million

as

is

owners,

new

County

Fayette

a

and

pital Association,

native
is also

Director of the

a

Uniontown

Greater

Industrial

the Fayette County Plan¬
ning Commission, etc. Tne pres¬

Fund,

officers

ent

Paul

are:

President;

John

A.

President;

John

G.

Malone,

Buck, ViceAlex, VicePresident;
W.
K.
Hamer,
and
David McConkey, Assistant VicePresidents; R. N. Shaffer, Cashier:
L.

W.

Weaver

Assistant

W.

and

Cashiers;

W.

J.

Price,
Murin,

A.

Auditor.
*

Directors

*

Savings
voted

of

of

May

on

rate

of

ings

accounts

9

interest

and

increase
on all

in

offices

Western

Los

the

Angeles
metropolitan area. Si¬
multaneously, J. Arthur Taylor,
Vice-Chairman
of
the
bank's

senior
California,

and its

directors

of

board

in Southern

executive

announced that First Western will

annu¬

rate will be
V.

*

Trust

National

&

Calif.
increased
its
capital,
effective
April 27 from $2,160,000 to $4,320,000. Following the payment of
dividend the bank
stockholders the

stock

100%

offered'

the Michigan Na¬

California.

Savings Bank of San Diego,

a

*

*

*

First

The

head¬

administrative

the
sav¬

Zwiener.

As oft May 2

the number of

19

brings to

First

office is in the

new

district of Los Angeles

Crenshaw

quarters for Southern

iy2%

%

The

rectors.

Western's

Kenneth

*

on

111.,

new

President

by

May 14, it was an¬
nounced by T. P. Coats, Chair¬
man
of the bank's Board of Di¬
system

Chicago,

from

statewide

its

in

office

78th

the

and

to

Trust

and

Company of San Francisco opened

Trust

paid

The

ally to 2%.

'''I'''

*

Bank

Western

open its Los Angeles main office
shortly. It will also serve as First

*

Harris

Bank

*

*

First

$8

and assets of over
of the same date.

$7,500,000

the

President of the Uniontown Hos¬

Sco¬

Bank of

National

First

The

its

to

tional Bank of Lansing, Mich., en¬

right to subscribe for 43,200 ad¬
ditional
shares
of capital
stock

larged its capital to $7,500,000,
having increased the amount from

share for

C. Davis

Samuel

Vice-President

and

Union

Louis

St.

was

a

stock

of

April 25.
*

*

*

The Toronto-Dominion Bank

elected

director

a

Trust

(par $10) on the basis of one new
each 10 shares held as

a

of

Company

holders

offering

is

Ont.,

Toronto,

rights

subscribe

to

of

share¬

for

500,000 additional shares of capital
stock at $32 per share in Canadian

Newark's

jj:

tor
sji

(N.

President

a

officer

an

He is

years.

for
a

the

direc¬

Oil Company,

Houston

Tex.,

is

and

identified

*

Federal

Governors

System

Reserve

of the

reports

May 1.

on

Commerce.

established in the former location
*

*

Bank

National
has been

of

undisclosed

residents

of
for an

The

group,

amount;

a group

which is headed by Orville Eberiy
of

Uniontown, it is stated is made
entirely of present members of

up

the

bank's

board

The

advices

state

involved

able

and

from

directors.
the

stock

transaction

various

was

charit¬

foundations

by the Mellon family

sale of
it is added is part of a

Pittsburgh.

stock

of

that

educational

established
of

the

in

purchased

which

The

enables

the
pro¬

foundations

to make contributions out of cap¬

ital
to

as

Mr.

well

as

The

Uniontown, Pa.

purchased by
County

Fayette

income.

According

Eberly, who made the an¬

bank.

rency

approved the merger of the First
National Bank in
Madera,
Cal.,
and

The

Scotia,

First

Cal.,

National

National

into

Bank

of

shares are not being of¬
addresses

States

United

or

Bank

of

Crocker-Anglo
San

Francisco,

to
the
completion
of
formalities, it was an¬
jointly on May 9 by Paul
E. Hoover, President of CrockerAnglo, A. J. Grasrroen, President

in

institution, and A.

Murphy, President of the Scotia
Directors of all three banks

concerned,

it

the

principal

is announced,
merger

and

the

territory or

cisable
and

though not exer¬
are transferable

which,

rights

by them;

can

be

that rights

sold.

expected

is

It

will be traded on one
stock
exchanges
in

more

or

provided
for
subscription

being

are

the

month

it

have

transaction

will now be

of

April,

$1,000,000 was transferred
by the bank from tax paid reserve
and
$2,000,000
from
undivided
profits to rest account, bringing
the total of the latter to $33,000,1956,

000.

The

sale

of

shares to be issued

the

500,000

will result in

capital account of
in rest account of
$11,000,000, bringing capital ac¬
count to $20,000,000 and rest ac¬
count to $44,000,000.
The purpose
of this issue,
it is stated, is to
increase

in

$5,000,000 and

nounced

approved

any

shareholders

such

necessary

bank.

in

are

possession thereof, but we quote,
"there

subject

S.

whose

shareholders

to

an

of the Madera

S. Securities

Act, it is announced, and in con¬

During

of the Cur¬
Washington, D. C., has

Comptroller
in

14,
reg¬

Canada."
*

*

*

Gallatin

of the

control

majority

the latter

of

that

made

is

Announcement

Aug.

is not

issue

istered under the U.

recorded
The Board of

is

rights

new

X

that as of May 1 the Trust Com¬
He was 68 years pany of Georgia, of Atlanta, Ga.,
of age. Press advices also indicate, a State
member, merged under its
that he was a former President
charter and title with the
East
of the Businessmen's Association, Atlanta Bank of
Atlanta, an in¬
now
the
Summit
Chamber
of sured nonmember. A branch was

died

The

1956.

fered
$

the

for

date

sequence,

with various business activities.

Mortgage

J.)

director and
one
of the founders (in 1923) of
the Citizens Trust Co. of Summit,
and

& Finance Co.,

of the

Houston,

Siebert,

Summit

the

been

has

and

deposits past, twelve

its

t-

C.

William.

were

resources

and
$242,373,082." ■" ""
$268,529,636

of

of

$50."

*

1

Sco¬

and

St. Louis, Mo., on May 10 at a
meeting of the company's board currency, A. C. Ashforth, Presi¬
It is added that "the
Cedar of
The
directors, it was announced by dent, announced on May 12.
Grove bank was founded in 1927. David R.
Calhoun, Jr., President rights are being offered on the
As of April 10, its resources were of the
company.
Mr. Davis, for¬ basis of one additional share for
$10,121,529 and its deposits $9,- merly an Assistant Vice-President, each three shares held at the close
Expiration
534,492.
On the same date, Na¬ joined the trust company in 193b of business May 11.

is

*
*

par

a

while Cedar Grove's

value of $25,

York.
*

has

stock

Newark

tional

City

Catha-

President.

bank's

National

Madera

National

established

National Bank in January, 1955.

to

of

announced

was

present holders of
Newark
stock.
Na¬

dividend

of the

California

First

effective July 1, it was announced

gram
was

shares

20

held.

tional

Steamship Lines, Inc.,
elected

been

Dollar

serving

City Bank Farmers Trust Com¬
pany

has

Senate.

office, which opens May 21.
*

the Barber

of

America"

is

non-FHA

or

Edward J, Barber, President of

Barber

*

First National City Bank's

office

Street.,

housing

Ave¬

-3

it

that

stated

Nich¬

St.

Edgecorr

Harlem since 1938.

rinb,

dominates the main banking floor
of the

is

insured

ca¬

pacity is senior loaning officer.

title

It

to

non-subsidized

George A. Murphy to

Senior Vice-President of Irv¬

which

145th Street from

nue.

its Board of Directors. Mr. Murphy

ing.

new

Avenue

first

Company

announced

York

a

11,

was

name

be changed for 3,000 shares of out¬ $6,000,000, as a result of
dividend! of $1,500,000.
standing Cedar Grove stock, and
13,000
shares
representing
the

wallet
depositors. The bank
is located in a residential housing
gift of

1929, was appointed an Assistant
Secretary in
1941, and an As¬

presently assigned to the bank's
Administration
Depart¬

each

for

share

one

stock dividend

a

any

to such

Branch

of

get

would

part

depositor fcan make payable
religious, charitable, fra¬ 000 to 285,000. This addition of
ternal, civic, or other non-profit 25,000 new shares would come
organization.
The
"check-for- from the 12,000 shares to be ex¬
new

City Bank of New York. He joined
Manufacturers Trust Company in

is

Dec.

539. With the an¬
April 30 of a new

-

35

National

on

on

Offices,
the
Crocker-Anglo
system will number 54 offices in

711

Queens, 15 in the Bronx and eight
in

Uniontown,

imately

Mr.,

way

sex

addition

Bank, or¬

Second

the

as

page

this

Jan.

Cherry Chase Shop¬
ping Center in Sunnyvale, and the

000 and total resources of approx¬

<>'■

"

Eberly

Mr.

Bank,

issue,

of
our

4

in

to

office in the

vided profits of moire than $3,000,-

*

*

*

Hulan E.

from

10

New

today

business

for

opens

the

of

Bank

Manhattan

Chase

*•

\

branch

new

Plains,
Avenue,
May 12
to visit
day.
J.

the
respective
Presidents of the banks, viz. G. F.

Chemical Bank

joined

Campbell

office.

member of

a

as

Jan.

on

1934, had on Dec.
with
capital
of
$100,000
31, 1955, it is indicated, total de¬
opened for business in M a r ch,
posits of more than $9 million and
1896.
Today, it reports a com¬
total assets exceeding $10 million.
bined capital, surplus and undi¬

Ungemack,
Assistant
Treasurer, is in charge of the

from

service

savings

of¬

White

211

at

provide complete

will

office

new

of

Y.,

nouncement

tia

of

known

and referred

year

1895

branch Purdy

Street

145th

on

Company

Irving
Port Chester, opened on
with the public invited
the
bank
during
the

N.

Bank

new

a

Nicholas Avenue on May 12.

expansion of
branch

Savings

Bowery

York

New

has

County

The

for

29

The Gallatin National

renovated

and
of

dealing

Vice-President, will

serve

Crockerlife
Mr.

of the Madera institution was first

with- made

v..

Bank

office

Trust

&

said.

*

*

participate in

William E. Howard,

National

latin

ganized

enlarged

Trust

*

*

*

Division

where,

The

drive-in

Principal Executive Assistant.

charge of the
Metropolitan

1950, he

on

Lundon,

Mr.

in

tinues

enlarged to $900,000 as

*1;

been

Crocker-Anglo organization

will

and

the Board of Directors of the Gal¬

stock.

new

Deputy Controller.
Lundon was promoted from

ert

continue to

by the sale of $90,000 of

of May 4

of ^he

Trustees

Savings Bank of New
May 14 appointed Rob¬

Bowery

Helm, Chair¬
man.

capital of the Peninsula National
Bank of Cedarhurst, Long Island,

*

*

of

Board

The

years.

Mellon Bank

the

$$810,000

from

Increased

has

in the

con¬

Officers

ratification.

with* the Hoover said. The proposed merger

Bank

Pittsburgh,

of

it

many

N. Y., was
*

by

May

which

-'V.,,'V-v'-

.•.'»r.r

tion..

on

11

Harold

was

Company

for the past eight

years.

National

Mellon

Mr. Fay has been
with the Long Island

Trust Company

its

continue

in
on

to

for

The bank- Anglo's pension plan, group
close cor¬ and other personnel benefits,

respondent relationship

Jr., President.
associated

said, either
membership

he

of directors.

also

will

No changes are

in

or

board

the

Long Island Trust
Company's Great Neck Branch, it
is announced by Fred Hainfeld,

Bankers

and

REVISED

E.

to

moted

CONSOLIDATIONS
NEW

shareholders

for the

past

bring
more

the
in

shareholders'

line

business being

total

assets

equity

with the volume of

transacted and the

and

liabilities

Toronto-Dominion Bank.

of the

Volume 183

Number 5534




,v..

The Commercial and Financial Chronicle

Behind

(2367)

Man's Conquest off the
a

Master's Touch

"Flying Saucer"—experimental military craft today
—forerunner of your
First

flight

in

a

cloud

of tomorrow

car

plane

over

.

.

...

.

.

records

are

at

flight—U. S. Army

.

.

.

★

Wherever there's progress

plane,

Lindbergh's lone eagle flight, nonstop New York to

your

Paris

home—you, too,

...

SOCONY
LEADER

IN

are

in the making—when

stake—when schedules must be met

★

First 'round-the-world

MOBIL

OIL

LUBRICATION

...

thing in common—socony mobil's

—the leaders in aviation look to

.

record

master touch in lubrication.

Good reason! When firsts

the North Pole, first plane over the

South Pole—Admiral Byrd's

one

■

Oil

in

Coast-to-coast propeller plane speed
All have

heavier-than-air machine—the

Wright brothers at Kitty Hawk
First

.

■

FOR

your

farm,
can

your

socony mobil.

★

in motion—in

factory,

your

your

look to the leader for lubrication.

COMPANY,
NEARLY

4

your car,

boat,

A

INC

CENTURY

19

The Commercial and Financial Chronicle
20

.

.

Thursday, May 17, 1956

.

'(2368)

Towards

Lower Bank Rate?

a

By PAUL

Unions

the

with

or

employers,

the

the

Continued

V/'"''-

con-

long

So

themselves.

sumers

with

or

with

but

t

to

it would make

weeks.

popular
explanation is
The

that

the

ket

a n

mar¬

t i

i-

c

further

pates

inflation.. Yet

should

it

be

obvious

that

further

infla¬
must

tion

more

mean

disinflation¬
measures

ary

would

which
Dr.

Paul

vorably Stock

The real reason
why the trend has been reason¬
ably favorable is the wide-spread
belief that the next change in the
Exchange prices.

be in

would

Rate

Bank

continues

that

trend

flationary

down¬

a

In face of the in¬

ward direction.

absurd.

unabated this may appear

Nevertheless, there are several
reasons why the possibility should

would not be popu¬

The change

who would be

lar among bankers

compelled

to

than

tent

larger ex¬

even

an

they

Quotation Board
Mo.—Edward D.
Jones & Go., 300 North Fourth
Street, members of the New York
Stock Exchange and other leading

given the powers of the authori¬
ties to bring about tight money
and to instruct banks to limit the
be

keep down,
to reduce further, the

quite feasible to

and

even

volume

of

basis

a

of

credits

exchanges,
installing

the

on

even

tion

the

of

followed
Stock

be

infla¬

actual

The

investors.

of

Stock

the

it

that

the ad¬

is to

Treasury Bill rates, not only be¬

boom

and

suffered

heavy

capital

On the other hand,

that

assumed
the

Bank

flood

fresh

of

inflation,

through the effect of
volume

the

on

partly

easy

of

a

money

credit,

and

The
the

fact

of

phase

mands

in

the

is

that

wages

de¬

matter

which

put forward

are

result
has long

as a

of reasonable arguments
been passed

in Britain. Wages de¬
put forward on the

whether

v

they

auto-

be

$10,000,000 Oelclex

and

wages

persons

dividends and interest paid from
the business earnings generated
by these processes.
The money
taken out of the income stream

jointly

headed

group

interest to

Union

and

Weeks

&

blower

Horn-

by

Se-

101.625% and acyield 4.015% to

maturity. The debentures are convertible
into
common
stock
at

consists of down-payments and
instalment-payments by the ultimate purchasers,

$48.75 per share. They are callable "
at prices ranging from 105% to

in 1975.

par

Ex¬

mands

as

matic

necessarily
low

and

high

system

means

Bank

the

Under

Bank

money

easy

money.

existing system, how¬

the authorities
position to make
the

if

even

relatively

Bank

low

by

is

of

kept

of

means

in

tight

money

Rate

devices

various

well

are

ever,
a

Rate

tight

Rate

The

ex¬

ample of the United States shows
there

that

the

is

hibitive

level

for

need

no

Bank Rate to

an

in

raising

almost

order

to

pro¬

bring

about disinflation.
The

be

British

well

Rate

in

its

could

even

present

do

if

so

by

the

credit

banks

squeeze.

number

deterred

to

the

keep
Bank

figure.

of

not

It

people

from

open

by instruct¬

to

relax

is

true

who

are

borrowing




They

of

means

market operations or

ing

would

to be reduced well be¬

were

low

position

a

the

' Income-Debt Flow
To

pens

illustrate,

take

v

hap-

what

in connection with an auto-

enough to
degree

of

the
the

far

squeeze

Unions will continue to press

excessive

their

claims, irrespec¬
tive of the ups and downs of the
Stock Exchange.
It

-

about

is

much

even

lower

is

matters

should

to

feasible

quite

scarcity

they

wages

be

may

bank

that

rate.

industrial
to

made

not

basis

the

on

be

of

What

realize

able

the basis

of

wages.

of

that

to secure
credit to

on

higher level

a

firms

finance their business
a

Un¬

fortunately, as things are at pres¬
ent, they can rely on being able
to pass on to the consumer any
additional
to

pay

It is

vious

wages

they

may

have

out.

becoming increasingly ob¬
that

proceeds from the sale will
applied to the construction of
a
new
plant for manufacturing
fiberboard at L'Anse, Mich., and
The

the

real

Company Fund and
the Ford Motor Co. Estimated cost
Motor

Ford

program,
slated
within the next
cost

Jo

Celotex

solution

of

now

Britain's

inflationary prices rests

by the

not with

the monetary

authorities

ing

is

two

the build-

in

its

prin-

gypsum

and

hardboard products. The company
i

1

,n

ow

s

ts

p a

t

.

...

.

,

ocated

in

eight

states.
sales

Net

for

the

four

contrasted

with

months

month before

particular month

Net income for the

months

ended

nno

Feb.
j

ntr,

29,

1956

-.u

for

period.

the

fore

the

ultimate

buyer has fin_

ished his payments,
in

any

the

economy

of

a month and the
which the new debt
is required to be paid is length¬
ened to 30 months.
The changed

$120 million

comparable

over

debt

and

payment

and debt creation
balance, and, in
new changes, the

would then be in

of

absence

transitional stimulus to the econ¬

be

If new
but should

would be at an end.

changes should

occur

direction

the

in

of

reduced

a

borrowing

of

volume

more

or

operating against the economy.
I

aware

am

that the money in¬

jected into the income stream by
the processes I have been describ¬
ing
is
not
new
or
additional
money

unless it is borrowed from
out

banks and that it does not go
of

repaid

when

existence

unless

ever,

This, how¬
is frequently the case. And

even

when

it

is repaid

to banks.

the

money

sists of nonbank funds

used con¬
previously

its employment in
instalment - buying
transforms it from the status of

in

existence,

financing

capital in certain hands into in¬
come flowing into other hands. It
becomes capital again when re¬
paid to the lenders and does not
automatically reenter the income
stream.

The dollar volume of consumer

purchases of durable goods was
only about one-fourth larger in
1955 than in 1950, but the amount
goods instalment debt
at the end of
1955

of consumer

outstanding
was

double the amount
the end of 1950.

nearly

outstanding

at

Similarly, mortgage debt on non-

given

time

whole at

the

making,

multitude of new things destined

£or consumer

almost twice
of

1955

at

as

instalment-purchase

25%

come

17%.

which element is domi-

The

Federal

average

-

debt

Reserve

Bank

of

computed that, if
debt
and
disposable

instalment

creasing

^ny increase in either the dol-

non-

income were each to continue in¬

nant, and this is likely to be re-

lar volume of instalment

on

has

Cleveland

Pected in increases or decreases
standing

debt

family residences rose
,

was

the total amount of debt out-

during the five

and mortgage

farm l-to-4

enlarge the instream and the instalment-

on

the end of 1950, al¬

ended with 1955 than dur¬
ing the five years ended with 1950.
In the year 1955 alone consumer
instalment debt went up nearly

will be tending to

depend

large at the end

as

years

four

1955

creation

debt

of

rates

payment would cause the out¬
standing debt to rise gradually
from $950 million to $1,740 million
at the end of 30 months, at which
point it would become stationary.

about 60% greater
a

as

transporting and marketing of a

noin

$1,606,947, compared with $1,024,816

debt starts

new

coming into existence at the rate

though the dollar volume of resi¬
dential
construction
was
only

^duclf if The^net "eHect" will

period.

that, and so on. Now

that at the beginning of a

assume

of dividends and interest well be-

PayinS f°r a multitude of things

1955

20

farm l-to-4 family residences was

$19,569,247

recorded for the comparable

unpaid

over

Also investors in the coneerns involved will usually have
received their reward in the form
nel.

$23,487,-

ended Feb. 29, 1956 were

669,

any

insulation,

are:

roofing,

u

+u„

business;

products,

acoustical,

will

years,

$22,000,000.

engaged

materials

cipal

completion

for

estimated

an

bring

sufficient degree of credit

a

residue of -debt
months, consist¬
ing of $95 million for the most re¬
cent month, $90 million for the

be

event long before he has finished paying for it. The same will
bring about a certain of the new plant and property is- largely be true of salaries of suunemployment,
the
$13,000,000. The total construction pervisory and executive personcredit

the necessary amount of

authorities

tight

money

the Government is unwilling to

carry

the

monetary

policy at their disposal.

are

gen¬

month would be
This would repre¬

any

only would the stimulus be gone
but instead there would be a drag

money

offered publicly yester-

was

This
$100

or other goods, pump
into the income stream a
long while in advance of taking
an equal amount of money out of
it.
The money injected into the
income stream consists largely of

or

day (May 16) by an underwriting

1976,

of

rapid rates of repayment, then not

houses

or

salaries paid to the
who make, transport and
A new issue of $10,000,000 Celo- sell the things destined for contex Corp. 4i/8% convertible sub- sumer
instalment-purchase, and,
ordinated debentures, due May 1, to a lesser extent, it consists of

Debentures Offered

total

a

household

mobiles

mobile. The workmen who make
the automobile and the materials
basis of the industrial balance of
entering into its manufacture will
erate.
There
is room, however,
power which has changed heavily
have received their wages probfor
two opinions
on
the effect in favor of the
workers as a result
the
acquisition
of
242,000
acres
of
ably before the automobile even
of a lower bank rate on the vol¬
of over-full employment. So long
timber lands and rights from the reaches the ultimate buyer and in
ume
of credit.
Under the auto¬
partly through the Stock
change boom that it would

the

sent

created

omy

and equipment

Exchange,

Stock

j.

basis>

of

end

Things which are sold to consumers on an instalment-payment

Stock Profits
the

the

$950 million.

has been established by a
sale. The, system gives in addition
'to
coverage
of the New - York
Stock Exchange, listings for the
price

generated.

that

mean

million would be paid each month
and the total debt outstanding at

the

curities Corp. at

Wages and

in

let loose

would

Rate

debt cannot

the

$100

beginning

been payable over 20 months.
would

Debt

deprecia¬

during

that

grants

the rate of

at

month at the

a

period

thinking misses a very im¬
Income should not
be thought of as something that
comes
into being without regard
to what is happening in the area
of debt creation and payment. If
one

million

of each month and has uniformly

should ask himself what effect the
slackening
will
have
on
the
amount of income that is being

crued

it is widely

reduction

any

point

now

"discretionary"

called

illustrate, assume that for
years a particular type of
personal debt i has been coming

City and enable the brokers to
provide instantaneous display of
prices on stocks and commodities
within
seconds
after
the
new

during that period has not
prevented the Unions from step¬

by one
period.

-

To

continue rising at recent rates, he

tion

same

States

Edward D. Jones

central

loans

Government

for

available

is

Such

commodity and bond quotations,

equities

which

portant point.

the

American

only

United

to

brokers

over

income
so

based

are

the

time of

the

at

change and is of diminishnig im¬
portance before the end of that

transmitting station in New York

or

Refers

link

a

cause
of the high cost of their
floating debt, but also because of ping up their wages claims which
have been more exaggerated and|
the
difficulties in funding
anyv
more
frequent than at any time
substantial' part 'of the floating'
during the previous Stock Ex¬
debt.
So
long ..as ...short-term
change
boom.
"Wage rates
in¬
money
rates
are
so
high the
creased
by
six
points
in
six
Treasury will have to offer even
months. This in spite of the fact
higher rates for any mediumthat the cost of living index rose
long-term issue.

term

boards

for worry.

spending.

country by di¬
rect
wire
to

To the extent to

beneficiaries

These

all

of it would be saved

qnd reinvested.

ti.-.

Corporation.

effect
of
such
profits
would be, however, negligible. A
tionary

large part

by

'.

man

is no

Frequently such
on the as¬
sumed continued high level of in¬
come or on the greater margin of

facturer,
The'
Teleregister

speculators

approval lof
the
monetary
authorities,
and
possibly on their initiative. There
doubt

the

assured by

therefore

other and

or

cause

contentions

be

to

installed'

sharp rise on the
This would re¬

a

ard

a

400th

Exchange.

sult in large profits to
and

would

Rate

Bank

by

drastic reduc¬

a

.

t i o n
board, the
t

quo

such

an

stock

electric

Stock Profits Non-Inflationary

Of course,

is

into existence

into existence

frequently

are

a

that, v in
the : absence
of
new
changes, the effect of such a "shot
in the arm" lasts no longer than
the term of the new debt brought

some

apologists for the debt that while
it cannot go on rising at recent
rates, its present level is not too
"high" in relation to* some stand¬

to be

are

stimulus to the
economy by widening the gap be¬
tween money income created and
money income used up, but it can
be demonstrated mathematically
provides

paid

specific economic factors '. which
generate most of the debt, name-

(1) consumer purchases of automobiles, household appliances and
equipment,
and
other
durable
goods, and '
yv V'.'V
(2) residential construction.

of time

period

the

or

which instalments

period.

We

automatic

Rate.

3% Bank

LOUIS,

ST.

it would

their credits,

of

volume

*

-

But,

now.

are

only more

financing
over

rapidly than the general ecdnomy
but also more rapidly than the

■V-.g

400th Automatic

applications

refuse

to

credit

for

Edw. D. Jones Installs

taken place with the

no

that has been rising not

the best.

would increase
Lotfer Treasury Bill Rate
their expenditures, it would af¬
'The speculation on the possi¬ fect the prices of luxuries, but its
effect on the prices of necessities
bility of a reduction of the Bank
Rate
was
the result of a per¬ would be negligible.
The favorite argument against
ceptible decline in Treasury Bill
Stock
Exchange profits that it
rates, which now stand under 5%
against a Bank Rate of 5^%. It gives rise to additional wages de¬
mands
has bebbme utterly untenis, assumed that the* decline lias

vantage of the Treasury to lower

tighter, and hope for

much

t'on"

lend.

lenders to

Exchange

is

the part of the

on

resist, it is for the
authorities to make credit condito

unwillingness of the borrowers to
borrow
as
on
the
inability of

which

excluded.

be

not

I now come to a class of debt
which is of great importance, from
the standpoint both of bank portfolios and the general economy,
and that is the debt of individuals,
consisting primarily of consumer
debt and residential mortgages,
And here we find a class of debt

employers and em-

inclination

consumers

unfa¬

affect

Einzig

Debt of Individuals

ployees halt in their pursuit of
inflationary
spiral.
Failing
any

recent

-

.

the

Notwith¬ high interest rates would then
become reduced. This would only
standing
the
unpromising eco¬
that the credit
nomic outlook, the London Stock mean, however,
Exchange
has
been reasonably squeeze would depend less on the
during

such
of

forward

put

resistance could develop

consumer

—

steady

-

claims..If only a certain degree

larger stock price profits
from a lowered bank rate would have a negligible inflationary
effect since most of the profits would be saved and reinvested.
Eng.

to

.

Pf ACYI0T1I1T
WlllA ildtfvld HI * IvdJJCIll J

upon

Unions

■

ft

lfl

utmost

Believes the resulting

LONDON,

m

mm

in-

charges

i

them, there is the such things as schools and roads
temptation for producers than to paying the obligations
concede wages claims, and for they have already occurred.

flicted

ing the possible lowering of the British Bank Rate. Refers to
U. S. A. to show that credit squeeze can prevail with a lower
bank rate.

services

and

5

.

.

;ACCAtC

.

prices

consumers' failure
to resist higher prices, and, accordingly, advises the monetary
authorities to make credit much tighter, in the course of explor¬
attributes inflation to

Economist

British

page
.

as

they put up meekly with the endless
succession
of
increases
in

EINZIG

from
.

approximately
the
rate of the
instalment debt
by 1965 would be over three times
as large in
relation to disposable
income as at the end of 1955, and
past

at

percentage

four

years,

Volume 183

in

1965

Number 5534

would

require

.

.

The Commercial and Financial Chronicle

.

fundamental

than

more

one-third of disposable income for
its servicing.
Debt

of

increase in

and residential debt

consumer

obviously
unsustainable;
simply
cannot
continue
nitely.

Tne

arithmetic

payment

schedules,
will inevitably

else,

between

gap

debt

debt

reduce

the

the

opinion that

which

originates

in

kept

is unreliable income. One

debt

that

to.

_

it

as

a

income

count

its

on

which

every

If

being

in

adhere

mobile

receiving

standards

ing

of

Will

only

not

may

we

We

afford

a

-

perhaps

can

pay

up."

serve

.

•

?

*

matic

much

that

have

ecdnomy in the last'

sibility

good, hard look at the
that personal* debt
be

to

will*
un-

^If

trouble

/

.

does

develop in the
of personal debt, ! think the

area

repercussions

will

be

felt

the form

Of

defaults

not

so

"

much

in

personal debt
of

ume

in

as

consumer

on

reduced vol¬

a

purchases,

par¬

ticularly of durable goods.
Most
people, I believe, will keep up
their oebt payments even in a
pe¬
riod of declining income. Both by

inclination and to keep their "rec¬

frozen
y

of

they default

r

goods, before
their outstanding

on

mission

that

and

,

concentrate from 9 to 12
oranges

each 6-oz.

This makes for

can.

in

econ¬

simply
by adding water. By taking the
'squeeze' out of orange juice and
freezing in all the delicious taste and
,

nourishing vitamin C, the frozen con¬
industry has: grown at an

centrate

almost
'*

unbelievable/rafe."

/>*'.'/>

:

.....

Look what's

" ' t

V
1

.

..

happened

;

7

///

"Just consider this. In -1944-45, when
we
started packing frozen
orange

before.

alone,

of

consumer

sealed

we

67

million

concentrate,

over

pur¬

there

cans.

50 percent of the

is needed each

was

only

one

year.

concen¬

trating plant 10

tance of not

years ago, there are
today. These plants, located min¬
utes away from the
orange groves,

making

take the

goods

field.

reemphasizes

All

the

of

impor¬

relaxing standards in
loans to business enter¬

prises.

trees each

not intend

to

period

a

imply that I
liquidation
early 1930's,

of

to

because

contrary is the

the

the

But I do suggest that in

would

be

well

our

to

case.

lend¬

take

in

the possibility of a set¬
back within the next few years of

account

more

severity than

ment that
war.

bear
to

One
on

has

not

readjust¬

any

occurred

does

since

have

to

the

be

a

the future of this country

believe that such

possible.

If it

of material

were

set-back is

a

just

resources

year."

a

and

matter

Cans

"Once

we

helped

how to make frozen orange

cans

as

the

was

juice

only logical to choose

continued.

chemists

the

course,

used

can

only

shatter.
carry,

once.

What's

is sanitary and it's

It won't break
more,

responsible for

re¬

the

development of the processing method
which gives frozen concentrate orange
juice its fresh, just-squeezed flavor
and wholesome nutrition.

it's

easy

the

Tin
many

work

turn;

we

that

are

they're compact,
an inch to

fraction of

their contents.

Our

Weirton

leading

we

need

to

keep




and production men
closely with customers in many

products of all American industry.
At National Steel, our constant
goal
is to produce still better and better
steels of the

quality and in the quantity
wanted, at the lowest possible cost to

our

customers.

Steel

the l1/2 billion
concentrate
year,
cans

Company is

a

supplier of the electrolytic

SEVEN GREAT DIVISIONS

WELDED INTO ONE COMPLETE

cans

the frozen orange

industry 1 required last
and for the more than 35 billion
^

made each year to

tremendous

bring

you a

variety of fruits,

vege¬

soups,

meat, fish and milk,

ST EEL-MAKING
Great Lukes Slee!
Steel

Company

•

Ilannu Iron Ore

Company

Products Compuny

Corporation

•

NATIONAL STEEL

our

GRANT BUILDING

•

Weirton

•

•

•

National Steel

The Ilanna Furnace

National Mines Corporation

as

CORPORATION
PITTSBURGH, PA.

SIR UCTUR E

Corporation

Stran-Stee! Corporation

\

/

•

research

hot-dipped tin plate needed for

tables,

economy expanding continuously.
But we must remember that these

cans.

can.

non-food

National's role

human

have everything of that

of

plate, of course, is just one of the
steels made by National Steel.

capabilities and desires, we could
dismiss the possibility of a down¬
sort

handy 6-oz.

thousands

products packed in

Our

coating of tin to make them resist¬
a

as

to

approximately 99 percent steel, with
a

well

one

fields to provide steels for the better

strong, because they

are

is concentrated into

or

ship, and to store.

Cans

and

Dr. MacDowell led the team of

search

they're

sealed, thus assuring
peak taste and vitamin values. Of

con¬

container," the scientist

oranges

hermetically

adding only

had licked the problem of

centrate, it

chosen because

were

ant to corrosion. And

How steel

comparable

ing it

golden harvest of 12 million

removed, juice of 9 to 12

water

24

Conclusion
do

Giant squeezers take all the fuss out of
preparing vitamin-rich orange juice. With

gallons

"To meet this fabulous demand for

Where

I

lists, and how steel helped make this possible

in handling and shipping, since

omy.

severely by business concerns of
marginal strength, particularly in

expect

juice has rewritten

the housewife restores the bulk

orange crop now

durable

play!"

squeeze

New

the New

on May

important ^ man-

an

chases. the effects will be felt most

the

Exchange,

paid off,

of this concentrate in

ever

originating in the
of personal debt causes a re¬

which

York Stock

Incorporated, 303 North Main St.

a, booming in-'
dustry that's only 10.years old;, ' / ' :
"By removing % of the bulk (water)/
of an orange, the
industry is able to

trouble

volume

City, members of

the : big
Florida
freeze

postponable than

duced

York

Allyn & Company,

has; ;be-

juice concentrate, only 226 thousand
gallons went into cans. But in 1954-55

area

limited partner in Morgan

come a

Davis & Co., 63 Wall Street,

-

They can do this all
readily because a high
but reducible standard of living
and a large stock of durable goods
already on hand make more wants
more

If

B.
the

to

director, of; the1 Florida Citrus J Com¬

new

obligations.

the

C.

James

—

added

concern

r

/ come

-Dr.-L:G.MacDotceii

clear, they will reduce their

purchases

staff of A.

111.

been

trated Orange'

/ jliice

•

ords
-'

•

: -V

v

_

,

has

behind-the-scenes of

pos¬

automatic

an

stabilizer.

constructive

ROCKFORD,
Sallman

Phelps will be¬

FLAAlmost

we

"

prove

and

in facili¬

M.

V; Here's the fascinating story as told
•by Dr. L. G. MacDowell, research

century and:. I do not;
they should be minimized. S

a

part

Gouverneur

^LAKELAND;;

j

accept the philosophy that we are
in a completely new era we should
take

our

progress.-

grocery

,

been

But, J also think that before
v

Morgan Davis to Admit

Allyn Co. Adds

(Special to The Financial Chronicle)

during

In other words, we

orderly

economic

incurred

.

quarter

V think

Iqc.

f*

overnight fresh-

the .auto-/

about

stabilizers
our

A

un¬

s\

UNstabilizer

built into
5

*

*

debt

undependability in it. If they were
of this
undependability,«
they might order .their affairs differently:
■••V--' ' -vV .;r.;

We talk
;

A. C.

govern¬

previously

were

income may be
levels off,

such

,

•

be doing

tating

America's

.warned

.

the deflation.
may

our

created by his spending are usually not aware of the. element of

v.

deficits'

pulled off Florida's biggest

•-but people who at
second-, third-*;
or
fourth-hand
receive
income-*
r

'**■

A noted researcher tells how frozen
orange

a period in which
instalment
debt
is

that his

might originate in

All

with Investors Realty Fund,

perhaps still later a re¬
push
toward
inflation

mental

lending and invest¬

wages in

if

as

conservative

to

.

the auto¬

derstand

poration.

repeated.

For example,
worker who is

climbing rapidly

associated with them

now

Don't

source.

economic

; reduced

then,

and

now

we

reading

realities.

automobile

is

their trading department.

be

Such, a labelrwould
better appreciation of

large

ford
in

could be

originated

unsustainable

an

Three With FIF

circulates

label

,

and

on

tialities of the economy, requiring

follows:

as

This

cannot

economy it

bear

somewhat
,

that

H. A. Riecke Adds

against inflation now, we may be
helping to avoid deflation later
newed

human

and

avoiding

a

of

made

physical

Rogers said, "to stop and
the

growth
up

financial

of

poten¬

us

was
supported by unsustainable
increases in personal debt.

wishes

I call the

in

portfolios but

own

'

and

at least half of the rise in
personal
income in 1955 originated in or

through the

what

interests

our

(Special to The Financial Chronicle)
PHILADELPHIA;
Pa.—H.
A.
Riecke & Co., Inc., 1519 Walnut
LOS ANGELES, Calif.—Edward
tions
in
the
financial
system, Street, members of the Philadel¬ H. Cooke, Jr., Norman T, Johnson
which produce economic disloca¬ phia-Baltimore
Stock Exchange, and Alfred J. Lee are now asso¬
tions.
By throwing our weight announces that John D..Walling- ciated with FIF Management Cor¬

we

.

venture

Income

trouble in

also contribute to the public wel¬
fare by mitigating those distor¬

things
has
been
allowed to get out of kilter with

debt-

payment.

will

because

statement

nothing

creation

expansion, and yet

direct

own

eco¬

way of thinking, these inter¬
ruptions have occurred primarily

they

of

almost

to

my

are

indefi¬

if

have

favorable

have
never "been
able
in; the past to
proceed without interruption. To

Creation—Repayment Gap

The recent rates

I

nomic

factors

been

always

21

(2369)

17.

-

si

N. Y. S. E. lo Honor

Stock

of

the

Bank and Insurance Stocks

New

York

is

retiring

This Week—Insurance Stocks

as

Chairman
the

f

o

Exchange's

Board of Gov¬

Rich¬

ernors,
ard

H.

ler,

Chairman

of

the
o m

Moel-

Dinner

mittee,

announced.
Mr.

Scott,

a

partner in the
Stock

Ex¬

change

and

banking

of Dean Witter
<*■

member

since

of

the

second

his

successive

seventh

because

the

of

responsibilities

demands

his

of

he would

ness,

a

Governor on May 21. In
this year he announced

year as a

January
that

and

Exchange

complete
his
term as Chair¬

one-year

and

man

C".

Stock

will

1929,

firm

not

for renomination

and

busi¬

own

When

gain

to

come

we

minus

a

down to the fact that where the results were less

in

Chairman-elect, will act

toast-

as

a

Among the -distinguished guests
be The Rev. Dr. Paul Wolfe,
Pastor
of
Brick
Presbyterian
Church; The Rt. Rev. Msgr. Rich¬
ard J. Pigott, Pastor of the Church
of Our
Lady of Victory; Keith
Funston, President of the New

for

than for

1955

Auto

Physical Damage

American

Auto

Bodily Injury Liability.

Auto

Property Liability

Straight Fire

4

Miscellaneous
Extended

—

Bodily Injury Liability

for

about

totaled

sizable

this bond.

Governments Seen

in Buying Area

93.2

government market to get off its back and
rally as it has done in the past fortnight, has had a favorable
influence upon money market followers. To be sure, there are no
out and out predictions that prices of Treasury issues have seen
their lows. Yet, on the other hand there seems to be a growing

94.0

feeling

96.5

most

100.0

97.4
88.7
9L6
96.9
143.2

102.8

88.2

that, even with a test of the year's lows, quotations of
government issues will come out of it without making new
lows.
In other words, the opinions are that further set-back in

115.0

obligations will bring in buying and
purchases made under such conditions should turn out to worth¬
quotations of government

the principal fleets

among

of

amounts

.

The ability of the

premium volume, while the other six
$3,580,000,000.

$662,000,000

some

of

while

Also

in

listed

the

accompanying

for

example),

for those that have funds for investment.

ones

a

to

Exchange; James J. Lee,
President of the Association of
Stock
Exchange
Firms;
Harry
Besse, President of the Boston
Stock
Exchange;
Emil
Schram,

Casualty

(Fire)

Agricultural

Exchange;

the

Honorable

Earl

Honorable

Andrew

the

and

F.

Hastings,

the

Downey

Or-

Honorable

Patterson,

of

the

all

Securities

&

8

2.7

Def.

5

11.0

10.9

17

with

14

cause

of the thinness

ment

securities,

Insurance

__

Casualty

3.2' '

2.2

3.9

6.2

5.5

5

4.4

4.0

11
7

_

_

_

Ins.

3.7

6

market

6.1

6.2

8

will

0.4

4.0

10

5.3

5.1

16

7.2

8.0

7

3.8

4.0

12

214

3.1

5

5.1

3.8

7

6.6

3.9

1

Def.

2.4

8

4.6

7.1

15

Members

New

Members

American

York

Stock
Stock

4.2

3.8

8

3.3

4.6

9

0.7

2.0

9

Def.

2.8

1

Bell

7.5

7.4

9

6.7

7.3

10

Insurance

4.2

3.5

2

Fire

2.4

2.4

7

12.9

5.5

5

Wreszin, both members of the New

10.2

7.6

8

York Stock

3.9

3.9

7

of N.

Head

the

St.

Office:

London,

26

E.

__

<—

Paul

Washington

Fire

&

Seaboard Surety

BANK

and

__

__

Fire

Providence

Stocks

Government

CoJony

_

Phoenix Insurance

Standard

Mar.
_

_

United

in

Uganda

_

_

_

Accident

United States Fid. &

INDIA, LIMITED
to

__

Insurance

Springfield

Kenya

_

_

Hampshire

Security

Bankers

Y

Amsterdam

Pacific

Teletype—NY 1-1248-49

NATIONAL

Amer.__

North River

Exchange

Exchange

(L. A. Gitbs, Manager Trading Dept.)
Bank

No.

Bond.

Union

Northern

BArclay 7-3500

Specialists in

Co.

National Fire

BROADWAY, NEW YORK 5, N. Y.

Telephone:

_

Insurance

Merchants

Laird, Bissetl & Meeds

8

2.3

Insurance

New

15

6

_

States

Fire

Westchester Fire

Gty.__
-

_

4.2

__

2.

Join Franklin Staff

land

Protectorate.

£4.562,500

Paid-Up

£2,851,562

Reserve

Capital
Fund

£3,104,687

Tfc# Bank conducts every

hanking

and

Trusteeships
also

description ot
exchange business.
and Executorships

undertaken




is

ernments

LOS ANGELES, Calif.—Herbe-t

New

York

still

loans

closely by money
during this time

sizable,

investors for short-term

both
the

in

quality and quantity.

ones

in

which

this

The 1961

H. M. Wreszin & Co.

will

form

H.

M.

on

Wreszin

May 15
&

Co.

with offices at 71 Broadway, New

7

York

are

partners in

Weston

D.

formed
ment
ton

Co.,

succeed

business

&

vard.

to

Hills, Calif.—Daniel

&

of

Co., 9235
Officers

Inc.,

Daniel

are

Daniel D. Wes¬

berg, Secretary-Treasurer.

Fovm Hiegel & Co.
Edward

the

J.

Hiegel,

member

of

With First New Hampshire

Jr., and George H. Moss, Jr., mem¬

Hiegel & Company with offices at

Archer

Scribner

ber of the Exchange to

63 Wall

First New Hampshire

&

Troll, III,

with

are

Samuel

B.

now

con¬

Franklin

Co., 215 West 7th Street.

i

in the firm.

Wes¬

Boule¬

President;
Milton
Toboco,
Vice-President, and Leo E. Brom-

John

T.

D.

ton,

Frank

nected

been

invest¬

Wilshire

Largay,

Exchange,

has

the

to

and Nan Beebe Simmons will form

Stock

be

(Rnecial to The Financial Chronicle)

BEVERLY

May 17 will admit William Specht,

York

to

appear

being expressed.

now

D. D. Weston Incorporates

To Be Formed in NYC

Exchange,

maturities

growing interest is

Davis, Louis E.
Deutsch, George A. Ferbeck, Mur¬
ray Handler, David A. Lesser and

New

gov¬

even

is

securities

Henry M. Wreszin and John A.

City, members of

of

though the competition from taxgetting stronger. Also, there are reports that
the buying in the intermediate-term issues has been
improving

Hay, Fales & Co., 71 Broadway,

G. Cody, Robert P.

Policy

Sizable Demand for Short-Terms

Hay, Fals s Admits

(Special to The Financial Chronicle)

Uganda, Zanzibar, and SomaliAuthorized Capital

because the trend

The demand from institutional

West

End
(London)
Brancht
St. James's Square, S. W. 1.
in India, Pakistan,
Ceylon,
Burma, Aden, Kenya, Tanganyika,

specialists,

City. Both
Kay, Fales & Co.

Branches

Be¬

govern¬

ket.

free

4.1

of

do much to indicate whether there will be any changes in
monetary policy. If the peak in loans comes by the middle of
next month, and there should be a decreasing trend from there
on, it is believed that the monetary authorities will not take too
much time to pull some of the pressure off from the
money mar¬

i

13,

Trend Key to Credit

Loan

The next four weeks will be watched very

Bishopsgate,
C.

issues

tax

11

__

_

certain

switches in some cases have taken
mainly because the issues which
being switched into have not been easily obtainable in volume.
Holders of government
obligations in many instances are not
being readily separated from their securities and this does not
make switching as easy as it has been in the past.
these

3.9

_

being made,

are

4.0

American

_

are

swops

extend maturities.

considerable time to consummate

5.8

_

few tax

the market in

of

3.5

Great

New

a

tendency more evident now to

5.9

Insurance

Falls

Massachusetts

Request

the

*

Swops Provide Activity

5.1

Re

Glens

National

as far as purchases of Treasbecause it is reported that the
have been getting the bulk of

According to reports, quite

'

•

the intermediate- and longerwhich is being shifted from

.

Tax

9
•

3.3

Home

on

6.7

Ass'n

Hartford Fire

Bulletin

5.8

6.4

these funds.

"

Hanover Fire

Express Company

6.3

Fidelity Phenix

General

American

3.5

4.0

_

Ins.

Fireman's Fund

Commission.

and

5.0

Fire

Exchange

tax-free

3.4

_

market, there is money
part of these funds are

small

of money

concerned,
corporate issues

1

Shippers

a

work in

are

7

Fidelity & Deposit...

Commissioners

securities

ury

5

2.8

&

not

equities into bonds is not too sizable

5
v

4.9

Firemen's

C.

put to

The amount

3.7

Federal

Harold

1.9
2.6

been

6.6

Continental

Honorable Clarence H. Adams, the

has

issues.

term

5

Insurance

Continental Insurance
Stock

2.2

3.3

16%

Surety

Boston

York

4.5

American

Stock

Exchange; Charles E. Wil¬

7.2%

3.4

American

Bankers

the

*

American Equitable

former President cf the New York

of

12/31/54-12/

amount

9.5%

and

put to work in fixed income obligations. Some of this money has
been reinvested in short-term government securities and a lesser

Liquidating

Liquidating Value
12/31/55

investment

for

coming from the sales of common stocks. It is indicated that in¬
stitutions with large holdings of equities have been taking ad¬
vantage of the high prices in the common stock market to reduce
somewhat their holding in order to get funds which are being

Increase

Ratio of Net Earnings

Aetna

Governor

around

ualty, Hartford, Seaboard, St. Paul, Aetna Casualty),

12/31/54

Paring Equity Holdings

Despite the tightness in the money

number of companies that emphasize fixed income
also chalked up good gains (Continental Cas¬

Stock

Public

Institutions

the increases

are

media

investment

Aetna

a

schedule

liquidating values of the 42 companies. While some of the
larger gains are to be traced to higher common stock values in
1955 (Insurance Co. of North America, America Fore companies,

in

Stock

of

—

Coverage

The last two listed lines accounted

Exchange; James
Dyer, Chairman of the American

120

1.955

87.5%

95.9
83.6

Marine

Ocean

Exchange; Edward T.
McCormick, President of the

rick,

1954

84.3%

have

reports,

to

longer-term obligations, with the

1954:

York Stock

New

been buyers of some of the
highest yielding 2V2S, and the 3s
being the most favored ones. Orders have also been around for
the 3V4S of 1978/83, and this resulted in fairly sharp run-ups in
quotation of this issue since it is not easy to acquire not too
according

funds,

satisfactory than

Indeed, most of the more important lines

less favorable year.

Buyers

.

will

son,

State Funds Active

government market has been displaying a better tone on
not too much larger volume or activity, even though there have
been some fair sized orders around for selected issues.
State
The

(using all of the larger, leading groups of companies as an indica¬
tion) showed a definitely higher combined loss and expense ratio

or

III,

improve the position of the
shorts is still very large.

for it was the poorer statutory showing'. Earlier
had brought out that 1955 could be expected to turn

comments

investors has also helped to
government market. The demand for

somewhat enlarged demand from

a

in 1954, the reason

Biltmore Hotel.

Kellogg,

which have been in evidence

underwriting

breakdown of the adjusted

a

supply of government bonds available in the
responsible in some measure for the better prices
in the past two weeks. To be sure,

limited

The

market has been

result plus or
the unearned
there are but six of the 42 companies listed that
sign opposite the equity figures. Thus it boils

premium reserve,

800

Crane

securities.

loss data into its components of statutory
the stockholder's equity in the change in

showed

Exchange, and leaders in
community — will
join in honoring Mr. Scott at the
dinner, which will be held at the

master.

or

minus

financial

James

60%

In about

liquidating value.

business.

the

of

Federal taxes,

of the companies the 1955
ratio was lower than that of a year earlier. The earnings figures
consist of adjusted underwriting results, plus income from invest¬
ments, minus Federal income taxes, for net. Now, as in prac¬
tically every instance income from investments was higher for
1955 than for 1954, it becomes apparent that what shrinkage there
was in over-all earnings was in
the underwriting portion of the
to

people—includ¬
ing government officials, members
the

1955 of the ratio of net earnings* after

of 1954 and

Inland Marine

than

actively traded

out the fact that that
year suffered somewhat by comparison with 1954.
The accom¬
panying tabulation gives a comparison between the year-end dates

Governor.
More

more

available

be

Chairman

as

the

of

figures

earnings

Preliminary

bearing

income

fixed

into

stocks

common

obligations appears to be growing and, as a result, the market
action of bonds has been better in the last two weeks or so. It is
evident that the cautious attitude which has been so prevalent in
the bond market is showing signs of being dissipated a bit.
The
fact that institutional investors are making somewhat enlarged
commitments in selected issues of municipals, corporates and gov¬
ernment bonds has improved the tone and market action of these

fire-casualty insurance stocks for 1955 bring

inve stment

Harold W. Scott

Thursday, May 17, 1956

CHIPPENDALE, JR.

By JOHN T.
from

shift

The

W.

m>mmm

•

Reporter on Governments

WALLACE:

B7 ARTHUR B.

Exchange will give a testi¬
dinner Tuesday, May 22,

Our

monial

in honor of Harold

.

.

'

Harold W. SooH
Members

Financial Chronicle

The Commercial and

'-<'T;.i

(2370);]

on

partnership

the

of

New

York

Stock

Exchange,

Street, New York City as

May 10.

PORTLAND,

5

Maine
J.

South State St.,

—

John

O'Connor
are

now

E.

and
with

Corporation,

Concord, N. H.

)

Volume 183

Number 5534

.

.

The Commercial and Financial Chronicle

.

(2371)

Honor John J. Mann a!

Equitable

Life

Insurance

Testimonial Dinner
John

J.

Ma^m, recently retired

Chairman of the American Stock

Exchange, the only individual to
five

serve

consecutive

terms

surance
surance

at

&

in

e

xcbange

Pan-American

Co.

and

•

The

&

Mass.
now

is

Agnew

Co., 177 East Fifth St.

James

and Ed¬

man,
ward

John J. Mann

the

Mann's

eight

23

T.

Mc-

Cormick, ex¬
change Presi¬
dent, reviewed

years

as

record

a

Miller

with A. L. Albee

About

affair.
were

d

a n

Rickard

for¬

was

Joins

Mr.

"■

J.

KANSAS
Owens

(Special to The Financial Chronicle)

CITY, Mo. —Garlans

has

been

staff of Barret,

added

•

.

; CLEVELAND,

the

to

P.

Fitch, North & Co.,

Simon,

Inc.,

Building.

of the Midwest Stock

was

Exchange.

Ohio —Richard

The

1010

Co.

ciated

with

Oaks

Country Club.

Bowlby

Prior

to

New

Mr.

with Perry T. Blaine & Co.

the

Hendrickson

is

with

The

and

350

Milwaukee

re¬

Boren Adds to Staff
BEVERLY

HILLS, Calif.—Ed¬
Blalock, Jr., and Frederick
Tillinghast III are now with Boren

Stock

win O.

&

1920,

member

of

University's graduate council.

Co., 9640 Santa Monica Boule-'

vard.

Mr.

with

Leo

linghast

Blalock

formerly,
Mr:. TiW
with J. Logan & Co.
was

Schoenbrun;

was

member,

£ Scott

sterling sil¬

people' attended the

Funston,
President,
and
Scott, Chairman, of the

Harold

New York Stock

Exchange; James
E. Day, President, Midwest Stock
Exchange; Frank Newburger, Jr.,
President, Philadelphia-Baltimore

■

.-.vrf:,
m
-A-feS

A Year of Planned Growth

Through Diversilication

H'V

i

i

"nnnn0

'

|

Mnnnnm

'

Stock

Exchange; James J. Lee,
President, Association of Ftock
Exchange
Firms;
and
William
Moran

of

the

Securities

change Commission,
Regional office.

and

New

gfISSSlsiiHg

wm

Ex¬

York

CHEMICAL, PAINT
& METALLURGICAL

CONSTRUCTION

EQUIPMENT

SHIPBUILDING

ST EEL

DEPARTMENT

DEPARTMENT

DEPARTMENT

DEPARTMINT

DEPARTMENT

Halsey, Stuart Group

vm

Offers Equip. Tr. Clfs.
Halsey, Stuart & (Jo. Inc., on
May 11 headed a syndicate offer¬
ing $4,800,000 of Chesapeake &
.

Ohio

Ry.

Co.

3%% serial equip¬
certificates, maturing
annually June 4, 1957 to 1971, in¬
trust

ment

clusive.

These

instalment of

certificates,

ing $12,900,000, were priced
yield 3.40% for all maturities.
-

to

tion

are

of

subject to the authoriza¬

the

Interstate

Commission.

The

Commerce

f

entire

issue

\

of

certificates

is to be secured by 60 diesel elec-,
trie road
switching locomotives
and 486 50-ton box
cars,
to cost $16,241,932.

Participating

in

estimated

the

offering

Dick & Merle-Smith; R. W.
Pressprich & Co.; L. F. Rothschild
& Co.; Baxter, Williams &
Co.;

are:

Freeman

&

INDUSTRIAL & BUILDING

RAYNOLDS

CONSTRUCTION

<

Louisville, Kentucky

New

Enamels, Varnishes,
Plastics &

Resins,

Co.; Gregory & Sons;
Co.; The Illinois Co.

Ira Haupt &

&

Marion, Ohio

GREAT

Residential & Industrial
Interior & Exterior

Maintenance Paints,
Varnishes & Finishes

investors

$5,000,000

of

debentures

Cleveland, Ohio
Chicago Station

Resins, Grinding Liquids &

Truck &

-

BOSTON

AREA

CONSTRUCTION

Retardant Finishes

■

CANADIAN
t

Masonry Paints: Industrial
Residential

C.

A.

&

DIVISION

Log Loaders

LIMITED

Paint Brushes i Rollers

the loan

sinking

of

fund

May 1, 1976. Ar¬

for the

placement

of

were

negotiated by East¬
Dillon & Co.

man,
.

Consolidated

use

Cigar

Corp.

will

the proceeds for its
expansion

to

program

retire

short-term

loans.

Auxiliary Vessels of All

were

Roofing L Siding
Eave

Culverts

Steel,

East Hartford, Connecticut

MILTON

Heat

Milton, Pennsylvania
Concrete

Pressure Piping, Copper Work

PRODUCTS

Bar Size

Dry Bulk Haulers
Public Utility Bodies

$375,416,737

Pole & Cable Reel Trailers

Winches
Power Take-Offs

Marine Salvage

Service Accessories

CHEMICAL
Derrick Heavy

&

Chemical, Paint
Metallurgical 23.9%

Hoist & Inland

Salvage

Nashville, Tennessee
Chemicals: Heavy, Aromatic &

GROSS

Agricultural, Plasticizers, Filter

$162,985,311'

REVENUES

Manufacturing 3.3%

Aids

Equipment 16.5%

Metallurgical Products: Ferro¬
alloys, Pig Iron
Fuels: Coal, Coke,
Charcoal Briquettes

$104,671,369

Equipment 11.1%
Steel 16.9%

Charcoal,

Building Materials: Mineral
Insulation, Perlite Light¬
weight Aggregate, Acoustical
Plaster, Cast Iron Soil Pipe &
Fittings, Wood Preservative
Wool

shipbuilding 12.7%
Manufacturing 7.3%

$80,930,097

Steel 0.3%
Derrick 0.8%

Derrick 2.0%

Marine

Marine Salvage 1.9%

Steel 13.0%

Salvage 1.0%

Marine Salvage 2.5%

Construction 32.0%

Including

Construction 61.5%

Construction 96.4%

Marine Salvage, 0.5%

purchasing institutions
follows:

as

Mutual

Life

Lincoln

National

Derrick, 0.4%

Massachusetts

Insurance

Life

Co.,

The

1954

Insurance

Co., Aid Association for Lutherans

(Appleton, Wis.), Jefferson Stand¬
ard

Life

Farm

Insurance

Mutual

Co.,

Automobile

Merritt Chapman & Scott

State

CORPORATION

In¬
We will be pleased to send you

surance

Co., Continental Assur¬
ance
Co., Home Life Insurance
Co., State Mutual Life Assurance
Co.

of

a

Founded

In

1860

copy of the Merritt-Chapman & Scott Corporation
1955 Annual

261 Madison Avenue

Report on request.

•

New York 16, N. Y.

Worcester

(Worcester,
Mass.), Pilot Life Insurance Co.,




Angles

Tanks

Earth Boring Machines

of

Every Type:
Industrial, Chemical, Building,
Marine, Heavy and Highway
&

Reinforcing Bars

Merchant Bars

Strip

Commercial Trailers

DIVISION

STEEL
STEEL

DIVISION

Interchangers,

DIVISION

CORPORATION

'

Milton

Equipment & Ma¬

Edgerton, Wisconsin

New York, New York

TENNESSEE

"

Pressure Vessels, High & Low

TRAILER

COMPANY
SALVAGE

Construction

Trough fc Conductor Pipe

chinery, Fabricated Structural

HIGHWAY

Construction 95.5%

The

Electric Weld Line Pipe

ships, Light & Heavy Cruisers,

Derrick 1.4%
,

Electrical Sheets

Alloy Sheets & Plates

Ships

Facilities for the Production

CORPORATION

MARINE

Colorbond Sheets

Car Floats &

Types: Aircraft Carriers, Battle¬

of: Industrial

SAVIN

CONSTRUCTION

Industrial Roof Tiles

Galvannealed Sheets

Engineering fc Manufacturing

Toronto, Canada
THE

Hot-Rolled Pickled Sheets
Galvanized Sheets

Col¬

Destroyers, Destroyer Escorts,
Oilers, Repair Ships, Tenders

GENERAL

CONTRACTOR

Dredges,

Naval Combatant Surface

DIVISION-

PITTS

Every

Cargo/Tankers,

liers, River Steamers & Ferry

Backhoes

Boston, Massachusetts

of

Hot-Rolled Sheets

Barges, Fireboats & Tugs

Paper Coatings

has

issue

Hot-Rolled Steel in Coil
Hot-Rolled Pickled Steel In Coil

Boats,

Clamshell, Magnet, Dropball &

?

Industries
Marine Finishes: Bottom, Hull,
Topsides, Engine Room, Cabin,
Deck & Hold Finishes; Fire

&

171/2 to

Pile Driver Cranes

Manufacturers t Other

Maintenance

Mobilcranes:

45-ton capacity

Fitz Simons
Dock

& Connell Dredge &

Chemicals for Coating

institu¬

16

new

414%

due

rangements

a

Shipbuilding: Design and Con¬

General

.

New York, New York

placed privately with

Newport, Kentucky
Cold-Rolled Sheets

Category: Passenger Liners,

capacity

STEEL

CORPORATION

struction

Merchant Vessels

Crawler Cranes: up to 160-ton

DIVISION

Trailerized

Corp.

NEWPORT

CORPORATION

Draglines, Crawler & Walking:

LAKES

CONSTRUCTION
.

DERRICK

Cigar

YORK

Camden, New Jersey

yard capacity

DIVISION

New York, New York

tis & Co. Inc.

Consolidated

NEW

SHIPBUILDING

V2 to 35-cubic yard capacity

Inc.; Wm. E. Pollock & Co., Inc.;
Shearson, Hammill & Co.; McMasHutchinson & Co.; Mullaney,
Wells & Company; and F. S. Yan-

Consolidated Cigar
Places Debentures

POWER

COMPANY

Power Shovels: V2 to 75-cubic

ter

tional

MARION

SHOVEL

HEAVY

CONSTRUCTION

Specially Formulated

~

DIVISION

York, New York

MARINE

Industrial Finishes: Lacquers,

Paints

Issuance and sale of the certifi¬

cates

&

COMPANY, INC,

first

issue not exceed¬

an

DEVOE

your

confidence is Justified

Com¬

(Special to The Financial Chronicle)

Among the honored guests
Earl F. Hastings, Securities
Exchange
Commissioner;

Keith

&

was

of

an

McKee

Appleton manager
for Gillespie & Wouters.
f

asso¬

York

a

now

with

was

pany

joining

was

A graduate of Princeton in

Euclid

Mr. Seager in the past

is

Jaeckels, • Inc.,
Irving
Zuelke
Building. In the past Mr. Bowlby

Treasurer

1941, he

two

Houston

(Special to The Financial Chronicle)

director of the Texas Gulf
Gulf in

the

APPLETON, Wis. —Claude N.

Exchange member firms in New
York City for 14 years.

Seager is with Ross, Borton &

1006. Baltimore Avenue, members

a

Texas

of

Joins McKee & Jaeckels

H.

Under¬

until

was

Vice-President,

Producing

,

(Special to The Financial Chronicle)

Hendrickson

cently

Ross, Borton

!

joined

an
announcement
by Milton R.
Underwood, President of the in¬
vestment banking firm.

with

Cosgrove,
Whitehead,
H a n n a
Mr.

member

a

tea service.

ver
-

a

now

merly with Green, Erb & Co., Inc.

years

presented with

is
&

has

wood, Neuhaus & Co., 724 Travis
Street, as Vice - President in
charge of research, according to

Cosgrove, Miller

Building.

Co., Inc., 4 Liberty Square.

is

Club, the Petroleum Club and the

r

HOUSTON, Texas—William

CLEVELAND, Ohio—Edward L.
Rickard

P.

'

Underwood, Neuhaus

Shuman,

(Special to The Financial Chronicle)

as
a
board member
and five terms in the chair. Mann
was

with

now

and

by

R.Dyer,

&

With

1

present Chair¬

MATEO, Calif.-rMerrill D.

Anderson

Barret Fitch Adds

Re¬

*

h

Hendrickson

at

marks

t

Western

Teofil

—

He

Hendrickson Is V.-P.

v

River

SAN

Life

Shuman, Agnew

(Special to The Financial Chronicle)

Southern Life Insurance Co.

BOSTON,

the Park Lane

Hotel.

With
t

Co., Mutual Trust Life

by Rodowicz is

members

of
As¬

(Special to The Financial Chronicle)

dinner

tendered

Co.

Life

With A. L. Albee

testi¬

a

Co.,

Insurance

that post, was
10

Co., 'Central

Co., State Farm Life In¬

Insurance

honored May
monial

Insurance

Iowa, Northwestern National Life

2b

where this

flag flies

"

"•'t-jiiwwwwwmw

Chronicle

The Commercial and Financial

Thursday, May 17, 1956

.

Smutny Appointed

Problems and Activities ot

By Webb & Knapp

Texas Securities Dealers
Executive Director, Municipal

The election of

Rudolf Smutny,

partner in

the investment

senior

Advisory Council of Texas

easier for a
dealing with:
statistics, credit information, publications, public
legislative screening and proposals, code of ethics,

up

financial

relations,

securities

dealers

resentation of the large and

porated,

with

1954.
On Sept. 27,

during

had

gained

head

tum

th at

Our

a

the

as

maintains

National Bank

most

in Austin

ment

and

tatives of 40
For the

our

of

attendance
which ap¬

were
in
something

who

us

on

bond

forty

miracle:

proached a
men agreed

There

point!

one

unanimity of opinion which

was a

heartening.

organizational matters,
and it was on Jan. 3, 1955, that
the Council's office was opened
in Austin and it is from that date
to

that the Council has existed

as

a

That is 16

working organization.

what the
Council is, how far we have come
in these 16 months, and where it
tell

to

is

headed

are

we

from

here.

The Council

is

improving

which

in

climate

the

I

business is conducted.

was

delegate at the September, 1954,

meeting

Austin.

in

I

pinch

was

hitting for AD Allison, and I was
authorized to ask this question:

of the
Council that of making it easier
for a bond man to make a living?"
If the answer was "Yes," then I
was
authorized to vote our firm
in favor of it. That was and still
main

the

objective

objective.

Council's

is the

Council

The

made

is

of 69

up

Texas dealer firms who comprise
its

membership.

regular

with

one

firm

or

Except

two exceptions every

which

State

the

within

of membership from
eligible there is no
business
or
professional

to percentage

firms

other

within the State of Texas
which approaches ours if mem¬
bership be voluntary and the en¬
group

trance

fee substantial.

have

we

52

out-of-

resident members. These are firms

time

from

Texas

issues.

have

and

them

which

inures

Texas

dealers

out-of-State

to

Council

are

the

of

the

also

firms.

of

these

benefit

affairs

governed by

of Trustees composed of
utive

Council

benefit

dustrial

the

a

Board

12

exec¬

representatives of different
As you know there is geo¬

graphical

representation

on

•An address by Mr. Tinsley before

the
the

Annual Convention of Investment Bankers

Association, Texas Croup, Corpus Christi,
Texas, April 28, 1956.




uses,

announces

Joshua

that

Davis

A.

director of the

providing financial statistics and
improving
public relations al¬
though these are still the major

a

Mr.

