Full text of Commercial and Financial Chronicle : May 2, 1957, Vol. 185, No. 5634

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ESTABLISHED
v

d K

OF MICHIGAN

3 1357

MAY

BUSIKB.gayiitTxi

Rn. U. S. Pat. Office

Volume

185

Number 5634

New York

7, N. Y., Thursday, May 2, 1957

Price 40

Cents

Copy

.EDITORIAL

Is the Business Boom Dead? Quar*erly lnvestmentCompany Survey

We See It

By DR. GORDON W. McKINLEY*

It has often been said

by certain day-dreamers
the worship of Woodrow Wilson

much inclined to

joined the League of
Nations and worked faithfully for its
success, the
world would
really have been made safe for
democracy and World War II would not have

tually certain that when World War II

now

over

Nations

not

The

War

of world

does

affairs since

not,

however,

the

United
would
of

with

met

great

Nations

success.

actions

them,

for

one

perialistic ambitions
as

how

best

world from the

The old

vive and
,

have

protect

dealers

page

future

deems

discussion

and rails.
com¬

positions; total common stock and
and individual common stock trans¬

groups.

devote

the

quarter investment

preceding

quarter

when

balance of sales

net

company

whole re-emerged as buyers on bal¬
While defensive policies still

stocks."

reduced

was

there

had' actually

purchases of port¬
By contrast, in the March quarter,
on page
31, equity buying ex¬
ceeded liquidation by 44%. .Of 72 funds so
reporting, 48
as

over

stocks.

common

is shown in the Table

two-thirds

bought

commons

balance

during the

quarter, while 18 sold on balance and 6 units showed
stand-off. However, purchases of defensive
securities,

other

most

high

business

outlook, but i will also comment
briefly on recent developments in

than

governments, aggregated the exceptionally
of 80% over sales, and in dollar amount this
nearly equalled that of risk securities.
\
s
(

excess

Gordon W. McKinUy

Thus

cash

The business world is like any other world peopled
by human beings in that it is subject to marked changes
in psychology,
or
outlook.
Sometimes these general

Continued

page

note

re-ernerging evidence of basic confi¬
stock, in the face of misgivings
about the market outloojk and the opportunity to
employ
dence

the bond market and attempt to guess the course which
interest rates are likely to take in the months ahead.

the

common

fixed-income

yields in

securities

generation.;

*»■

offering

their highest

;

The Growth Stock Hang-Over

In the common stock
operations, the enthusiasm for
growth and glamor stocks continued to cool somewhat.

♦An address by Dr. McKinley before the Bond Club of New Jersey,
Newark, N. J., April 26, 1957,

coppers,

31 and 33 show funds'

major role, their predominance

the

folio

prices until
mind whether

should

pages

year's first

common

occurred

bond

has

sion.
of

.A-;;

Continued

control

Reserve

ance

clearly in
likely to head upward
toward even more lofty levels, or is
instead about to slump into a reces¬

"spheres of interest" notions still sur¬
clearly control the policies of many if

;

from

business

be able to agree
themselves and the
\

played

one

appear to

greedy.

policy which

respect

im¬

by industry

During the

appropriate. ; It is, therefore, impos¬
sible to come to any conclusions with

planners
Members of the

another

transactions;

Board

credit

Federal

Attitude mixed toward automo-

extended

any

managements

the

such

reason

performance

over

investment

ticular

much

hesitates to make use of the
organization as a
sounding board to reach all corners of the earth
with their special claims. Neither do the nations
which

of time

Tables appearing

determined, first,
by what is happening to business
conditions, and second, by the par¬

disagree

there

market

much

The

economy.

bond

period

as violently
as they
organization, and none
particularly the potential aggressors,

were

influences

evidence that the schemes of the world
have

technical

and airlines.

tives, banks, building, electronics,

deep-seated trends in

the

end

aircrafts

other

on a peace¬

offer

sorts

and

parative

promising footing.

course

World

competing high fixed-income yields. Managements favor
agricultural equipments, aluminums, - chemicals and
drugs, insurance, machinery, natural gas, oils, paper,
steels, utilities, rubbers and textiles.-. Liquidation hits

cal influences but

vigorous in its
support of various programs, financial and other¬
ful and

all

are

Confidence evinced in long-term equity
current uncertainties and the lure of

holdings in face of

operating in the bond market, the average price or yield
of debt securities depends
basically not on these techni¬

been

wise, designed to get the world back

flattening out at about current level;
(3) further moderate price-level rise.

Although there

say

that it has

rates

stocks.

common

moderate Federal Reserve restraint
continuing and inter¬
est

that this country has not been
participant in the affairs of the United

can

active

about $435 billion.

In addition, Dr. McKinley pre¬
(1) we have about reached the end of the long
housing decline and may witness a mild recovery later
this year; (2) tight money for the months
ahead, with

country would take part, probably a leading
part, in organizing the nations of the world for
the purpose of
maintaining peace henceforth. No
one

dicts:

this

operations during first quarter reveals shift from previ¬
ous
pronounced defensiveness to stepped-up buying of

it vir¬

was

Chronicle's analysis of investment
companies' portfolio

1957 should witness a
"very satisfactory," though not
remarkable, increase in GNP from $412 billion in 1956

general feeling that we had
left something to be desired in our attitude to¬
first world organization made

conclude that

activity leads Prudential's Economist

occurred. The rather

this

less Defensive

Examination of major segments
comprising total business

that had the United States

ward

Funds' Portfolio Policies

Director of Economic and Investment Research
The Prudential Insurance Company of America

•

Continued

page

SECURITIES NOW IN REGISTRATION—Underwriters, dealers and investors in corporate
securities are afforded a complete picture of issues now registered with the SEC and poten¬
tial

undertakings in

our

"Securities in Registration"

Section, starting

State, Municipal

38.

page

and

U. S. Government,
Stale and

Municipal

STATE

Securities
telephone:

COPIES OF

HAnover 2-3700

CHEMICAL
CORN EXCHANGE

BONDS
BROKERS

BOND

DEPARTMENT

BOND DEPARTMENT

AVAILABLE

REQUEST

the

THE FIRST NATIONAL CITY BANK

Burnham
MCMBERS New

YORK

and

ANO

Company

AMERICAN

STOCK

15 BROAD STREET, NEW YORK 5, N.Y.

Harris, Upham

OF NEW YORK

Members

New

York

Stock

Exchange

Chase Manhattan

EXCHANGES

•

014-1400

Bond

120

Dept. Teletype: NY 1-708
34

TELETYPE NY l-22«2

Net
To

T. L.W ATSON &CO.

Active

ESTABLISHED 1832

Banks

Orders

CANADIAN

from

coast

BANK

coast

Executed

for California

OF COMMERCE

Municipals

Rights

offer

which
at

buy

expire
the

the
May

current

Direct Private

above
17,

rights
1957,

market.
Wires

Toronto,

Montreal, Winnipeg, Calgary,
Vancouver, Victoria and Halifax

DEPARTMENT

Teletype NY

offices

THE CANADIAN BANK

Brokers

Canadian Exchanges At Regular Rates

American Stock Exchange

BROADWAY, NEW YORK

Maintained

and

SECURITIES
Commission

New York Stock Exchange

Markets

Dealers,

CANADIAN

Members

INSURANCE STOCKS

NOW
ON

CABLE: COBURNHAM

BANK AND

Bonds and Notes

REVIEW"
ARE

DEALERS

•

OUR

Public Housing Agency

"COMMON STOCK

UNDERWRITERS

BANK
30 BROAD ST., N.Y.

MUNICIPAL

AND

1-2270

MUNICIPAL BOND DEPARTMENT
25 BROAD

STREET

NEW YORK 4, N. Y.
FIRST

£out/U0€4t

DIRECT

WIRES TO

Goodbody
MEMBERS

COMPANY

BRIDGEPORT

•

PERTH AMBOY

MONTREAL AND TORONTO

115

NEW YORK STOCK

BROADWAY

NEW YORK

NORTH

Dohmiox Securities

Co.

Grporatio?i

Unttk of America
NATIONAL

EXCHANGE

SALLE ST.

CHICAGO

Exchange Place, New York 5, N. Y.

Teletype NY 1-702-3

WHitehall 4-8161

J!VVnos ASSOCIATION

300 MONTGOMERY STREET
SAN

FRANCISCO, CALIF.

The Commercial and

Financial Chronicle

Thursday, May 2, 1957

(2046)

The

only

Hanks, Brokers, Dealers

For

week, a different group of experts
and advisory field from all sections of the country

in the investment

for favoring

participate and give their reasons

Louisiana Securities

particular security.

Nortex

Limited Partner, J. R. Williston

Complete OTC service

faster

...

and

earnings. One of the smaller

Inc., New York City. (Page 2)

Steiner, Rouse & Co.
Members New York Stock Exchange
Members American Stock Exchange

crude

19 Rector St., New York 6,

remarked that the oil producing companies with an parfS)
coolant
pumps,
tractor
business cycle of the future will outstanding growth record in these wfteei
weights, and truck and
consist of alternating mild and vital categories during the past tractor power take-offs.
three years is Nortex Oil & Gas
Do,
intense inflationary periods.
A

better executions,
for you.

mean

Starring, Jr., A. C. Allyn & Co.,

oil and gas reserves, (2)
gas sales, and
(3) cash

(1)

oil

Bought—Sold—Quoted

Mason B.

Detroit Harvester Co

the amount but also the trend

Gas Corp.

Nortex Oil &

& Co.

York City

New

and

3. Broad contacts

not

and natural gas company are

GORDON Y. BILLARD

trading

Large, experienced
department

Gas Corp.—Gordon

(Page 2)

City.

system
2.

Oil

Billard, Limited Partner, J.
Williston & Co., New York

intended to be, nor
sell the securities discussed.)

they to be regarded, as an offer to

are

Alabama &

Participants and

Their Selections

(The articles contained in this forum are not

wire

private

Nationwide

Week's

This

Forum

A continuous forum in which, each

Try "HANSEAT1C"
Because Our

Security I Like Best

once

wag

New Orleans, La. - Birmingham, Ala.

Mobile, Ala.

■

that

it may, one

New Yoik Hanseatic

the

Corporation

BOSTON

Wires

to Principal

table below:

reserves.

The

this

Specialists in

RIGHTS & SCRIP

barrel

price

using

$1.25 per
figure,

average

According to the latest figures
cost

Since 1917

°an

(on

industry-wide

assets

Main

Continued

basis)

Drilling Contract Revenue

American

BROADWAY, NEW YORK 5

120

(excl. of oil reserves) 2,865,827
Oil and Gas Reserves (4)__(bbls.) 6,106,669

Net worth

(1) Before deduction for depreciation, depletion,

Trading Interest In

write-off

(2) Company
is

Tax

Furniture

American

Industries

Furniture

of Va.

$1.65

gas

for

Due to

crisis has

further advance

Industries

Midwestern Instruments,
Inc.*

"B"

Request

•

and

(assets

All

TRANS-CANADA

the company has
change in product

PIPE LINES
Limited

new

intention to proT
title within the next

WISENER

AND

fiscal

year

the
with" greatly
started

blacklogs in their industrial equipment and MotoMower Divisions. Profit margins
have also been improved, result-

Trading Dept.

(

Toronto, Canada
EMplre

Y8'204

.increased
1

ing in

favorable report for the

that full year net
should approach $3.50 per share
as compared to $3.05 -per share
for the fiscal year ended 9/30/56.
As of Sept. 30, 1956, the corn-

is / expected
.

'j^M

•

COMPANY

LIMITED

78 King $t West

Detroit ^Harvester

9
M':

month.

;

well-

ML*

Bankers

Markets Maintained
Securities of —

the

Burns Bros. & Denton

pany

showed total current assets
million and current lia-

INC.
37 Wall Street,

New York 5. N. Y.

Underwriters—Distributors
v

Dealers
Investment Securities

$i6.6

H||

bilities of $7.7 million, or a ratio
M # M^^M of 2.2 to 1. Net working capital
was $8.9 million and book value

Zanesville,

Canadian and Domestic *

share $23.78.
Capitalization
consisted of 536,655 shares preceded by bank loans in the sum
w0f $1',580,000. Dividends have been
per

hOVJK I/VO

.JP

Paid for 22 consecutive years and
fhe present annual rate :is $1.20

m. b. starring, jr.

per

share.

automobile manufacturers new and aujed fields * The outwindow regulating ,
k
f
fh
industrial linp as
percentage rate of growth, mechanisms, con ver t lb 1 e top
eU as Moto-Mower is excellent;
Hence, due allowance must
be frame assemblies and their hy- ;an
entjre
new.
!ine
0f
jawn

wise

true that the bigger

pany,

the com-

the slower will normally be

•Saving*

major

hardware,

the

Racing

made

certain

yardsticks

to
value
plus greater growth factor in the
measure

present

smaller company

Atomic Fuel Extraction

intrinsic

although all too

frequently the premium for growth

Mach.

is evaluated

many

rather fantastic

Thus,
small

CAPPER & CO.

Dlgby 9-3424

for

instances in

terms.

unusual
company

less

than

Vital

appraising

any

its

nothing

considerations

small

Hardware

umec^Ln|jm"

for the household appliance
dustry is also produced.

mowers will be introduced next
year.' which
should-'greatly in¬
crease
sales for this division.

in-

Through its Moto-Mower Divi-

though sales and
earnings could experience a sharp
It

Richmond,
Ind., the company is one of the
leading manufacturers of reel and

sion,

with

plant

appears

increase in fiscal

crude

•

oil

cal

motors

and include

Paris,

Ky.,

the Paris Prod-

ucts Division produces

Quotation Services
for 43 Years

National Quotation Bureao
Incorporated

speculative possibilities for indi-

self-pro-

pelled and riding types.

Over-the-Counter

1958, and in my

opinion,
common
stock,
while
rotary type lawn mowers for providing a return of about 6%
homeowner use. These mowers at current market price of about
present are driven by gasoline or electri- 20, appears to possess outstanding

being paid for the growth po-

tential.

^rau|jc

find a
which is

intrinsic worth and where
•

2-8570—Teletype JCY 119

growth

selling

Exchange PI., Jersey City, N, J.

Investment

Trading

Firm

40%"ain automotive

$25 million)
are
not as
•
The company is currently iobstatistically as the larger
The Dura and Motor State t a i n i n g additional automotive
integrated companies whose as- Products Divisions with plants
business for i958 models and new
sets may
be worth hundreds of Toledo, Ohio and Ypsilanti, Mich.,. nrnH]]_t„ arp
nnw
hpin« intrn_
millions of dollars but it is like- are substantial suppliers to the duced
and
others developed in

Southland Racing

Oirect Wire

come

1922 as
a
small "first' six -months ended 3/31/57.
manufacturer of agricultural im- Earnings for this period amounted
plements, Detroit Harvester has, to $2.15 per share vs. $2.01 for
in the short space of 35 years, be- the same period last year and it
Starting

de- managed comhigher pany manu-

companies

volume

management's

•

agricultural
equipment is
manufactured
at its plant in

smaller

Brokers

70 Branches

Broadway,N.Y.6 COrtlandt 7-5680

111

that

major

"current

Inc., New York City %

Ltd.

1897

—

cheap

Sterling Oil

HEnderson

•

Tokyo

Oflice

under

these

1930

Mohawk Business

Federal Income

million cubic feet of gas
bbls. of secondary

opportunities for large percentage
capital appreciation - without too
great risk. It is true that most of

Tel. HAnover 2-4850

San Juan

one

sales

and in order that the corporate name be more indicative
of
current operations, it is
the

De'r0lt Harvester company

agement still provide outstanding

Loft Candy

facturing a
by
diversified
only further enhance the value of line of proddomestic oil and gas reserves.
ucts
for
inMany of the small capitalization 'dustry in gen- "
domestic crude oil and gas pro- eral.
ducing companies which are in a
T h e c o mdynamic growth phase under an pany's
origiaggressive and resourceful man- nal line of

Preferred

therefore,

thad

pose

recent
the

Established
Home

•line;

profits reported obtained
Iran in its Italian deal, can

Consolidated Retail Stores

ESTABLISHED

split in

Aerojet General

37 Wall St., N. Y.

273,360
500,000

Partner, A. C. Allyn and Company,

vulner-

reserves

other
such as

velopments1,

Trading Markets

the

dramatized

Yamaichi

total

about

ments,

MASON B. STARRING, JR. >

1955 to find"
This com-

with

together

basis

the

write

Securities Co.,

parts and the balance in diversi¬
fied
lines.
It
is
readily seen,

abandonments and dry holes, and
*
1 *-

oil in process of development.

ability of Middle East

*Prospectus

Call

million in fiscal 1956, 10%
less was in harvesting imple¬

total reserves include 3,089,000

costs, the comparable figure
when
published
for
1956
will
probably
be
higher. The
Suez

TWX LY 77

Riverside Cement

oil

Lynchburg, Va.