Davis is VicePresident

and

of

director

Blair

&

Co.,

Incorporated,
New York

endeavor.

of

fields

has

been elected a

relations. But there are

in-

vestment
Publications

Joshua A. Davis

that this
formally recog¬

Aledo

the

for

The

Commonwealth Edison.

other

some

electric

utili¬

ties the company has

experienced
a
summer
peak due to the in¬
creasing
air - conditioning
load,
which
they
don't
particularly

Illinois

Edison,

100%

$75

company

Like

transmission lines in
the Peoria and Springfield Divi¬
sions interconnect with those of
company's

Central Illinois Public

While in the past they have

favor.

has

convention
the

nized

meritorious

of

years

rendered

our

industry by

and

for

the

"Texas

publisher of
Reporter" Inc.

years

many

Bond

director of Godfrey En¬

a

gineering Co. Ltd., Coastal States
Gas Producing Co., First Califor¬
nia

and Pepsi-Cola Bottling

Co.,

Angeles.

Co. of Los

We eloped with
that stings,
I know, but George has been very
gracious about it and we love him
it.

for

With F. P. Ristine
F. P.
Broad
Street, members of the New York
PHILADELPHIA, Pa.

Ristine

&

—

South

123

Co.,

stock exchanges,
announce that Oscar E. Robin has
become
associated with their

and other leading

files

the

With

and

publication

purchased
from
"Texas
Inc., we have es¬
tablished
three
publications:
"Texas Bond Reporter," our week¬

rights

Bond Reporter"

ly news magazine; "Texas Munici¬

pal Reports," which are individual
analyses
prepared
on
each unit of local government that
has bonds outstanding; and "MAC

financial

All of you

receive "Texas Bond
as a
right of
course
it also
of our non-resident

all

to

goes

members at
is

no

cost to them.

This

highly effective medium for
reporting the current news from
week to week as to forthcoming
a

bond

elections, bond sales and the

is
to

subject

looking

schools and Temple
University. He saw service in the
U. S. Army, leaving with the rank
of Lieutenant Colonel in January,
1956.
^

some

of you are over¬

Frankly,

need more

we

because

this

the

is

publications for
which there is a charge and our
publications are not self-support¬
ing. We need your subscription.
only

of

one

our

"Texas

not now a subscriber
Municipal Reports" or

if you are a subscriber and do not
order

extra

copies

for

your

cus¬

tomers, then you are overlooking
one
of the most effective public
relation

a

erties
service

Both

Edison.

gimmicks at

You may

buy

dispo¬
customer

your

your

steak dinner, a case of whiskey,
take him fishing to show your

Continued

on

page

32

DeKalb

the

The

new

is

era

The

cities

served

in September,

In

was

the company's opera¬
providing annual revenues
of about $3.1 million vs. $2.8 mil¬
lion for the municipal plant; the
latter has a somewhat larger pro¬
plant,

Calif.—Election
Los Angeles
investment banker, to the board
of directors of Clary Corporation
has been announced by Hugh L.
SAN GABRIEL,

Richard M.

of

Link,

President.

Clary,

Link is

Mr.

a

Vice-President of

& Company,

Blyth

been with the

Inc., and has

investment banking

firm since 1945.

—

You

work

name

for

man,

for

in

him.

Speak well of him, and stand by
of

ounce

loyalty

Remember
worth a

is

pound of cleverness, If you must
growl,
condemn,
and
eternally

resign and
when
you
are
on
the outside,
damn to your heart's content. But
as
long as you are part of the
find

fault,

do

firm

why

not

not

condemn

it.

If

you

do, the first high wind that comes

will blow you away, and
probably you will never know
why.—Reprinted from the March
Issue of "FINAL PROOF," official
along

organ

Branch
No.

6.

of
of

reflected

the

12

the

increase

in the earnings for

months

March

ended

$4.01

were

on

31,
1,000,000

in the
corresponding
period.
also stimulated by

shares compared with $3.15
-

has widely di¬

previous
Earnings
cold

were

weather

heating

and

better

house-

sales. Earnings are esti¬
at $4.14 for 1956 and are

cereals, meat and mated
chemical and expected to continue to improve
petroleum products, farm tractors in 1957, according to President
and
equipment,
diesel engines, Schlink.
This stock has been quoted re¬
wire
products, electrical equip¬
ment
and
machinery, distilling, cently around 55 and pays $2.60 to
The price-earnings
brewing, coal mining, and other yield 4.7%.
of

other food products,

Agriculture

ratio is

in the company's
territory, 10,164 farms being
served at the present time. Cater¬

principal

the

Tractor,

pillar

13.7%.

Pasadena Corp.

contrib¬
company's

PASADENA,

dustrial unit in the area
utes

about

7%

of

the

electric and

revenues—$2,219,000

$215,000 gas.
The:company has
been increasing its operations and
now

is planning to

Peoria

the

Adds

(Special to The Financial Chronicle)

in¬

Calif.—Ed ward

Edison is with the Pasadena Cor¬

poration,
Street.

618

He

was

East
Colorado
formerly with J.

& Co.

Logan

concentrate in

With Davidson Co.

area.

business
continued
growth,

company's
show

is cheaper
than use of oil or coal; saturation
is now only 65% and they have a
waiting list of about 2,000 homes.
They are hopeful of getting more
gas
from Panhandle Pipe Line
and are also interested in devel¬
oping gas storage. They are al¬
lowed to adjust gas rates to any
increases
made
under bond
by
the

supplier

(they have escalator
in the elec¬

clauses for fuel costs

tric
is

service

receiving

refund

from

also).
a

(Special to The Financial Chronicle)

gas

The

$2.2

company

million

gas

and

will

Panhandle

$1.5 million to its own cus¬
tomers over a two-year period.

return

The! company recently sold 100,-

shares
of
common
stock
the Printing Utilities 000
Typographical Union through a l-for-10 subscription
.offering.
On a pro forma basis
•
;
...

half

About

was

which

since gas house-heating

a

work

the firm he represents.
an

equivalent to roughly 640 a
on
the
present
1,100,000

shares.

industries including the

processing

should

If

1955, received about

...

LOYALTY
Heaven's

poor

electric proper¬

share

portion of the residential business
while the company has the greater

area

were

$1,450,000,
or
nearly
all
the
amount requested.
This amount

the company
com¬
petes with an 80,000 kw. munici¬
Springfield

The service

company's earnings
during 1952-53 by a

petition,
the company filed an
application for an electric rate
increase in November, 1954, and

are

part of the industrial business.

be

difficulties with
gas
(higher costs being only
partly offset by rate increases).
After making some readjustments
in the City of Springfield in con¬
nection with the municipal com¬

served comprise about

principal

to

rates

2,800 square miles with a popula¬
tion
estimated at over 425,000.
Peoria, Springfield and Pekih.

said

and

ties,

$2.1

consid¬

ness.
areas

machine

York

rate of return on

commercial

and

company

retarded

re¬

since it has more
busi¬

ered more stable,
residential

about

of

revenues

million.

heat" on cold
expects to
the possibilities of the

"resistor

into

The

area,

area

without
supple¬

pumps

adapted to cold weather.

ceived in exchange for it, produce
annual

considerable

look

by

Lacon-Aledo

the

and

of

area

heat

of

use

New

the
Commonwealth

surrounded

was

to

the

Commonwealth.
days, but the
logical, as the

was

served by the DeKalb prop¬

area

adapted

is also important

Reports"

excellent bet in those

subscribers

or

move

varied manufactures.

Link Director

on

an

reports.

sal.

This

The

afraid that

to

graduated from

Robin

Mr.

Philadelphia

which I am going
dwell at length because I am

a

exchange

in

mentary

tric properties of

versified

Philadelphia office.

Special Reports," which are com¬
prehensive studies of matters of
general interest to the industry.
Reporter" weekly
membership.
Of

receiving

Gas,

tions

July 1, 1955.

his only daughter, and

nois

the Lacon and Aledo District elec¬

pal

bought out George's operation

We
on

D a v i s

Mr.

also is

heating property to Northern Illi¬

The

house.

It is fitting and proper

If you are

of

thera-

company.

dealers.

over-all

The

deal in

proud to
feel that any

are

we

accomplishments

time

to

We

Pe¬

District which receives electricity

Power and

peutic and in¬

things to be done in this business
of making it easier for a bond
man to make a
living other than

Our "Texas Municipal

State dealer firms which are non¬

which

divisions:

except

15
45

—

for

those

like.

Then in addition to our regular

membership

connected

11
34

expects to spend
about $43 million during 1956-58
for construction.
They expect to
sell
$8 million preferred stock
later this year
and $18 million
bonds in 1957, with no financing
in 1958-59.
The next equity fi¬
nancing is expected to be in 1960,
and during the intervening period;
the equity ratio is not expected to
drop below 37%.

Service.

CLEVELAND, O h i o

statistics

financial

of

fields

the

and Structure

Organization

The

oria,
Springfield,
and
LaconAledo, the electric properties of
the three divisions being inter¬

from

__

Total

is

served

area

three

into

Commonwealth

Joshua A. Davis Dir.

heartily of the idea of the Council
it would limit its activities to

is

eligible for membership is a mem¬
ber. It is a boast of mine that as
total

were

George Culler, one of the founders

trade associa¬

a

tion, an organization of business
competitors which has been put
together for the prime purpose of

"Is

Directors.

if

service

Purpose

our

outset there

the

exactly

you

like

looks

elected to the Board of

What I want to do today

months.

New

Square,

Franklin

were

skeptics who had some apprehen¬
sion as to just what the Council
idea could lead to. They approved

and public

de¬

The next few months were

voted

Our budget

printing plant.

At

lives those

witnessed

was

Tinsley

in

time

first

York

Roth,
Presi¬

National

Franklin

The

of

Bank

3,000 units of local govern¬
in Texas and we have our

own

by represen¬
firms.

equipped; it
files on al¬

statistical

of

divided

Warren,

The

heating.

3%

40%

Stock-_

Stock

Common

mately 60% electric, 37% gas and

Columbia University

Chairman of the Board and

dent

ed

William

that

Preferred

and hot
2; revenues are approxi¬

water in

Pet.

$30

C. W.
not
promoted
the
heat pump,
In January the company con¬
for the current fiscal year is ap¬ Haller, President of Victoreen In¬
three pumps are being placed this
veyed
its
DeKalb
electric
property
Co.,
manufacturer of
year for testing. With 6,000 degree
proximately $147,000. Ours is no strument
to Commonwealth Edison and the
radiation measuring instruments
small undertaking.
days, the area is not very well

attended

was

regular retainer.

well

is

office

Our

the American

a

&

also

Millions
Debt

It serves

company.

b b

follows:

Funded

electricity to 90 municipalities (as
as some at wholesale),
nat¬
ural gas in 22, and steam

e

about

one
of three
utilities,, with

Illinois"

well

School, and Arthur T.

Law

Executive Director.
staff is composed of

who is on

headquarters at Peoria.

of

is

It

as

System,

the real estate

C.

your

Austin

ney

of

auditorium

Smutny

of the

Dean

employees, plus our own attor¬

18

was

in

held

our

comes

momen¬

Board of Trustees
Austin staff which I

the

Under

such

meeting

tvuuoif

October.

1954, the idea

Zeckendorf,

million.

capital structure is approximately

for¬

Com¬

of

revenues

"Central

a n n o u n c

at our

annually

elected

annual

$33

Knapp

Trustees is

of

Board

The

firms.

Southern

&

a

old

William

W

small

Light is

of the

was
announced by

President

business
' '%■ meeting during the last week in

conceived

was

subsidiary

monwealth

well as rep¬

Board of Trustees as

Illinois

Central
mer

Knapp, Incor¬

grievances and practices.
The idea of a strictly business
organization concerned with the
problems of the Texas municipal

&

Webb

of

the organization's objective as "making it
bondman to make a living." Describes functions

•

Central Illinois Light Company

Commit tee

municipal securities dealers sums

Utility Securities
By OWEN ELY

Executive

the

Austin, Texas

Executive Director of Texas

Public

banking firm of Salomon Bros. &
Hutzler, as
Chairman
o f

By W. E. TINSLEY*

a

..

(2372)

24

•

SAN FRANCISCO,
ert W. Canon is now
son

&

Co.,

members

155

of

the

Stock Exchange.

with Brush,

Calif.—Rob¬
with David¬

Sansome Street,
San Francisco
He was formerly

Slocumb & Co.

Joins Hannaford Talbot
(Special to The Financial

Chronicle)

Calif.—Melvin
C.
McArthur is now
with
Hannaford & Talbot, 519
Cali¬
SAN FRANCISCO,

fornia Street.

E. F. Hutton Adds
(Special to The Financial

Chronicle)

FRANCISCO,
Calif. —
Don G. Hopper has been added
to the
staff of E. F. Hutton &
SAN

1

"1

f

Jft. **Hu

Volume 183

Number 5534

.

.

.

(2373)

The Commercial and Financial Chronicle

TWENTY-FIRST ANNUAL MEETING

exaJ
INVESTMENT BANKERS ASSOCIATION

CORPUS CHRISTI,
APRIL

26-28,

C

EXECUTIVE

CHAIRMAN

W. Wallace
First

of

Payne

Texas

poration,

Earl G.

Taylor B. Almon

Cor¬

1956

O

M

M

Fridley

J. Wesley

Hickman

Bernet &
Hickman, Inc., Dallas
Schneider,

O

M

M

I

Joseph R. Neuhaus
Underwood, Neuhaus
& Co., Incorporated.
Houston

COMMITTE

T

T

William F. Parvin
Austin, Hart
Parvin,

&

William C. Porter
Dittmar & Company

San Antonio




LEGISLATIVE

Charles C. Pierce
Rauscher, Pierce &
Co., Inc., Dallas

T

E

E

SECRETARY-

EXECUTIVE
SECRETARY

Allison

R. B. (Brud) Smith
Keith

& Co.

E

M

E

Mosle

& Co..

Houston

<&

Dallas

E

Edward Rotan
Rotan,

Reed

Company

Inc., San Antonio

N

Milton R. Underwood
Underwood, Neuhaus
& Co., Incorporated
Houston

San Antonio

CHAIRMEN

E

MEETINGS AND

MUNICIPAL
EDUCATION

T

TREASURER

M. E.

Antonio

C

I

John P. Henderson

'Tridley, Hess &
Frederking, Houston

Rauscher, Pierce <&
Co., Inc., Dallas

San

TEXAS

VICE-CHAIRMAN

VICE-CHAIRMAN

OF AMERICA

SECURITIES

MEMBERSHIP

Milton E. Allison

Eugene D. Vinyard
Central

Investment

Company

of

Dallas

Texas

ENTERTAINMENT

Jesse A. Sanders
& Newsom
Dallas

Sanders
I

M. E.

Allison

&

Co.

Inc., San Antonio

25

26

The Commercial and Financial Chronicle

(2374)

.

.

.

Thursday, May 17, 1956

i

Rauscher, Pierce & Co., Inc.
Member
New

Stock

York

Exchange

American

Stock

Underwriters
Brokers

Stock

Midwest
Exchange

Exchange

(Associate)

Dealers

•

Distributors

•

Municipal Bonds
Bank and Insurance Company

Stocks
Mr.

Public

Brothers & Co., Kansas City, Mo.; Mr. & Mrs. George W. Davis,
Francisco; Mr. & Mrs. W. Wallace Payne, First of Texas Corporation,
& Mrs. M. E. Allison, M. E. Allison & Co., Inc., San Antonio

& Mrs. Russell E. Siefert, Stern

Davis, Skaggs & Co., San
San Antonio; Mr.

Mutual Investment Funds

Utility, Railroad and Industrial

Bonds—Preferred Stocks—Common Stocks
Mercantile Bank Bldg., Dallas 1, Texas
Telephone

Bell Teletypes

Riverside 9033

DL 196 and DL 197

Austin

Harlingen

*

Antonio

San

Houston

*

Tyler

•

Direct Wire» to All Principal

Waco

Markets

OFFERINGS

AND

BIDS

FIRM

Lubbock

•

*

TEXAS MUNICIPAL BONDS

Mr.

&

Mrs.

A.

C.

Black, Henry, Seay

&

Black,

Dallas;

Mr.

&

Mrs.

Robert

Sledge,

Southwestern
Mrs.

Securities Company, Dallas; J. Ries Bambenek, Dallas Union Securities Company, Dallas; Mr. &
Paul Creson, Southwestern Securities Company, Dallas; Mr. & Mrs. Robert R. Rririker,
John Nuveen & Co., Chicago

Bond Department

FIRST NATIONAL BANK
DALLAS

IN

Telephone ST 5471
Teletype DL

-

The Bank Wire

to

Principal Markets

94

& DL-218

Markets In The Southwest
David F. Anderson,

Advance

Petroleum

J.

Aztec Oil & Gas

Pacific Uranium

Beaver

Pan

Lodge Oil

National

Ray McDermott
American

Sulphur

Canadian-Delhi Petroleum

Pinon Uranium

Delhi-Taylor Oil & Gas

Pubco Petroleum

Fargo Oil

Sabre

Federal

Seismograph Services

Uranium

South Shore

Fritz

Southern Union Gas

& Sons

General American Oil

Tekoil

General Gas

Texas

General

Corporation

Corporation
City Chemical Debentures

Minerals

Texas

Industries

Texas

National

Gulf Interstate Gas

Three States Natural Gas

Lisbon Uranium

Western Natural Gas
White

Phillips Investment Company, Incorporated Houston

Oil

Great Plains Development

Lone Star Steel

J. R.

Uranium

Frigikar Corporation
Glitsch

Muir Investment Corp., San Antonio; Mr. & Mrs. Clarence E. Sample, Mercantile
Dallas; Gus Nelson, Texas National Corp., San Antoni<~; Allison R. Peirce, Harold
& Company, El Paso, Tex.; Mrs. William N. Edwards, Ft. Worth, Tex.;
William P. Sharpe, Mercantile Trust Company, St. Louis; Jesse R. Phillips,

Bank,

S. Stewart

Petroleum

Canyon Mining Company

White Eagle Oil

A( IJTHWI STIT N
VI 4 I

IMIIS i | Ml

Mercantile Commerce Building
FORT

WORTH

•

MIDLAND




•
•

ss>

Riverside 5471
ODESSA

•

LUFKIN

Dallas, Texas

•
•

MONAHANS

Mr. & Mrs. G. A. Hufnagel, Singer, Deane A Scribner, Pittsburgh; John Ahbe, Distributors Group,
Incorporated, New York City; Mrs. John B. Cornell; Walter Sorenson, Rotan, Mosle & Co., Houston;
J. Wesley Hickman, Schneider, Bernet & Hickman, Inc., Dallas; Mrs. Walter Sorenson;
John B. Cornell, Jr., Distributors Group, Incorporated, Dallas

Volume 183

Number 5534

.

.

.

(2375)

The Commercial and Financial Chronicle

27

INVESTMENT SECURITIES
of the

UNDERWRITER
DEALER

COMPANY

MERCANTILE

BANK

m

lit 1LLHM

DALLAS, TEXAS

pi. ai

Abh.ene

Speakers

S

n vi em

vn

A

mo mo

Table—Second Session

TEXAS

MUNICIPAL BONDS
•

'

:

,

.

y

,

I

•

"

;

:

Central Investment Company
of texas

?—

Kirby Building, Dallas 1, Texas
Bell

RAndolph 9145

Teletype—DL 586
Branch Offices

St. Paul

Lubbock

San Antonio
& Co., El Paso; Harley Carswell, Austin, Hart & Parvin, San
Dallas Union Securities Company, Dallas; William J. Lau, J. M. Dain &
Company, Inc., MinneapoPs; Rollin C. Bush, First National City Bank of New York, New Ycrk; Wi^iam
F. Parvin, Austin, Hart & Parvin, San Antonio; Charles E. Kimball,
Wellington Fund, Inc., Dallas
Allison

R.

Peirce,

Harold

S. Stewart

Antonio; J. Ries Bambenek,




CL

mutual fund investing

in securities of the

Southwest selected for

possible long term growth.
PROSPECTUS

FROM YOUR INVESTMENT DEALER OR

BE OBTAINED

MAY

FUND

TEXAS

■

-•

'

:

•-

.

..

J

1

.

P.

O.

BOX

871

•

•

*

'

'

X'

*

■.

"Vy-" .'/'TV

1

'

-

•

TEXAS
..•••

-

..

•

,

C 0.

MANAGEMEN T

principal underwriter

V

" V.

•

X

"

t

HOUSTON, TEXAS

•

•

;

- -

*

»

i -

CApitol 7-0211

•

*
* *

'

;
■

•

"

*

*
•

'

NATIONAL BANK BLDG.

• •

V

"

-

-

TELETYPE HO-566

28

The Commercial and Financial

(2376)

We

announce

our

Direct Private
New York

Carl M. Loeb,

and

our

.

.

Thursday, May 17, 1956

Exchange

Wire

to

Correspondent

Rhoades & Co.

Dallas

Correspondent

First Southwest

Company
John P. Henderson,

& Company

Russ

.

membership in

The New York Stock

our

Chronicle

M. E. Allison & Co., Inc., San Antonio, Tex.; J. L. Bates, Central Power & Light

Co., Corpus Christi; Sam H. Ranson, Ranson & Company, Inc., Wichita, Kans.; Lon C. Hill, Chairman
of the Board, Central Power & Light Co., Corpus Christi; Clarence E. Crowe, McCall, Parkhurst
& Crowe, Dallas; Paul B. Horton, McCall, Parkhurst & Crowe, Dallas

INCORPORATED

NATIONAL BUILDING

ALAMO

SAN

ANTONIO, TEXAS
Members

New York Stock

Midwest Stock Exchange

Exchange
Bell

Teletypes

Trading Dept. SA 23

Municipal Dept. SA 53

May 4, 1956

Edward

Corpus

Complete Information
on

H. Keller, Texas National Corp., San Antonio; Dwight Carlsen, Central Power & Light Co.,
Christi; John W. Stephens, Perkins & Co., Inc., Dallas; Gus Nelson, Texas National Corp.,
Antonio; F. Vincent Reilly, Commercial & Financial Chronicle, New York City

San

Southwestern Issues
For Firm Bids

on

Texas

Municipals,

Call, Wire
Investment

or

Write

Department

UFTJTTUT Tr

KliiJr UijJblvi

NATIONAL BANK

T«S. 81-3065
81*5761

TWX-DL-418

John

R. Jamieson,
Television Shares Management Corporation, Chicago; Jack Culbertson, Television
Management Corporation, Chicago; Gavin H. Watson, Value Line Fund, Inc., New York;
Wayne R. Benzing, Granbery, Marache & Co., New York; Arthur J. C. Underbill, Arthur
Wiesenberger & Co., New York; John McG. Dalenz, Calvin Bullock, Ltd., New York City

Shares

TEXAS
W.

MUNICIPAL
BONDS

Wallace

Payne,
President




ACTIVE TRADING
IN

TEXAS MUNICIPAL ISSUES

GUNTER

BUILDING

SAN ANTONIO 5,

CApitol 7-9253

TEXAS

Teletype SA 13

Representatives

AUSTIN—DALLAS—YOAKUM

Eugene

Vinyard,

Central Investment Company of Texas, Dallas; Harry Ratliff,
McClung & Knicker¬
of Texas Corporation, San Antonio; Mrs. Eugene Vinyard;
Edinburg, Tex.; R. A. Underwood, Jr., R. A. Underwood & Co.,
David Barnes, Ranson & Company, Inc., San Antonio; Van H.
Howard, Jr.,
Dobbins & Howard, San Antonio

bocker, Houston; Tom Anderlitch, First
J. R. Dodds, R. A. Underwood & Co.,
Dallas;

-<««««'-—T-n

Volume 183

Number 5534

.

.

.

rjnmr-

The Commercial and Financial Chronicle

(2377)

29

BMmmmmmmmmmm
CLAUDE T. CROCKETT

A. GORDON

HOUSTON

CLUB

HOUSTON 2,

BLDG.

TEXAS

CApitol 5-0441

TWX—HO

585

*

••

•

CROCKETT

Underwriting, Retailing
and
Direct and
John

McG. Dalenz, Calvin Bullock,
Ltd., New York City; Mrs. Frank E. Austin, Jr.; Kenneth Drummond, Calvin Bullock, Ltd., St. Louis; Mrs. and Mr. Nelson Waggener, Walker, Austin &
Waggener,
Dallas; Frank E. Austin, Jr., Walker, Austin & Waggener, Dallas

Connecting Wires to

Albuquerque—Quinn & Co.
Albuquerque—Whitney & Company
Beckley, W. Va.—Joseph X. Fazio & Co.
Boston, Mass.—Draper, Sears & Co.
Bradford, Pa.—William T. Bowler & Co.
Charlottesville, Va.—Wyllie & Thornhill
Chicago—McMaster Hutchinson & Co.
Cleveland—Wm.

J.

Mericka
Co.

Dallas—Southwestern

Securities

&

E.

Paso—Harold

S.

&

Co.

&

•

Mrs. Steve Denning, Garrett and Company, Dallas;
William P. Sharpe, Mercantile Trust
Company, St. Louis; Mr. & Mrs. Milton Fox-Martin, Wellington Fund, Inc., Philadelphia;
Charles E. Kimball, Wellington Fund, Inc., Dallas

&

Co.

Corp.

Co.

Toronto—Matthews & Co.

Harrisburg—Blair F. Claybaugh & Co.
Kansas City—Burke & MacDonald, Inc.
Kansas City—B. C. Christopher & Co.
Los Angeles—Dempsey-Tegeler & Co.
Midland, Tex.—Southwestern Securities Co.

Tucson—Henry Dahlberg & Co.
Tulsa, Okla.—Miller & Co.
Victoria, Texas—de la Marre & Co., Ltd.
Wichita, Kans.—Lathrop Herrick &
Clinger, Inc.

0

9

0

One
&

Ellis

Fort Worth—Southwestern Securities Co.

(Contact

9

Co.

Co.

&

Odessa, Tex.—Southwestern Securities Co.
Phoenix—Kenneth

Co.

Stewart

Bass

Pittsburgh—Blair F. Claybaugh & Co.
Portland—Zilka, Smither & Co., Inc.
St. Louis—Dempsey-Tegeler & Co.
Salt Lake City—A. P. Kibbe & Co.
Salt Lake City—Whitney & Company
San Antonio—Lentz, Newton & Co.
San Francisco—Wulff, Hansen & Co.
Scottsdale, Ariz.—Kenneth Ellis & Co.
Seattle—Blanchett, Hinton & Jones, Inc.

Simpson & Co.

Detroit—Don W. Miller

El

Nashville—Jack M.

Co.

Denver—Mountain States Securities

Denver—B.

Minneapolis—M. H. Bishop &

New Orleans—T. J. Feibleman & Co.
New York—Joseph McManus & Co.

Co.

&

Dallas—Reed & Sloan

Denver—Greenberg, Strong

Mr.

Trading

9

of

0

us

through

9

9

9

any

of them)

9

9

9

9

9

#

*

important services to

our most

institutions and

to

individuals
e

U. S. GOVERNMENT,
STATE AND

o

MUNICIPAL BONDS

0

0

MERCANTILE

#

MfMBffi ftDIBAl DEPOSIT

£

iNSUBAHCf COBPOHAtlON

#

TRUST

0£>MPANYT
0

#
SAINT

New York

0

LOUIS

1,

MISSOURI

Correspondent 14 Wall Street

0

Chicago Telephone to Bond Department Dial 211 Request Enterprise 8470
9

#

RESOURCES

OVER

*000

MILLION
9

9

9

9

9

9

L.

Smiley White, Frost National Bank, San Antonio; Mr. & Mrs. William A. Jeffers, Dittmar &
Company, San Antonio; Mr. & Mrs. William Minar, Rotan, Mosle & Co., Houston; Mr. & Mrs. Ed
Walton, Moroney, Beissner & Co., Houston; W. E. Knickerbocker, McClung & Knickerbocker, Houston

Underwriters

flf j

Distributors

Texas

Dealers

Municipal Bonds

Corporate Stocks and Bonds

/?
JL JL. Jm

HM<f

JL. JRk. JK!!pL
I

Arthur

■

N

C

O

JC m. JL mm JtLmd
R

p

O

R

nP

A

uW
£

T

P

.

E.

Goodwin, Rowles, Winston & Co., Houston; Mr. & Mrs. Jack C. Payne, Dallas Union
Company, Dallas; Mr. & Mrs. Lockett Shelton, Republic National Bank, Dallas; Einer
C. Bradford & Co., Nashville; W. E. Tinsley, Executive Director, Municipal, Advisory
Council of Texas; B.
W. Lucas, Fort Worth National Bank, Ft. Worth, Texas

Securities

Nielsen,

J.




FIDELITY

UNION

LIFE

BLDG.

•

DALLAS*

•

ST-1234

•

TELETYPE

DL

503

30

The Commercial and Financial

(2378)

Chronicle

.

.

.

Thursday, May 17, 1956

'

K'

JluU cfijttm ttfmdrtd

SieocaA

John P. Henderson,

Established 1920
Dealers and Brokers in

.

Southwest

Mr. & Mrs. William C. Jackson, Jr., First
T. Masterson, Charles B. White & Co., Houston

M. E. Allison & Co., Inc., San Antonio;

Company,

Dallas;

Mr.

&

Mrs.

Neill

.

.

•

CORPORATION STOCKS AND BONDS

•

PUBLIC

UTILITY

PREFERRED

AND

STOCKS

COMMON

STOCKS

•

BANK

•

INSURANCE

•

TEXAS

STOCKS

MUNICIPAL

BONDS

DALLAS UNION SECURITIES COMPANY
Member Midwest Stock Exchange—

Member

Associate

Stock Exchange

American

FORT WORTH, TEXAS

DALLAS, TEXAS
1001

TOWER

ADOLPHUS

BLDG.
EDISON-1248

WORTH NATIONAL BANK

FT.

•

RIVERSIDE-9021

TELETYPE:

Corporate DL 390; Municipal DL 991
Direct

Glore,

Forgan

&

Chicago

Co.,

wire

and

Since

MARKETS

TEXAS

in

to

Troster,

Singer & Co.,

New York

1924

and

SOUTHWESTERN

MUNICIPAL and CORPORATION SECURITIES
Mr.

Mrs. William

&

Thomas

Garrett

&
Ft.

Company

C. Jackson, Jr., First Southwest Company,

Dallas; Mr. & Mrs. Anthony Tomasic,

Company, Pittsburgh; Mr. & Mrs. Barron McCulloch, Barron McCulloch & Company,
Worth; Mr. & Mrs. William P. Small wood, First Southwest Company, Dallas

Specialists in
UNLISTED SULPHUR
RETAIL

SECURITIES

DISTRIBUTION

Ground I*loor

Fidelity Union Life Building

DALLAS
Bell

1, TEXAS
Telephone

Teletype DL 91

Underwriters

STerling

4751

Dealers

Distributors

Corporate and Municipal Securities

Trading Markets in Southwestern Securities

Eppler, Guerin
400

&

Turner

DALLAS 1,

Earl

G.

Newsom,

Fidelity Union Life Bldg.

Fridley, Fridley, Hess & Frederking, Houston; Mr. & Mrs. Allen L. Oliver, Sanders
Dallas; Mr. & Mrs. Jesse A. Sanders, Sanders &. Newsom, Dallas; Mr. & Mrs. Fred
Bolton, Muir Investment Corp., San Antonio; Paul Fagan, National Association of
Securities Dealers, Inc., Dallas

&
J.

TEXAS

Teletype—DL 358

Riverside 3441
Direct Wires

to

Goldman, Sachs & Co., New York
Muir

Investment Co., San

Antonio—Robert E. Levy & Co., Waco

Henry-Seay & Black
KIRBY

BUILDING

DALLAS 1, TEXAS
Telephone

—

Prospect

8124

Teletype —DL

386

Municipal and Corporate




Securities
Mr.

Day,

Mrs. William N. Edwards, William M. Edwards & Co., Ft. Worth;
Mr. & Mrs. J. Warren
William N. Edwards & Co., Ft. Worth; Mr. & Mrs. Landon A. Freear, William N. Edwards &
Co., Ft. Worth; William L. Read, Investors Diversified Services, Inc., Minneapolis

&

'

I

Volume 183

Number 5534

.

.

.

The Commercial and Financial Chronicle

(2379)

Sanders-

31

NEWSOM

&

INVESTMENT SECURITIES
1309

MAIN

street

Dallas

Mr. & Mrs. George W. Davis, Davis,

Co., San Antonio;

Skaggs & Co., San Francisco; Lon C. Hill, Central Power & Light
Mr. & Mrs. W. Wallace Payne, First of Texas Corporation, San Antonio
C. NESOM BURT

JOHN M. HAMILTON

Over

Thirty Years Experience in

TEXAS MUNICIPAL BONDS
Underwriters

Local

Distributors

—

Dealers

—

Corporation Securities
Funds Shares

Mutual

Burt, Hamilton & Co., Inc.
Successors

C.

to

N.

Burt

&

Company

Kirby Bid?., Dallas 1, Texas
RAndolph 8733—8734
West

Texas

Bell Teletype—DL 992

Representative—'William S. Hamilton

Corporate Manager

UNDERWRITERS

James

A. Russell, Van Alstyne, Noel & Co., New York City; Mr. & Mrs. Manley A. Hagberg M. A.
Hagberg, & Co., Inc., Dallas; George W. Davis, Davis, Skaggs & Co., San Francisco; Frank H.
Hunter, McKelvy & Company, Pittsburgh; Dean Guerin, Eppler, Guerin & Turner, Dallas; Fred W.
Fairman, Jr., Bache & Co., Chicago; Avery Rockefeller, Jr., Dominick & Dominick, New York City

—

A. K. Choate

DISTRIBUTORS

—

DEALERS

—

TEXAS
MUNICIPAL

BONDS

CORPORATE

STOCKS

UNLISTED

LOCAL

&

BONDS

&

SECURITIES

R. A. UNDERWOOD & CO.
Incorporated

MERCANTILE
Bell Teletype

BANK

BLDG., DALLAS

DL 492

1, TEXAS
Riverside 9295

Representatives

Dealers

—

—

Belton

—

Edinburg

Distributors

Corporate
Bonds & Stocks
Avery Rockefeller, Jr., Dominick & Dominick, New York City; Richard B. Walbert, Blyth & Co., Inc.,
Chicago; Charles C. Pierce, Rauscher, Pierce & Co., Dallas; Hal H. Dewar, Dewar, Robertson &
Pancoast, San Antonio; Judson S. James, Judson S. James & Co., Dallas; Murray A. Hansen,
Investment Bankers Association of America, Washington, D. C.; W. Perry McPherson,
Merrill

Lynch,

Pierce,

Fenner

&

Beane,

Dallas

Perkins, Clark & Company
Incorporated

802

Adolphus Tower

DALLAS

2, TEXAS
Teletype—DL 481

Telephone—STerling 4531

SCHNEIDER,
MEMBER

BERNET & HICKMAN, INC.
NEW

YORK

SOUTHWESTERN

DALLAS

ichard

Blyth & Co., Inc., Chicago; Mr. & Mrs. Walter Sorensen, Rotan, Mosle & Co.,
Mrs. Fuller H. Harrington, Harrington & Co., Jackson, Miss.; Mr. & Mrs. Russell
<ft Co., Kansas City, Mo.; Taylor B. Almon, Rauscher, Pierce & Co., Inc.,
Dallas; Joe Binford, Good body & Co., Dallag

B. Walbert,

louston;
Siefert

Mrx &
Stern

Brothers




STOCK
LIFE

EXCHANGE

BUILDING

1, TEXAS

The Commercial and Financial

a
vehicle for the validation of
in time warrants.
(3)
General Validating Acts.
cooperation with a working com¬
mittee
composed of representa¬ Our efforts on this which are, of
tives of the League of Texas Mu¬ course, customary at each legis¬
nicipalities, and the Association lative session will be coordinated
of School Business Managers and with the several firms of munici¬

A great deal of

venes.

Continued from page 24

been

Problems and Activities of
Texas Securities Dealers

the

devoted

lot

a

of

and

time

a

appreciation for his business, but
let of money to make such a pro¬
I tell you that none of these things
effective.
We decided to
will be as effective as furnishing gram
him routinely as published with a abandon that program although it
may
be
good
business
to revive
"Texas Municipal Report" on each
block of bonds in his portfolio it later on. In the meantime I
which you have sold him. I know am your sole paid public relations
whereof I speak because I have man, and I can tell you that I
we
are
making definite
talked to many of your customers. think
I dislike to
As I am sure you know, "Texas strides in that field.
matters
in
Municipal Reports" have been ap¬ mention legislative
proved as adequate credit file in¬ connection with public relations
formation for banks, the National because some of the leading lob¬
Bank Examiners, the State Bank byists in Austin call themselves
Examiners, and the Federal De¬ public relations counselors, and
Insurance Corporation.
And at this point let me explain

posit

important policy decision
made by your Board
concerning just who

very

which

was

of

Trustees

is

eligible

to buy these

"Texas

pointed

purchase

to

lowed

.

.

Thursday, May 17, 1956

.

of

Council

our

the term "lobbyist," a term

publica¬

self-supporting; but
Trustees made a

tions are not

of

Board

wise decision: Customers of
dealers should ask those
dealers as a favor to secure for

During the 1955 session of the
Legislature
but

got off to a late

we

still

were

we

and

screen

many

fold.

able

to

report

ing will be by medium of "Texas
Bond Reporter."

I indicated there
those few larger institutions
course, as

for

subscribe

tions

they pay the
price for them as do dealer
but

direct,

same

members.

:

also

We

our

among

our

"Moody's

Service" which,
a

makes

a

a

Actually

session.

we

able to get

We changed
application,
but it is being extensively used
and effects savings for all of us
as
well as the issuing munici¬

a

bill prepared by

it.

it somewhat for local

government concerned a copy of
the report.
We transmit it with
a letter which says in it: "This is
a
service supported by the mu¬
nicipal securities dealers of Texas
which has as its objective the

improvement of the credit stand¬
ing of all public borrowers within
the State through dissemination
of credit information." I wish you
could read some of the acknowl¬

receive of
these letters.
You would realize
the
effectiveness of this little
phase of our public relations pro¬
gram in the appreciation which
is expressed by the public offi¬
cials.
We frequently receive, on
your behalf, expressions of appre¬
ciation
from investors for the
thoughtfulness of Texas dealers in
providing current financial in¬
formation on their securities.

What is

was

passed the Fac¬
simile Signature Bill and we are
indebted to the Washington Of¬
fice of IBA for a draft of such

pared we mail to each responsible
fiscal officer of the unit of local

Public

it

anything passed

to get

1955

the

were

profit on it.

that

able

were

am

edgments

Acts

late start

our

little short of miraculous that we

going to turn now to the
field of public relations, but let
me tell you how our publications
do us all some good in that field.
As
an
example, each
time a
"Texas Municipal Report" is pre¬
I

to

Due

at

number

Investors
incidentally, pays
higher rate than do other sub¬
scribers
due
to
the fact that
Moody's is allowed to make the
freest use of our information. And

subscribers

Legislative

publica¬

who

we

Relations

public relations? There

pality.
legislation which

Another bit of

sponsored is that which I still
call
the
"Knickerbocker
Act"
which allows the issuance of re¬

we

bonds without the can¬
of
outstanding
called

funding
cellation

funds

provided

bonds,

de¬

are

posited with the State Treasurer.
I know that this is widely used
and that it is a convenience to all
concerned.

also

We

had

made

which

Texas banks

act

system rev¬
portfolios of

the

in

bonds

enue

part in the

a

utility

eligible to secure the

deposit of State funds.
Our 1957 Legislative program
is not an ambitious appearing one
because we would much prefer to
select two
of

Board

or

three

bills,

Trustees

as

your

already

has

done, to concentrate on them and
see them enacted than to sponsor
a

half dozen

and

see

pieces of legislation

them all fail from lack of

attention.
The

lected

Board
the

of

Trustees

following

as

has

sez

the most

urgently needed pieces of legisla¬
tion:
j".
(1) A bill to correct inequities

high flown defi¬ resulting from the operation of
the statute which grants to the
nitions for it, but the one that
State Board of Education an op¬
I like best is
"doing the right
tion on eligible bonds.
I might
thing and getting credit for it."
are

a

number of

embarked on what
public relations
program. We engaged public re¬
lations counselors but we found

Last year we
I

call

a

small




under study

(4)

We

expect

to

cooperate

Com¬
mittee if it decides to sponsor the
with

the

Water

Resources

drafted.
Practices

Now what else besides

tions
your
is

and

public

Council been doing?

one

field

of

effort

I want to report to you
you

publica¬

relations

know

though

little

many,

many

on

has

There
which

and which

about

hours

even

have

are

now.

organization

are

Board

been

In
each
of the
ten
meetings
subdivisions whose districts and has in mind spon¬
eligible during any soring some restrictive legisla¬ which the Board of Trustees has
held
since
January, 1955, several
week of the entire 52 weeks of tion with respect to the creation
the
year
rather than just six of that which I think is justly hours have been devoted to the
study
of
committee
reports deal¬
weeks of the year as is the case called
"bald
prairie
districts."

the dealer's own
supported by his to chart their progress from week
own money, the report containing
to week and at the end of the
current financial information in¬
session to publish a digest of all
dicating the security in the bonds those enacted. A similar screen¬
which the dealer had sold.
For
ing service will be re-established
the dealers of Texas this policy
for the 1957 session and report¬

them, i.e., from

Of

State

already

Ethics and Standard

municipal

bonds

connotations.

all bills in¬
troduced which appeared to have
an
interest to our industry and

off

the

incorporated into bills which

suggested set of operating pro¬ financing of a Statewide water been devoted to it. That is the
would result in the program again in 1957, and it is drafting of a code of ethics and
standard practices; guide-posts, if
purchase or waiver of new issues my understanding that that com¬
of eligible bonds between the bi¬ mittee
will do
so.
The Water you please, which we have needed
in this business for longer than
monthly meetings of the State Resources Committee is studying
Board of Education.
This would the
situation
with
respect
to I have been in it, and that, in¬
result in the sale of bonds by water control and improvement cidentally, has been 22 years.

which

start

pay

within

Super¬
committee
ap¬

have

cedures which

today has come to have unsavory

Texas

undoubtedly

A

pal bond attorneys in Texas.

been

a

not

very

will

effort has

matter

These things are going to mean ing with the many subjects which
J
In
trouble to all of us unless the such a code should include.
A bill to discourage ^nui¬
becoming known as just another sance suits filed to harass the brakes are applied. As your rep¬ addition to this the individual
have
spent
countless
Austin lobby amounts to a near issuance of bonds, and again we resentative I have already given Trustees
hours
in their own
offices be¬
phobia with me.
are
indebted to the Washington some testimony at hearings con¬
But we must have a positive Office of IBA for a draft of such ducted by the Water Resources tween meetings perfecting com¬
and
I believe that mittee reports.
and dynamic legislative program a bill.
We expect to adopt this Committee
Finally the code is being comof
our
and except that it might be in for local application as to afford some
suggestions have

business

this

because, as

already said, our

I have

the

reports.

our

We needed the money

this

of Education now has

Reports."
They are
sought after by banks, a number defense of a threat which strikes
of our State Departments,
and at the very foundation of our
several
institutional
investors. industry, may Heaven grant that
Shortly after the reports became our efforts with legislative mat¬
known
and had been
accepted ters shall be limited to those for
we
were
beseiged by inquiries the mutual benefit of the issuers
from those who would like to ob¬ of municipal bonds and our cus¬
tain
them.
The question was tomers, the purchasers of munici¬
whether or not these investors, pal bonds. Only by such a course
principally banks, should be al¬ can we avoid being branded with
Municipal

to

Association of School

intendents.

took

it

that

a

Chronicle

(2380)

32

add

that

vorable

thing
even

the

that

chances

we

will

appear
see

fa¬

some¬

accomplished in this vein
the Legislature con¬

before

(2)

WHAT

MAKES

CHESSIE'S

Volume 183

Number 5534

.

.

.

pleted and it will be unwrapped

settled he had this to say:

within

Council

nothing
in the

few

a

weeks.

else like

it

There

in

is

existence

country today. I think

you

it

then

of Trustees

has

au¬

ard
use

which

code

by

to

I

working
called

the

on

set

a

of

Texas dealer.

a

Sample copies

available to all of you
The

Council

name

in

born

was

atmos¬

an

I will call tools of the trade.

phere of true democracy and be¬

These

fore

model

adoption

have

a

will

be

that

until

will

members

to

vote

it.

on

It

released

for study by all
long, but present plans

before too
are

all

chance

it

the

will

annual

voted

be

not

meeting

in

on

Grievances

mention

should

in

passing

for handling
grievances. I am glad to be able
to say to you that during the 16

existing

procedures

months of the Council's existence

there

have

been

only two

small

former skeptic of the

ness

of

the

whole

effective¬

Council

idea;

however, when his grievance was

things
the

with

preparation
and
the

fiscal

for

which

You

are

have

urged to use the model

circular forms

in the

circulars

your

is

agency

you

furnished.

been

in

of fiscal agency

use

the

as

circulars

forms

From

preparation
offices. The

contract forms

whenever

recommended

sible.

of

number

the

would

say

that

is

There

shortly
the

and

tool

which

is

even

This is

printers.

it. All of my

I

a

proached

its

to

stand¬

serving

on

Board

that I have

say

board

a

seen

fort

now

who

adult life have been

truthfully

can

never

re¬

the

men

spent in continually meeting with
boards of one sort or another and
which

seriously

duties as

devoted

as

ap¬

much

ef¬

has the
of Trustees of your Coun¬
its

problems

as

cil.
Most

been

of

19

the

have served or are now

which

will receive very

though I have al¬

and

Trustees

of

present

another

trade which you

is

attentive

an

run over my time. I can¬
close, however, without pay¬
ing sincere tribute to our Board

and

to be useful.

proven

at

have

they

been

even

pos¬

quests for these latter which we
have
received
in
our
office
I

grievances. One of these involved
a

for

contracts

of

that the code will incorporate the

forms

offering

standard

Oc¬

tober.

I

of

such

are

have

You

but

compulsory

audience

better

a

ask

them

to

Board

They ask
have

all

no

members
are

here

of

our

today.

credit for what they

done, although they should

stand

and

the

of

as

I

receive the

call

their

names

ovation which is

Bond Club of N. Y.

names

of those who have already served
and

are

Receives New Slate

serving: W. Wallace

now

ton;

not

which

of

won't

not

is

form

use

urged whenever possible.

lack

this

I

that, but I will call the

ready

week.

a

guide-posts the Council has pro¬
vided a number of those things
the

of

them.

due
do

W. Travis Sikes; D. E.
Walton; Russell R. Rowles; Louis
W. Stayart; Charles L. West; R.
E.
Whitlock;
W.
E.
Knicker¬
bocker; W. C. Jackson, Jr.; Wil¬
bur H. Frederking; Lockett Shel-

within

thority under the bi-laws to adopt
the code for compulsory observ¬
ance
of
all
members, but the

for

for

Letter

Account

of

form

by bidding accounts managed

should be

addition

In

Board

has

"If the

anything else,
already proved its

does

worth to me."

will like it.
The

never

Payne;

Robert J. Lewis of Estabrook &
Co. has been nominated for Presi¬

coming

the

G

for

I

have

place

very

Field

GROW?

is

be

held

the

Sleepy

t

a

bigger, better railroad.

of

Stock Exchange,

Your

new

auto

Frederic
O.

H.

are

P.

partner

Barnes,
&

Peet

Co.,

Kansas

liam

zero, your

lot of

speedometer does still register

brand

new car

has already done a

traveling. For automobiles aren't made

from Ohio.

Castings and steering gears from

place—they are made in many, and
Chesapeake and Ohio is an essential link in
the "assembly line" that brings the parts to¬

ferry fleet. Chesapeake and Ohio in Ontario

gether.

Altogether over 2,000 items go into the mak¬
ing of an automobile. Everything from acetates

in

one

To the

great

automobile plants at Detroit,
chemicals,

Flint, Lansing, C & O brings glass,

plastics from West Virginia and Michigan,

| steel from Buffalo, Chicago and the Ohio
River

Valley. Spark plugs, paint and rubber

performs

a

automobile

Governors for the first

City,

zippers is manufactured in

tory,

ton,

over a

moving on precise schedule, take the
time-saving C & 0 Trainferries across Lake Michigan
between Ludington, Michigan, and the Wisconsin ports
of Milwaukee, Manitowoc and Kewaunee.

together its 1956 expansion program amounts
to $100 million—all for improved transporta¬
tion services.

J

a

portfolio of pictures of Chessie and her

family? Write to:

^ »""*««

While

sisted in

Railway

,

Clark Associates Opens

Drive,
3809 TERMINAL TOWER,




CLEVELAND 1, OHIO

at

North

to engage

business.

Partners

Clark, Norman Slott,
5. Gross, Jr.

Aaron

he

of

served

five

as

one

businessmen

to evaluate the

The

Bank

of

a

ap¬

United States Aid

America

of

credited

mist

econo¬

Miguel

Cuaderno,
Sr.,
Governor
of
the
Central
Bank
of
the
Philippines, with

the country's policies in
of economic recov¬
and development.

guiding
its

program

ery

has

"Theirs

been

policy

a

and determination,"
stated, "as they have un¬

courage

Grove

dertaken to free themselves from

complete dependence on exports
of coconut
products, sugar and
hemp and to produce a larger pro¬
portion of required manufactured

goods."
also

Grove
1

Philippine

pointed

industry

that
is pro¬

out

now

ducing glass products, plywood,
some textiles,
clothing and sacks
and
is establishing many other

manufacturing

C.

and Henry

iron

copper

industries.

ore,

chrome, nickel

and

also are being developed,

he stated
After

Roxbury

in a securities
are

central bank¬

Program in the Philippines.

of

Cal.—Clark
has been formed with
HILLS,

404

a

The tremendous mineral resources

(Special to The Financial Chronicle)

offices

dis¬

condi¬

pointed by President Eisenhower

M.

Monday, June

drafting

1953

In

group

Joseph P. Brown, Arch C. Doty,
George
F.
Noyes, Leonard
J.

Associates

Grove

economic

ing statute and in revising exist¬
ing banking legislation.

Nominating
report are:
Dougall,
Chairman;

BEVERLY

Manila,

saysay.
Grove first visited the
Philippines in 1948 when he as¬

light

hesapeake and Ohio

to

&

the

4, 1956.

in

current

cussed

Committee issuing this

change will be held

reserves

G.

R.
Doelz of Minneapolis and Edwin
R. Waldemer of St. Louis.
The annual election of the Ex¬

like

reduction in dollar

dangerous levels.

of

Chancellor

without resort to in¬
heavy borrowing abroad

complished
flation,

Louis.

of

important, > Grove

Particularly

pointed out, is the fact that the
country's recovery has been ac¬

Co., William H. Morse, all of Chi¬
cago; Lloyd O. Birchard, Prescott
&
Co.,
Cleveland; Charles L.
Grandin, Jr., Piper, Jaffray &
Hopwood, Minneapolis; and Harry
Theis of Albert Theis & Sons, Inc.,
Members

been

remarkable."

Burdick,
&

R.

post-war

has

tions with President Ramon Mag-

Burge

Paidar, all of Chicago; Daniel
Hawkins of Cleveland, Paul

d you

economic
astounding,"
Grove said, "but the prospects for
greater growth are even more
"Philippine

Hollins,

James

eco¬

in the Philip¬

reported by David L.

was

progress

Joseph E. Dempsey of Dempsey

St.

Automobile parts,

John

Billings,

W.

News, Virginia, a $3 million addition to coal

and going! Al¬

Ball,

Cleveland;

of

of

tempo

the Far East.

Vice-President, J. M.
Dain & Co., Inc., Minneapolis and
Jerome
F.
Tegeler, partner of
Dempsey-Tegeler & Co., St. Louis.
Reuben Thorson, Chicago senior
partner of Paine, Webber, Jack¬
son
& Curtis, was named Chair¬
man
of next year's Nominating
Committee,
with the following
members of the committee: John

along C & O's 5,100 mile system, things
happening; a $5.5 million classification
yard at Russell, Kentucky, to speed merchan¬
dise freight. 130 new diesel locomotives. 8,000
coal cars. At its Atlantic ocean port of Newport

Chessie's railroad is growing

time were

Peterson,

are

handling facilities and a new $8 million bulk
cargo pier will mean better and faster service
for importers and exporters.

of

partner

Bank.

Grove, Bank of America econo¬
mist, upon his recent return from

represented; John M. Mars-

Kraus

All

Am

pines

or

hundred industries find new sites
in Virginia, West Virginia, Kentucky, Ohio,
Indiana, Michigan and southern Ontario.
helps

accelerated

An

nolds, partner of Benj. D. Bartlett
& Co. of Cincinnati, Ohio, which
is the first occasion for this city
to be

Chemi¬

of

Renchard

S.

nomic development

Jr., partner of Harris, Upham &
Co.
Irving E. Meyerhoff, partner
of Freehling, Meyerhoff & Co. and
Edward F. Thompson, Jr., part¬
ner of Lamson Bros. & Co., were
renominated to a second term.
New members of the board from
other cities were Joseph B. Rey¬

Chessie's terri¬
and C & O is progressively expanding its
capacity to better serve these Various indus¬
tries. At the same time Chesapeake and Ohio's
industrial development program each year
to

members of

Philippines Economic
Development Reported
At Accelerated Tempo

of

partner of Ralph W.
Davis & Co., Edde K. Hays, VicePresident
of
Central
Republic
Company, and Gerald V.

new

cal Corn Exchange

Scott Davis,

similar service for the Canadian
industry.
v/

Treasurer.

B.

William

succeeding
Guybert
M.
Phillips,
partner
of
Caldwell,
Phillips Co., St. Paul, Minn.
Nominations to
the Board of

Saginaw. Wheels from Lansing. From Mil¬
waukee come frames aboard C & O's Train-

of Dom-

Jr.

Dominick for

Chappell of The First
Corporation, Sydney G.
Duffy of Blyth & Co., Inc., and

year,

What if the

suc¬

Boston

Mo., was nominated for the office
of Vice-Chairman, to serve one

old -Friends

Rockefeller,
&

Nominated for

by Chancellor Dougall, Chairman
of the Nominating Committee.
It
was
also
announced
that

Chessie

and

to

the Board of Governors are: Wil¬

announced

was

nomi¬

been

Robert C. Johnson

Kidder, Peabody & Co. has been
for
Secretary
and

Avery

Midwest

the

it

Lewis

nominated

—

of

Board

has

Vice-President

ceed Mr. Lewis.

office of Chairman

for the

the

Co.

&

for

nated

"Be

George E.
Barnes, partner of Wayne Hum¬
mer & Co., Chicago, was renomi¬
nated

J.

Robert

Emerson of Morgan

Sumner B.

Stanley

kind to each other."

CHICAGO, 111.

Coun-

y

N.Y.onJune8.

Receives Nominations

of a series telling what Chesapeake and Ohio

at

Club,
Scarborough,
r

inick

doing to make this

to

Day

Hollow

Midwest Stock Exch.
AIL ROAD

Club

Bond

repeat these words of advice with
which the TV star, Gary Moore,
programs:

and

meet¬

will take
at
the

ing

there, so from where I sit in this
muncipal bond picture in Texas,
and it is a unique spot, let me

each of his

The

annual

master,

nor

closes

Walker

Co.

election

and while
accumulated enough

not

H.

g e

H.

&

worldly goods to qual¬
ify as a senior statesman, I have
accumulated more gray hairs than
a
lot of you younger fellows out
years

e or

G.

time

long

a

year,

Walker, Jr. of

but I have been around this busi¬
ness

New

of

Club

Pond

the

succeed

to

M.

admonish

not

does

The

for

York

Beissner; Baker
Duncan; John M. Hamilton; W. A.
Jeffers; Arnold J. Kocurek; Wil¬
liam F. Parvin; Eugene D. Vinyard; M. E. Allison.
I am your servant; a servant
Henry

of

dent

of

One

33

(2381)

The Commercial and Financial Chronicle

visiting

the

Philippines,

Grove was in Thailand and

Japan,

conferring with Bank of America
executives and economic officials
of

the

countries.

The Commercial and Financial Chronicle

(2382)

34

Mentnlil* Mm

^

.

.

.

Thursday, May 17, 1956

I <Mf

Olif

IV ft

TEXAS
Municipal Bonds
mm

Wk////^

Mr.

Frank

giver♦M,-4w»r
Mercantile National Bonk
Teletype 01457
Dauas,

8ond
xmw

Department

SANA

Witt

TO

,

J.

McNeel,

R.

Mr. & Mrs. Harold J. Sigler, Mr. & Mrs. Leslie L. Lentz,
Jr., Mr. & Mrs. W. E. Jauer, and Dion R. Holm, Jr., all
Lentz, Newton & Co., San Antonio

Newton,

Mr. & Mrs.
cf

texas

PMNC1PAI

CI TIBS

¥

-

mmP'/'

P.

Mrs.

&

'

If*
Specializing

☆

☆

In

Texas Municipal
☆

Bonds

☆

We offer facilities

developed by

many

of serving buyer and seller of these
securities. Offerings substantiated by
comprehensive portfolio of our, own

years

☆

☆

investigation.

Carter, First of Texas Corporation, San Antonio; Victor H. Hardin, Russ & Company, Inc.,
Antonio;
Alan C. Snodgrass, First National Bank, Ft. Worth;
Edward A. Jilek, Schneider,
& Hickman, Inc., Dallas; William
Beinhorn, Jr., Russ & Company, Inc., San Antonio

Weldon

San

Bernet

Established 1923

☆

☆

McCLUNG & KNICKERBOCKER
505 Texas National Bank Building

HOUSTON
Bell

2, TEXAS

Teletype HO 298

CApitol 3-4583

☆

☆

*9

m

TEXAS
MUNICIPALS

CORPORATES

Eddleman-Pollok Co.

Mr.

Mrs.

&

Shearson,
Mr.

William

Hammill

&

FIRST NATIONAL BANK BUILDING

HOUSTON 2,
Teletype HO 213 and HO 261




&

Mrs. John

Porter, Dittmar & Company, San Antonio; Mr. & Mrs. Jake T. Martin,
Co., Dallas; Mr. & Mrs. E. W. Franklin, Dittmar & Company, Dallas, Tex.;
III, First National Bank in Dallas; Mr. & Mrs. M. M. Hatcher,

C.

B. Clayton

First

National

Bank

in

Dallas

TEXAS
Telephone CApitol 8-1427

Fred

J.

W.

Jr., Bache & Co., Chicago; Paul W. Fairchild, First Boston Corporation, Chicago;
Hickman, Schneider, Bernet & Hickman, Inc., Dallas; Joseph R. Neuhaus, Underwood,
& Co., Incorporated, Houston;
John Favor, Southwestern Securities Company, Dallas

Fairman,

Wesley
Neuhaus

Volume 183

Number 5534

.

..

The Commercial and

Financial Chronicle

(2383)

Underwriters

—

Distributors

35

Dealers

—

Corporation and Municipal
Securities
Specialists in Texas Corporation
and

Municipal Securities

Dittmar & Company
Members

N. A. Easter, Central Power
Light Co., C rpus Christi; D. Acheson Keeler, Lord, Abbett & Co.,
Chicago; Mel F. Cooke, Central Republic Company, St. Louis; John G. Parker, Lord, Abbett & Co.,
Chicago; William J. Sloan, Texas Fund Management Company, Houston; Dean P. Guerin, Eppler,
Guerin & Turner, Dallas; Mrs. William Minar; James A. Russell, Van Alstyne, Noel & Co., New York
City; William B. Eppler, Eppler, Guerin & Turner, Dallas; John W. Coles, Jr.,

Texas

Fund

Management

Company,

Midwest

Stock

Exchange

803 South Texas Building, San Antonio 6, Texas

Telephone—GApitol 7-9311

Teletype—SA 15

Branch Office—Dallas

Houston

X

/"

Rotan, Mosle & Co.
./

\.
MEMBERS
NEW YORK

STOCK

EXCHANGE

STOCK EXCHANGE

AMERICAN

Texas'

first locally

(Assoc.)

owned Stock Exchange member firm

UNDERWRITERS
DISTRIBUTORS

DEALERS

CORPORATE STOCKS and BONDS
Mr. & Mrs. Arnold

J. Kocurek, Rauscher, Pierce &

Co., Inc., San Antonio; H. F. Burkholder, Equitable
Securities Corporation, Nashville; Mr. & Mrs. Edward D. Muir, Muir Investment Corp., San Antonio;
Marquette de Bary, F. S. Smithers & Co., New York; Mr. & Mrs. John Gatti, Muir Investment Corp.,
San Antonio; Gus Nelson, Texas National Corp., San Antonio; David F. Anderson, Muir Investment
Corp., San Antonio; Fred D. Malsbury, Muir Investment Corp., San Antonio

TEXAS MUNICIPAL BONDS
HOUSTON
GALVESTON
BEAUMONT
•

Private

•

Direct Private Wire

•

Direct

New

wire

system

connects

all offices and

Dallas, San Antonio, and

Orleans
to

Clark, Dodge & Co., New York

Wire to Gregory

& Sons,

New

York

*<'/,>i''/V*VM

''A'4''/'

Trading Markets

Y

'

WM

'

Retail Outlets

TEXAS and SOUTHWESTERN
CORPORATE SECURITIES

Reed & Sloan Company
ADOLPHUS
Harry Ratliff, McClung & Knickerbocker, Houston; Claud 0. Boothman, Dumas, Huguenin & Boothman, Dallas; George W. Sparks, Vinson, Elkins, Weems & Searles, Houston; Mrs. Claud O. Boothman;
Edward T. Volz, Rauscher, Pierce & Co., Inc., San Antonio; Mrs. Clarence E. Crowe;
O. V. Cecil,
Merrill Lynch, Pierce, Fenner & Beam, New York City; Clarence E. Crowe, McCall, Parkhurst &
Crowe, Dallas; John M. Mitchell, Caldwell, Marshall, Trimble & Mitchell, New York City

TOWER

DALLAS

•

Teletype—DL 99
Direct Private
Texas
Houston

TEXAS

1,

Telephone Riverside 1686

Wire

Western

San Antonio

to

Wire

Albuquerque

Dealers and

New

York

System

To
Salt Lake City

Denver

Originators

TEXAS MUNICIPALS
AND

SOUTHWESTERN CORPORATE ISSUES
Firm

Bids

Statistical

—

Firm

information

Offerings

glad

y

—

Quotations

furnished

on

request

WILLIAM N. EDWARDS & CO.
FIRST NATIONAL BANK BUILDING

FORT
William

Dobbins & Howard, San Antonio; Mr. & Mrs. E. James Seal, M. E.
Co., Inc., San Antonio; Mr. & Mrs. E. Ray Edsel, Smith, Barney & Cdl, Chicago;
Mr. & Mrs. Henry Keller, Jr., Henry Keller
Son, Ft. Worth

P.
<£

Dobbins,




Allison

WORTH

Telephone—EDison 2-2211

2, TEXAS
Teletype—FT 8032

-

'

36

(2384)

The Commercial and Financial Chronicle

«3?

.

.

.

Thursday, May 17, 1956

ex*!
W

GHAS. B. WHITE A CO.
Rusk

Building

HOUSTON 2,

UNDERWRITERS

-

TEXAS

Bell Teletype

Telephone

HO 322

CApitol 4-7643

DISTRIBUTORS

—

DEALERS

TEXAS

CORPORATION

MUNICIPAL BONDS

SECURITIES

★

#

Philip Sweet, Northern Trust Company, Chicago; John H. Rauscher, Jr., Rauscher, Pierce & Co., Inc.,
Dallas; Robert M. Gardiner, Reynolds & Co., New York City; Mrs. John H. Rauscher, Jr.; Joseph
Neuhaus, Underwood, Neuhaus & Co., Incorporated, Houston; O. V. Cecil, Merrill Lynch, Pierce,
Fenner & Beane,
New York City; Avery Rockefeller, Dominick & Dominick, New York

R.

★

E. Austin, Jr., Walker, Austin & Waggener, Dallas; Lovett Abercrombie, Lovett Abercrombie
Co., Houston; George D. Aldrich, Parker Corporation, Boston; Edward Warren, /. P. Morgan & Co.,
Incorporated, New York;
Nelson Waggener, Walker, Austin & Waggener, Dallas;
Einer Nielsen, J. C. Bradford & Co., Nashville

Frank
<6

Shawell & Company
HOUSTON

CLUB

BUILDING

HOUSTON 2, TEXAS

Teletype HO 339

CApitol 4-7569

Harold

C.

Taylor, Chase Manhattan Bank, New York; Arthur P. Nazro, Parker Corporation, Dallas;
Phillips, Jr., J. R. Phillips Investment Company, Incorporated, Houston; Jack C. Payne,
Securities Company, Dallas; John Jay Fosdick, Eddleman-Pollok Co., Houston; R. A.
Underwood, Jr., R. A. Underwood & Co., Inc., Dallas; Ted Alexander, Texas Bank & Trust Co.,
Dallas; Milton Halpern, Rauscher, Pierce & Co., Inc., San Antonio

Jesse

R.

Dallas

Union

WWWUVWWHWWHUHUHWHWUUWWHHHWV

YOUR CONVENTION PHOTOGRAPHER AT
CORPUS CHRISTI, TEXAS

SAMMY

I3I4-A

S. STAPLES

DIAL

REGAL
COMMERCIAL

and

PORTRAIT

2-3956

STUDIO

PHOTOGRAPHY

Convention Photographs Available From Us.




Boston

Corporation, New York; John S. Weatherston, J. R. Phillips Investment Company,
Incorporated, Houston; John C. Senholzi, Chase Manhattan Bank, New York City

Volume 183

Number 5534

.

.

,

The Commercial and Financial Chronicle

(2385)
5

UNDERWRITERS

DISTRIBUTORS

DEALERS

Corporate and Municipal
Securities

T. E.

Graham, First National Bank, Ft. Worth; Jack F. Perkins, Perkins, Clark &
Co., Inc., Dillas;
Mrs. Edward D.
Muir, San Antonio; Lewis F. Lyne, Mercantile National Bank, Dallas; R. E.
Whitlock, James C. Tucker & Co., Inc., Austin, Tex.; Arthur E. Goodwin, Jr.,
Rowles, Winston & Co.,
Houston; Walter Todd, B. V. Christie & Co., Houston

FRIDLEY, HESS & FREDERKING
Members Midwest Stock Exchange

TEXAS NATIONAL BANK BUILDING

HOUSTON

2, TEXAS

Bell Teletype HO 42

IN
•
Mr.

&

Garrett

Mrs.

John

C.

Favor, Southwestern Securities Company, Dallas; Mr. & Mrs. Steve Denning,
Company, Dallas; Edward D. Muir, Muir Investment Corp., San Antonio; John W.
Panccast, Dewar, Robertson & Pancoast, San Antonio; John P. Henderson,

Telephone CApitol 8-8221

HOUSTON

—

UNDERWRITERS

and

M.

E.

Allison

&

Co.,

Inc.,

San

•

Antonio

DISTRIBUTORS
*

DEALERS

PORTER, STACY, RELL & CO.
INVESTMENT
Bank of the Southwest
BELL TWX

BANKERS

Building, Houston, Texas

HO 435

FAIrfax 3-4101

Mr. & Mrs. Landon A. Freear, William N. Edwards & Co., Ft. Worth; Gordon Crockett, Crockett &
Co., Houston"; Mrs. Timothy H. Dunn; George Dedrick, Joseph McManus & Co., New York City;
Timothy H. Dunn, Joseph McManus & Co., New York City; John Stephens, Perkins & Co., Inc. Dallas

SINCE

1927

I

'.'

UNDERWRITE®*

*

.

IBUTORS

•

BROKERS

•

>

•

,

!

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New Executive Committee „of Texas Group cf IBA:
Taylrr B. Almon, Rauscher, Pierce & Co., Inc.,
Dallas, Chairman; Earl G. Fridley, Fridley, Hess & Frederking, Houston, Vice-Chairman; John P.
Henderson, M. E. Allison & Co., Inc., San Antonio, Vice-Chairman; Dean P. Guerin, Eppler, Guerin &
Turner, Dallas, Secretary-Treasurer; William F. Parvin, Austin, Hart & Parvin, San Antonio, Com¬
mitteeman; W. Wallace Payne, First of Texas Corporation, San Antonio, Committeeman, Ex-Officio




722

HOUSTON

DIRECT

CLUB

PRIVATE

BUILDING

WIRE

TO

NEW

*

W /,

,,?/

% t

-

HOUSTON,
YORK

HANSEATIC

CORPORATION,

NEW

TEXAS
YORK

37

The Commercial and Financial Chronicle

(2386)

38

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MEMBERS
NEW YORK

STOCK EXCHANGE

NATIONAL

AUSTIN

CORPUS

STOCK

AMERICAN

—

CHRISTI

EXCHANGE

SAN

(ASSOC.)

ANTONIO, TEXAS

BLDG., SAN

COMMERCE

OF

BANK

SAN

ANGELO

ANTONIO

<J&w>

(o.
MILAM BLDG., SAN

ANTONIO 5, TEXAS
CApitoI 4-5548

TELETYPE—SA 4

Want

You

When

O N

municipals

texas

SA

CALL

PUBLIC REVENUE ISSUES AND SPECIAL

4

SITUATIONS

Dealers

Distributors

Underwriters

Corporate and Municipal Securities
Natural Gas Securities

Lentz, Newton & Co.
ALAMO NATIONAL BUILDING

Teletype:

SAN ANTONIO 5, TEXAS

SA 45

TelephoneCApitoI

7-2361

Direct

New York
Seattle

Boston
Toronto

Connecting

Minneapolis

Wires

to:

St. Louis
San Francisco
Dallas
Denver
Detroit
Kansas City
Midland
Odessa
Phoenix
Pittsburgh
Tulsa
Victoria
Wichita

Chicago
Los Angeles
Albuquerque
Cleveland
Harrisburg
Houston

Fort Worth

El Paso

Portland

and

New Orleans

Nashville
Salt Lake City

Tucson

Texas National Corp.
Retail is Our Outlet

GUS

NELSON

EDWARD

TRANSIT TOWER
Telephone CApitoI 7-3401




-

H.

KELLER

SAN ANTONIO 5, TEXAS
Ball

Teletype SA 40

Beach

Party

at

Padre

Island

.

.

.

Thursday, May 17, 1956

—

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v

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r-ptMAU™-

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v

■

Volume 183

Number 5534

,

.

.

The Commercial and Financial Chronicle

(2387)

a

fj

growing habit

do ImMneM with the

to

cistest

growing Securities

j^irm

the

in

growing

r

Mr. & Mrs.

George S. Rooker, Keith Reed & Company, Dallas; S. H. Ranson, Jr., Ranson &
Company,
inc., Wichita; Mrs. R. A. Underwood, Jr., Dallas; Mr. & Mrs. Clarence E.
Sample,
Mercantile National Bank, Dallas

Investment

San
Direct

Antonio, Texas
Connectina

and

to

Wires

Principal Financial Centers

RETAIL MARKETS

FIRM

BIDS

MUNICIPAL BONDS
OVER-THE-COUNTER STOCKS

Underwriters of Corporate Issues

Austin, Hart & Parvin
M»mber
NATIONAL

Midwest

BANK

OF

Stock

Exchange

COMMERCE

BUILDING

SAN ANTONIO 5, TEXAS
Mr. & Mrs. William N. Edwards, William N. Edwards & Co., Ft.
Worth; John C. Senholzi, Chase
Manhattan Bank, New York City; Mr. & Mrs. J. Warren
Day, William N. Edwards & Co., Ft. Worth;
Kenneth Drummond, Calvin Bullock, Ltd., St.
Louis; Mr. & Mrs. George B. Buescher, Jr.,
William N. Edwards & Co., Abilene, Texas.

Telephone CApltol 2-1491
Direct

and

Bell Teletype SA 71

Connecting Wires to Dallas and

New

York

fictiie interest-in

Ranson
Successors

&
to

Company,

inc.

the RANSON-DAVIDSON CO.. /AC.

5th Floor Milam

Bldg.

San Antonio 5

•

WICHITA.

KANSAS

MCALLEN. TEXAS

Alec

Brud

B.

Stevenson, Vance, Sanders & Co., Nashville; Jack R. Munger, Keith Reed & Company, Dallas;
Keith Reed & Company, Dallas; Lewis F. Lyne, Mercantile National Bank, Dallas;
Ries
Bambenek, Dallas Union Securities Company, Dallas; John M. Crane, Merrill

Smith,
J.

Lynch,

Pierce,

Fenner

&

Beane,

San

Antonio

'

■

.

UNDERWRITERS

•

■

i

'

v

-

DISTRIBUTORS

•

•

DEALERS

TEXAS
•

Municipal Bonds

•

Corporate Securities

Members Midwest Stock Exchange

Mr. & Mrs. J. R. Dodds, R. A. Underwood
& Co., Inc., Edinburg, Tex.; David Barnes, Ranson
Company, Inc., San Antonio; Mrs. R. A. Underwood, Jr., Dallas; R. E. Whitlock, Jr., Ranson
Company, Inc., San Antonio; John Engstrom, Ranson & Company, Inc., Wichita;
Jodie Kocurek, Rauscher, Pierce & Co., Inc., San Antonio




&

^JPP^®®OTYNATIONAI BANK BUILDING

<£
r

'

39

40

The Commercial and Financial Chronicle

(2388)

In Attendance at Texas
ABERCROMBIE,

A.

Co.

&

Dallas,

CROCKETT,

M.

Houston,
CROWE,

Distributors

Bank

Texas

Dallas,

San

Chicago,
&

Co.,

Inc.

J.

B.

TAYLOR
Pierce

Rauscher,

First

of Texas

Antonio,

San

Muir Investment
San

Antonio,

ANDERSON,

New

Securities

.

Nashville,

Tennessee
&

Research

Corp.

Walker,

Austin

&

BAMBENEK,

New

Securities

Co.

&

San

Knickerbocker
Corpus Christi, Texas
ROLFE
Hess

Houston,
Russ
San

BENZING,

Texas

WAYNE

York,

Calvin

R.

Goodbody

&

St.

Co.

&

York

New

BINFORI), JOSEPH

Joseph

B.

Co.

New

|

CLAUD

Fort

VICTOR

Houston,

BRADLEY
Commissioner

Austin, Texas

ESTES,

Securities

Marvin

Houston,
BRIGHT,

HIRAM

Harris Trust

Chicago,
John

JOHN

Moreland

&

Co.

E.

Kelly

Brown

DaUas, Texas
GEORGE

William

Edwards

Fort

Worth,

&

Co.

Texas

ROLLIN

New

York,

Austin,
San

Dallas,

York
Parvin

&

Antonio, Texas

CARTER,

WELDON

Corp.
San Antonio, Texas
Merrill

O.

Lynch,

Merrill
New

Fenner

&

Beane

New

COLES,

&

Beane

B.,

Ill*

Bank

Texas

W.,

JOHN

Texas

Fenner

York

JOHN

National

Dallas,

i

Pierce,

Fund

Houston,

St.

C'OOLEY,

Dallas

c/o
San

E.

New

COX,

C.

Texas

York

Trust

Louis,

Savings

Lynch. Pierce,
Antonio, Texas

•Denote# Mr. & Mrs.




&

Beane

Dain

York,

&

Lentz-Newton

Allstate

Fort

H.

Dealers

A.

Co.

C.

Dallas,
M.

Dallas,
READ,

Bank

REED,

Co.

National

Corp.

JAKE

Shearson.

Dallas,
»

Texas

Winston

&

Co.

&

Co.

MAUZE,

B.

White

&

First Presbyterian Church
Texas

Antonio,

Bank

Barron
Fort

HARRY

Texas

McNEEL,

Corp.

Yoakum, Texas
P.

Eppler, Guerin, & Turner
Dallas, Texas

i

McCulloch

Worth,

&

First

Co.

New

Texas

PLEAS

York,

Boston

Lehman
New

Antonio, Texas

McPHERSON, W. P.
Lynch,

Dallas, Texas

SAMPLE,

(PERRY)*

Pierce,

Fenner

&

Beane

R.

San

*

H.

York

New

Fund,
New

Phillips

National

Ranson

E.*

Bank

C.

*

San

Bank

Texas

E.

R.

Tucker

&

Co.

Texas

WHITLOCK,

C^II

York

&

R.

E., JR.

Co.,

Antonio,

Inc.

Texas

WOOD, KENNETH H.
J. Cl Bradford & Co.
New

S.*

Investment

SMILEY

Antonio,

Austin,

Inc.

York

JOHN

Texas

L.

James

Yprk

National

Texas

Line

WHITLOCK,

CLARENCE

Mercantile
Dallas,

New

ROBERT

York,

Frost

Co.

Corp.

New

Co.

&

Co.

&

WHITE,

A.

Brothers

York,

Beissner & Co.
Texas

Houston,

SAGE, ANDREW G.

J.*

San

J.

WARREN

York,

Corp.

WATSON, GANIS H.

Co.

&

JR.

EDWARD*

WEATHERSTON,

York

B.

EDWARD

York,

New

Value

Noel

B.,

Morgan

New

New

Waggener

York, New York

Blair

S.*

&

&

Securities

D.

WARREN,

Co.

JAMES

Alstvne,

p.

New

Texas

New

Lentz, Newton & Co.

Merrill

J.

Chronicle'

York

Winston

Van

Co.

Inc.

TOM

Houston,

AVERY

New

&

RUXTON,

&

Texas

WALTON,

York

GEORGE

RUSSELL.

GEORGE

McCULLOCH, BARRON*

Worth, Texas

Dallas,

McDowell

and > Financial

Keith

Rowles,

Texas

Illinois

WARREN,

ROOKER.

Houston,

Co.,

&

Moroney,
&

New

Reed

of

Texas

RICHARD

Equitable
Inc.

VINCENT

York,

Pierce

Austin

Chicago,

ROWLES, RUSSELL R.

Co.

Texas

DR.

Blyth

JR.*
Co.

Dallas, Texas

MASTERSON, NEILL T.*

San

E.

T.*

Hammill

Texas

Minister,

Texas

New

H..
&

Illinois

F.

Co.

Texas

WALKER.

ROCKEFELLER,

Investment Corp.
Corpus Christi, Texas

Walker,
Dallas,

WALBERT,

Services,
Minnesota

'.'Commercial

D.*

WAGGENER, NELSON*

Knickerbocker

&

Diversified

New York,

Institute

T.

E.

San Antonio,

Blosser

Co.

Texas

Investment

Rauscher,

JOHN J.

REILLY,

Bank

Texas

VOLZ,

Texas

Chicago,

F.

&

Dallas

W. L.*

Straus,

Illinois

Co.

A„ JR.*

EUGENE

Central

Inc.

JOHN

Minneapolis,

C.

C.

HAROLD

Antonio,

JR.

Pierce

Investors

Muir

MARTIN,

DEAN

National

J.

&

York

New

Texas

VINYARD,

III*

Cq.

Tex^s

RAUSCHER,

ARTHUR

Wiesenberger

VAGTBORG,

HARRY

McClung

Texas

Co.

Underwood

A.

San

Kansas

Houston,

MALSBURY, FRED D.

York

H.,

Co.,

Rauscher,

Allyn &

Houston,

GUERIN,

c/o

W.*

LEWIS

S.

&

Southwest Research

Corp.
Texas

&

RATLIFF,

Co.

Texas

RICHARD

Mercantile

Co.

New

Ranson

Worth, Texas

Chicago,
LYNE,

R.

>

EDWARD,

of

Co.

York,

Dallas,

Mosle &

RANSON,

Co.

York

Insurance Co.

Fort Worth

C.*

Houston, Texas

Skokie, Illinois

C.

&

Rotan,

Council

E.*

UNDERWOOD, R.

Texas

Antonio,

Wichita,

&

Antonio,

New

National

RANDALL,

Co.

LENTZ, LESLIE*

LONERGAN,

National

Texas

&

Arthur
Co.

Co.

Antonio,

(BUCK)

Pittsburgh, Pennsylvania

JR.

Investment

Co.

Texas
A.

Thomas

POULTON, CHARLES H.

Minnesota

New

R.,

WILLIAM
&

Christie

Co.

Texas

Dittmar

J.

&

Harry Downs

Charles

of

PORTER,

LAUGHLIN, E. BUDD*

Austin,

First

Fenner

WILLIAM
M.

Minneapolis,

San

ROBERT

CRANBERRY,

M.

Merrill
San

J.

&

E.

Advisory

UNDERHILL,

Phillips

Houston,

Antonio, Texas

LAU,

Frederking

D.

&

T.

R.

W.

Houston,

C.

Pierce

E.

Texas

B.

V.

Bank

Securities

WALTER

t

Texas

PHILLIPS. J.
J.

Texas

Gibson, Spence & Gibson

Fort

Bank

Missouri

JOHN

&

Investment

GRAHAM,

Beane

San

Antonio, Texas

First

&

San

New

Funk

Houston,

CLARK

CRANE,

<

Association of Securities

Rowles,

Group, Inc.

&

KOCUREK, ARNOLD J.*
Rauscher, Pierce & Co.

'

GOODWIN, ARTHUR E., JR.

JOHN B., JR.*

York, New

Harris
St.

S.

Antonio,

Distributors

Houston,

Co.

WALLACE

York,

Fenner

San

GIBSON, J. P.

Trendex

CORNELL,

Co.

Antonio, Texas

Muir

Dallas, Texas
COPPOCK,

Securities

CRESTON

San

Rupe & Sons

Pierce,

KNICKERBOCKER, W. E.
McClung & Knickerbocker

GATTI, JOHN*

GEORGE*

Lynch,

Corpus Christi, Texas

ROBERT

TODD,
Co.

RUSSELL

LYKLEMA, WALTER

New

Chicago,! Illinois
COOPER,

Merrill

&

C.*

York

Texas

TOMASIC,

CHARLES

Dallas,

KIRKLAND,

i

R.

Stewart

Co.

Manhattan

New

Municipal

Texas

Rauscher,

York,

Austin,

ALLISON

PIERCE,

Texas

Chase

New

TINSLEY,

Co.

S.

Trust

HAROLD

The

Dallas,

JR.

F.,

Co.

&

Illinois

Southwestern

Inc.

Illinois

Paso,

Northern

TEMPLE,

Co.,

E.

Wellington Fund, Inc.
Dallas,

Corp.

MILES

Texas

Harold

Winston

Chicago,

Texas

Dallas,

D.

Co.

PHILIP

TAYLOR,

&

PIERCE,

Co.

Jersey

FULTON,

Reynolds

Fund

&

New

CHARLES

Co.

WALLACE*

Perkins

STUART

Trust

Houston, Texas

The

&

Co.

York, New York

SWEET,

Securities

Nuveen

B.

&

Tennessee

STOTLER, ROGER C.*
Co.

C.*

PERKINS, JACK

Co.

El

Edwards & Co.

GARDINER,

|

WILLIAM

Television-Electronics

Long

KIMBALL,

New

Rowles,

Antonio,

PELIKAN,

Illinois

LUCAS, B.

San

Missouri

&

Bankers

&

Texas

ALEX.

Sanders

STEVENSON,
Co.

Texas

W.
of

Chicago,

FRIDLEY, EARL G.
Fridley, Hess & Frederking
Houston, Texas

Creston

Republic Co.

Louis,

X.

Illinois

Hugh W.
of Securities Dealers

Worth, Texas

FUNK,

San

KIDD, GLENN

C"rp.

Washington,

Texas

First

Chicago,

Elizabeth,

Hess

National

JR.*

Management Co.

COOKE, MEL F.
Central

Co.

Houston, Texas

Fort

PAYNE,
System

Co.

Nashville,

E.

Union

John

Forgan

Co.

Dallas, Texas

Texas

Retirement

JOHN

Vance,

JACK

Dallas

&

STEVENSON,

Antonio, Texas

White, Weld & Co.

Texas

William N.

V.

York,

First

&

Perkins

Dallas, Texas

Texas

Edwards

W.

& Gibson

Texas

STEPHENS, JOHN W.

F.

TOM*

PAYNE,

LILLIAN

Chicago,

Dodge

J.

San

Corp.

KEVIN, THOMAS L *

FREEAR, L. A.*

Lynch,

CLAYTON,

Co.

Texas

Fridley,

E.

Dallas, Texas
CECIL, O.

&

FREDERKING, WILBUR

Pierce,

Worth,

KENNEDY,

Texas

Dallas,

First of Texas

CART WRIGHT,

Fort

FOX-MARTIN, MILTON*
The Wellington Co.
Philadelphia 3, Pennsylvania
FRANKLIN, E. W.*
Franklin, Dittmar & Co.

HARLEY

Hart

R.

Spence

Austin,

G.

Galveston,

Hickman

&

ROBERT

Gibson,

& Pancoast

Pauls &

W.

Weems & Searls

Houston, Texas

Co.

W.

Texas

LOUIS
E.

PAWEL,

National

Teacher

Co.

Houston,

Bernet

Antonio, Texas

KELLY,

&

Chicago, Illinois
Louis

Co.
1

Elkins,

SPENCE,

Abbett &

PAULS,

HENRY, JR.*
Henry Keller & Son

FCSDICK, JOHN JAY*

City Bank

A.

Illinois

&

Texas

GEORGE

Vinson,

JOHN

J.

WALTER*

Mosle

SPARKS,

Pierce

Antonio,

Lord,

Bank

Texas

Newsom

WILLIAM

PARKER,

KELLER,

Association

&

Fund

D.

Frederking

National

Houston,

Texas

Antonio,

San

Texas

Glore,

Eddleman-Pollok

New

CARSWELL,

Inc.

Eubank

Southwestern

C.

National

San

Chicago, Illinois
FAVOR, JOHN*

Equitable Securities Corp.
Nashville, Tennessee
First

Texas

Rotan,

Austin, Hart & Parvin

Austin, Texas

Boston

Bache

B., JR.*

BURKHOLDER, II. F.

BUSH,

Texas

Chicago, Illinois
FAIRMAN, FRED W., JR.

Co.

San

PARVIN,

KELLER, EDWARD H.

York, New York

First

Investment

BUESCHER,
N.

Corp.

Dallas, Texas
FAIRCIIILD, PAUL W.

KELLY*

J.

&

Worth,

SORENSEN,

&

Company

Texas

First

Fort

JR *

L.,

Dewar, Robertson

Abbett & Co.

Dallas,

Edwards, Inc.

National

Texas

Illinois

Schneider,

H.

J.

Rauscher,
Houston,

KEITH, NORVAL

FAGAN, PAUL

ROBERT*

E.

Co.

BRUCE*

Co.,

Clark,

New

Savings Bank

Illinois

Nuveen

J.

c/o

Chicago, Illinois
BROWN,

&

Sanders

PANCOAST,

Texas

Chicago,

Waco, Texas
EVANS, CARNOT

F.

&

B.

Charles

W.

Co.

&

Texas

BRINKER,

Lord,

San Antonio, Texas
EUBANK, CHARLES J.*

Corp.

Texas

BRANDENBERGER,
J.

R.

RICHARD*

Equitable

&

Co.

Co.

KEELER, D.

N.*

Wichita, Kansas
EPPLER, WILLIAM P.
Eppler, Guerin & Turner
Dallas, Texas

Texas

Houston,

Antonio,

&

Texas

Television-Electronic

Co.

c/o
C.

Illinois

ALLAN

Co.

SNODGRASS, ALAN

Co.

&

Dallas, Texas
OWEN, A. GENE*

JUST, PAUL A.

Texas

C.

Texas

Ranson

W.

Weems & Searls

Securities

BRADLEY,

Co.

OLIVER,
c/o

WILLIAM A.*

Antonio,

Dallas,

ENGSTROM, JOHN

Vinson, Elkins,

Texas

of

San

Dallas, Texas

BOURLAND,

Worth,

First

Chicago,

Schneider, Bernet & Hickman

York

&

R.

E.*

JILEK, EDWARD

Edwards

ELLSWORTH,

O.*

Dumas, Huguenin & Boothman

BOULDIN,

N.

Newton

Chicago,

Barney

William

Investment Corp.
Antonio, Texas

BOOTHMAN,

San

Ltd.

New

JOHN

&

Bradford

&

Hess

Houston,

Nongard & Co.

Antonio,

Dittmar

C.

Reed

Fridley,

Texas

EINER

P.*

Texas

Dallas, Texas
SMITH, WILHELMINA

Co.

Co.

v

WILLIAM

BRUD

Keith

NONGARD, RICHARD

Co.

Management

Texas

Southwest

Dallas,
SMITH,

Texas

Antonio,

Fund

First

Texas

Newton &

Securities

SMALLWOOD,

& Pancoast

Nashville, Tennessee

Co.

Illinois

JEFFERS,

Missouri

York,

J.

S„ JR.*

&

WILLIAM

Lentz,
Co.

Chicago, Illinois
EDWARDS, WILLIAM

Dallas, Texas
BOLTON, FRED J.*
Muir

JAUER,

Tower

San

&

McManus &

Smith,

& Black

Henry-Seay

San

Transit

EDSEL, E. RAY*

C.*

A.

1707

KENNETH

Bullock,

Louis,

Texas

Chicago,

DUNN, TIMOTHY II.

Dallas, Texas
BLACK,

Underwood

Dallas,

Christi,

Co.

ROBERT*

Houston,

Corpus

NIELSEN,

Television Shares Management Corp.

&

DRUMMOND,

Marache

Granbery,

A.

James

Texas

|

P.

Robertson

J.

&

Texas

SLOAN, WILLIAM J.

Corp.

Antonio, Texas

San

JR.*

Co.

HAROLD

Antonio,

Dallas, Texas

Houston,

(DECKER),

Texas

Southwestern

JOE

Co.

Missouri
LOCKETT*

Newton

SLEDGE,

Co.

NEWTON, FRANK*

Bank

Texas

Judson

JAMIESON,

Edinburg, Texas

Antonio,

New

R.

JR.

A.,

C.

JAMES, JUDSON

Texas

Howard,
Antonio, Texas
DODDS, J. R.*

Frederking

WILLIAM

W.

San

Securities

Dewar,

Lentz,

Southwest

Dallas,

SIGLER,

NEUHAUS, JOSEPH R.
Underwood, Neuhaus & Co., Inc.

Crowe

Texas

Dallas,

■/
Pancoast

&

San

Texas

National

JACKSON,

Texas

Antonio,

Dobbins

W.

&

Austin,

Robertson

&

WILLARD

American

First

B.*

Parkhurst
Texas

IIOUSER, C.

DOBBINS, WILLIAM P.

Co.

&

Co.

York

Co.

Antonio,

PAUL

McCall,
Dallas,

San

NELSON,

Co.

&

Texas

Bank

York

Trust

Louis,

GUS
National

Texas

Co.

Manhattan

New

Texas

NELSON,

&

WILLIAM

Lentz,

American

Dallas,

W.

Co.

JR.

Newton

Antonio,

HORTON,

DIETZMANN, HELMUTII (HAM)
Shearson, Hammill & Co.

McClung &

Fridley,

Co.

HAL

Dewar,
San

Inc.

Antonio, Texas
BARNES, ROBERT N.*

BEINHORN,

San

Texas

DEWAR,

Co.,

San

BEAUDRY,

&

Dallas,

DAVID

Ranson

New

&

Inc.

Co.,

Republic National Bank
P.*

Corp.

Texas

North

EDWARD

Funk

York,

Mercantile

NEIL, WILLIAM H.

Sons

Antonio, Texas

Lentz,

McManus,&

&

IILOM, DION R.,

GEORGE

York,

Garrett

RIES

J.

Texas

Dallas,
BARNES,

Co.

Texas

DENNING, STEVE*

Union

Dallas

&

Dallas,

Chase

New

SHELTON,

Co.

Texas

Parker

The

St.

R.

&

ARTHUR

NAZRO,

Hickman

The

Rupe

Creston
San

&

Dallas,

&

JACK

Reed

Brothers

SHARPE,

Corp.

Antonio, Texas

Keith

WESLEY

Bernet

Co.

Texas

MUNGER,

Inc.

&

Kansas City, Missouri
SENHOLZI, JOHN C.

D.*

Investment

San

Co.,

Dallas, Texas

York

Edwards

Smithers

&

Texas

SCAN*

Dallas

York, New York

Joseph

Waggoner

Texas

J.

HOLLAND,

N.

DEDRICK,

AUSTIN, FRANK E., JR.*
Dallas,

HILGER,

WARREN*

S.

New

Parvin

Antonio, Texas

Allison

Allison

E.

Stern

Mosle &

E.

Muir

Antonio,

M.

San Antonio, Texas
SEIFERT, RUSSELL E.*

Co.

&

Texas

Houston,
MUIR,

Texas

Hugh W. Long & Co.
Elizabeth, New Jersey
SEAL, E. JAMES*

JON

Rotan,

Bank

Dallas, Texas

Co.

Worth,

Dallas,

B *

B.

Austin,

Texas

Moore

Newsom

&

Texas

SCOTT, CHARLES

MURRAY

MOSLE,

Texas

Schneider,

BARY, MARQUETTE

F.

E. II.*
Hart &

Austin,
San

Fort
DE

Sherman, Texas

AUSTIN,

J.

A.*

Inc.

M.
York

New

CAYCE

Murray

FULLER

SAPP,

HAROLD

Hearne,

Missouri

HICKMAN,

York

Fort

MOORE,

Texas

National

E.

San

,

W.*

New

America

HENDERSON, JOHN P.
M.

New

York,

William

W.

Securities

National

Co.

&

McG

Bullock, Ltd.

&

New

DAY,

FRANCIS

ANTHONY,

First

Skaggs & Co.

Blair

Corp.

of

Columbia

HATCHER, MAURICE M.*

Francisco, California
DAVIS, JOSHUA A.

JR.

J.,

Equitable

of

Dallas,

Telegram"
Worth, Texas

MOORE,

Harrington & Co.,

San

Corp.

Assn.

District

HARRINGTON,

Corp.

Jackson,

GEORGE

Davis

F.

Texas

W.

C.

Management

Moreland

York,

DAVIS,

Bankers

Sanders

Co.

JOHN

York,

"Star

VICTOR H.

Antonio,

Dallas,

JOHN

Calvin

Corp.

Texas

DAVID

ANDERSON,

Marvin

DALENZ,
TOM

ANDERLITCH,

Shares

Illinois

Galveston, Texas

& Co.

Dallas, Texas

New

MONROE,

Co.

&

San

CURRIE, JACK

Antonio, Texas

ALMON,

Russ

Crowe

CULLER, GEORGE
Dallas, Texas

E.*

M.

Allison

E.

&

HARDING,

Texas

Television

Co.

Texas

ALLISON,
M.

Trust

&

Co.

&

Texas

MITCHELL,

&

Antonio, Texas

Washington,
E.*

CULBERTSON, JAMES

ALEXANDER, TED

MILTON*

Investment

Co.

Texas

Mosle

Houston,

JESSE A.*

SANDERS,

WILLIAM*

Rotan,

HANSON, MURRAY

G.

Parkhurst

Dallas,

MINAR,

& Co.

Texas

Pierce

Thursday, May 17, 1956

.

Group IBA Meeting

A.*

Hagberg

Rauscher,

Co.

San

CLARENCE

McCall,

Group, Inc.
New York

York,

New

Securities

A.

Crockett &

Hutzler

&

Texas

JACK

A.

HALPERN,

Dallas, Texas

Brothers

Salomon

M.

Dallas,

Illinois

Southwestern

Co.

EDWARD

ACKERMAN,

AIIBE,

&

Texas

M.

HAGBERG,

L.

Allyn & Co.

CRESON, PAUL*

Abercrombie

Houston,

C.

Chicago,

Texas
ABSHIRE, F. 1.*
Lovett

ROBERT

CREEK,

LOVETT

Abercrombie

Lovett

Houston,

.

.

York,

New

York

Co,

Volume 183

Number 5534

Continued

from

.

The Commercial and Financial Chronicle

..

13

page

(2389)

United

States

ments

atomic

these

of

materials

power and the use of radioactive

tracers

been

Need for Long Term
4

which

have

fluid.

Policy

One of the problems about which

cating medium, radioactive mate¬
rials

the fact that government, both in
the United States and Britain, has

along

a

exact

location

control of nuclear fuel. Under such

pipeline

derground

in medicine and

long-term

policy with respect to making
clear fuels

and

nu¬

radioactive mate¬

rials available.

Considering

cal factors that involve the avail¬

ability of nuclear fuel, it must be
that

atomic

power

meanp the fission or splitting of

uranium atoms and that

hydrogen

the fusion

power means

be

cook¬

or

ing together of hydrogen atoms.
This latter fusion process is pres¬

or

Again,

health, the radio¬

tracer finds

numerous

Foundation for Research and Edu¬
cation

it

gives

information

us

great deal of

a

the movement

about

of cholesterol in the blood stream.

These

examples

sentative

only

are

what

of

is

repre¬

being

Considering radiation, which is
another form of atomic energy re¬

der uncontrolled radiation

sibility

we

hydrogen

the

breakthrough

of

tions.

the

On

other

shielding,

example,

for

by,

open

we

a

characteristic that when

sur¬

In

controlled radiation to kill

insects

in

neutrons from the

ter

thorium into useful uranium fuel.
In this process, steam is also pro¬
duced by the reactor for power

that brings about

nomenon

lyst did when it was discovered.
This means that we will be able
to make brand new materials from

out,

available than uranium

been

we

previously

well understand the

can

interest

great

Hydrogen,

in

to

does

involve

not

this

the

on

available

waste

pointed

all

substance.

other hand,

nations.

disposal

the

Its

is

use

radioactive

problems

charac¬

teristic of the other materials. For

this reason,

therefore,

pended

great

a

hydrogen even though
nothing promising with respect to
on

its control is indicated.
Other Atomic Uses

look at

us

of the other

some

applications of radioactive mate¬
rials.

In research in the fields of

agriculture,
cine, there

industry,
are

medi¬
applica¬

and

numerous

tions of radioactive atoms that

usually refer to

tracers.

as

radioactive these materials

detected and traced
whether

tree.

a

metallurgical
able

us

to

in

Being
can

a

the

or

When

determine

used

the

the

in

problems

study

of

because

a

ure

of the rate

There

are

au¬

lubrication
engine

when

total

or

wear.

the field

applications in
of agriculture. A single

example

is

the

tilizers

whereby

tracers

enables

study of fer¬
the addition of
to

us

In

scientists

were

were

able

in

which

from

the

manner

branches
*

science

the

for

determine

industry,

and

into

used, and the
to

study the

the

"killer"

foliage
the

En¬
issued a very
interesting report
on
its nonmilitary
operations.
These are
Commission

their

research

located in the

considerable

Joins

five-year program
appropriation of $200
million is under way to ascertain
which of five different types of
generation,

involving

have

dream

is

reactors

suited

best

to

these

By 1960, we should be

purposes.

able to determine the most prom¬

PORTLAND, Oreg.—Searles G.
Bragg has become connected with

place

a

up

Two With Harry Pon

keen
One

(Special to The Financial Chronicle)

need

only pick up a paper in any
of our large metropolitan centers
to see the drive industry is mak¬

AZUSA, Calif.—Jack A. Lind-

We

have

had

little

the

best

scientific

I believe it is safe to

and

in

found

with

in

minds

to

1

has

Joins

to

this

For

that nuclear developments be¬
ginning today will gradually un¬

say

40

aside

the

reason

we

plots

old

set

have

within

&




HILLS,

now

Company, 404 North Cam¬

den Drive.

Sci¬

or none

,

of $30,000,000 of The Port of New

York

Authority CONSOLIDATED BONDS,

DUE

1986, will be

(E.D.T.)

on

SIXTH

received by th£ Authority at

May 21,

SERIES,

12:45

P.M.,

1956, at its office, 111 Eighth Avenue,

York.

ising approach to power genera¬
tion.
were

795

uranium
mines.
By
1955, their number had in¬

producing
June,

creased to

there

850.

uranium

cashier's

has

announce

products

the

be

can

Karnes

E.D.T.

radioactive

on

that

Each

reactor
for

year,

be

tracers

sold

was

bonds

of

a

certified

check

ratories

of

the

rejection of bids at

or

before 6:00 P.M.,

day.

urer

to be

of the

issued,

may

be obtained at the Office of the Treas¬

Authority, 111 Eighth Avenue, New York 11, N. Y.

to

THE PORT OF NEW YORK AUTHORITY

to
DONALD V. LOWE

the

past
conducted

United

States

become familiar with these

or

$600,000. The Authority will

Authority and of the resolutions pursuant to which these
are

$180,000.

for

accompanied by

amount

Copies of the prescribed bidding form, of the Official Statement
of the

practically all of these countries
request. A few months ago a
Switzerland

the

the acceptance or

on

research

must

in

sold.

County

in Texas is mentioned in the

sent

check

Likewise, in 1955

17 AEC stations where

were

Incidentally,
area

offer

Each

1954, there

June,

six

Chairman
EUGENE

F.

MORAN

Vice-Chairman
HOWARD

tech¬

niques.

S.

CULLMAN

Honorary Chairman

can

May 14, 1956

Calif.—Sam'

with Lloyd Arn¬

THE PORT OF NEW YORK AUTHORITY

Proposals for all

•

Lloyd Arnold

BEVERLY
H. White is

demand.

large

'•1

(Special to The Financial Chronicle)

community advantages these men
women

~'

-■

.

our

want

It

Antonio.

have

we

attracting

Scientists

San

Wilson are!

Harry Pon, 711 North Azusa

Avenue.

that

difficulty

and William F.

strom

ing to recruit scientists.

live

New

;

facili¬

same

industry must face is the
competition for scientists.

ing up lands and resources to a
degree beyond human imagination

a

an

all.

Zilka, Smither

With

varied.

and

of

Zilka, Smither & Co., Inc., 813 S.
place where W.
Alder, members of the San
the products Francisco Stock
Exchange.
and the processes of the future.
An
additional
problem which
must

can

institutions.

respect to reactor types for power

Effective July 1, 1955, the Com¬
to the
In mission charge for radio isotopes
the flow and tracers for research in indus¬

roots.

we can measure

benefit

(Special to The Financial Chronicle)

an

active material

moved

when
are

they

the

six
plant. years, the AEC
interesting example four-week courses in the safe
where, in studying brush clearance handling of isotopes and tracers
in Texas, sprays
containing radio¬ so that the personnel of the labo¬
recall

ties

expansion era in 1855 began open¬

at the time.

you

of

1951, the Atomic

July,

how the fertilizer affects the

I

lems

by the Geneva Atomsmeeting—with the be¬

wear

many

in

—capped

Indus¬
can't do much

the product is manufactured. Sci¬

atomic energy peace-time picture:
"Indeed
you
can
compare
the
events of the past year in atom use
for-Peace

will include 2,200 homes, a shop¬
ping center, churches and schools.
This
is
truly a community of

industry today.

research are hampered
by present-day production prob¬

state¬

in

to

answer

an

energy.

report as one that may be prom¬
down, they
ising.
i
give up particles,of their substance
The Commission has cooperative
vtp the lubricatihgobil. The extlent
of radioactive "pick-up" is a meas¬ agreements with 23 nations and

gradually

are

is

have

We

great area of peace-time use

atomic

In

parts that have been made radio¬
active

we

it

I could go on describing, other
applications involving the tech¬
niques of tracers and radiation,
but the purpose of this paper is

en¬

tomotive field, for example, there
is wide use of radioactive mate¬
rials

where

^

several

development

advanced

Week," Sep¬
that aptly de¬

in

manner

In the

wear.

scribes

1955,

negotiating with

are

other

long been familiar.

be

blood
root

they

processes

in which metals

we

regardless of

they are
pipeline,

stream, a
system of

which

with

•substances

ergy

Let

3,

lease them

already under construction and

we

d^al primarily to point out that this is

effort is being ex¬

research

more

tory.

ment from "Business

tember

will

we

One such laboratory

thinking in a boiler fac¬
It has found that men doing

entists
a

ground.

unique

times

more

quote

is

develop bet¬

chemical reactions just as the cata¬

has

to

may

a long-term
industry so de¬
build its own lab¬

on

an

creative

of the total.

like

sires, it

If

plant varieties. In industry we
can speed
up chemical processes,
and we seem to have found a phe¬

generation. Since thorium is three
as

believe

try has found

AEC cost-type contracts to
$2.44 billion had
awarded.
In
subcontracts,

would

industry

grain, to sterilize food

in containers, and to

transmute

I

We will *

industrial

American

July 1, 1951, to March 3,

about 40%

or

to

oratories and
the

of the problems which face

many

extent vof

been

tell

to

agriculture, for example, we

can use

rounding the uranium reactor core,
core

whole

a

of scientific phenomena
which
we
have not
yet

about

"breeder"

up

proper

area

learned too much.

In other words, thorium has

condi¬

hand, when

bring this phenomenon under

I would like to point out that tho¬

the

1955,
the

unique

We

of

previously, we all re¬
ginnings of world-wide railroad
vividly Hiroshima and
building a century ago."
what happened to human life un¬
We all know how the railroad

new

fuel.

From

to

power,
however, tho¬
rium seems to be the future fuel.

rium is what is termed

number

member

control

power.

done

and what can be done.

scientists it appears that it will be
sometime before there is any pos¬

controlled

out

It can tell us how bones
small business concerns received
in children and in the case
almost $1 billion of this business

grow

ferred

Barring
hydrogen

ap¬

plications.

ently uncontrollable and has had
application only in military weap¬
ons.
In the best judgment of our

of

the

able

lease basis.

asked

industry.

construct modern, air conditioned
laboratories which will be avail¬

Antonio.

call

City for separated research

ence

facilities, for

companies.
in¬
Angus Wynne, Jr., of Dallas,
laboratories, whose
Wynnewood won national
joint-use
facilities,
recreational acclaim is
developing the first
and residential areas*
860 acre residential area which

is being accelerated,
that

reveals

of

un¬

of our work at our own Southwest

of the techni¬

some

remembered

active

one

underwater.

are
are

specific

sion program
and

points

also

been

cludes

nuclear propul¬

aircraft

have

This

providing to help
its place in this

program,

new

the

that

I

skirts

By spotting individual industrial corporations
at intervals
in the power-reactor demonstra¬
can detect its tion
program now stands at 81.

whether it

important, and the industries
a

great

find

own

re¬

far beyond

as

3,000 acres which surround our
non-profit institutions on the out¬

very useful.
radioactive material
are

circumstances, political factors
for

measure

is

Commission

the industry

in

the thickness of paper or steel and
control it as necessary. As a lo¬

industry'in general is concerned is

asking

previously

harmlessly mixed
Likewise, we can

our

world

a

you
briefly about Science City
which is being developed on the

of materials in

materials in medical, agricultural,
and industrial research.

us

and

Science City

had been made.

represented by their processes and
products concerned with nuclear

were

atom

price, indicating lower
production and greater
availability of these materials for
research
purposes.
As of such
date, approximately 70,000 ship¬
of

pipelines by meas¬
The annual report of the Atomic
uring quantitatively the flow of
Energy Commission also describes
minute quantities of radiocative
the technical services
that
the

corporations

the

ability to foresee what
the future holds.

cost

Investment Banking Targets

within

sources

previous

Evolutionary Atomic Age and

for

try, agriculture, and. medicine was
the established

fold

reduced to 20-% of

41

I

42

The Commercial and Financial Chronicle

(2390)

Federal Estate and Gift-Taxes

Ex¬

Continued

from first

Thursday, May 17, 1956

.

..

page

plained, Including Estate Pian-

Edition—Commerce

ning-—1956

What's the Outlook foi

North
Chicago 4,

Clearing House, Inc., 214

Avenue,

Michigan
111.

(paper) $3.

After

having traded in a fairly
range for a year or more,
while most other similarly situ¬
ated
rails
had
advanced fairly

narrow

caused

closed

of leadership in the

and

the

spite

sharp

amounted to
in

advance.

De¬

which

run-up,

than 20 points

more

about a month,
many analysts are of the opinion
that the long-range potentialities
of the situation have by no means
been exhausted. The long period
of

of

period

a

stagnation that has just
end is generally at¬
tributed
to
highly conservative
dividend
policies
under
which
price

to

come

an

the distribution

held to $3.00

was

regardless of
earnings.
policy had been dictated by
the pnysical needs of the prop¬
erty and the heavy capital im¬
provement program. While state¬
year

a

This

of

ments

the

that

indicate

continued another two

will be

three

years,

peak

of

been

management
the heavy outlays

it is felt that
such expenditures

passed and
of

treatment

eral

more

some

or

the
has
lib¬
is

stockholders

loss

a

in

steadily, Western Pacific common
recently assumed a position

has

the

that

of

least

at

for

than

more

the road

in

first

the

quarter

nominally to

$1.16

$1.20

earlier.

year

a

a

whole

a

analysts

timating that
a

share

are

con¬

now

es¬

of

Guide

formal

An

Spending:

and

In¬

Crane

—

& Company, 383
Madison Avenue, New York 17,
court,

Brace

N. Y.

(cloth) $4.95.
Has Helped

How Free Enterprise
to

Essays

by

School

Children

position, thus im¬
proving the prospects for liberali¬

tional
York

dividends.

City

York

New

Chamber of

the road's cash

Great—Prize

America

Make

—

York

New

Commerce

Foundation,

Educa¬

New

Inc.,

City (paper).

much

to

it

recommend

as

1952

has

operation.
It is well up
the leaders of the industry
from the point of view of operat¬

Problems

The

largely

in

the way

lines

to

support.

It is to

bridge

a

relatively small size of the prop¬
erty the average haul of freight
is one of the longest in the coun¬
try.
With these natural advan¬
tages, augmented by 100% Dieselization
and
improvements to
the property in recent years, the
company's

miles

gross-ton

per

freight train-hour figure is among
the best in the country and the
1955 transportation ratio of 30.8%
was
well
below
the
industry
average of 37.3%.
Another

strong feature of the
Western
Pacific
picture is the
highly favorable long-term trend
of traffic and revenues, in which
respect the company has far out¬
paced
the
industry. The rapid
population growth and the trend
toward

industrialization

service

in

the

and in

area

contiguous ter¬
ritory have been important fac¬
tors in this
growth.
Last year,
for instance, there was the
open¬
ing up of a large Ford plant
local

Western

to

which

alone

Pacific

lines

is expected to

bring

in about $5 million in annual

this
of

rev¬

Corollary
benefits
from
plant will be the influx

enue.

one

workers

and

probable estab¬
satellite plants.
The

American
1784

Interests
1873

-

in

Sumatra,

Abstract

—

of

a

Thesis—James Warren Bould—
School

Fletcher

Diplomacy,

Medford,

Mass.

lations
1954

with

of

Thesis-—

a

Rudy

Re¬

1945-

Fletcher

—

Its

and

Publics,

The—Phi¬

losophy and Technique of Bank
Relations—Robert Lind-

Public

quist

Harper & Brothers, 45
New York 16,
N. Y. (cloth), $5.
—

East 33rd Street,

Blueprint for Neighborhood Con¬
servation—National
of

Real

Estate

Street, N. W.,
D. C. (paper).
Board

of

Association

Boards,

1737

K

Washington

6,

Trade

of

of

Trade

the

City

of

the

of

City of
Chicago, Chicago, 111. (cloth).

Commentary On the Civil Liber¬
ties Provisions of the Universal
Declaration of Human Rights—

[Abstract of
Kimball
Law

—

a

Thesis

Fletcher

—

Chase

School

of

&

Aspects
of
Business
Philan¬
thropy—Richard Eells—Harper

lucrative transcontinental

New

its

of

an

All

indications

point

to

freight.
the

fact

&

Brothers, 45 East 33rd Street,
York
16, N. Y. (cloth),

Domestic

Earnings on the common stock
during the past six years, based
on
the
present
capitalization,
have ranged between a high of
$12.55 in 1950 (reflecting the Ko¬

1939

rean

traffic

$6.13
all

in

1954

railroads

fected
ditions.

and

a

low

Last
to

were

earnings of
adversely af¬

year

the

$8.13

a

achievement

serious

of

when

by general economic

ainounted
notable

the

boom)

service




in

con¬

earnings
share, a
view

of

disruptions

Tufts

&
Foreign Factors in
Egyptian Foreign Policy—1919-

Abstract of

—

a

Thesis

School

of
Law &
Diplomacy,
University, Medford, Mass.

Electronics Industry: Los
Angeles

Metropolitan

Area—Industrial

Department,

Los

Chamber

Commerce,

of

Fletcher

—

&

Law

Broadway,

Angeles

Los

15, Calif, (paper), $2.

1151

Angeles

all-

an

reached

all-time

an

and they also con¬

year

tinue to rise.

During

the second

half of last

total employment continued

year

on

Steel

—

naces

to basic—Public Relations

Department, Basic Incorporated,

Building,

(paper)

Manual

time to time; steel and
ment, for example.
Cement

merit

the

6%

not

Universal

Company,
increase

this

the

1957.

in

year

eliminate

that

has

the

Ce-

that

total

output
will probably

shortages,

situation

This

Atlas

stated

should

but

authority has

same

in

ease

es¬

timated that total current capacity
at the beginning of 1959 will be

370,000,000

barrels,

about

15%

present capacity of 320,000,000
barrels.
The
United
States
Bureau of Mines anticipates, some¬
what

more
optimistically, a 20%
capacity increase in the same pe¬

in

riod.

on

Cleveland

Excellent

of

15,

request.

for

private

and

other

industrial

potential

demands,

there

whether

the

increase,

building

construction

is

question

a

anticipated capacity

large

The

it

as

nation's

since

World

is,

will

cult

to

accept

economy

be

Exchange

—

Department

growth

has

been

very

idea

the

ahead

move

so

diffi¬

that

important

some

too

sectors.

Yet

that is just what appears to
happening. With regard to the

latest' rise

of the New York

II

the

may

in

of

1956 Fact Book

economic

War

spectacular that it is

be

Management, 125 East 38th
Street, New York 16, N. Y.
(cloth),, $20 to non-members.

"Wall

in

interest

Street

Federal
that it

Reserve
"a

was

marginal

rates,

Journal"

borrowers

a

saying
discourage
as

to

move

the

quoted

man

at

time

a

of Public Relations and Market

when the economy is close to ca¬

Development, New York Stock
Exchange, 11 Wall Street, New
York 5, N. Y.

pacity. Further increases in lend¬
ing could only lead to higher

Abstract

of

W.

—

Vear

a

Thesis

—

Fletcher

Charles

School

of

Uni¬
versity, Medford, Mass. (paper).
Law, &

Diplomacy,

Professional
lective

Tufts

Engineers

Bargaining

and

—

A

Col¬

bibli¬

ography—Selected References—
Section,
Princeton University, Princeton,

Industrial Relations
N. J.

(paper), 20 cents.

Role of

Government

Peaceful

ing

Uses

in Develop¬

Atomic

of

Energy—Arthur Kemp—Ameri¬

Enterprise Association, Inc.,
14th Street, N. W., Wash¬
ington 5, D. C. (paper), single

can

1012

copies $1; quantity prices

on re¬

prices."

of

national

issue

—

Par

Values

—

Inter¬

Monetary

Fund—22nd
Internatonal Monetary

Washington,

Fund,

D.

C.

than

before

ever

our

upon

of activities

versification

without

major reliance on one bellwether
industry. To maintain our growth
and our prosperity we must move
ahead
on
many
fronts at the
time

savings, investment,
industrial
development,
private
and public construction, consumer
spending and many other phases
of
activity.
Naturally, progress

same

rates

ent

of

time to

speed; from

time slowdowns in some activities
are

catching

others

while

necessary

are

with the procession.

up

seems

be

to

a

Rates

Tax

and

Collections,

slowdown

Brief

No.

3—Tax

Foun¬

Rockefeller ' Plaza,
N. Y. (paper),
single
copies
free
(quantity
prices on request).

New

a

T i b o r
Sons, 440
Avenue, New York 16,

Economy

—

Edited

by

quarter

year.

building

first

con¬

quarter

$2,172,440,000,

17%-

a

the first quarter of

over

1955, as compared with the 8%,
rise in dollar volume of residen-,
tial

contracts.

Within

the

non¬

residential

category by far the
biggest rise Was in contracts for

manufacturing

buildings.

for

Sub-,

also

were

regis¬
buildings

commercial

educational

science

and

buildings.

Hospitals
and
insti¬
tutions, public buildings, religious

buildings
ational

social

and

projects

and

all

volume

contract

recre¬

declined

in

compared

as

with the first quarter of last year;
since potential demands for such

structures

continue

strong,

these

classifications may make a better

showing in the months ahead.
Relative

to

last

year's

first

heavy engineering con¬
tracts at $1,328,404,000 showed by
far
the
biggest percentage
in¬
crease, 42%.
This appears to in¬
quarter,

dicate

that

construction

of

new

community facilities has begun to
catch up with postwar rises in
private building, a trend that is
likely to continue for some time.
Construction Commitments

•

Construction
thus

far

that

mates

commitments have

well

ahead

were

made

run

of

esti¬
the

at

year's beginning. The Dodge esti¬
mates, published last November,
indicated for the full year 1956
a

conservative

last year in

3%

increase

over

dollar total of build¬

ing
and
engineering
contracts,
compared witn the recorded first
quarter increase of 17%.
the

The ad¬

estimates also indicated for

vance

year

building

a
2% decline in
floor space to be

new
con¬

tracted

for,
against
an
actual
quarter increase of
more
than
7%.
Heavy
engineering
contracts have also been running
first

ahead

of Ahe

mates.

The

that

early advance

esti¬

estimates anticipated

the

during

all
building

entire

year

non-residential

major

classifications

increase

would

in

1955; as I
indicated
earlier certain of the
non
residential
classifications
volume

contract

over

lagged in the first quarter.
likelihood

The

of

volume

contract

total

a

1956

all

surpassing

previous record, is very good in¬
deed, even though the 17% lead
of the first quarter may not be
maintained.

Longer Range Demand and

Backlogs

Viewing the longer range
struction
at

prospect
time

this

to

it

see

is

con¬

difficult

ahead

any

obstacles in the way of continued

year-by-year
increases, barring
war
or
catastrophe, except the

possibility of setbacks due 10 var¬
ious activities moving ahead too

Residential

Contracts

Residential
in

the

first

-000,
first

continuing
housing,
factories

Non-Residential and

37

building

eastern

quarter

total

contracts

states

had

a

of $2,599,028,-

strong demands for
commercial
buildings,

and

new

and

improved

transportation terminals (particu¬
larly expanded airport facilities).
The

been

factors that have
since the end of
II persist unabated.

growth
so

World

strong

War

the Population has passed the 167,mark, with a slightly
quarter of 1955.
However, 000,000
residential floor space con¬ larger net gain in the past 12
an

Barna—John Wiley &

new

Fourth

tracted

N. Y.—$7.50.

the

year

■record itself showed a first

20,

Structural Interdependence of the

in

amounted to

for the automotive industry,

speed-up

30

York

tracts

a

up
^

fast. Important backlog demands
exist for highways, schools, hos¬
for industrial
pitals, churches and other com¬
plant expansion. The construction
munity facilities and there are

year

1950 and 1955—Government Fi¬
nance

down,

were

family houses

Non-residential

—

the various fronts is at differ¬

on

projects

one-and-two

re¬

prosperity has been based
a
tremendously broad di¬

pattern different from that of last

(paper).
State

More
cent

This

quest.

apartment
little.

view of

anticipated pro¬
highways
and
other
works, increased outlays

public

fast

Manage¬

continuing trend toward
larger and somewhat^
higher-priced
units.
Hotel
and-

of

grams

about*

percentages

somewhat

tered

Demand

down

was

varying

a

stantial increases

enough for the 1955 demand; ce¬
ment
supplies
were
tight
in
various places. Mr. Charles Baker,
President of

for

These

reflect

and

ments, 1956—American Institute

Stock

ce¬

Although
last
year's
cement
shipment total of 300,000,000 bar¬
rels was nearly three times the
1945
volume,
it
wasn't
quite

Booklet

converting acid electric fur¬

contracted

2%.

increase

adequate.

Let's Make Basic

dation,

(paper).

South

Thesis

—

Virginia H. MacLean—Fletcher

Tufts

Burn

a

Diplomacy,
University, Medford, Mass.

Schedule

$3.50

that the traffic growth has
by no
run
its full course.

means

high last

Organized Labor and the Tariff—

Chicago—98th annual report for
the year ended Dec. 31, 1955—
Board

of

School

Ohio

Bank

B.

^—Barbara

Hanna

of
Law
&
Diplomacy,
University, Medford, Mass.
(paper).

important traffic stimulus in
bettering the company's competi¬
tive position with respect to the

of

improvement
Pacific

Territories—Abstract of

School

Corporation Giving in a Free So¬
ciety — Social and Economic

Western

istration of Non-Self-Governing

Tufts

the

physical

Y.

(paper).

Diplomatic

Argentina,

Preston

&

(paper).

Abstract

—

John

Law

University,

Tufts

American

Anglo

of

plant, and those
connections, has also been

of

N.

Street, New York
(cloth), $6.50.

International Law for the Admin¬

Diplomacy, Tufts Uni¬
versity, Medford, Mass. (paper).

lishment

—

Prospects—Gun-

33rd

East

16,

large

a

line which also
makes for efficient operation.
It
has
little
passenger
business.
Density is heavy and despite the

degree

45

Economy, An

and

Myrdal—Harper & Brothers,

nar

mileage it operates
main line, with little
of low density branch

made

over

International

Its advantages in

this respect are of a fundamental
is

—

Mass.

Medford,

University,
(paper).

among

nature.

Thesis

a

Swarup—Fletcher School
Law
&
Diplomacy, Tufts

of

road

ing efficiency.

Abstract of

—

Satya

rail¬

a

also

tures

expected

Indian Relations and Attitudes in

Regard to Southeast Asia, 1947-

Pacific

Western

Product,

Har-

'

Basically

serv¬

time record in 1955 and registered

National Eco¬

to

nomics—Burton

stock dividend.

2%

a

goods1 and

of

from

(cloth), $3.50.
Getting

company

implicit in the recent declaration

total

ices produced, the so-called Gross

and individual liberties—D. Van close to 65,000,000 persons, an allNostrand
Company,
Inc., 250 * time high. In spots certain key
were
in
Fourth Avenue, New York, N. Y. materials
tight supply

year

much as $10.00
be realized. In ad¬

of cash

Bibliography of out¬

phy of individualism, free trade,
free
enterprise, free markets,

here

From

is claiming
a
tax credit of some $5 million
in connection with the reorgani¬
zation of its
subsidiary, Sacra¬
mento Northern, last year and if
this matter is settled quickly it
could result in boosting reported
1956 earnings close Ito the $16.00
a
share level.
Also, the settle¬
ment would
appreciably bolster

zation

The—Henry

Library,

—

share from

as

may

the

dition,

Hazlitt

standing books on the philoso¬

comparisons should be
siderably better and for the
as

Man's

Free

dropped

on

over-all

National

Trust an increase of 7.4% over the pre¬
Company, 55 Broad Street, New ceding year; it continues to rise.
York 15, N. Y.—On request.
Personal
consumption
expendi¬

saddled with

was

crowding the nation's total
capacity rather hard. The nation's

were

Manufacturers

ment,

months

higher
wages without compensating rate
increases.
As a result, earnings
for

and common fractions.—
International Banking Depart¬
pence

January

two

and

shillings

of

equivalents

undis¬
again

Floods

operations

contains tables showing decimal

flood

$1 mil¬

besides

revenues,
expenses.

affected

the

the world; also

tries throughout

floods.

December

estimated

caused

lion

Constiuction Industry

—

listing current quota¬
tions of currencies of 137 coun¬
Folder

by

is

It

Quotations

Exchange

Foreign

Western Pacific

8%

for

increase

was

up

and the number of

over

not quite 5%
dwelling units

in

like period

months

than

before.

The nation's total output

any

Volume 183

Number 5534

of goods and
services
tional

x-iouuctj

ui

The Commercial

...

(Gross Na¬

at
jj>o99 billion annual rate. Since
1.939 the total output of
goods "
currently

grafcfinancial Chronicle

numbers of voters

Continued from first page

ready to follow him off the deep end.
large number of people in this country were sold on
such measures as these in New Deal
days by the political
power of Franklin Roosevelt and the peculiar nature of
the times in which he was
politically active; the net result

A

tne

and

services

doubled,
and

has

while

creased 26%.

than

more

population

In quantity of
goods
his command to¬

s

average American
better
off
than his

is

60%

counterpart

of

1939.

A

;

generally

for

the

accepted

country's

Product

in

total

of

$525

with

the

the

estimate

Gross

billion.

current

National

1965

year

is

a

Compared

annual

rate

of

$399 billion, this indicates an¬
ticipated growth of very substanstantial

magnitude.

It

is

to

be

noted that this estimate is
consid¬
ered
conservative; it is made at a

time when

before in
ment

of

more

people than

industry and in
making careful

are

growth

potentials
trends.

range

studies

long-

presupposes

more

more

purchasing

son.

It

more

and

per

more

community
kind,
more

every

rate

a

people

power

involves

per¬

houses,

facilities

of

schools
and
churches and recreational centers
and

more

capacity

lieves in American traditions.

to

produce

are still devotees of the
philosophy and the policies which
brought this country to greatness during the decades and
the centuries preceding the rise of the New Deal. Many of
them, on the other hand are actually quite lukewarm,
having strayed much farther from the path of tradi¬

tional

Americanism than

struction in every

As

gory.

the

of

new

con¬

important cate¬

nation's

inventory

of

existing structures
year by year, so also

over-all

potential

that

in

the Romans do when in Rome.

10%

In

nearly

11%.

expect

that

of

Gross

1955

It

tends

the

is

such

to

run

National

ratio

was

reasonable

to

relationship
will persist in the coming years,
if

we

assume

a

well-balanced

a

expansion free from inflationary
speculative excesses.
On the

or

basis

of

expectation

thing

to

would

the

range

with

compare

$42 V2 billion of
last

The

over-all

an

year.

construction

quoted

an

construction
estimated

new

and

year

$44 billion this
1965

investment

by 1965 to some¬
of $52 V2 bil¬
$58 billion. These figures

in

total

total

increase

should

lion

that

construction

new

for

estimates

above

are

actually

quite conservative. They are low
in comparison with various needs
that

estimates
lished

have

been

pub¬

for

highways, state and
local public works, new industrial
facilities, housing and other
classes of construction..They may
to be revised upward

have

where along
No

-

it will

for
re¬

study brought out the
periods of general
expansion, investment

better

or

indicated

of construction volume
about

as

steady

a

will

come

year-by-year

rise, or by a series of spectacular

soon

or

spurts with periodic setbacks. As
in
the beginning of this

lean

I

to

the

view

and monev; I think
gradual substantial increases
are
more
likely and more to be
desired.
The postwar record of
constant
year-by-year
rises
in
total
construction
volume
has
manpower

that

been

and

new

a

wholesome

ex¬

perience for the construction in¬
dustry and for the economy in

general.
progress
seems

Continued
substantial
of the same sort, which

to

be

the

construction

prospect as viewed from here,
promises
much
for
continued
prosperity and for further rises
in American
living standards.

Warren D.
Warren
F.
on

Henry F.
Henry
partner

F.
in

Ludeman,

Salomon

Hutzler passed
away

limited

Brothers

May 7.




&

affect the

be evident that

an

Stock Market?

effort to create

Governor would have it New Deal-Fair Deal
of New Vision Deal which would make

velt-Truman extremes

use

vs.

some

A new,
1

bound

over

else to

as

a

of the Roose¬

we

should

mon

explodes

tained 100 shares of three listed

popular myths

some

gives

tion to

interesting

an

the market's

on

For example:

news.

Are market fluctuations

news

really like to
proposals

however, is a bid
far from the New
Deal and the Fair Deal in the direction of
good hard commonsense as
Governor Harriman would go in the other
direction. We are, of course, well aware that to make such
a statement in this
day and time is to label ourselves (in
the eyes of a great many) as mossback, reactionary, or
perhaps even counter-revolutionary. Such matters as
these, however, leave us undisturbed. What we want is a

every

has

happened since

?

stories to touch off major
answers

these and other
on

the

record,

in

read

the

exchange

are

to

yours

May issue of the

Magazine.

First

news.

Over $2 billion in cash dividends

of action which would restore this country to it¬
What we should like to see is an appeal by some

was

paid out by listed companies

during the first three months of

organized group with political prestige calling not for
building additional edifices on the foundations of the New
Deal and the Fair Deal, but for the
tearing down and
scrapping of the works of Franklin Roosevelt and Harry

1956

—a

record high for any

first quarter.

Which industries

showed the largest gains

Truman.

pared with last year?

Lobbing Them Off

ones

The work could well

begin with complete elimination
of the so-called securities acts.
And the other pieces of
legislation which place great powers in the hands of the
Securities and Exchange Commission could well accom¬
pany the securities acts into oblivion. These laws are not
needed.
They do harm, not good, to the country. They

com¬

Which

paid the most dollars?

Which

.

.

.

industry had the only

perfect dividend record during
this

period? Don't miss this in¬

formative story.
Performance

of

placed on the statute books. The
legislation needs to be completely
overhauled and much of it abolished. The
pouring out of
funds for all manner of
purposes should come to a speedy
end. The social
security system should never have been
established.

investment

mon

welfare

stock

portfolios.

to the

of this year,
the

com¬

Almost

plan

public demand for

Monthly Investment Plan in¬

sharply. How have the
fared

favorites

past
mip

in January

gives

you

the

1954 ? The article
answer.

exchange

the

during the

and since the start of

year

Magazine;

investors and

new

experts, fea¬

tures down-to-earth articles

financial commentators.
prove your

To im¬

knowledge of stocks,

clip the coupon now and send it
with

a

dollar

exchange
on

bill to receive

twelve

next

issues,

the

Magazine is not sold

newsstands

the exchange

11 Wall

or

by the

copy.

at the elections this
year.

They could have such

Magazine, Dept. 8

Street, New York 5, New York

Enclosed is

$1

(check, cash, money

order). Please send

me

the next 12 issues

of the exchange Magazine.

But, unfortunately, the voters of the country are not
have any
opportunity to decide such questions as these

NAME-

an oppor¬

tunity—or at the least could have had such an oppor¬
tunity—had they risen in their might and demanded it.

ADDRESS.

IV Wk

There is little evidence of
any such political uprising—as
little as there is that Governor Harriman can find
large

H„« SuMr r
Rrr»n4

Frreiww*

I

-

4u<vm»<h>*

-

Hi**,
IM.n*

CITY-

by

presidents, editors and

company

tb

now
unfortunately made by the
Government, largely if not wholly abolished. The tax
system, based as it is upon the soak-the-rich philosophy,
needs to be
completely renovated.

a

pocket-size monthly for both

It should be overhauled and, so far as con¬

sistent with commitments

a

In the first quarter

favorites.

the
three

to the

issue.

should have been

vast so-called

to

...

...

complete history in the May

50

quarter dividend

...

portfolio

income? You'll find

dividend

creased

other features

course

never

value of each

to

questions, based

as

a

month of 1952. What

Monthly

see,

dividend check of

$50

more

con¬

that would have given

Does

ago? Can you expect big

years

stocks

portfolios. Each

the investor

violent these days than twenty

market trends ? The

the basis of

per¬

stock

reac¬

send the market up

a war scare

to the New Deal and the Fair Deal with little

on

Magazine published three com¬

market during the past 21 years

spective

offer—assuming of course that the wild men of a
by any chance win the election.

What

three years ago the exchange

and

foundation for further

New Vision Deal did not

for votes

exhaustive study of day-

to-day fluctuations in the stock

sort

flights
into the political stratosphere.
He thus would like to be
able to pin a "do-nothing'' label on the Eisenhower Admin¬
istration, doubtless with the blessings of ex-President Tru¬
man.
Possibly such a course would be preferable to a mock
contest (intellectually speaking) between two
parties both

D.

Arnold, partner in
S. Moseley & Co., passed
away
May 8.

news

When the party conven¬

give the New York Governor credit,
some issues for the coming cam¬
paign. Whether they would be in some substantial part
sham, we could not say but at least they could logically be
used in debate during the coming months. Apparently the

that

spurts will unduly strain
the nation's supplies of materials,
sudden

How does

both

stated

tclk,

day pay dearly for the nonsense in
indulging lo, these many years. *" :

We shall have to

self.

possibly
know
expansion

can

the

one

have been

we

what is being preached by
parties would make Hamilton, Cleveland or
Jefferson or Wilson gasp and stare.

some¬

the line.

one

whether

which

place this summer, there will, of course, be the
usual lip service to what we have always held dear in this
country, but when the tumult and the shouting have ceased

even

the

in

Product.

the world must

Byrd the other day on
splurge on so-called social security in
this election year. The fact is that quite often they them¬
selves become sponsors of rather typically New Deal pro¬
grams either because they have been taken into camp
intellectually by the reformers and the like or because
they are political realists and believe that they must do

does

market

construction

new

plain dictates of commonsense
experience? Of course, no one in his senses would
undertake to give details in answer to any such
question.
The fact is though, or so we
verily believe, that we and
and of

the issue of another

too, for

economic

very

these deviations from the

they themselves realize in all

Limited Influence

either

pairs.
fact

being the case one is obliged to ask himself
serious question. It is this: Where is all this lead¬
ing us? What is to be the ultimate effect or result of all

In any event they are not able to be of great influence
in their party about most issues—notwithstanding occa¬

increases

modernization, alterations and
,A recent

All this

a

probability.

tions take

volumes

public policy—whatever

this Administration
may have done to prune off some of
the excess growth and to clean
up some of the mess that
had gathered about the New Deal and the Fair Deal.