•

For current information

$47.4

earnings so that

putation excludes geological and
geophysical expenses and lease

STMOER and COMPANY, Inc.

Eastern

net

appear to be stirring due
improved Japanese economy.

position in the auto-

i./
the

and depletion.

depreciation

converted

barrel

per

taxable

spend

develop crude oil.

rentals.

LD 39

equivalent to 50 bbls. of oil;

and

Commonwealth Natural Gas

policy

175%.

due.

recovery

Life Insurance Co.

deferred charges.

deduction

(3) After

(4) Includes

Bassett

NOTE—

practically

415,171

1,879,641
1,142,092
3,076,608

_1 5,935,136

Gross Assets at Cost (3)

TEL. REctor 2-7815

remaining

now

Danville Products Co., Inc., of
Danville, 111., was acquired to
and strengthen the

$4,796
(67,632)
20.983
62,657
-0-

273,818
967,253
33,891

stationary levels for three years

8 years of approximately 118% and
increase in income of about

on page
1954

200,507

Crude Oil and Gas Sales

Exchange
Exchange

Stock

Earnings (!)

Net Earnings (2)

Members

York Stock

New

„

consist of company's

$495,633
159,626

$747,803
28,441
588,842
1,158,089

Equipment Rental Income

"McDonnell &fo.

after

to supplement

open

1955

1956

Cash

STOCKS

at a plant in Monroe,

proven oil and gas reserves, oil motive field.
an(^ &as equipment which it leases,
Largely as a result of this
and net working capital. Capitali- planned diversification, the cornzation contains a high degree of pany has1 been able to show an
leverage and on Dec. 31, 1956 wa* increase in sales over the past 10

for the future,

reserved

Quality oil and gas reserves today
command

always

may

question.

former

rnay

Billard

Gordon

reference

the

which

branch offices

our

JAPANESE

...

Division

P°wer mowers.
^
I
"
On March 1 of this year, the

does not own any large
undeveloped acreage, the value of

latter, fur¬

ther

not

to evaluate since the

company

be confined to

the

one

situation

Nortex

difficult

discussion will

Cities

presented in the

statistical data is

gas

Aluminum

Mich., produces permanent mold
aluminum castings used in the
automotive industry as well as
supplying deck covers for their

ments, depletion and depreciation.
Brief
tabulation
of
pertinent

ground

Since

equipment

leases and reported in 1956 a■
:
operating income of $747,803 . Paragon
before
write-offs
for
abandon- operating

un¬

oil and

FRANCISCO

SAN

•

der the

a"d f„her,i"duSa
,n the automation

ie„c,

interest in 146 oil and

net

air seat

miles and

CHICAGO

•

PHILADELPHIA
Private

Exchange

owns

wires to

Direct

sprav

manuiac. u ei oi sp ay
■,0°ths' ovens washers, dust col-

gas

the

ground is pas¬

Teletype NY 1-40

4-2300

today

senger

New York

Broadway,

120
WOrth

bar¬

above

Member

Stock

American

gains

1920

Established
Associate

apparent

biggest

™anufacture?nof

The company was formed
in 1954 and at that time owned
an interest in one producing lease
with no immediate Interne; today

Corp.

N. Y.

NY 1-1557

HAnover 2-0700

vidual
traded

automobile Market.

accounts.
The stock is
the Over-the-Counter

Established 19 li

46 Front Street
CHICAGO

New York 4,
ban

N.Y.

francisco

Volume

185

Number 5634

The Commercial and Financial Chronicle

(2047)

Proper Functions and Supply of
Our Different Kinds of Currency

INDEX

Executive

Vice-President

A concise
is

catalogue of

(1)

should obtain its

by taxation

'
*

Proper Functions

stable prices, or "full

•

Relation of

supply of
-to functions of dif¬

employment."

currency

tary

proper

("Chronicle's"

metals

____€over

Supply of Our Different Kinds

exchanged her obsoletes

Spahr__^

;

Obsolete Securities Dept.
99

—Ira U. Cobleigh

WALL

STREET, NEW YORK

Telephone:
^

Savings Banks'

—Jules I.

Future

Role

and

Prospects

the

Bogen_

forms

WHitehall 4-6551

Economy

Relatively Good Farm Year Ahead—Roger W. Babson
Government and Business—Emerson P.

UNITED WESTERN

MINERALS
Schmidt

other

JILL

The Per kin-Elmer Corporation: Precision in
Vision

The Squeeze

(1)

Defensive

• v-

financing of government, and (4)
cannot achieve rising productivity,^;.jw

manipulation

and

Currency—Walter

overdrafts from improper
currency

Less

for JACK at 99 Wall Street!

by
borrowing from the people's savings and net by creating fiat
money or deposits and notes issued against public debt; (2)
a
proper banking system and a typical gold and silver supply
can support a
relatively large self-liquidating credit volume,
and productive-exchange activities;
(3) one should distinguish helpful Federal Reserve purchase of "one-day" Treasury
money

Policies

Quarterly Investment Company Survey)

by nationally known expert in reviewing the
functions and supply of currency. Dr. Spahr observes:

a government

Portfolio

and credit

money

delineated

proper

Cover

JACK & JILL

Funds'

•

different kinds of

our

McKinley

Monetary Policy

Page

AND COMPANY

Is the Business Boom
Dead?—Gordon W.

By DR. WALTER E. SPAHR

Economists' National Committee

LlCHTtnSTfl

B. S.

Articles and News

COMMONWEALTH

Prices, Profits and Production—John Post--

OIL

different peoples, it :
/^Worl4 Industrialization's Impact Upon 1 Inited States Exports
provides the best monetary stand¬
7-'—Walter H. Diamond—
11
ard among nations.
A noticeable characteristic of
As a conse¬
much of the current discussion of quence, it should be, if possible,
No Magic in Monetary
Policy—William McC. Martin, Jr.__.__ 12
the supposedly-proper supply of the standard within nations. Other¬
our currency is the lack of clearlywise, a nation has, or tends to
"
"
Effect of Recent Court Decisions on
stated criteria
have, two different standards—
Security of
money among

ferent types of currency

as
er

functions of

prise
the

kinds

Spahr

various

functions

mestic

and

money

fused and

different

each

credit

kinds

often

are

money,

and

international

(b)

Gold

Regular Features
'As We

perform
dium

the

functions

of',exchange

house of value in

perform

practice

common

because

functions

does

interchangeable
the

supply

our

far

rect criteria

ply of
the

various

our

differ

rency

nature

and

kinds

which

of the

with

meets

plex economy, such

nation,
credit

variety

able

and

money

need

gold, silver, minor coin, paper
money,
and demand deposits of
banks (deposit currency). Each of
these various types of currency
has
its
virtues, limitations, and
appropriate functions.
.

(2)

Proper

(1)

Hycon Manufacturing

Three States Natural Gas

Mutual

& V.T. C.

Funds

News About Banks and Bankers

0."

Our Reporter

value,

Governments-

supply

its

freely imported
their owners in

Public

gold

Utility Securities-i____v

i—--

Railroad Securities

change,
tional

against
medium

settler

balances,
uses,

^Prospective Security Offerings._____—

Security

interna¬

non-gold
of ex¬

(e)

varieties

bullion
make

all

face

value

types

Continued

The State of Trade and Industry.___i_
i
•

•.

;

•

Washington

•

" i-

•

Quarterly

Twice

and

CHRONICLE

Nashville

•

Chicago

Schenectady

•

Glens Falls

2-9570

vertlsing

SEIBERT,

DANA

state
state

issue)

citv
city

every

issue

corporation

and

—

Chicago

Offices:

111.

Dana

news

135

and

Possessions,

United

Territories

Pan-American

Union,

Dominion

Canada,

Monday

Other

ad-

(com-

quotation

bank

Bank

clearings,

and

$60.00

States.

W» V. FRANKEL & CO.

Members

year:

per

$63.00

per

BROADWAY, NEW YORK 6
WHitehall

3-3960

Teletype NY 1-4040 & 4041

Record — Monthly,
(Foreign postage extra.)
.

year.

Publications

„

INCORPORATED

Quotation

j4o:oo per year.

thg

South

STate

.•

Reauest

Direct

wires to

PHILADELPHIA

DENVER

Note—On account of the fluctuations In

etc
etc.).

(Telephone

i *

*Prospectus

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

oth« Countries, $67.00

market

news,

news
news,

President

Worcester
Other

•

1957

(general

and

statistical

records,

Eng-

Subscription Rates

9576

Thursday, May 2,

Lucky Mc Uranium

New York 7, N. Y.

SEIBERT, Editor & Publisher

Thursday

IJ.

Reentered as second-class matter Febru-

Every

Subscriptions

WILLIAM

ary

COMPANY, Publishers

DANA

Place,

Florida Steel*

on cover page.

Reg. U. 8. Patent Office

HERBERT

plete
•

United Western Minerals

Portfolio

1 Draper*'
Garden*, London,
land, c/o Edwarda & Smith.

Weekly

COMMERCIAL

Park

"Funds'

Survey

not available this week.

:i:Column

ST., NEW YORK 4, N. Y.
TELETYPE N. Y. 1-5

;

^Policies Less Defensive" starting

REctor

Exchange

San Juan Racing ;

You

and

"Chronicle's''

tSee

Spencer Trask <Sl Co*

1
v \

•

cur¬

page

•'

•

WILLIAM

•

Universal Transistor*

:——

TELEPHONE HAnover 24300

Vitro Corp. of America

Stock

Streete

and You—By Wallace

The Security 1 Like Best

FINANCIAL

York

_—

media
of
exchange
freely exchangeable for,
redeemable in, standard gold

coin

Corner—

Boston

Dallas

valuable

All

Salesman's

The Market-

have specialized in

•

Los Angeles

per¬

substitute
would

Philadelphia
Chicago

metallic commodity for non-mone¬

tary

^.Y.

standard

Exchange PL,

storehouse of value,

reserve

Teletype NY 1-1825 & 1-4844

——

Securities Now in Registration

For many years we

Albany

HA 2-0270

Direct IF ires

desires, and
bullion would

functions

currency,

mone¬

New

Singer, Bean
& Mackie, inc.

Members

7 V.

Our Reporter's Report

Published

BROAD

v'"'-.'

Observations—A.Wilfred May

The

•'•

standard of

gold in all its forms to

order

of all

Pacific Uranium

bullion to

or
a

coin
value

Functions of monetary gold.
rency legally issued equal in value
gold has the most uni¬

acceptability

Because
versal

Standard gold coin and

would

value,

functions and

of monetary gold

215

Indications of Current Business Activity--J

store¬
people

freely held, exported, or im¬
ported at its market value, to en¬
form

for

JOY

—

HEnderson 4-8504

Teletype:

From Washington Ahead of the News—Carlisle
Bargeron

of exchange, and as
of payments

non-standard

The

Stocks

•

Permutit Co.

settler

exported

com¬

Cover

accordance with their

that of this

required.

gold
and

storehouse

(d)

bullion

needs

the

people involved.

ultimate

for
coin

medium

due.

functions

proper

best

as
an

cur¬

accordance

of each type of currency,
r
A proper currency structure
one

value,

the proper sup¬

Cor¬

the people as

serve

currency

(money and bank deposits).

(Editorial)

me¬

and

fineness

same

permit gold

credit; erroneous contentions are
often, possibly generally, ad¬
vanced, for these and other rea¬
sons,
as to
what constitutes the
proper

Exchange PI., Jersey City

standard fineness would be freely

not

belonging

7 ;.'.7-

Finzig: "Will There Be Additional Sterling Defense Tactics?"-

choose to employ it for these
purposes,
(c)
Gold
bullion
of

only to another
variety of currency—for example,
gold

"'•';.

'■.

.Dealer-Broker Investment Recommendations-:

may

assignable
been

See It

Bank and Insurance

would be coined freely into money
of convenient size to enable it to

con¬

misstated; various kinds

erly

has

Salt Lake City Stock Exch.
Spokane Stock Exchange

both

for

Members

DIgby 4-4970

use—for

value

J.F.Reilly&Co.Jnc.

;

standard- fineness

functions alien to them and prop¬

unit is defined for do¬

standard

our
money are sometimes criti¬
cized because they do not perform

criticize

Failure of Spring Pickup to Materialize Leaves Business
Good,
Not Better, Aver Purchasing Agents____
t

would

full gold stand¬
would be the money

immediate and deferred payments,

fulfill

perform better

can

example, in this country, a stand¬
ard gold dollar of 15-5/21 grains
9/10 fine, or 13.714-p grains, fine.
This monetary unit would serve

type of money and credit is able
to
perform.
Functions
properly
performed

7 According to Dexter M. Keezer

the

which

(a)

ard money

aggregate, to
the

TEXOTA OIL

serv¬

metal in terms of which the stand¬

rency

permitted

other

any

ard:

currency, and
'of
our
cur¬
Walter

perform those of

differ¬

our

ent

gold

than

the

:proper supply
of

FERRY

High Capital Spending to Continue in Next Four Years,

the functions it

relation-

exchange of goods and

cur¬

and

rency

ship

:Cv Municipal Bonds—David M. Wood.

ices.

com-

our

exchanges,

arrangement impedes the

free

kinds of money
and credit

which

international

TMT TRAILER

another for domestic transactions.
Such

different

our

one

to the prop¬

LING INDUSTRIES

___

Salle

St.,

2-0613);

fate

exchange

remittances

for

for-

eign subscriptions and advertisements must
be made In New York fund*.

SALT LAKE

CITY

The Commercial and Financial
4

instruments,; One of these is the

The Perkin-Elmer

Corporation-

U. COBLEIGII

By IRA

Enterprise

remarkably sensitive instruments
are super sleuths.
They can iden¬

Economist

rapidly expanding enterprise that has mag¬
nified the vision of mankind by telescopes, periscopes and

A swift look at

■i

spectroscopes.
Back in the

lived

there

with

1920's in Brooklyn,

young

eager

man

amazing natural flair for

the

mechanical and scientific.

age

most

when
people

- -

between

Thursday, May 2, 1957

an/

1 d as¬
re¬

K D K A

crystal clear
on
anything
from a crystal
earphone set
a

Couieigu

job.

like putty in

securities,

Perkin profes¬
sionally entered the field in which
he had for years been an active
1937,

Richard

and expert
In

amateur.
to mechanics

addition

electronics,

checked

and

actual

when

particularly

object

the

question flies dozens of miles high
at three miles a second?
Perkin-

supplys the answer in its
(Recording Optical Track¬
ing Instrument)
Mark II.
This
outsize
camera,
that looks and
Elmer

ROTI

young

visit

you

It's

organization
zealous .workers.

essentially

and
Norwalk

of
A

•

reveal

will

plant functionally laid out,

efficiently

replete

and

lighted,

with remarkable machines to turn
out instruments

meeting the most

exacting standards. Employee
morale
appears
ideal.
No
one
rushes, no one loafs. You detect
throughout an air of dedicated
craftsmanship, of pride in design,
creation and finished product. As
a result, Mr. Perkin, the company
and
a
number of its scientists,
have been honored with achieve¬
ment awards and citations of gov¬

points like a field cannon, is the ernments, universities, scientific
most/ perfect instrument in the societies,' and the branches of our
for

world

accurately

...

alWL auto¬ Armed Forces.

are
indispensible
in
the early phase now, may possibly
processing of literally billions of displace radar. These systems have
dollars worth of petroleum and application in warning and map¬
walk, there is also a German sub¬ chemical finished
ping and in missile guidance. They
products.
could even "photograph" an un¬
sidiary plant, Bodenseewerk
More easily appreciated are the
Perkin-Elmer & Co., GmbH, em¬
derground
war
plant, presently
P-E products of its Engineering
invisible to radar or camera.
ploying 350 personnel.
and Optical Division. A swift look
When
this
Most of the maior aerial lenses
uniquely effective
at the national budget, and refer¬
scientific enterprise was launched,
for large scale surveys have been
ence
to the recently announced
on
a
minute scale, in 1937, the
designed and built by P-E. In one
British
defense
plans, convince
main program was development of
instance, they built a panoramic
even the most skeptical that mili¬
camera
so
versatile and nrecise
high precision optics and optical
tary prepotence today depends on
that it could Dhotograph the en¬
engineering.
The
management
missiles. Nothing in our defense
held a conviction, from the very
tire state of Pennsylvania in half
strategy is more vital than the
a day.
outset, that there was no reason
Finally, practically all of
swift development and supply of
why America should forever play
the modern bombsights in use by

had

and

developed

consuming interest in astronomy
and the marvellous precision tele¬

vices

In addition to the efficient

attractive

and

member
of a New York Stock Exchange
firm.
But science intrigued and
fascinated him all the while and,
tion

tested

flight, and corrected for any error
or
deviation in projected course.
And how do you do this checking,

technicians at Perkin-Elmer.

globe.

model T
his hand.
His name? Richard S. Perkin.
The years that rolled by saw
him attain success in the distribu-r
cau.net

was

production companies in the

most renowned universities on the

Ira

tube

custom

poration. In the 20 years since,
enterprise has grown into one
of the most distinguished research

way

(Pittsburgh)

Ford

Cor¬

tify and measure almost any or¬
ganic chemical compound. They
permit the synthesis of and assist
in the production
of penicillin,
control ethylene polymerizations,
solve crimes by identifying paints,
drugs or fabrics: they signal air
pollutions or poisonous gas con¬
centration in mines. They appraise
the combustion efficiency of auto¬
motive
and
jet
engines.
Then
there are F-E~ ultraviolet spectro-:

our

matically tracking,, recording and
Today at P-E t^e-Norwalk plant
photographing, the flight of mis¬ is undergoing a 70%, expansion to
siles. ' Theoretically, under ,ideal take care of its rapidly rising but
conditions, it could photograph a carefully selected business vol¬
spectrometers are missile 3500 miles up. (Somewhat umes. Essentially P-E aims ajt top
research
facility functionally produced, which measure purity similar equipment, for which P-E flight
custom
tailored
research
spaced on a 30-acre area in Nor- or element
compounds in ethy¬ will make the optics, will be used and design and the delivery of
walk, Conn.
The premises are
to
track; the
widely heralded finished precision products. ~ For
lene, isobutane, and monitor ordi¬
virtually awash with scientists, nary water in heavy water re¬ Earth Satellite.)
'
the supoly of many components,
'•i
Other defense products of P-E and to increase total
physicists, engineers and techni¬ actors/ ; All
this
may
sound
output, P-E
cians,
many
of
them
holding complicated, as indeed it is, but include military Infrared Detect¬ relies on a group of subcontractors
graduate degrees from some of the these
brilliantly engineered de¬ ing systems which, although in an who have proven capable of vol¬

pair any radio,
set, and bring

optics, electro - mechanics, photometers, v a p o r ftactometers
infrared and ultraviolet spectro¬ and" Flame; Photometers
which
meters.
Today the company function in areas where the in¬
grosses over $10 million a year, frared instruments leave oft?
and has an ultra modem plant and
Plant Stream

and a

c o u

semble

astronomer,

Perkin-Elmer

this

electro

heterodyne,
he

amateur

The

entire world in the field of optics,

difference

ensyme

founded

and

tell

couldn't
the

...

Elmer,

mately to defend our country and

of life, it must possess
formidable sounding device which three flight qualities — depend¬
may cost from $3,850 to $17,500, ability, accuracy and speed. Now
matter
how, precisely
our
A major chemical, petroleum or no
research organization simply can't brightest scientists blueprint the
control systems, these have to be
operate today without one. These

Inf rared Spectrophotometer, a

Precision in Vision

'to

Chronicle

(2048)

facilities

second fiddle to the world

famous

optical producers of Europe. How
well P-E has achieved its original

reliable long range

ers.

rocket-bomb¬

P-E delivers essential electro-

components

optic

Infrared

nose

cones

for

these:

made

be illustrated by the fact
polished optical quartz, that perscopic lenses that could bring the that the great Carl Zeiss Company mit the missile to zero in on its
is today a licensee under a Perkinheavens to earth, visually.
target with lethal accuracy; and
Elmer patent on a high quality
If this all seems a bit biographi¬
theodolites that correct the euidphotographic lens design.
ence
cal, it was only to set the back¬
systems of missiles before
Now the products of
Perkin- thev are launched.
ground for the organization, The
Perkin-Elmer Corporation, which Elmer are not of the sort to be
As you know, missiles are di¬
has since become the lengthened sold at Sears Roebuck, or to be
rected in flight by a maze of com¬
shadow of its founder.
In 1937, found in the average American
with
a
capital
of $1,000, Mr. home. P-E designs and produces plicated electronic controls and
Perkin and his friend, Charles W. a fascinating array of laboratory circuits. If the projectile is ulti¬
goal

may

the

Air

signed,
or

Force

today

de¬

were

include optics produ^d

designed, by Perkin-Elmer. The
in aiming eyes for the
B-52

new

the.;

bomber,

bombsight system,

MA2

completely

was

Perkin-Elmer
bombsights
but
periscopes and fire control
computing mechanisms as well.
engineered by P-E.
has designed

/Want
track

not only

to/look

the

moon,

comet,'or photograph the

MiJJcy, Way? ; Perkin-Elmpr has
made many of this country's large
Schmidt variety
of Meteor and
cameras.

;

■

•

B. HORNER

EDWIN
KYLE

some

R. BARKSDALE

the

T. ALLEN

WILLIAM

dwelt

we've

T. ALFRIEND, JR.

WILLIAM

W. BROOCKS

JOHN

announce

that

HOWARD

M. BROWN

length

M. BURROWS, JR.

JOHN

the

name

our

firm

J. CHAJKA

JOHN

W. CRADDOCK
B. DRINKARD

GARLAND

M1/ //;/ has

been

changed from

A.CONRAD
EDWIN

ELSIE

Scott, Horner & Mason, Inc.

C. FITZGERALD

gross./•;'.//■;''
For

the

investor

about

the

future

satellites,
sneer*

the

creative

has

been

ootics.

this

work

comoany

doing at the very fron¬

And

constantlv

instruments,

common

the

Elmer

due

H. JACKSON

GEORGE J. LARKIN, JR.

W. MEHAFFEY

loss.

that

BERNERD

W.THOMPSON
S. TWEEDY, JR.

WALTER

the

credit

unceasing ef¬

IT IS WITH PLEASURE

optics- on

Equitable Sees. Corp.
DALLAS, Texas—Fred R. Dea¬
ton,

become

has

Sr.,

associated

ration, First National Bank Build¬
ing,

Co.

sales representative.

Company

and

with

Central

Investment

and the

Mercantile

ADMISSION
—

E. BENNETT

JEAN

BRUCE

MR.

CHARLES H.

DAVIES
SNYDER

AS LIMITED PARTNERS

—

MRS.

JEAN

K. BLOCH

JANE

K. FRIEDLANDER

MR. JOHN R. LEWIS,

FORMERLY A GENERAL PARTNER,

HAS BECOME A LIMITED PARTNER,

THIS

SECOND DAY OF MAY, 1957

BENJ. D. BARTLETT &
MEMBERS

NEW

STOCK

YORK

MIDWEST

STOCK

CINCINNATI

WATSON, JR.

STOCK

CO.

EXCHANGE

STOCK

WOOD

EXCHANGE

(ASSOCIATES)

313 Vine Street

Cincinnati

2, Ohio

prior

Texas

GENERAL PARTNERS

MR.

Mr.

formerly with E.

was

P. WISMAN

W. BASS

Fred Deaton, Sr., Joins

WE ANNOUNCE THE

TO OUR FIRM AS

AMERICAN

PAUL

your

top National Bank.

forts of the balanced teams of

C. WALKER

RAWLEY

-V

a per

We suggest

TALLMAN

CULLEN

May 1,1957.

keep

you

is for

Perkin-Elmer.

thereto

the

L. SNIDOW, JR.

THOMAS

ROANOKE

$1.30.

W. PURCELL, JR.

CLIFTON

RICHMOND

around

flood

severe

PARKER

G. SLAUGHTER, JR.

SAMUEL

NORFOLK

The outlook this year

the

In 1956, the

40% higher salesj and
net

445,025

over

59 cents, after

was

MRS.

R. DOUGLAS

LENA T. ROWLAND

DANVILLE

share net

mostest"

part

MONROE

THOMAS

BLUEFIELD

are

O. LEE, JR.

JAMES L. MORRIS

LYNCHBURG

There

taking into account

Hutton

F. LAWRENCE

GARNETT

BROOKS

Horner & Co.

counter at around 27.
per

look

Perkin-

outstanding traded

of the Russians

then

stock

Corporation .should prove

reward i

MR.

Scott

telescopic photography and
applications of ana¬

limitless

Deaton

with the "fastest and the
""U

missiles,
high

and

FREY, JR.

T. CLAGGETT JONES

PAUL

electronics

lytical

optics and electro
if we are to remain

ahead

missiles,

enthusiastic
of

B. HORNER, JR.

RICHARD

account for about

of with Equitable Securities Corpo¬

strate the precision and quality

in
OSCAR

ex¬

penditures
of

tiers of spectro
HAROLD

mercial instruments. Research

products of Perkin-

Flmer, it has only been to demon¬

military research and develop¬
and
optical
production
activities, and the balance in com¬
ment

Want to build an

analog comnuter?
The P-E
Vernistat potentiometer is an es¬
sential ingredient.
a.c.

About 45% of company sales are
in

last word

Astro
'

■■■

delivery of elements meeting
high quality standards of P-E.

ume

the

Nor-

MAin

1-4612

Volume 185

Number 5634

The Commercial and Financial Chronicle

(2049)
possible market impact, on specific
industry groups during the past

open-ends this motive, to the ex-

•

Groups Bought by the Funds

By A. WILFRED MAY

■,

The Impact of institutional in¬
the- stock

market

be¬

comes

increasingly highlighted.
The pension plans continue their

the

and

Its Net Mkt. Chge.*

enormous

•

Down -2.38

activity Paper________

1.75 V

......

Down

4.17

Penalty

insurance

Radio-TV

com¬

Down

au¬

the

Life Insurance

;?■/ Institute.

the' effect

•'f of declining

Under
cable

prices

'ft

1> f

u a

sales
/

their

and in turn

reaction

up to
market,

the

has

been again raised within
the
past week by~ a major article in a
financial periodical.
Much

valuable

question
issue

well

light

as on

from

impact

Currency

comprehensive

staff report of the Senate
and

this

the broader

institutional

available

Banking

Committee

available last year-end.

made

This

ma¬

jor study, whose compilation was
particularly urged by the Securi¬
ties Subcommittee's
member and
sometime

Chairman, Senator

followed

man,

number

Leh¬

of the

increasingly im¬

portant role

played in the stock
market by institutional investors.
It

been

Issue Concentration

One

concentration of

buying in

floating supply of these

lar stocks.

the

popu¬

investors

are

quarter

the

net

trust

common

the

available

evidence

v;;\:;

Fund

■:«7:%

ing,

managements for cashing in

of
life

com¬

were

■1 ■L

the

closed-ends

actually

reducing, their working funds. The
passing along of gains in the form
of dividends has been made prac¬

compulsory by
the
regulations.
In the case of

them, and to claim credit
fund,

which

other

basis

re-

ever

appropriate.
In addition, shareholders are now
permitted to add to the cost of

their

shares
gains

Wide
Securities Gompany
and
likewise appointed a member of
-

the Investment Policy. Committee

Calvin Bullock, Ltd.' NationWide^ Securities, Company is. one

of the group oTmutual funds managed by - the - 63-year-old Calvin

Bullock organization. Dr. Burns

Thus the penalty on

capital
,

holders

gains

from

...

mitigated.

interval

and

desisted

■"■//

the

tax

has

shown

and the dissolution
I.

are

PATRICK

•

which

and FRANCIS C. WOOLARD

LANNAN

••••••••«••••«*

i'i'»

••••••••••••»••••••••••

•

» ♦

market

highs;

•#•#••••••

is¬

well

H. M. BYLLESBY

from

;

Announces the election of

true of duPont, of

leading

46.000

fund

buyer
with the

I. PATRICK LANNAN

liquidating

FRANCIS C WOOLARD
Vice President and Director

portfolio policy, with

announce

and

Chairman of the Board of Directori

and

firm

COMPANY
INCORPORATED

indivdual stocks.

some

The funds'

AND

both sides of the

was

the

some

Effective May 1,1957

that

as a

Trading and Investment Services Previously

Rendered

by Kneeland & Co. Will Be Continued

Through the Facilities of H, M. Byllesby and Company

Director
GLEN A. DARFLER

philadelphia

office

Manager of the Trading Department of Kneeland & Co.
3

penn

center

Blair

plaza.

phila. 2

fi- Co

Will Assume the Same

Responsibility at H. M. Byllesby and Company

H. M. BYLLESBY

COMPANY

AND

INCORPORATED

Investment Bankers

INCORPORATED.
Members of the New York Stock
and other

Exchange
leading Security Exchanges

Members of the Midwest Stock
135 South La Salle Street

MAIN

OFFICE —NEW

YORK

•

Exchange

Chicago 3

•

CITY

BRANCH OFFICES
APRIL re,

1957

New York

•

Philadelphia

•

Minneapolis

Financial 6-4600

r-'v

•••••#••«•••• f

pushing ahead to

were

of the partnership of

Wb l

Exchange

Effective at the close of business April 30,1957

the ."Chroni¬

operations during the quarter

•

Announces the termination of its business

market

associated

ivn/1

Chicago 4, Illinois

Members of the Midwest Stock

com¬

stabilizing influences

•

„

Charles M.

become

S7i?+vvfUS»Z~^hl?e«le ii^ Co > Inc.,
U1J Stock Exbers of the Midwest S®* J11?11-

Established 1931

Current Fund Policy

Some

joined our

our

ZTT

L°UIS, Mo.

Board of Trade Building

market's

the

Mr. Newlin F. Davis

'3PT^rtT 2*

re-

share.

A AVDiuvin o

alio-

withholding

VA vk

With Fusz-Schmelzle

Peltason

their
_

after pay-

company
ment of the tax.

All

located

Council of Economic'Advisors. He
presently Professor of Economics at Columbia University,

the

which

the

KNEELAND & CO.

amount.

Vice President

Dr. 'Arthur F." Burns has been
pay elected. to the? board of Nation'

i
pleased

has

trend toward the reduc¬

of_;market. distortion,

Heretofore, change. He was
formerly
the such realized capital gains as were Peltason-Tenenbaum
Co.

tically

46,000 shares.
The rise by American Cyanamid
to
its all-time high during the
quarter was used ,by five fund
managements to take profits, with
oniv one buyer and in a negligible

heavy sellers.

the

along

Dr. A. F. Burns, Director

pany which retains realized capi- /
tal gains will be
permitted to

main

panies acquired their main hold¬
ings of these issues during the

sharply rising market

are

and

The investment

movements.

seller,

rising at a maxi¬
(by 10% net), life and

quarters that market swings have
been extended by the distaste of
fund

Steel, is shown as stabiliz¬
not distorting, their market

acouired

fire insurance companies and com¬
were

help

some

which

stock prices were

the

to have grown

attitude toward the well-

The latter

Committee study shows that dur¬
ing the fourth quarter of 1954 when

Midst

It has been maintained in

acting steel stocks, Bethlehem and

market of

bucking fluctuations

trust funds

tion

com- ;

■

case

funds

their net acquisitions
stocks;

funds being on

market* along with business
For example, the Senate

rate

•

*As

one-

purchases

lation for the life-insurance

new

swings.

mum

seem

panies showed that about 78% of

sues

in lieu of earlier proclivities to
fol¬

low

over

preponderance of sales in
on

policies in action

tax

-several .developments,
both
qualitative and specific, tending

ended March 31 last, appearing in"
this issue. This stems from both a

of these
groups indicates a change
in recent years to a more scientific

approach in

Thus there

after

years

stock

companies were for the same
group of 25 stocks. Another tabu¬

pany

Coming of Age
All

the results of the

Dur¬

corporate pension funds and 35%

likewise

taxable

regulated investment

statute; appli¬

Taxation and Market Freezing

cle's" Survey of Investment com¬

stabilizing influence.

the

to
a

avoidance

8.47-

1956,

new

>•■'[

■

lim¬

common

stocks, and

Others have contended

institutional

■

the

long-accumulated capital appre¬
75% of undistributed
ciation, as in oil stocks, and con¬
acquisitions by 20 open-end funds
cable to their shares
sequently keeping down, or in the
was for 25
one-ouavter of

contributing substantially to
prices advanced.

that

there

ing the period under review nearly

rise,

hlue chips, and their reduction of

which

ited number of listed issues.

prices be¬
purchases of

mon

always to be uniformitv is

seems

the rapid rise of stock
cause of their
large
the

practice

earlier

maintained that they have

was

0.-38

Down

Capital'

" available

•-

the

stressing by a
"Fulbright Hearings"

witnesses

swings; with further di¬

category of
the institutional buyer. * V •■■■-• J

own

■

chain

market

"buck" the major

vergence between the

muu n

portfolio liquidation, adding
a

.The study in general shows that
the institutions follow
soriietimes

1.30

Down

Retained

Gains Mitigated

Down v 5:76 -' to the
Treasury in the form of a
v-;&.c.-pr*
withholding tax at the source, an
compiled
by
Harold
Clayton
of
amount' equal ~:to the maximum
Hemphill Noyes & Co.
1
!
25% tax on that portion of its net'
1 In thin case of
the Twoandhsti;jes
Wherein there was decisive fund long-term capital gain. Which is
not
distributed to shareholders,
selling, namely, aircraft and air¬
In turn, shareholders ,of the comlines, the funds were also sellers;
pany, in their income tax returns,
eliminatingv themselves as stab¬
ilizers.
1
--■■■

pur¬

stock market

Wilfred May

purchases

gross

sometimes

and

d?:The question

the

V made

quarters

thoritatively dropped 26%, and the net
by a study just chases declined 46%.