Republican party have their so-called conservative
wings. There are individuals in these groups who really

as

goods and capital goods.
expansion of practically
major economic
activity

means

huge

believe in this sort of mistaken

Both the Democratic and

the

consumer

every

of the Eisenhower influence is to add to the number who

any

It

and

It

sional stands like that of Senator

Over-all growth at such

,

We See

really conservative party in this country any more, or
political power of great consequences which really be¬

no

ever

govern¬

and

As

in¬

services at

day

43

(2391)

-STATE.

t

44

The Commercial and

(2392)

Continued from

farm

first page

and

than 2%

Thus

Critical Economic Factois
In the Investment Outlook
rates

to he

are

1950's

last five years

in the capital mar¬
the notion

support

to

kets

seem

of

secular rise in

a

To

1940's.

observers, the events of the

some

interest rates

with all of the resulting

portfolio

for

tions

implica¬

management

policies. If this is the trend, of
course, 30-year mortgages are not
necessarily
very
attractive
nor
should

yield

bonds in
the

good two-

pass up a

we

five-year

to

rate

on

same

or

government

on

order

obtain

roughly

non-callable

a

explosive pace.
Do these factors

money

easy

as

1930's and

the

of

was

typical of the

as

1960's

and

(4) Technological progress at an

interest

rising

that

convince

to

with past trends?
new

a

sion?

factors

the

in

in¬

and expan¬
doubtful when one

seems

a

average

ad¬

have

pace

of less

year.

we

observe that while

can

we

continue to be faced with seri¬

ous

intermittent inflationary pres¬

there

sures,

has

secular

nounced

been

pro¬

no

upward trend

in

prices. Furthermore, we find little
evidence
in
our
country's eco¬
nomic
history
that
we
should
anticipate
built-in
inflationary
in

trends

the

absence

of

war,

mobilization for war, or monetary

irresponsibility. There seems little
foundation, therefore, for the
projection of steep price rises by

protracted rise in interest rates,
you
will observe that I am not
at all convinced that such a happy

faces us as lenders and
investors. On the contrary, I have
concluded that we are looking at
prospect

cyclical peak in the de¬
not likely

another

good long-term income, are suf¬
fering in investor appeal from the

competition of rising yields

./V.

important than any of
these four observations, however,
is the conclusion that this is no
More

mand for funds which is

time

is ad¬
mittedly no clear proof that such
is the case, nor can
I yet see
unmistakable signs of a turning

mitment

last

to

There

long.

very

market. In
probabilities and
judgment,
there is some circum¬
the
the

point in
weighing

bond

else¬

where.

make

to

long-range com¬

a

policy to
forecast. On the
contrary, the delicate equilibrium
in
the
business
picture
could
of investment

long-range

a

easily be upset and the forces
contributing
to
higher
interest
could easily recede. Higher,

coming to an individual

rates

however,

dividends to depositors

could be-7

real

in

take recurrent 5% per annum and

protracted period of rising interest

adequate margin.
Finally, if you

higher rates of advance to act

rates.

today on the assumption that

(1) Interest rates have already
enough to make credit policy
effective. Holdings of government
securities would not be
appre¬

is

varying

previous

in

degrees

boom. While precise
measurement is difficult, it seems
periods

of

that

of
growth are really more impres¬
sive than in several past periods
which did not lead to protracted

doubtful

rises

present

rates

interest rates.

in

related

The

critical

break

a

an

Thursday, May 17, 1956

.

..

applies the perspective
of the
country's economic history. All of
these elements have been present

39-year bond.
The

It

suggest

Are we entering

of growth

era

items

food

vanced at

Financial Chronicle

decade;

it

yet

as

important factor in the demand

an

for

funds

Cyclical

in

the

capital markets.

changes,

price

the
with
factor in
on

other hand, are bound to be
even

us

they

as

are

the current business

»

surely

would

is,
of
the level of in¬

a

scene.

the

supports
being in a

which

evidence

against our

case

risen

of

merely

early

stage

rates,

you

of
,

it

instead

that

out

funds
this

cyclical peak and

a

turns

commit

it^

is

an

secular rise inlikely to have!

a

are

in the

institutional holders by

fteriods ot 'slack / or relapse.Which,

pushing down prices another
or five points.

Tight Money Policies

much harder to earn by an-

come

another ,chance during one of the'

ciably more firmly frozen
hands

question

whether

course,

the

stantial

two

a'

bound to characterize even

are

longer term trend of considerable^

(2) Corporate and tax exempt vigor. If, on the other hand, con-<
the implications
sistent with the point of view that'
credit policy? bonds have dramatically increased
relative to we are in a secular rise in, interest'
lief that we are in an extended
Perpetually easy money policies, their attractiveness
period of experiencing interest
involving
practically
unlimited mortgages. A further increase in rates, you emphasize short maturi-^
ties
and
reach
for
yields
rates comparable to or higher than to major mechanization projects, monetization of public and private
onJ^
yields will have severe upward
those now prevalent in the capital and the cumulative results of in¬ long-term debt, have been rather pressure on mortgage rates. Have refundable corporates and another'
markets. It is not possible to sub¬ tensive research and development thoroughly I discredited not
only you observed any widespread ac¬ 1954-st.vle pattern of rates returns/
mit conclusive proof that this is activities. Almost by definition, it in this country but throughout the ceptance among people in or out you will lose a very substantial;
amount of earning power. To the
or
is not the underlying trend, seems to me, these vital elements world.
They have not been re¬ of government circles of the idea
of economic analysis/
but it is abundantly clear that the in a rising standard of living must placed with tight money policies
that there should be a further rise argument
success
of
investment
policies operate unevenly and somewhat' in the sense of substituting one in home mortgage rates? On the therefore, /I ~ Should/ -like tcr- add;
the
very
practical
matter.; of ex-'
adopted in the months ahead will erratically. In- fact, one of' the inflexible
policy
for
another. contrary, every proposal is that
depend upon whether these criti¬ basic characteristics of our society Rather,
flexibility
and
timing more funds be made available to • pediency in defense of my posi¬
cal
factors have
been
carefully continues to be the higher propor- - have been reintroduced to the finance home building at prevail¬ tion. ■ r:
weighed and the probabilities ac¬ tion of discretionary, postponable scene. Since the summer of 1953, ing or lower rates.
curately judged. I can think of no expenditures which may be made we have all had the opportunity ; (3) Almost every conceivable,
more crucial subject for our care¬
by consumers, business organiza¬ to see such policies applied with cause of tight money has already
ful analysis..:,,;.......i/; /V .v/-/
tion, or public bodies." Surely this timeliness, energy, and judgment. been in evidence. Monetary policy
Clement of instability is steadily
;
It seems - to me that-we are has succeeded in virtually elim¬
We can probably all agree on
the three principal factors con¬ increasing as more and more of clearly on notice that if, as., at- inating the expansibility; of the
our population
The municipal Bond
Club of
succeed in attain¬ present,' the« capital expenditure capital markets in " the face of
tributing to the upward drift in
a ' standard
'of living well; boom threatens to get out of hand., record demands, with the result New York will hold its 23rd an¬
interest rates. In the first place, ing
above the subsistence level.-'*,
Federal Reserve
policy will be that there has been no softening of nual field day at the Westchestef
the American business system is
Although there are many im¬ designed to apply relentless pres¬ the impact on the bond market.
Country Club and Beach Club at
clearly in the midst of a period
offsets,- including
the sure on the supply of funds. When/
(4) However obscured by day- Rye, New York on Friday, June 1}
of dynamic expansion involving a portant
greater availability of economic the- sltuationi was
substantially to-day developments in the capital, Reservations should be made be-'
very high level of capital invest¬
we
had an markets, there is no apparent sign fore May 23 with John J. Ward of
ment in all areas. Secondly, in¬ information, it would seem like a different; in /1954,
flationary pressures are in evi¬ flagrant case of wishful thinking equally impressive demonstration of a slowdown in the long-term the Chase Manhattan Bank. Mr.:

vestment

vestment

to be

larized

outlook; therefore, seem
possible grounds for the be¬

has

become

more

regu¬

by the so-called built-in
stabilizers, longer range planning,
the intensive application of capital

What, then,

for

monetary

are

and

•

,

New York

dence in this period of full utiliza¬

tion of

the

and

straining of
productive capacity.
money policies have

resources

nation's

Finally,

easy

continu¬

of

highland expanding level
of capital investment for each and
every year in the decade ahead.

of

to

assume

that

we

face

a

ously

aggressive easing of the supply
funds. It is extremely signifi¬
cant to observe the range of longterm

rates

within

which the

1954

growth of the savings flow in line
rising incomes. Although the
forms of saving may change and
with

institutional

new

forces

are

at

is a valid conclusion, we and
1956" applications, of
credit work, the really long-range trends
probably looking today at the policy have been operative on the show a vitality in the supply of
situations; on the con¬
kind of an aggressive demand for
long-term
capital
markets.
In funds which is too often ignored
trary, recognition is again being
funds which characterizes a period terms
of
government
bonds, a in our expectations of the future.
given to the place of monetary
of great and pervasive prosperity. 2.60%
rate meant real ease and In the last five years, for exam¬
and credit policy among the meas¬
We may judge that we are looking a
3.10%
rate
has
meant
real ple, the rate of flow of funds Into
ures
of moderation and restraint
at a cyclical rather than a secular
which can usefully be called upon
tightness., These rates may seem the
principal thrift institutions
or
long-term phenomenon. This low by many standards but no has increased by 65%.
to contribute to economic stability.
view
is not a denial of a favorable
It is easy to visualize how these
manager
of,'a thrift institution
Thus, we can observe a number
bond portfolio has been able to of reasons for believing that we
three factors in the outlook can outlook; it is simply recognition
of the uneven pace of economic
ignore the impact of such a shift have already experienced a large
produce still higher interest rates
been discredited

as

the

answer

to

If

<

extended period of time if
they all continue to be operative.

over an

The

issues

whether

before

then

us

are

progress.

;

Persistent Inflation
What about these

his longer maturities of high
grade bonds.
/ y. /*
: The
capital markets have been
placed substantially on' a cash

on

_

_

persistent in¬

looking at a tran¬
flationary pressures, of which we
basis.
Only
small -amounts
of
sitory situation or whether we are have seen so much
during the
securities can be sold by
lacing a set of conditions more
thrift
postwar years? As they are trans¬
institutions at present quotations;
pervasive and persistent in the lated into
rising costs of doing
mortgage
economy. In short, we are in
warehousing facilities
a
business, they may stimulate
have already been used; and new
period like 1953, but is there a
capital investment and will cer¬
1954 just around the corner? This
money is committed to a consider¬
tainly augment the
volume of
seems
able extent. Thus, when new and
like
the
most
important funds
required. Doubtless expec¬
question facing a savings bank
unexpected borrowing comes into
tations of rising prices and wages
the market, it faces a virtually in¬
management as we meet here this
have caused intermittent spending
elastic
morning. In searching for the
supply of funds.
Credit
sprees by consumers and business
restraint
is
answer,
we
must look at these
truly
operating
to
alike. Unquestionably, the rate of
factors of demand in relation to a
dampen or push out the capital
inventory
accumulation
at
the
savings flow appropriate to the
expenditure boom and to make
present time is being influenced
same
environment of a dynamic
inventory accumulation more dif¬
by prospective
price
we

are

wage and

American

economy.

creases

may

Active Capital Investment

Investment in plant and equip¬
ment, inventory accumulation, and
'acceleration
ments

in

have

essentially

income

tax

pay¬

greatly increased the
marginal

demand

of

business firms for external funds.
With mortgage volume and new
issues

of

tax

In

in¬

in the steel industry which

spread to other

You have observed that the dis¬

areas.

longer range sense, a full
employment philosophy, elaborate

at

insurances

and

necessity
outlays

supports, and the
heavy
armament

for
have inflationary

aspects

which cannot be ignored. Yet dur¬

ing the last five
few

of forces

stimulating such

demands in the capital market

usually listed

as

are

follows:

(1) Pressures for reducing costs.
(2) Labor shortages.
(3) Expanding markets
sult of rising

changed

as

a

re¬

living standards and

population

factors.




cussion and debate of Federal Re¬

a

groups

of

years,

relatively

commodities

have

exempts apparently
had sustained price advances. For
high levels, we are
numerous
soft
goods
and
for
in a truly active
capital market.
agricultural products, price weak¬
The longer range plans of
major nesses have been
practically
industries suggest
the same
or
chronic. By the summer of 1943,
even
greater
expenditures
in
commodity
prices had pretty well
future years. The familiar com¬
caught up to the monetary infla¬
bination
stabilized

ficult.

serve

policy in

been

centered

recent weeks has

primarily on the
appropriate degree of application
of restraint at this particular time.
It

is

significant that the concern
is not over the vigor of
infla¬
tionary forces of the boom but
over

the

possibility

that

fraction

of

the

rise

in

interest

rates. Whether this fraction

is two-

thirds, three-quarters, or seveneighths, none of us can say be¬
we

cause

do

not

know

how

to

appraise
accurately
the
part
played
by anticipations in the
movement of yields to date. But
if

with me in ques¬
tioning the assumption that we are
merely in the early stages of a
major rise in interest rates, you
will join me in expecting relief
from present tight money condi¬
you

tions

agree

sooner

rather than later.

Implications for Investment Policy
The

implications of these con¬
portfolio management
policies
are
perhaps
easier to
clusions for

demonstrate

the

than

the

"Mutts.";.••/

of wholesale

prices for other than

(1) Investors have an oppor¬
tunity to drive hard bargains on
rates and particularly on repay¬
privileges, but this situation
is
not
likely to prevail indefi¬
nitely.

ment

certain

soft spots in the business situation

From

three

my

appraisal

possible

of

components

these
of a

accept orders for

—://.,/;

-

'

Grand

10:55

at

Station

Central

■j

leave the

train- will

special

A

Eastern Daylight time for ar¬

a.m.

rival at the club in time for lunch
and all afternoon

special

turn
9:50 '

p.m.'* for

activities. A re-;

will leave Rye at

car

arrival

Central about

10:45.

Grand

in
,

/.. Special features of the day will
be a golf competition with prizes
for

first

.

three

■

low

' gross

scores

(members); ;rfirst three low net
scores
(members); low gross and
runner-up (guests);-longest drive
on
selected hole and nearest the
pin

selected hole. /There will
contest operat¬

on

also be a handicap

handicap

I.B.A.

the

under

ing

system.

doubles tourna¬

round-robin

A

ment in tennis will start at 10 a.m.
with

prizes for winners and run¬
Also scheduled are horse¬

ners

up.

pitching/ soft ball, bridge and

shoe

swimming.
One copy

each of the Bond Crier

will be distributed to the members
and guests. Additional copies may
be ordered at $1 00 per copy from

George
& Co.

Hall,

William E. Pollock

Inc., New York.

validity of

underlying assumptions.

(2)
Corporate
bonds,
unless
carrying an exposure to early
may spread to other areas. Some
refunding, are definitely attrac¬
thoughtful
observers
obviously tive relative to governments or
are not entranced by the vision of
mortgages for the first time in
new
levels of capital investment several
years. As
usual, it pays
or
the indefinite duration of in¬ well to
buy what is relatively in
flationary
pressures.
most
liberal
Rather, they
supply; corporates in
tion of World War II. Since that
seem to
be answering in the af¬ 1956 as
mortgages were in 1955.
time, despite the developments as¬
firmative the question of whether
sociated with the Korean War and
(3) Preferred stocks, despite the
this is a 1953 situation with a 1954
a
scarcity
of
new
offerings,
are
wfege rise exemplified by a 43%
somewhere in the offing.
increase in
again providing good pre-tax and
hourly earnings of
excellent after-tax yields.
Circumstantial Evidence
production workers in manu¬

facturing, comprehensive indexes

will also

Ward

this

are

all kinds of

Municipal

(4)
Common stocks, although
offering unique possibilities for

Albert Haas Jr.

on

Trip to New York City
advertising
& Co., San
Francisco,
Calif., is
on
a
two
weeks' trip to New York City,
where he will visit, Carl M. Loeb,
Albert

Jr.,

Haas,

Sutro

for

manager

Rhoades & Co.'s offices.

is traveling by

Mr. Haas

air.

Now With Walston Co.
(Special to The Financial Chronicle)

FRANCISCO,

SAN
Samuel
ated

with

Walston

265

Montgomery

bers

of

the

Francisco
was

is

Troxel

K.

&

Street,

New

Stock

Calif. —
affili¬
Co., Inc.,

now

York

mem¬
and San

Exchanges.

formerlv with Sutro & Co.

He

Volume 183

Continued

Number 5534

jrom

.

The Commercial and Financial Chronicle

..

6

page

(2393)

suiting

low. I

year

are

total of $32 billion per
in internal funds would ac¬

commodate

Future

Capital Requirements
And Problems of Financing

mates, will require $15 billion

per

by 1960—so that total capital
expenditures may reasonably be
year

most of theirs in the

technical change

placement costs,
that

this

high.

It

will

re¬

raising
money,

be too low. But the
implications
are
clear
Corporations 'will
in¬

their plant and

equipment

-expenditures ^one-third
I960.

cannot
out

plant withr

new

a

inventories

of materials/

payrolls and other operating
expenses,
as
well
as
new
ac¬
new

counts.

In many

the

day,

corporations to¬

budget

for

capital

new

projects includes the sums
quired as working capital to
with

the

new

return

a

If

is

investment

must

we

capital

It

projects.1

the total

be

tures

for

rate

same

new

plant

go

of

which

on

.that

requirements
the

re¬

part

earned.

assume

about

able

for

glance,

go

funds

avail¬

expansion?

At

that

the

indeed.

good

very

But

large

sums

As the

econ¬

profits

corporate

And

corporations

and

equip¬

one-third more than in 1955.
Total requirements for new funds
will total $48 billion compared to
$36 billion last year.
I should

point out here that the
greatest increase in capital re¬
quirements will almost certainly
manufacturing.

its should be retained in the busi¬
ness.

For

tions

in

That

is

capital funds from

public

internal

utilities

get

oil

of

runs

vestors,
stock

and

chemicals

retained
as

indus¬
to

high

as

will

demonstrated

as

pay

for

tal.

this

more

Total

rate of

of in¬

the

in

will

trend

con¬

plant

this rate

corporate

up¬

deprecia¬

increasing

$1 billion

of gain will

foreseeable

of

at

the
And

year.

a

continue in

future.

Accele¬

This

♦

of

brings

of 1954 permit
depreciation for

almost
a

good

types of facilities.
More¬
the Act of 1954 permits some

speed-up

in depreciation on all
facilities, as compared with

new

older

methods.
base

larger.
think

of

For
it

is

And

the

depreci¬

corporate assets is
all these reasons, I

reasonable

to

expect

that the retained cash flow of

cor¬

porations will increase fully onethird by 1960, even if there are no
further

tax

concessions.

The

re-

BUSINESS

EXPANSION

be

the

subject

raised

in

the

audience/ the $64,000 question, if
we

be

pardoned for using
such a small number). To raise a
total of $48 billion for
expansion
may

in

1960, industry will apparently
need to get about $16 billion in
funds—of

billion

term

will

credits

which

extended

others.

maining $14 billion
within the

by

some

The

re¬

well

appears

capacity of

our money
be about one-

It would

increase

the

over

amounts

supplied by bank loans and secu¬
rity issues in 1955, and a smaller
increase

the

over

plied in peak

amounts

48

of

problem for the finan¬

a

With large amounts

internal

looks

funds

though

as

needs

can

when

is

never

it

looked

The

need

be

the
so

And

if

But

comes,

to get

as

I

to

were

be

to

seems

leave

simple- projection of

and

source

met.

time

easy

always

you with this

the

it
remaining

the first projections.

in

greater.

available,
the

easily

somehow
money

and
pose

of

funds, you
quite right in asking:
"Well, if it's all so simple, why
is
money
so
tight right now?
Weren't higher earnings and de¬
would

use

be

of

the

situation

this

take

care

year?

And

things in the future?"

better

answer

of

some

I

these

raised

tations.

activity

capital

date

($ 15.5)

$ 36 Billion

tained

tal

other

way

stock,

or

When it comes to capi¬
goods, prices are up 8% to
10%-in the past year, and 15% or
more in the
past two years. Any
plant engineer who made
this

assumption in submitting a
get two years ago Would
been

increase in

have had

plans
plant and

accommo¬

Our surveys for the

boom.

a

expec¬

business

not unexpected. Cor¬

was

managers

past

several

this

tendency

build

have

years

shown

30

capital

?

,

($ 11.5)

They

were

way,

if

for
'

ii

M

<

/M

m
-

costs

I 111 III

f

Plant

V;

1$ 32.5)1

then

year.

without inflation.

even

I do

be stressed.

Technical advance is

r\

coming with greater speed than is
generally realized. It caused dras¬

K$ 24.5).

tic revisions in preliminary plans

*

12

any¬

year,

not want to become tedious by
repeating what I said earlier (in
this talk). But the point needs to

•

18

capacity

this

be.

developments were un¬
expected: (1) The sharp increase
in industrial prices generally—in¬
flation; (2) The advances in tech¬
nology — which would increase

|1| |! II
^

for

to

But two

ililiili

ilrtipiii

adding

not

next

have

not

i

/

<

24

but it did

seen,

Plant

for

1956.

billion

Industry is spending $4

per

year

development
think

safe

to

will

be

we

by

1955




1955

I960

no

would

nowhere.

in

developments
the making. If

capital

all

to

do

my

assembly

calculations

requirements

may

opera¬

about

be

too

expansion. The
is to sell preferred
income bonds to inves¬

tors—who generally will not take
the risk of
buying common stock

have

got

going to make

I

I

am

such cal¬

any

began by discussing some very
problems in the capital

general

today, because the re-! markets and wound up with a spe¬
suiting figures on five-year capital: cial problem. I began with some
needs, could be so high you would' cheerful
generalities, and now we
not

believe

But

me.

whenever

a* find

really big expansion of our econ¬
omy gets underway, inflation does
to

seem

with

come

it.

The

cash

ourselves

wrestling

pretty

hard with special

cases.
But that
the way it goes in business fi¬
nance.
As all of you

is

know, ex¬
earnings begins to get pansion is not easy to accomplish.
tied up in inventories, and other' It takes both
advance planning
working needs. And then we've and last minute ingenuity. It is
got to have new security issues to up to us in the financial field to

flow

from

new plant and
equipment,
rising bank loans to provide
working
capital.
That's
where we stand today — despite
record
profits and depreciation.

and

extra

And

I

believe

the

chances

are

excellent that five years from to¬

day

problem
KVV.'-' I

our

easier.

will

be

equal the ingenuity of the engi¬
and

neers

creating
in

our

the

will

look like

an

of

era

There

certain

are

will

such

stock issues.

new

their

conserve

Funds

heavy

;__

19G0

24.5
4.0

_

32.5
6.0

.

6.5

assets

■____.

needs

Retained

Total

Outside

That

8.0

1.0

1.5

36.0

48.0

from

;

earnings

9.5

11.0

14.5

21.0

24.0

32.0

credit

1.5

2.0

and

4.5

6.0

retained

Funds

Suppliers'
Bank
New

needs.

also

1955

equipment

Depreciation

borrowing

capital

cah

it,

five

periods

Operations

and enable them to expand
long-term debt safely in times of

unusually

earlier

Funds

Retained

protect

loans

mtge. loans
issues

security

power

Corporations

do

standstill.

a

and

Total

things

excellent time to raise

can

next

in

They can make sure they
have enough equity capital. Now
capital by

for

Other

selves.

an

make

Inventories

that corporations can do for them¬

is

we

the

Receivables

unpredictable technical

changes and periodic price infla¬
tion?

If

of

BUSINESS EXPANSION
(In billions of $)

Plant

live

are

force

FINANCING

■'

we

who

expansionary

economy.

years

no

scientists

the

expansion

Needs

6.0

8.0

Total

outside

12.0

16.0

Total

funds

36.0

48.0

*
-

Vv

.

t

j

.

"

*■

themselves

by arranging standby
bank credits,
a
device that has
permitted low-cost financing for
some

very

.despite

a

Frigikar Corp. Common

large projects this year,
generally tight money

Stock Offered at $5

maiKet.

A group

Corporations

of underwriters, head¬
help ed
by
Southwestern
Securities
that Co. and Muir Investment Corp.,

also

can

themselves

by making sure
depreciation
policies

their

that

—

are

they make

ade¬

obsolescence

under

today's

May 15 publicly offered 104,500
of common stock
(par 50
cents) of Frigikar Corp. at $5 per
on

shares

share.

Also associated

in

this of¬

technology, not just the historical fering are: First Securities
Corp.;
rate.
In this respect, it is
vitally Minor, Mee & Co.; A. G. Edwards
important that the flexible depre¬ &
Sons;
Beebe,
Guthrie
&
ciation provisions of the Revenue Lavalle; R. L. Stewart &
Co.; A.
Act

of

1954

be

maintained.

to business to

up

sions

their

to

It

is

these provi¬

use

flexible

that

sential in

Small
I

sides

talk

expanded
company

aid

sug¬

for

small

in

a

comes

small

modern

modernized

are

only

There

them.

is

when

a

along

and

not

machines

to

—

with electronic

if

use

for

gadgets.

make

A flexible

tool, that does what it's
suited to

better

job shop than

a

Small business
cloaks

and

suits.

a

common

of

small

fields.

badly—and
more

than

more

of

HILLS, Calif. —Lee

L. Hawkins and Leroy C. Seymour
are
now
with Bache &
Co., 445
North Roxbury Drive.

Join State Bond &

Mtg.

(Special to The Financial Chronicle)

NEW

ULM,

Knutson

quist

are

and
now

Minn. —Lloyd
Leonard

E.

C.

Young-

with State Bond &

Mortgage

Company,

Minnesota

Avenue.

28

North

giant factory.
today is not just
It's metalwork-

specialty producers in each

these

shares

(Special to The Financial Chronicle)

BEVERLY

Two With Smith, La Hue
(Special to The Financial Chronicle) ~

ing and electronics and chemicals
—the

346,000

stock.

Two With Bache & Co.

ex¬

told by an electronic computer, is

actually

outstanding

giant

of these developments,

(hey had the cash.

machine

cash

good reason to believe

that small plants could

cellent

buys

pay

for

stockholders.

refrigerated automotive air
conditioning equipment.
It has

or

bigger

enough

company

technology

But there is

Harold

sells

by

do something be¬

we

about

today

and

v

Organized in January, 1954, the
Frigikar Corp. manufactures and

Aid

close

to

es¬

business, in the matter of raising
funds for new plant and equip¬
ment.
Generally speaking, small
plants

Inc.;

selling

is

economy.

Business

gesting that

Co.,

depreciation

like

would

Law &

Stewart & Co.

""fullest, and to let
policy know

growing

a

M.

S.

The net proceeds from the sale
of the stock are to go to certain

those who make tax

longer

begin controlling all machines
electronic "brains" if we get

tions,
I960

research and

It is

these

years

machines

o

on

now.

re¬

plant

padding.
corporation to ; might be enough investor, interest
figure its capital needs this way" to make a real difference.

to plan ahead, to
capacity, to antici¬

reserve

The exact timing of
the boom may not have been fore¬

spill
;/
'#■

earnings

for

bud-" in small companies. If dividends
have or interest paid on such securities
Any were exempt from taxation, thei'e

of

a

pate growth.

Working

accused

banker who told

of

requirements
earlier

right along to add new
equipment that would

Working

$ 36 Billion

above

The

porate

36

capital

far

1956

for

ways

inflation.

quate allowance for the true rate

have

two

to grant small
companies a special
tax
exemption on

realistic

Two unexpected developments

-•

only

seem
to anticipate in any
adequate degree, is general price

if not, how are they going to take
of

are;

never

development

sion, recognizing that

plant, equipment,
capital does not

capital.

business to raise cash.

One
is to retain its
earnings. Our gov¬
ernment would be well advised

other

for

new

day,

-There

1

-

How then, can we assure suffi¬
cient funds for business expan¬

in

42

by

>*

Raising Capital Now

Unexpected Developments

$ 48 Billion

<

great financial problem of
the unsolved need for

venture

sup¬

SUPPLY OF FUNDS

$ 48 Billion

■.

.

is

Apparently, therefore, the con¬
tinuing uptrend in requirements

had

FOR FUNDS

sure,

this

the

our

we

The

years.

questions.

NEEDS

But

is

on

perhaps
short- •finance

represent

business firms to

care

■Billion Dollars

means

not

preciation supposed to

FINANCING

for

pay

market (which is, for this

money

cial markets.

many

to

to

us

funds to

new

much of

Act

scale.

off,

culations

options available under the Rev¬
rapid

and

'Outside Funds

cilities is running out. But several

as

will provide
working capi¬

to

plant expansion.

working

enue

to

and

securities

depreciation of defense fa¬

rated

they

sufficient

railroads

amounts

third

important is the

been

over

than

public
utilities will continue to sell large

outside

ward trend of depreciation allow¬

has

ex¬

manufacturing,

more

The

years

five

small

pro¬

plant and equip¬
is, for business as a

additions

some

$2

Retained Cash Flow

the

be

markets.

Even

that

for

In

will

total

market, is pretty good evi¬
that

notice

roughly sufficient to finance
penditures

developments

than

General Price Inflation

also

spective internal funds should be

60%.

tinue.

able

point, because manufacturing
companies generally get most of

as

corpora¬

growth

And the favorable reaction

roads

public utilities, while
very large, are not increasing so
rapidly.
This is
an
important

real

ratio

earnings

over,

and

manufacturing
the

tries—such
—the

products, new tech¬
nology are adding most to the
demand for new plant and equip¬
ment.
The capital needs of rail¬
new

are

to the

viewpoint that most of these prof¬

at

up

You

required for busi¬

expands,

increase.

expendi¬

as

is,

but

are

increase

an

appears

being set aside.

omy

tion

sources,

it

expansion.

ness

ances.

their

the

sums are

dence

-

working

working funds in 1960 at the
rate of $16 billion per year—that

in

in

business

prospects

its

where

these

first

ment, business will be adding to

occur

prospect for
huge amounts of

for providing

one-third

Large

the

working capital. 'YOU winning their stockholders

operate

new

involves
facilities,

plant

new

new

of

are

expansion

than

more

more

or

V'

Business

it takes

too

may

enough:

by

be

what's

no

told these

large

any

manufacturing.

whole.

Prospects for Raising Funds

Well,

be assured

not

r

ment—that

way

is adding to

we can

figure

general
crease

The

mar¬

ket.

expected to reach the $32.5 billion

figure I have suggested.

capital

roughly two-thirds of
total expansion needs.
And the
proportion
will
be
higher
in

am

more

45

It

needs

capital

capital will help

irritation

of

the

big

ST.

PAUL, Minn. —Harold A.

Grams and Ronald E.
become affiliated

Hue

companies by anti-trust suits. This ing.

&

with

Olson have

Smith, La

Company, Pioneer Build¬

Chronicle

The Commercial and Financial

but they
told

each took the $1,100 and

reluctant partner

in Egypt's plan.
because it
provides large financial resources

mate

Arabia

nally signed in 1954

which depend upon operators con¬

in

tinuing to produce oil.

likely to jeopardize its economic
strength again, particularly be¬

'Times are hard with us
now
and although we hate to do
this we need the money'."
They have changed the law in
our
state
but
one
thing hasn't

Securities Salesman's Corner

me,

changed,

By JOHN DUTTON

That's Gratitude!

nature.

make

few hundred

a

speculation but I don't expect to

influence.

friends. When I reminded them receive much repeat business
that I tried to dissuade them from frQm them
It,g
the
game
Qld
the purchase, that I voluntarily
gals who in other days made a handled the transaction without story mates-hold on tight when
bee-line run for the savings bank profit, they agreed that was rignt, you go around the turn.
.(if any) cash,
but who now make up tne ready
market for promotional stocks, it
is an easy job to sell this type of
security.
When speculations are
eagerly sought, it takes a strong
man
to sell investment type se¬
curities.
Human
nature
being
their

with

is, all you young fellows

what it

the gravy train to-

who are riding

Cnrttimipd from

a

The

a

improvement.
Change

tories

week

last

day

good

my

neighbor Crude oil
his Gasoline
brother.
"Buy some Soupbone Distniage
Uranium," he wrote. "I bought ^loii
some for my
brother-in-law and
door

next

and

friend

showed

me

267

_.

33

50

49

4.0

33

44

—

9.5

58

78

—26.7

19

27

1.1

54

86

—

may be a gamble but I got it
fhe improvement may not seem
straight, the Amalgamated, Con- great, but the oil industry opersolidated, Expurgated and Con- afes in millions of .barrels daily,
taminated Copper, Brass and Gas a small improvement multiplied

It

Co., Inc. is going to make a deal
them. They are putting up

by the tremendous number of
physical units involved exerts an
and I hear the stock important influence on product
which I bought at 25c is going to prices and consequently on earna dollar a share."
ings.
The
improving statistical
with
the

it

as

Arab

money

oil

Britisn

upon

is

likely

revenues.

not

League.

pro¬

of

member

a

Iraq -is

pro-

Baghdad Pact to which
Saudi Arabia

and

are

op-,

posed.
«

is reported

saying that he did not believe

11 aq
has also adopted an
lightened
policy and
has

barked

en¬

em¬

several long term
programs
to expand agriculture
and
undertake
a
petrochemical
industry,
both fostered
by
oil
upon

do

water can be

face.

pacified

the sur¬

on

■

is

difficult

to

whether

say

Middle East oil is more important

crude

oil

world

market.

is

alization

essential

not

of

the

to

Following nation¬

British

Petroleum's

oil properties in 1951, Iran saw its
major position in the world oil in¬

newspapers.

The

supply

of

higher than a year ago, and ahead
cuted
orders on
an
of industry as a whole which
basis for six other friends of my showed
a 10% increase. While
neighbor. One man told me, "I these increases will not.last^ for,
asked Joe what you thought of it the entire year, it is the first time
and he said if I asked you that that earnings of the oil industry
I

exeunsolicited

would probably blow the roof
I laughed and told him it

you
off.

He

funeral.

his

was

"What's

the

it's

difference,

my

she would only
anyway so I might as

it in

well buy

this junk."

Dutton hasn't dreamed this—it's
not

weekend"—it

"lost

a

hap-

Probably some
read this column

pened last week.
of

who

you

have

similar

had

experiences,

Everybody's happy while it lasts
but this isn't the investment business—better I should

book

few

a

horses!

laughingly told this story to

one

of

plied.

associates and he

my

re-

"Some years ago I had two

friends who called

the tele-

me on

phone and gave me an order to
buy them some speculative stocks,
I told them they were throwing

charge

them

of

$5.

volved

were

them.

I

for

a

nominal

The

remember

the

one

of

amounts

that time

,xt

men,

teresting to note that the oil
composite is now exactly the same
relative to the 420 Industrials as

that

datory

even on an

there
men;

every

agency

was
was

made

stock

commission.
went

lawyer

this

Jig

I05

128

Oct.' 1955ZIII

114

100

92

110

June 1955

108

93

98

102

102

99

102

J®®®—- {25

out

dling

such

that
a

the

broker

han¬
was

as

an

agent

even

Jjg

100

100
.

•,

100

was

unregistered.




Such

the
was

Crude Difficulties

>':A

,

more pressing and
mental
problem
lies
at

funda¬

namely

finding
widely

difficulty

the

oil.

crude

has

As

home,

of

been

publicized,
it is
becoming
in¬
creasingly difficult to find oil. In
fact, the industry is not finding
enough oil to maintain its reserve
capacity.

The

following
table
quite clearly, In 1949
our
reserves
were
equal to a 14
year life whereas in 1955 the re¬
shows

this

serve

only

was

addition

to

12.9

In

years.

not

maintaining the
reserve capacity, the expenditure
of
larger funds
each
year
in
search

for

oil

crude

combined

all

are

kinds

of

finding costs.
figures

is

statistics

Probably

accurate

oil-

on

set of

no

because

too

assumptions are in each set
figures. However all statistics

many

of

billion barrels

Years

Produced

2.74

0.65

35.45

12.9

1.21

0.41

34.80

13.6

1.16

4.04

2.61

1.43

34.39

13.2

.76

32.96

12.9

1.30

2.65

32.20

12.0

2.07

1.16

29.54

13.6

1.54

1.55

28.37

14.0

1.77

N

•

1953

-

3.31

;

2.55

increase

An

search for oil and

improving their internal

duction

wells
oil

economic position. Therefore oiL
essential for not only

current

eral

economic well-being but for fi-

curred

nancing the large scale develop-

been

ment plans which some! of these

justments

price

increase

bring into

-

of
the

pro¬

economic

not

prices.

price

at

The last gen¬
for oil oc¬

in June,

•

Possible
The

oil.
of

stage

increase

an

The

Price
seems

in

spread

now

wider

than

of the

last increase

1953.

Therefore,

be

greater

for

an

it

there

now

at

was

economic

increase

in

the
mid-

to

seems

justification
than in 1953.

The statistical position is stronger
than a year ago. There seems a

good

that

"chance

months

another

excellent

of

might lead to

few

consumption

price increase.

a

The Chase Manhattan Bank

study

on

petroleum

1953

the cost

time

world

since

for

set

of crude

between

subsequent minor ad¬
a
local basis,
'me
that

be

to

a

cently

on

Increase

the price

1953. There have

estimates

1.55

barrel of crude oil and prices
received for products refined is

increase

some

IPAA

the

would

oil

crude

in

published

re¬

excellent

an

of the
industry.
This
study concludes that half of all oil
to be produced in the U. S. will
future

growth

capacity investment dollars in these areas
barrels if we wish to do better than
daily. By way of comment, daily average. Among these areas are
production is now about 7,100,000 the off-shore area of the Gulf
barrels daily. This shut-in capac¬ of Mexico, Canada, and the Middle
tending from Persian Gulf counity
would
indicate
an
ample East. Of course domestic com¬
tries to the Eastern Meditteransupply of oil available without panies that are long on oil .re¬
ean. However, this would not be
an
excellent
stimulating development of addi¬ serves provide
a major threat to the producing tional
producing capacity through medium here at home.
companies. Out of a total of 2.1 a
higher price for oil. However,
million barrels j daily of Middle Mr. A. L.
Tidelands
Nickerson, President of
gas^
which moved to Europe
The attraction of the Tidelands
Socony-Mobil, stated recently that

rificed to political opportunities.

last

year only one"third
was
transported by pipeline. The remainder went by tanker.
Conditions vary

Middle

East

producing

fo

do

+hIv InS ennHn^

better than

£n„nc

most industrial

mSSrS

J?

j

nnLiu

nn

problem

unforeseen

or

Aess
some unforeseen problem or aged
crisis
appears.

lvnaaie

F

One

of

the

potential

y

s

consequently

.

r,asi

the

sore

spots

he doubted

increase

production of
600,000 barrels daily

sustained
the

could maintain

we

in

war

basis.

Since

the

an

exceeded

has

never

8^%! of

on

with

end

a

of

significantly
our

reserves

annually. Therefore, if production
should increase by 2,000,000 b/d
the

rate

of

the Middle East. This
is extremely important to the

might

be

been

members

the domestic rate of pro¬

duction

has

more

production would ap¬

well espoused

of

by many

industry.

the Tidelands

Louisiana
the

the

which

goes

Along
southern

possesses

much

geological features and
relatively
undeveloped.
There are something like 130 salt
domes along the coast of Texas
same

is

still

and

Louisiana.

wonderful

$alt domes are
places to look for oil.

proximate 9%%, a level which Offshore in the Gulf approxi¬
to keep its pokcjes separatb probably could not be maintained mately 250 salt domes have been

from

,

op-

posed to U. S. policies in the Middle East is highly dePendent uP°n
the American-owned Arabian
American Oil Company. So far
the °PeratinS company has man-

producing

amounts to about 2,000,000

than

in the individoil

domestic

company

foreign

poiicy

relations
and

generally good.

and

between

King Saud

are

Egypt and Saudi

for

more

than

a

few months. Mr.

b/d
figure
would permit an increase of only
8Mj%
to
reach
capacity.
This
seems
to
be. dangerously
little
Nickerson's

600,000

Arabia recently signed a defense
the case and after much litiga- area
pact. Rivalry between the two spare capacity for a growth indus¬
tion I finally settled the suit with oil industry because a growing makes our influence of Egypt on try.
Even this would evaporate
a
check of $1,100 being paid, by portion
years
should
of earnings is coming Saudi Arabia small. In fact, Saudi in less than \xk
me to each of my
supposedly good from there.
As a preface, the Arabia appears to be a somewhat exploration stop.

stock

S. A.

anticipated.

2.56

,

revenues are

ual

,

if he

providing

means 0f

C+hZ countries- Saudi Arabia while

„nnrt^r

company

transaction

liable for the full loss

.,

traded

bankrupt
a
smart
alec
looked up the law and

found

13

5

Prod, integ'd

man-

basis should be

After

011

420

indust. Oomp.

raw
law

a
a

it

registered with the state securities

acted

years ago.

:-

state which

our

It is in-

the petroleum earnings.

in-

amounts

duction. Most Middle East coun-.
tries are devoid of alternative-

P°site oil 35%, producers 32%, . A more likely disruption of
and integrated companies 35%, Middle East production might be
reflecting the better outlook of the shut down of pipelines ex-

service

$2,200 for each

U.

been

3.39

industry earnings is now in

good reason."

"At

in

a

had

countries have undertaken. These
the total cost of finding and de¬
plans cannot be halted. They are
the process of being reflected in
regarded as a political necessity, veloping crude oil has increased have been produced by 1965. That
market
prices.
Using Standard As a matter of fact, the Middle by at least 20%. Domestic pro¬ is less than 10 years away. There¬
ducers feel that they must receive
fore the sharply
higher cost of
and Poor's index of group stock East
countries actually require
higher prices for crude to finance- finding oil plus the probability
prices, the following table shows more oil revenue to accomplish
exploration if the industry is to that our oil producing ability will
that in the first nine months of these programs. The mutual deremain strong and develop ade¬ decline after
1965-1970
requires
1955 a composite of oil did nothing pendence of oil consuming counquate reserves to meet future
that greater attention be paid to
while the industrial list rose 14%. tries and Middle East oil producdemands.
other
areas
which
can
supply
The oil composite hid an 8% de- ing countries is one that should
The
principal
argument
em¬ crude oil to the U. S. on a longcline for producers and a 10%
continue
profitable for
both
term
basis. Furthermore, we as
gain
for
integrated
companies, parties so long as economic self ployed against a price increase is
the
general belief that shut-in investors should concentrate our
However, since the third quarter interest prevails and is not sac-

their money away. They insisted
and
I
bought these stocks and

charged

jCally upon revenues from oil pro-

improved relative position

The

0f 0n

of 1955 industrials rose 18%, com-

Top This One
I

.

On Stock rnces

replied,

wife's money and

blow

substantially exceeded industry.

than

2.97

..

week

working

is

better

1954

1952

past

the Consortium

not

is

Iran

1955

oil

to rest upon much firmer
foundations including long term
seems

you

the

Therefore,

to the producing countries or to dustry
rapidly captured by other agree on the trend. It is snarply
the consuming nations. However, Middle East producers. The ulti¬ upward.
it is a mistake to assume that oil,
highly important to both parties,
Proved Domestic Liquid Reserves
New
Production
Net "
is affected by every political inYear-End
Est. Life of Bbls. found
Additions
During Yr. Additions
Reserves
Reserves
per barrel
cident which
appears
in
the

«.

During

BP had offered

same as

1951;:

with

revenues.

think?", asked position has been reflected in contractual obligations which ex1951
5.13
2.43
my good neighbor. I said I didn't better refined product prices,
ist between governments of the
1950
3.33
2.17
1949
3.57
2.02
think anything. I wouldn't knock especially at the wholesale level.
0il producing countries and the
it, buy, or sell it.
But if he Wholesale prices have risen al- 0il companies, and the desire of
To maintain a 13 year life the
wanted to get rich that was up to most steadily since mid-1954 and Middle East countries to continue
him.
He
said,
"Buy me 2,000 are now the highest in two years, receiving the almost fantastic in- industry must find at least 1.65
shares." I did this and when I The improvement in the midwest come
which has developed in bbls. for each barrel produced.
The table shows this has not oc¬
went to another dealer who was has been particularly good.
only a very few years. For some
curred since 1951 and the trend
making a market in the stock, I
Now what does all this mean? of these countries this revenue
does
not
indicate
that
we
are
asked him what he thought of it. The answer lies in earnings. Oil
represents wealth on a scale unHe said, "I wouldn't toucn it with industry
earnings in 1955 rose imaginable only a few years ago. likely to find that much. There¬
fore our reserve is likely to con¬
a
10-foot pole." When I told my about half as much as those of
it is too frequently overlooked
tinue a decline with imports be¬
neighbor what this other broker general industry. For the first that the Middle East oil produccoming more important as a longsaid, he gave me an order for an- quarter of 1956 oil earnings forged jng countries are highly dependterm source of petroleum.
other 1,000 shares.
to a new record high level, 20% ent both politically and econom"What

tially the

fi¬

Iran

substan¬

was

the relatively small increase
Iraq is not likely to
Middle
Iran in reserves results in a rapidly
East
problem.
It is merely a jeopardize its oil income.
has learned the hard way that its rising unit cost for new oil. There
question of whether the troubled

there is a solution to the

It
573

had his mother buy some.

even

7.2

+

18

34

30

1.6

—

60

D,^s«SuiPS
1955
1956

—

195

from

letter

a

Yrs. Ago

barrels

relies

tection

E*?ynt

Middle East political situation has
rarely if ever been "good." Dag
Hammerskjold, Secretary General
as

his

British in its policy and is a mem¬

of the United Nations,

Inven¬

wisdom!

ruler is well

which

agreement

cause

policy of enlight¬

jeopardize

ber of the

factor of strength.
following table reflects this
ag0)

year

his

for

Kuwait

*

Ontlook ioi the Oil Industry

million

One

to

tne

4

nciae

The local

ened self-interest and is not

continued Jrom page *

follow

harken,

heed,

take

day

these words of

known

:

excess,

important

Kuwait, which is about as im¬
portant
a
producer
as
Saudi
Arabia, is strongly under British

their big

on

is

Kuwait, Iraq and Iran

haven't
changed
I hope the boys

they

human

During these lush times when
the
rubber
bands are off the
nocketbooks, and the fellows and

I

Thursday, May 17, 1956

.

..

(2394)

46

located

which

justifies the

attraction of the
a

prospective

Needless to
domes

say,

onshore

and

developed

Few

of

been

tested

been

even

the

offshore

hunting
most
have

to

as

ground.
the salt

been

some

offshore
and

of

great

area

tested

degree.

domes

have

hardly any have
partly developed. The

Volume 183

Number 5534

.

The Commercial and Financial Chronicle

..

API annual estimate of U. S. crude

oil

showed

reserves

that

reserves

lncreased only 1%% last year, or
451
mmion
barrels.
Of
this
amount,

oo%,

or

:*94

million

barrels,

was^found in Louisiana,
inCSI 4^ttsnore.
in a similar
/o
oi .tne gas reserves

tasnion

cam.

so

fa Rv„o?S/0UIlr ^
in
tL ioL
?Lv!"c

,

4Q

HrnnnpH

rnin.Vin

Paiifnrnia

R7

S

ctatistir^

These

horr *i

c

hoVrnic

miiiin.

VnhSS5

it

pvninrftnr,r^

whv

L

ern

ui si

o

in

and

an a

the

Tidelands lends attrartinn tnenm-

banies with strong

sentaticn in this

v.-

■
.

Recently,

renre-

area

■

■

acreage

Ira

H.

Senior

Company, said that we must find
enough oil to sustain a 50% inin

then

production by

added

such

that

means

more oil

in the

1965. He
.increase

an

will

to

find

next 10 years

than

we

have

any previous 10 years permd. And
tnat

win

be

nell

one

6,000. b/d market has developed
Michigan.
Tbe

sharp increase in Canada's
and

reserves

producing

or

a

chore,

capacity

wjn undoubtedly create problems

earnings

again

may

:froml

come

continued improvement in domes-

-

.

^

„

Illcreasmg Eur°Pean Consumption,tmumg the favorable 1955 trend
The growth in free world con- again this year. Over the longsumption, excluding the United term foreign interests should acStates, presents a very attractive count for a major part of the inopportunity for investment in high crease in earnings expected from
basic

be

There seems to
growth in

ti.is group.

why

reasons

.

suggested Uit Companies

consumption of petroleum abroad1
increases
within

the

United

is the tremendous

in energy

twice the

about

at

States.

rate

First,

postwar growth

requirements in Europe,

Enough companies can be found
in these
particularly attractive
segments
build

an

the

of

industry

oil

aggressive

common

to

stock

and

portfolio which should

European market.

rapidly than a general cross-section of oil securities. Among the

second, the increasing availabiiity of petroleum to satisfy the
^ir.

A.

T.

•

Proudfit,

a

director

companies which

grow more

possess

the most

rnLf i/S:K?<1 that develop- of standard oil (N. J.), in a
hpet hnnpS
n1^?/'sPeecl1 last year credited oil as
«Wp
wLIS
the major reason for the indusnpppmhpr rpS
it trial renaissance of postwar Eu4nn ^ll?™^
rope- Oil consumption has more
ricp tn 4.nn rnn h/ntnri
than doublt d since the war. From
Wo

i

+

a

two

m3v

"piihin

hiliinn

"Remember

off

i960

hv

iqro

i<? nnlv four

vear<

The offshore discoverv record
far

so

iwt

and

bv

is

excel1 ent

pools

gas

Sixtv-four

have

been

155 wildcats which

drilled

Reserves

wildcats

these

have

been

date

to

oil

opened

from

estimated

are

by

Mr. Cram to b° 1 5 billion barrels
of

crude,

reserves,

of

could
square

all-of

that

as

the

than 2

more

million fields,

40%

or

of all discovered

to date. Continental's net production offshore is at the rate of
4,000 b/d which is not large, compared to 134,000 b/d averaged by
Continental last year from all

present

drill

in

waters

as

rt

^

.

Canada

The

second

much

aistant

farther

Since 1947 oil

not

Canada.

is

in

reserves

from

grown

Canada

million to
analysis

150

3 billion barrels. A recent

the

future

oil

Canadian

Imperial

by

prepared

of

Oil

and

Canadian oil companies submitted to the Royal Comlarge

mission

Economic

Canada's

on

Prospects estimates that reserves
by 1960 should increase to 6.6
billion barrels, a
120% increase
over current levels, and by 1980
should

reach

billion

17

465% increase

Producing

barrels,

a

present levels,

over

the end of

Since

is

which

area

example is West Germany which

in
of petroleum products by 200%.

,

capacity

has

inb/d
to 650,000 b/d and by 1960 should
double to 1,400,000 b/d, and by
1980 should reach 2,800,000-3,800,creased since 1947 from 20,000

tne

annual

war

consumption has increased about
6% in the U. S., 12% in Canada,
8%% in Latin America-, 15% in

ff h

^

1950 and 1955 wildcats drilled in Texas Company has built up an
extremely good record, particularly in production. I see no
reason why this should not continue. In view of its record, Texas
is still one of the cheaper Ainer*
ican domiciled international oil

companies.
,
,
Investors willing to go abroad
can buy Royal Dutch. The stock
still seems to be statistically the

of
its
assets
concentrated
in
coastal Louisiana. The company
holds more than 700,000 acres in
tee or leases. As a royalty company most work on its land is
cost free. The attraction of its
property permits the company to
bargain for very attractive royalties which in many cases are 25%
or more. There are a limited
number of shares outstanding and

cheapest of the world-wide oil
companies. Management is on; a
par with Jersey. Actually Royal
Dutch, despite its foreign flavor,
has slightly more of its assets in
the Western Hemisphere than
Jersey, a fact few people realize,
Dividends since the war have
been very small, but this has been
necessitated by the tremendous
capital needed to develop facil-

the investment rating is high,
Continued accumulation by sophisticated investors has greatly
reduced the floating supply of
shares permitting wide price

ities to meet the growth in worldwide oil consumption, and also*to
rehabilitate the company's properties devastated by World War
II. Prior to the war Royal Dutch
was a liberal dividend payer. I
believe Royal Dutch would like
to pay out as much as half of
earnings, and is striving toward
Jhls gcoal as raPld*y as possible,

fluctuations in response to exploratory success on company
acreage.
There are probably 200 or 300
Canadian companies in which one
can invest or speculate. For investment, Continental again rates
tops here. Continental owns a
75% interest in Hudson's Bay Oil
and Gas which

owns

one

of the

which

k

t

Theoffshore

about 9V2 million acres. It seems
difficult to find oil any place in
Canada without Hudson's Bay
having some acreage nearby. Last

j

lik

area

is

is much

off
now

the

the barrel figure has
increased to such a level that
industry will be pressed to
but

the

meet

,

*

f.

d

t

'k

extensive

exDloration

offshore

tion

has

crease

oil.

been
to

year

f

tremendous

a

in-

the

war

Venezuela

supplied most of Europe's petro-

^

1Pt

,

wTth

drill

ttptitpt

p

wells

0ff

16

in

about

45

comnanvVoffshore
of

b(d

nnlv

1955

4 nnn

compared

a^e end <3t 1955 compared
^ ^
tear
Yl inHnQflv mnv!!
JvSLv
Hpyp^
from

P

tn

v

leu™ needs. While the Middle
East ^as bein8 developed as an
011 Producing region little com-

£pmenPt dfillin^

;?ne™a}ft^
unt}! afttr th.e

short

Major ex-

*37

completed

last

Soconv

avpraee

The

in the availability of crude

Prior

I'S

,,

increment.

annual

The second contribution to the
expansion of free world consump-

This subsidiary

cubic feet of ^as* Financially it
is now self-supporting.
'
Two other ways to Participate
in Canada through investment
^ade stocks are Seaboard and

was

Some

of the rates of increase may taper

earlier.

year

f
|' a
diverse interests
elsewhfre However Soconv

balanceTlSSSI

Europe, and 9% for the
of the Eastern Hemisphere.

a

« has total reserves of at least
150 million barrels and 1.3 trillion

important for

in the latter part
a
sbarp increase

decade
.

0ffshore

production

period

is

within

anticipated.

a

At

Til®refo^e» earmng over $11 in
}j*55 and perbaps $12.50 in 1956,
?be stock at current prices should
Jn tlme yleld a very handsome retu™*

Honolulu.

These

two

operate

i°intly

in many areas and already possess a profitable Cana"
dian operation through large holdings in the Pembina field. Both
companies have large acreage positions

northern

in

Alberta,

an

.

^
l00£ 1S prob"
fpiy D?s* tor British Petroleum
J? tPe lnternational group. Since
™/?®7rapicl mcr.easem oil con-

Vmfm?

largest acreage spreads in Canada, QiJ

Soconv because

.

those who already own Jersey,
Socony and Texas seem attractive. Socony still seems cheapest
of the American domiciled oil
companies. Over a period of years

southern Louisiana rose from
1.9% to 3.7% of all wildcats
drilled in the U. S. This may not
sound impressive, but it means
that exploration here is increasing at twice the rate of the U.S.
as a whole. The best way to participate in this development, I
believe, is through Louisiana Land
and Exploration with almost all

pro-

600 feet.

47

tinuation of one in operation for it will slowly climb to its rightsome years. For example, between ful position in the market-place,

28,000 square

covers

economic ,to

other

to

about 10% and the number
In southern

Europe today is enjoying a higher sources. However, the future po- year Hudson's Bay's production
standard of living with greater tential of the offshore properties amounted to 13,200 b/d, compared
off
Louisiana
and
Texas industrial
activity than in the may be measured by the fact that with 5,900 b/d in 1954, and at the
water 120 feet deep.
This best prewar years.
Since 194,3 Continental devotes 10% of its end of 1955 was running about
be
expanded
to
50,000 industrial
activity
in Western total expenditures to
offshore 17,200 b/d. In 1955 Hudson's Bay
miles, a region larger than Europe has increased by two- properties.
accounted for 3.7% of Canada's
Louisiana, if it becomes thirds.
Perhaps the outstanding
Th
„ppnnd
invpstmpnt
gradp
production, compared with 2.3%

within

on

amount

barrels per day. This is equal to
present total production in all
size of the Middle Eastern fields. Contrasted
for
drilling with the prostrate condition of
rapidly. Mr. Europe at the end of the war,

The

gas.

said

miles

have

larger total energy need. By 1975 These two groups also hold apconsumption will be so high in proximately one-fifth of the total
Western Europe that the annual acreage under lease offshore and
increase in consumption will have an interest in 23 producing

our

expand quite

spective area

deep

of

available

Tidelands

Cram

attractive offshore interests are
no surprising new names.
First
on my list is Continental. This is
well appreciated by sophisticated
oil investors. Through participation in two groups of companies
only 10% Of the total energy sup- operating
offshore,
Continental
plied by oil at the end of the war bad an interest in 21 of the 57 oil
now furnishes 20% and by 1975 and gas discoveries made off the
wil1 supply about 30% a much coast of Louisiana and Texas.

domestic
and 10 trillion cubic feet

natural

should

5%

or

crease

of wells about 2xk%.

tic refining-marketing and higher Louisiana the gain in each cate°il production. Over the shorts gory is estimated at 20%. This
term Eastern Hemisphere earn- is not a new trend but the con-

from time to time. Allowables of ings and dividends give some eviproducing wells may be lowered dence of tapering off. Venezuela
and pr0ductiott costs may rise as is now producing at its maximum
a ■ result. However, I believe these' efficient rate having little furare short-run Jfactors that
only ther potential unless new concescloud
the long-term outlook, sions are granted or new discovwhich seems a brilliant one.
/ eries are made. Domestic earnx,
ings give every indication of con-

grade companies.

Cram,

Vice-President of Continental Oil

crease

a

in

(2395)

nw°CCU£S
E^tern
wnere BP is almost
7*c*psiJ;7y concentrated, it stands
J,®
moat* lbe ?tack until
V£™iy "J® ^,,1? dowJ} by
J fh
Middle East. HowrinJ-n «
® ®.our<]f 0 B. s pr?~
Tr_n
P^cipallyin
pl

.

Tran

situation

cai

^r"Te' than^ thl ArTb
PnimMpT i t!
2
t^pup

al
nf'I w!"?
whi^h T^
A^r^f
^
Dro-British whifp
^ 5?
Pact

nrn

^* **under
th?TT ^ A*„

He?uS
pam^on!

to

benefit'from

thp

inprpnti«!f2ifP^0

culty of finding oil in
states

the

Sin i hf?!
strong rein fit

atirf

creasinglv

investment

^eir

emrin

area which has taken on speciai category is Standard OiT (iT
significance since Union oil category 1^ standard Chi (Indrilled its Granite Wash discov- of sophilticated
ft^nn®
ery which seems to open up a siti0n is outstanding
Wh,-if
new concept of oil finding in industrv has ofl resPrvpT^ow6

^nvestors

northern Alberta and Saskatch- a 13 year life> Indiana>s ^
ewan*
Tbls discovery several possess a 21 year life. Its gas remonths ago was followed by the serve is equal to a 30 year supply
argesUand play in Canada since compared with the industry's 22

^
companies
such
as the dlscovery of Ledu?, m
1947' year reserve. Many investors
'eption
of course, Iran which
P
^ CCo£tinental should Honolulu looks
^
especially attrac- wonder where all the money" has
bas been an important producer reflect the fruit of their tremen- tlve because
enjoys a substan- gone which Indiana invested in
serves the bright future foreseen
since early in the century.
In
offshore investments for the tial development program in this production in recent years
Much
for Canada is refreshing indeed. It
1938, the last prewar year, total do"s ™sh°re hefr Scome state- couptry as wel1- Honolulu's pro- Sf it went into Texas and has not
offers a real opportunity to both
production from the Middle East f'rps^tlme m their inc0me State
duction in 1953 averaged 30,000 been reflected in the income
escape
and
profit
from
our amounted to 325,000 b/d. By 1951
*
b/d; by December, 1954 produc- statement due to a decline in
domestic problem.
postwar expansion had increased
Next to the Tidelands, coastaL tion reached 32,300 b/d and by allowables over a period of vears
A+
nvueunt
rund,
Middle East production to 1,900,- Louisiana, is the most attractive January, 1956 it passed 40,000 Had the comoanv been ahi* £
iJlJl
hfif nt ft, 000 b/d and last year production spot in the United States in which b/d. By the end of this year it produre at
maximum efflciir
000

b/d.

ability

Contrasted

to

with the

increase

other

half

from

re-

supplies

the

its

produc-

own

Canada?oroducHon currentlv

tion
runs

somewhat
mn mo

Jhe

in-

domestic

Xn needs® aid

nnhed

400 000 b/d of

over

h/fir»vnnrteH

SM«

to

will

Canada

irobawfeontinif to

import substantial quantities of oil for many
thprp

hilt

vpor?

future

in

United

States.

pnt

exporting

cxnorts

to

excellent

an

oil

the

to

Most

of

the

the

U

S

preswere

developed in the past year. Cur-

rently 65,000 b/d is going through
the Trans Mountain Pipeline into
the State of Washington to supply
two

refineries.

three
in

more

the

which

Pacific
will

There

two

are

refineries to

be

Northwest

also

use

crude. Another 44,000

into Minnesota and

or

built
states

Canadian

b/d is going

more




war-

recently

avera«ed 3'300'000 b/d'
tuMost investors are attracted to
the 'nternatlonal companies because of the tremendous world-

to exPlore for oil and «as' Last -"ay equal or surpass 45,000 b/d. raTe Talt ycar p'od^ctTon woSld
year 33% of. all wildcats drilled Earnings have followed accord- have •. approximated 400,000 : b/d
Jn Louisiana were successful, ingly from $2.73 per share in 1954 compared with the actual figure
compared with 18% for the na- to $3.65 in 1955 and this year may of 274,000 b/d, an increase of 45%

wide gain in consumption already tional

average.

Almost 23% of the total $4.50.

experienced, and to optimistic nation's increase in oil reserves
forecast ae to future growth. How- last year was found in southern
fver' ' might surprise some to Louisiana, an area possessing only
learn that mucb of the improve- 8% of the nation's

reserves.

Eco-

r,„i

.

a

International Compan.es
The international companies as
whole

seem

attractive.

As

a

ment in 1955 earnings of the in- nomics are attractive. Daily pro- matter of policy, any sophisticated
ternational companies came from duction per well averages 40 investor should start with a posiimproved

domestic

operations

barrels

in

Louisiana,

compared

tion in

Standard

Oil

Ji

™

J?^InnvTrm

„

(New

Jer-

In' S ™n onTy
Tw

obvlous,

finl

ayyiniiri+

earnings
term, the
f

'

t

,

J

i

Looking

^

upward

imp^rtsDea7 sj^f/nsaD7Fan

company
.

to
be

^

atgetb° ^hJrte?
is heavilv

®

con-

rather than from higher foreign with 28 in California, 18 in Texas
earnings. As everyone knows the and 7 in Oklahoma. In southern
world-wide companies have, a Louisiana the production is higher
major portion of their assets in than 40 barrels. As a result of

sey). This company represents ing in the midwest wherethe^it"'
about 17% of the world dil in- ]ook ig mQre favorable tha"ep2"p
dustry. Size permits it to enjoy ^here in the United States The
the general benefits of industry principal shortcoming is the div

the United States and improvement in the domestic industry
therefore can be of major impor-

For

growth while outstanding management provides Jersey with the
opportunity to do better than the
industry.
Management is also

the U. S. as a whole, footage
drilled in 1956 is expected to in-

stockholder conscious and follows
a liberal dividend policy.
For

tance.

Foreign

earnings

may

be

somewhat higher in 1956 but the
big
increment in higher
1956

these favorable statistics drilling
activity is increasing more rapidly in coastal Louisiana than elsewhere in

the United States.

dend
with

n

which Combines cash

stock

jersey)
tinue

in

standard 0il

This will probablv

but the cash

/ijlw
con

dividend nlus

p

'

Continued

on page

48

The Commercial and Financial Chronicle

.

..

Thursday, May 17, 1956

.

(2396)

48

7

47

Continued jrom page

Continued

The Secniily

Outlook lor the Oil Industry
the

the

best

yields to be found among
grade investment stocks.

high

provides

of

one

500,000

the Jersey

of

value

market

stock

the

which

on

Midale

field discovered sev¬

years

ago by
Shell. This
not
highly regarded

eral
field

was

and Dr. S. S. over a dozen—prices existing in Committee there will set the price
the dean of insurance the current tight copper market, for Chilean metal on LME or the
educators, predict that life insur¬ Not content with just diverting to U. S. domestic primary metal, deance in force will reach a trillion
Europe nearly 50% of the copper pending which is higher.
Chile,
it usually sends to the U. S. to get in fact, can be expected to resist
dollars in the next 15 years.
tune"

until recently.
It is now judged
Special Situations
to contain over 100 million bar¬
conclusion, four special situ¬
rels which rates as a major field.
ations
may
be
of interest in
Recently a well was drilled by
coastal Louisiana, the Tidelands,
a
French company south of
and
Canada.
First,
is
South
Midale.
This area was not ap¬
Shore Oil and Development.
This
looks
like
a
junior
Louisiana praised as possessing much po¬
Four

All

assets,

its

of

discovery

The

tential.

repre¬

yet been completed,
actually be a better well

not

senting about 50,000 acres are lo¬
cated in southern Louisiana. Much

well has
but may
than has

tracting
the

nadian

in

operating

company

company

the

does

company
owns

drilling

work

chiefly

barges,

which seems to
is well bol¬

Pembina

The

still in the early stage.

increase
nent

in

perma¬

The

from

platforms

which many wells can be
1949

drilled.

the company has used

its taxable income to look for oil.
It

has

found

barrels.
about

about

about $3

b/d

million

20

Production

5,500

runs

now

and

throws

off

million in cash which is

reinvested in looking for oil sup¬

plemented

contract division.

log

of

increase

should

but

are

with

higher

Cash earnings were
about $0.85 per share and should
production.
be

and

crude

oil

McDermott in the past
has gone into the Tidelands

In

the

year

and

find

for

it

the

good,

oil

in two

problem as might be as¬
blocks. One will be evaluated by sumed at first
glance. The major
an
offset
well
this
year.
The problem is to find enough oil to
other will be tested by McDer¬ maintain our reserve
capacity.
mott and Superior.
Earnings last
I then suggested that to benefit
year are estimated at $1.65 and
from this dilemma an aggressive
this year may exceed $3. • The
oil portfolio should include secucompany's competitive position is curities of
companies well situ¬
outstanding. Aside from techni¬ ated to
supply our future petro¬
cal know-how McDermott has de¬
leum needs on a long-term basis.
veloped much of its own equip¬ A few
individual securities were
ment
providing
an
additional
briefly discussed which fit this
protection to the company's com¬
objective.
petitive position.
Cash earnings
I hope that among these ideas
total about
great

are

of

some

interest to

you,

and

possibly of value.

interest

in

a

large amount of acreage. Its prin¬
cipal source of income is from
a

iy4%

in

gross

overriding

royalty

about

age

950,000 acres of acre¬
in western Saskatchewan. On

this
block
are
located
several
fields producing about 15,000 b/d.
The block has not been

thoroughly

tested

and there

are

undoubtedly

additional discoveries to be made.
The
gross

second

interest

is

overriding royalty




Thomas Hodgkinson,

Struthers & Co., editor,
assisted by a staff composed of

Bache; Allen Beaumont,
R. Staats &
Co.; Har¬
vey
Franklin,
Merrill
Lynch,
Pierce, Fenner & Beane; Edward
Goetze, Frank Knowlton & Co.;
Theodore Hossfeld; Tom Hough,
Jr., Halsey, Stuart & Co.; Law¬
rence
Prager, Bank of America;
W. Leonard Renick, J. Barth '&
Co.,
and
Ivan
Wing,
Weeden
William

Co.