.v..

refund

amount of the profit passed
to the shareholders,

working assets.;-;

___

true for life

pany's

new

tion of accepted
profits for use

4.36

.-Down

Oils

•

companies, the

■

adjustment available to the shareholder—in contrast to the corn-

case

4.83

.....;

growth, as panies arid pension funds. During Merchandising
"'again evi¬ the year's bullish second and third Rubber
denced

the

Drugs
Natural Gas

business

credit

tax law will facilitate their reten-

tially higher average sale than Utilities....
tjz Up
r 2.98
purchase prices, while the reverse Steels_-_____»»__._ Down 15.6
was

the closed-end

6.56

Aluminum

record

were taxed at the
longcapital gains rate of 25%,
paid by the company with no tax

capital

3.59%

of 1955, the funds showed substan¬

■

dividends.

Down

•"

gains

option

Chemicals

MARKET SWINGS
vestors

„

re-investment

Agricultural Equip. Down

THE INSTITUTIONAL INVESTOR AND

Industry:

term

markqt distortion; has been1 mitigated by the
rising proclivity of investors (now
60-65%) to take advantage of the

quarter is shown in the following
table:

retained

tent that it made for

» ♦ ♦

with

Commercial and Financial Chronicle

The

Thursday, May 2, 1957

(2050)

share"'of

Savings Banks7 Future Role
And Prospects in the Economy
the future prospects for mutual savings bank
of expert knowledge into his
that: (1) if chronic inflation is not stopped then

In looking into

;

;
,

personal
saving s. 11

rent

mutual

ings
that

efforts

last

mortgage

year's
debt

country.
and the cur¬
record
demonstrate* that,
historic

the

savings bank facilities are

recognizes

public

benefits provided

utilizes the
a

lien
cut

upon

urge

savings bank account. These

Available

the

compared

far

of'1957

dicative

with 4%

1939^

something
debt,

very

ity

banks

highest

the

venient

depositors and

account

con¬
service to

attractive rate

debt,

consumer

according

new

orders lagged behind shipments for

month.

March ship-

three years,
the sixth consecutive >

Z-.--/KK

—

eutting -into steel order ? back- -

Easier market conditions are

the

ing in disappointing sales of construction equipment.
ments of machine tools rose to the highest level in
but

nearly half

degree,

efficient

and

' •

last year,

American families have incurred
consumer

tracts set

one-half of

over

and spent more money than in any

a new record for 1957 so far, but lagged 16% behind *
according to the "Engineering News Record." Highway
construction so far this year has fallen below expectations result-

ac¬

by the Department of Commerce,
While

money

statistics'issued."

savings

Higher prices accounted for much of the first quarter yearto-year rise in consumer spending. The cost of living rose 0.2%
in March, setting a new record for the seventh consecutive month.
Reaching 118.9 (1947-49=100), the Bureau of Labor Statistics'
Consumer Price Index was 3.7% higher than March 1956. This '
resulted in a pay rise for 1,400,000 factory workers under con¬
tracts calling for automatic wage boosts when the index climbs.
March was. the first month in two and one-half years in which
real spendable earnings of factory workers showed no gain from
the prior year.
The only price declines in March were in food
products.
*
'"
I
? Rising 11% the past week, awards for heavy construction con¬

to th£ imperfect but in-*

cording

made

quite

1950's

the

This gain is especially noteworthy con¬
year's Easter selling season fell completely *
Automobile dealers reported a 5.2% year- •

last

that

similar period.

American people have been saving about 7% of their disposable
income

to-year gain in sales of both new .and used passenger cars during
the first three months of this year. Americans in the first quarter V

ire

news the past week, was the report from the United
Department of Commerce, indicating that retail trade in
reached about $44,900,000,000, up 3.4% from the

/ Favorable

sidering

this point. Despite
spend
freely,
the

'urge

Business Failures

within the first quarter.

that

balance

statistics

Index

Production

like period of last year.

future incomes,

into the

reassuring

Industry

Price

Auto

the first quarter

| benefits include safety and liquid- of thesavings accounts. Two-thirds
have families that have incurred

sav¬

the say-

ings

home

available,- the
and

measure

fifth

entire

where

considerable
the

the

Both

due

was

absorb

vehicle

for

a
so

and

and Postal Savings. Thanks to
this deposit gain, they were able
to

tremendous

will be left for saving.

increase

•

States

today's

pose

growth of the American economy,
They pioneered the use of the
de¬

Commodity Price Index

Savings ;

highly effective ad¬
vertising arid selling techniques.
Not only are people being tempted
to spend their incomes more and
more
freely, but also to incur
mounting personal debts that im¬

commercial banks, savings and
loan associations, credit unions

savings

try promotes with a steady stream
of new
and improved products
and

Congress.

posit r account

the

Retail Trade *

and

care-

be sustained in the

can

Production

Electric Output

Food

;/raise living standards that, indus-

have
to the

banks

savings

The

Volume

Future

face

and (3) intensified competition facing

signal contributions

deserve

of concern

whether it

Economist warns lack of agree¬
ment among savings bankers weakens the industry's pleas for
legislative relief, and opines the battle for reasonable equal
competition should be fought in the State Legislature rather
Mutual

State of Trade

question about the future
volume
of
personal savings is

ity. The Banking and Finance

made

Carloadings

The

savings banks requires removal of discriminatory and burden¬
some restrictions so they may compete on terms of near equal¬

than in

Steel

;

three of these

All

ful analysis.
The

portfolios must be shifted from fixed income investments to
equities; (2) variable savings accounts must be instituted so
that deposits and withdrawals will be based on current value
of investments—rather than the dollar amounts—comprising
the savings account;

1' "

future.

the

sources

Professor Bogen brings 40 years
conclusions

sav¬

Savings bankers are more con¬
cerned today about the third of
these sources *of worry than the
in

University

Professor of Finance, New York

mutual

ings banks.

that

accounts

savings

attracted

i'w. other two; But this could change

By DR. JULES I. BOGEN*

*1;

will

The situation varies from mill to mill, but over-all the trend t
in order backlogs is down. * This trend is-<;likely to continue ; at'.tleast through the second quarter, states "The Iron Age," national 1
metalworking weekly,-this week/:/-.s-^:-;^ v j- ix-T•>' VtrsfV /-/'s.
logs".

Consumer Finance Survey spon-

the Federal Reserve
also possess liquid .assets,
record, it is anomalous that mu- In other words, a large propormedium
for
I*
A pick-up in-automotive steel ordering could reverse the if
tual savings bankers, almost to tion of the American, people want
mills' backlog position overnight, but no one seriously looks for. '.
gathering and
Dr. Jules I. Bogaa
a man, are deeply concerned toboth- the liquidity of a savings
Detroit to tome to life until laterin the = second -quarter or early- ?
investing per¬
account and the present use
of
in the third.
'
;
f
~
'" ■. sonal
j
savings.
Today,
mutual day about their future role in the
savings banks hold fully a fourth economy. Yet this should cause durable goods bought on credit, to
Steel users, declares this trade weekly,* apparently are content
of the $120 billion accumulated by no surprise.
In our highly dy- be paid for from anticipated into live off their inventories as long as they can/ They are count¬
the American people tin savings namic economy, where past re- come.
ing on the mills to be in a position to accommodate them in case *
accounts/ despite the fact that suits do not assure future success,
Reassuring as is the record of • they need quick delivery. The mills do not like the idea,'but .
; savings banking is largely lim- e v e r y
well-managed industry*1 a sustained, high level of personal
competition 'is forcing some of; them to play warehouse- for im* :
ited
to :the: northeastern
states every,
well-run
enterprise,
is savings, there is no room here for.t portant customers. '- - .-v/ 'y • ;■'/■ ■
and even there it is subjected to deeply concerned about the fu- complacency. The same intensive
The mills also are bearing the brunt of things from another; severe limitations on branch and.-ture.
•
promotional effort that goes into
direction. Customers are more choosy about quality. The rejections
other powers..... :.;:cMere worry, however, does not the sale of other goods and seryrate for quality reasons is on the rise. This usually happens when**
Through the investment of these produce solutions for problems. It ices should go into the promotion
the supply of any steel product exceeds demand, observes this <
savings,
mutual
savings
banks can produce only, ulcers.
. > j.
: of thrift.; This is particularly imtrade authority.
;
^
*; y ^
■■ \
have provided billions of dollars
A more constructive approach portant among the rising genera/
Meanwhile, indications are that the gradual decline in the
to finance building, business ex- requires that we identify the spe- iton, where mutual savings banks
steel operating rates will continue at least through the second
pansion
and government needs cific threats to the future of sav- have provided effective leader-/
without inflationary consequences. in&s banking, study the pertinent. ship-through school savings. The ; quarter: The mills are using this time to schedule production and
:
:•/
[Continued on page 45
Nearly one-fifth of all outstand- facts,
and
formulate effective need for savings to finance home
has

chief

the

sored

return.

become

the

* face

reassuring System,

this

•

remedial

ing home mortgages in the coun¬
try are held by mutual savings
banks.

Present Role of Mutual Savings
'

Banks

the

basis

facts.*

these

■

measures

shall attempt to do this for
the economic trends which are
currently causing serious concern
to .savings bankers.
I

The historic
tual

vital

role

today.
1

banks

the

economy

the

mutual

accounted

for

the

savings

for

22%

year

all

the

address

Dr.

Bogen

ofVNneW Yoark,SNew York°Ci°y,
1957.

before

pressures

The

the

Ajrii^ inSs accounts.
(3)

Concern

the

about

to spend.

Future

the

now

future

Our

Even if the volume of
and

OFFICE

located at

STREET

Savings

Account

sustained

the

about

NEW YORK

40 WALL

sources

Concern

pleased to announce that our

are

savings in the face of the mount¬

telephone number

savings is

increased

future,

future

Established

The savings account is threa'*

Continued

on page

Members Neiv York

Denver

are

pleased to

BERT

now

1957

1915

Stock Exchange

Salt Lake City

Eighteen offices in

MAY

& CO.

J. A. HOGLE

Los Angeles

remains

WHitehall 3-6700

the

bankers
have
savings
that
a
smaller
volume of savings.
reasons to fear
(2) Concern about the future share of such savings will flow
share of savings going into sav- int° savings accounts.

(1)

ings accounts, including those in
An

three main

ple to maintain and increase their

Causes of Concern

are

These are:

sav-

—

ahead, and it is going to

take, great efforts to induce peo¬

savings bankers view¬
ing their future prospects today.

concern

1956,

increase

Three
There

and

the years

ing

importance of mu¬
savings banks is matched by

their

business expansion
promises to reach new peaks in"

building

San Diego

Nine States

April 29, 1957

announce

H. HORNING

associated with

Please Note Our Correct

us as

Address

Syndicate Manager

^tHacip onaid,

urke &
DEMPSEY-TEGELER & COMPANY
ST.

LOUIS

MEMBER

1, MO.

Member: New York Stock Exchange • American Stock Exchange

Midwest Stock Exchange

•

EXCHANGE

(Assoc.)

Pacific Coast Stock Exchange

Twenty offices in eighteen cities

MIDWEST STOCK

EAST

10th

STREET

KANSAS CITY 6, MO.

Ifnc.

Volume

185

Number 5634

;

The Commercial and Financial Chronicle

Plains

longer plows and plants
He knows .the

Farm Year Ahead
By ROGER W. BARSON

Mr.

Babson

forecasts"

relatively

good

American

farmers,

the

shift

better

from

farms.

for

year

and

small

equipped

another

;

farm
*

He also

now

planted

crop

gears

the kind

soil-moisture

conditions

prevailing at the time
of planting, and utilizes moisture-

praises

larger,
managedabout

commenting

meth¬

racing, of sowing drought-resist¬
ant cover crops where and when
needed, and of shelter belts of
of

most

soil-conservation

ods, of irrigation, of modern farm
tools, of contour plowing and ter¬

trees.

and

conservation

techniques and di¬
farming. By these and
other modern agricultural meth¬
ods
and
practices
designed h to
versified

whether the Western drought sit- ?
lessen
uation has ended, or not, the

the

risk

farmers

farms.

managed,

inaiscriminafely.
value

(2051)

and

the

even

The

now

one-man

outdated

''one hoss shay."

.This, "farrp
revolution" has made rapid prog¬
ress
in-recent years.
There are,

since

farms has

declined

11%

1950—from

5,379,250 to 4,Yet total farm area has

783,021.
not

structive forces, he is making real

progress under all conditions. ;

larger,

make'progress under

can

Trend

sound

rejoicing is today

across

echoing

the Western Great

effects

Plains. Mother Nature at long last
has

showered

and

heavy

Larger

Farms

various

wide

snows upon

Will

well-managed

farms

areas

drought-stricken region.
result, soil moisture condi¬

methods

farming and of minimizijog the

verse

droughts

conditions

direction

equipped,

vive

Such farms

prolonged drought

ad¬

adversities

point in

all

one

poorly managed farm.

larger, better

skillfully

than

here to stay.
now

are

much better position to sur¬

other

toward*

and

the

other

small,

They

are

Farming in America

is "big business." I,

ton,

Jr., has become associated
Wood, Struthers & Co., Fi¬
delity Union Life Building.
Mr.
Deaton was formerly with Dallas

with

Union

Securities

Co. and

Central

therefore,

Baker-Rauling Co. of Cleveland,
Ohio, a division of Otis Elevator
Co., has been admitted as a gen¬
eral
partner in the New York
Stock Exchange firm of Riter &
Co., 40 Wall Street, New York
City, it has been announced.
Mr. Bauer, an alumnus of Yale
University,
'35,
was
associated
with Edward B. Smith & Co. and
Riter &

HEIGHTS,

Avenue

curities

engage

business.

as a

are

encouraging than

Partners

are

GREELEY, Colo.
Hause

has

—

joined

Martin M. Uffner and Mrs. Lucille

American Securities

R. Uffner.

1515

^Farmers and businessmen
*";

;

■

offer to sell

nor a

solicitation of

living

Eighth Avenue.

in the Great

Plains

nat-

11y

u r a

a re

greatly

cerned

$25,000,000

conto

whether these.

much- i

British Columbia Power Commission

m¬

mois-

proved

turef condi-;
tio

n s

are

flash

mere
*

43/s% Sinking Fund Debentures, Series L, Due 1987

the pan or the

real thing.

Crops in

Dated

April 15, 1907

Due April 15, 1987

some

instances have

;;

Price 98% and Accrued Interest

been hard hit;
valuable; top-

Roger W. Bab son
'

A:
blown

soil has been
cattle have starved

away;

farmers

have

been

forced

liquidate them for lack
and

Wm $20,000,000

feed;

people living on the
facing poverty. Although
five-year drought has beensome

land
this

the

Pacific Great Eastern Railway

the whole than

Company

disastrous

and

1936,

can

droughts of 1934
has been severe.
I

well

appreciate the mount¬
ing hope in many hearts that it
may now be ending.
I

wish

nite

could

over.

Perhaps
a

good

Dated

43A% Sinking Fund Debentures, Series C, Due 1982

Due April 15, 1982

April 15, 1957

about

least

—

not

Interest

Professional
tell

six

Price 96'/2% and Accrued Interest

Af.h-

However,
and

one.

forecasters

takes

worst

is.

forecaster

very

weather
it

the

statistician

weather

give them defi¬

that

assurance

are

less destructive

payable April 15 and October 15 in The City of New York in lawful money
the

that

months

United States of America.

above-normal precipitation to end
a

major

drought.

this

so,

respect at least there is still

some

distance to go before we can know
for a certainty that the drought
ended.-

has

still

are

rado,

Incidentally,

sizable

New

Texas

parched.
that

Mexico,

The

over-all

payment

PROVINCE OF BRITISH COLUMBIA

remain

thing

sure

one

Colo¬

Nebraska,

that

Ohio

and

there

sections of

All of these Debentures will be unconditionally guaranteed as to
of principal and interest by the

conditions

moisture

have

materially improved — the
direction. The
drought is old, and this is another
favorable factor.
By the law of
trend is in the right

Farmers

Drought

Gaining

MORGAN STANLEY & CO.

Know-How

Whether
ever

Western

buried
ball.
will

recurrent

deep

come up

learning

out

plague

Plains

Nature's

the

secret

crystal
day

A.E. AMES & CO.

HARRIS & PARTNERS LIMITED, INC.

BURNS BROS. & DENTON, INC.

THE DOMINION SECURITIES CORPORATION

BLYTH & CO., INC.

Incorporated

DREXEL & CO.

GOLDMAN, SACHS & CO.

EASTMAN DILLON, UNION SECURITIES & CO.

have

with something very

Incorporated

and more how
droughts and come

MERRILL LYNCH, PIERCE,

LEHMAN BROTHERS

KIDDER, PEABODY & CO.

HARRIMAN RIPLEY & CO.

Meanwhile, farmers
more

with

ahead

They
this

droughts

Perhaps scientists some

live

cease

Great

constructive.
are

offer

it should not last much

averages,

longer.

will

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 respective States.

least

come

break

long

SALOMON BROS. & HUTZLER

FENNER & BEANE

even.

way

SMITH, BARNEY & CO.

STONE & WEBSTER SECURITIES CORPORATION

respect since the Dust Bowl

days of the Thirties, when about

WHITE, WELD & CO.

all they

could do was to "take it
lying down," or pull up stakes and
migrate to other, more favorable
areas.

The

smart farmer

of the

Great

May 1, 1957.

WOOD, GUNDY & CO., INC.

staff

Company,

offer to buy any of these

Debentures. The offer is made only by the Prospectus.

Warren J.

the

Broken?

Lt. Colonel

(Special to The Financial Chronicle)

se¬

they
This announcement is neither

But—Is the Drought

the

hon¬

With American Sees.

tions in much of the Great Plains
have been in several years.

was

Y.—

until he entered

in 1940; he

1945.

Household Investors Company has
been formed with offices at 87-10

34th

Co.

orably discharged

Form Household Inv.
JACKSON

In Riter & Co.
V William A. Bauer, until recently
President and Board Chairman of

U. S. Army

Investment Company.

that

and modern techniques can prof¬

itably be realized.

modern

copious rains

that

down

de¬

Continue

These

conditions.

verse

other

the full benefits of mechanization

ad¬

many

W. A. Bauer Partner

are a

Wood, Stalkers Co.

farmer" of the Great Plains

drought

They

F. R. Deaton, Jr., Willi

Analyst explains how the "smart

from

another
relatively good
for most American farmers.

year

sturdy, intelligent, in¬
dustrious, and God-fearing group*
This is a combination of qualities
for instance, a million more trac¬ hard to
beat, and one America
tors on U. S. farms today than sorely needs
today.
there were in 1950; 131% more
pick-up hay balers;
51% more
corn-pickers;
39%
more
grain
combines; and 12% more milk¬
ing machines.
On the other hand, the number
DALLAS, Texas—Fred R. Dea„

changed much
since then.
Therefore, the size of many farms
has increased. It is only on these

crops

forecast

The Commercial and Financial Chronicle
8

Thursday, May 2, 1957 -

(2052)y '

able is

on,

L. A. Darling C.o.,

Bank of America

—

300 Montgomery Street, San Francisco 20, Calif.
Benedictine Sisters Benevolent Association — Circular

Ziegler
Borden

Recommendations & Literature
understood that the firms mentioned

It is

ment

*">/:'""i''',*
Management.projects oil and gas

Letter

Atomic

(No. 26)

Comments on Atomic Funa's stock

—

dividend,

East Mason Street, Milwaukee 2, Wis.
Company-—Analysis—Blair & Co., Incorporated,
New York 5, N.-Y.
/•;•)~± .AAA's:':0Day Brite Lighting, Inc.—Report—Scherck, Richter Company,

■

York 5,

Company, 15 Broad Street, New. York
able is current Foreign Letter.
,
;
v

N. Y. Also available are: data on Colorado. Fuel &:

Precision

— Memorandum — H.
Hentz & Co.,
York 4, N. Y/ yy ... *
;;..
Equipment—Data—Joseph Faroll & Co., 29

'Dividend^

Hershey
Howell

Chocolate—Memorandum—Hemphill, Noyes & Co., 15
N. ;Y.,// /Xy/; y.'
Electric Motors Company—Analysis—B. W. Pizzini &

Management Co., Texas

135 South La Salle

Marshall

convertible

Bank.•'stocks-^First

period

New-York

A^itrie (Bp;,

'■'■J;

■—

New York

•'■"■A®

Company,

in the same issue are

Broad Street, New York 5, N. Y. - AlsO
data on A. O. Smith and a list of seven - interesting.
• /
Al A'-A

Company—Analysis—Metropolitan Dallas Corporation,
V Vaughn Building, Dallas 1, Tex.
Transamerica Corporation—Analysis—Dean Witter & Co., 45

Emporium Capwell.

Company, Merchants and Man¬

Providence Washington Iusur-.
Fire & Marine Insurance Com¬
pany, Standard Accident Insurance Company, St. Paul Fire
& Marine Insurance Company and United States Fidelity and
Inc.—Memorandum—Goodbody & Co., 115 Broad¬

New York 6, N. Y.

way,

Forging & Socket Co.

-—

by $1.4 ' million in
debt, 1(H),000 shares of $1.20 cumu¬
lative convertible preferred stock"

adding
and
and

gas

depreciated value of oil
? well equipment/ owned

net

with

woiking capital together

cash
'

derived
1

from
■

assumed
.

■

*Prospectus

request

Bought

—

of warrants

exercise
sion

and

conver¬

preferred stock into
the net indicated asset
of Dec. 31, 1956 was

the

common,
as

to 31, 1957.

in. cash

treasury.

Valuing 6.-1 million bbls. of . re¬
serves
at $1.25
per
barrel and

Sold

•

IV,;

Last year

the company reported
income
of
$747,803.? Cash

cash

earnings are in effect the amount
of cash earned- bv the company
and

which

vestment

available

increase

for rein¬

outstanding

[

tripled in the two ^

1956,
multiplied

period ended Dec. 31,

and

six

about

clusive

reserves-

gas

times

and

oil

worth

net

gas

(ex¬

reserves)

than 10 times and cash earn-

:
<

than 150 times.
At X
market prices (same as *

stock is selling for about

;

assets

and

rently estimated net asset value,
most of which is in the form of
oil and

Security Dealers Association

Trinity Place, New York 6, N. Y.

DEMPSEY-TEGELER & CO.

Such statis-

gas reserves.

tics do not take into consideration

;

growth already assured

the future

Sooner or later

it is in-

;

evitable that the price will adjust

1957.

for

itself

intrinsic

value.

Hence, ;

small

;

per-

;

centage price appreciation potentialities for speculative accounts

;

present
in

risks

price

relation

appear

longer / term

willing to exercise patience..

FKLB Notes Offeied
offering of

"y Public

earnings.

•

$105,000)000 "

Federal Home Loan Banks 3.95%

Cash

maturing
balance

wnen

such

earnings noncallable consolidated notes
for 1956 were equal to $7.48; pgr dated May 15, 1957 and clue Jan.
share
on
the'.100,000. shares of 15,
1958,
was
made" yesterday
cumulative convertible preferred - < May 1); through. Everett Smith, •
and
represented a- coverage
oL fiscal agent of the' Banks, and a about six times the-annual divi¬ group of securities dealers,- The j
dend, requirement of $120,000 notes are priced at 100%.'"
.
;
on the preferred- Alter deducting
Part of the proceeds from the
the full $120,000 annual dividend
offering will be applied to retire¬
requirement
from
earnings for ment of $77,000,000 of 3 20% notes '.
future

$627,803 was
share based on
the 377,554 shares of common stock
outstanding as of Dec. 31, 1956 as
compared with $1.35 per share of
common stock as of Dec. 31, 1955

TROSTER, SINGER & CO.
74

organizations as Superior, Amef-Vada, Seaboard and others/
While the price of the'commorr-*

1956, the remaining

with

associated

<qual to $1.66

Members: N.

6 times 1956 cash

(Over-the-Counter Market 20-21)
and -377,554
shares of common approximately $12 per share. Since
the end of last year oil and gas
(Over-the-Counter Market 9-10),
In
addition
there
are
approxi¬ reserves have expanded to around
7.5
million barrels
so
that the
mately 200,000 warrants, most of
net
asset value is
whicn are held by management comparable
around $14 per share as of March
and when exercised will add ap¬

•

Midwestern Instruments

conqrany

earnings and at a
discount of about 40% from its cur-

Security I Like Best

represented

tne

i'TKLM Royal Dutch Airlines

the

~of

Its average age is under 40.

common

The

proximately .$675,000

Banks, Brokers, Traders—

success

present

value

Memorandum — Win. C.
Roney & Co., Buhl Building/Detroit 26, Mich. Also avail-

American

about six months or more ago) the

Company, Springfield

Air Products

the.

date.

ings

from page 2

National Insurance Company,

■

;
.

and-r to.; apply expert ;•
techniques for .maxi- j j
mum -economical. jecpvery-.V-.y.y;;/,-*/ The present management of the y
company has been responsible for
-

oil
,

National Union Tire Insurance Company, New Amster¬

„

acquire

Continued

qualityreserves
through purchase of producing
properties or merger and' to doiitinue to explore actively for oil
and gas reserves through drilling
-

year

;

- •

National Fire Insurance Com¬

^Casualty Company, New York Fire Insurance Company,
Insurance-Company ~of New York, Northwestern

Guaranty Company.

be taxable.

may

policy of the company

stock has about

Montgomery Street, San Francisco 6, Calif, Also available is
a bulletin on North American Aviation, and a memorandum

Insurance Company, Massa¬

The basic

highly trained 'i
staff of petroleum engineers and
gc ologists most of whom had been
i

Northern

ance

It is composed

Letter"—Hay-

Webster.—Data in "Monthly Investment

stocks which appear

of Newark, General
Glens Falls Insurance Company, Hartford,

ufacturers Insurance Company,

dam

Sun Oil

Company, Firemen's Insurance Company

pany,

receiving" non-

"
i
preferred and. receiving jcash oivi-y'

engineeri

' den. Stone & Co., 25

Company, Continental
Insurance Company, .Employers Group Associates, Fidelity'
Phenix Fire Insurance .Company, Fireman's Fund Insurance

chusetts Bonding & Insurance

Atlanti^iefining,vFtire Gil/and- American

Chemical.

Stone &
•

ifornia Western States Life Insurance

Fire Insurance Company, Home

Southerp Companyr—Annual report—The Southern
1330 West Peachtree Street, Atlanta 9, Ga.

Agricultural Insurance Co^r-Study—Robert H. Huff & Co./210
West Seventh Street, <Los ^ Angeles 14, Calif.
Also available ;
are studies of American Equitable Assurance Company, CaL

Reinsurance Corp.,

Data—Bache & Co., 36 Wall Street,
5,-N; Y. JVlso. available ai:e data on Sangamo El^c--;
—

•'/''iV;|;
South Texas Oil and Gas Company—Rep6rG-jBerry .& Copu,
pany, 240 West Front Street, Plainfield, N. J.^^'■ Ay:1-.'4

......

stock and

common

operations

17, Calif.

■

v;;,./,

dends which

Coitfpany—Report—Purcell & Co.; 50 Broad- /

New. York 4, N.- Y.' t,*"• , •;
;
Purex Corporation, Ltd.—Bulletin—De Witt Conkfin Orgair'zatiop, 100 Broadway, New York 5, N. Y. Also available is un¬
report on Atlas Consolidate^ Mining and Development Corp. . :
Richfield
Oil Corporation—Annual report—Secretary, Rich- ;
field Oil Corporation, 555 South FloWqr Street, Los Angeles

taxable stock dividends Or owning

Coke Co.—Memorandum—Oppenhcinier
Co., 25 Broad.Street,. New York 5, N. Y.,
V
■

Shellcr Manufacturing

Jonei Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau Averages, both as to

and market performance over a 13-year
Quotation Bureau, Inc., 46 Front Street,

„

policy which directors hope to 7continue on an annual basis With/
in The limits of sound >business
"•
judgment. To many investors Tn;
the higher tax bracket, stock diyi-;
^
dends may be more attractive than
cash dividends. Thus, shareholders
have
the,{alternative of owning y*

way,

4, N.> Y.

quarter analysis of 13 New

National

Corporation

Pittsburgh Steel

Peoples Gas Light &

yield

Richardson & Sons;;

East, Winnipeg and. Royal Hank Build-

stocks—rLaird, Bissell .& Meeds, 120 Broadway, {New York 5,'N.• *
,
•• u ■ - - -• » - ,0 •
<•
Non-Destructive Testing, and Automation Instruments Inc. and
Electrocircuits Inc.—Study-TT-Oscqr F. Kraft & Co., 530-West
Sixth Street, Los Angeles )14, Calif. "
•
Over-tker4)dunteriIndex^Foiderv showing an up-to-date com*/
parison between the listed industrial stocks used in the Dow-

Canada...
*
Limited—Analysis—McLeod, Young, Weir
Limited, 50 King Street, West, Toi^onto, Ont/ '
Canada.
•
v
/'
'
Owens Illinois Glass Company—Report-?-Harris, FJpham i& Co.,, /
J20 Broadway, New York 5, N. Y.
'
r::.

York! City bank

announced

that time that the stock dividend on the common inaugurated

& .Company

Stock»-^-Cucr&nt information — Yamaichi Securities
Co., Ltd., Ill Broadway, New York 7, N. Y.
Life Insurance Stocksrrr-Statisiical summaryv of 1956 operating
results -of 26. major companies—-Kidder, Peabody & Co., 17
Wall Street, New York 5,.;N. Y..
Natural Gas Stocks^-Analysis—Stanley Heller & Co., 30 Pine
City

of>

ingr Toronto^

Moore

17, N. Y.

Japanese

New Yerk

shares-

1.75

into

without time limit. Early/V'

stock. The management

■

Compauy^Analysis—-(jlore, Forgan & Co.,
York 5, N. Y.
v. .j;
<

173 Portage Avenue,

1956—25th annual study-^-Horwath & Hor-

East 42nd Street, New York

wath/41

Corporation Ltd.—Revlew--^James'

!Hoor«

;

Hotel Operations in

Field

^Street, Chicago 3, 111.

Wall Street, New

.40

Fund
National Bank Building, Houston,

Tex.

callable at^^#23; pef^^>$hi^efah5l

.common

Co.—Memorandum—Doyle,. O'Connor & Co., ;.

Service

Johnson

Broadway, Nav York 5,~ N. Y. -/>
Dividends from Portfolio Companies—Tabulation-rrTexas
"

this year the company paid a- 4% •••y
stock
dividend on the coinrrion '.T

Harris, Upham & Co., 120

—

the preferred stock

i>aid quarterly at the
rate of $1.20 per share

annual

—

Broadway, New York 5, N. Y.
Common Stock Review -v Survey

•

4'hich provides tr currtBt retiim..
of about 6%'. The preferred stock y

Broad Street, New York 5,

v
-

may

being

are

Broadway, New York; 6,-N... Y; Also available are data- on
Manning, Maxwell & Moore, Inc. A'A'A AAA'A//'

•

1957

substantially higher;
f95& -/l.";"'

than in

60 Beaver Street, New

General

estimated

yyyy),
Fiberboard Products Corp.

— Burnham
and
5, N. Y. Also avail¬
j,* <.;
y
Canadian Financial Facts and Comment—Bulletin—AnneLt and
Company, 335 Bay Street, Toronto 1, Ont,, Canada.
Chemical & Ethical Drugs
Price indexes — Smith, Barney &
?
Co., 20 Broad Street, New York 5," N. Y.
,•
i
Commercial Bank Stocks—Eighth annual study of 39 banks and
three holding companies — First Boston Corporation, 100

Burnham

income

net

and

Iron.

•

N. W., Washington 7, D. C.. .
View——Monthly investment letter

30th Street,

♦

/y-yy);.:;

Fourth Street, St. Louis 2, Mo.

figure
,

Broad Street,

Vilbiss—Data—Herbert E. Stern & Co., 52 Wall Street, New

at about

1957

and '.its equipment
leasing
income up about 50%,
Based
upon
present indications,
drilling contract income will re¬
main unchanged and also operating expenses, so that bot.i cash
1956

Co.: Incorporated,- 225

320 North

British buying of Canadian uranium, Metal Hy¬
drides, Inc., Kerr-McGee Oil Industries, Inc., General Tire
and Rubber Co., Dominion Magnesium, Ltd., and Lindsay
Chemical Company.
Reyised Reactor Diagrams now avail¬
able—Atomic Development Mutual Fund, Inc., Dept. C., 1038

double the

*■:

sales in

Cook Electric
20

share of com¬

per

mon.