Bache Adds Two

7

-

(Special to The Financial Chronicle)
■

ST.

staff

have

been

Bache &

added

to

Fla.

the

—

staff

of

Co., 556 Central Avenue.

Three With Bache Co.
(Special to The Financial Chronicle)

of Bache &

Co., 556 Central Ave¬
registered representa¬
it was announced by John

tive,
W.

the

Co.

in

St.

Goodbody &

Petersburg

a

2%%

thereto,

on

about

Co., New York City.

with

Orvis

and, prior

Brothers

:K;

to

be

&

own

in

competition

with

other

metals, LME prices can also come
down.

London Copper

Market Is Thin

London market for

The

year

still

they were last

this same month. The U. S,
smelter price is now one
the 46 cent quotation

custom

cent below
set

by tbe domestic

primary pro-

ducers some time back.

Rhodesian

been.

n0

real

break

in

copper

prjces and the basic market situation remains about the same now
as earlier this year.;
7
r

Chile at least is not

,

taking just

copper

^^Sirthk^. P?o£

a
rosy yie^of the copper
market but; is"decidedly bullish
°.vei: lts
71 hjrhirf
livery is traded there. Most of the>: tlcu^L it sees, itself
The chief
metal available to it comes from;1:, S^PPher
<LjlncS,tmniv in
the Messina Mine in Transvaal,^ fill Saps_m supp y
a
and custom
smelters.
A trickles?!f-• ?.?
1
from marginal producers in7vr;T° :mWtain its relative place
is

ably not much more than 2% to
5% of all the copper sold for de—

None

,:;$ima growing market, it is-hold-*
intihg/out to the companies the; in-?

the

offer any

companies

big

the

of

the U. S.,

reduction
they wilj
the Exchanger* increase *'.their - Chilean - output*
in the case of This is besides accelerated amor-

Africa and Chile itself,V&entiye of a progressive
exceptions, ever; in surtaxes op income if

rarest

metal on

They all sell—and
Chile must sell—direct to consum-

.

hoping for.
Conversely, however,

Beil &

Hough Add

(Special to The Financial Chronicle)

ST.

PETERSBURG,
S.

bert

Branin,

Wallace

E.

Henry

Fla. —Al¬

G.

Carse

MacLaskey have

350

First
of

Avenue,

the

North,

Midwest

Stock

Exchange.

.

Clifford A.
a

Marketers

Murray is conduct¬

securities business from of¬
276

Fifth

Avenue,

New

fices

at

York

City, under the firm name

was

a

slight

dip in demand can make LME
prices really tumble. It is not at
all
difficult
to
visualize
what
happen if suddenly addisupplies of metal should
become available to the Exchange,

could

tional

Fear

lurks

such

a

in

market

some
can

quarters that
too easily

be

formerly
Penington,

It was just about a year ago
that the Chilean Government enacted a new copper law to govern
the marketing of copper produced
by American companies. Before,
the Banco Central de Chile had
handled all marketing arrangements directly. But, under the
new law, responsibility was vested in a Government Copper Department. The law was intended
to encourage U. S. owned companies not only to increase production but to invest substantial
quantities of capital in development work and new equipment,

Eliminated was the previously

However, Chile has undoubted-' fixed income tax of 85%, besides
ly thought of the worst and very taxes on a portion .of earnings
likely has even now—as prices are overseas.
The companies now
being tested in London—an alter- were to pay a fixed 50% income
nate set of sales plans to put into
tax plus a sliding surtax, dimineffect if London price should ac- ishing
proportionately with in-

production. The surtax
at a maximum of 25%
tic primary metal in the U. S. when copper output equaled 95%
with Bache & and Canada. The latest news from of averaged production for the
Chile, in fact, is that the Copper years 1949-1953. It was to diminColket & Co.

Security Marketers.

Co. and

and

manipulated.

Forms Security

tization on new installations and

by-passing traders along the a more realistic exchange rate for
way, and, except now for Chile,
their dollar earnings. To any new
ignoring LME quotations.
- company which may establish itThe consequence is that even a self there, the prospect is held out
modest rise in residual demand— of no surtaxes at all.

ers,

on

ray

level, London prices are

third higher than

really

seen

is, demand in excess of norrequirements usually satisald Ruddy have become connected fied by customers' regular* supwith Bache & Co., One Lincoln pliers—can
send London prices
shooting up toward the sky. This
Road Building.
is of course what Chile is relying

of

new
a

Selection Trust has also made a
whether tying price to LME quoslight downward adjustment in
tations is actually the way for it the
pi.lce of its African ore.
to realize the greatest potential
Situation Remains Same
gain. Aside from the fact higher
prices for metal make it more difThe important thing to rememficult for fabricators to hold their b
however, is that there has

mal

ing

past two years he has

been associated with

remain

^

that

a

Newey, Manager.

For

including this one, but it still

does

BEACH, Fla.—John M.

Colville, Jr. has joined the
the St. Petersburg office

as

way,

Brady, David C. Gibson and Ger¬

MIAMI

of

nue,

record-

of

community

The

with

L.
Ted Kitchen and Francis A. Lay
PETERSBURG,

members

PETERSBURG, Fla.—Don¬

ald H.

skyrocketed to an all-time
high of £436 per ton.

comes

Inc.,

Colville With Bache
ST.

drop in prices in London in the two-month period after/quotations

William

joined the staff of Beil & Hough,

royalty company, Prai¬
rie Oil Royalties, Ltd. The com¬
small

were

Wood,

and

Canadian

a

worm"

a

$6 and it is not diffi¬

cult to forecast $10-$15 in time.
The third situation is a small

humorous

industry

with excellent

purchased leases jointly with prospects for higher earnings and
It now holds a one- consequently dividends. The Mid¬
quarter-one third interest in dle East does not appear to be as

has

its

conclusion, I have reviewed
outlook

ceaieiI;!"tlie^'<^y'5over''-'th*e' 2$%

Chile.

Canada and elsewhere.

Superior Oil.

5,000 acres located

courtesy

cisco

&

and

pany

of "The San Fran¬
Examiner," has again issued
newspaper
"The
San Franfcisco Tapeworm.""
Re¬
sponsible for this year's "Tape¬
the

Conclusion

reserves,

about

San

higher this year.

With this back¬

production

Calif.—The
Francisco Bond Club, through
FRANCISCO,

SAN

com¬

backed
by substantial reserves estimated
at year-end to be 41 million bar¬
rels
of
liquids and 375 billion
cubic feet of gas.
Earnings last
year
were only $0.10 per share
shares

3,800,000

rv-i.r.r'^

competition existing in the fabri¬
cating field, including the disturb¬
ing competition with aluminum.
Chile certainly has little choice
but to keep forcing the upper
limits on price in every possible

Again Has Tapeworm

earnings from the

by

my

S. F. Bond Club

mobile

for

demand

drilling

Since

opinion, a conserva¬
"growth" investment, suit¬

is, in

aries.

pany has used some of its income
to buy proven and undeveloped
^drilling barge. /However, as the
acreage in Pembina.
Gross rev¬
oil industry moves from explora¬
enues
for 1956 are estimated at
tion
to
development
offshore about
$9 million compared with
there will be almost an explosive
a
little over $6 million in 1955.

in the

.

i,.'

interest
But u .g in keeping with the
able for both individual and in¬ which thus might be thought to antics of the London market that
exist between them and Chile m gince the first of this month—May
stitutional purchase.
A substantial amount of stock trying to get the highest possible _prices have recovered 20 of the
is presently held by mutual funds, prices for copper is not exactly 9Q pounds sterling they lost in
complete. Anaconda and Kenne- the decline from the record level
insurance companies, and fiduci¬
cott must think in terms of the 0f jast February. Even so, at their

in¬

moment,

the

At

interest lies

vestor

;

concerned

particularly for permanent

platforms.

\

,

tive

The com¬

field.

.

a

It

by assets.

the

in

gener¬

on ;a

available not be overlooked, however,
and
Kennecott - are
price of about 29%:-Good trad¬ Anaconda
ing markets for the stock exist themselves large fabricators and
in Boston, New York City, Phila-- so buyers of metal, that is, of part
delphia, Chicago and Los Angeles. of their own output, here and in

with
pany has a major spread of 72,building permanent platforms off¬ 000 acres of leases in the general
shore, laying underwater
pipe¬ area of the Westward Ho oil field
lines, building
docks, dredging
discovery in 1955 and the nearby
channels, etc. There is a rapidly Harmattan oil field. Exploration
growing' need for this type of and development of this area is
is

but

available

yield basis.

Market and is currently
at

opment drilling in the Westward
Ho area of southern Alberta and

itself,

drilling

no

mobile

no

The

continue.

will

this

believe

stered

the

that

in

It is Home Oil.
The company is benefiting from
ville around to Florida. Its gross
a
major increase in production.
profit margin averages 20-25% For
example,
1954
production
per year.
Know-how is excellent
averaged 5,400 b/d, 6,200 b/d in
and has been developed over sev¬
1955 and by mid-1956 production
eral decades. The company's sales
should average 10,000 b/d.
This
double every three years and I
increase is due largely to devel¬
in

and

softening of LME prices,

One reason the big copper pro-

successfully

just

has

ernment

in'Chile;^'*"7r.iv'The somewhat volatile nature
If tying' tlip U. S. pride; forfChil-f. of/.copper prices .on the/London
All of which adds up to a lot of ean metal -"to LME should result-: Metal Exchange is :of, course ' an4>
rnotol
hprp a P'ni H
«■»/>.-CTTS»r)-V__rv\ZPTV»
investment value,
and'"explains
why Beneficial Standard' is "The
Security
I Like : Best."/ ; It
is
traded
in the Over-the-Counter; somewhat more. The 'fact; shoul<fr;$jfe*;cegj^*ma^

little risk and

entail

of coastal Louisiana
Gulf from Brownes-

swamps

be

currently

ous

-v

con¬

prices there, the gov- jany real

the higher

both
Anaconda and ducers give for their reluctance
conclusion pressured
its capital Kennecott, its major producers, to to tie their own prices to those
sell their metal coming to this of LME is that prices there flucstock is an outstandingly attrac¬
tive "growth" investment.
But it country at prices quoted on the tuate too violently, dropping, as
London Metal Exchange
(LME). they did over the last 15 months,
is even more than that; it is a
From the point of view of Chilean to a low of 33 cents for the period
"growth" investment-vwhose val¬
interests, this step appears a ra- in May of last year and rising to a
ues can be accurately measured*
tional one.
Prices up to recent record high of 547/s cents some
and currently purchased at veryweeks have been higher in Lon- months
ago.; They prefer, they
low
cost;
and
unlike
most
don than anywhere else and cop- say,: for prices to be steadier so"growth" investments,, and par¬
per
is,; after allI an dmportant^that customers can set their own.
ticularly most life issues, it is
source of .taxes and employrtibnt; jprices for advance listing.
;
;
future,

reached

brilliant

is leased out to the yet been drilled in Midale. Prai¬
rie also owns a 3%% royalty in¬
companies, some requires
terest in about 500,000 acres of
continuous drilling to hold the
freehold land in
southern Sas¬
lease.
The stock earns about $1
katchewan. This is a large spread
per share and last year paid its
in small individual parcels. Much
first dividend of $0.50.
I believe
of
this: is
located in southeast
it sells at about half of the in¬
Saskatchewan
where
about 20
trinsic value "and is one which has
fields have either been discovered
been overlooked by investors. The
or
extended in the past year or
area
is
outstanding, the" stock
two.
Prairie is one of the more
looks cheap and provides a fair
attractive
small
companies * in
income.
Canada which through its broad
Second: is J. Ray McDermott
acreage representation provides a
which
represents
an
excellent wide exposure to future discov¬
participation in the Tidelands de-i eries.
%/ „*"
' *•7 '
velopment.
McDermott has an
The fourth is also a small Ca¬
a

Stand¬

Beneficial

amazing past record and its

must

major

as

of

view

In

ard's

of the acreage

outstanding reputation

magazine,

Huebner,

In

Land.

Shortage of Copper Due
To Rise in Living Standards

I Like Best

southern Sas¬
is located

in

acres

katchewan

;7:v'

; 7

Continued jrom page 3

from page 2'

Mr. Mur¬

tually

drastically below the
charged for U. S. domes-

fall

46 cents

creases in
was fixed

Volume 183

ish

Number 5534

one-eighth

1%

of

1%

>

.

for

The Commercial and Financial Chronicle

.

undue distress to the indusWhether this is really so or
not time may tell.
A reason the big producers are
apparently somewhat uneasy over
prices at the present levels is that

every

the base producShould
production

increase over

tion

level.

compared

the

surtax

with

the

base

be

zero,

would

New copper companies which be-

gin mining in Chile, in the future

owned

Smelting

they

incometax
and

U. S.—or to raise real wages and

other income

,

double

rate,

ing

try

surtaxes at all.

no

While

ostensibly

fear

courage

these

prices

may

en-

to

turn

in-

consumers

creasingly to aluminum

as

con-

by the mining companies,
Chilean Copper Department
supervises all
copper
sales

this direction, so far as the copper
industry is concerned. It must be
a source of very scant comfort to

under the

law

new

are

now

trolled

the

through

11-member
board, copper men, too, that aluminum
nine of whom are appointed
by- prices can now probably only go
the government, to insure that all up now that the U. S. domestic
sales

made in the national in-,

The

terest.

must report

mining

on

operations

ment

Previously

companies
and

sales

prices

Chile^

sold it overseas.

was

} The law also

:

•

is

of

course

the

spectacular

fn the standard of hving
thmuLhout the world which™!
behind the curre^t shortrges and
high prices of

:

set an official rate

exchange at which

It

copper everywhere.
The strength of demand for copper
can
be attributed in very

copper pro-

large part to the increasing trend

buy Chilean pesos. Unprevious
law, the exchange rate varied depending on

toward electrification in Europe,
Asia and elsewhere. Once a country embarks upon some vast electrification project, it must be remembered, demand for the needed
copper is not going to be affected

ducers

can

the

der

how

the

money was to be used
1954 this rate
averaged 70
pesos for $1. Now the government
and

in

exchanges

pesos at the rate of 300

for

$1. Since most of this year's
output has already been sold, it is

understood,
copper
producers
probably won't benefit from an
even

recent move

more

freeing

the

the end of the year
Anaconda

by Chile,
rate, until

exchange

later.

or

c(eoern

spending

*250 Million

Responding to such

encourage-

ment, Anaconda is spending nearly $250 million to bring in a new
and

mine

install

other

facilities,

including a sulphide plant, a
finery and means to recover
important

by-product,

rean

molybde-

Cerro

is

de

installing

new

Pasco

near

rnnnor

is

Rio

Santiago

than

copper, on

the

27

said

Blanco

to have

million

tons

of

option,

the machinations of Chile that

«JL0<S
of

about

creases

33%

vSHLTouarter
year and
quarter
a

o? 45CrceenW

one

l°£?i
50%

to

Metal

from

to

that

ago,

Exchange

46

cally-minded

in

cents

made

copper

and

the

from

infSBS ^ thinkfng
place

ore.

.

even

to

marginal costs of production that
turn

can

for

explanation
either, although this point should
probably
not
be
strained
too
an

the

monetary

take

Djete

st0D

bv

of

adonting

Glides
cridif aren't

tbe

to

soph

that

even

nepessities

Sdinarv RvWTwiw
hot

tight

amoonts

available for

COmmonnlaee

the

e*f

t

of

if ?

i

doubt but that the central bankers are better geared—psychologically-to the economics of scarcity
than to the economics of abundance and in the U- S-today we are
definitely in the area of abundance. A higher standard of living
f achievable today than ever be-

fore-

For our purpose here, what
must not be lost sight of is that
if resources may not be needed
in one spot they may be very
much

needed

in

about 1%
the

necott

of

contain
ore

?n

r'hiie

icon

nrnHnlt'in

noshing

another.

From

nhingr

tn

at

?xfhiph
g5
t?re
SI Snt t^ proc?s?ed
?*PPerc T?ent 13 dec mmg below
+■

j

of

tons

15%

we

cooper

™

-

'th»n
nnnmnfnT'So'
mined more than 5,000 tons of ore

fal1 and by diamond drilling has
^ust lQcated another zone on its
property with even mor^-27.8%
ore. Ore bodies of this
grade are indeed a rarity today.,
Generally, they occur in pocketlike structures and are not extensive.

f^iitaJ?f?aSh1Ve/iiri—copper

nf

f0'

Tillion

about L5 /o coppe .
The Temagami Mining Co. in
wbich Quebec Metallurgical In™

averaging nearly 25% copper last

copper

TT

is

to

tone

vear<?

pS fhe ^e^L? vf ^ productlon at

*

Modest

Tn

estimated
hillion

one

S

authorities

will probablv do well not to bring

$>e e^onomie sv?tern
monev

over

about

into

production within about five

deposits,

s

averaging

lts
locations, as
mines of other

1S'

Much 0f £be expansion

t

at most domestic

U. S. companies in recent years.
In Canada, every likely spot
from coast to coast is being ex-

Plored and new capacity is fast
coming into production. In 1955
Canada c°PPer mine production

in Can-

Mucn 01„ine expansion in uan

ada °yeJ *be next tbree years is
expected to come from expansion
of such Properties as Campbell
Chibougamau Chibougamau ExPlorers' Amulet, Dufault, Gaspe

np^Coutou?afrorn Heath^teel

over the year «ew putput from Heath Steel,
before to a total of 324,604 tons gruniswek TiJt Cov«f Gull Pwrf,
and refined output increased 37,- ^o,_uniano
835 tons to 290,478 tons.
thwo minp
lr>!L
tn
The principal increases in mine
aione are e^ecieoio
production came from two new J:™*
u J's
ls y-a '

jumped 24,678 tons

properties

and

four

next year and iuj.ow

well-estab-

August 1954 to the 1955 year end,
for instance, Britain exported 33,-

lished producers. Gaspe Copper yonSj in iyo».
Mines Ltd. began milling ore on
Overall free world capacity, as

697

April 7, 1955, and produced

in 1958, by 123,600 tons. Including 120,000 tons anticipated from
South America in 1959 or later,
total free world capacity thus will

automobiles,

washing

machines,

television

sets, vacuum cleaners,
gadgets of all types which have at
last found acceptance there. Recent

weakness

in

demand

copper

there is due, in part, to apprehension over the automobile market,
over

mobile market of

the

course

auto-

exists in

the U. S., too. Men closest to the
business say the uncertainties in
business

the market

arise

from

the

tons

of

Conner

wire

to

the

nations, only a third, however,
what some observers thought

was

No

ing its part,

too.

This credit

re-

as

natural result of tighter money
generally. It is also due to the
planned program of bankers to
a

an

^ftain
they fan recTer
if
necessary,

from

such

a

depreclat/ng Automobile
commodity

automobile.

of"!

anda Mines Ltd., 5,853 tons; International Nickel Co. of Canada
Ltd., 4,958 tons; Hudson Bay Miniog & Smelting Co. Ltd., 1,687
—since 1947.
But whether new
tons, and Normetal Mining Corp.
demand comes
from
Russia
or
Ltd., 1.109 tons.
1
elsewhere, the fact should not be
An important development for
forgotten that the market for cop- Canadian copper mining also is
per is very much a world market
the decision by Campbell Chi' bougamau Mines Ltd. and assoThe Real Solution
ciate
company,
Chibougamau

Europe.
Russia of course has
been consuming all its own out-

of copper, estimated to have
nearly doubled—to 351,000 tons

put

fact

probably oversold
doubt, greater difficulty in obtaining credit is play1955.

as

S.

ehanges

brIS

to

lesI tLn

by

Ltd. commenced on June 1, 1955,
and concentrates containing 10,987
had been sent. More recently, it ions of copper were produced.
tities of copper are now going into
has been reported, Russian purIncreases in output or deliverthe production of consumer du- chases have offset some of the ies of copper were reported by
rable
goods>
using
electricity— effects of the credit squeeze in four producers as follows: Nor-,

is,

of

U.

these

nrenaring

by
Pprn

to

of

assets,

domesti-

Apparently also, it isnt
one

in

until

n^

10.25%

Sonthprn

reported

probably'not

In Europe, especially West Germany and the U. K., large quan-

in

formetal soldonthe

London

for

changes

av£raging
2-2% striction develops not only just
an

which it has

certainly elsewhere than to

30

small

realistic approach,

more

is

16%

,

and

is

of

nist

in

stations

by

and

Meanwhile

Corp

Pasco,

Mine

reserve

a

automation.

ground

It

tive

posi-

more

Dodge
de

Hunter

will increase this year by 229,500

that

more

a

Cerro

Newmont Mining

The

have*

can best be estimated at this time*

Corp. is exploring by 9,000 to 10,000 feet of
diamond
drilling
from
underMine

mechanism-

this is probablv

Phelps

by
American
Refining,
16%
by

con-

very

Apprehension

heavy machinery at its properties
and

o^ prXctTve

and

57.75%

49

price. In the U. S., this trend to- Soviet bloc within quotas agreed centrates containing 6,692 tons of
ward electrification is to be noted, by the Western Powers for stra- copper.
Milling operations at
in Part, in the movement toward tegic trade shinments to commu- Campbell Chibougamau Mines

num, from copper ores.

Kennecott

much

ma-

exist

can

for

Honht

rise

by the Central Bank which in

turn

of

th^e;

course

or

needs.

Trend Toward Electrification

Deoart

LS whS!

from

copper

power

salos and

the

of

no

sales

ewer

all

sold

had

to

industry has turned to

coal for its

companies

comnanv

other

aluminum

and

men

chines—so that markets

an

are

soever

ing productivity of

sub-

a

stitute. To a degree, much harm
has probably already been done in

sales

copper

substantially, something made possible by increas-

(2397)

Fully

that the only real
and high
increased capacity
the

Mining & Smelting Ltd., to build
a
$7 million custom smelter in
the heart of the Chibougamau

copper

industry, world-wide—but
largely a U. S. effort—has just spent or is about

area,

nevertheless

Montreal, to refine any copper
ores minded in the region.
/ ,

prices

Of course, what might be
good financing for an individual
item, such as an automobile, might

to

is

to spend

a

shortages

about

miles

200

north

within

grow

a

short time to 3.5

million tons. This compares with
mine production of 2.7 million
tons in 1953. The only question
which remains now is will all this
new output be enough,
u

D

RlocL P0

Ooens

F
NEWARK, N. J.—H. B. Bloch
& Co., Inc. has been formed with
#

offices at 27 Academy Street to
engage in a securities business,

pfficers are Harriet Blitz, President and Secretary, and Gladys
I- Weldon, Vice-President and
Treasurer,

of

Wavne Hoilffh Branch

A

wayne nougn ordiiti

total altogether of $114

Chibougamau to Get Smelter

LANCASTER, Calif. — A.
or
more than 25%
to free world
Work on these facilities, it is Wayne Hough & Co. has opened a
capacity within four or five years) expected, will probably begin late branch office at 44830 North Elm
compared with 1953 when some oL this vear and be completed in Avenue
under the direction of
billion

to

add

about

the largest projects
About

dealer! col!

W

price.

aware

solution

tons to 3.1 million tons; next year
an additional 105,500 tons, and

by

fourth

a

800 000

tons

were

initiated,

this

capacity

of

intended

that

M

Initially, it is Frank Gillett.

about 18 months.
the

smelter

will

oflhe Amines to°come ofcampbefl Chibougamau"^ N°W MaSS" Life Fund Dist*

into

production^of

Magma

has been

course

Copper Co's

San

Manuel

?!
LTbCless
a^TXfe
the business worfd"
world as
a whole. ^ ^m^dtd^
won'£ be jn fud production
^^bb?J;euntil the latter half of this yearassume their share of responsibil—
fn

Mine

Arizona

which

while

gry^

_

.

.

.

,

,

possibly also the requirements of

thT two otLi
ducers

in

the

copper

it

but

area

Satoother
to

ore

is

planto
able

any

pro-

property

the

ava£
which

BOSTON, Mass.—The name ©f
Fifty State Street Company has

pnmnletion

of

s

to

Massachusetts

f

H

_

With Schreiber, Dail

might come into Production thereFynpptpH

changed

been

Life Fund Distributors, Inc.

snur

,

«y for the lay-offs and shut- ' Just about every known de- ling7rom
lle into the
cI
T""" Z
t,'
downs in their business by failing posit of copper ore m the world u"®,
ate Pali bv
ST' vOUJS' M°' _ 'ff -S:
much. Some producers say, how- to deliver full value. New shades
js n°w being worked or is about 4°"^™dian National Railwav of Lu,cas has become associated with
ever, that if prices were tied to of
paint
might
produce
new
to be In Africa, .there are two 'be Canadian
w y o Schrelberi Dall & Co-> 315 North
the cost of the "marginal," that is, models but prices, generated in
potentially large copper proper: ■ ™urse will aiso_enMnce ine cop Seventh street.
the "high cost," producers, quo- the atmosphere of near monopoly, ties, the Baluba
and Chambishi P^.„nminlng ProsPects 01 mat
tations could still be about half don't create new markets.
Pub- Mines, being held by Rhodesian region.
$tix Adds to Staff
of what they are. One U. S. Gov- lished prices of course are not the
Selection Trust in reserve for the
Copper ores at Chibougamau
pinancial chronici.)
ernment contract for copper from real prices, a fact which only acfuture but the capacity of other are of higher-than-usually-to-be( p
Rnnald
T
ore from a new Canadian mine is
centuates of course the unreal new African mines is expected to found grade running up in the
ST. LOUIS Mo
Ronald J.
based on a 24-cents-a-pound pur- world which the automobile inincrease by 137,000 tons within case of the Opemiska project to Berkowitz iss now withStix&Co^
chase price. Canadian mining peo- dustry has created for itself.
two years.
5% copper content. Ore at the 509 Olive Street^ members of the

L!ttyv

!fe;yT

Ch")

.

National^Kai

_

^

.

pie

themselves

costs
a

place

between 30

at

pound.
Some

marginal

and

35

cents

companies big enough to

be able to achieve economies from
not

of their

reluctant

operations

to

disclose

average costs are around
a

pound.

seem,

claiming
some

Incredible

there
to

are

be

of their metal

ably less than
Without

18 cents

it

as

even

to

are

their

may

producers,

able

on

copper

has yet to be felt.

•

sheer size

The full effect of reduced automobile sales

turn

too,
out

production

At the moment

certainly,

no sympathetic depresexists \n copper. Anyhow, a
s!lght dr°P in Price can be a good
slgn as wel1 as a bad one. But,
meanwhile, copper mines are not

shutting down.
It is undoubtedly getting into
another subject but worth noting

for consider-

at

that.

mental

this

point that certain fundaadjustments in economic

Under

the

circumstances,

ploration
of
course
apace everywhere.
As

ex-

continues
a

general

rule, mining companies don't talk
much about where they are looking for new sources of ore but
Kennecott, however, has disclosed

Campbell-Chibougamau Mines is Midwes
3 ^

grade'. bhamond

oq

xc ang

drilling

by Coppercliff, New Royran and
Quebec Chibougamau has dis-

Joins Smith, roiian
Special to the financial-chronici*)

^las^do

OMAHA, Neb.—Walter W. Pe~-

2/2/© and by Crianaine^ ana uoai-

terson is

""J? sor"ewnal; cesser reserves

&

^

within Smith, Polian
Omaha National Bank

now

01 1/c graoe.
Building,
property near Glacier Peak in the
In British Columbia, Granbv
State of Washington, where re- Consolidated Mining, Smelting &
With Fdcrar Norris
suits to date have been encourag- Power is studying the advisabil»
ing enough to warrant continua- ity of reopening the Phoenix Mine
(special to the financial chronicle)
fi°n of - the work and also, to- near Grand Forks, reported to
CHARLOTTE, N. C. — John G.
it

is

searching

for

new

ore

on

thinking will become increasingly

gether with the Hudson's Bay Co., have 2 to 3 million tons of low Dawson has become associated
*n a section of Northern Canada grade ore and on which the com- w}tb Edgar m. Norris, of Greenadjacent to the Arctic Sea where pany has taken an option.
ville
S
C
prospects look just as good,
•
Beattie-Duquesne Mines Ltd., vu e'
\
men in the business are to be beomv of abundance.
The problem
a former gold producer, reports
c
C*.
lieved, however, tonnages reach- boils
down
either
to
lowering
The Southern Peru Project
that it expects to commence millWltil oOUtllCiIl, Inv. v^o.
ing the market would be as great prices drastically something made
A very big foreign investment ing copper from not only its own
(Special to the financial chronicle)
doubt,

high

prices

have encouraged not only greater

necessary in this country the

production but also expansion of
capacity.
If some well-informed

the

more

American economic system
moves into the area of an econ-

.

if prices were 40 or even 30 cents
a

pound.

But

of

course

all

this

leads to the reflection that copper

prices

could

dip

considerably

from present levels without caus-




possible by more efficient methods of production, lowering costs
—but this is probably too negative an approach for a dynamic

by U. S. companies in copper min-

economic system like that of

Peru Copper

the

ing,

second

project of Southern

newly-discovered
Hunter
Mine
but also from two neighboring
mines
in
northwestern
Quebec
Province in July at the rate of

Corp., an enterprise

about 4,000 tons

only

to Anaconda's
$250 million effort is of course the
$200

million

a

CHARLOTTE, N. C.
H

jjood

'

is

now

—

Robert

associated

invpstmont

with

Comnanv

^outnern inves
day altogether. Inc., Johnston Building.

y

y,

The Commercial and Financial Chronicle

(2398)'

150

that

9

Continued from page

Tight Money in

Tight Economy

a

is likely place in bond prices. It is a ques¬
tion of just where the decline in
to exceed that of 1955.
reserves
would choke
It looks now as though an agri¬ available
cultural bill will be passed. Poli¬ the growth potential of the econ¬
We doubt that a precise
tics predominate over economics omy.
in an election year. Just what the mathematical answer is possible.
Current Federal Reserve policy

this

year

politicians will bring forth I

do

not know. Some of the details will

probably be
will

be

unsound

but others

constructive.

Whatever

program

funds

emerges,

will

be

farmer.

It

allocated
0 ,;v

;

,

to

seems

Federal

more

the

to

"v.'''

—

therefore

us

coupled with a Treasury surplus
instead of a deficit has resulted in
a

declining rate of increase in the

supply. It is now rising at
the rate of only about 1% as com¬
money

pared with a 4% increase in the
Gross
National Product.
Hither

that

the money supply will have to in¬
areas
crease
more
rapidly than it has
correction, recently or the rate of growth in
such
as
consumer
credit, auto¬ the economy will slow down. And
mobiles, residential building and so we have a dilemma.
agriculture, will be more promis¬
With
tight conditions in most
ing in the fourth quarter than segments of the economy, with
they are currently.
many materials in short supply,
the situation

currently

Thus

undergoing

have

we

positive

the several

in

and

an

of very
factors

array

stimulating

modest growth in the
and with

with only a
labor

in prospect,

force

converging in the fourth quarter. the business outlook for the latter
of the year strong, the
of higher busi¬ months
ness
spending for plant, equip¬ monetary authorities fear that an
ment and inventories in excess increase in the available supply of
The combination

of higher govern¬ money might encourage a specu¬
spending for defense, roads, lative accumulation of inventories
public building, etc., of over $3 and bidding up of prices. In other
On
the
other
billion, an increase in consumer words inflation.
spending of about $7 billion, and hand, if the banks are not able to
more if there is a tax
cut this meet the increasing demand for
to finance the potential
year, plus improvement in auto¬ money
mobile
production,
residential growth of the economy they could
break the boom. It is our opinion
building and
agriculture,
pro¬
vides very powerful stimuli to that neither of these extremes
the economy. All of these pres¬ will occur. We will have neither
rampant inflation nor a break in
sures
come
into
of

$6 billion,

in

a

year

when the working age group (18
to 64) of the population will in¬

of

terms

In order to support an

the

Gross

National

Product

eral Reserve Board several years

their policy
supply sufficient
crease
in
the Federal Reserve money to business to permit the
Index of Production to about 148 normal historical growth of the
economy. This, as I have said, ap¬
at the close of the
year, an in¬
proximates 4%
a
year
on
the
crease
of about
if

business

course?

follows

It

would

its

natural

mean

2%-3%

general
of

would

basis

in

Product
about

$406
that

mean

the

at

billion.
on

Federal

year,

Product

1955.

and

of

compared
The

year

both, physical

$402

Index

National.

$387

billion

as

whole,

production

mitted to

com¬

to 4%

Tightrope Walk
Contractions in economic activ¬

such

an

is

calculated

a

lated

risk

It is

our

be¬

in

requirements or
by
a
change in the "Bills only" policy
and

of the Federal Reserve Board that

will

reserves

be

made

available

to
support the normal rate
which is approximately the
We
normal historical growth rate of growth of the economy.

of

year,

not

believe that the

do

Federal Re¬

Board, the Treasury, or the
Up to now I have been point¬ Administration would
conspire to
ing out what we believe the eco¬ throw the
country into a business
serve

nomic

ness

potential

Growth

such

be

if

natural

as

busi¬
course.

indicated

cannot

unless financed. This

means

increase in bank credit.

How¬

occur
an

its

runs

to

find that bqnk borrow¬
from the Federal Reserve

ever,

we

ings

banks

are

thing

over

now

averaging
billion

a

some¬

dollars

as

compared

with

year

Furthermore, the def¬

ago.

icit in free
ber

banks

$400

of the

reserves

is

now

of

was

over

a

from

mem¬

year

in

excess

$200 million.

therefore
has

an

a

approximately

$500 million whereas
there

million

ago

reserves

The

swing

to

deficit

excess

been $700 million in the last

year.
I

-

•

The

banks today are

their?

difficult

•reserves

by

finding it

to

increase

selling

bills

since they have sold most of them

already and few remain in their
hands. They are reluctant to sell
their longer term maturities since
to do

so

would incur

heavy losses

due to the decline that has taken




or

depression.Rather,

think that

they will aspire to

policy that will permit normal
growth while trying to prevent
excesses of dangerous magnitude.

a

There is another
doubt

that

choose

the

rupting

the

reason

authorities

alternative

our

why

normal

of

will
inter¬

economic

growth trend. If America is to
tain its

meet

the economic

challenge of the cold

calcu¬

The

tight money in
a tight economy is in the long run
a more
prudent policy than easy
money would be in a tight econ¬
omy.
All policy moves contain
elements of risk.

war

it must

strong

economic

1950 to

and

growth.

preserve

In

the

same period industrial
production in western Europe in¬

lemma

will

be

the interest of

in

which means an uoturn
activity in the closing

growth,

in industrial

months of 1956 and
in the price level.
be

can

some

This

increase

believe

we

accomplished without going

to extremes.
As

look

we

term

continuation

trend.

growth

there

beyond the nearer-

foresee

we

the

will

To

creasing
search

variations

be

quarter

to

and

year

to

and

Tight Labor Market ;

a

strong advance in the upgrading
family incomes. In 1946 only

of

four

million

total

of

and

$5,000 and

000

but the dynamic forces that

by
will

II

These

continue.

estimate
in

of

population of

the

increase

14 million

What is

by 1960.

sons

include

over-all

an

per¬

relationship between the consum¬
ing but non-producing age group
and
the
working age group.

By the consuming but not pro¬
18

and

64

those

we mean

over

64,

ten

by

crease

the

in

order

those from

tion

of

must

persons,

age

group

by only four
This means

the

of

that

increase

of

the

occur.

To

in

the

working
attain

force

this

a

amount

put back of each worker

and

must

-

of

the

provided with
plants and equip¬

This year, we will be rounding
the bottom of the downward

the

the

marriage cycle and
of
family formations

rate

of

earn

"Thus, while the

the

over

fundamental

economy

five

next

past

in

10

not changing materially

are

therefore

and

at work

the

over

basic

and

will

continue

in

force.

In terms of the Federal Re¬

serve

Index of Industrial Produc¬

Continued

This

in

price

years.*

level

judgment repre¬
potential of
our
economy.
If America is to
continue to assume its responsi¬

sents

the

bility

to

our

long-term

the

alities

fore,
let
us
preoccupation

the

in

these potenti¬

war

be

must

world

free

economic cold

attained.

There-,

permit

not
with

the

our

current

decline in automobile production,
in

housing starts, farm income and
policy of the Fed¬

the tight money
eral

Board

Reserve

vision

of

which

have been stimulating

economy

are

still with

us.

reassert themselves

have

our

longer range out-,
fundamental
forces

The

look.

cloud

to

the

our

They

after

we

completed

the
readjust¬
ments that are now taking place.
The year 1956, which began hesi¬
tantly, will close in a strong up¬
ward move.
The normal growth
trend

of

the

country will not be

interrupted.

from page 4

The State oi Trade and
hour

an

for

cdntinuous

Industry

jobs. The final cost would be slightly
jobs averaged in, but it still would be

lower with noncontinuous

prohibitive, it noted.
contracts

On

negotiated by other industries so far this year,
been for a 12-to-15 cent package, with

the national pattern has

about 8 cents of this in wage increases.
A

compromise

reached

on

by agreement

|

premium issue might be
higher shift differentials, the magazine

the
on

week-end

declared.
Other
1.

compromises in sight include the following:

The

union

wants

52-week

a

guarantee

of

supplemental

unemployment benefits. A settlement ot 39 weexs may be reached.
2.

Five

or

six cents

hour will be the rock-bottom figure

an

the union will settle for in wage increases.
3.

The union

wants

two-year

a

pact, reopenable

on

wages

only after one year, and many steel companies want a three or
five-year document. A compromise may be a long-term contract,
reopenable annually on wages, this, trade weekly further reported.
If there isn't a steelworkers' strike,

out

of

total

will

forces that have been

horsepower

ment.

trend

five

the

I have indicated.

those

will

The

be

efficient

18

year

a

a

years.

pro¬

must be

he

of

families

continue

living, continua¬

greater

more

otit

of

$5,000

those families earning $5,year an over have increased
350%. This upgrading trend

mil¬

maintain the Ameri¬

to

ductivity

million

working

standard

can

next

prospect for a higher price level
in
1960,
the
ultimate
dollar
amounts
will
be
greater
than

by

and

years of age.
Between
1960 it is estimated that

whereas

in

Productivity

ducing age group
under

This

year.

over.

out

earned

a

im¬ years

more

portant, however, is what hap¬
pens
in
that
period
in
the

Must Increase

a

families

million

been

omy

familities

million

38

over

million

have

stimulating our econ¬
since the end of World War

the

over

change

cannot be estimated with fine ac¬

development we can
look forward, to a continuance of curacy, which is why we have
made the 1960 projection in terms
large amounts being spent for cap¬
of 1955 dollars. However, with the
ital improvements.
;

year,

steel production will still

be down in the third quarter

because of reduced demand and the
effects of vacation and hot weather in the mills. The automobile

moving upward, start¬
ing slowly at first but accelerat¬

industry would be the biggest consumer slowing down.

ing

they have in any quarter in the last year and* a half. * Dema.id
hasn't lessened, but some consumers are waiting to see what the

will begin

as

decade.
the

the

reach

we

Between

end

1950

of

and

the
1955

number of families increased

by 3.8 million.

Between 1955 and

1960 it is estimated that the
ber

of

4.7

families

million,

than

or

the

in

will

about

25%

previous five

Order books

by

more

years.

the

cities

and

into

the

having been

so

lished

continue

will

suburbs

definitely estab¬
ovejr

the

foreseeable future.

in

the

and

a 11
population
does also acceleration

o v e r

as

rate

the

of

family formation

consuming age

increase

grouo

in

the

versus

the

working age group in the popula¬

western Europe.

pled with the slower rate of in¬

tion.
The increase in population cou¬

quarter are filling more slowly than

expected steel price increase will be.

Last November, "Steel" pre¬
ton by July.

On steel products in

$12

a

freest supply, mills will go into the third

quarter with the smallest order carry-over in more

than

a year.

shapes and tubing continue to order all
they can. Steel mill equipment order backlogs are expected to
average 24 months soon and at present they are at 15 to 18 months.

Users of plates, structural

Although demand is high, repair of furnaces and labor diffi¬
culties lowered steel production for

the second consecutive week.

Output of steel for ingots and castings for the week ended May 13
hit 97.5% of capacity or 2,400,345 net tons, a one-point reduction
from the
at

or

preceding week. Five of 13 districts, however, operated
with the Far West continuing at 109%.

above 100%

For the week ended May 9,

-

greater

for third

dicted steel prices may increase

num¬

increase

trial growth in Soviet Russia has
been considerably greater
in
the United States and
possiblv in

believe

The

re¬

years,

of

we

for

spent

from

growth,

accepted literally, competent ex¬
perts have estimated that in the
last five years the rate of indus¬

amounts

sure,

be

fect

not

trend

With the trend toward in¬

year.

total families in the country have
increased by 30% in the last 10

of

Russia's

are

Price Inflation Outlook *

for

49

creased at an annual
average rate
of 7% -8%.
Although statistics on

growth

We further estimate that

With the

demand

comes

tight money in
The tight situation in labor has
tight ecohomy than it would be enabled the worker to substan¬
with easy money in a tight econ¬
tially increase his income over the
omy.
The resolution of the di¬ last 10 years. This has resulted in

These migra¬
accentuate the dynamic ef¬

Thus,

Out of this

a

tions

infernal

National?

Gross

a

$303 billion in 1955.

to be smaller with

its

average rate of 5% per annum.

of their sales each year on

year.

years

United States increased at

estimate

Product in 1960 of $480-$485 bil¬
lion as compared with $387 billion

research and development increase
their sales approximately 10% a

The risk appears

The
migration trends to the
southeast, southwest and far-west
1955 industrial production regions, and the movement out of

remain

an

re¬

leadership in helping the

free world to

in the

we

During the

•

Money Supply Must Increase

increasingly

recession
we

risk.

that

is

increase

reserve

the economy.

This element

operation.

"persons.

lief that either by a reduction

with 139

In terms* of 1955 dollars

1955.

produce
and in¬ in 1955.

better products

index of about

probability that wages
plant and equipment, and here will continue to increase more
it in ooserven
uiat u one noos '.ne
rapidly than productivity-we look
amounts spent by manufacturing for a further increase in the price
that the Federal Reserve Board companies on research and devel¬ of manufactured goods over this
will be walking a tightrope be¬ opment for any three-year period, period. We also believe that the
tween inflation on the one hand the total approximates the amount readjustment in agricultural
and deflation on the other. There that these companies spend on prices has reached, its low point
is always an element of danger in plant and equipment in the fourth and that it will be in a rising

ity grow out of previous excesses.
Therefore, the way to prevent such
contractions is to prevent the de¬
velopment of excesses. This means

lion

a

not

in
we

be

an

and

will

business.

and

would

look for

we

160 in 1960 as compared

to

as

so

take

positive action to prevent

development.

tion

Thursday, May 17r 1950

•

restraining ex¬ crease productivity by the devel¬ personal income, also in terms of
prevent recessions opment of new techniques. We 1955 dollars, will reach $375-$38ft
and depressions.
find that companies that spend 3% billion in 1960 as compared with
growth

ing

cesses

ment and has stated that it would

in

Gross National
Product, would be
up about 4%
over
the previous

foster¬

means

and

expenditures
wasted if they did

the consuming age group will in¬
is

policy of full employ¬

a

as

in

America

in

research

new

1955 and

Only"

Administration

decline in

billion

a

"Bills
The

on

industrial

18, to

Reserve Requirements and

working force has
industry spending in¬
creasingly large amounts annually
These

the working age group

This

Reserve

Gross

a

about

with

that

situa¬

to

annual

an

for 1956 would
average out in the
area of 143 as
compared with 139

last

be

average.

annual

an

declared

ago

would

the

price lev^l, and a Gross

National
rate

in¬

an

international

the

the

in

crease

resulted

place in world
affairs. This philosophy of a strong

quarter

business.

increase
of about $6 billion in the Gross
crease only six tenths of one
per¬
cent while the consuming but not National Product from the begin¬
producing age group (under 18 ning of this year to the year end
and over 64) will increase two would necessitate an increase of
about $2 billion in demand de¬
and seven tenths percent.
posits adjusted. This would re¬
Increased Production and Prices quire increasing reserves by less
than
$400 million which could be
What
does
all
this
mean
in
done without difficulty. The Fed¬
terms of industrial activity,
prices
and

bank

at

tion and America's

ment

play

look

not

only in terms of the do¬
business! situation but in

mestic

dential building

must

one

reserves

•

.

the magazine's arithmetical price

composite on finished steel remained at $128.98 a net ton. Its com¬
posite on steelmaking scrap dropped to $53 a gross ton, down
$2 from the preceding week. The adjustment is attributed to fear
of a steelworkers' strike and mill reluctance to pay high prices.
The

American

Iron

and

Steel

Institute

announced

that

the

operating rate of steel companies having 96.1% of the steelmak¬
ing

capacity

for

the

entire

industry

Will

be

at

the

average

of

95.7% of capacity for the week beginning May 14, 1956, equiva-

'

Volume 183

Number 5534

-;vj

The Commercial and
Financial Chronicle

..

.

(2399)
lent

to

2,355,090 tons of ingot and steel for
castintrs

with

as

compared

95.2% of capacity, and 2,342,000 tons
(revised) a week
The industry's ingot production
rate for the weeks
in

based

annual

on

For the

capacity

like week

of

128,363,090

tons

as

of

Jan.

ago.

1956 is

1,

1956.

month ago the rate

a

was
100.2% and pro¬
tons. A year ago the actual
weekly production
placed at 2,338,000 tons or
96.9%. The operating rate is not
comparable because capacity is
higher than capacity in 1955. The
percentage figures for 1955 are based on
annual capacity of 125,828,310 tons as of Jan. 1, 1955.

duction 2,466,000

featured by
in

..

International Metals

price after touching

Wheat prices were sharply lower at the
close, the principal
weakening influence being the improved moisture conditions over
a large part of the
Winter wheat belt.

was

-

marked activity in soybeans which dropped sharply
a record high of $3.42 a bushel.
11 *

Trading in

corn

Offering Completed
Gearhart

quite active and prices displayed inde¬

York

pendent strength most of the week. A
strengthening factor in the
yellow cereal was the belief that the new farm bill would be con¬

stock

structive in

far

so

was

as

Output Gains Following Three Weeks of

grains were concerned. Oats prices
generally steady with offerings about equal to the demand.
Sales of grain and soybean futures on the
Chicago Board of Trade

last week

Successive Declines
The

light and
c

1956,

i..

ended

power

coarse

distributed

energy

industry for the

by

the

electric

ended

week

Saturday, May 12,
estimated at 10.837,000,000
kwh,, a gain above the week
May 5, 1956, according to the Edison Electric
Institute.
week's

output advanced

22,000,000

kwh.

above

that of
the previous week: it
increased 1,164,000,000 kwh. or 12.0%
above
the comparable 1955
week and 2,457,000,000 kwh. over
the like
week in 1954.

•

:

Loadings Turned Lower the

Loadings of

i

decreased 7,840

{

ciation

revenue
cars

or

Past

Week

freight for the week ended May 5,
1956,
1% below the
preceding week the Asso-

of American Railroads

reports.
for the week ended May 5,
1956, totaled 770.558
cars, an increase of 33,654 cars, or 4.6% above the
corresponding 5
1955 week, and an increase of
122,604 cars, or 18.9% above

Loadings

,

the

corresponding week in 1954.

-

r,

U. S. Automotive Output Cut Further in Past Week
by
Reduction in Work-Week and Further
Layoffs
Automotive outnut for the

latest

week

ended

according

May 11, 1956,

to "Ward's Automotive
Reports," suffered
curtailment with only half the nation's
auto builders
for 5-day operations and further
layoffs.
Last week the

industry assembled

compared with 112,730
week's
•

units, a decrease of
put, states "Ward's."

:

Last

week's

48

and

cars

units

scheduled

estimated

an

112.5Q0 cars,
in the previous week. The past

(revised)

production total of

further

a

trucks

below

the

amounted

preceding

to

135,350

week's

out-

output declined below that of the previous
week by 140
cars, while truck output showed strength the
past
week by exceeding the
preceding week's output by 92 vehicles.

-

car

In the corresponding week last

t.

assembled.

were

177,287

year

cars and

-

Canadian

outout

last week was placed at
10,900 cars and
previous week Dominion plants built
10,609
and 2 670
trucks, and for the comparable 1955 week, 10,669
and 2,809 trucks.

2.661

.

trucks. .In

cars

cars

the

Business Failures Fall Slightlv the Past Week
..

&

according to Dun
However, they exceeded the 233 occurring a
and the 248 in 1954. Continuing below the
pre-war level,

year ago

failures

;

down 20%

were

from the 321 of the comparable week of

'

1939.

state

located

mills reduced prices as much as 25 cents
per
effort to move burdensome supplies.

Street, Dover, Del.

hundredweight in an
Export flour trade remained

broad demand for green coffee at the week-end
as
prices advanced following a further
tightening of its export
regulations by the Brazilian Government.

Failures
219 from
a

year

there
-

237

ago.

was

of

a

in

excess

year

involving liabilities of $5,000 or more decreased to
last week, but remained above the 191 of
this size
Among small failures, with liabilities under $5,000,

dip to 39 from the 40 of the previous week and the 42
ago. Twenty-two of the failing concerns had liabilities
a

of $100,000, as against 35 in the

preceding week.

The retail toll dipped to 125 from 126 and
commercial service
to 19 from 23; sharper declines
brought wholesaling failures down
7 to 22 from 33 and construction to 32 from 40.
The

only increase

during

the

totalled
i

the

.

-

.

60

week
as

1955

level

Most

of

year

occurred

in

manufacturing

compared with 55

week

a

a?o.

where

Failures exceeded

manufacturing and construction, equalled last
in retailing, but fell slightly in wholesaling and service.
the week's

States where failures

decline

down

to

10

from

20.

occurred

down

were

lantic, down to 16 from 25

and

in

to 77 from

the

Middle

in the West North Central

States,
increases, including

Three regions reported
rose

to 82 from

70

and

the East

Central with 34 as against 26. No
change occurred in the
England total of 14, or the East South Central of 7. More
failed

concerns

than

last

in

year

seven

Only the South Atlantic and
reported less failures than in 1955.

.- areas.

of

West

the

nine

North

geographic

Central

States

Latest

eased

slightly last week to stand

tapered

off.. Despite

sented

a

drop of 5.6%

below the

of $6.04 last week, the
by Dun & Bradstreet, Inc.,
on
May 8. This repre¬
comparable year-ago level of

-

$6.39.

index

represents the sum total of the price per pound
foodstuffs and meats in general use and its chief func¬
tion is to show the general trend of food
prices at the wholesale
raw

level.

Wholesale

to

Moderate

Latest Week

receipts

level declined moderately last
week following the
faltering movement of the preceding period.
The daily wholesale
commodity price index, compiled by Dun &
Bradstreet, Inc., firished at 292.52 on May 8, as compared with
a

week

earlier

and

273.34

on

the

corresponding date last

year.

Grain markets
movements erratic.

prices

held

in

a narrow range and finished
Trading in the 14 spot markets

week *ao.

a

slightly
was

the

on

bids

opened

April 24 at the

price

average




on

the Chicago Board of Trade

and

Slightly in Past Week Due to
Rainy Weather

accessories, but volume in men's apparel, household furnishings
food was under that of the previous week.
an

increased call for automobile parts and supplies.

of the earlier occurrence of Mother's Day
the total dollar volume of retail trade in the period
ended on Wednesday of last week was 1 or 5% lower than a year
ago, according to estimates by Dun & Bradstreet, Inc. Regional
year,

estimates varied from the comparable 1955 levels by the
following
percentages: New England —6 to —2; East and Middle West —5
—1; South —2 to +2; Northwest —4 to 0; Southwest —3 to
+1 and Pacific Coast —7 to —3%.

noticeable

volume

increases

reported

were

in

hats, lingerie and handbags last week, purchases were
below those of the corresponding week a year ago. While the buy¬
ing of skirts and sweaters rose appreciably, the call for dresses,
suits and sportswear was considerably reduced.
Furniture
of bedroom

There

stores

reported

moderate

Sales

in

the

buying

suites, outdoor furniture and dining room sets.
chairs expanded slightly.

was

of the

The

was

in

garden

properties,
a

made

by
the
previous
withoitt discovery of a

commercial

plored

in

deposit,

search

are

for

to be

ex¬

commercial

and, if such exploration
successful, the properties are
be developed.
The "El Pro¬

mercury;
is
to

greso"

properties

are

approxi¬

mately 7% miles from the nearest
producing mercury mines of any
importance in the Huitzuco Mer¬
cury
District
the $400,000 of

offered

is

Only

the

on

to

work

"El

which

whether

further

of

being
necessary for

exploratory
work
Progeso" properties
with

$28,000

securities

deemed

determine

will

proceed
abandon

or

the properties.

Giving effect to the new financ¬
ing, the company will have 843,000
shares of stock
outstanding out
authorized issue of 3,000,000

an

shares.

Halsey, Stuart & Co. Inc. and
associates

are
offering today (May
$6,225,000 of Erie RR. 3%%
serial equipment trust
certificates,
maturing annually June 15, 1957
to 1971, inclusive.

17)

was a

The

Buying

activity

quickened

in, the

that of the

similar

week

last

reported

housewares,

while

major

was

wholesale

centers

moderately higher than

women's'

in

bookings in

apparel,

furniture

Fall merchandise

some

ex¬

stores

sales

on

a

country-wide

basis

as

taken

Board's index of the week ended May
5, 1956, decreased 7%* below those of the like period of last year.
In the preceding week, April 28, 1956, a decrease of 1% (revised)

sales

volume

in

New

York

the

sharply above the level of the like period
placed

buying

the

for

increase

Mother's

at

15%,

Day

due

which

a

to the

authorization

the
to

week

year

ago.

the index recorded

to
ac¬

subject

are

of the

Inter¬

issue is to be secured by
following equipment estimated
$7,987,000: 550 box cars,

50-ton capacity; and 6 diesel road

switching locomotives.
Associates
Dick &

large

in

came

increased
Trade ob¬

measure

week

a

later

to
this

City for the weekly period ended May 5,

preceding week, April 28, 1956,
recorded.

3.60%,

cost

an

increase of 2%

the four weeks ending May 5,
For
a

the

period

rise of 1%

Jan.

1,

1956

1956,
to

year.

May

gain of
5,

offering

are:

& Co.; Baxter, Williams &

Co.; Freeman &

Co.; Gregory &

Sons;

&

Ira

Pollock

chinson
&

Haupt

&

Co.,

&

&

Co.;

Co.;

Co.;

Inc.;

Wm.

E.

Shearson,

McMaster

Mullaney,

Hut¬

Wells

Co.; and F. S. Yantis & Co., Inc.

1956

above that of the corresponding

With State Bond & Mtg.
(Special to The Financial Chronicle)

NEW

ULM,

Thompson

and

Minn.—Robert W.
Gordon

R.

Rat-

cliffe have become affiliated with

State
•Comparisons are affected
this year than last.

the

In

(revised)
a

in

Merle-Smith; R. W. Press-

Hammill

store sales in New York

For

to

state Commerce Commission.

prich
past

year.

recorded.

priced

are

3.50%

cording to maturity. Issuance and

For the four weeks ended May 5, 1956, no change

reported. For the period Jan. 1, 1956 to May 5, 1956 a gain
of 2% was registered above that of 1955.
Retail

from

The

from the Federal Reserve

reported.

certificates

yield

sale of the certificates

year.

gains

Equipment

Trust Ctfs. Offered

lighting

supplies, hardware and building materials

last week, and the total dollar volume

was

Progreso"

Erie RR.

erably.

later

"El

con¬

slight decline in the buying of fresh meat, poultry
and dairy products the past week.
However, the call for fresh
produce, canned citrus juices and frozen foods expanded consid¬

4%

capital stock of its Mexican,

Sales

slight rise in the call for refrigerators, air

a

close to those of the previous week.

There

was

before

or

subsidiary.

of

decreases

ditioners and television sets, while volume in lamps and
fixtures declined moderately.

the

promissory
$20,000,

of

on

Aug. 24, 1956, whereby the com¬
pany acquired 240 bearer shares

of upholstered

strong

its

amount

payable

•

women's

servers

the

is

owner,

and

was

of

subsidiary company,
Mexicanos, S. A.,

discharge

in

holes,

below that of the similar period last year, the 1955 Mother's Day
week. Sales promotions stimulated purchases of women's fashion

were

and devel¬

properties

exploratory test

Cold and rainy weather somewhat discouraged consumer
buy¬
ing the past week, and the total dollar volume was moderately

Although

mining

which there have been
only
few shallow

Cold and

last

of

on

Trade Volume Cut

was

to

which

of 27.90

pound.

per

of

Mexican

note

points in the mid-April parity price for cotton.

cents

discovery
deposits.

Recursos Mineras

Helping to support the market were mill priee-fixing against
cloth bookings for the third and fourth quarters and a rise of 25

very unsettled the past week, with price

Trading

its

active with sales totalling 38,200 bales, against
40,700 the previous
week and 48,200 in the
corresponding week a year ago.

sold

mercury

the exploration

opment

less

Contrary to expectations, only a rather small volume of cotton
was sold
by the CCC on the first opening of bids under the cotton
export program.
A total of 10,500 bales of upland cotton were

the

upon

The

nance

Cotton
higher th°n

period of 1955.
were

pendent

commercial

hog prices
activity in

and

1956, decreased 5%* below those of the like period last

The general commodity price

294.03

market

According to the Federal Reserve Board's index, department

Commodity Price Index Holds
Downtrend in

«

smaller

was

Higher in wholesale cost the past week were barley,
bellies,
sugar, coffee, eggs, hogs and lambs. Lower in price were
flour,
wheat, corn, rye, oats, hams, lard, cottonseed oil and cocoa.
The

of

wholesale pork declined.

Department

at $6.03

;•

mercury-bearing proper¬
Such contemplated activities

ties.

panded noticeably.

Week

After leveling off at the year's peak
wholesale food price index, compiled

such

State

company proposes to use
the proceeds derived from the
sale
of the new common stock to
fi¬

and

Slightly in

in

mand

Wholesalers

Wholesale Food Price Index Eased

Delaware

South

ment of

showed little

and

range

229

developing, furnacing and mar¬
keting metallic mercury are de¬

Atlantic

97, in the South At-

North
New

of 31

narrow

at

of

office

change for the week. Warehouse stocks of cocoa showed a further
slight drop to 335,518 bags, from 337,041 a week ago and compared
with 180,316 bags at this time last
year.
Lard was active and
strong early in the week but trended lower in late dealings as de¬

failures

in

the Pacific States where the toll

;

a

State

May 26, 1955, for the purpose of
engaging principally in the acqui¬
sition, exploration and develop¬

a

Cocoa prices fluctuated in

a

The company was
organized on

quiet.
was

Corp. is

duly in-*
corporated and existing under the

some

to

-

Metals

corporation,

the

Probably because

Bradstreet, Inc.

•

was

principal

There

Commercial and industrial failures declined to 258 in
the week
ended May 10 from 277 in the preceding week,

per

It

of

30,981 trucks

ago.

$1

its

There

of Interna¬
at

laws

as

New

speculation.

with

.

Last week the agency reported there were
22.760 trucks made
in the United States. This
compared with 22,668 in the previous
week and 30,981 a year

Delaware

,

moved lower the past week as demand slackened

a

a

Mill price concessions resulted in a
fairly good volume of
business in hard Winter wheat
bakery flours early in the week.
Some business also
developed in

7

Car

v

as

International

per

Spring wheat clears

Inc.,

quickly oversubscribed.

the largest in

were

bushels

Otis,

(par 10 cents)
Metals
Corp.

tional
share

a long time, averaging about 87,700day. This compared with 69,500,000 bushels the
previous week and 45,100,000 a year ago.

000

electric

was

This

...

of

amount

&

City, on May 15 publicly
offered 400,000 shares of common

were

Electric

51

by

ihe

fact

that

Mother's

Day

was

one

Bond

&

Mortgage

week

North Minnesota Street.

Co.,

28

The Commercial and Financial Chronicle
52

^

.

,

Grand Junction, Colo.
Feb. 23 (letter of notification) 3,000,000 shares of com¬
mon
stock (par one cent).
Price—10 cents per share.
Proceeds—For mining expenses.
Office—319 Uranium
Center, Grand Junction, Colo. Underwriter—Ralph M.
Davis & Co., Grand Junction, Colo.
Il'';
Abundant Uranium, Inc.,

Express Co.

(par $1) to

stockholders of
record on or about May 23, 1956 on the basis of one new
share for each five shares held; rights to expire on or
about June 6, 1956.
Price—To be supplied by amend¬
ment. Proceeds—For investments and general corporate
purposes.
Underwriters — Hallgarten & Co. and R. W.
Pressprich & Co., both of New York.
offered

be

for subscription by common

^

Alexandria Steel Fabricators. Inc.

-April 13 (letter of notification) $250,000 of 7%% deben¬
tures due 1966. Price—At par. Proceeds—For expansion,

Office—Alexandria, Va.

etc.

Underwriter—Seaboard Se¬

D. C.

curities Corp., Washington,

Realty Co., Inc., Alton Bay, N. H.
May 8 (letter of notification) 1,000 shares of common
stock (no par).
Price—$10 per share. Proceeds—For
working capital, etc. Underwriter—None.
if Alton Bay

general corporate purposes.

Memphis, Tenn.

;

.

American Insurors'

'

Underwriter

by amendment.

—

To be

stock (par $1).
Price
$2.50 per share. Proceeds — To expand service
business.
Office
Birmingham, Ala.
Underwriter —
Odess, Martin & Herzberg, Inc., Birmingham, Ala. .
..
—

—

International

American

(5/23)

Corp.

May 2 filed 375,100 shares of common stock (par $1) to
be offered for subscription by stockholders of record
May 23 at the rate of one new share for each five shares
held (with an oversubscription privilege); rights to ex-

pire

on or about June 8.
amendment. Proceeds—For

Price

To be supplied by

—

investments

and

other

cor¬

porate purooses. Underwriter — None.— Adams Express
Co. owns 69.36% of the outstanding shares.
•

American

(5/18)

16 filed 330,000 shares of class A common stock
cents) and 165,000 shares of class B common

April

10

(par
stock
A

Shopping Centers, Inc.

(par 10 cents) to be offered in units of one class

share and one-half class B

share.

Price—To be sup¬

To discharge certain
obligations and for construction of new centers and
working capital. Office—Minneapolis, Minn. Underwriter

plied by amendment.

—Carl M.

Proceeds

'•V?X;

Loeb, Rhoades & Co.yNew York.

scription by common stockholders on the basis of two
preferred shares for each 11 common shares held as of
record

May 1, 1956 (with

an

oversubscription privilege);

rights

to expire on May 21.
Price — $40 per share.
Proceeds—To enable company to write a larger volume
of insurance premiums. Underwriters—Harold E. Wood
&

Co., St. Paul, Minn.,
Minneapolis, Minn.
Arizona

Public

and

Finance

J.
Co.,

M. Dain

&

Phoenix,

Co.,

Inc.,

Ariz.

Underwriter—A. T. Geyer & Hunt, New
/ \ X
X v;X, ^X. /',:U;.
Columbia General Investment Corp.;-- ,1/
:
'•••?>;
March 29 filed 100,000 shares of common stock (par $1)

to

Corp.
9,890,095 shares of common stock (par $1)
pursuant to an agreement of merger with
corporation of Airfleets, Inc., Albuquerque Asso¬

be issued

this

to be offered for

RKO Pictures Corp., San Diego Corp.
and Wasatch Corp. on the following basis: Four shares
for one of Atlas common; 2.4 shares for one share of
Airfleets common; one share for each share of Albu¬
querque common; four shares for each 5.25 shares of
RKO common; 2.4 shares for each share of San Diego
common; 13 shares for each share of Wasatch cumulative
preferred; and 1.3 shares for each share of Wasatch
common.
The registration statement also covers 1,250,000 shares of 5% cumulative preferred stock (par $20)
which will become issuable upon and to the extent that
shares of common stock are convertible into shares of
Oil

ciated

Co.,

preferred stock. Stockholders will vote on merger on
May 24. Statement effective April 20.
/
Atlas

Investment Co.,

Las Vegas,

Jan. 9 filed 20,800

Co. and Jack Hemingway Invest¬

Co., of Las Vegas, Nev.

if Atlas Powder Co., Wilmington, Del. v
May 7 (letter of notification) 4,100 shares of common
stock (par $20) to be offered to employees. Price—$62.69 .
per share.
Proceeds—To be added to the cash funds of
the issuer/ Office—New Murphy Rd. and Concord Pike,;
Wilmington 99, Del.

Underwriter—None.

President and

Treasurer.

if Beta Frozen Food Storage, Inc.
May 14 filed 15,000 shares of preferred stock (par $50)
and $100,000 convertible debenture bonds.
Price — At
par.
Proceeds—For capital expenditures and working
capital.
Office — Baltimore, Md. Underwriter — None.
William

H.

Burton

is President of

mineral

properties. Office—1424 Pearl Street, Boulder,
Underwriter—Lamey & Co., Boulder, Colo.

mayer

Colo. Underwriter—Birken-

& Co., Denver, Colo.

if California Electric Power Co. (6/12)
May 14 filed 300,000 shares of common stock (par $1).
reduce

bank

loans.

Underwriter—To

be

determined

by competitive bidding. Probable bidders:
Blyth & Co., Inc. and The First Boston Corp. (jointly);
Merrill

Lynch, Pierce, Fenner & Beane; Carl M. Loeb,
& Co. (jointly); Kid¬

Rhoades & Co. and Bear, Stearns

torneys, Room
13, Calif.

900,

South Spring

Street, Los Angeles

Cherokee Uranium

of 6%

April 15, 1966. Price
—100% and accrued interest. Proceeds—For mining ex¬
penses.
Office—608-610 Equitable Bldg., Denver, Colo.
Underwriter—Columbia Securities Co., same city.
Chemical Corp.,

Yazoo, Miss.
class A common stock.
Price—At par ($25 per share). Proceeds—Together with
bank loans, to be used to construct and operate a fer¬

and $192,500 a?

San Francisco




to

all

offices

Cleveland

for

a

(letter of notification) 5,912 shares of 6% cu¬
preferred stock to be offered to shareholders

period of 30 days and then to

others. Price—At par

($50 per share). Proceeds—For working capital. Office
—Equitable Bldg., 421 S. W. 6th Ave., Portland s, Ore.
Underwriter—None.
')I;,A'»IX. I' I
I' >, X /1./
„

Okla. ,1
of common stock.: Price—To
be supplied by amendment! Proceeds—For working cap¬
ital, etc. Underwriterr—To foe named. ;! ; - I '!•
, I
r
Commonwealth Life Insurance Co., Tulsa,

March 28 filed 70,000 shares

Commonwealth Natural Gas Corp.