5, N. Y. Also available are surveys of Magnavox
and Western Maryland.
Central Wisconsin Motor Transport Co. — Analysis — Loewi &

will he pleased

$1.95

reinvest- '

$747,803 left $734,432 for

B. C.

id Company, Security Building, West Bend, Wis. /
— Survey — Abraham
& Co., 120 Broadway,

Company

parties the following literature:

send interested

—

-preferred during 1956- amounted >
to only $13,371 which when de-* /
ducted
from
cash 'earnings
of-

Company

New York

paid/on-, the

actually

Dividends

Fuller Manu-/
Steel Corp. - yy y.:;):'*//'.! :A;
Analysis — First California Company, Inc.,

memorandum

iacturing Co. and McLouth

there

per

was

preferred out¬

standing/The preferred stock was
not issued

and

funds not

received

and reinvested until October 1956.

vide

May 15, 1957, and the

of the proceeds will pro-

funds to

the Banks to make

additional credit available to their
member institutions.

Upon completion of the financ¬

ing and the retirement of the notes/
clue

May

15, a total of $678-

000,000 consolidated notes
outstanding.

will be

•

Volume

185

Number 5634
-I

The Commercial and Financial Chronicle

(2053)

•

subordinated

Government and Business
I

By EMERSON P. SCHMIDT*

Director of Economic Research

;

already said.

displaced from slums, for

men

service
and, now,, for the old
Eisenhower,1 President of Johns folks. Along came programs to
Hopkins University,; has strongly promote
cooperatives,
prefabri¬

property, it
Dr. Milton

But

warned

against

Federal

support

cated

houses and

Senator

Stuart

Symington

this remarkable statement:

made

"Secretary Humphrey has given
the bankers

billion dollars addi-r

"industrialized"

tional for the price of money to
help the armed the government."
(Chicago Trib¬
ties; "
'/ avoid asking for direct
une, Feb. 12, 1957.)
l Slowness
of our economic progress in the last decade is
appropriations, and possibly some
Such criticisms of the alleged
Mortgages and Housing
others—to
irevealed by noted national businessmen's
say
nothing of low- tight money
economist, in his
policy have emanated
In the field that is of special income
public housing and middle- from
Washington almost on a daily
analysis of the extent and causes of governmental growth and
interest to mortgage bankers, we income
public housing.
basis in routine fashion. Here we
intervention.
Dr. Schmidt;decries lack of discussion in the
haye had a steady growta of in¬
Mr. Colean goes on to say;.
see a basic
organized drive against
tervention in government.
press and economic literature of the interdependence of free
"In this panic to set up a special the free
market system and few
In the early years, FHA offered
program to meet every real and see
economy and human freedom with a flexible money market,
the implication
for a free
the
private mortgage market a invented
need, the original, lim¬ economy. There is good reason to
defends "honest currency," and exposes delusions about cursingle formula for spreading risk
ited, practical objective was lost, believe that a free economy and,
/ r.t
rlrent credit restraint held even in high places. Avers new ideas
on a mutual basis.
This was avail¬
and FHA was' caught up in the
indeed, human freedom are im¬
able to all lending institutions and
come not from the masses but from
intellectuals, researchers
spreading illusion that there was possible-. unless we also have a
accessible to all borrowers with
and writers, and calls for dedicated spokesmen to master the
no limit to the power of govern¬ flexible
money market. This is an
good credit standing and an ac¬ ment
to remedy every human ill idea almost never
diseussed in the
philosophy and literature of liberty in order to make their
ceptable
residential property.
and
solve every social problem. economic
literature or the popu¬
t influence felt upon the politicians and the intellectuals.
Though a government creation, its
Finds
As a consequence, the agency be¬ lar
press. :/
support was to come entirely from
intellectuals are drifting toward more conservatism and suggan to be looked upon not as an
If the interest rate is driven
those who benefited from it and
; impersonal device for improving downward by artificial
gests this offers excellent opportunities for freedom.
forces, it
any profit was to accrue to the
the
functioning of the private drives the demand for capital ever
More and more people are ask¬ eling, talking, conferring is taking ■borrowers who paid its premiums. market mechanism but as a
tool upward. It
The
generates pressures for
government's, position
was
ing: "Are we over-governed?" As place. •
for directing and controlling the
government
intervention
on
a
When government sets aside the kept remote. It made no distinc¬ flow
recently as 1954, total Federal,
of
funds
to
meet
current
geometric scale.
tion between persons or classes or
State and local tax and non-tax free market as the guide to pro¬
social and political objectives."
\
Lord Keynes during the depres¬
\7 government duction and prices, it invites utter groups, vlt had no direct relation¬
Originally, the housing program sion of the 1930's wanted to drive
receipts, came chaos. After a generation of legis¬ ship with individuals.
"the
r
But it didn't take long before for veterans involved a basically the interest rate to zero
to
$89.6
bil¬ lating for agriculture, the agricul¬
idea.
The euthanasia of the 'rentier' class."
the indirect and impersonal con¬ simple and practical
lion.; In .1956, tural problem is as far from solu¬
He - has; had many followers
in
cept to the governmental relation¬ interest rate established in the
the
figure tion as at the beginning in the
ship; as embodied in 'the FHA was early years was in line with the: Washington. They are regimenters
reached $107.6 1920's—if not more so;
Taking a
market forces. But, like the FHA and totalitarian
whether con¬
undermined and
cor¬
b i 1 li o n.
In look at what Congress has done seriously
roded. Strong forces were at work rate, the VA rates became out-/ sciously or not. To make the point
1956, our na¬ to agriculture, one might gain the
dated with the overall rise in the clear: Interest-free perpetual
to give the government a more
tional
income impression that its sponsors were
loans, for example, would be the
direct and positive role through demand for loan funds,
v;
•
stood at $343 utter
economic
idiots
if one
of making capital a
But meantime, the alleged bene¬ equivalent
which, by grant and subsidy, it
billion, r Thus, didn't
know
better.
And
now
free gift.
was ■ proposed
When things are free,
to provide every ficiaries, government bureaus and
nearly one- powerful forces are at work j in
the politicians began to develop a there; is no possible limit to the
third
of
the Washington to set up another vast family in the nation a good house,
irrespective of considerations other vested interest in the artificially demand for them.
national
in¬ program
of Federal aid to de¬
than that of assumed need.
: ' low interest rates.
Similarly, government guaran¬
.: '-7
come is chan-, pressed
areas — a sort of super
Congress, by fixing the interest tees of loans, easier and easier
The supporters of the FHA, un¬
neled through WPA for business.
Dr. £. P. Schmidt
aware
of what was taking place, rate for U. S. Treasury loans for borrowing arrangements with in¬
government.
terest
rates
forcibly
depressed
What Does It Add Up To?
were
lured into a succession of college dormitories slightly below
Chamber of Commerce of the

for private

United States-

•

colleges and universi¬ housing
services
'
" •'
• 1 •'
-

and

—

proximately

are

one-third

ap¬

socialized.

If the government sector continues

our

the

grow,

50 years

it has

99% of

socialized and

out

100

ployed.

will

since

1929, in

our economy

only

Perhaps

one

person

privately

will
em¬

expects

one

shocking

last

real

how slow

see

has

capita

this

increased
year

Miles L.

Colean

well, pointed

per

disposable
only

increased

$182 since 1946, or
$18 per year per capita.
per

compromises,
has

out (1956
capita Savings and Loan Annals of the
United States Savings and Loan
only
approximately League, Chicago 1, Illinois, ad¬

Our

decade.

income

trend to continue, but there
nothing in sight at the moment
that is stopping it!

economic progress has been in

Personal

income has

$137

period since 1946

ten-

the
$13.7

per

dress, Nov. 15, 1956). Since direct
lending and public housing pur¬
ported
of

our

offer

social

ills,

below market levels by law or
the
free
market
by
rate, has by¬
passed the private mortgage mar¬ fiscal and monetary policy as prior
to March 1951, likewise drive the
ket
and
shifted the
burden/to
U.

money market and
indeed
the free economy as a whole.'
'
vate

the

FHA

Credit

Restraint

Delusions

human

As the central
on

capita

per

un¬

ment

government takes

year.

and

are

activities

new

wants

and

harder

are

functions,

the

wont

American

about

boast

industry, American ef¬

American productivity.
gains in real terms are
not impressive. These rather small
less and less able to carry on their per capita gains indicate that, per¬
activities.
A few days ago,
the haps, we are not as good as we
press reported that a delegation of thought we were.
This makes it
presses

tax

re¬

of the state and local gov¬
ernments. This makes them appear
sources

House

protesting

,Perhaps

program.

their

realize
here

$75 million cut

million slum

$250

they

clearance

they

not

did

ludicrous

posture;

demanding that
the U. S. Treasury raise that extra
cash, taking a due proportion out
their

But

were

cities, hauling it to
Washington, taking out the usual

and

housing

for

(two programs), housing for vet¬
erans

for slum dwellers and those

emphasize

investment

problems

and

"not

only curl

your

scalp

your

hair, but take

well" (Evening Star,

must

This announcement is not

through

government
and

lending, direct
regimentation. It

finally lead to capital invest¬

rationing, compulsory sav¬
ing, price and wage controls, profit
controls, the allocation of labor to
specif ic assignments—a regimented
economy.

In 1956, the President's

Economic

Report

urged

Continued

offer to sell or a solicitation of an offer to buy these securities.
offering is made only by the Prospectus.

product

development, more in¬
vestment in plant and equipment
in order to raise our productivity.
product

need

our

the

placing

laws

tax

terrific

solid

look

they

burden

77;::;::777;

$10,000,000

"social overhead costs."

With

take

are,

Laclede Gas

the

First

Company

Mortgage Bonds, 47A% Series due May 1, 1982
Dated May 1,

1957

;

regulations.

nationwide problems.
*

than

lected

State

back

half

the

funds

by the government
New

the

the form

York

are

col¬

returned

local communities

of various

Federal

the
in

grants-in-aid.

manding

construction, has made it clear that
he

wants

control

over

ington,

content.

Furthermore,

that

tor

has

now

Byrd, 13

current

new

one

our

in the

combat

teachers

this

argues

affair

for

Government

believe

that

once

gets

the

one

its

tional level.
of

paper

economic

finger in the educational pie that
it
ever
will
withdraw.
Indeed,

the

City,

amount

filing and inves¬
involved. Much trav¬

address

Mcrtgage

York

enormous

work,

tigation is
*An

Dr. Schmidt before
Bankers Association, New

April

16.

already been made that the Fed¬
eral

Treasury

and

the

teachers.

Human

A. C. ALLYN

DICK &.

AND COMPANY

values

are

MERLE-SMITH

INCORPORATED

EQUITABLE SECURITIES

BAXTER & COMPANY

HALLGARTEN &. CO.

CORPORATION

SALOMON BROS. &. HUTZLER

L. F. ROTHSCHILD & CO.

COURTS & CO.

THE

ILLINOIS COMPANY
...

FREEMAN

COMPANY

MACKALL & COE

Congress,

highly solicitous of the building
industry to buy bricks and mortar
for school rooms, are neglecting
the

HALSEY, STUART &. CO. INC.

Federal

there are other bills pending pro¬
vast viding for supplements to teachers'
network
of
bureaucracy at the salaries and it's only a matter of
state level, at the local level, at time until this will be
done, once
the regional level and at the na¬ the door is
opened. Argument has

establishing

we are

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

definite

wits!

Thus,

The

Washington is sufficiently naive

juvenile

have

one-shot

limited program to have
dates.
Virtually

delin¬

text¬

educational

terminal
in

A Federal pro¬

is proposed. One wonders
taken complete leave

quency
we

are

for assisting the states

in planting trees.

ones

budget for fiscal 1958. This

includes

gram

and, according to Sena¬

■

Eisenhower, in de¬
Federal aid for school

books,

programs,

Price 101.817% and accrued interest

President

The central government,

in Wash¬
grant-in-aid

Schools

Taxes for Local

WALTER
May 2. 1957

STOKES &.

CO.

that

the

Executive and the Congress study

The

the

ment

Washington, D. C., April 8, 1957).

Washington brokers' fees and then innovative sectors of our economy,
returning the remainder to their our growth rate has not been what
communities. We've seemingly be¬ it could be under more favorable
come
incapable of distinguishing tax treatment and less debilitating
national

workers

capital

puts the economy under
constant inflationary pressures and
creates political pressures for di¬

and marketing technique, new

own

between

war

our

Mayors called at the White important that

seven

ficiency,

areas,

for

roof. This

controls

;

felt

On April 8, Senator Sparkman,
that it also had to offer a cure.
Both in govern¬
In fact, a whole series of alleged Chairman of the Senate Housing
private enterprise all
Subcommittee, said in a speech
limited and insatiable, it appears sorts of busy work, paper work, cures were provided, as special
prepared
for
the
Prefabricated
that the pressure for government public relations and other "non¬ insurance programs werd set up
Home Manufacturers Institute that
intervention and expenditures is essential essentials" are absorbing to encourage low-priced houses,
farm houses, housing in outlying "hard money" policy threatens to
.unlimited and insatiable.
our time, resources and dollars.
Just

demand

rect

for many

cure

Treasury; financing. This
can in time ruin the nri-

process

INCORPORATED

THOMAS & COMPANY

page

The Commercial and

plant and equipment,
expenditure of $29

producers'

The

Squeeze on Prices,

billion

tion

Thursday, May 2, 1957

and determi¬
wage-price
practices

.The examination
nation
soon

calls

into

sciences

and

beyond economics and
play other behavioral
for example, sociology

goes

—

into the picture.

come

Recent events have

tention

tain

whether

price

stable

healthy

employment,

focused at¬
can

main¬

level, full
and steady

growth of our economy, large and
powerful labor unions, progressive
and
competitive business enter¬
prises, and a government of lim¬
all

—

the

same

statistics and in¬

amount

terpolation which are required to
develop

rounded picture.
and production
segments of
the same
profits,

all

are

fully

Prices,

wheel. Labor costs are another seg¬
Other

ment.

wheel

segments of the

for example, the sup¬

are,

ply of credit, taxes and
tion

deprecia¬

stagnant

if one segment
turns, then all must turn. If one
segment gets a little flatter than
the
rest
of the wheel,
or
if it
then

bulges,
to give
times

us a

the wheel is going
rough ride and some¬

vehicle will run off the

our

road.
Prices

and

Wholesale

consumer

prices

sharply in 1956 after
a
period of sideways movement.
The rise in wholesale prices was

moved

steeper

steep,

than

the

for

the

increase

annual

years as a

average
postwar

uptrend in wholesale

While the

general,

prices

was

sharp

differences

there
the

facilities and -in higher

National

Meeting, San

bbf^bwihg ^,

\;> V3

costs,

faster. than

-v,

/ •;
and.
'
to* %"*?
large'extent these,*. %

gains in output per manhour.

earnings

hourly

Average

fringe benefit costs have risen

highs. To a

new

can
be
attributed ; to * C
negotiations—but not" ert- V.
; tirely.
We should not overlook
The
Consumers'
Price
Index the impact of the sheer demand •;
for
labor; 1956 witnessed what
departed from its sideways move¬
must be considered an abnormal
ment of the years 1953 through
increase in the labor force which,
-A/
1955 and started to march upward.

increases

farm prices, after
of decline, reversed

'And

several years
their trend and started upward.

wage

sharp
Then

ding

not

are

workers

collective

the

steel

flecting

Some

for

public

labor

The

of materials

used

SECURITIES
Bank, Insurance Companies,
Industrials

Caused

Increases

Entirely by Collective

j Florida's

Golden

Looking for
business
to

TRADING DEPARTMENT-

unions;

at
for

COMPANY

duck

the

same

not
on

try

labor

time

leaders

labor

all

is
try

responsibility for the

Price

caused

by high demand

ing costs.

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

FRanklin 3-7716

should

result.

mmmmmmmmmmmsmmm

Phone; Miami,

leaders

the

1956, I think

put the entire blame

foolish

TELETYPE MM51

INVESTMENT SECURITIES

causes

increase in prices in

Triangle

ALFRED D. LAURENCE

the

.On

the

ample,
heavy
$36'

increases

demand

have

business

billion

side,
the

were

and
for

picture

ris¬
ex¬

investment—over

spent

for

nonfarm

pressure.

Some

folks,

perhaps
off

take

the

heat

have

countercharged

*
;
trying to

labor
...

rate
cur

profits

ent inflation.
don't

charge.
pace
omy.

see

any

Profits

basis

have

for
not

that
kept

with the growth of the econ¬
For example, since 1947 the

Gross
up

corpo-

responsible for our

are

National

over

Product

has

gone

National income,

65%.

corporate profits, has
almost the same per cent.

excluding
gone up

Continued

L. J. Goldwater &

page

Group

most successful

was

D. P. Whitlock With

Co., members

of the New York Stock Exchange,
be formed

will

offices

of May 9 with

BroadA Street, New

City. Partners will be Leo
J. Goldwater, member of the New
York Stock Exchange, and Alexander L. Berliner. Mr. Goldwater
has been active as a floor broker
and in the past was a partner in
Gartman, Rose & Co.
F
York

J. B. Ross, Jr., Joins

Goodbody & Co,

unions;

that

,•:*

Forming Company

by consumer price index rises just
cited.
This will put profits under,
further

Bargaining?