•

? /

(5/28-29)

May 4 filed $1,173,000 of convertible .debentures due 1971
to be offered for. subscription by- common stockholders
at the rate of $100 of debentures for each 30 shares of

-

Price—101%% of principal amount. Proceeds
sale of debentures, together with $2,100,000 from

—From

private sale of 37/8% first mortgage pipeline bonds, series
C, due June 1, 1976, for retirement of $600,000 of 3y2%
notes due July 31, for expansion program and other cor¬

Underwriter.— Scott & Stringfellow,

porate purposes.
Richmond, Va.

if Connecticut Power Co. (6/5)
'/
May 16 filed 71,132 shares of common stock (par $25)
to be offered for subscription by common stockholders of
record June 4 on the basis of one new share for each 10
shares held. Price—To be supplied by amendment. Pro¬
ceeds—To reduce bank loans/ Underwriter—None.

^Connecticut Power Co. (6/5)
May 16 filed 104,000 shares of cumulative preferred stock
(par $50). Price—To be supplied by amendment. Pro¬
ceeds—To repay bank loans. Underwriters—Putnam &
Co., Hartford, Conn., and Chas. W. Scranton & Co., New
Haven, Conn.

Consolidated Edison Co. of N. Y.,

(5/22)

Inc.

Underwriter—To be determined by

gram.

competitive

bidders: The First Boston

Probable

Corp. and

Stuart & Co. Inc. (jointly); Morgan Stanley &
Co. Bids—To be received up to 11 a.m. (EDT) on May
22 at 4
•

Irving Place, New York, N. Y.

Container Corp. of America

shares of common stock (par

March 9 filed 115,276

$10)

being offered in exchange for common stock of The
Mengel Co. at the rate of one Container share for each
two
Mengel shares.
The offer has become effective,
Container's holdings of Mengel stock having been in¬
creased to nearly
The

90% of the Mengel stock outstanding.
on May 21.
Statement effective

expire

offer will

March 30.

•

N. J.

shares of capital stock (par $1).
value plus a premium of 5% of the

March 30 filed 300,000
Price—At net asset

offering price.- Proceeds—For investment.
—Continental American Management Co.,

Underwriter
Inc., Jersey

City, N. J.
March

28

filed 40,000 shares

additional working capital. Underwriters

of class A common stock

(par $5) and 80,000 shares of class B common stock (par
50 cents). Price—Of class A stock, $12.50 per share, and
of class B stock, 50 cents per share.
Proceeds—To in¬

capital and surplus.
derwriter—None.,

Crampton

Office—Alexandria, La. Un¬
1

Manufacturing Co.

April 24 filed 137,814 shares of 6% cumulative converti¬
ble preferred stock (par $10), of which 125,009 shares
are
to be offered for subscription by holders of 5%

preferred stock and common stock on
new share for each three shares of

the
5%

convertible

& Co., San Francisco,
Miller, Pasadena, Calif.

preferred stock held and one new share for each eight
shares of common
stock held.
The remaining 12,805
shares of 6% preferred stock are to be offered in ex¬

•

Private IVires

mulative

—Wilson, Johnson & Higgins, San Francisco, Calif.;
Lester, Ryons & Co., Los Angeles, Calif.; Davis, Skaggs

Colohoma

Nov.

Philadelphia

Commonwealth, Inc., Portland, Ore.

crease

Engineering Co.,

—

Chicago

Street,/

Continental Equity Securities Corp.
Coastal

March 22 filed 399,986 shares of

Inc.
April 27 filed 40,000 shares of 6% cumulative convertible
preferred stock. Price—At par ($12.50 per share). Pro¬
ceeds
$250,000 to retire short term bank borrowings;

Pittsburgh

(CDT) on June 5 at 72 West Adams
111;
X"'.'"
IVVvva' Z '' ~ /':';X-Z;

a.m.

Jersey City,

Mining Corp.

convertible debentures due

Coleman

Boston

10:30

Chicago,

Continental American Fund, Inc.,

tilizer plant. Underwriter—None.

New York.

Co. Inc.;

Halsey,

April 5 (letter of notification) $l'80,000 principal amount

Underwriter—None.

Probable bidders:/Halsey, Stuart &

Glore, Forgan & Co. and Blyth & Co., Inc. (jointly); The
First Boston Corp. Bids—Expected to be received up. to

bidding.

—

Office—401 South 11th St., Fort Smith, Ark. Underwriter

Grocers, Inc., Seattle, Wash.
April 20 filed 5,703 shares of common stock; $2,000,000
of 25-year 5% registered convertible debenture notes;
and $1,500,000 of 5% coupon bearer bonds.
Price — Of
stock, $50 per share; and of notes and bonds, 100% of
principal amount. Proceeds—To reduce bank, mortgage
loan, or other indebtedness; and for working capital.

Underwriter—To be determined by competitive

gram.

bidding.

Denver Club Bldg., Denver,

der, Peabody & Co.; Lehman Brothers; White, Weld &
Co. Bids—Expected to be received up to 9:30 a.m. (PDT)
on
June 12 at the offices of O'Melveny & Myers, at¬

Associated

'

April 24 filed $30,000,000 of first and refunding mort¬
gage bonds, series L, due May 1, 1966.
Proceeds—To
renay s^ort-term bank loans and for construction pro¬

Mdesman of the

—None.

*

if Commonwealth Edison Co. (6/5 >
May 9 filed $40,000,000 of first mortgage bonds, series
R, due June i, 1986.
Proceeds X For construction pro¬

Birnaye Oil & Uranium Co., Denver, Colo.
April 6 (letter of notification) 1,000,000 shares of class
A common stock (par five cents). Price — 10 cents per
share. Proceeds
For mining expenses. Office — 762

Bept. 16 filed 78,006,081 shares of common stock to be
offered for subscription by holders of life insurance
policies issued by Public Life Insurance Co. Price—20
cents per share. Proceeds—For working capital. Under¬
writer—None, sales to be directly by the company or by
insurance firm.

Underwriter—None.

company.

Big Horn Mountain Gold & Uranium Co.
- *v v '
Feb. 23 (letter of notification) 9,300,000 shares of com¬
mon stock (par one cent).
Price—Three cents per share.
Proceeds—To be used for exploratory work on mining
Colo.

only.-Price

of $4.50 per share.

stock held.

it Automation Industries Corp., Washington, D. C.
May 11 filed 179,000 shares of common stock (par $1).
Price—$5.25 per share. Proceeds—For working capital
and other corporate purposes.
Underwriter — None.
Harry Kahn, Jr., of Washington, D. C., is

subscription by stockholders

-Proceeds—To make
additional investments, including
stock of * Columbia
General Life Insurance r Co. Office — Houston, Tex.
maximum

—A

March 23

Nev.

Proceeds—To

★ Arkansas Motor Freight Lines, Inc.
April 25 (letter of notification) 20,000 shares of common
'Stock (par $1) to be offered to officers and employees.
Price—$15 per share. Proceeds — For working capital.

York, N. Y.

York, N. Y.

—

Anchor Casualty Co., St. Paul, Minn.
March 27 filed 20,000 shares of $1.75 cumulative con¬
vertible preferred stock (par $10) being offered for sub¬

REVISED

N. Y.

York,

•

Atlas

ment

Development Co.

filed 400,000 shares of common

10

ITEMS

^

ISSUE

(letter of notification) 150,000 shares of com¬
mon stock (par 10 cents).
Price—$2 per share. Proceeds
—For mining expenses. • Office'— 50 Broad St., New

Close Mortgage & Loan

Feb.

•

and

named

PREVIOUS

April 27

Underwriter—None.

•

1956

ADDITIONS

SINCE

Colorado Resources, Inc., New

Tulsa, Okla.

shares of class A common stock (par
$1).
Price — $10 per share. Proceeds — Together with
other funds, to purchase 1,000,000 shares of common
stock (par $1) of American Frontier Life Insurance Co.

American Frontier Corp.,

-

Atlantic Oil Corp.,

April 30 filed 2,000,000 shares of common stock (par $1).
Price—$1.50 per share. Proceeds—For working capital

shares of class B common voting stock,
of which 12,000 shares are to be offered for public sale
at $50 per share and 8,800 shares are to be offered in
exchange for preferred stock. Proceeds—For payment of
bank loans, and for capital and surplus. Underwriters—
Rex Laub and Max Laub, of Tremcnton, Utah, and M. D.

Feb. 15 filed 175,000

.

•

Feb. 28 filed

(5/23)
May 2 filed 528,792 shares of common stock
Adams

.

Thursday, May 17,

.

★ INDICATES

,.

Securities Now in

.

.

.

(2400)

9

Uranium,

Calif.; and Jones,

Cosgrove

&

Inc.

filed 2,500,000

shares of common stock (par one
cent). Price—40 cents per share. Proceeds—For explora¬
tion and development expenses and for general corporate
Office—Montrose, Colo. Underwriters—Gen¬
eral Investing Corp., New York; Shaiman & Co., Denver,
Colo., and Honnold & Co., Oklahoma City, Okla. State¬
ment may be withdrawn.

basis

of

one

5% preferred stock on a share-for-share
per share.
Proceeds — For working
Underwriter—Baker, Simonds & Co., Detroit,

change for the
Price

basis.

capital.

—

$10

Mich.

purposes.

......

Crater Lake Mining &

stock.

Milling Co., Inc.

notification) 575,000 shares of common
Price—50 cents per share. Proceeds—For mining

March 8 (letter of

Number 5534. The Commercial and Financial Chronicle

Volume 183

expenses. ' Office — ;1902 East San Rafael, Colorado
.'Spring?, Colo. Urtderwriter ;-^ Skyline Securities, Inc.,
•Denver, Colo.";1

Crestmark

Cruisers, Inc.

\

April 25 (letter of notification) 300,000 shares of com¬
mon stock (par 10 cents).
Price—$1 per share. Proceeds
«—For machinery and equipment.
Business—Construc¬
of

tion

ports cruisers.

—
472 Fire Island Ave.,
Underwriter—Lepow Securities

Office

I., N. Y.
Corp., New York. :v

Babylon,

•

L.

Cullen Minerals

Corp. (Texas)

(5/21)

bank loans, and for expansion and working
—
Lepow Securities Corp., New

repay

capital.

Ave., Lakewood 7, Ohio.* Underwriter—

Dalmid Oil &

Uranium, Inc., Grand Junction, Colo.
April 16 (letter of notification) 2,700,000 shares of com¬
stock

mon

(par

Proceeds—For

cent);

one

mining

Price—10

Grand Junction, Colo.
Securities Co., Denver, Colo.
•

cents per

share.

Office—1730 North 7th

expenses.

Street,

Underwriter—Columbia

Dalton

Finance, Inc. (5/18)
'
(letter of notification) 300,000 shares of com¬
mon class A stock
(par 50 cents). Price—$1 per share.
Proceeds—To expand Mt. Ranier subsidiary balance and

Underwriter

York.

it D. & C. Airlines, Ltd., Lakewood, Ohio
May 3 (letter of notification) 2,400 shares of capital
stock (par $1). Price — $15 per share. Proceeds — For
working capital and other corporate purposes. Office—

the

remainder
Center

4304

Whitney

to

start

office

an

in

Virginia.

Office—

Street, Chevy Chase, Md.
Underwriter
Co., Inc., Washington, D. C.

&

Warrants
June 8.

v:

•.

April 26

March 30 (letter of notification) 300,000 shares of com¬
mon stock (par 10 cents). Price—$1 per share.
Proceeds
—To

1436 Lakewood

None..:-''

Price

ployees.
June

4.

mailed

To

to

stockholders

shares

To

—

Proceeds

derwriter

fixed

be
For

—

May

17

June

(Thursday)

vy

(Bids

10

Bonds

CDT)

a.m.

May 18
American

(Eisele

$15,000,000

Loeb, Rhoades & Co.)

&

King,

/ Dalton Finance, Inc.—

Class A Common

(Whitney & Co.,

.>

Inc.)

(Offering

Tiarco

to

Johnson,

Corp.
to

stockholders—to
Plohn & Co.)

May 21

underwritten

be

(Lepow

&

11:30

—

Sweeny

Oil

(Putnam

(EDT)

a.m.

at

600 Market Street, Wilmington

Dennis Run

Corp., Oil City, Pa.

(letter of notification) 46,000 shares of common
stock (par $1).
Price—$6.50 per share. Proceeds—To
pay bank loans and
debts; and for working capital,
Office—40 National Transit Bldg., Oil
City, Pa.
writer—Grover O'Neill & Co., New York.
Dibbs

Aluminum

Products,

debentures

be

(Offering

Braniff

11

EDT)

a.m.

EDT)

Adams
,i,

(Wednesday)

American International Corp
to

375,100

Eastern Stainless Steel Corp
Hornblower &

underwritten

(Kidder,

Power

&

Peabody

& Co.)

Southern

& Light

(Bids

10:15

Lewisohn

Copper

Lockheed

Aircraft

First

$7,500,000

(Blyth & Co.,

Mark

F.

Southern California
(Bids 8:30

$30,000,000

Dominick)

(Paine,

Webber,

Jackson

&

Common

1,156,250

Curtis)

Applegate &

The

Ohio

Co.;

100,000 shares

Humphrey,

Class A

Milwaukee

9:30

(Bids

Republic

EDT)

noon

(Vickers

States

New
Blair

&

Harrison

First

Rhoades

Mountain

&

Tel.

(Offering

Corp.

of

'

of

by William
and Carl M. Loeb,
shares

(Monday)

(Bids

be

to

(Tuesday)

Co.

$7,500,000

—Common
Co.)

&

July 11

$250,000

(Monday)

Tel.

&

(Bids to

Debentures
by

Scott

to stockholders—no

Common

underwriting)

328,400 shares

Office—Charlotte,

July 25
Natural

Common

^

May 7
ing

(Bids

to

be

Co

invited)

September 11

(no par). Price—$5 per share. Proceeds—For min¬
Office—219 E. Fremont Ave., Las Vegas,

expenses.

Lnderwriter—None.

Durango Minerals & Oil Co.
April 23 (letter of notification) 3,000,000 shares of com¬
mon stock.
Trice—At par (five cents per share). Pro¬
ceeds—For mining expenses. Office—32
Exchange Place,
Salt Lake City, Utah.
Underwriter—Filosa Securities
Co., Grand Junction, Colo.
Eastern Stainless Steel Corp.
(5/23)
May 1 filed $5,277,500 of 15-year convertible subordinate
to

stockholders
debentures

be

of

for

offered

record

each

rights to expire

for

subscription

May 22

11

shares

the

of

common

June 6.

Price—To

Proceeds—For

expansion

on

by

on

basis

common

of

$100 of

stock

held;
supplied by
program.
Un¬

be

derwriter—Hornblower & Weeks, New York.
Eureka Corp., Ltd., New York
April 30 filed 2,276,924 shares of common stock (par 25
cents-Canadian), of which 1,991,210 shares are to be
offered for subscription by stockholders of record
May
18, 1956 at the rate of one new share for each five

shares held.
sued to the

To

The

remaining 285,714 shares

underwriters

are

to be is¬

compensation in connection

as

the

offering. Price—$1.75 per share. Proceeds—
explore, develop and exploit the TL Shaft area. Un¬

Corp., Ltd. and Rickey Petroleums
Mines, Ltd., both of Toronto, Canada.

Hellenic American TV Hour, Inc.
April 18 (letter of notification) 100,000 shares of com¬
mon stock (par
$1). Price—$2 per share. Proceeds—For
working capital and will be used to pay operating ex¬
penses of the present

weekly telecast over Station WATV
expansion of such program. Office—80 Wall St.,

New York

First
Debentures

City.

Lewis

For

(Tuesday)

—

20th

Century Pioneer

Corp.
notification) 60,000 shares of 7%

March 1 (letter of
ferred stock.

$30,000,000

Underwriter

Securities Co., Inc.

(Wednesday)
Gas

,

Co., Iqc„ l*as Vegas, Nev.
(letter of notification) 40,000 shares of common

and for

invited) $20,000,000

(Offering to stockholders—bids to be invited) about 300,000 shs.

Consolidated

—

Bonds

be

Pacific Power & Light Co

Debentures

Co

America

(Wednesday)

Florida Power Corp

oversubscription privilege);

First

Consolidated.—Debens.

invited)

an

derwriters—Alator

$18,000,000

EDT)

(with

N. C,r Underwriter—None.

with
Preferred

noon

Elizabethtown Water

(Friday)

(Bids noon EDT) $25,000,000

Petroleum

Corp.

100,000

Co.)

July 10

stockholders—to be underwritten
& Stringfellow)
$1,173,000

States

,

>

underwritten

be

Boston

(no par>
being offered for subscription by common stockholders
May 3, 1956 at the rate of one new share for

&

$9,650,000

Commonwealth Natural Gas Corp
to

shares

Common
The

Common

May 28
(Offering

Morgan

Common
300,000

Power Co.

amendment.

Boston Edison Co

(D. L.) Corp..
(Garrett

by

(Wednesday)

stockholders—to

to
Co.;

Duke

March 30 filed 367,478 shares of common stock

debentures

underwritten

be

Life Insurance Co.

(Bids

May 25

Bonds

York

Co.;

$6,600,000

Brothers)

&

"

$2,040,000

Corp

Cement

shares

$10,000,000

PDT)

a.m.

Equip. Trust Ctfs.

—

202,800

(Tuesday)

June 25

Reading Co.

/

!';••#*

(Monday)

12

Price—$5.10 per unit. Proceeds—For working
capital, etc. Office — 5400 Wilshire Boulevard, Los An¬
geles 36, Calif. Underwriter—Talmage & Co., New York.

Nev.

by Kidder,

shares

Common

June 20

(Offering

Inc.)

Co.)

invited)

stockholders—to

to

(Bids

.

The

Inc.;

& Co.,

underwritten

California Electric Power Co

United

(Thursday)

and Stroud

&

11

June

shares

Reading & Bates Offshore Drilling Co
(Hulme,

(Offering

Common

Corp

(Lazard Freres & Co.)

Ctfs.

(Thursday)

Barney

(par $5) and 58,700 shares of common stock (par
cents) to be offered in units of one share of each class

of stock.

stock

Chain Belt Co

PDT) $40,000,000

a.m.

May 24

Smith,

Bonds

White Eagle International Oil, Inc

Trust

Stanley & Co. and Robert W. Baird & Co., Inc.) 76,543 shs.

Co

Gas

Co.)

7

June

shares

101,420

281,435 shares

Indianapolis Power & Light Co

Common

—

Wyandotte Chemicals

Co.;

Debentures

(Clayton & Co.)
&

be

251,389

&

Columbia

+ Dunlookin Mining

,—Common

(Bids to be

Corp

Read

$9,660,000

stockholders—to

—

rights to expire on May 21, 1956. Price—$25 per share.
Proceeds—For construction program.

stockholders—to be underwritten by Drexel
Merrill Lynch, Pierce, Fermer & Beane;

and

Common

Inc. and Hornblower & Weeks)

(Dominick

to

shares

100,000

Co.)

Peabody

com¬

10 cents per share.
Office—155 North Col¬
—

each 25 shares held

Pennsylvania Banking & Trust Co...Common

Common

Breen)

to

Price

and William

.Equip.
EDT)

noon

cent).

one

of record

.Common

Lemon &

(par

..Debentures

Utilities, Inc

249,558 shares

Corp

(George

shares

underwritten by Dillon,

Co..

June

Bonds

CDT)

Johnston,

Pacific

(Offering

Co

a.m.

and

(Bias

United

(Offering

Iowa Power

stockholders—-to

Inc.

shares

228,028

CDT)

a.m.

to

Co.

Common

:

Light Co.—

(Bids 9.30

be

Weeks) $5,277,500

Fruehauf Trailer Co

Iowa

shares

by

232,520 shares

EDT)

Corp

Co...

&

by

shares

70,000

Co.)

(^Offering

Debentures

stockholders—to be

to

Finance

&

stock

it Dubl-Chek Corp., Los Angeles, Calif. (6/5)
May 11 (letter of notification) 58,700 shares of preferred

Common
a.m.

Potomac Electric. Pojver

.Common

stockholders—no underwriting)

underwritten

Common

Barney

»

10

Common

11:30

Colo.

'stock

Lee Higginson Corp.; White, Weld & Co.;
Blair & Co.)
$50,000,000

Common

shares

71,132

$299,370

be

Corp., Fort Collins,

lege Ave., Fort Collins, Colo. Underwriter
Securities Co., Denver 2, Colo. '

Common

1,105,545

Co.)

500,000

$5,200,000

Inc
&

Oil

filed

Preferred

(Wednesday)

Eberstadt

(Smith,

(Offering to stockholders—to be underwritten by Hallgarten
& Co. and R. W. Pressprich & Co.) 528,792 shares

(Offering

Co.)

Hewitt-Robins, Inc.

$3,990,000

Express Co._2

(Offering

6

(Offering to stockholders—bids

Household

May 23

&

underwriting)

Co.)

23

Proceeds—For mining expenses.

Delaware Power &. Light Co

Equip. Trust Ctfs.
noon

&

Business—Manufacturer

Douglas

:

stockholders—to

to

F.

Bonds

$30,000,000

Delaware, Lackawanna & Western RR.
(Bids

Scranton

stock.
Price—$100 per
equipment and working

casement

mon

i—Preferred & Common

Airways,

(Offering

Consol. Edison Co. of New York, Inc
(Bids

W.

of

March 26 (letter of notification) 2,997,800 shares of

Bonds

CDT) $40,000,000

Co

June

(Tuesday)

$4,000,000

Inc.)

Co.,

Co

Chas.

(Talmage

Common

&

shares

subordinated

180,000 shares of com¬
offered, in units of $50

Corp., Carrollton, Tex.
j
shares of common stock (par 10
cents). Price — $1 per share. Proceeds — For working
capital, to be devoted mainly to acquiring, exploring,
developing and operating oil and gas properties; and to
pay off $13,590.80 liabilities.
Underwriter — James C,
McKeever & Associates, Oklahoma City, Okla.

$10,000,000

Inc.)

Co.,

25

Proceeds—For additional

Doctors

Co

a.m.

stockholders—no

to

shares

Co._

May 22

and

B;air

Dubl-Chek Corp

by

underwritten

225,810

&

and

(6/4-7)

convertible

Feb.

(Tuesday)

Edison

Power

Inc.

Under¬

Bonds

Preferred

and

5

Power
Co.

&

Connecticut

!

Common
Brothers)

inc.

June

(Whitney-Phoenix Co., Inc.) $300,000

,

Co.,

&

Connecticut

$300,000

Blair

Un¬

—

—.Debentures

and

program.

be determined

Bonds

$10,000,000

Co

inc.

em¬

about

o£ aluminum awning
windows, jalousies, and similar products.
Office
Tampa, Fla. Underwriter — Eisele & King,
Libaire, Stout & Co., New York.

$13,000,000

EDT)

a.m.

board

Nov. 28

and

$720,000

Southern Union Gas Co..

Common
Corp.)

stockholders—to

to

Lehman

.

Co.,

Commonwealth

(Monday)

Securities

11

(Bids 10:30

Monterey Oil Co
(Offering

by

Co.)

&

:

EDT)

noon

Union Gas

Sweeny

(Snow,

shares

375,000

Cullen Minerals Corp

Nemaha

Southern

Common

Charles

Stout

to

99, Del.

capital.

|

Debs. & Com.

Potomac Electric Power Co

(Snow,

...Common

Ga

to stockholders—to be underwritten by
Lane, Space &?> Co.) 159,561 shares

(Offering

1

$300,000

oi

First Railroad & Banking Co.

Libaire,

(Bids

Common

330,000 units

(Bids

>;

(Monday)

Milwaukee Gas Light Co.—

(Friday)

Shopping Centers, Inc

(Carl M.

4

about

or

Co.; Blyth & Co. Inc. and The First Boston
Corp. (jointly); White, Weld & Co. and Shields & Co.
(jointly); Lehman Brothers. Bids—To be received up

of

Dibbs Aluminum Products. Inc

the

construction

on

offered

Rhoades &

unit.

Northern Illinois Gas Co

be

by

debentures due June 1, 1966 and
mon stock
(par 10 cents) to be

CALENDAR

ISSUE

to

are

by competitive bidding.
Probable bidders: W. C. Langlev & Co. and Union Secu¬
rities Corp. (jointly); Kidder, Peabody & Co. and Merrill
Lynch, Pierce, Fenner & Beane (jointly); Carl M. Loeb,

—

Delaware Power & Light Co. (6/6)
May 9 filed 232,520 shares of common stock (par $13.50)
to be offered for subscription by common stockholders
of record June 6, 1956 on the basis of one new share
for each eight shares held; rights to expire on June 26.

will, be

Unsubscribed

April 27 filed $360,000 of-7%

NEW

53

(2401)

working

Price—At par

capital

and

($5

per

general

share).

pre¬

Proceeds—

corporate

purposes.

Business
General brokerage business. Office — 165
Broadway, New York, N. Y. Underwriter—Basic Indus¬
tries Corp., 31 State St., Boston, Mass.
—

May 29
noon

CDT)

t

(Bids to be

Equip. Trust Ctfs.

Chicago & North Western Ry
(Bids

Carolina Power & Light Co

(Tuesday)
$3,105,000

Denver & Rio Grande Western R.__Equip. Tr. Ctfs.
(Bids

noon

MST)

$2,820,000

invited)

September 25

Northwestern

(Bids to be

Common

Corp

White,
curities

to

weid

&

Corp.;

Co.;

and

Kidder,

Union




Peabody

Securities

&

Cof;

Corp.)

Dominion

3,011,973

Se¬

shares

(Bids to

•

Bonds

invited) $20,000,000

(Monday)

Tampa Electric Co

stockholders of Pacific northwest Pipeline^Corp.
employees of Production Corp.—to be underwritten by

(Offering
and

Production

$15,000,000

(Tuesday)

Virginia Electric & Power Co
October 1

May 31,(Thursday)

Bonds

Bonds
be

invited) $10,000,000

October 2

(Bids to be Invited)

common

stock held

May 18, 1956; rights to expire on June 1. The
remaining 65,439 shares are to be offered to a selected
Debentures

$30,000,000

class A share for each five shares of
of record

(Tuesday)

Columbia Gas System, Inc

First Railroad & Banking Co. of
Georgia (5/18)
April 19 filed 225,000 shares of class A common stock
(par $1), of which 159,561 shares are to be offered for
subscription by common stockholders on the basis of one

Continued

on

page

54

i

54

The Commercial and Financial Chronicle

..

.

(2402)

Continued from page

duce bank loans and for

53

i.,

of licensed general insurance agents in Georgia
Carolina.
Price—To be supplied by amend¬
ment. Proceeds—To purchase stock of First of Georgia
Fire & Casualty Co. (to be formed) and for general
and South
.

Space

corporate purposes. Underwriter—Johnson, Lane,
& Co., Inc., Savannah, Ga., for 159,561 shares.
Utilities Co.

Public

(letter of notification) 25,000 shares of common
(par $3). Price—To be supplied by amendment.
Proceeds
To pay off bank loan and for construction

May 3
stock

—

Office—338 Datura St., West Palm Beach, Fla.
—
Starkweather & Co. and Clement A.

program.

Underwriters

Inc., both of New York.

Evans & Co.,

Sun Life

Florida

Packaging International,

Inc.
stock (par lOf t,
of which 250,000 shares of for account of company an#
60,000 shares of five selling stockholders. Price—$3 per
ahare. Proceeds—For working capital; for exploitation
of "Totosave" system; and for marketing of "TropicRay" infra-red space heater. Office — Pittsburgh, Pa
Underwriter—Barrett Herrick & Co., Inc., New York.
Pitt

Fort

June 30 filed 300,000 shares of common

★ Fruehauf Trailer Co. (5/23)
May 9 filed 228,028 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds—To cer¬
tain selling stockholders. Underwriter—Kidder, Peabody
& Co.,

New York.

1,200,000 shares of com¬
Price — 25 cents per share
incident to mining operations.

(letter of notification)

Jan. 4
mon

Mining and Oil, Inc.

Hills

Gas

stock (par five cents).

Proceeds—For

expenses

Gordon

Wyo. Underwriter—Philip
& Co., Inc., New York 6, N. Y.
Office—Kemmerer,

^ General Tire & Rubber Co.

participations in profit-shar¬
ing plan for salaried employees of this company and
May 15 filed $3,600,000 of

companies, together with 61,016 shares
(par $2.50) which may be purchased

certain subsidiary
of

common

the

under

stock

also 50,875 shares of
exercise of common

plan;

deliverable

upon

issuable

warrants

the

to

holders

of

common

cumulative

stock,

purchase

stock

preferred

thereof on or
before June 1, 1956, upon the assumption that all holders
of outstanding cumulative preferred stock not converted
of

stock

company

upon

conversion

prior to that date elect the conversion
titling them to receive such warrants.
Uranium Corp.

General

Jan.

18

privilege

en¬

Business—George P. Hill
and Houston Hill are engaged in exploration for and
production of oil and gas as a joint venture. Office—
Fort Wort^h, Tex.
Underwriters — William D. McCabe
and E. S. Emerson, South Texas Bldg., San Antonio, Tex.
★ Hoerner Boxes, Inc., Keokuk, Iowa
May 4 (letter of notification) 12,847 shares of common
stock (par $2.50). Price—$23.35 per share. Proceeds—

Golden

Statement effective March 11.

Dawn

Uranium Corp.,

Mining Co., Winterhaven, Calif.

Calif.

I

120,000 shares of com¬
Price—$1.50 per share. Pro¬
ceeds—For exploration and development expenses. Un¬
derwriter
Fenner Corp. (formerly Fenner-Streitman
& Co.), New York.
—

Ideal-Aerosmith, Inc., Hawthorne, Calif.
Dec. 16 (letter of notification) 150,000 shares of capital
stock (par $1).
Price — $2 per share. Proceeds — For
equipment, machinery, inventory, etc. Office—12909 So.
Cerise Ave., Hawthorne, Calif. Underwriter—Samuel B.
Franklin & Co., Los Angeles, Calif.
it Incorporated Income Fund, Boston, Mass.
May 14 filed (by amendment) 1,500,000 shares of com¬
mon
stock (par $1). Price—At market. Proceeds—For
investment.

Indianapolis Power & Light Co. (6/7)
8 filed $10,000,000 of first mortgage bonds due
1986. Proceeds—To repay bank loans and for construc¬
tion program. Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Union Securities Corp.; Blyth & Co., Inc.; Leh¬
man Brothers, Goldman, Sachs & Co. and The First Bos¬
ton Corp. (jointly); W. C. Langley & Co., White, Weld
& Co. and Shields & Co. (jointly); Kuhn, Loeb & Co.;
Equitable Securities Corp.; Hemphill, Noyes & Co. and
Drexel & Co. (jointly). Bids—Expected June 7.
May

Corp., Wilmington,

Del.

April 3 (letter of notification) 150,000 shares of common
stock (par $1). Price — $2 per share. Proceeds — For
working capital.
Office—100 West Tenth St., Wilming¬

Minerals

Industrial

World Wide

—

Investors Corp.,

Development Corp.

Inc., Belleville, N. J.
convertible preferred
stock (cumulative if and to the extent earned). Price—
At par ($5 per share). Proceeds—For general corporate

Griggs Equipment, Inc., Dallas, Texas
April 12 filed 400,000 shares of common stock (par 500).
Price
$5.75 per share. Proceeds — For purchase of
Griggs Equipment Co. capital stock for $1,924,565, and
for working capital.
Business — Public seating equip¬

Jan.

—

Southwestern Securities

Guaranty Income Life Insurance Co.
Dec. 30

(letter of notification) 24,000 shares of capital
(par $5) to be offered first to stockholders; then
policyholders and the public. Price—$10 per share. Pro¬

stock

New York.

,

Insulated Circuits,

Nov. 10 filed 100,000 shares of 6%

Underwriter—Alexander Watt & Co., Inc., has
as

underwriter;

International
27

Basic

new one

to be named.

International

Plastic

Industries

Corp.

Oct. 12 (letter of notification) 150,000 shares of common
stock (par 10 cents).
Price—$2 per share. Proceeds—
For advances to Arliss Co., Inc. for purchase of equip¬

ment, etc.
N.

Y.

Office

—

369-375 DeKalb Ave., Brooklyn 6,

Underwriter—Kamen &

Co.. New York.

ceeds—For

working capital. Address—P. O. Box 2231,
Baton Rouge, La. Underwriter—None.
Hard

Rock

Mining Co., Pittsburgh, Pa.
Feb. 20 (letter of notification) 1,000,000 shares of com¬
mon stock (par one cent).
Price—Five cents per share.
Proceeds—To

purchase machinery and equipment and
for working capital. -Office — 377 McKee
Place, Pitts¬
burgh, Pa. Underwriter—Graham & Co., Pittsburgh, Pa.

★ Hard Rock Mining Co., Pittsburgh, Pa.
May 7 (letter of notification) 1,000,000 shares of
stock

(par

one

cent).

common

Price—Five cents per share. Pro¬
Office—377 McKee Place,

★

Pa.

Harrison

Underwriter—None.

(D. L.)

Corp., Dallas, Texas (5/25)
April 18 (letter of notification) 100,000 shares of com¬
mon

ceeds

stock

capital.

(par 10 cents).

Price—$2.50

per

share.

Pro¬

For

equipment, raw materials and working
Underwriter—Garrett & Co., Dallas, Texas. *

—

★ Heller (Walter E.) & Co., Chicago, III.
May 3 (letter of notification) 17,000 shares of

common

stock

(par $1). Price—$17.50 per share. Proceeds—For
general corporate expenses. Office
105 West Adams
—

St., Chicago, 111. Underwriter—Winress & Co., Chicago,
Offering—Expected today (May 17).

111.

★ Hewitt-Robins, Inc. (6/6)
May 16 filed 70,000 shares of common stock (par $5).
Price—To be supplied by amendment. Proceeds—To re¬




investment.

★ Investors Stock Fund, Inc., Minneapolis, Minn.
May 9 filed (by amendment) 5,000.000 additional shares
of capital stock (par 50 cents). Price—At market. Pro¬
ceeds—For
★

ceeds—For mining expenses.

Pittsburgh,

★ Investors Mutual, Inc., Minneapolis, Minn.
May 9 filed (by amendment) an additional 15,000,000
shares of capital stock (par 50 cents). Price—At market.
Proceeds—For

investment.

Iowa Power & Light Co.

■

•

*

(5/23)

April 25 filed $7,500,000 first mortgage bonds due 1986.
Proceed*—To repay bank loans and for construction pro¬

Underwriter—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
The
First • Boston
Corp.; Equitable Securities Corp.;
Kidder, Peabody & Co.; White, Weld & Co.; Union Se¬
gram.

curities

Corp. and Blair & Co. Incorporated (jointly);
Blyth & Co., Inc.; Lehman Brothers; Kuhn, Loeb & Co.
Bids—To be received up to 9:30 a.m. (CDT) on May 23
at Room 1701, 111 West Monroe St.,
Chicago, 111.
Iowa

Colo.

Office

—.

Underwriter

Kassel

West Montezuma St.,
Cortez,
Bay Securities Corp., New York,

326

—

I
Base

Metals, Inc.
(letter of notification)

6

120,000 shares of capital
cents), of which 20,000 shares are being
sold by Burt Hamilton Co. and
100,000 shares by Kassel
company.
Price—$2.25 per share.
Proceeds—For min¬
ing expenses.
Office—1019 Adolphus Tower BLdg., Dal¬
las, Texas.
Underwriter—First Western Corp., Denver.
(par 10

Colorado.

Kern

Mutual Telephone Co.,
Taft, Calif.
May 1 (letter of notification) 12,000 shares of cumulative
preferred stock, series A. Price—At par ($25 per share).
Proceeds—For retirement of outstanding
preferred stock
and notes payable.

Address—Taft, Calif. UnderwriterCo., Chicago, 111.; Bailey & Co., Fresno,
Calif.; and Hill Richards & Co., Los Angeles, Calif.
Central Republic

★ Kimball Mines, Inc., Spokane, Wash.
May 4 (letter of notification) 100,000 shares of capital
stock (par 10 cents). Price—25 cents per share. Proceeds
—For mining expenses. Underwriter—None.
Lester

Engineering Co., Cleveland, Ohio
(letter of notification) 37,500 shares of
stock (par $1) to be offered for subscription
by

Feb. 24

common

common

stockholders of record March 1, 1956 on the basis of one
new share for each 4Y4 shares held. Of the
unsubscribed

portion,
ployees.

7,500

shares

purposes.

to

are

Price—$8 per share.

land, Ohio.
★

to

up

corporate

be

offered

Proceeds

Office—2711

—

Church

to

em¬

For general

Ave.,

Cleve¬

Underwriter—None.

Lewisohn

Copper Corp.

(5/23-24)
100,000 shares of common stock (par 10
cents). Price—To be supplied by amendment. Proceeds
—For exploration and evaluation of leasehold
properties,
March 30 filed

improvements,

equipment

and

for

Office—Tucson, Ariz.

general

corporate

Underwriter—George

Breen, New York.

★ Link-Belt Co., Chicago, III.
May 10 filed 24,798 shares of common

stock (par
to be offered to a selected
group of officers and
ployees of company and its subsidiaries. Price—$41

$5)
em¬

per

share.

Lockheed Aircraft Corp., Burbank, Calif.
(5/23)
May 2 filed $30,000,000 of debentures due May 1, 1976.
Price
To be supplied by amendment. Proceeds — For
working capital. Underwriters—Blyth & Co., Inc., and
—

Hornblower & Weeks.

Metals, Inc.

(letter of notification)

1,000,000 shares of com¬
mon stock
(par 10 cents). Price — 25 cents per share.
Proceeds—For mining expenses. Office—155 West South
Temple St., Salt Lake City, Utah. Underwriter—Melvin
G. Flegal & Co., Salt Lake City, Utah.

Co., Dal¬

las, Texas.

Minerals, Inc., Cortez, Colo.
(letter of notification) 2,855,000 shares of non¬
common stock (par one
cent). Price—10 cents
share. Proceeds—For expenses incident to mining

activities.

F.

Gray Tool Co., Houston, Texas
May 3 (letter of notification) 3,270 shares of class B stock
(no par), of which 1,000 shares are to be offered pro
rata to the holders of class A stock and 2,270 shares are
offered to employees of the company. Price — $50 per
share. Proceeds—For working capital. Office—6102 Harrisburg Blvd., Houston, Tex. Underwriter—None.

withdrawn

r

Jurassic

purposes.

March 7

purposes.

Co., Ltd,

assessable

stock

(par 10 cents).

ton, Del.
Underwriter
Hoboken, N. J.

Investment

Aug. 26

Feb.

■'

Idaho-Alta Metals Corp.
March 7 (letter of notification)

Dynamics

Israel-Rassco

Independence Issue Bonds only. OfflM
Aviv, Israel. Underwriter — Rassco Israel CorD„

writer—None.

Underwriter—I. J. Schenin Co.,

Underwriter

"Isras"

Sept. 28 filed 9,000 ordinary shares. Price—At par (100
Israel pounds each, or about $55 in U. S.
funds), payabl#

New York.

Securities Co., Provo, Utah.

ment.

Office—1214 Ainsley
Bldg., Miami, Fla. Under¬
writer—Foster-Mann, Inc., New York, N. Y.

ment.

Inc., Montgomery, Ala.
Jan. 5 filed 125,000 shares of common stock (par $1). -'
Price—$5 per share. Proceeds — To expand operations
of subsidiary and increase investment therein.
Under¬

(letter of notification) 1,000,000 shares of com¬
mon stock. Price—Five cents per share.
Proceeds—For
development and working capital. Office—Moab, Utah.

—

Smith,

★ Isthmus Steamship & Salvage Co., Inc.,
Miami, Fta.
May 4 (letter of notification) 100,000 shares of common
stock (par 10 cents). Price—$3 per share.
Proceeds—For
working capital and for purchase of a ship and equip¬

per

Hometrust Corp.,

stock

deter¬

bidding. Probable bidders may
Barney & Co.; The First Boston Corp.

New York.

April 13 (letter of notification) 250,000 shares of capital
Price—At par ($1 per share). Proceeds—For min¬
ing expenses/ Address — P. O. Box 308, Winterhaven,
Calif. Underwriter—Arthur B. Hogan, Inc., Hollywood,

mon

Underwriter—To be

-

competitive

Bids—To be received up to 10:15 a.m.
(CDT) on May 23
at 111 West Monroe St.,
Chicago, 111.

stock.

(letter of notification) 3,000,000 shares of capital
(par five cents). Price—10 cents per share. Pro¬
ceeds
For mining expenses. Underwriter — Bel-Air
—

by

—Tel

Buena Vista, Colo.

Dec. 27

stock

construction ' program.

in State of Israel

Underwriter—None.

Industrial

400,000 shares of common stock (par 10
cents). Price—$1 per share. Proceeds—For plant facil¬
ities, survey of property and underground development.
Underwriter—None. Maurice Schack, Middletown, N. Y.,

Office—600 Morgan St., Keokuk,

working capital.

Holden

(N. J.), New York

filed

is President.

filed

13

atory well costs and expenses.

March 16 filed 32,000 shares

President of company.^

for

mined
include

Iowa.

of common stock (par $1).
Price—$10 per share. Proceeds—To expand company's
business.
Office—Fort Lauderdale, Fla. Underwriter—
None. Offering will be made through James C. Dean,

v.,

$450,000 of participations in this Fund
to be offered for public sale in minimum units of $15,000.
Proceeds—For payment of various property and explor¬
March

For

Insurance Co.

Underwriter—

T

V

Exploration Capital Fund

1956 Oil

Hill & Hill

group

Florida

working capital.

Smith, Barney & Co., New York.

Thursday, May 17, 1956

Power &

Light Co. (5/23)
April 25 filed 249,558 shares of common stock (par $10)
of which 226,871 shares are to be offered for subscrip¬
tion by common stockholders on the basis of one new
share for each eight shares held as of record May 23,
1956; rights to expire on June 7. The balance of 22,687
shares represent stock which may be acquired in stabi¬
lizing transactions. Proceeds—To retire bank loans and

Long Island Lighting Co.
April 5 filed 120,000 shares of cumulative preferred stock,
series G (par $100). Price—To be supplied
by amend¬
ment.

Blyth

Proceeds—To repay bank loans.

Underwriters—

&

Co., Inc., The First Boston Corp. and W. C.
Langley & Co., all of New York. Offering — Postponed
because of present unsatisfactory market conditions.
Los Angeles Airwavs, Inc., Los
Angeres, Calif.
April 23 (letter of notification) 645 shares of common
stock (par $10). Price — $54 per share. Proceeds
To
Clarence M. Belinn, the selling stockholder. Office—5901
West Imperial Highway, Los Angeles 49, Calif. Under¬
—

writer—Dean Witter &

Co., Los Angeles, Calif.

Lost

Canyon Uranium & Oil Co.
Oct. 6 (letter of notification) 3,000,000 shares of non¬
assessable capital stock (par one cent). Priee—10 nenti
per share.
Proceeds—For expenses incident to mining
operations. Office — Simms Bldg., Albuquerque, N. M.
Underwriter—Mid-America

Securities

Inc. of

Utah, Salt

Lake City, Utah.

Lumberman's

Investment & Mortgage Co.
->
50,000 shares of common stock (par $10).
Price—$12 per share. Proceeds—For working capital and
general corporate purposes.
Office — Denver, Colo.

May 2 filed

Underwriter—None.

M. & D. Display Mfg. Corp., Alhambra, Calif.
April 20 filed 100,000 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds
For
plant construction; machinery and equipment; to retire
.

—

existing indebtedness; and for other corporate purposes.
Underwriters
Bateman, Eichler & Co., Los Angeles,
Calif; and Dempsey-Tegeler & Co., St. Louis, Mo. —

★ Mannoth Milling & Uranium Co., Inc.
May 11 (letter of notification) 3,000,000 shares of capital
stock.
Price—At par (10 cents per share). Proceeds—
For mining expenses.
Office—205 Carlson Bldg., Pocatello, Idaho. Underwriter—Columbia Securities Co., Inc.
of

California, Beverly Hills, Calif.

Number 5534

Volume 183

.

.

The Commercial and Financial Chronicle

.

(2403)
Manufacturers Cutter Corp.

National Lithium

Oct. 18

(letter of notification) 300,000 shares of class A
common stock. Price—At par ($1 per share). Proceeds—
To repay loans, and for new equipment and working
capital. Business—Cutting tools. Office—275 Jefferson
St., Newark, N. J. Underwriter—Paul C. Ferguson & Con
city.

same

J

National

,

March

29

& Gas Ventures,

None.

Office—421

Glenwood Ave., Grand

Hospital, Inc., Bronx, N. Y.
shares of common stock (no par)
30,000 shares of $6 dividend preferred stock «(no
par).
The company does not intend presently to sellmore stock than is required to raise, at most. $2,700,000
$100 per share.

Proceeds — For construction,
working capital, reserve, etc. Underwriter—None.

Proceeds—To

1981.

bonds

be

from

received

from

American

sale to it of

Natural

additional

Gas

Co.,

due

common

by competitive bidding.

Probable

Mineral

Projects-Venture C, Ltd., Madison, N. J.
Feb. 7 filed $4,000,000 of participations in capital as lim¬
ited partnership interests in the venture to be sold in

A

stock

common

—

Bond

&

Share

Co., Tulsa,

Nemaha Oil

cumulative

convertible

*3,000 shares of
units of

one

stock

(par 3V3

cents).

For mining

—

Price—10

expenses.

St., Salt Lake

City, Utah.
& Co., Denver, Colo.

cents

Office

—

16

stock

(par

$50)

unit.

per

and processing silica.

Proceeds

—

to

be

offered

to

common

stockholders

of

along

the southern

Lehman

California

carry

The

coastline.

on

Texas

(5/31)

May 10 filed 3,011,973 shares of common stock (par $1,
2,811,973 shares are to be offered for subscrip¬
tion by common stockholders of Pacific Northwest
Pipe¬
line Corp. at the rate of one new share for each share
of which

Co.

Brothers, New York.

of Pacific

stock

Mining Corp., Salt Lake City, Utah
(letter of notification) 3,000,000 shares of capital

(par

cent).

one

Price—10

cents

per

ceeds—For mining expenses. Office—223

share.

to

and

.

mined

by competitive bidding. Probable bidders: Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.; The First
Boston Corp.; Drexel & Co. and Dean Witter & Co.
(jointly). Bids—Expected to be received up to noon
(EDT) on May 28.
I

National Aviation Corp.
April 17 filed 139,523 shares of capital stock (par $5)
being offered for subscription by stockholders of record
May 8. 1956. on the basis of one new share for each
held

(with

oversubscription privilege);
rights to expire May 22, 1956. Price — $30 per share.
an

investment.

Underwriter—None.

it National Consolidated Mining Corp.
May 9 (letter of notification) 87,000 shares of
stock

(par

For mining

*

der,

Peabody

one

cent).

expenses.

Prioe—$3
Address

per

share.

Proceeds—

Fuel

Gas

Co.

■

March 28 filed 447,797 shares of

Under-

—

common

stock

wood, N. J.

and

leases

gas

or

&

Co., Dominion Securities
Corp.; all of New York.

Corp.

and

Oak Mineral

share. Pro¬
ceeds—For exploration and development and other
gen¬
eral corporate purposes.

Old National Insurance Co.,

new

\

.

(par $10)

for

30, 1956

on

oversubscrioh'on

Price

—

$17.75

privilege);
per

share.

27

porate purposes.

stock held.




Proceeds

filed

shares of

Underwriter—None.

for

each

nine

—

shares

held

(with an
—
To be supplied by
purchase life insurance in

Price

To

Peabody Coal Co., Chicago,

Proceeds—To be used to purchase common
stock, or for
to the operating
subsidiaries; and for other cor¬

loans

Houston, Tex.

and assets from other life insurance
companies.
Subscription Agent — Old Southern Trust Co., Houston,
Tex. Underwriter—None.

offered

an

share

oversubscription privilege).
amendment.

each 10 shares held

May 25.

Underwriter—Philip Gordon &

Co., New York.

one

stock

for

and

Salomon

Boston

Bids—Tentatively scheduled
(EDT)

a.m.

on

it Potomac Electric Power Co.
May 14 filed 281,435 shares of
be

offered for

the

basis of

of record

as

on

or

be

received

new

(6/6)

common

subscription by

one

to

June 4.

about June

stock

common

share for

each 20

(par $10)

stockholders

shares held

5, 1956; rights to expire

about June 20. Price—To be
supplied by amend¬
ment. Proceeds
For construction
or

—

program.

Under¬

writers—Dillon, Read & Co. Inc., New York; and John¬
ston, Lemon & Co., Washington, D. C.

Power-Freeze, Inc., Atlanta, Ga.

210,823

shares

subscription

by

of

III.
common

stockholders

stock

of record

the basis of nine additional shares of

each

100

common

stock for

shares

held

and

being
Jan.

common

duce

outstanding obligations and for inventory and
working capital. Underwriter—Franklin Securities
Co.,
Atlanta, Ga.
★ Price & Co., Inc. (N. J.)
May 8 (letter of notification) 6,975 shares of capital stock
(par $20). Price—$43 per share. Proceeds—To -reduce
bank loan.
Business—Title insurance. Office—114 No.
7th St.,
Camden, N. J. Underwriter—None.
Prudential

Federal Uranium Corp.
^
(letter of notification) 6,000,000 shares of com¬
mon stock (par two
cents). Price—Five cents per share.
Proceeds—For mining expenses.
Underwriter—Skyline
Securities, Inc., Denver 2, Colo.
March 21

it Public Finance Service, Inc.,
Philadelphia, Pa.
May 3 (letter of notification) $300,000 of 6% cumulative
debentures, 1955 series. Price—At par in denominations
of $100 and
multiples thereof). Proceeds—For working
capital.
Pa.

Office—18 West Chelton
Ave., Philadelphia

44,

Underwriter—None.

Quo Vadis Mines, Inc., Las
Vegas, Nev. '/«
March 8 (letter of
notification) 300,000 shares of com¬
mon stock
(par 10 cents). Price—$1 per share. Proceeds
—For mining expenses.
Office—Viener-Jones Bldg., 230
S. 5th St., Las
Vegas, Nev. Underwriter
First Jersey
Securities Corp., Newark, N. J.
R.

and

nine

P.

Minerals, Inc., Reno, Nev.
notification) 500,000 shares of

Feb. 14 (letter of
For

Price—At par

(10 cents

mining expenses.

ner

share).

common

Proceeds—

Office—573 Mill St., Reno, Nev.

Underwriter—Utility Investments, Inc., Reno, Nev.
it Rainbow Uranium Co., Denver, Colo.
May 8 (letter of notification) 3,000,000 shares of

common

stock (par one cent). Price—10
cents per share. Proceeds
mining expenses. Office—316 Symes Bldg., Den¬

—For
ver,

Colo. Underwriter—Carroll & Co.,
Denver, Colo.
(Fred P.), Inc., St. Louis, Mo.

new

March

2

filed

150,000 shares of 5^%

ferred stock (par $10).
ment. Proceeds—To

cumulative pre¬
Price—To be supplied by amend¬
bank loans incurred by com¬

repay

pany

to redeem

and

cancel

all

of

the

issued

and

out¬

standing shares of 4% and 7% preferred
stock; and for
expansion program. Underwriter—Edward D. Jones &
Co., St. Louis, Mo. Statement may be withdrawn as com¬
be acquired by ACF-Wrigley Stores, Inc.
it Raymond Corp.
May 10 (letter of notification) 21,400 shares of common
stock (par $5).
Price—$14 per share. Proceeds—For ex¬
pansion and working capital. Office —
Greene, N. Y.
Underwriter—George D. B. Bonbright & Co., Rochester,
pany may

N. Y.

Reading & Bates Offshore Drilling Co. (5/24)1
May 2 filed 170,000 shares of class A (cumulative con¬
vertible) capital stock (no par). Price—$12 per share.
Proceeds—To repay loans and advances and for work¬
ing capital. Office—Tulsa, Okla. Underwriters—Hulme,
Applegate & Humphrey, Inc., Pittsburgh, Pa.; The Mil-

each 40

shares of preferred
This offer will not be made to holders of the

common

(letter of notification) 3,300 shares of common
(no par). Price—$15 per share. Proceeds—To re¬

Rapp

Corp., Farmington, N. M.
per

Feb.

(with

& Oil

Nov. 8 (letter of notification)
2,000,000 shares of common
stock (par five cents). Price—15 cents

being offered for subscription by common stockholders
May 8. 1956, on the basis of one new share for
on

Lee

—

force

4

of record

rights to expire

Underwriter

ter part of June.

of

Inc.

to 11

stock.

Higginson Corp.. New
York. Name Changed—From
Atomic, Chemical & Elec¬
tronic Shares, Inc. Offering—Not
expected until the lat¬

-

Co.

—

oil

Underwriters—White, Weld & Co., Kid-

March 29 filed 48,108 shares of capital stock
(no par) to
be offered for subscription by stockholders on the basis

common

Salida, Colo.
writer—Pummill Enterprises, Houston, Tex.
National

—

acquisition of additional

Nucleonics, Chemistry & Electronics Shares, Inc.
Feb. 17 filed 400,000 shares of capital stock
(par $1).
Price—To be supplied by amendment
(expected at $10
per share). Proceeds — For investment. Office—Engle-

repayment, in part, of advances from American
Telephone & Telegraph Co. Underwriter—To be deter¬

Proceeds—For

(with oversubscription

•

May 8 filed $25,000,000 of debentures due 1990. Proceeds

shares

for

Union Securities

Telephone & Telegraph Co.

—For

four

held

shares are to be offered
Price—To be supplied by amendment.
For exploration and development
expenses

other interests.

(5/28)

.

stock

key employees.

Proceeds

Pro¬

Phillips Petrol¬

Bldg., Salt Lake City, Utah. Underwriter—Frontier
Investment, Inc., Las Vegas, Nev.
States

Northwest

privilege); remaining 200,000

eum

Mountain

share.

90, Illinois.

Underwriter—

Co.

up

stock

Uranium, Inc., Spokane, Wash.

/^Northwestern Production Corp., Houston, Tex/

Mormon Trail
Feb. 9

Star

by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Glore, Forgan &
Co.; The First Boston Corp.;
Blyth & Co., Inc. Bids—To be received up to 10 a.m.
(CDT) on May 17 at 231 South La Salle St./ Chicago

pro¬

a

&

First

March 28

eral corporate purposes. Underwriter—To be determined

record

Ave., North, St. Petersburg, Fla. Underwriter.

Bros. & Hutzler
(jointly);
Corp.; Lee Higginson Corp.; Dillon,
& Co. Inc. and
Johnston, Lemon & Co. (jointly);
Lehman
Brothers, Stone & Webster Securities Corp.
and Union Securities
Corp. (jointly); Harriman Ripley

Kingston, Pa

•

May 18,1956, at the rate of one new share for each seven
shares held; rights to expire on June 4. Price—To be
supplied by amendment. Proceeds—To
gram of offshore oil exploration with

A. E. Nicholson Jr. of

$2,-

Inc.; Kidder, Peabody
Co., Merrill Lynch, Pierce, Fenner & Beane,
White,

&

on

Northern Illinois Gas Co.
(5/17)
April 18 filed $15,000,000 of first mortgage bonds due
April 1, 1981. Proceeds—For new construction and genr

Underwriter—None.

share.

per

mortgage bonds, for construction pro*
Underwriter—White, Weld & Co., New York.

Industries, Inc., St. Petersburg, Fla.
1
(letter of notification) 8,000 shares of class A
stock (par $1).
Price—AK the market (maxi¬
$6). Proceeds—For working ^capital. Office—34th

Weld

on

mining expenses. Office—W. 408 Indiana
Avenue, Spokane, Wash.
Underwriter—Pennaluna &
Co., Spokane, Wash.

Monterey Oil Co., Los Angeles, Calif. (5/21)
April 25 filed 225,810 shares of common stock (par $1)

shares held

due 1991. Proceeds—For construction
program.
Under¬
writer—To be determined
by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co.

South

Proceeds—For

For mining expenses

ten

Price—$12

from private sale of

★ Potomac Electric Power Co. (6/4)
May 14 filed $10,000,000 of 35-year first mortgage bonds

345

per

Office—2508 Auburn Ave., Cincin¬

May 23.

first

St. & 22nd

to

March 15 (letter of notification)
1,500,000 shares of com¬
mon
stock (par 10 cents).
Price—15 cents

and

on

16

mum

share.

filed

North

stock

common

share for each

new

common

per

Underwriter—Birken-

is President.

8%

one

Pinellas

&

Underwriter—None.

(no par) to be offered in
share of preferred and one share of common..

Price —$60

nati, Ohio.

preferred

of

of

of

gram.

Proceeds—For working capital. Office—South
St., New
Britain, Conn. Underwriter—None.

—

shares

000,000

Co., New Britain, Conn.
May 8 (letter of notification) 6,000 shares of common
stock (par $10) to be offered to certain of its
employees.

(W. H.) & Co., Wilkes-Barre, Pa.
20,000 shares of common stock (par $5).
Price—$25 per share. Proceeds
For working capital.

Ohio

rate

Proceeds—Together with funds

The

Britain Machine

Nicholson

Jackson, Miss.

the

at

May 8; rights to expire

Read

Jan.

mon shares.
Price—$40 per unit. Proceeds — For pur¬
chase of machinery and equipment. Office—New
Albany,
Miss.
Underwriter—uewis & Co.,

Piedmont Natural Gas Co., Inc.
12 filed 41,530 shares of common stock
(par $1)
being offered for subscription by common stockholders

—Eisele & King, Libaire, Stout &
Co., New York.

Underwriter—Western

State

in¬

•

April

Tex.

mayer

Mission Appliance Corp. of Mississippi
April 23 (letter of notification) 7,475 shares of preferred
stock (par $20) and 29,900 shares of common stock
(par
$5) to be offered in units of one preferred and four com¬

3,000

Underwriter—

—None.
-

and

Proceeds

cidental to oil exploration program.
Underwriter—Min¬
eral Projects Co., Ltd., on "best efforts basis."

Mohawk Silica Co., Cincinnati,
March 23
(letter of notification)

capital and general corporate purposes.
None. Statement effective March 27.

Feb.

mon

Proceeds—For expenses

/"

Niagara Uranium Corp., Salt Lake City, Utah
April 3 (letter of notification) 2,400,000 snares of com¬

York, N. Y.

minimum units of $25,000.

"•••-•

To

—

New

sey, Stuart & Co. Inc.; Kidder, Peabody & Co.; Glore,
Forgan & Co. and Lehman Brothers (jointly); Smith,
Barney & Co., Kuhn, Loeb & Co. and Blyth & Co., Inc.
(jointly); Harriman Ripley & Co. Inc. Bids—Expected
to be received up to noon (EDT) on June 4 at offices
of the parent, American Natural Gas Co., 165
Broadway,

New

will expire on Dec.
31, 1957.
share). Proceeds—For working

per

(with an oversubscription privilege); rights
expire on or about June 11. Price—To be supplied
by amendment. Proceeds—For investment. Underwriter

Inc., New York.

Hal-

bidders:

($5

to

exploration and development costs and t® retire out¬
standing indebtedness. Office — 2206 Mercantile Bank
Bldg., Dallas, Tex. Underwriter—Whitney-Phoenix Co.,

parent

stock, to be used
for construction program. Underwriter — To be deter¬
mined

warrants

par

acquiri-

offer of June

an

shares held

Co., Dallas, Texas (5/21)
April 11 (letter of notification) 200,000 shares of common
stock (par $1). Price—$1.50 per share.
Proceeds—For

sell

and

l-for-4 basis.

Okla.

$13,000,000 of first
mortgage bonds. Proceeds—Together with $5,000,000 to
repay

The

under

it Natural Power Corp. of America, Waco, Texas
May 1 (letter of notification) 64,000 shares of common
stock (par one cent). Price—$3.25 per share. Proceeds—
For mining expenses.
Address—P. O, Box 2299, Waco,

•

it Milwaukee Gas Light Co. (6/4)
May 9 filed $13,000,000 of first mortgage

a

50,000 shares of class B common stock
Price—To be supplied by amendment. Pro¬
selling stockholders. Office
Little Rock,
Ark.
Underwriter—Equitable Securities Corp., Nash¬
ville, Tenn., and New York, N. Y. Offering—Indefinitely
oostponed.

filed 24,120

—

-

$2).

vpar

ceeds

and

Price

'

V,

(par $2)

-

Midland General
12

Co.,

vacuum

„

Junction, Colo,
Underwriter—Columbia Securities Co., Denver, Colo.
Jan.

Proceeds—For

National Old Line Insurance Co.
15 filed 50,000
shares of class

Inc.
com-

1955.

Price—At

metallizing,
conditioning, slitting and inspection machinery. Office—
1145-19th St., N. W., Washington, D. C.
Underwriter—

(par one cent). Price —15 cents per share.
Proceeds—For expenses incident to oil and gas proper¬
ties.

share.

per

Nov.

(letter of notification) 900,000 shares of

28,

stock issued for the

properties

Metallizing Corp.

B stockholders of record Feb. 1, 1956 on

Price—$2

stock

mon

Investment Service

common

Sinclair

Petroleum Corp. of America (5/28)
(letter of notification) 24,000 shares of Class A
May 7 filed 328,400 shares of common stock (par $1) to
(par $1) and 40,000 shares of Class B stock (par
be offered for subscription
by common siockuoiders of
$1) to be offered for subscription by Class A and Class ' record
May 28 at the rate of one new share for each five

and sale of water well supplies and
systems; tubing and forged steel unions and fit¬
Underwriter—Dominick & Dominick, New York. •

Oil

—

the

stock

ness—Manufacture

Mesa

Underwriter

of

March 5

_

tings.

6,492,164 shares of
tion

Bldg.,

Denver, Colo.
same city.

• Mark
(Clayton) & Co., Evanston, III. (5/23)
■■
April 27 filed 101,420 snares or common stoctv.
$5),
of which 60,000 shares t are to be offered for account of
the company and 41,420 shares by selling stockholders. ;
Price — To be supplied by amendment. Proceeds — For
working capital and general corporate purposes. /Busi¬

water

Corp., Denver, Colo.

Dec. 27 (letter Of notification) 300,000 shares of common
stock (par one cent). Price—$1
per share.
Proceeds—
For mining expenses. Office — 556 Denver Club

55

Continued

on

page

56

56

The Commercial and Financial Chronicle

(2404)

55

Continued from page

Milwaukee, Wis.; The Ohio Company,
lumbus, Ohio; and Stroud & Co., Inc., Philadelphia,

waukee Co.,

Co¬
Pa.

Glade, Fla.
Mav 9 (letter of notification) 86,954 shares of class A
participating preference stock (par 80 cents) to be of¬
fered for subscription by stockholders. Price
$1.06 74
i>er share
Proceeds—To pay off bank loan and for expanslon and working capital. Office-64 N E. 73rd St.,
Miami, Fla. Underwriter — Frank L. Edenfield & Co.,
Co., Inc. of Belle

Re-Mark Chemical

jl.

Miami, Fla.

Farmers Trust

commercial

March

cents).

■

shares of common stock. Price—
Proceeds—To purchase real prop¬
erty, for construction of buildings and other facilitie*
general corporate purposes.
& Bayley Investment Co.

eon

(5/24)

Price—$10
per share. Proceeds—For construction of plant, working
capital and general corporate purposes. Underwriter—
Vickers Brothers, New

16 filed 470,000 shares of common stock

Price

York.

stock. Proceeds—To the Attorney
States. Underwriter—To be de¬

by

& Co.

burg, Thalmann

(jointly).

Schwartz Carbonic Co.,

j.'

Price—At

St., San Francisco, Calif. Underwriter—None.
California Gas Co.

Proceeds—For

market.

share of

common

Pa.

Price—To be supplied by amendment. Proceeds—
repay bank
loans and for construction program.

(par $1), of which 33,718 shares
public and 1,482 shares are to be
Price—$8.50 per
share. Proceeds—To repay loan used in the construction
of a new plant. Underwriter — Eastman, Dillon & Co.,
offered

Sweeny & Co.,

Inc. and BJair

&

to

Shangrila Uranium Corp.
(letter of notification) 300,000 shares of com¬
mon stock.
Price—£t par ($1 per share). Proceeds—
For mining expenses. Underwriter—Western States In¬
vestment Co., Tulsa, Okla.

May 14 filed 50,000 shares of
and

$1,500,000

stock

common

(par $1)

fund convertible subordinated
Price—To be supplied by amendment. Pro¬

debentures.

sinking

ceeds—For capital expenditures and for working capital.

Underwriters—Wagenseller & Durst, Inc.
Byons & Co., both of Los Angeles, Calif.
•

and

Lester,

April 12 filed 80,500 shares of preferred stock, series A
(par $50) to be offered in exchange for the outstanding
35,000 shares of 6% preferred stock on the basis of 2.3

Sprague

new preferred for each share of old
preferred.
Exchange offer expected to be made today (May 17); to

expire

on

June 5.

Proceeds—To
hank loans.

Price—To be supplied by amendment.
redeem old preferred stock or to retire

Underwriters—Stone

& Webster

Corp., New York, N. Y. and Dean Witter
Francisco, Calif.
Sierra

Prefabricators, Inc.

&

Securities

Co., San

(Calif.)

March 12

(letter of notification) 149,500 shares of cap¬
Price—$2 per share. Proceeds—For
working capital and general corporate purposes. Under¬

ital stock (par $1).
writer— S. D.

Fuller &

Co., New York.

Offering—Post¬

Simca, Paris, France
March

29

filed

(1) such number of American
as may be
issued (on a basis of two American
for each underlying capital
share) in respect of
713 capital shares of Simca and
(2) the 1,455,713

shares.
of

shares
shares

These securities are being offered to the
holders
presently outstanding capital shares, including holders
shares representing capital
shares, at the

of American
Tate

of

share

one

(or

American

additional

one

capital share
additional American

share) held

for

each

share

capital

for

each

April 30, 1956, together with
subscription privileges. The subscrip¬
tion price will be 5,500 francs
(approximately $15.71)
per capital share and approximately
$7.86 per Ameri¬
can
share.
Subscription rights of holders of capital
shares will expire at the close of
business in Paris on
on

certain additional




each

four

common

and

Cuba,

stock, $104
all

stock

of which

one

per

LP-Gas company;

two

70%

common

Proceeds—To

selling stockholders. Under¬

I

if Sweet Corp. (Utah)
May 7 (letter of notification) 300,000 shares of common
stock. Price
At par ($1 per share).
Proceeds — For
mining expenses. Office—Continental Bank Bldg., Salt
—

Lake

City, Utah. Underwriter
Inc., Salt Lake City, Utah.
Target Uranium Corp.,

—

Coltharp Investment

of the shares of

Spokane, Wash.
1,000,000 shares of

com¬

stock

in

third

be used for general

Underwriter—Scott, Horner

&

Ma->

if Trusteed Funds, Inc., Boston, Mass.
May 8 filed (by amendment) 800 additional Common*
wealth Fund Indenture of Trust Plan C
At market. Proceeds—For
investment.

shares. Price-^

Tunacraft, Inc., Kansas City, Mo.
17 (letter of
notification) $250,000 of 6%

Jan.