Invest in

Smith, Keith Reed and

(Brud)

of the Texas

L. J. Goldwater

They

somewhat on the defen¬ margins.
Then as these cost pressures are
about "excessive prof¬
working
their -way
its"
and
"labor * busting."
The relentlessly
charges and countercharges through the economic structure in
merely
muddy
the„ already 1957, we begin to experience another
round
of jwage
increases
troubled waters; they add frustra¬
caused by long-term contracts and
tion to confusion.
also by escalator clauses triggered
Price

talk

Were

Convention

meeting, with over 400 in attendance.

to be fully reflected

people,

sive,

Secretary:

Company, Dallas.

manufacturing and
will continue
to press upward on profit mar¬
gins, unless wholesale prices keep
going up.
But, since wholesale
prices seem to have leveled off—
at least temporarily,
this prob¬
ably forebodes a decline in profit
distribution.

union

Labor

costs

./.-/v

Executive

costs

labor

sC'-.-Z./•'

:■'

later stages of

increases, bring

unions.

the

charge oi; "labor monop¬
oly" and ask for legal restrictions
on

has yet

1956

unit

tx-Cfficio.

Profits

the

not be as strong as

Eddleman-Pollok Co.,

Executive Committee: William Parvin, Austin, Hart & Parvin, San Antonio; R, R. Rowles, Rowles, Winston & Co., Houston;
Jor.n W. Turner, Eppler, Guerin & Turner, Inc., Dallas; Taylor B.
Almon, Rauscher, Pierce & Co., Inc., Dallas, ex-Officio; William C.
Porter, Dittmar & Company, Inc., San Antonio, ex-Officio; Milton
R. Underwood, Underwood, Neuhaus & Co., Incorporated, Houston,

and

rise

.The

V'. :rV/v \

con¬

...Houston-,

Allison & Co., Inc.,.

Securities Company,
V',,;- '
...
v'/.,
U.

Secretary-Treasurer: John J. Fosdick,

;■

labor

for

demand

The

forcer

Antonio; B. F. Houston, Jr.,-Dallas Union

Dallas.

1955, and will prob¬
satisfied
by
normal
growth of the labor force.

point

people

1956

ably

investigation.

management

previous * years.

Frederking,

Hess

Fridley,

Vice-Chairmen: John P. Henderson, M. E.

balance of supply and

demand.

will probably

oil, becomes the

Chairman:..; Earl

San

Prices, at least in the wholesale
area, have begun to level off, re¬

reactiongo out of

and

than

severe

V* i.l.am

Milton R. Underwood

Houston. ;

costs, it was not the whole

'J. ?■; v
1957, however, the impact on
the economy of wage agreements
in 1955 and
1956 will be more

public

price increases

Smith

Brud

are

sigin the increase in
was

story.

asks

themselves

bargaining

factor

nificant

"who
is responsible for the situation?"
and
the finger pointing
begins.
about

conclude, therefore, that while / '

galloping inflation.

cerned

off.

leveled

about the inevitability
and, in fact, the advantages of
a
creeping inflation.
But that
philosophy has now been chal¬
lenged,- because a creeping infla¬
tion has possibilities of becoming
a
walking, running, and, finally,

Businessmen

production workers; employment of salar.Led VA
was
sharp; While
the V
of
production
workers..

number

time there was some com¬

someone

/ ;

for

than

the rise in

labor

Inevitably,

work-

salaried

for

marked

placency

wh'ch ~
well organized by labor;;
«
trades,

service

there was an increase in • ,
And in manufactur- ; >
ing, the advance in payroll was

Changed Inflationary Views
a

^-V.

rates of pay.

inflation.

For

lauor

the

about 750,COO
in 1956 it was

unions,

for

cures

women;

Even

and sharp

the causes of and

year

twice that amount.

ers

sider

and

men

increment

each

force

leveling-off point.

steady

of the price for labor. The

normal

increase
in prices in 1956 properly caused
considerable alarm.
The Presi¬
dent's economic report has several
warnings. Throughout the coun¬
try, discussions were held to con¬
The

in 1955, does affect the

crease

f^crd

reached

to the abnormal JQbid¬

when added,

Spring of 1956 we ..had
increases „Jn - food prices.
in the "Fall of 1956, after

the

to excessive wage

FLORIDA

own.

our

labor

that

fact

refutable

Jha! busi- -/

investment did .affect
prices.
Then
we
are
on 'solid
ground when we move on the ir-

pace

such

TRADING MARKETS

recognise* that

nessmen

were

Francisco,

;

I( suggest,, therefore,

price

'' /;*

costs.

;

«;

ing of investment demands, both
in terms of higher costs of new

their way to justify them; a price
increase in a major commodity,

Mr. Post before the
industrial
Conference
Board

address

on prices/ Business
~
price Torthe^bdhch>" -j,;

effect

range

itself paid a

occasion
*An

•

Regardless - of the long-range
this tremendous demand was bound to have a short-

the

whole.

tion of America:,

advantages,

of various components.
example, we had a levelingprices for raw; industrial
commodities as against an accel¬
eration
of
prices for
producer

event,

any

economy

following new slate was elected to take office in December follow¬
ing the National Convention of the Investment Bankers Associa¬

With¬
might have/ a % '
(which would i ^

changes

policies.

this surge

out

able

Group of the Investment Bankers Association held April 21-23, the

grow.

For

off

was

DALLAS, Texas—At the 22nd Annual Convention of the Texas

be far from stable)*, *r%

prices had passed their sea¬
sonal
peak
and
began
edging
time.
downward, the influence of the
Taim going to cover only a small
preceding rise in the wholesale
portion of that subject, namely,
prices of nonfarm
commodities
the impact of collective bargain¬
began to be felt. Now the Con¬
ing on prices, profits, and pro¬
sumers' Price Index has reached
duction.
I can give you only the
an all-time high, with a real ques¬
highlights — the topic sentences,
tion
as
to
whether
we
have
as it were—and not the consider¬
functions

ited

investment

have continued to rise

inevitably, poli¬ goods.

psychology;

tics

solution.

and services.

heavy

Investment Bankers Association

Elects New Executive Committee

demand and competi¬

take risks and to

personnel head absolves organized labor from
sole blame for rising prices and denies corporate profits, either,
can be held responsible for this phenomenon.
Mr. Post directs
attention to wage increases in non-organized service trades ;
and manufacturing-salaried workers, in allocating price-causal
factors to both labor and pace of huge investment expansion.
Predicts: (1) present mixture of higher unit labor cost,, price- =;
leveling and lower profits^ is bound to slow down growth rate; (2) business will probably absorb 1957 wage-cost punishment
but may be unable, to do so, again in 1958—though labor de*
mand may not then.be as strong as in 1955-56; and (3) should
unit labor cost increase appear it 'will squeeze; profits, affect
retained earnings and, in turn, business expansion. Looks to
business community, not labor or government, to come up
with necessary

bound

was

goods

for

This

Continental Oil

This

good for the country, in the long
run.
It
represents ; the
strong^
motivation of American business

Oil Co.

Relations Department, Continental

Texas Group

1955.

to increase

By JOHN POST*

Manager, Industrial

of
in

top

Profits and Prodnction

Financial Chronicle

(2054)

BUFFALO, N. Y.—J. Bert Ross,
Jr

is now associated with Goodbody & Co. He will specialize
in institutional bonds sales with
>

offices

1709

Liberty

had

For

been

Vice-President of

Union Securities Corporation since
1950.

Daniel

Whitlock has become

associated., with
of

firm

Co.,

the

Ladenburg,

Broad

investment
&

Thalmann

Street, New York

City.
Mr. Whitlock was

formerly.with

the Marine- Trust Company
Western New York,
'
%

Thomas J. Cline With

Dempsey-Tegeler Co.
(Special to The Financial Chronicle)

CHICAGO, 111.—Thomas J.

Cline

has become associated with Demp¬

sey-Tegeler & Co., 209 South La
Salle
Street.
He
was
formerly
with Kneeland & Co. in the trad¬

ing department for many years.

Bank

the past 25 years
he
represented Union Securities
Corporation and its predecessor J.
& W. Seligman & Co. in Buffalo.

Building.

Ladenburg, Thalmann

With Foster & Marshall
(Special to The Financial Chronicle)

PORTLAND,

Ore. — Lyle
W.
connected with

Baldwin

Foster &

Marshall, U. S. National

Bank

now

Building.

185

Volume

•

Number 5634

'•••

The Commercial and Financial Chronicle

•*'

•

i,,

•;

•

•'

)

World Industrialization's Impact

(.raid,
..

mitiee

Upon United States Exports
■

By WALTER H. DIAMOND*

promote

Benjamin

trade,

;

expansion

trade,

well

The

will

taxation

East-West

because

economist

suggests U.
America and the Far

exporters

concentrate

will

which cnanging oattern
events wmcn. changing pattern

momentous

shdpe the

^ £!
the

of world

course

in-

t h

ready

are

a1.-

!•?-

: •

t h

e s

the

torted

•

...

; kfriied
armed

-last

half

/ "' and

fofce

this

ere-

inception

"Far Eastern

Doctrine.",

forces

means

result-

from the Suez

century

will

not

end

the

with

of this Middle

-doubts

East r-water¬

Second,"
Amer- ;

Walter H. Diamond

,en
ican foreign

usefulness.

world

there

GXDsndincf

instance,

60 million people, jrepre-

are

senting

means

consurtiGr

Brazil^ for

above

one-half

all'

So*ith

market,"

America, and the population is
Fairless. /growing' at the
amazing rate of.
V''77*
2.4% annually. This is 30% faster

the

pat-

new

Second,

exP^ting than the. favoritism creeping into the union il -joining means it begins operation. That '
before the U. S.

Germany and their
ritorles

into

ohe

markets

market

Europe

Market,;- But

before

this

Finland.

outside

output of any

InWs £dUstria!

output has

since the end

koo<!5.

one

ristn

of World

ket will

anv

bourse

Far East.'4? enlarges

India's'potential

Opening of the Common Mai- dustrial goods

for

in-

eight times/'

increase- the economic!,-

Third, select small markets as
six countries/wel* as large* ones.-How many excapital; porters today know that because

encourage

These advantages will benefit the

com-

the

Colonial; Africa.', fr
the"lare«t
increase of
logical, places to turn are, ^tionin the world. This of

the formation and investment there..

Scandinavian customs union

where

out

and

en^r^cm?; 17 European nations,, specialization of the
i,n^

U.,^

groSs national

and *lSt"groundwork immediately.
to seek out new

overseas ter-

massive

find

customer

country has had a phenomenal
must-Vise Few businessmen realize that

exporter

without tariffs or trade barriers; The
is only the beginning.
:
Latin America and the

"the" Suez" crisTs'mbre" tha"n~$I
.

-lai.

»•

American
export
firms,, billion is going into relatively uhwhich either already have over-- exploited
territory
of
French

Nor- large

Denmark,

subsidiaries and branches

seas

Equatorial Africa for development

which will not find it difficult to.

Gf manganese sources to

shipping' will.". Actually

never again be the .vital

market.

far

supplant
Middle
East
and
South produce or license in Europe. But-Far East sources?
;
<panal's. futurevAmerican-.countries
to
^expend. what about the small exporter in- Fourth, make use of the ExportThis-^former
nerve
trade through lira payments. TT
c
rourwi, mdK.e use oi wie jixpori

center; of

•-

r3t)idlv

Naturally, this

the

fident Nasser is still raising serious-East,

the normal.

where the

areas

increase

when all tariffs will be of Canada—the largest
abolished for the six countries, for American goods.
' "
they -are
bound- to
see
some;

Moreover, six months after the1 tion. < In addition, the new "lira
blocking of the Suez, Egypt's P-resr area" will tie Italy with the Far

reopening;:

First, look for

population

do. years,

trade

way and gweden will be in opera-,

dilemma, will

common

recommended

of. Belgium,-France, Italy, Lux-,

decision'
decision

greater

short, the small
but
exporter can get his
growing world trade
resulting from this era of industrialization by following this sixpoint program: ;
aggressive

Japanese

some

indus-

share of the

intends

and

completely

Government purchasing of stra-,
prising
tegic goods and heavy equipment,

revised.

increased

years,

under

to
counter the European scheme with

modity situa--.
resulting \

new

goods.: Japan

com¬

tion

way.

tremendous

are

the

trialization abroad in the past five

Market

aid

get

mori market will, exclude

their

the Eu-

was

than for the

are

year

~ more to disrupt American

Market,

fense soendins and the
.fe se, spending,amd.the

Common

not

farm

rcducGcL tsiriff Ic^vgI/ioi* the Gorn-"'

•1™Serin/Equally a larger free trade
goods everywhere -increased de- zone. sponsored by England.and.

dis¬

today
of

assurances'. Committee.7,;*7'"7'
and Washing-.
/; Although American business- • than the pace in the U. S. now.
contrary, it is my firm men will not feel the full brunt. The number of people in Brazil is
conviction
that
nothing in the. of the Common Market for 17 almost four times as
great as that

^ot traae result

Common

because

"t<m "tO"the

out. of the. Suez^dilotfmaa

arising

T h

e.;

first,

six

by^Paris,-- Brussels

•

feel-;

two-

Europeani

ing the effects
of>

trade

f3r

the

"Eisenhower

'Despite statements
"

Eastern European revolts and

dusiriahzation in 1957.: America's, the

exporters

to /.remember

aied rather

-.-of

■

Three

.business

Scandinavian
businessmen
also alarmed inasmuch as the

and

2?th Century

fiXporiGr *is

^ropean Common Market

Latin

liRely

East, and increase manufacturing in
Europe to retain markets there; Six-point program is outlined
by Mr. Diamond showing how small exporters, ton, can share
in growing world trade caused by incredible pace of world
7/:.-:v/
///•-/:.' industrialization.-;

;

tiie

J /19b? ds'the one in which

The McGraw-Hill

The

take.

the

will- have
,

7 East crisis, Eastern European revolts and increased-East-West
7 trade, and the European Common Market.

for

*he end 01

capitalize on the $1 billion export increase predicted
1957, and $4 billion for 1965, and adapt themselves in
Ihne to the changing trade pattern resulting from the Middle

This

Canadian

law. ' But the International
Commodity Agreements for tin,
sugar, rubber and other products

can

members

foreign income.

firms

Market.
the

farmer

Widely known international economist explains how U. S.

for

surplus program will not be upset

.;
and •../«
-V /."•/
Economist, McGraw-Hill International Corporation

Common
hard

imports from Allies and reduced the

Editor, McGraw-Hill "American Letter"

//7■'

headed

lower tariffs for

the

from

com-

recom-

Fairless,

mended

- >

,as it, historically hp$.
President's Citizens Advisers

■

(2055)

link.it

this

multilateral

regional

trading

scheme'

came

Capitalizing

'
New Trade

Import Bank's new lending pro"

especially designed for the

' gram

nationalization1 seizure last July.' '"aturay .)a;1 .y®5r .w?e'n
seizure fas/july!' Haiue' anrt"ParUo'nhs fn™ert"in'; Fortunately, the opportunities; sma11 exporter. Small loan apof the 1956 uprisings in Eastern.
Now the world's
S S"?
V
ls ,Vlubs formed in,.
Eurone
the
as6 well
wellSiasSS*'" Middle Now the- world's largest oil com-* Brazil-and Argentina respectively for the sma11 exporter to get new'..;, - ; Continued on page 47
largest'oil; com-'"
j8
a"d A?g?ntina resbertivelv
?-.,
East
debacle,- is
inspiring the^fo^alterha® oil
p^pehties hrfd' fi/StA ihit.iated the circumvention,
easing of controls on exports of

econ°mic

pcUcy, engunaeren cut
policy, engendered out

non-Strategic goods
non-strategic, gooas
munist4. woHd.
"**

birth

tomTs

union

six

And

third-

the

half

cuscus-

Turkev .alone
Turkey alone

the

American
-

route

Tsrael will aft^orh another

df tife

cn.^h

through^-opurn

flowed

S?.n,.ca^
^nYVnartive"-^-h u?der n<> circumstances to be cdmtjufifs op ojffmg of these securities
awJw/^vlnnn nf five,
jor sale, or as an offer to buy, or as.a solicitation of an offer to buy, any

take

0*nce

The Ffench^financed

best

export
outlets; is bound to shift the emphasis of United States trade from

will
will

that

Suez.