12-year
subordinated sinking fund debenture notes
1, 1968. Price—At par. Proceeds—To reduce
outstanding secured obligations. Underwriter—McDon¬
ald, Evans & Co., Kansas City, Mo.
\
due

Jan.

Union

of Texas

Oil

Co., Houston, Texas

Jan. 19 (letter of notification)
240,000 shares of common
stock (par 10 cents). Price—$1.25

per share. Proceedf^—
incident to oil production. Office — San

Houston, Tex. Underwriter—Mickle

U.

S.

Fiberglass Industrial Plastics, Inc.
(letter of notification) 150,000 shares of con¬
vertible preferred stock (par $1) and 30,000 shares of
common stock
(par 10 cents) to be offered in units of
March

19

unit; and to public, $10 per unit. Proceeds—For
capital improvements and general corporate purposesOffice—Norwood, N. J. Underwriter—None.
if United States Plywood Corp.
May 15 filed $15,000,000 of 25-year sinking fund deben¬
tures.

Texas Eastern Transmission
Corp.
Nov. 30 filed 200,000 shares of cumulative

preferred
(par $100). Price—To be supplied by amendment.
Proceeds—Toward redemption of presently
outstanding
190,000 shares of 5.50% first preferred stock.
Under¬

writer—Dillon, Read & Co., Inc., New York.
Temporarily postponed.
r

Offering—

—

$3

per

share.

working capital and general corporate
—Meadows Building, Dallas, Texas.
Thomas F. Neblett, Los Angeles, Calif.

Underwriter—Eastman,.

offered for

each

six shares held; rights to
expire on June 19„
Price—To be supplied by amendment. Proceeds—
make investment in and/or advances to

1956.

company's

subsidiaries to defray a portion of the cost of
struction. Underwriter
Kidder, Peabody &
—

new

con¬

Co., New

York.

Uranium Exploration Co., Salt Lake
City, Utah
Feb. 13
stock

(letter of notification) 77,875 shares of common
Price—$1 per share.
Proceeds—

(par 25 cents).
For mining expenses.
Salt

Office—538

Lake

East

City, Utah.
Underwriter
ments, Salt Lake City, Utah.
Utco
Jan.
mon

Uranium

30

(letter of
stock, which

—

21st

South

Pioneer

St.,

Invest¬

Corp., Denver, Colo.
notification) 200,000 shares of com¬
are covered by an option held by the

underwriter.

Price—10 cents per share. Proceeds—For
mining expenses. Office—310 First National Bank Bldg.,
Denver, Colo. Underwriter — Amos C. Sudler & Co*
same city.

Vance

Industries, Inc., Evanston, III.
(letter of notification) 7,000 shares of common
(par one cent). Price—$7 per share. Proceeds—

Jan. 24
stock
To

Tex-Star Oil & Gas Corp.,
Dallas, Texas
Jan. 20 (letter of notification) 99,990 shares of

Price

purposes.

(par $10>
subscription by common stockholders
record June 5, 1956, on the basis of one new share

be

of

To

Taylor Petroleum Corp., Norman, Okla.
Feb. 1 filed 200,000 shares of common stock
(par $1).
Price—To be supplied by amendment.
Proceeds—For
working capital, drilling and completion of additional
wells, possible acquisition of interests in additional oil
and gas leases and exploration for oil and
gas
Under¬
writer—Hayden, Stone & Co., New York. Offering—
Postponed indefinitely.

corporate

Co., New York.

if United Utilities, Inc. (6/6)
May 15 filed 251,389 shares of common stock

for

$1).

Price—To be supplied by amendment. Proceeds—►

For general

Bldg., Spokane, Wash. Underwriters—Percy Dale Lanphere and Kenneth Miller Howser, both of Spokane,

•

common

stockholders, $9>

to

if Taylor Fiber Co., Betzwood, Pa.
May 15 filed 53,347 shares of common stock (par $3).
Price—To be supplied by amendment. Proceeds—To cer¬
tain selling stockholders. Underwriter
Stroud & Co.,
Philadelphia, Pa.

&

Co., Houston, Texas.

(par five cents). Price—20 cents per share.
Proceeds—For mining expenses. Office — 422 Paulsen

(par

a

Inc., Lynchburg, Va.

Dillon &

March 1 (letter of notification)

stock

$11
finance

to

companies

per

mon

I

Price—For

common

be used

LP-Gas

the remainder will

corporate purposes.

new

held.

share; and for

of

owns

one

shares

the

selling stockholders. Office — 2108 Jackson Ave.,
Evanston, 111. Underwriter—Arthur M. Krensky & Co.,
Inc., Chicago, 111.

,

1,455,capital

for

preferred share for each 170
held

five shares of preferred stock and one share of
stock first to stockholders.
Price—To

stock

poned indefinitely.

share

one

stock

common

Sun Oil Co., Philadelphia, Pa.
April 18 filed 229,300 shares of common stock. Price—At

—

shares of

of

Jacinto Building,

Wash.

Sierra Pacific Power Co.

stockholders at rate of

shares

For expenses

if Shopping Bag Food Stores, Los Angeles, Calif.

^

if Tropical Gas Co., Inc., Miami, Fla.
May 9 filed 3,088 shares of $5.24 convertible
preferred
stock (par $100) and
131,230 shares of common stock
(par one cent) to be offered for subscription by common

tive

writer—None.

1

—

registered

Philadelphia, Pa.

Dec. 30

'

&

Place, Newark, N. J. Underwriter
Midland
Securities, Inc., New York, N. Y. Effective May 9. •

Feb. 2

market.

Pro¬

Park

son,

Ave., Spokane, Wash. Under¬
writer—W. T. Anderson & Co., Inc., Spokane, Wash.

offered to holders of outstanding stock.

60

of

To

com¬

pay

Proceeds—$1,188,000 to

fice—909 West

second preferred stock

be

Transportation Vendors, Inc.
(letter of notification) 299,750 shares of
stock (par five cents).
Price—$1 per share.

acquisition

Developers, Inc., Spokane, Wash.
(letter of notification) 920 shares of 6% cumula¬
non-voting preferred stock ($100 per share) and
2,160 shares of common stock (par $10). Price—Of pre-,,
ferred, $100 per share; and of common, $15 per share.
Proceeds—For improvements and working capital. Of*

May 4 (letter of notification) 35,200 shares of convertible
to

•

^>er share.

Suburban Land

and three shares of preferred stock.

Busi¬

types of base metals. Underwriter—Charles
Co., New York.

&

1976 and 40,000 shares of cumulative preferred stock (par

Strategic Metals, Inc., Tungstonia, Nevada
Jan. 4 (letter of notification) 1,200,000 shares of com¬
mon stock.
Price—25 cents per share.
Proceeds—For
expenses incident to mining operations.
Underwriter—
R. Reynolds & Co.. Salt Lake City, Utah.

per

if Selas Corp. of America, Dresher,

various

Plohn

preferred

writer—None.

unit. Proceeds—For working capital, etc.
Office—257 Josephine St., Denver, Colo. Underwriter—
Intermountain Securities, Inc., Denver, Colo.

Price—$4

loans.

development of new and improved
techniques and equipment for
depositing chromium coatings directly

processes,

if Southern Union Gas Co. (6/4-8)
May 11 filed $10,000,000 of sinking fund debentures due

Inc.
(letter of notification) 15,001 shares of common
(par 10 cents) to be offered for subscription by
stockholders.
Price—$10 per share. Proceeds—For ex¬
penses incident to development of oil and gas properties.
Office—801 Washington Bldg., Washington, D. C. Under¬

investment.

short-term

repay

indebtedness, and for expansion and
working capital. Business—Vending machines. Office—

(5/23)

Southwestern Oklahoma Oil Co.,

if Security Casualty Insurance Co.
May 10 (letter of notification) 30,000 shares of common
stock (par 30 cents) and 90,000 shares of participating
preferred stock (par 50 cents) to be offered in units of

to

mon

Feb. 27

(par $1).

—

and

—41 Sutter

Inc.

stock

if Science & Nuclear Fund, Inc.
May 9 filed 90,000 additional shares of common stock
(par $1). Price—At market. Proceeds—For investment.
if Scudder Special Fund, Inc., New York
May 11 filed 300,000 shares of capital stock

per

etc.;

ness—Research and

March 23

Mines,

basis of 0.6158

Price—$7.50 per share. Proceeds—For expenses incident
to manufacturing and sales of carbon dioxide.
Office—
1600 East Eleventh St., El Paso, Tex. Underwriter—None.

May 18; rights to expire about June
share. Proceeds
For production

ing of offering circular dated April 27, 1956. Price—45
cents per share. Proceeds—For mining expenses. Office

Quicksilver

Underwriters—Snow,

stockholders on
share for each common share held.

new

equipment,

$3

(par $1)

stockholders

mon

$100).

El Paso, Texas

(letter of notification) 30,700 shares of common

of record about

Price

stock

common

share for each three shares held

new

(par
10
cents)
offered
for
subscription
by
stockholders; rights expiring 20 days from date of mail¬

Sonoma

Co. Incorporated, both of New York.

are

To selling

subscription by

one

1.

—

(5/18);
common

March 16

stock to be offered for subscription by

one

—

Underwriter—None.

—

competitive bidding. Probable bidders:
Kidder, Peabody & Co. and Drexel & Co. (jointly); A.
G. Becker & Co. Inc., Union Securities Corp. and Laden-

termined

'

Proceeds

(par 10

April 23 filed $40,000,000 of first mortgage bonds, series
B, due 1981. Proceeds—To repay short-term indebted¬
ness
owing to parent, Pacific Lighting Corp.; and for
construction program.
Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Blyth & Co., Inc.; Lehman Brothers, White,
Weld & Co. and Union Securities Corp. (jointly). Bids—
To be received up to 8:30 a.m. (PDT) on May 23 at
Room 1216
810 South Flower St., Los Angeles 54, Cal.

Philadelphia, Pa.
of 4% cumulative preferred
itock, series A (par $100) and 79,213 shares of common
stock (par $20), representing 7.8% of the outstanding

Feb. 27

At the market.

—

Southern

10 filed 4,810 shares

General of the United

for

as

ceeds— To

ic Rohm & Haas Co.,

shares of each class of

offered

at the rate of

on

stock

Underwriter—WU-

Republic Cement Corp., Prescott, Ariz.
April 20 filed 965,000 shares of capital stock.

May

& Television Corp.

April 9 (letter of notification) 640,000 shares of capital

($1 per share).

end for

be

Togor Publications, Inc., New York
(letter of notification) 299,700 shares of com¬
stock (par 10 cents).
Price—$1 per share. Proceeds
—For working capital and general
corporate purposes.
Office—381 Fourth Ave., New
York, N. Y. Underwriter
—Federal Investment Co.,
Washington, D. C.

•

19 filed 4,000,000

At par

to

electrolytically
Electronics

Skiatron

stockholders.
Dec

•

Tiarco Corp., Newark, N. J.
April 25 filed 375,000 shares of

Co., New York.

Thursday, May 17, 1956

.

June 6, 1956, whereas warrants evidencing subscription
rights of holders of American shares will expire on May
31, 1956. The subscription is to be handled by a group
of French subscription
agents.
Proceeds—To finance
a program of
expansion and improvement. Business—
Simca is engaged in the production and sale of passenger
automobiles, trucks, tractors and other products in
France.
Depositary—For American shares: City Bank

Hacienda, Inc., Inglewood, Calif.

Reno

..

common

Proceeds—For

Office
Underwriter —

purposes.

Value Line Special Situations Fund, Inc.* (N. Y.)'
April 18 filed 2,000,000 shares of capital stock (par 10
cents). Price—$3 per share. Proceeds—For investment.
Underwriter—Value

if Thatcher Glass Mfg. Co., Inc.
May 11 (letter of notification) 1,400 shares of common
stock
(par $5) to be offered for subscription by em¬
ployees. Price — $16.20 per share, or market if lower.

Line

Distributors, Inc., New York.

if Webb's City, Inc., St. Petersburg, Fla.
April 30 (letter of notification) $300,000 unsecured
eral

obligation

5%

ten-year

debentures

gen¬

Proceeds—To reimburse company for cost of said stock.

(callable at
102%). Price—At par. Proceeds—For working capital.
Office—128 Ninth St., South, St. Petersburg, Fla. Under¬

Office—Elmira, N. Y.

writer—None.

Underwriter—None.

'

Number 5534.... The Commercial and Financial Chronicle

Volume 183

(2405)

57

-it -

ir Western Air Lines, Inc., Los Angeles, Calif.
May 16 filed ;$5,0^0,000-of^convertible , subordinated debentures due June 1, 1971. Price — To be supplied by
amendment. Proceeds—Together with treasury funds, to
repay bank loans, which at April 30, 1956 was $5,800,000.
Underwriter—Blyth & Co., Inc., San Francisco and New
York.

Western Electric Co., Inc.
April 13 (letter of notification) 2,595 shares of common
stock (no par) being offered for subscription by minority
stockholders of record April 10, 1956 at the rate of one
share for each nine shares held;

rights to expire on
May 31, 1955. An additional 1,409,071 shares are to be
sold to American Telephone & Telegraph Co., owner of
99.82% of the outstanding voting stock. Price—$45 per
share. Proceeds—For plant improvement and expansion.
new

ic Carpenter Paper Co.
May 10 it was reported company is understood to bq
planning the sale of some additional common stock.

Prospective Offerings

.

Air-Vue Products Corp., Miami, Fla.
Feb.

Underwriter—Kidder, Peabody & Co., New York.

20

it was reported early registration is expected
150,000 shares of common stock. Price—Around $4.25
per share. Proceeds — For expansion program. Under¬
writer—Arthur M. Krensky & Co., Inc., Chicago, 111.
of

★ American Machine & Foundry Co.
May 15, Morehead Patterson, President and, Chairman,
announced that the company proposed to issue and sell
to its common stockholders $11,000,000 of convertible

subordinate debentures

the basis

on

tures for each 25 shares of

writer—Union

Stockholders

Securities

are

Corp.,

of

$100 of deben¬

stock held.

common

New York.

to vote June 26

Under¬

Meeting-

was announced company plans $8,000,000 addifinancing during 1956. The type of securities to be
issued has not yet been determined.
Proceeds—For con¬
struction program.
Underwriter—For bonds, to be de¬
termined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.; Kuhn,
Loeb & Co.; Union Securities Corp.; The First Boston
Corp.; Harriman Ripley & Co. Inc.; Merrill Lynch,
Pierce, Fenner & Beane and Stone & Webster Securities
Corp. (jointly).

April 3 it
tional

approving financing

on

*

Central Illinois Light Co.

Chain Belt Co.

(6/11)

Underwriter—N one.

plans.

Western Securities Corp. of New Mexico
(letter of notification) 50,000 shares of common
Stock. Price—At par ($1 per share). Proceeds—To start

March 21 the directors authorized

May 7, L. B. McKnight, President, announced that the
company plans to offer 76,543 additional shares of its
capital stock (par $10) to its common stockholders in the

tures

ratio of

ceeds—For additions and

8, 1956; rights to expire

American Telephone & Telegraph Co.
a new issue of deben¬

/

Feb. 13

dealer

brokerage business.
Office—921 Sims Bldg.,
Albuquerque, N. M. Underwriter—None.
a

or

• White
Eagle International Oil, Inc. (5/23)
April 27 filed 1,156,250 shares of common stock (par 10
cents). Price—To be supplied by amendment. Proceeds
—To purchase properties of White Eagle Oil Co., and
for working capital. Office—Tulsa, Okla. Underwriter

—Paine, Webber, Jackson & Curtis, Boston, Mass., and
New York, N. Y.
White Sage Uranium Corp.

-

Feb. 13

(letter of notification) 15,000,000 shares of capi¬
Price—At par (one cent per share).
Proceeds
—For mining expenses.
Office—547 East 21st South St.,
Salt Lake City, Utah.
Underwriter—Empire Securities
Corp., Salt Lake City, Utah.
tal stock.

Williamson Co., Cincinnati,
Feb.

of notification) 20,666 shares of class B
stock (par $1) to be offered for subscription by

common

$6.84

common

share.

per

—3500

Maison

stockholders

on

a

Arizona Public Service Co.
March 23 it was announced company

ing

the

l-for-7 basis.

new

construction.

plans to spend dur¬
$94,000,000 for

estimated

Of this amount,

Blackstone Valley Gas

& Electric Co.
reported company plans to issue 25,000

was

shares preferred stock, probably in June 1956. Proceeds
—To reduce bank loans. Underwriter—To be determined

Price—

by competitive bidding.

Probable bidders: W. C. Langley & Co.; Estabrook & Co. and Stone & Webster Secu¬
rities Corp. (jointly); Salomon Bros. & Hutzler; Kidder,

Wilmington Country Club, Inc., Wilmington, Del.

Boston

April 25 it

tures, due 1991, to be offered

the members

to

of the

Edison Co.

(6/25)

(letter of notification) 3,000,000 shares of com¬
Price—At par (10 cents per share). Proceeds
bank loans, for drilling well and working
capital. Office—Winnsboro, Texas. Underwriters—J. J.
Holland Securities Co., Inc., New York, N. Y., and Dag¬
gett Securities, Inc., Newark, N. J.

Braniff

April 11

common

shares

Price—To

•

novelty items. Office—609 Equitable Bldg., Denver
2, Colo. Underwriter—Columbia Securities Co., Denver,

about June 5, 1956, of 1,105,545 additional
stock (par $2.50) on the basis of three

for

be

California

May
of

Colo.

shares of common
being offered to stockholders of record April 20,
the basis of

on

one

new

share for each share held;

construction.

Underwriter—None.

Woods Oil & Gas Co., New Orleans,

it

14

first

Orleans, La.
WPFH

Statement effective Feb. 28.

Broadcasting Co., Philadelphia, Pa.

April 24 (letter of notification) 150,000 shares of class A
stock.(par $1). Price—$1.87^ per share. Pro¬
ceeds—For working capital. Office—1425 Walnut Street,
Philadelphia 2, Pa.
Underwriters — Boenning & Co.;
Hallowell, Sulzberger & Co.; Woodcock, Hess & Co.,
Inc., and Suplee, Yeatman & Co., Inc., all of Philadel¬
common

phia, Pa.

'

\v

May 3 filed
—

To

&

Beane

and

Carolina
March 22 it

bonds

are

compaiiy

late

in

plans

1956,

if

able

and
con¬

Light Co.

(9/11)

announced company plans to issue and

bidders:

Securities Corp.; Blyth & Co., Inc.; Kidder, Peabody &
Co. and Merrill Lynch, Pierce, Fenner & Beane (jointly).
Bids—Scheduled for Sept.

11.

Quality Printing

P rospectuses
Public

R elations

Literature

.

Underwriter—Lazard

I nstitutional Pieces

Notes

and

Agreements

Proxy S

properties, and in exchange
Price—Shares

T

atements

I

ndenturcs

ANnual

Avenue-, Yardley, Pa. Under¬




Corp.

was

Natural

Consolidated
March 15 it

Gas

York.
Co.

(7/25)

announced company

plans to issue and
$30,000,000 of debentures due 1981. Underwriter—
determined by competitive bidding.
Probable
bidders: Halsey, Stuart & Co. Inc.; Morgan Stanley &
Co. and The First Boston Corp (jointly); White, Weld
& Co. and Paine, Webber, Jackson & Curtis (jointly).
Bids—Expected to be received on July 25.
was

sell

be

To

Consolidated Water Co.
Jan. 16, Frank A.

O'Neill, President, announced that the
sometime between now and the summer of
1956, will probably do some Additional financing. Pro¬
ceeds—For expansion.
Underwriters—The Milwaukee
Co.; Harley Haydon & Co., Inc.; and Indianapolis Bond
& Share Corp. underwrote class A common stock offer¬
ing made last August.
company

Consumers

April 7 it

was

Power

Co.

reported company plans to issue and sell

$30,000,000 of first mortgage bonds.
construction.

Underwriter—To

Proceeds—For new

be determined

by com¬
bidding.
Probable bidders: Halsey, Stuart &
Co. Inc.; Harriman Ripley & Co. Inc. and The First Bos¬
ton Corp. (jointly); Morgan Stanley & Co.; White, Weld
& Co. and Shields & Co. (jointly). Offering—Expected

petitive

in the Fall.

• Copeland Refrigeration Corp.
10 it was reported company plans to issue and
sell 100,000 shares of common stock. Proceeds—For ex¬
May

pansion program.

Underwriter—Baker, Simonds & Co.,

Detroit, Mich.
Crane

Co., Chicago, III.
Elliott, President, on March 18 stated in part: "To
meet the cost of present proposed capital expenditures,
it appears that some additional financing may be neces¬
sary." Underwriters—Morgan Stanley & Co. and Clark,
F. F.

Dodge & Co.

Bids will be received
New York

(5/22)

by the company at 140 Cedar St.,

6, N. Y., up to noon (EDT)

on

May 22 for the

purchase from it of $3,990,000 equipment trust certifi¬
cates, series N, to be dated May 15, 1956 and to mature
in 30 equal semi-annual instalments of $133,000 each
from Nov.

15, 1956 to and including May 15, 1971. Prob¬
Halsey, Stuart & Co. Inc.; Salomon Bros.

able bidders:
&

Hutzler; Kidder, Peabody & Co.

^ Denver & Rio Grande Western RR.

(5/29)

Established 1923
72 THAMES ST.. NEW YORK £

_

(MST)

May 29, at Room 201, Rio Grande Bldg., Denver

17,'

Colo., for the purchase from it of $2,820,000 equipment
July 1, 1956 and to mature

trust certificates to be dated

in

30

to

July

equal semi-annual instalments from Jan. 1. 1957
1, 1971, inclusive. Probable bidders: Halsey,

Inc.; Salomon Bros. & Hutzler.

-

Statements

hndic^^ress, Inc.

on

West College

tures.

on

Reports

ReGistration

the basis of one new share for each five shares held;
rights to expire on June 10, 1956. Price—At par ($25
per share). Proceeds — For outstanding note, pumping
station and reoayment of advances from developers.

Office—50

Oct. 2.

reported company plans early registra¬
$25,000,000 of junior subordinated deben¬
Underwriter — Kidder, Peabody & Co. and The

Stuart & Co.

2,000 shares of common
stockholders of record May 9

writer—None.

on

Credit

Bids will be received by the company up to noon

Yardley Water & Power Co.
to

ed to be received

Delaware, Lackawanna & Western RR.

For Finest

April 23 (letter of notification)

offered

offering

Halsey, Stuart & Co Inc.; Kuhn, Loeb &
Co. and A. C. Allyn & Co. Inc. (jointly); W. C. Langley
& Co. and The First Boston Corp. (jointly); Equitable

per share. Pro¬
ceeds—To acquire properties. Underwriter—None.

being

an

market

then favorable. Proceeds—For

$15,000,000 of first mortgage bonds due 1986. Under¬
writer—To be determined by competitive bidding. Prob¬

arbitrapr price of $4

stock

cor¬

sell

1,500,125 shares of common stock (par one
cent) to be offered only to the owners of percentages of
working interests in certain oil and gas leases and to the

•

general

Power Co.

announced

Power &
was

Nov. 10 filed

uranium

Proceeds—For

20.

issue and sell

$30,000,000 of debentures. Underwriter — To be deter¬
mined by competitive bidding. Probable bidders: Halsey,
Stuart & Co. Inc.; Morgan Stanley & Co. Bids—Expect¬

over¬

Peabody & Co. (jointly); Blyth
& Co., Inc.; The First Boston Corp. and Salomon Bros.
& Hutzler (jointly); Lehman Brothers; White, Weld &
Co.
[See also registration of 300,000 shares of common
stock in a preceding column of this issue.]

100,000 shares of common stock (par $1).
supplied by amendment. Proceeds—For

of certain

an

Kidder,

Wycotah Oil & Uranium, Inc., Denver, Colo.

owners

(with

program.

(5/23)

for such working interests and properties.
to be valued at an

held

Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Shields & Co.; Merrill Lynch, Pierce, Fenner

be

wooing capital and expansion.
Freres & Co., New York. —

shares

later.

Electric

was

*

.

Wyandotte Chemicals Corp.

five

Underwriter—F. Eberstadt & Co., New

mortgage

struction

La.

Aug. 29 filed 400,000 shares of common stock (par $1).
Price—$5 per share.
Proceeds—To retire outstanding
obligations. Underwriters—Woolfolk & Shober and How¬
ard, Weil, Labouisse, Fredricks & Co., both of New

each

named

other conditions

rights to expire on May 18, 1956. Price—At par ($25
per share). Proceeds—To repay short term loans and for

Price

shares of

porate purposes.
York.

and

"

on or

subscription privilege).; rights to, expire about June

Wing E-E, Inc., Denver, Colo.

-

Airways, Inc. (6/6)
authorized an offering to stockholders

company

of record

new

April 10 (letter of notification) 299,900 shares of common
stock (par 10 cents). Price—$1 per share. Proceeds—For
manufacturing expenses, selling and distributing of toys

1956

Columbia Gas System, Inc. (10/2)
15 it was announced company may

First Boston Corp., both of New

repay

March 27 (letter of notification) 5,300

an

Feb.

March 12 it

was

Underwriter—If by competitive bid¬
ding, bidders may include Lehman Brothers; The First
Boston Corp.; Harriman Ripley & Co. Inc.
Bids—Ex¬
pected up to noon (EDT) on June 25.
Registration—
Scheduled for May 22.

stock.

stock

announced

was

struction program.

Industries, Inc.

Woodbury Telephone Co., Woodbury, Conn.

Transmission

Corp., Houston, Texas
application has been filed
with the FPC for construction of a 565.7 mile pipeline
system to cost $68,251,000. Underwriters—May be Leh¬
man Brothers and Allen & Co., both of New York.
Feb. 29 it

Commercial

March 13

—To

Coastal

tion of about

Price—At par ($1,000 per debentures). Proceeds
—For construction of a golf house and other improve¬
ments. Underwriter—None.

(5/29)

Stuart & Co. Inc.; Salomon Bros. & Hutzler.

sey,

announced company plans to offer 180,000
shares of preferred stock (par $100). Proceeds—For con¬

Club.

mon

Chicago & North Western Ry.

,

May 29 at Room 1400, 400 West Madison St., Chicago
6, 111., for the purchase from it of $3,105,000 equipment
trust certificates to be dated June 15, 1956 and to mature
in 15 equal annual installments. Probable bidders: Hal¬

Peabody & Co.; Harriman Ripley & Co. Inc.

April 2 filed $1,500,000 of non-interest bearing deben¬

(Russell)

an

of about June

on

$41,000,000 is expected
and the balance from
financing is planned
for 1956. About $16,000,000 is expected to be spent this
year.
Bond financing is expected to be done privately
through Blyth & Co., Inc. and The First Boston Corp.

'

Wilson

years

as

on or

Bids will be received by the company up to noon (CDT)

to come from within the company,
outside sources.
No new equity

Proceeds—For working capital. Office
Road, Cincinnati, Ohio.
Underwriter—

None.

five

next

share for each share held

one

about June 25. Price—To
be named later. Proceeds—For working capital. Under¬
writers—Morgan Stanley & Co., New York; and Robert
W. Baird & Co., Inc., Milwaukee, Wis. ^Registration—>*
Expected in near future.
;
'
i
•

time after the middle of June.

April 30 it

(letfer

20

class B

Ohio

(non-convertible) amounting to $250,000,000. Pro¬
improvements to Bell System
telephone service. Underwriter — To be determined by
competitive bidding. Probable bidders: The First Bos¬
ton Corp. and Halsey, Stuart & Co. Inc. (jointly); Mor¬
gan Stanley & Co. Bids—Expected to be received some¬

71 CLINTON ST.. NEWARK. N. J.

Leaders in Financial Printing Since 1923

•

Detroit

Edison Co.

Feb. 20, Walker L.
tive plans are that
from

investors

in

Cisler, President stated that "tenta¬
about $60,000,000 will be obtained

1956.

Internal

funds

and

bank

bor¬

rowings will probably provide for the remainder of the
$95,000,000 necessary this year to carry forward the com¬
pany's program of expansion of facilities." Financing
may be in form of 15-year debentures to common stock-

Continued

on

page

58

58

(2406)

The Commercial and Financial Chronicle

Continued

from

if Household Finance Corp.

57

page

May 10 it
holders. Underwriters—None.

Offering—Tentatively

ex¬

pected in October.
it

15

Intends at
to

announced

was

that

Foremost

Dairies,

Inc.

future date to give its stockholders the right

a

its

purchase

Dolly

Madison

Underwriter—

stock.

Allen & Co., New York.
Du

Broadcasting Corp.
Aug. 10 it was announced that corporation, following is¬
Dec.

on

2

to stockholders

of Allen

B.

Du

Mont

(6/6)

about

$50,000,000

debentures with

of

loans.

bank

Houston Texas Gas

FPC

an

for

,,

Illinois

& Co. handled Du Moat Laboratories

mined

class A stock fi¬

Stockholders of Laboratories
Oct 10 approved formation of Broadcasting firm.

on

some

Eastern

May 7 it

years

ago.

Shopping Centers, Inc.
announced this company has been formed

was

to locate
and
develop
Mississippi, the funds to

shopping

centers

of

east

and

for

construction.

Underwriter—To be deter¬

by competitive bidding. Probable bidders: Halsey,
Co. Inc.; The First Boston Corp.; White, Weld
& Co. and .Merrill Lynch, Pierce,
Fenner & Beane
(jointly); Harriman, Ripley & Co. Inc. and Glore, For¬
gan & Co. (jointly); Union Securities Corp.
Stuart &

Inland

the

Steel

W.

—Kuhn, Loeb & Co., New York.

Grand

to

offered to Grand

Co.

and

the

Union stockholders.

balance

to

Office—East

be

Pat¬

Underwriters—Morgan Stanley & Co. and
Hutton handled new financing by Grand Union

E.

Co.

Union

offering «f stock,

in

1954.

Jersey Central Power & Light Co.

Elizabethtown

Water Co. Consolidated
(7/10)
applied to the New Jeresy Board of P. U.
Commissioners for Authority to issue and sell $7,500,000
of 30-year debentures maturing July 1, 1986.
Proceeds

May 9

company

—For construction program. Underwriter—To be deter¬
mined by competitive bidding.
Probable bidders: Hal-

Stuart & Co. Inc.; The First Boston Corp.; Kuhn,
Bids—Scheduled for July 10.

sey,

Loeb & Co.

First

National

San

Trust

&

Savings

held

of

as

April

25

(following

Co., Inc., William R. Staats
First

it

(par $10)
shares

payment

of

a

June
To

&

Co.

and

Dewar

&

Co.,

22.

Banking & Trust Co.

announced Bank plans to offer to its
202,800 additional shares of capital stock

the

on

basis

Price

—

of

about

or

To

increase capital

be

one

share

new

May

for

28; rights to

established later.

each

10

expire

on

Proceeds

—

and

surplus. Underwriters—Drexel
& Co.,
Philadelphia, Pa., and Merrill Lynch, Pierce, Fen.
&

ner

Beane

and Smith, Barney &
Co., both of New
Meeting—Stockholders will vote May 28 on
increasing authorized capital stock from 2,028,000 shares
to 2,230,800 shares.

York City.

Florida
Feb. 20 it

Power Corp.

was

$20,000,000 of first mortgage bonds.

Underwriters—To

bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co. and
Merrill Lynch, Pierce, Fenner & Beane
(jointly); Leh¬
man
Brothers and Blyth &
Co., Inc. (jointly); Glore,
Forgan & Co.; The First Boston Corp.; Union Securities
Corp. and Harriman Ripley & Co. Inc. (jointly). Bids—
Expected July 11. Registration—Planned for June 14.
General Acceptance Corp.
2 it was reported company

April

$15,000,000

of

debentures

plans

due

in

to

issue

and

1966,

$10,000,000
of capital debentures due in 1971
and about
$3,500,000
of common stock.
Underwriters—Paine, Webber, Jack¬
son
& Curtis and Union Securities
Corp. Registration
—Expected

late

in

Mav.

General Contract
Corp., St.

Louis, Mo.

was announced that
company plans $5,000,000
additional financing in near future.
Proceeds—To go to
Securities Investment
Co., a subsidiary. Underwriter—
G. H. Walker &
Co., St.

pos¬

for

new

issue of

common

will be offered

common, stockholders before
April,
Proceeds—To repay bank
loans, etc., and for con¬

Corp.

reported

was

an offering is expected in May
approximately 30,000 shares of common stock. Under¬

of

writer—Paine, Webber, Jackson & Curtis, Boston and
Kansas

City Power & Light Co.

April

24 stockholders approved a proposal
increasing
bonded indebtedness of the
company by $20,000,000. Un¬
derwriter
To be determined
—

Probable bidders:

Halsey,

by competitive bidding.
Stuart & Co. Inc.; The First

Boston

Corp. and Blyth & Co., Inc. (jointly); Equitable
Securities Corp.; White, Weld & Co. and Shields & Co.
(jointly); Kuhn, Loeb & Co., Salomon Bros. & Hutzler
and

Union Securities Corp.
(jointly); Lehman Brothers
Bear, Stearns & Co. (jointly). Amount and timing

and

has

not

half of

yet been determined

was

&

stock

l-for-10

basis.
New York.

to

common

Underwriter—The

stockholders
First

Boston

on

was

announced

that

a

Corp.,

m.

.j

Kimberly-Clark Corp., Neenah, Wis.
the

company plans fur¬
ther financing, the nature and extent of
which has not
yet been determined, except it is not the
present inten¬

tion

to sell additional common stock.
Proceeds—To be
used to pay for further
expansion, estimated to cost an

additional
New

$37,000,000.

York.

Underwriter—Blyth & Co., Inc.,

shares and the
from 350,000

to

increase

2,500,000 from 1,750,000
authorized preference stock to
1,000,000

shares; also

debentures may include

a

a

proposal that any issue of
convert into com¬

privilege to

stock and permit the
company to issue warrants to
common
stock, provided the total that may be

purchase

outstanding at

any

one

shares.

time

does

not

exceed

600,000

[The company expects to issue
23,000 additional
preference shares—5,000 for
acquiring stock and prop¬
erty and 18,000 for cash.
Having completed

borrowing

negotiations of $30,000,000 from
companies, the company expects to sell not
$15,000,000 in debentures.]

body & Co., New York.
Giannini

long-term

insurance
more

than

Underwriter—Kidder,

Pea-

Proceeds—For

(par $20).

working capital.
Underwriters—G. H
Co., New York, N. Y., and Hill, Richards &
Co., Los Angeles, Calif.
Walker &




Underwriter—To be determined by competitive
bidding.
bidders: Shields & Co., Halsey, Stuart & Co.

Inc. and Savara & Hart
(jointly); Lehman Brothers;
White, Weld & Co., Blyth & Co., Inc. and Union Securi¬
ties Corp.
(jointly); Kuhn, Loeb & Co., Glore, Forgari
& Co. and Salomon Bros. & Hutzler
(jointly).
V

National Steel Corp.
12 the company announced

March
that

sell

Natural

Star Steel

Co.

24, E. B. Germany, President, announced that the
company plans the private and public sale of new secu¬
rities during the first half of the current
year. Proceeds

—To retire

$77,745,000 indebtedness of company held by
and the Treasury Department. Underwriters—
Probably Dallas Rupe & Son; Estabrook &.
Co.; and

the RFC

Straus & Blosser.

it

was

Fall

reported

company

plans to

issue

and

Probable

—

To be determined by
competitive

bidders:

Halsey, Stuart & Co. Jnc.|
Langley & Co.; Blyth & Co., Inc. and The First
Corp. (jointly); Blair & Co., Incorporated and
Baxter, Williams & Co. (jointly); Smith,
Barney & Co.
Metropolitan Edison Co.
C.

Boston

Feb.
the

6

sale

year,

it

was

of

reported that company is considering
additional first mortgage bonds later this

(probably about

$5,000,000 — in June or July).
Underwriter—To be determined by competitive
bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; White, Weld
& Co.; Blyth &
Co., Inc.; Kidder, Peabody & Co. and
Drexel & Co.
(jointly); The First Boston Corp.

Metropolitan Edison
April 16 it

was

Co.

Line Co. of America

Underwriter—If

New

Jan.

England Electric System

3

it

announced

was

reported company may issue in June

July, depending upon market conditions, about
$5,000,000 of preferred stock (in addition to about
$5,000,000 of bonds).
Underwriter
For preferred stock also
—

to be determined

plans to

company

merge

its

subsidiaries, Essex County Electric Co., Lowell Electric
Light Corp., Lawrence Electric Co., Haverhill Electric
Co. and Amesbury Electric Light Co., into one
company
during 1956.

This

would

followed

be

by

a

$20,000,000

first mortgage bond issue by the resultant
company, the
of which has not as yet been determined. Under¬

name

writer

May be determined by competitive bidding.f

—

Probable bidders: Halsey, Stuart & Co. Inc.;
Kuhn, Loeb
& Co., Salomon Bros. & Hutzler, Union Securities

Corp.
Wood, Struthers & Co. (jointly); Lehman Brothers;

and

The First Boston Corp.; Equitable Securities Corp.; Mer¬
rill Lynch, Pierce, Fenner & Beane, Kidder, Peabody &

England

Jan. 3 it

(jointly),

Power Co.

announced company

plans to issue and sell
during October
competi¬
tive -bidding.
Probable bidders:
Halsey, Stuart & Co.
Inc.; Kuhn, Loeb & Co., Salomon Bros. & Hutzler, Unioq
Securities Corp. and Wood, Struthers & Co. (jointly);
was

$10,000,000

of

1956.

first

of

mortgage

Underwriters—To

bonds

be determined by

Lehman

Brothers; The First Boston Corp.; Equitable Se¬
Corp.; Merrill Lynch, Pierce, Fenner & Beane,
.Kidder, Peabody & Co. and White, Weld & Co. (jointly).
curities

Northern Indiana Public Service Co.
March 13 it

was

reported company plans to spend about

construction in 1956 and 1957 ($29,in 1957). Of the total
about $30,000,000 will be obtained from new financing,
the type of which has not yet been determined. Under¬
writer—For any preferred stock. Central Republic Co.
new

and $23,000,000

1956

Myth & Co., Inc., and Merrill Lynch, Pierce,

Fen¬
Bonds may be placed privately.

& Beane (jointly).

Northern

^2

Natural

Gas

Co.

reported company plans to finance its
1956 bdnstruction program
(costing about $40,000,000)
through issuance of debt securities and treasury funds.
Underwriter—Probably Blyth & Co., Inc.
it

was

Northern
Jan. 19 it

this

later

States

was

Co.

Power

(Minn.)

announced company plans to issue and sell

year

$20,000,000 of first mortgage bonds due

1986.

Proceeds—For construction program. Underwriter

—To

be

determined

competitive

by

by competitive bidding.

The First Boston Corp.
Fenner

bidding.

Probable

Probable bid¬

Smith, Barney & Co. and Goldman, Sachs & Co.

(jointly),; Merrill Lynch, Pierce,

&

Beane, Kidder, Peabody & Co. and White,
Weld & Co. (jointly); Equitable Securities Corp. and
Union Securities Corp. (jointly); Smith, Barney & Co.;
Lehman Brothers and Riter & Co. (jointly); and Glore,

Forgan & Co.

(Kingdom of)
announced

Norway
April 17 it

was

a

be filed next week covering a

registration statement will
proposed issue of $10,000,-

000 to

$15,000,000 of 15-year bonds. Price—To be named
later. Proceeds—Together with $15,000,000 to $20,000,000
of borrowings from the World Bank, for construction
of a large hvdro electric power plant.
Underwriters—
Kuhn, Loeb & Co.; Harriman Ripley & Co. Inc.; Lazard
Freres &

Co., and Smith, Barney & Co. and associates.

Oklahoma

or

ders:

Pipe

reported company plans to issue and sell

bidders; Halsey Stuart & Co. Inc.; Blyth & Co., Inc. and

$20,000,000 to $25,000,000 first mortgage

bonds. Underwriter

bidding.

Gas

was

Spring $35,000,000 of first mortgage bonds due
determined by competitive bid¬
ding, the following may bid: Halsey, Stuart & Co. Inc.;
White, Weld & Co.; Lehman Brothers and Union Secu¬
rities Corp. (jointly).
1976.

March

W.

&

late this

York.

14

Loeb

Feb. 20 it

ner

Jan.

completed in mid-1959 will

$200,000,000. Underwriters—
Co.; Harriman Ripley & Co. Inc.; and
The First Boston Corp.

IncJ

and commercial aggregates plant on Picton
Ont., Canada, expected to cost about $16,800,000.
Underwriter—Probably Kidder, Peabody & Co., New

next

that it is estimated
construction expenditures planned to start in

total

the current year and to be
amount to a minimum of

Bay,

sell

was

Probable

facturing

(G. M.)

& Co., Inc.,
Pasadena, Calif.
April 11 it was reported company
plans to issue and sell
100,000 shares of convertible preferred stock

of

000,000/in

plans to
publicly $9,500,000 to $10,000,000 of new
Proceeds—To finance cost of a cement manu¬

and

April
proposal

Transportation Commission
reported early registration is expected
$11,500,000 of sinking fund debentures due 1976.

April 23 it

$52,000,000 for

if Lake Ontario Portland Cement Co., Ltd.
May 7 it was announced that this company
issue

fund

Stuart & Co. Inc.; The First Boston Corp,; Harri-"
Ripley & Co. Inc. (2) For preferred stock—The
Boston Corp.; Harriman Ripley & Co. Inc.

New

Long Island Lighting Co.
a

sey,
man

First

Light Co.

reported company may soon offer addi¬

common

Nov. 22 it

Summer

Co. and White, Weld & Co.

Power

March 21 it
tional

(probably not until first

1957).

program.

General Tire & Rubber Co.
Feb._ 24 stockholders
approved
authorized common stock to

mon

stock

subscription by

1957.

struction

Corp.

Kaman Aircraft

April 16 it

and

$10,000,000 of first mortgage pipe
bonds due 1976 and 150,000 shares
stock (par $100). Proceeds—For expansion
program.
Underwriters—To be determined by comr
petitive bidding. Probable bidders:;! 1) For oonus—nai-

Kuhn,

New York.

Lone

General

Public Utilities
Corp.
April 2, A. F. Tegen, President, said that the
company
plans this year to issue and sell
$28,500,000 of new bonds
and $14,000,000 of new
preferred stock.
It is also
a

(jointly); Blair

it was reported that company is
studying
financing plans for its new major expansion program to
involve approximately $113,000,000. Terms have not
yet
been agreed upon. Underwriter—The First Boston
Corp.,

Louis, Mo.

sible that

Steel

securities.

April 18 it

sinking

30

Kansas

plans to issue and sell

be determined by
competitive

sell

Merrill Lynch, Pierce, Fenner & Beane
& Co. Incorporated.

(7/11)

announced company

this

issue

of preferred

—

(6/7)

was

on

held

reported company may in July 1956,
$9,000,000 first mortgage bonds, Under¬
writer
To be determined
by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Lehman
Brothers; White, Weld & Co.; Kidder, Peabody & Co.;
Union Securities Corp., Salomon Bros. & Hutzler and
was

sell

New York.

Pennsylvania

March 27

it

Kaiser

Diego, Calif.

stockholders

and

March

100% stock dividend); rights to expire on May 18.
Price—$31 per share. Proceeds—To increase capital and
surplus.
Underwriters—Dean Witter & Co., Blyth &
all of San

6

Bank,

Diego, Calif.

April 27 this Bank offered to its stockholders the right
to subscribe for 43,200 additional shares of
capital stock
(par $10) on the basis of one new share for each 10
shares

Feb.

issue

sell

line

~

to

Montreal

terson, N. J.

one-third

an

*

Co.

April 26, Joseph L. Block, President, disclosed company
will seek additional financing through sale of equity
stock (the method and amount has not yet been deter¬
mined). Proceeds—For expansion program. Underwriter

from

come

if Michigan, Wisconsin Pipe Line Co.
May 14 it was reported company plans

Co.

was

new

struction program.
Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Morgan Stanley & Co.-

,

reported company may issue about $25,000,000 of debt securities. Proceeds—To repay bank loans

Power

March 1 it

(jointly); The First

Corp.

Michigan Bell Telephone Co.
April 19 company applied to the Michigan P. S. Com¬
mission for permission to issue and sell
$30,000,000 of
40-year debentures later this year. Proceeds—For con¬

Oil

&

announced

was

the

Laboratories, Inc. of 944,422 shares of common stock af
a dividend, contemplates that additional shares will be
offered to its stockholders.
This offering will be un¬
derwritten. Kuhn, Loeb & Co. and Van Alstyne, Noel
nancing

Boston

Corp., Houston, Texas
application has been filed
permission to construct a 961 mile
pipeline system to cost $105,836,000. Underwriters—May
be Blyth & Co., Inc., San Francisco, Calif.; and Scharff
& Jones, Inc., New Orleans, La.
'
Feb. 29 it

Thursday, May 17, 1956

Peabody & Co. and Drexel & Co.

Lee

—

.

Co.

SEC.

the

Underwriters

.

(jointly); Salomon Bros. & Hutzler; Harriman Ripley &
Inc. and Union Securities Corp.,
(jointly); Kidder,

announced company plans early registra¬

was

Higginson Corp., White, Weld & Co. and William Blair
& Co.
Registration—Expected today (May 17).

with

Mont

suance

of

Proceeds—To reduce

Dolly Macuson International Foods Ltd.
Nov.

tion

.

April 20 it

Gas

was

&

Electric

Co.

announced that stockholders will vote

the authorized preferred stock
shares to 500,000 shares and the authorized
to 5,000,000 shares.
Underwriters
(1) For any common stock (probably

May

17

on

increasing

from 240,000
common

stock from 3.681,000 shares
—

first

to

stockholders)

—

Merrill Lynch, Pierce, Fenner

Volume 183

Number 5534

..

.

The Commercial and Financial Chronicle

& Beane. (2) For preferred stock, to be determined by
competitive bidding. Probable bidders: Merrill Lynch,
Pierce, Fenner & Beane and White, Weld & Co. (jointly);
The

First Boston

Co.,

Inc.

over
$1,000,000. Proceeds—For expansion. Underwriters
—Smith, Barney & Co., New York, and William R.

Staats

Corp.; Lehman Brothers and Blyth &
(jointly); Smith, Barney & Co.; Kuhn, Loeb
& Co.; Harriman Ripley & Co. Inc.
1

Pacific Northwest Pipeline Corp.
20 C. R. Williams, President,

about

280,000 shares of
in

sold

connection

entered

common

with

which

contracts

into at the

time of the original financing
Price—$10 per share. Proceeds—To¬
gether with funds from private sale of $35,000,000 addi¬
were

in

April of 1955.

tional

first

V

soon.

March

(7/11)

Probable

be

determined

bidders:

Lehman

by

competitive

Brothers,

Union

Corp., Bear, Stearns & Co. and Dean
(jointly); Kidder, Peabody & Co.
Pan

April

Cuba

Oil & Metals Corp.

9, Walter E.

SEC preparatory

place

to

Securities
&

Co.

(Del.)

19 it

of

The

financing represents one of
largest offerings of underwrit¬

ten corporate debt securities with¬

Feb.

18

debentures

will be the

only outstanding longterm debt of the
company. Capi¬
talization

effect

of

the company, giving

this

to

sale, will consist of
the $300,000,000 of new debentures
and 86,917,724 shares of common
stock, having an aggregate book
value of almost
,

General

proceeds

of

tirement
term

$1,100,000,000.

Electric

the

of

will

sale

use

for

the

outstanding

the
re¬

short-

borrowings, for the replen¬

ishment

of

company's

funds

post

and

program

cilities.

the

the

expansion

the

continuing

replacement

of plant

At

in

war

for

improvement,
expansion

1

spent

and

and other fa¬

end

of

1955

the

it

expansion
This

as

rearrangements, expan¬
improvements of exist¬
ing facilities.
sions and

Expenditures aggregating about
$185,000,000 are planned for 1956.
New plants under construction in¬
of

those

for

electrical

home

ment,
power

manufacture

equipment,

heating and cooling equip¬
distribution
transformers,
rectifier equipment, capac¬

itors, and
equipment.
A

the

control

room

air-conditioning

de¬

new

bentures provides for annual pay¬
1961

of

to

effect

$13,000,000 in each
1975

the

maturity.
tion

be

any

and

is

year

designed

to

retirement of approxi¬

mately 65%

sidiaries had spent approximately
$1,200,000,000 since the end of

rata

pro

basis

of the issue

At

the

annual

increased

by

prior to

company's
instalment
up

(with

Virginia Electric & Power Co. (9/25)
was announced company plans to issue and sell

refunding mortgage bonds.
competitive bidding.
Halsey, Stuart & Co. Inc.; Kuhn, Loeb
& Co., American Securities Corp. and Wertheim & Co.
(jointly); Salomon Bros. & Hutzler; Stone & Webster
Securities Corp.; White, Weld & Co.; Union Securities
$20,000,000

late

in

June.

100.41%

to

Underwriter—

to

Corp.
Vita

an

op¬

may

addi¬

and

Bids—To be opened

on

Sept. 25.

Food

Products, Inc., New York
April 23 it was reported early registration is expected
of 60,000 shares of common stock
Proceeds—To selling
stockholders.
Underwriter—Granbery, Marache & Co.,
New York.

Sinking fund

Some Hard Sense About

prices

range
from
principal amount.

the

first

Probable bidders:

(10/1)

$13,000,000.

redemption

of

Underwriter—To be determined by

was

tional

Registration—Ex¬
Offering—Tentatively planned for

Feb. 6 it

an

Underwriter—None.

General Electric, which was in¬

corporated

in

the

and

largest

1892,

has
of

one

Interest Rates

become
the

most

diversified producers of electrical

products.
zation
ness

is

decentralized.
carried

product

on

departments

busi¬

Its

through 95
combined

four

manufacturing groups,
Apparatus Group; Con¬
sumer Products Group; Electronic,
Atomic
and
Defense
Systems
Group, Industrial Components and
Materials Group, and a Distribu¬
tion Group. In addition to civilian
production General Electric has
namely,

for years been an important man¬
ufacturer of military products for

the U.

S.

Government. The

com¬

has always placed great
phasis on research.
pany

In

1955

the

five

year

consolidated

period

net

em¬

sales billed

billed of the company and its con¬
solidated subsidiaries for the first
000

of 1956 totaled $942,352,

compared

with

depends

more

$826,235,000
First

quarter consolidated

than

confidence in the value of the dollar.
Rates can be held down by balancing the federal
budget, easing income tax rates, letting borrowers
experience difficulties in raising funds when credit
demands
surge beyond availabilities of savings
flows and normal growth, and inducing people to
rely more on their own money and less on the other
anything

on

fellow's.
"If the

saver

can

trust

the future

value of the

he is lending he will be satisfied with a mod¬
erate return. If he loses faith, as experiences with
extreme inflation teach, he will demand exorbitant
money

rates—or denude the market of loan funds

1951-

increased from
$2,618,578,000 to
$3,442,525,000.
Net
earnings
in
1955 were $197,613,000. Net sales

quarter

"The future of interest rates

The company's organi¬

is

for the first quarter of 1955.

sinking fund for the

ments

a

Oct.

earnings,
involved
construction
or
acquisition of more than 50
new
plants and laboratories as

company and its consolidated sub¬




its

improvement program.

clude

on

stock

and Carl M. Loeb,

June 20.

reported company may issue and sell
1, $10,000,000 of first mortgage bonds. Pro¬
ceeds—-For construction program.
Underwriter—To be
determined at competitive
bidding.
Probable bidders:
around

program, financed in large part
from depreciation and amortiza¬
tion provisions and from retained

well

pected about June 1.

Straus, Blosser & McDowell, Chicago, 111.
sell some additional stock
(probably at the end of May),

into

and

cago, 111., and The First Boston Corp.
Rhoades & Co., both of New York.

Co.

privilege).

common

additional shares on the basis of one
shares to be held. Continental

share for each two

Casualty Co., which owns 51% of the presently outstand¬
ing stock will reduce its holdings and Continental Assur¬
ance Co.,
which owns about 24% would sell shares to
stockholders.
Underwriters—William Blair & Co., Chi¬

★ Super-Crete, Ltd., Boniface, Manitoba, Canada
14 it was reported company plans sale of 255,000

yield about 3.47% to maturity.

beginning May 1, 1956, decreas¬
ing to the principal amount on
May 1, 1974.

new

May

A

if redeemed during the 12 months

value to about 1,100,000 shares of $2 par value, in
a two-for-one stock split, provide for pay¬
ment of a 100% stock dividend and the sale to stock¬

(6/6)

stock

common

Tampa Electric Co.

on

Co.

.

order to effect

was announced company is
considering is¬
sale to stockholders later this
year of some

and

nation-wide underwriting
group managed jointly by Morgan
.Stanley & Co., and Goldman, Sachs & Co., and
comprising 297
investment firms on May 15 placed on the
market $300,000,000 of
General Electric Co.
20-year 3xk% debentures due May 1, 1976.
This offering was.
quickly oversubscribed and the books closed.
;The debentures were priced at 100 y2%* and accrued interest to

II

;

„

United States Life Insurance Co. of N. Y. (6/20)

California

are

Morgan Slanley-Goldmsn, Sachs Group Sells
$380*060,800 General Electric Debentures

War

;

holders of 100,000

shares

,

and Shields &

& Co.

White, Weld

Fenner & Beane.

oversubscription

finance

Halsey, Stuart & Co. Inc.; Lehman
Stearns & Co. (jointly); Blyth &

Bear,

par

additional

to
additional stock
(probably at the end of May),
sufficient to increase capitalization from
$650,000 to well

World

of

and

by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; The First
Corp.; White, Weld & Co.; Merrill Lynch, Pierce,

Southern Union Gas

some

initial optional redemption
been fixed at 105.50%

Co.

bidders:

Brothers

determined

suance

★ (J- B.) Rea Co., Inc., Santa Monica, Calif.
May 8 it was announced corporation plans soon

has

Gas

(Missouri)

April 12 it was announced stockholders would vote May
14 on changing the capital stock from 250,000 shares of $4

April

the time of sale

Proceeds—To help

Counties

Probable

Corp.;
(jointly).

expected to be received by this company up to
(EDT) on June 6 for the purchase from it of $9,660,000 equipment trust certificates, series TT, to be
dated May 1, 1956 and to mature
annually from May 1,
1957 to 1971, inclusive. Probable bidders:
Halsey, Stuart
& Co. Inc.; Salomon Bros. & Hutzler.

(jointly).

The

i

■">

Electric Co.

Boston

noon

—

years.

''

Line Corp.

reported company may in the Fall offer
$15,000,000 of first mortgage bonds. Underwriter—To be

Bids

by competitive bidding;
probable bidders include Halsey, Stuart & Co.
Inc.; The
First Boston Corp.;
Kuhn, Loeb & Co., and Lehman
Brothers (jointly); Morgan
Stanley & Co. and Drexel &

recent

'

stock

Co., Inc. and Union Securities Corp. (jointly); The First

was

Southern Pacific Co.

construction program. Underwriters—For
any debenture
bonds
may be determined

in

common

April 23 it was announced company plans to issue and
sell prior to Sept. 14, 1956, $35,000,000 to $40,000,009
first mortgage and collateral trust bonds.
Proceeds—
To repay
bank loans and for construction program.
Underwriter—To be determined by competitive bidding.

Electric & Gas Co.

Boston

April 16, Lyle McDonald, Chairman, estimated that re¬
quirements for new capital this year will be approxi¬
mately $80,000,000 to $85,000,000. The types and amounts

the

'•

**

Union

money

Southern

Jan. 30 it

Public Service Electric & Gas Co.

The

authorized

V

loan..

The company proposes to obtain a part
requirements from the sale of $5,of preferred stock and the balance from the
sale of $5,000,000 principal amount of bonds.

new

private

pected sometime in June.

price

outstanding

Underwriter-p-Kidder, Peabody & Co., New York.

White, Weld & Co.; The First Boston Corp. and Coffin
& Burr, Inc.
(jointly); Lehman Brothers. Bids —Ex¬

sell

preferred stock

80,500 shares of
(par $50) first in ex¬

a

000,000

Corp.;

determined.

in

its

of

pay

Co.

the

April 17, Tom P. Walker, President, announced that ne¬
gotiations had been completed for the sale of $40,000,000
first mortgage pipe line bonds in May and $20,000,000 of
debentures in November. May be placed privately. Pro¬
ceeds—To retire presently outstanding $60,000,000 bank

common

and

t tion
program.

cost, in part, of construction program. Underwriter—To
be determined by competitive
bidding. Probable bidders:
Halsey, Stuart & Co., Inc.; Kidder, Peabody & Co. and
Blyth & Co. Inc. (jointly); Equitable Securities

been

basis

9, S. C. McMeekin, President, announced that it
expected that $10,000,000 of new money will be re¬
quired in connection with the company's 1956 construc¬

.

not

stock to its

is

Public Service Co. of New
Hampshire
Feb. 25, it was reported
company plans to issue and sell
$8,000,000 of first mortgage bonds. Proceeds — To

have

is planning to offer

company
common

l-for-10

a

March

Pittsburgh Rys. Co.
May 4 it was announced that Standard Gas & Electric
Co. will offer to its stockholders
rights to subscribe for
540,651.75 shares of Pittsburgh Rys. Co. Price—About
$6
per share.

be issued and

on

South Carolina

registration statement with the
equity offering planned to. take

securities to

increased

19

Transcontinental Gas Pipe

'

this year. Business—To
explore, drill and
oil, gas and mineral properties in the United
States, Cuba and Canada. Office—120 Broadway, New
York, N. Y.

new

was announced

cumulative

tion"

later

of the

Corp.

Power Co.

callable at 115).

operate

•

April

on

6% preferred stock (which is
(See also under "Securities in Registra¬
preceding column.) Underwriters — May be
Stone & Webster Securities. Corp. and Dean Witter &
Co. if exemption from competitive
bidding is obtained.

bidding.

Witter

Pacific

change for

a

an

Corp.

reported company may issue and sell some
additional common stock later this year. Stockholders
was

York.

Sierra

new

Seibert, President, announced that

company will soon file

Thiokol Chemical

April 9 it

writer—The First Boston

62,576 additional shares of

stockholders
(with a 16; or 18 ' day
standby). Price—To be set by board of directors. Under¬
To

Corp.

announced

was

stockholders

common

—

Electric

on

April 12 it

May 8 it was reported company plans to offer around
July 11 about 300,000 additional shares of common stock

writers

&

by 500,000 shares to 1,000,000 shares. Proceeds—For ex¬
pansion. Underwriter—Probably Lehman Brothers, New

;

its

—

•

* Pacific Power & Light Co.

to

it

Co.

Transmission

10,

stockholders will vote May
approving a proposal to increase the authorized
preferred stock by 100,000 shares (par $100), of which
it is planned to issue 50,000 shares later in 1956. Under¬
16

-

21

Gas

Gardiner Symonds, President, announced that
company plans to sell about $30,000,000 of debentures
in July, and about $50,000,000 of mortgage bonds late in
the third quarter or early in the fourth quarter of 1956.
Proceeds
For expansion
program.
UnderwritersStone & Webster Securities Corp., White, Weld & Co.
and Halsey, Stuart & Co. Inc.
•

Rochester Gas

mortgage

Tennessee

May

noon

Bros. & Hutzler.

bonds, and $10,000,000 of 5.6%
interim notes and borrowings from banks, will be used
to construction program.
Underwriters—White, Weld &
Co.; Kidder* Peabody & Co.; The Dominion Securities
Corp.; and Union Securities Corp. Registration — Ex¬
pected

to

(EDT)
on May 24, at Room
423, Reading Terminal, Philadelphia
7, Pa., for the purchase from it of $6,600,000 equipment
trust certificates, series Y, to be dated
May 15, 1956 and
to mature in 30
semi-annual instalments of $220,000
each from Nov. 15, 1956 to and
including May 15, 1971.
Probable bidders: Haisey, Stuart & Co.
Inc.; Salomon

stock (par $1) are to be

subscription

•

(5/24)

Bids will be received by the
company up

that

announced

Halsey, Stuart & Co. Inc.; Stone & Webster Securities
Corp.; Goldman, Sachs & Co.; Kidder, Peabody & Co.

.(

Co., Los Angeles, Calif.

Reading Co.

\

March

&

59

(2407)

by flee¬

ing to equities.
"The

discount

rate

advances,

and

increases

in

rates

charged on borrowings and paid on savings,
invite people to trust the dollar.
The logical next
step, to energize the supply of savings for invest¬
ment, is to check government expenditures so that
the

public debt and income taxes
City Bank.

can

be reduced."

—First National

pet earnings
$52,997,000 compared with
$50,756,000 for the corresponding

were

By all

means,

let's take that next step!

period of 1955.
General

Electric

at the

present

time has 153 separate manufactur¬

ing plants located in 115 cities
the United States and Canada.

id

Joins

Pressprich Staff

(Special to The Financial Chronicle)

BOSTON,
Tague

—
Philip
G.
the staff of R.

Mass.

has joined

W.

Pressprich

Street.

Mr.

&

Co., 75 Federal

Tague

was

formerly

with F- s- Moseley & Co. and Lee
Higginson

Corporation.

The Commercial and Financial

(2408)

60

Fund

1, 1956 the discount
Capital
Venture

dealers

is

Fund

Thursday, May 17, 1956

.

.

reduced

6%

to

Quarterly liiveslmenf'

"ChfoiiicS6V

on

than the temporary 7%

rather

which has

in effect.

been

.

Charge Cut

As of May
to

Chronicle

Company Survey to Appear in

By ROBERT R. RICH
•

Are You

Ii^erested in

Fund Assets Gain for
of

Assets

BALANCED

nation's

the

mutual

funds

May 24 Issue

April

a

slightly

rose

INVESTMENT

March, and $6,602,310,000

objective of this profes¬
sionally managed investment
fund is to provide an invest¬
ment for you from an
ownership
interest, in a balanced invest¬

$95,799,000 in the

information

on

Series

from your

Bal¬

be obtained'
investment dealer or:

April,

Broadway, New York 5,

New York

through
ATOMIC

AtDmic

a

Development Securities Co., Inc.

1033 THIRTIETH STREET, N. W., WASHINGTON 7, 0.

Dept. C

Tel.

C.

FEderal 3-1000

net

value

asset

reached

on

Corp.,

adjusting for

were

in

as

the

in

six

12 cents
the

first

a

In

10 cents

share—the

ing

months

1956

20,

to

&

61%

in

share¬

materials, 8%
capital goods

1956.

rable

in
or

,

offering

Research

National

sales

of

comparing the stocks of

Corp.

consumers'

either

of

only

fund

of

of

common

du¬

must

currently a
balanced
preferred ,and
stocks, but its portfolio
balanced

be

agreement

are

not

be

less

than

clear Fund for its first 12 months

bonds,

or

ended April

ferred

stocks

30, 1956, amounted to

in

$1,177,939.

less

common

which

issued spe¬

than

will

invested in

15%

more

INVESTMENT
A balanced mutual fund

eystoneJL'iin

A

over

300

of

compared

The

that

has

slowed,

likely

A

of

long-term

the report points out
merchandising and util¬
ity groups "have acted character¬
istically against a sharply rising
market average," with price ad¬
vance less than that of the general
that food,

stocks

and certain

A mutual fund

TAX BENEFITS

under Canadian Laws

The

are

investing in diversified

the

describing
Keystone Fund of Canada, Ltd.
prospectus

the

of

*

Industries

Gas

that

nounced

exceed

now

its

Fund,
total

.

Inc., an¬
assets

net

$50,000,000.

The Gas Industries Fund

annual

report shows an increase of near¬

$20,000,000 in total net assets
the fiscal year ending March
31, 1956, over the previous fiscal
year end.
This growth resulted
not only from appreciation of in¬
ly

for

vestments but also from the addi¬
tion

of

shareholders.
there were

new

many

For $22 Million

gener¬

below-average

wondered about the price

Ever
of

uranium-235,
isotope?
It's

an

inherent

more

Ton of Uranium

a

rougniy

cording

mere

fissionable

the

$11,350

pound, or

a

$Z2,50d,000 per ton, ac¬
to the Atomic Develop¬

ment Mutual Fund.
Raw

.25%

containing

ore

sells

oxide

nium

ura¬

cent

1

for

a

pound, the equivalent of $697 for

Building

concentrates

stocks are following the
average
trend,
with
industrial
machinery issues seen continuing
their
moderately
better - than average action.
"The

more

favorable

action

of

mining stocks in the first quarter
indicates that the trend which be¬
gan two
Railroad

years ago is still intact.
equipments appear to be

a

investor attention by virtue

inherent

should continue.

have

$1,682

per

Normal

pound of uranium-235.
metal, contain¬

uranium

ing .7% uranium-235 sells for $18
per

pound,

or

$2,545

per

pound

of U-235.
*

Enriching the uranium to 20%

U-235

from

its

normal

brings the cost

tent

.7%

con¬

of U-235 to

$11,350 per pound.
Oh, yes, by
law, the Atomic Energy Commis¬
uranium-235, but

over

long-term growth of income and principal.

trend is over."

no

will lease it to bona fide users for

$25

per gram.

values, and this
The steel stocks

given outstanding perform¬
the last few years and

ance

of uranium-235. Mill
containing 90% ura¬
nium oxide sell for $9 per ton, or
each pound

sion cannot sell

there is

definite evidence that

Axe
Russ

COMPANY

Incorporated Splits
The board of director of Incor¬

porated

Investors has declared a
stock split to be ef¬

two-for-one

by the distribution of one
additional
share for
each out¬

•

San Francisco 4, California

Prospectuses available from Investment Dealers

jfddreu
Wholesale

CompaHy Managers

or

the above

since 1925"

Representatives: Boston *Chicago* Dallas* Los Angeles* New York* Washington, D.C.

Opeti-End

Axe Science & Electronics Corp.

standing share of Capital Stock $1
open-end mu¬ Par Value. The additional shares
tual fund at a meeting of share¬ will be issued on May 25, 1956, to
holders
^t the corporation's Tar- stockholders of record at the close
rytown, N. Y.,
headquarters. of business on that date. Certifi¬
was

Building

"Investment




becoming

companies selected for the possibility of

Managed and Distributed by NORTH AMERICAN SECURITIES

U-io9

State....

u

fected

Name

Cty

000, compared with $32,500,000 in
the similar period a year ago.

price action of automobile stocks
is seen as requiring further time.

50 Congress Street, Boston 9, Mass.
me

gear"

considered

"their

that

indication

tobacco

"in

currently

are

of their

stocks of well-established

common

Keystone Company

Please send

that

fact

The

market.

"Railroad stocks have attracted

FUND

months

six

the

April 30—the first half of
the fiscal year^—totaled $17,500,-

industry groups useful
stability of principal

and income,

some

CAPITAL GROWTH

for

sales

relative

for

result.

STOCK

J

*

At the fiscal year end

position from which substan¬
tially better performance, could

Company seeking

-

for

sales

the longer

over

term,
will
reach
substantially
higher levels."
In
analyzing industries whose
securities
are
normally consid¬
ered useful for long-term growth

in

fully managed Canadian

Investment

which,

movement

but, more
forward

a

share

per

.

Gross

downturn
pause in

$10.44

<

April,
Mr.
Cooley said, amounted to "slight¬
ly, under" $2,000,000,
compared
with
$4,100,000 in April
1955. '
ended

is not "a prelude to an
a

as

Gross

in¬

of

rate

with

Oct. 31 last.

on

according, to

the

fact

crease'

investing in

'

Shares -

price action than may be signifi¬
cant." Group sees no substantial
"break-away" in stock prices in
either direction, for some months
ahead, with 1956 business volume
slightly higher than in 1955.

ally recognized."
Among the cyclical groups, any

long-term growth of principal.

Television

of

the fund. The *iet asset value pershare rose to $12.17 on April 30

values

stocks selected to provide reasonable current

newrecord

; a

April 36 at $129,100,000,

dealers, "accounts for a more gen¬
eral
downturn
in
the
relative

60%

common

Inc. -set

-

Management Corporation of Chi¬
cago, managers and sponsors of.

pre¬

income with conservation and the
possibility

ofC anada,Ltcl.

'

in

COMPANY

bonds, preferred and

"7:

Electronics

President

I '

-

than

stocks.

Televisidn

This,
according
to
Group's
quarterlyJ report
to investment

reversal

r

'

ment.

with the market is

25%

or

the

as

under

cifically provides that "there
Nu¬

'

sponsible for much of this move¬

Among

bonds,

always

At $129 Million

'■k

-Fund,
high on *>an ~i;n-'
crease of 29.2% from the $99,900,- ■ ,r
000 total for Oct. 31,
1955, the*
close of the last fiscal year, it was
reported by William ;H. Cooley,,

these age" at this time.

The National Balanced Series is
not

trust

&

15

separate industry groups with the
general market rise during the
first quarter of 1956, Distributors
Group, Inc., makes the point chat
relatively few stocks were" re¬

com¬

producers

Science

Securities

this end, Mr. Hare
said, this

minate when

goods, and 11% in cash and

Gross

being

shares, ac¬
Wain Hare, Vice-

of

TV-Fuml Assets

:

Stable Stock Prices

appreciable

is

limits has been reached.

Science Fund Sales

FUND

Group Forecasts

the report,

•

shares of the fund

PUTNAM

:zL

principal and income, the re¬
port -considers
aviation
stocks
special offering will be for 1,000,about ready to resume their long000 shares
sold, or for a limited
term^'growth trend. Chemicals,
period of time beginning Tuesday,
electronics and electrical equip¬
May 15, 1956 and ending with the ment and
petroleums appear to be
close of business on
Friday, Aug. in a price position which makes
31, 1956, and offering will ter¬
them an excellent "growth pack¬

government bonds.

<$corr

to

up

broader distribution of Na¬

a

To

panies in the former categories,
20% in producers of fuel and raw

holders of record June 1,

%,

invested

sales

view toward achiev¬

a

President

of some of the important
companies producing capital goods
or consumers' durable goods. The
report shows that the company's
are

special

cording to E.

his

assets
June

the

on

tional Balanced Series

fer better values at this time than

income payable

vestment

shares

The

offering.

made with

stocks

share from in¬

a

and

manager

increased

are

the

The

report, H. I. Prankard,
2nd, President, stated that the
company's management believes
that the stocks of many companies
providing services or producing
consumers' non-durable goods of¬

DIVIDEND

Balanced

being made

of the fund.

concessions

charge
for

months'

six

National

investment

Dealer

paid to shareholders of record the
following day. The per-share in¬
crease for the period was 52 cents.
Dividends

the

1,000,000

ing
price,
as
computed
twice
daily. The present offering price
is approximately $12
per share.

31-cent capital gain distribution

same

CONSECUTIVE

of

available at the current offer¬

are

share

high of $6.20

new

a

per

of

sponsor

of its previous year.

QUARTERLY

K

by National Securities & Research

compared with $5.68 at the end

period

75th

offering

Series mutual fund is

reports assets

of last October after
PROSPECTUS

special

shares

as

GET THE FACTS AND FREE

A

April 30 of
$368,698,136,
as
compared
with
$335,606,525 at the end of its last
fiscal year on Oct. 31, 1955.
also

FUND, INC.

fork's

New

Fund,

largest open-end investment com¬

The

MUTUAL

National Makes

Reports

For Balanced Fund

DEVELOPMENT

elaborate nature;

same

*

At $368 Million

pany,

will be of the

heretofore, but Henry Ansbacher Long will no,

-

Special Offering

Affiliated

ATOMIC SCIENCE

quar¬

in the "Chronicle" of May

appear

longer be identified with its preparation.H-EDITOR.

against

as

•

Record in Assets

in

The survey

24.
as

In

Affiliated

Corporation

will

against $508,565,000 at the end of March.

as

Established 1930

invest

:

Securities &

Research
120

$40,810,000 in April,

year.

Cash, U. S. Government securities and short-term obligations
held by the 126 mutual funds totaled $435,021,000 at the end of

may

National

;

The number of new accumulation plans opened in April was
slightly below that of the month before, standing at 14,716 plans,
compared with 15,355 in March and 8,195 in April of 1955. " ' '

American

National

same

$35,628,000 in April of last

companies. Prospectus and other
anced

\

$107,539,000 in April, compared with
month of 1955.
:
/

Share redemptions amounted to

consisting of
bonds, preferred, and
of

developments in investment policy in the first
ter of the year,

share sales totaled

New

ment program now

stocks

\

earlier.

a year

of investment company operations,

covering in this instance portfolio changes and other

,

amounted to

The

common

.

Reporting today on the Association's 126 open-end member
companies, Mr. Burr announced that as of April 30, net assets
$8,615,458,000, as against $8,555,494,000 at the end of

Today?

70

The usual survey

according to Edward B. Burr, Executive Director of the National
■'

Association of Investment Companies.

over

April,

in

changed to

representing the additional

Heretofore, shares of the invest¬

cates

ment

shares will

but

company

no

new

i

an

were

shares

redeemable

were

sold.

be mailed

on

June 25.,

i

Number 5534

Volume 183

shareholders:

15,110

with 10,080 a

.

.

.

The Commercial and Financial Chronicle

compared

as

ydar ago/, ah increase
V

of 50%.
!

The

share

net asset value
increased to $13.93 at the March
per

fiscal year end

31

$12.01 V2

compared with

ago. Taking into
the distributions of

realized net gains totaling

$1.05%,

the net asset value increased

share,
during the

$2.88

approximately 24%

or

per

year.

owned

Fund,

Inc.,

assets

of

by

Canadian

mutual

a

with

fund

$35,000,000,

over

man¬

aged by Calvin Bullock, was $6,543,921 on Feb. 29, 1956, compared

<

his

BBA

:

from
University,
: 1
V" ' '

e s e r v e •

Cleveland, in 1953.

Report
Holdings

The market value of oil and gas

securities

received

*

WesternR

Makes New

year

a

consideration

kins

Canadian Fund

On Oil

(2409)

.

-

C.

Edwards; Treasurer

Elvira

E.

Bozzo.

31, 1955, and $12.91 (adjusted for
3-for-l
stock split)
a
year
ago.
The gain over March 31, 1955, was
26.6%. Much of this gain was reg¬

Selected

Industry

Shares,

Calvin

$4,210,667,

Bullock

Canadian

unreal¬

an

"Bulletin."

oil

and

holdings

gas

discussed in the article

are

divided

into three groups: (1) Major Ca¬
nadian Oils
large, well-estab¬
quarter,, lished
companies; (2) "Develop¬

Harry

L.

Sebel,

President

distributor

American
nounced

Shares,
the

of

the

in

first

1956

when the upturn was

Net

assets

10.8%.

March

on

31

ment"

,iwere

$8,547,020 against $7,564,668 at the
end of 1955 and $6,172,547 a year
ago. Shares outstanding increased
to
522,724
from
512,589
three
months
previously
and
478,299
(adjusted for 3-for-l stock split)

Canadian

oils

—

Soule

as

Soule

has

of

Inc.,

election

been

compara¬

tively smaller companies offering
speculative possibilities; and (3)

business

since

of

in

which

be available for re-nomination

Selected

has

of his

an¬

R.

securities

the

he

Mr,

last

ten

has

demands

The

vmriVArwiniUil

and

■«

4-

following
three-year

elected

were

terms

T

I

_

V

_

„

L.

to

Gov-

as

Austin Brown of Dean Witter &

Co.; James F. Burns Jr., Harris,
Upham & Co.; Harry C. Clifford
Kidder, Peabo'dy & Co.; Benjamin
Einhorn, Astor & Ross; George
M.
P
T

responsibilities

business.

own

serve

as

Governor because of

or

HnWiOndP

the

Paul

of

the

1919,

banking
firm
of
Dean
Witter & Co., announced on January this year that he would not

thn

Vice-President.

a

ment

Company, Chairman

Investments

national

-

—

istered

thesecurities business
chosen to represent the public,

in the

,

Inc.,
ized appreciation of about 55%,
net,asset value on March 31, 1956,"
according to the May issue of the
was $16.35 against $14.76 on
Dec.

Growth

cost of

a

21 years side> of

was

career

brokerage business as a telephone 5 '.?• The following Trustees of the
clerk on the trading floor of the Gratuity Fund—which pays death
Following the annual meeting Exchange.
benefits to families of deceased
of shareholders of The Johnston
The
new
Chairman
succeeds Stock Exchange members — were
Mutual Fund Inc., officers of the Harold W, Scott, who will com- re-elected:
fund were elected as follows:
"
Plete his second one-year term
William Shippen Davis, Blair S.
President—M. Jennings von der as Chairman and his seventh sue- Williams &
Co.; John M. Young,
Heyde; Vice-President—James M. cessive year as a Governor on Morgan, Stanley & Co.'
Farr 3rd; Assistant Vice-President May 21.
Mr. Scott, a partner in
Elected as the 1957 Nominating
Elsie J. Himes; Secretary — the Stock Exchange and invest- Committee were:

James

to

July, 1936, when he
old.* He started - his

61

ernors:

George F. Hackl Jr., Laird, Bis& Meeds (New York
City);
JC. Huger, Courts & Co.
Atlanta);
Walter
Maynard,
Shearson, Hammill & Co. (New

LaBranche Jr., LaBranche &
Wood; John R. McLaughlin, Neuberger & Berman; H. Van Brunt
McKeever, Goodbody & Co.; Joseph q Osborne, Hayden, Stone
& Co.; William F. Stafford Jr..

sell

Stafford & Co;
>
^
Mr. Kellogg' served as Vicestakes in the future Canadian pro¬
Chicago
Chairman of the Special Review
metropolitan
duction.
area,
as
well
as
Committee on Rules and ProceAs the Canadian oil stocks de¬ dealers in the States of Indian^, York City); Charles L. Morse Jr., dures of the New York Stock Exclined in 1953 and 1954, Canadian
Iowa, Minnesota, North and South Hemphill, Noyes &' Co. (New York change, a Committee which late
at the end of March, 1955.
City); Edward Starr Jr.; Drexel last year completed one of the
Fund's commitments in U. S. oils Dakota, and Wisconsin.
& Co.
In management's opinion, "there were
(Philadelphia); Samuel W. broadest
surveys
of
the
Exgradually eliminated
and
West, Beauchamp & West (New change's operations ever made.
is more likelihood of intensified holdings in the two Canadian oil
Colonial
Management
Asso¬ York City).
,<
,r
Mr- Kellogg is a Commissioner
inflation later this year than of categories were substantially in¬
ciates, of Boston, Mass., announces
creased.
Since mid-1955 n© U. S.
Four Governors were re-electYork Author¬
any
significant
downturn.
with
U.

S.

oil

companies

with

large

years

wholesaling

spent
funds.
He

mutual

will service dealers in the

<?

William

»

.

such

Against

background,

a

little

had

have

hesitation

.

.

we

about

in
growth stocks." In the past three
months, the most significant pur¬
chase was 1,500 shares of GustinBacon—to
broaden
participation
"in the most modern of textiles,

maintaining

full

investment

glass fiber." Two other
in
the
portfolio
are

new names
'

American

Metal

Co., Ltd. and Standard Oil
Company, (Indiana).
Street Investing Corp. an¬

Wall

nounced that the net assets at the

the first quarter were $6,-

end of

compared to $6,733,911.14 at the beginning of the year
and
$5,971,068.75 at March 31,
1955.
Net asset value per share

951,564.89

as

$7.16 compared with $7.00 at

was

end and $6.21

year

income

from

of 5 cents
from

cents

15

and

oils have

been held by the fund.
selecting "development" Ca¬
nadian oils, "Bulletin" says, the
In

fund management followed

titude

of

promising

Inc.

Investing

(formerly

Company,

Vegh

de

Income

Fund, Inc.) has announced that its
asset
value
per
share
on
was $15.09.
This
with $17.02 on Dec. 31,
1955, and $14.59 on March 31, 1955.
The company paid a distribution
from capital gains amounting to

31, 1956,

compares

share in January, 1956.
assets on March 31, 1956,

$2.40

per

Net

$1,594,064.11 as compared
$1,328,671.09 on Dec. 31, 1955,

were

to

and

$944,340.69

March 31, 1955.

on

Stock

Commonwealth

increased

assets

134%

in the last

1

same

Holdings

of: the

invests

which

for

selected

in

fund,

mutual

common

long-term

stocks

growth

keyed to scien¬
utilization - of
natural resources, and participa¬
tion in national growth. Principal
holdings in the diversified port¬

potentialities,
tific

are

achievement,

following

Oils

Petroleum

eral

of

Canada, Great
Plains
Development, Home Oil,
Husky Oil, and Royalite Oil."
V,
Purchased

over the period from
this group has appre¬

1952-1955,

ciated from

cost of

a

$1,534,647.,to

current market value of

In

unrealized

an

the

gain
the

$2,246,of 46%.

Consolidated Dividend
Trust

have

200% stock dividend

declared

a

payable May

of record
Samuel H. Wolcott,
President,
announced that
net assets as of April 30,

31, 1956 to shareholders
May 17, 1956.
Jr.,
total
1956

amounted

to

The

fund's

commitments

major Canadian oils were made
in Imperial Oil, British American
Oil, and McColl-Frontenac. These
three have risen from
of

$2,035,513

to

total

a

market

a

cost

value

(as of Feb. 29, 1956) of $3,308,648,
total unrealized appreciation of
$1,273,135.
"Bulletin"
concludes

a

that
tic

increased

demand

world

for

and

domes¬

Canadian

oil

in¬

a bright future for this im¬
portant Canadian industry.
sures

Personal

Progress

Berea, Ohio,
West

wholesale

a

Eastern

On March 26, 1956 the
a
capital gain dis¬
tribution of $0.80 per share.




than

more

14 years,

a

is

of

the fund's

30,

1955.

•

the

16.3%

to

tional

value

$11.75

Sept.

increased
from

months previ¬

First

Investors

Corporation

737,

$4,881,074

up

429,763

reported
in

month

1955.

of

crease

vestors

Corporation

that

its

four

months of

total

$42,148,962,
38%

over

total

for

of

of homes
Interest

sales

remain unchanged in the next six
months, despite somewhat "tighter

of

rities

Series

funds,
a n n o u

the

first

was

today by H. J.

National

over

sales

risk

Mr.

sistant

of

Stock

where

been

held
1817

its

of

3rd, has
of

the

the
New

Annual

to

G.

will

serve

as

as¬

Sellers Smith,

VicePhiladelphia
and

in

Morton, District Man¬

with

Fulton,

Reid

&

veteran

of

the

42nd

"Rain¬

Division, having
from 1943-1946, Mr. Hop¬

Infantry

by the

released
these high¬

survey,

interest

ing

rates

in

would
are

90%

survey,

granted

they

as

now.

on

the

the

re¬

that

8%
predicted
rates
rise, and only 2% said they
be

10%,

lower.

the most

of Ithe replies listed 5%% as

tional

widely used rate.

The maturities
loans

for

new

on

conven¬

construction

have increased slightly

1950

during the

one-year

of the re¬
sponding institutions reporting the
"typical maturity" on new con¬

is

struction running between 20 and

V i

c e-

Chairman

for

past year, with 37.5%

J. C. Kellogg,

He

III

has

been

For

$15,000,
price
75%.

Stock

Exchange

ported loans of this length as the

"typical maturity."
(4) The maturities
are,

to
in

with
the

it

For

$15,000,
it

of

the

ratio

selling

the

unde

loan-to

was

75%

was

between

and

over

70

said

the

loans for
purchase of existing homes
however, virtually identical
those of

loans

for

a

year
new

Unlike
construction,
ago.

ove

typica

75% and over; 26% sail
70 and 75%.

was

loans

on
existing home
customary, more con

as

servative.
For

existing homes selling

un

der

$15,000, only 11% of the re
spondents reported a ratio of 75 <2
and
25% said it was be
over;
tween 70 and 75%; and
31% sai<
it was betvveen 65 and 70%.

and

between
said

it

The

decline
gage
year

but
mous

of

over;

70

was

21%

and

said

75%;

ove

th
wa

it

wa

and

279

between 65 and

70%

survey
revealed a
in the volume of

lending

in

January

sligh
mort

of

thi

as

compared to a year age
there
was
virtually unani
agreement

that

the

lending would pick

succeeding

months.

volum

in th

up

Preliminary

reports indicate it has.
As for the level of loan

with

compared

42%

of

the

appli
a

yea

respondents

re

ported that applications for loan
on

on

am

houses priced

18.2%

0

respondent

"typical"

new

a

was

manship at the close of the mar¬

admitted
membership

ther

change during th

houses

29%

said

the

21.

concerned,

little

reported

of

was

are

new

ago,

A year ago®, only 33.7%
the responding institutions re¬

1

survey
disclose
savings and loan as

as

past year in the size of loans
related to the purchase price
homes.

cations,

Kellogg

over

League

25 years.

]kr.

had maturities

far

so

of Spear, Leeds
& Kellogg, a member firm of the
Exchange which acts as specialist
in
54
commoi
and
preferred
stocks. He will assume the Chair¬
ket, Monday, May

maturitie

making
conventional
Thirty-five percent of the
was

(

existin

on

for

75%

are

(3)

loans

were

On existing homes
priced
$15,000, only 9% reported
typical
loan-to-price ratio

the most

a

of

lengthening

no

40% of those replying to
reported 5% as the
frequent" rate at which

or

survey,

25%

same

year.

the

sociations

frequent rate, and the remaining

Exchange

terms.

The

same

Of the remain¬

respondents said 6%

Kellogg

and

only 18%

proved,

six

the

purchase price

years.

home

would

loans.

con¬

or-

15 years, 34% had matut
ities between 15 and 17
years, an

The

next

remain

to

been

Of

fore¬

would

they

25th

been

two

loans ;

"most

then

C.

the

under

31%

(2) Approximately 600 associa¬

the senior partner

joining National Secu¬
he was
associated
from

carried

included

the

to remain

homes, 48%

ratio

months

the

adopted

since

Hopkins

is

League's

that

cast

tions,

Ex¬

Governor

the

in Pittsburgh.

served

the

formal

has
G. Hopkins

Prior to

A

Chairman

Exchange.

since

Mr.

Phillip

risk

Government.

23,

terms.

those made at the

lending institution, as
to FHA and VA loans

the

The

are

Conven¬

(1) Of the 1,500 associations

stitution.

the

John M. R.

bow"

Kellogg,

Governors

man¬

of

President

ager

elected

York

in

spon¬

and

Crane

Board

a

York,

the

of

plying to

Chairman of NYSE

year,

poration, New

conventional

April

change,

Research Cor¬

survey

lights:

when

&

findings of

coast-to-coast

tional loans

months

Kellogg Elected

J.

a

there has

indicates.

made

Federal

four

Se¬

curities

of the

one

annual

increase of
$30,386,105
first

elections have

need

was

League

ings and loan business.

1955.

been

mutual

Loan

compared

an

nationwide

a

of the United States Sav¬

and

This
the

conditions,

in¬

for

Co.,

of

J.)

hardly changed in past

conventional

on

home loans made by
savings and
loan
associations are likely to

1956 amounted to

the
the

rates

In¬

reports

Trust

Director

Trustee of the Bay Head
Chapel and Westminster
Presbyterian Church.

(N.

months, and that ratio of loans

an

also

He is

mortgages carried at lenders' risk

First

is

76%.

$6,same

Home

and

United States Savings and Loan
League survey shows interest

re¬

the

the

This

almost

out-

men

loan
practices
by the League, the national
trade
organization for the sav¬

from
for

Central

President

Conventional Home Loan Rates Seen
Unchanged

ings

ports April 1956 sales of $11,310,-

the

J

membership of the Board

survey

First Investors Sales

a Director o£ the City Federal
Savings & Loan Association and

w sanation for medical research),
and a Director of Maymount Co.

which includes Keith Funs-

ton, President, and three

close

share

a

share six

a

James

Secu¬

33

money"

and

Na¬

*

in the next six

fiscal year on

Asset

He

^

w

SOn

rates of

with $713,000 at the

pared

rep¬

Ohio

to $60.40 per share,
Co.,
members
of the Midwest
with
$45.58 a year
Stock Exchange, in Cleveland.
and with $55.81 on Dec.

made

wLrTl
Vnrii

Science & Nuclear Fund reports
total assets of $1,239,461 as com¬

Virginia

for

of

as

in

^,I?icke,1R,ob.eitW(Milwaukee); C. Pea-

&™Nam?a<£ Kell°gg & Sons, President of
^'
^ar?4r
J* C* Kell°gg Foundation (an

tw
i
Totat

as

thority's Finance Committee.

body Mohun, Stern, Lauer & Co.
(New York
City); Jerome W.

Science & Nuclear

appointment of Phillip G.
Hopkins
of
65
Adams
Street,

$61,600,950, rities,

1955.

each

a.1?1, Vice-Chairman of the Au¬

three-year terms:

Baird & Co.

The

equivalent

trust

of

partner, special¬
izing in corporate finance.

in

compared
31,

Vice-

as

Secretary

oils declined 10%.

ern

1950-1956

earlier

Johnson

Mr.

and

last six

$10.10

Series.

vestment

of

Mr.

■

ously.

agers

Consolidated In¬

election

Toronto

period

same

ed for

.

America, today announced the

Stock Exchange Index of 15 West¬

sors

The trustees of

of

the

President of

the

trustees of Bond Investment Trust

that firm for

(19.3%); Chemical and
Drug (11.2%); Electronics (7.2%);
Aluminum (6.0%); Electric Power
(5.8%); Insurance (4.8%); Auto¬
motive
(4.3%);
and Machinery
(4.0%).
tries:

in

Industries

"Calgary & Edmonton, Cana¬
Superior Oil, Consolidated
Mic Mac, Dome Exploration, Gen¬
dian

Simonson, Jr.,

are

Gas

tin."

Canadian

indus¬

folio

of

Fund, Inc.,
currently has holdings are the
following," according to "Bulle¬

which

in

resentative

period.

directors

Johnson, who is leaving the
Boston law firm of Choate, Hall
& Stewart to accept these posi¬
tions, has been associated with

Fund

rising from $795,066 on April
30, 1955 to $1,860,357 on the same
date this year. Net asset value per
share rose from $10.03 to $12.75 in

R.

Fund, and Colonial Fund, and the

of the Funds.

year,

the

ade¬

of

"Among the so-called 'devel¬
opment' Canadian oil companies

net

March

and

acreage,

Franklin

has now joined its or¬
ganization. In addition, the boards

President

o84,
Vegh

de

mul¬

a

smaller

that

Johnson

quate finances.

a

securities profits.

of

companies and
chose only those which combined
capable management, good spread

earlier

year

a

after dividend payments

pleasure

new

the

construction

same

level

as

reported

a

that

number

the

cations
ago.

a

are

coming it

year ago;

329

decline, and 26% sai<

were

of

these

higher than

appli
a

yea

r

The Commercial and,Financial Chronicle

(2410)

62

The following statistical tabulations

Indications of Current

latest week

Business Activity
AMERICAN

IRON

INSTITUTE:

STEEL

AND

capacity)

operations (percent of

Indicated steel

May 20

oil

Crude

May 20

INSTITUTE:
output—daily

condensate

and

Month

Year

Week

Week

Ago

Ago

$95.7

§2,355,000

2,338,000

2,466,000

*2,343,000

7,084,433

(bbls.)_.—,

24,725,000

at

:

7,146,000

7,171,100

6,687,550

7,447,000

7,517,000

7,029,000

24,904,000

25,579,000

23,959,000

2,276,000

2,205,000

2,342,000

2,075,000

11,979,000

11,867,000

12,174,000

10,307,000

8,135,000

(net

189,220,000

190,188,000

197,322,000

174,243,000

18,349,000

17,894,000

17,644,000

22,195,000

63,990,000

61,923,000

60,808,000

70,551,000

33,216,000

32,476,000

32,651,000

43,305,000

736,904

Total

770,558

778,398

685,397

freight received from connections (no. of cars)— -May

5

-679,138

678,088

655,544

CONSTRUCTION

;-i.

---

__—j.—-

construction
and

State

$557,690,000

$389,020,000

$529,844,000

$458,746,000

.May 10

370,489,000

-238,826,000

376,133,000

286,442,000

.May 10

187,201,000

150,194,000

153,711,000

172,304,000

May 10

130,510,000

129,312,000

109,657,000

116,208,000

May 10

56,691,000

20,882,000

44,054,000

56,096,000

and

May

5

10,020,000

10,160,000

May

5

519,000

563,000

Office

"

building

Social

.

DUN

INDUSTRIAL)

AND

-

8,595,000

8,552,000

,462,000

417,000

5

125

10,837,000

10,918,000

10,815,000

building

___

institutional

recreational—

258

255

277

All

May

8

May

8

May

8

5.179c

5.179c

$60.29

$60.29

$60.29

$56.59

$53.17

$55.00

$54.83

$34.67

5.179c

—

9
9

45.475c

45.475c

46.875c

35.700c

43.775c

43.900c

48.250c

35.575c

98.250c

97.875c

99.125c

91.125c

9

16.000c

16.000c

16.000c

15.000c

9

15.800c

15.800c

15.800c

14.800c

May

9

13.500c

13.500c

York)

(East St. Louis)

at

at

S. Government Bonds

corporate

—

Aa

MOODY'S
U. S.

93.96

92.69

96.75

May 15

105.00

105.00

105.86

108.88

108.16

107.98

109.06

112.37

106.92

107.09

107.62

110.34

May 15

104.66

104.83

105.86

109.06

——

—

•—

—May 15

100.32

100.49

101.14

104.14

May 15

103.64

103.80

104.83

107.27

--May 15

,105.17

105.17

106.74

109.42

May 15

105.86

106.04

106.04

109.97

Group

Utilities

Public

12.000c

94.28

May 15

*

A
—

13.500c

May 15

AVERAGES:

MOODY'S BOND PRICES DAILY

Group

Group

Industrials

YIELD

BOND

AVERAGES:

DAILY

private.

construction

.___

building

building

Aaa
__

2.97

3.08

2.74

15

3.45

3.45

3.40

3.23

May 15

3.27

3.28

::::::::
Group

Public

zz
!

Utilities

Industrials

in

3.22

3.04

May 15
May 15

3.34

3.30

3.15

Group

Group

NATIONAL PAPERBOARD
Orders received

3.46

3.40

3.22

3.73

3.72

3.68

3.50

3.53

Production

3.47

3.52

3.46

3.32

3.44

3.44

3.35

.3.20

3.40

3.39

3.39

3.17

May 15

419.4

417.1

423.4

401.6

5

387,268

276,341

380,425

372,718

/

ASSOCIATION:

(tons)

3.33

15

May
—May
May
May

.

COMMODITY INDEX

MOODY'S

May

i

(tons)

Percentage of activity.
Unfilled orders (tons) at end of period

289,465

293,282

276,703

May

5

May

5

99

99

94

May

5

633,043

535,018

647,160

271,427

Sewer

and

Public

service

All

other

S.

COAL

DEALERS

May 11

Odd-lot

sales

Number

Odd-lot

SPECIALISTS

AND

dealers

by

N.

ON

EXCHANGE

Y.

<

COKE

109.12

108.45

109.13

106.79

DEPT,

March

85
129

172

165

53

54

40

39

40

25

28

18

37

..."

.

V

17
;

.

94

329

*

26

114

357

32

30

65

60

254

239

8

7

917

783

916

18

18

22

'28
,,

55

■:

4

274
:

361

303

1

35

•r

'

t':>;

14

33

'

71

195

202

23

28

; 52

60

97

87

98

280

200

270

102

92

88

38

30

46

42

48

14

11

'U3

$1,607,000

$324,000

40,580,000

43,090,000

34,555,000

2,223,000

2.029,000

1.734,000

16

OF

(000's

r'

(BUREAU

Oven

OF

(net

coke

coke

at

Mar.:
..

tons)_____
end

PRICE
of

Month

of

tons)__

(net

stock

CONSUMER
v

MINES)—Month

tons)..

(net

Beehive coke
Oven

month

of

INDEX

(net

tons)

-

1,420,324

1,527,717

1,598,596

1,369,366

April 21

$78,327,849

$79,965,877

$86,427,561

$71,524,445

1,094,719

.April 21

5,649

5,834

8,383

7,078

.April 21

1,089,070

1,208,704

1,318,369

1,294,931

.April 21

$55,561,855

$61,920,057

.April 21

251,210

283,550

$67,600,841
296,470

.

-

398,430

1,634,689

2,525,662

114.6

114.3

109.0

108.8
107.1

110.8

*

109.7

:

124.3

123.9

'

92.8

93.6

102.3

Dairy

106.9

107.3

105.4

and

vegetables
home

at

Housing
Rent
Gas

and

Solid

electricity—

fuels and

Household

fuel

oil

:

114.8

113.3

112.0

110.7

109.6

111.9

120.7

120.7

119.6

131.6

131.5

130.0

111.7

111.7

110.3

130.6

130.0

126.2

103.1

operation:

I

104.8

Men's

and

Women's

boys'.

and

_•

Z

apparel

care

'_

.:

Reading

and

a

recreation

goods and services—
GINNING

Final

report

DEPARTMENT

(DEPT.

(running

STORE

SYSTEM

SERVE

of

—

v;
'

91.1

t

.

—

—.—

care

104.6

117.9
103.2

—.

<

98.3

97.4

121.3

91.0

,

'

116.7

bales)

"

SALES—FEDERAL

126.7

126.9

127.3

170.8'w

170.5

164.6

116.8

117.0

118.2

131.4

130.9

127.0

119.2

118.9

113.5

107.7

107.5

106.6

121.2

120.9

119.8

14,542,040

13,618,392

RE¬

1947-49 Average=100—

April:

Adjusted for seasonal variations.:

122

'121

119

Without

113

'110

114

'

.April 21
Round-lot purchases by

TOTAL

ROUND-LOT

EXCHANGE
FOR

Total

round-lot

251,210

283,550

.April 21

593,630

595,080

565,450

THE

STOCK

MEMBERS

N.

Y.

Banks

April 21
April 21

500,160

557,770

569,630

569,080

11,567,580

12,906,630

14,546,840

14,747.530

April 21

12,067,740

13,464,406

15,116,470

15,316,610

1

TRANSACTIONS

ACCOUNT

FOR

OF

1,790,900

1,827,630

1,715,410

290,220

309,280

318,150

335,390

April 21

1,249,540

1,442,650

1,555,890

1,545,120

April 21

1,539,760

1,751,930

1,874,040

1,880,510

April 21

268,430

444,500

Other

sales

Total sales

Short sales

Other

sales

___.

Total sales

Other

transactions

Total

initiated

purchases

Short

off

the

sales

Other

sales

396,990

301,600

»

Total sales

purchases

Other

sales

,

Total sales

WHOLESALE

PRICES, NEW SERIES

LABOR—(1947-49

=

—

U.

30,100

28,620

33,700

386,320

366,620

330,740

April 21

318,160

Depreciation

416,420

395,240

364,446

Federal

—April 21

608,443

572,402

654,620

596,625
k

April 21

63,310

68,130

99,630

98,880

April 21

746,185

785,143

866,105

643,524

April 21

809,495

853,273

965,735

742,404

commodities

2,807,802

2,879,240

2,613,635

April 21

381,230

407,510

446,400

467,970

April 21

2,286,185

2,614,113

2,788,615

2,519,384

April 21

2,667,415

3,021,623

3,235,015

2,987,354

"Revised
of

Jan.

1,

figure.

1956,

as

.May

113.7

113.8

113.4

110.4

.May

88.7

89.0

88.0

92.3

101.1

101.5

100.8

103.3

.May

76.7

78.5

76.5

85.2

May

121.4

121.4

121.3

115.7

([Includes 905,000 barrels of foreign crude
against

Monthly Investment Plan.




income

common

On

preferred

S.

of

Jan.

1,

1955

basis

of

125,828,319

runs.

tons.

fixed

income

,

charges

—,

charges—
-

—

structure & equipment)'

taxes

:___

at

stock

face

to

§Based on new annual capacity of 128,363,000 tons as
tNumber of orders not reported since introduction of

'

fixed

charges

STATUTORY

of April

—As

Total

stock

income

GOVT.

30

amount

DEBT

4.12

$67,038,901

$62,877,376

$67,563,490

18,862,622

22,756,895

17,625,770

85,901,523

85,634,271

85,189,260

4,468,619
81,432,904

4,859.490

4,375,405

80,774,772

80,813,855

50,506,606

49.813,714

49,576,534

3,432,660

3,449,683

3,030,504

47,073,946

46,364,031

46.496,030

45,282,986

45,095,906

44,131,450

24,371,175

25,057,419

22;059,134

36,122,378

32,757,869

34.251,999

13,441,936

4,123.224

13,535,252

2.63

2.61

2.59

$281,000,000

$281,000,000

$281,000,000

275,788,569

276,344,537

276,648,829

56,342

59,205

37,455

$275,844,912

$276,403,702

466,630

468,907

507,253

$275,378,282

$275,934,795

$276,179,031

5,621,717

5,065,204

4,820,968

LIMITATION

(000's omitted):
that

may

be

outstanding

time
Outstanding—
any

Total

.May
other than farm and foods

2.50

3.86

I

:

___.

(way &

public debt
obligations not

gross

Treasury

Meats

All

income

Guaranteed

products
Processed foods

for

fixed

On

Ratio

U.

100):

commodities

2.72
,

Dividend appropriations:~

S. DEPT. OF

Farm

3.94

Commission)—

deductions

27,700

Commodity Group—
All

after

290,460

2,343,403

CLASS

iricome

deductions, from

available

April 21

April 21

Short sales

S.

1—

Income

April 21

Total round-lot transactions for account of members—
Total

4.36

3.87

income

Income

Net

U.

Commerce

operating

income

Other

4.65
4.44

4.35

OF

4.03

4.52

2.89

ITEMS

3.68
5.02

'

February:

Miscellaneous

floor—

I

of

-

4.66

(

—

(Interstate

Total

the floor—

on

purchases

Tel.)

(10)

railway

Other

3.69

&

L,.

INCOME

Month

1,466,530

April 21

transactions initiated

SELECTED

OF

April:
4.97

Tel.

Amer.

(199)

RYS.

Short sales

of

,—

,

incl.

(151

Average

Net

l

(25)

(not

YIEI.O

AVERAGE

STOCKS—Month

(125)

Insurance

MEM¬

BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which registered—
Total purchases
April 21

Total

WEIGHTED

Utilities

sales—

adjustment

COMMON

Railroads

TRANSACTIONS

Total sales

Other

.100

Industrials

(SHARES):

sales

ROUND-LOT

421,850

STOCK

Short sales

Other

398,430

seasonal

MOODY'S

ON

SALES

ROUND-LOT

OF

.April 21

296,470

dealers—

STOCK

AND

ACCOUNT

z

_______

Total

—_

owned

...

gross

teed

the

______

debt

public

obligations

Deduct—other

by

and

guaran¬

—.

outstanding

public

debt

Grand
Balance
under

total

face

outstanding

amount

above

of

authority

obligations,

$276,686,284 '

obli¬

gations not subject to debt limitation——

:

90.4

COMMERCE)—

OF

*

105.6

106.5
4

98.3

121.9

'

Personal

-

106.6

girls'—

Footwear

Transportation

102.5
121.4
104.6

121.6

Apparel

Other

•"

107.3

products

Other foods

$65,679,789

101,582

1,674,229

124.4

Month
.

6,130,731

*241,465

bakery products
Meats, poultry and fish

Fruits

dealers—

6,232,313

6,234,670

114.7
•

—■

home

at

Cereals and

1,302,009

1,326,752

1,214,538

•6,476,135

262,029

1947-49=100—

—

.

Food

COTTON

.April 21

6,886,556

6,624,527

March:

items

Medical

April 21

$1,340,400

-

(BUREAU OF MINES)—Month

Private

STOCK

purchases by dealers (customers' sales)-

Round-lot sales by

S.

of

_—

Production

>

COMMISSION:

shares

of

Month

—

Bituminous coal and lignite (net tons)
Pennsylvania anthracite (net tons)

97

'

purchases)—t

(customers'

development

CORPORATIONS —U.

OUTPUT

Other

190

SECURITIES

—

enterprises

and

public—

of April:

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODDEXCHANGE

96
161

24

57

;

water

COMMERCE

Public
LOT

214

25

omittedi

611,141

OIL, PAINT AND DRUG REPORTER PRICE INDEX—
=

institutional

and

Housefurnishings

*

AVERAGE

257

■

205

Conservation

HO;

'

1949

,

Other nonresidential building

1

15
15
15

A

Railroad

184

322

-r

._

____________

Military facilities
Highway

All
2.94

MaY

Average corporate

Baa

.

;

.__

Food

w

Government Bonds—

Aa

226

351

public

other

U.

—May
-May

—

——.

at

9

Railroad

236

CASH DIVIDENDS—PUBLICLY REPORTED BY

May

Baa

563

19

•Educational

4.797C

May
May

Average

23

655

37

telegraph
utility.

Nonresidential

233

at

u.

106

662

105

utility

Other

'

May 10

at

Zinc

87
30

53

______)

and

Hospital

Louis)

(New

1,190

A

32

173

Railroad

9,673,000

(E. & M. J. QUOTATIONS):

refinery

(St.

995

98

construction

Public

134

104

*119

Lead (New York)
Lead

2,357
1,319

1,065

155

Miscellaneous

-

Farm

&

INC.

Electrolytic copper—
Domestic refinery at
tin

1,112

253

garages

$3."«3
'

2,197

*

•

•

Straits

$2,980
•

1,207
110

(nonfarm)_____

restaurants,

Hospital and

IRON AGE COMPOSITE PRICES:

Export

;

;

Religious

INSTITUTE:

(COMMERCIAL

METAL PRICES

1

$3,250

buildings and warehouses

Residential

.May 12

BRADSTREET,

7,268,795

alterations

Industrial

FAILURES

9,815,095

7,468,393

2,333

Other nonresidential

STORE SALES

ELECTRIC

*10,924,788

8,255,824
OF

__,

Stores,

Public

INDEX—FEDERAL RESERVE
May
SYSTEM—1947-49 AVERAGE = 100

EDISON

10,547,000

Telephone and

lignite (tons)
anthracite (tons)

DEPARTMENT

Ago

.

Industrial

.

Pennsylvania

Month

Commercial

BUREAU OF MINES)!

(U. S.

Bituminous coal

DEPT.

Nonhousekeeping

640,909

May 10

municipal

COAL OUTPUT

S.

Educational

.

construction

Private

Public

U.

building fnonfarm)
dwelling units

Nonresidential

Year

Month

(in millions):

construction

and

Previous

tons)—

(net

Z
—

of that dates

are as

Latest

produced

April

April

either for the

are

'

construction

S.

U.

castings

products

construction

New

NEWS-RECORD:
Total

for

March

of

Thursday, May 17, 1956

INSTITUTE:

Residential

ENGINEERINC

—

STEEL

of

steel

of quotations,

cases

CONSTRUCTION

new

Private

,

5

ENGINEERING

CIVIL

of

of

;LABOR—Month

ASSOCIATION OF AMERICAN RAILROADS:
May

steel

tons)—Month

BUILDING

7,530,000

7,559,000

7,858,000

AND

and

Additions

May
May

Distillate fuel oil (bbls.) at—__________——.

Revenue

Ingots

in

or,

IRON

Month

.

Dates shown in first column

AMERICAN

of
H,626,000

Residual fuel oil (bbls.)

96.9

100.2

*95.2

.

production and other figures for the

cover

that date,

on

Shipments

(bbls.

average

——,

_____———

average

month available.

Previous

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 lines—
Finished and unfinished gasoline (bbls.) at
May
Kerosene (bbls.) at——______—_____—__—___;—_——May

gallons each)

or

month ended

Latest

May

42

Crude runs to. stills—daily

or

Steel

Equivalent to—
Steel ingots and castings (net tons)
AMERICAN PETROLEUM

week

.

issuable

-

>

-

•;

Volume 183

Number 5534

.

.

The Commercial and Financial Chronicle

.

had

Our

on

it

has

to

Big Five
There

many

had

inquiry

had

that

massive

$300

offering

stantial

would

when

syndicate

the

able

was

for

these

of

million

;

What added to the general sat¬
isfaction among underwriters was

.the fact that the successful flota¬
tion

was
accomplished
without
anything in the way of substan¬

the

market

Co.

Edison

of

first

of

N.

and

mortgage

bonds

California

Gas

which had indicated it would take

100.

was

debentures found wide

and

Co.'s

Y.'s

$40

re¬

the big electrical equipment man¬

only

While

outstanding

issue.

the

Tuesday and Wednesday,
tively.

premium

that; few

had
:

been

the

at

issue

to

emissions

hold

for

long

price.

much

aside
the
«

of

:

from

OAKLAND,
Durant

staff

The

has

Calif.

been

United

of

—

Betty

added

an

Western

Secu¬

Joins

'afforded

Triple
with

in

A

an

rated

PALM

BEACH,

Fla;

—

S. Ross has joined the
staff of Security Planning, Inc.,
Harvey Building.

ings.

Allyn

B.

CITY, ' Mo.—Shedon

B. Jacques is now connected
A.

C.

Allyn

He

with

Company,

and

1016

to

the

around

reduce
issue

14

years

Baltimore

into

CORPORATION

226th CONSECUTIVE
,

accorded
a

the

the

helpful

cent

observers

TBriggs&t Stratton]

($.25)

..

The

per

In¬

the stock of Burroughs
Corporation, payable July 20,
1956, to shareholders of record

DIVIDEND

at

the

was

on

payable

of

Board

Directors

dividend

share

of

declared

has

thirty

capital

the

on

of

the Corporation,

($3

stock

a

3%s

priced

to

June

May

15,

on

par

and

payable June 15,

May 10,1956

Company

y^AUIS-CHAlMERS
SZ

MFG. CO.

DIVIDEND NOTICE

No. 128

DIVIDFND

regular quarterly

dividend of

one

dollar

a

of

Directors has de¬

quarterly dividend of 25c
on
the
outstanding

share

,

Common Stock of the Company,
June 30. 1956, to stockholders

on

Atlas
33 Pine

on

been

3-'/4% PREFERRED DIVIDEND NO. 39

record

of

the

at

close

NOTICE

DIVIDEND

business

of

June

DIVIDFND

NO. 8

regular quarterly dividend of ohe dollar and
two cents ($1.02) per share on the 4.08%
Cumulative ^Convertible
Preferred
Stock,
F1C0 par value, of this Company has been
declared, payable
holders of record

June

a

regular quarterly dividend of 37 Mil

5,

the

at

per

this

to

to sflffreof business

1956

on

stockholders

close

NATURAL

stockholders of record

at

the

on

of

August

Secretary

May 29, 1956.

May 18, 1956.

GAS

COMPANY

of business

close

Birmingham, Alabama

R. L. Tollett,
President

Common Stock Dividend No. 69

May 8, 1956

W. E. Hawkinson,

A

Vice President and Secretary

regular quarterly divi¬
cents per share

dend of 45

declared

been

Stock

of

the

on

Southern

Natural Gas Company, pay¬
able
June
13, 1956 to

Public Service Electric
and Gas

stockholders of record

Common Stock

close

Company

of

business

at

on

the

May

31,1956.
H. D

NEWARK. N. J.

McHENRY

Vice Presiden

Regular quarterly of 6(k

•

per

Payable June 20,1956

and Secretary

CYAN AMID

•

Record May 24, 1956
„

Walter A.
•'

COMPANY

Peterson,
Treasurer

May 15, 1956

DIVIDENDS

QUARTERLY

DIVIDENDS

PREFERRED

The Board of Directors has de¬
The

Board

Directors

of

of

Amer¬

Cyanam'd
Company
today
a
quarterly dividend of

declared'

three-quarter

and

per share on

the out¬

and

quarterly dividend
and one-half cents

a

of eighty-seven

(87Vtt) per share on the outstand¬
ing shares of the Company's 3'/2%
D,

payable'

July

holders of such

2,

stock

clared the following
for the quarter

close of business June 4,

Class of

Dividend

Stock

Per Share

4.08% Cumulative Preferred

.

.

.

$1.02

4.18% Cumulative Preferred

.

.

,

1.045

4.30% Cumulative Preferred

.

.

.

1.075

$1.40 Dividend Preference....

.35

1956.
•

.45

DIVIDEND

The Board of Directors of Amer¬

TEXAS

ican Cyanamid Company
NATURAL

GAS

clared

regular quarterly dividend of 35c
declared

on

the

per

Common

Stock, payable July 2, 1956 to stockholders

J. E. IVINS,

today de¬
quarterly dividend of sixtyone-half

two

and

per

share

shares
the

1956,
of

of

to

Stock

of

are

payable

at

before June 30, 1956 to stock¬

holders of record May

close

of

31,1956.

F. Milton Ludlow

payable

the

on or

Secretary

S.

New York, May 15,

KYLE, Secretary
1956.

COMPANY

COMMON STOCK DIVIDEND
85th

Consecutive

Ouarterly Payment

The Board of Directors of Sea-'
board Finance
Company declared

regular quarterly dividend of 25
a
share on Common Stock,'
payable July 10, 1956 to stock- <
a

cents

holders of record June 21, 1956.
PREFERRED STOCK DIVIDENDS

The directors also declared regu¬
lar quarterly dividends of $1.182 on
the $4.75 Sinking Fund Preferred
Stock and $1.25 on the $5.00 Sink¬

ing Fund Preferred Stock, both

pay¬

able July 10, 1956 to stockholders
of record June 21, 1956.
'I

business

1956.

R.

Secretary

(62,/2<')

outstanding

Common

All dividends

June 29,
the holders of such stock

record

4,

cents

the

on

the

Company,

June

June 8, 1956.

a

FINANCE

1956:

Stock, Series

1956, to the
of record at

5ERBDRRD

dividends

ending June 30,

Common




to

SOUTHERN

share on the common stock of
Company, payable June 14,1956,

Transfer books will not be closed.

COMMON

I

1956,

net
year

payable

\

-

■

surplus of

1955,

J. J. MAHER,

A

the

■

the

par
of this Company has
declared, _>8yat»
payabRSiune 5, 1956 to share-

Cumulative Preferred

on

14,

31,

and one-quarter cents (81 He) per share on
the 314% Cumulative Convertible Preferred

ican

of record

out of

December

quarterly dividend of eighty-one

regular

Railway

outstanding

15,1956.

Corporation

3.80%

been

be

record at the close of business

Street, New York 5, N. Y.

GAS

■

declared

ended

September

A

stock

common

Southern

to

profits of the Company for the fiscal

June 1, 1956.

share

re¬

has

of

value

(proposed

after the stock split is effected), has today

shareholders of record at the close of business

Checks will be mailed.

TENNESSEE

share

par

Company

Dated: May 12. 1956.
•

been

OP

6,491,000 shares of

without

regular quar¬
terly dividend of fifty cents (50c) on the new
$10 par value common stock), has been de¬
clared payable June 30, 1956 to dommon

Series C,

*

the

on

stock, (equivalent to a

AMERICAN

Tuesday that

The

dividend of fifty centi (50<) per share

Common

exerted

HOUSTON,

Y.( May 15. 1955.

New York. N.

COMMON

standing shares of the Company's
3%% Cumulative Preferred Stock.

NO. 35

Southern

reception

LEADING TRANSPORTER

GREENBURGH
Treasurer

Burroughs

con¬

yield

G.

Secretary

Detroit, Mich.

Dividend No. 58

other

the close of business June
JOHN

May 2, 1958

years

had

at

6, 1956.

Vice President

1956

cents (933/4f)

DIVIDEND

(75tf) cents per share was declared,
payable June 27, 1956, to stockholders

Wis.

ninety-three

AMERICA'S

the close of business June 6, 1956.
extra
dividend of seventy-five

An

of record

Sheldon F.Hall,

(30c)

oents

L. G. REGNER, Secretary-Treasurer.

Milwaukee,

been

14, 1956. Checks will be mailed.

the group which brought out Cal¬
ifornia Oregon Power Co.'s 30year

business

at

average

debentures

reported

close> of

22, 1956.

holders

May 16, 1956.

.

of record at the close of business

lagging.
It

twenty-five cents

share has been declared

upon

Ave¬

NOTICES

-

Board

clared

and

were

which

a

portfolios.

good

influence

flotations

May 3, 1956

quarterly dividend of fifty (50tf)
cents per share was declared, payable
June 27, 1956, to stockholders of record

The Board of Directors has declared

on

that

Broadway, New York 6, N. Y.

A

A dividend of

4.08% PREFERRED

Lift to Other Issues

vinced

61

CASH

DIVIDEND

.

CVAIVAMIIJ

Market

HACKNEY, Treasurer

May 18, 1966.

eight months,

many

record

May 28, 1956.

Stock, $100

DIVIDEND

with either maturity probably fit¬

ting nicely

1956, to

of

holders

BRIGGS & STRATTON

CHARLES C. M0SK0WITZ

20

able June 8,

Secretary.

has

the

from

VANDERSTUCKEN, JR.,

was

•

will

of

E. F.

the

on

PETERS, Secretary-Treasurer.

Vice Pres. 6* Treasurer

denture

taken

was

($1.00) per share on the outstanding $20 par

Moreover, the substantial sink¬
ing fund provided for in the in¬
life

action

ROGER

common

(Special to The Financial Chronicle)

KANSAS

compared

"

the

on

Common Stock pay¬

Stock.
WM.

A

Joins A. C.

from Triple A to BAA rat¬

range

share

per
tiQOUCTI

A

them

obligations,

quar¬

Railway

Hervey

of 3.39% for the

average

a

1956.

Security Planning

WEST

'

return of 3.22%
open market for

the

standing and entitled to receive dividends,
payable June 15, 1956, to stockholders of
close of business May 25,

record at the

declared

terly dividend of 50c

(Special to The Financial Chronicle)

LOEW'S INCORPORATED

average

dividend

J.
the

to

price of 100 V2

offered

No

Common

only public evidence

yield

.

.

1956, to stockholders of record May 25/ 1956.

formerly with Waddell & Reed, Inc.
,"

recommend

tors

,

1956.

value)

the fact that they are

issuer's

1956

rities, Inc., 1419 Broadway.

debt.

with

.

to

14,

s^are upon the out¬

per

Preferred Stock of1 this Company has
been declared payable July 2,
1956, to holders
of
record
at
the
close
of
business
June
12,

per

to yield 3.47% the GE debentures

had

Wis., May

$1.75

standing

The

(Special to The Financial Chronicle)

corporated,

Relatively Attractive
a

Company

respec¬

Joins United Western

nue.

Brought out at

of

bonds,

not

was

recent

able

dividend

divi¬

a

dend of 50 cents per share on the 10,020,000
shares of the Company's capital stock out¬

(Incorporated)

.

Racine,

,

A

ouarterly

large, it was nevertheless im¬
pressive considering the immen¬
sity of the undertaking and the
fact

The Board of Directors has declared

insurance

smaller

with .pension
funds,
directly or through their
supervising trust companies, tak¬
ing down substantial amounts of

debt

The Board of Direc¬

million

25-year first mortgage

cither

ufacturer's

DIVIDEND

was

NOTICES

J. I. Case

.■

.

$30

which bids will be opened next

companies

funded

DIVIDEND

refunding
Southern

on

Big Five insur¬
companies, and in spite of
the reported drop-out of a major
New
England
insurance
firm

among

Schulz

^

pre¬

of

ance

ception

Corpo

South

105

Mr.

MIAMI COPPER COMPANY

is

tial aid from the

The

Street.

paring for next week's two major
undertakings, namely Consoli¬

the

and

large block if the price

Incorporated,

Salle

Johns-Manville

DIVIDEND NOTICES

with Blair

associated

mortgage-lending and

Meanwhile

no

was

dated

a

Co.,

La

huge

placements of corporations.

been

/>?;

that

sub¬

before mfddav, t^at the issue fmd
-books closed.
.

&

become

are

opportunities provided by private

announce,

oversubscribed

has

tendency to

a

mil¬

sponsoring
to

Co.

finding ample out¬
their funds through the

medium

indi¬

a

it

and

success

surprise

be

is

Consensus

lets

Preliminary
lion

&

(Special to The Financial Chronicle)

*

Operations

been

some

reservoirs

-benures.

the

3.55

on a

NOTICES

department of Shearson* Hammill

CHICAGO, 111.—Fred W. Schulz

Mohawk

activity on the part
of the so-called Big Five in con¬
nection
with
the .week's
large
offering.
But even :the
prime
name
and
the
attractive
yield
failed to bring them in as buyers.

develop¬

a

Niagara

inquiry for this bond was
noticeably. improved.

basis,

times since the turn of the year.
Tt took the form of a quick rise
to a premium for General Electric
-Co/s huge offering of 3%% de-

cated

not

may

DIVIDEND

formerly in the municipal bond

»g> >

Blair & Co. Inc.

TEXAS GULF SULPHUR COMPANY

witnessed

not

Fred W. Schulz Joins
*,rvt.iv.

effect

reported

underwriting fraternity this

ment

the

up

,

3%s, brought out

look for

treated

the

of

case

Power

Report
was

issue

have been quite as pronounced in

Reporter's
The

clean

to

that

.

while

And

the

week

able

been

"pot",,

63

(2411)

PVBLIC service
CROSSROADS

OF

IKE

EAST

A. E. WEIDMAN

April 26, 1956

Treasurer

The Commercial and Financial Chronicle

(2412)

64

Capital

(ton the Nation's

•

for

A

Behind-the-Scene Interpretations

•

t

gJ V/IH

y*

xJLf w%A/

.

Thursday, May 17, 1956

.

weight against the development
of bigness in banking to match
the bigness in
government, in
unions, and in business.
Dispersed,
relatively finan¬
cially weak banks may be easier

BUSINESS BUZZ

Washington

.

.

this

species

looting.

Vw

of government
Eisenhower Ad¬

The

ministration might

not even be

^unconscious of its motives in

^backing anti-bank
Afeelding

C.—
would

and demagogic
could

corporations

dis¬
the
which

million

or more

D.

WASHINGTON,
Scratch

one

subject

to

all

have assets of $2
and

of

minimum

a

"independent"

the financial
requirements
of

closure

SEC,

which

bill

stock¬

750

holders." '
This bill looks like it is

going
•

forgotten, buried,

to be

(D.

omitted.^,
^William Fulbrignt*

J.

Senator

securities

whose

panies

be owned

Market

'netted"

be

To

of

million

$2

and'

assets

of

banks.

a

poration had,

and

$10 million of.

say,

regulatory
After

into the SEC

come

maw.

the

of

be

proposition, to

disclose

now

their financial status.

The SEC's report
bright bill

due last Jan. 15

was

Then it

in

10

week

or

will

session

this

the

on

bill

it

the

is

is

then big money

power,

becomes virtue incarnate.
this

argument

been

agitated to

more

than two

no

decades.

that shot

of the dominant

through the

form

state

the

Committee

slick

cial

unlisteds

proposition

until

has passed the

there
ute

is

burst

of

it

is

to

Stops

inventory

merchandise,

catalog

it

in

for

the

the next few

For

most

gets

of

fact

Administration

of

enactment

of

regulate further the
to

a

he

told

he

me

dominant

death

sell

they

so

money

bank holding

a

acquiring control

bank

discovered

lines

ing

raise

off

pay

the

state

in

is

to

be

the

trick

bank

of

spend¬

deposit

reserve

the

or

.in lieu of the

Treasury

serve

great and variegated enter¬

a

if

a

instance, the Administra¬
tion has just launched the op¬
eration

plan, with bank
pension
funds
original cost.

under

bank

an

"in¬

the

gov¬

accomplish spending

it

showing

or

in

other

take

many

more

and

hous¬

the

form

more

more

budget

insured loan.

to

It will not

before

years

areas

be

can

and

Act

of Federal

shifted

For

21

some

the

guaranteed

and

the

additional

bill,

to

this

bill

of

is

the

that

would

them

credit.

as

This

theories
a

buy

behind

holding
up

banks and

captive
sounded




com¬

sources

of

plausible

has

periods

of market

prosperity and depres¬
Through the,years he has
helped guide Albert Frank-Guension.

in

Law

the

its

to

present

position

industry.

Mr. Guenther is

the

highly optimis¬

future

of

advertising.

industries

many

—

electronics, transportation, travel,
among
others—which will grow
larger through the increasing use
of print and electronic media.

(Special to The Financial Chronicle)

ATLANTA,
Johnson
have

been

French

Ga.

and

added

&

Garner

—

Thornton
to

D.

the

Crawford,

A.

Lane

staff

Inc.,

of

68

Spring Street, N. W.

Joins Mutual Fund Assoc.
STOCKTON, Calif.
Christopulos

is

Paul

—

G.

connected

now

with Mutual Fund

corporated,

Associates, In¬
529 West Alpine Ave.

Eisen¬

further

crimp bank mergers, to put its

TRADING MARKETS
Botany Mills

by

Fashion Park

to

Indian Head Mills
Geo. E. Keith Co.

buy banks

is

a

pretty

good

bet

Morgan Engineering

that

National Co.

enactment of such state statutes
is
'

years

numerous

(Special to The Financial Chronicle)

in the state.
It

non-

proposition has previously been
agitated to no conclusion.
One

,

lines

state

across

expan¬

of

of his own firm and

from

the

hower-backed

pur¬

state which

no

of

circumstances, it
might facilitate the government,
whichever party is in power,
through the Holding Company

frequently
unfortunately

a

month.

a

the

in

loans, instead of

the

Under

him

to

was

2 With French & Crawford

initially

spending

As this column has

but

allow

out of the Treasury.

in Madness

out

under

loan, to

particular "military

bank

approving holding
purchases unless the
weight of consideration is over¬
whelmingly in favor thereof.

pointed

deposit

what

through

envisions

100%

Reserve

been

for

ing" is hereafter to be paid for

for

mergers

He

In

would

at

Now in his eighty-fifth
year,
Mr. Guenther has witnessed three

ther

galore
are
over the place

budget.

Money
Power
(not
the
Government) would be quick to

Method

the

Street

advertising,

stupendous rental of $7

and
their
essential
basis of operation is to use the
sured"

backwards to

Federal

financing

or

of

tic

ernment to

i

the

financial

Frank-

Inc.

advertising
agency, is celebrating his sixtieth
anniversary
in
the
advertising
business. Back in May, 1896 Mr.
Guenther, who is known as the

Admin¬

bank

ready opponents of the so-called

Board

installment

insurance

Eisenhower

the

be

to

istration,

justify permission for a holding
company to buy a bank.
The

castigate

whereby
are

or

aids
Housing
springing up all

without

over

act

buildings
purchased on. the

Finally, the spirit of the act is
indubitably that holding com¬
pany banking is
bad as such,
Board

two-year-old

lease-purchase

bank.

Reserve

the

of

Federal

supervisory agency were grant¬
ing a charter to a proposed new

the

Law,

ton

For

extensively into the considera¬
than

Guenther

opened his first office at 108 Ful¬

be

involved

founder

a

Albert

dean

will first have to go more

tions

of'

to

organized, no
task, for the Federal Re¬

easy

Guenther,

director

Uncle

Sales Delayed

to

company

and

itial idea of the guaranteed and
insured loan, and blowing it up

However,
this
often
require a bank holding

would

Rudolph

estate

Theoretically, the Federal Re¬
serve
Board, which will
ad¬
minister the new Bank Holding
Company Act, can allow a hold¬
ing company in one state to
purchase banks
within
that
state.

60 Years in Adv.

the

prise.

Intrastate

Big

written,

dollar,
by taking Frank Roosevelt's in¬

Sam.

and

have

th©

Rudolph Guenther

Administration has

appropriated

begging

come

the

insurance

a

inde¬

surviv¬

the

can

to

an

others

Eisenhower

company

holding company has
office, unless the state

the

shareholders

ing

few

pur¬

removes

of

owner

not

state

across

when

even

may

in the

already

for

program

season.

was

expressly authorizes
holding companies from

bank

is

holding companies

ownership

educational

statute

bill

banking businesses.

use

years.

outside

bank

cials know of

provide for them to sell

their

pany

a

where

Congress next

strange phenomenon of the

sion of bank

the

when

chased by statute expressly au¬
thorizes such a purchase. Offi¬

Eisenhower

and

Report."

which the

any¬

Holding Company Bill Enacted

out

the

thing, the bill abso¬

one

its main

to

as

finally passed by the Con¬
gress,
the new bank holding
company act all but stops the
growth of bank holding com¬
panies in their tracks, at least

for

banks

have to lean

born

the

of

Holding

company from

new

known

Economic

action, and all pending
legislation dies \\dth the end of
this
Congress and has to be

A

■„

pretty

House

where in the

his

As

Even if

be

it

of

salable

lutely prohibits

before

another

as

likely that it will be too late for

again

unnecessary

Company Growth

year.

,

and

"President's

last-min¬

activity
said

this

political

no

after

Senate.

surprising

a

Senate,

and

leadership that

listed in that particular Federal

with this finan¬

disclosure

the

opinion

private

passed—was

politically

is

concerned, it wants to have
part of fooling

face-*

Inter¬

House

Commerce

original

adopted

expansion, and bank
mergers, for some reason does
not want the Fulbright bill.
as

Senate in the

and, in fact, bad. The President

company

far

bill

this proposition—at least in the

thing that it doesn't want.
For the Administration, while
flirting with all kinds of fancy
things to further regulate cor¬
poration mergers, bank holding

So

the

of

slow down with
deliberation on some¬

was

who

it wants,

holding

for

It

Eisenhower

D.

bank

had

success

company

can

big

the

gun

massive

meant

Government

becoming

the

it

They

tax

Dwight

zero.

chase

even

they

to

really tripped the

nearly

banks.

own

banks

which

ter how

For while
a Federal agency can move with
terrific speed to report on a bill

be

new

in

"money power" is bad, no mat¬

However,

late

no

pendent bank, and

power

enough sd that the prospect for
action

he

what

monopoly money power." Any¬
thing in the least approaching

money

was

transmitted

pe

groups,

When

10 days,

or

of

bank

which

it

but

due in
and it
didn't come, and so on. If it is
sent to the Banking Committee
and it

come,

another week

members

due

was

days,

chase
states

small, when it is in the
hands of private interests.

the Ful-

"at the latest."

THAT'S

was

but
the
nice,
demagogic
argument
which
clarions
the
cry
of "the big

.

on

"So

in¬

their

to

as

bill

self-dealing

dividual

what information such

companies

will

the

responsible for all of his firm's outdoor advertising!"

holding companies and the

of

subcommittee

the

to

the SEC

it

HELP CONQUER CANCER-GIVE!

really "sold" the hold¬

company

William Streets.

This will be the final session of

much the theoretical

The latter queried
by mail all corporations which
might be affected by the enact¬
ment of the bill, to please send

didn't

Nassau and

not so
possibility
between bank

ing

facilities,

at Pine Street between

ex¬

current

What

by the SEC.

a

bank

pushing, if

"Bigness" Argument Wins

report on the virtues and/or

rendered

]

at 4 p.m.,

any.

Committee sat back and awaited
vices

the

is

It

of its

some

and at dinner. The tour will start

considering the subject

last year the securities subcom¬
mittee of the Senate Banking

a

tkmrdbur of

pushing

with

doesn't fool

around.

Municipal

Bond Women's Club of New York
will be the guests
of the Tri-

borougb Bridge and Tunnel Au¬
thority bn May 24, on an inspec-

of¬

bank examiner is a guy a

a

aminer who does the

,

',

down hard,

crack

would

bank

assets but only 749 stockholders,

It could not

greatest

individual

of

Authority

The members of The

anybody tried to loot

If

ficials

If the cor¬

requirements.

care¬

as

them, the bank supervisory

minimum of 750 stockholders—
both

Visit Triboro

such

any

the

as

smallest

the

or

minimum

a

officials

visory

company

a

would have to have

to

individually

are

N, Y. Mun< Women to

banks

the

fully supervised by bank super¬

L

Fi

belonged

group

regulations

proxy

SEC.

of the

which

dis¬

financial

the

to

and

[This column is intended to re¬
flect the "behind the scene" inter¬
pretation from the nation's Capital
and

controlled by bank

or

"nay," or do
big jobs all by it¬

the

factor

background

companies,

of

may or may not coincide with
the "Chronicle's" own
views.}

though they might

even

government

self.
-

•v;

bought.

further

holding

traded in the Over-the-Counter

closure

the

some

A

are

evi¬

of

shred

a

restrictions.

projects lessen the con¬
tingency
that
banking
ever
might be strong enough to say

prise had been even attempted.
It was agitated as a potential
possibility by the opponents of
the holding companies. But the
holding companies have been
good
little
companies
who
haven't tried to loot any of the

is that

which

bill

adduce

and

merger

company

These

dence that this sort of an enter¬

banks they

Ark.) of the Senate Bank¬
Committee introduced the
would subject com¬

,

ing

enough, but the
banks scarcely

going

what

banks

be

to

with

no

the

facile

job,
independent

highly

organized
and
successful already on a Federal
scale in cutting down the com¬
petition of holding companies.
So

existing

companies

California,
after

will

in
for
be

well-run

FOREIGN

example,
to

SECURITIES

50 BROAD STREET

TEL:

holding

Minnesota

allowed

Carl Marks

HANOVER 2-0050

pur-

Co. Inc.

SPECIALISTS

NEW YORK 4, N. Y.

TELETYPE NY 1-971

Sightmaster Corp.

LEANER & GO.
Investment

10 Post Office

and

here¬

•

&

Riverside Cement

ry;\

Telephone
-

\

-1

'

HUbbard 2-1990
-

Securities

Square, Boston 9, Mass.
Teletype
BS 69