160'tmllion people-'throuvh

America's

daily capacity of petro/'

Common. leum

single
single

a
a

-.,

^tes. Byvl96MtarSJ\v

the 'Com-r through
tne com-;
through

European"

ting
creating

Market,
for

nationalization

the"
*

group

neighbors
*

and

just

re-

0j such securities. The offer is made only by

of .five

;'A

Republicsmile-. NEW ISSUfi
into;
a real

'"S>f>

•

the Korean War

this tremendous

Needlessto-Jodfedd

sfn^the

De--Union founded in. 1950.

State

fnr

far-reaching offshoots

The

Euro-

ran

P„ Thi Lvanre

gariization for European EconomicCooperation
world

the

trade

•

<.-

parts of

But its,

upon Ameri-r
businessmen who ship abroad

now visualized.

(A Netherlands Company)

• r

;

f ;

U.-S. exports,

Wel1 ^ Canadian and Japanese/

many. wij.p

SUffer'" sharply as result of ■
the Common Market. Lifting of'

Africa and. the Far^East.

Price $29
per

farjffs afl(j other barriers between

it can^accomp^hsh A0' jhe
the Arab leaders tempo-

American
American
export-^ appease
have been able to retain their

(Koninklijke Luchtvaart Maatschappij N.V.)

ies wil1 be far greater than anything

I^tin America,,and some

?£eas

exDort-r'TSf

Fortudatelv
fortunately,

S advance stag^s

■

tfihid ln^WeS^n^
; tamed in Western Europe,

•

Expanding Commerce

than

billion

' of--C2^P

aggregate
less

was

of Western Europe.

•/

detrimental-impact

Payments Union,and the

pean

Royal Dutch Airlines

KLM

-Ftien serve an outstandln$ Purpose in
for Zoo
aeeeleratjng the full industrializa-,

Vj o/ttinf" rail hie
two/°*f" ^
J, Sfdt SS:ti4n

the

•

(100 Dutch guilders Par Value)

o(: partroent a, enwura^ng ^ew .<dl ..There is little doubt that-theis responsible for™d westera^Lrope^'s 1 re^dy: European Common Market willupsurge in inter-.:®"?

trade.- Prior to inception
of the Marshall Plan, and its

ers

t^e

that

250,000 Common Shares

end

national

;
v

when- theSuez Canal V"„;.
by 1968, vwhen the Sue? Cahalc jjtone' iil their ultimate
economicCompany's" fights expire,' only -T® tion
t i?n
integration.
Of
course,
the'/
Europe to Latin America. -25% o£ Middle East xpii will
oil
go
"father'' of all the
This year, for the first thne in
these geographical.
through the Canal.-'•
.
tfading'units,' each! one putting
history,-dhe total pf world
trade. In appraising the future eon-" the U. S. exporter more and more;
tribution of the Suez to world in- at the mercy of finding new mar?
V , iTP;^,both ®on, ,':rbu!: dustrialization, it cannot be over-" kets, is the .'European Payments
ing about

industriaiizhtion

of the Prospectus.

OTMntotlonfive'

organization

CaikPs^d,^?tVtAmencan
regarded

Western

$100 billion.

means

six

countries will encouraged
d*

ir„rnnpan<; tn huv from each other

rarily as far as assisting in Indus- /
P
• 7
interna- " trializing the Middle East.
' •
i » But more damaging is the need;U. S.
'
for sorrre countries, especially Belcommercial exports will rise about
East-West Trade Expansion / ... gium, Holland and West Germany, 7% to $18.5 billion while imports*'
Since the uprisings in Eastern:to boost duties on American goods V
share

tional

will
total

this

expanding
In

commerce.

1957

gain 8% to $13.5 billion, or a
of $32 billion.
This is 16%

Europe
there

/basically

are

doubt

economic,

the

upward

of
the
wbrld's
trade,
approx^i- trend in expansion of East-West
mately the same percentage held-trade Will be stepped up even
in 1950 when all world commerce' further. As a result
many Ameramounted
to
only $100 billion.. iPan exporter's will find new mar-

The fact that American

ization

industrial--kets

already

was

centuries

1957.

Rapid Strides in the

industrialization

the

East

Copies of the Prospectus

to fall in line with other members..
Expanding commerce between the
European nations will force U. S.1
exporters to concentrate on Latin
America in the future.
At the,
will be
can

rities in

European competition

time

same

be obtained from the undersigned only
undersigned may legally offer these secu¬
compliance with the securities laws of the respective Slates*
may

in those States in which the

intense for AmeriThe only way the U. S.

firms.

ahead of the development in most

wen as the West last year .were, will be able to hold present mar-v
this
responsible for a 15% rise in the kets in Europe is to manufacture;
fantastic.* value of exports to each other/there.
Subsidiaries of American
Thus it is safe to assume that the jn
1957, farm surpluses will be • concerns in Europe will find many
U. S. will still be capturing about- the main source of
shipments to new customers-.
'*
•
'
*
16% of the world trade in 1965 the East from the U
S., as the .
j
Countries
when our exoorts will have grown white House will
get Congress to .-impaci on uiner.countries
to
$22.5
billion and
imports to remove the ban on sales of agriUntil the larger free trade zone
areas

the

world

comparison all the

$17.5 billion.

cultural

To maintain this large share of

porters

commerce,

will

techniques
♦From

fore

the

have
and

American
to

ex-

adapt their

markets

address by

40th

Corporation
.

Kuhn,LoebaCo.
-

the

Mr. Diamond be-

Anniver-arv

Conventi-n

Digitized AprifX2°^957?nagerS u °
for FRASER

for local cur-;
Communist nations..
Poland, whose trade with Russialast year amounted to 65% of her
total, will be Washington's principal target in order to force a
wedge in Polish economic dependenc0

°T'

products

rency to some

the

jviOSCOw.

Soviet

But

satellites

trade

will

with

Britain

markets
too

cu^omers

will

also

will

turn

and Africa in

Eventually

give
in

the

established,-

lose

Latin

new

Canada

.c*

She-

will

& Co.

■

Europe since agricultural

Kidder, Peabody
'
/

Co.

D-

■

America
have

Harriman Ripley & Co.
r /

Model, Roland & Stone

White, Weld & Co.

exoort drive.-

HalloartPn ^ fn

Hallgarten 0C Lo.

the bulk of her grain sales

Eastman Dillon, Union Securities & Co.

^f,1CorI?rI* .ftT
«
ncorP°rate
LazardFrercs&Co. Lehman Brothers Merrill Lynch, Pierce, Fenner&Beane
T

traditional-

Continent.

BlythaCo.,Inc.

•' Goldman, Sachs
r

world

The First Boston

Smith, Barney & Co.

makes

Doan WiftPr fr fn

Dean Witter & to.

1957>

oro-

follow duce is only temporarily excluded

■

The Commercial and Financial Chronicle

It has provided in
fact,, simply adhering '■* to
a
equality in worldly pos¬ realistic principle with respect td
sessions than any socialist or com¬
the money supply laid down long
munist,
society
has
done,
or ago by the great common sense
showed the slightest prospect of philosopher
who
founded
this
doing.
university. '
■"7" ■V-;'7 v777:7.:7k
than for the few.

ByllesbyCo. Elects

;gi;eater

in Monetary Policy

No Magic

By WM. McC. MARTIN, JR.*
Federal Reserve System

Chairman, Board of Governors

the illusion that economic difficulties and
sodal. injustices can be' cured by opening wider the money- <7
credit spigot, Chairman Martin succinctly] outlines Federal J
i i Reserv* policies and askswhat would any. change of pplicy
1
accomplish; The Reserve Board head contrasts the age old
ff I systein df iotelitarinn control with the market system's unprec¬
edented contribution to material advancement and individual
freedom, and solicits continuous examination and study of our ;
:k
r-business civilization for possible improvement. f ; ^ ;
;f
Addressing himself to

■

.Since the business civilization is
ancient form to those of us

liv-

ing today, we are often inclined
to accord the contempt bred of
of

in the
there
gains in terms of per¬
sonal liberty.. Powers of decision
are dispersed among the millions
affected, instead of being central¬
ized in a few persons in authority.
use

&rey-

flanneled men
who

/ its

personify
shortcom¬

ings

'in

litera¬

rent
ture.

cur-:

of economic resources,

are

some

the

efficiency

advantages

manifestations

terms

In addition to the

and

economic

measured

7*; terms alone.

its

vast

The basic concept of the

market
system has remained with us since
the founding of the nation. It has

Yet, only a
couple of cen¬
turies ago the

society down to this day, although

business civil¬

ization,
more

remained

McC. Martin, Jr.

that would furnish
just coming
into recognition as a new way of
life that offered a promise of material advancement and individual

such

freedom

■

some

extensive

structure

the

our

re¬

time to time.

whole from

Remodeling the Market System

cornerstone, was

had

men

before.

known

have done

cornerstone

the

market system
its

the

modeling

or,

pre¬

cisely

never

Some

the

remodeling

have done in the past has been

for
admirable purpose of correctjng structural detects and distortions that were warping the sysComDetitive

tern

■

Franklin,
back
in
system of free enter¬ 7 Benjamin
down
in
these 1
prise have come a bit closer to 1729, wrote, it
abolishing poverty and its attend¬ wordstj."There is a Certain pro-'
ant evils than any one has ever portionate quantity of money re^>
come
before.
This is an unfin¬ quisite*.to * carry; on the Trade of
ished task, however, ahd one that a Country freely and. currently;
than which

requires the

Advantage in

use of our minds as
the gift pf our hearts*'*.

would

be of

systems, prevail-

these

countless
to

the

ensure

execution

keep society going
custom

well

disagree-

pleasant ones.
and usage
iobs were

assigned • from

genfration
men

father'

the

to
used

was

That

Egypt to
It is used in

man objectlves#

Trade; and less, if;

have this school and its

coun-

worth

terparts in other universities; for
the

for

need

; thought

rational

economic-

of themiost impor-

one

tartt of .our time.

example of that need. It is evi¬
dent in a suggestion often made
days that if only the
Reserve's

were
more

new

monetary

changed
of

Fed¬

policy

could

homes,

construction

have

rapid

vitally

needed

schools, hospitals, and other com¬
munity facilities, more new auto-*
mobiles, and more new highways
relieve

have

the

traffic

already.

Well,

Policies

jams

outnumbered
their
urban
brethren by nearly three to one.
But well under way was the
growth and movement that has
more

The

There

Change?

magnificent

ment in social

provided

achieve-

engineering, for it

mechanism

for

our

its

certainly

activity
bers.

its

individual

It constituted

mem-

of life

way

affording to the individual
nity unknown under the

dig-

the lash

Last Two

Years

has

economy

straining

been

influence
of
inflationary pressures.
Total
expenditures in terms of money

capacity

100.

ratio

is directed toward

than

shackling

abilities
♦ a

phrase

i 3'

Pjrty
3vP
any ^e^ning at alL jto
students and faculty of the
r

„

^uslness

^ was as a

still rare instrument, the
telephone. We did not have
^ctnc lights, much less automobl*f.s> gasoline tractors, _airplanes,

the

under

energies

and

.„t1h\D^rSofTD^?Lw.a.T.Ph;
Conv-cp>ti-n "f the FiijversUv
vania

Council

ver«ary

School

26,

of
«f

1957.

the

markin*
F^undinsr

Finance

and

the
of

penns"i-

75th
the

AnniWhar*on

Commerce,

not

this

as
•

are

April

the

mands

those

' spend still morev

economy

has

prices and

who

7 7

Thtese 'thihgS 'hsCyfe

policy of endeavoring, at
all times, to assure monetary and
a

ing,
and
rising
interest
rates,
pushed up by the borrowing de¬

there

Reserve

people

currency, and promote sus¬

tainable growth in the economy.

ing

wish

' r 7

and

Wonders of Distribution

The wonder is not that we have
these things, for the American

deflation

alike.

policy that recognizes
compounds its

bringing

cruelties

own

with

the

—

that infla¬

deflation

cruelties

progression
we
have
suffered
many times in the past with, conSequences heavy

in human hard¬

ship.

Operations in execution of that

economy
which, -like every¬
thing else in life, is always chang¬
ing. The recent record illustrates
the point.

1954, when production
falling away from capacity
unemployment
was
rising,
Federal Reserve System

policy

combating

facilitating

than

credit

and

has

increase

that

might

brought

the
re¬

back

use.

with employment at
levels
and
the
economy

1956,

peak

pressing against the limits of ca¬
pacity with booming intensity, the

tie gain in convenience, comfort
or
luxury for Louis XIV
or

Federal Reserve

little

helpful

to have

dis¬

of it

time goes on.

Federal Reserve

is not in¬

and it is a
good thing to keep people aware
that there is no magic in mone¬
or

perfect,

tary policy—or any other policy
power of government—that can

prosperity

ensure

for

perpetuity.
is a good thing to hold the

reason

to the illusion that

difficulties—and

social

well—can be cured,
effortlessly and painlessly, by the
as

simple process of pumping up the
supply of money and credit.
If we examine and continuously

study
our
business
civilization
earnestly and honestly, I am con¬
fident that, along with our deeper
knowledge, we will find strength
to
do
greater and finer things
than we have yet done.
And, in
doing

them,

Production and distribution

svstem
them.

could

It' C3tt

not

and

abundance for he mas
a

for

provide'

does

™

It is

much
e

of De r> e.

System followed

general policy of combating in¬

sion

of credit within

resources

the

available for

not

want

you

limit

use.

think

will

find

new

system for the many rather either

both

our

system and

ourselves.

of Kneeland

department
will

Co.

the

assume

re¬

same

sponsibility at H. M. Byllesby and
Company.
7;, ;
The business of Kneeland ^,Co.

effective

terminated

was

the

April 30.

close of business

A. G. Edwards & Sons

Absorbs Breining Go.
G.

Edwards

of St.

Sons,

of the Midwest's oldest
largest investment firms, has

Louis,
and

one

taken

the

over

the

business

house

investment

York

New

Breining & Co., effective May

Breining & Co., which has been

in business for 37 years,

New

the

York

a mem¬

Stock

Ex¬

change
and operates two New
York offices, both of which will
be maintained.
One office^ at 17

will be managed
J. Metzner; the
other, in the Graybar Building, at
420
Lexington Avenue, will be
managed by Mr. Charles M. Bowsky. It is expected that most of
the Breining representatives and
Battery
Mr.

staff

Place,

George

with the

continue

will

wards

Ed¬

firm.

A. G. Edwards & Sons has op¬
erated its own office

in New York

Its office, at 485
Lexington Avenue, will be re¬
tained as well, giving the firm
three
operating
New
York
branches. Joseph F. Wittermann,
of the
Edwards firm, has been
named as co-ordinating manager
26

for

years.

for the New York area.
The

Edwards firm has been in

business since 1887 and is

ber

the

change,

New

York

American

mem¬

Stock

Ex¬

Midwest

and

Stock Exchanges and the
Board

Chicago

In addition to its

of Trade

New York branches, t^e firm oper¬

nine

ates
area

and

offi°eS

the

Midwest

South.

Wi*h Securities Inc.
DENVER, Colo.—Harold J. Mil-

|ler has~ rejoined the staff of Se¬
Inc., Farmers Union
in curities,
of these instances. It was, Building.

claiming the System Was
dowed
with
special wisdom

faith

Byllesby and Company.
Glen A. Darfler, Manager of the

everyone,

flation bv holding further expan¬

be continued

ber

circumstances,

hope we will have the benefit of

injustices

idle

cussion, debate, and critical ap¬
praisal of monetary policy, and I

economic

been

the

all trading
previously

Kneeland & Co. will
through the facilities

rendered by

the

century ago.

and

expansion

supply

money
sources

into

rush

In these difficult

light of

followed

reminiscent

California gold

was

deflation

the development, of a

—

rush

fallible

policy must, of course, be adapted
to the particular circumstances of

credit

The

Shifts

has

tighter, and therefore
expensive, by a single phe¬

nomenon

Reviews Recent Policy

credit

Basically,

produced.

its

cyclical

May

and investment services

btten' happen¬

business
concerns,
and individuals

because

governments,

been made

It is a policy of combating, with
equal vigor, the excesses of infla¬

Effective

tor.

Francis C. Wool¬

Vice-President and Direc¬

trading

strain

costs, pushed up by actual spend¬

Federal

* some

of Directors, and

ard

of J. Patrick

Chairman of the Board

of H. M.

been reflected in rising

will be better

act

;.',7 7

been

Lannan

This

use

such

Charles II, or for Antony and
Cleopatra, in living todav.
Our

releasing rather

the

■

that

It is

,w ?

matlon and electronization.

C. Woolard

the election

nounce

trying persistently to
increase expenditures even more.

such

anxious to change? hjfit'WF'

referenJ;e to that comparatively

ac-

the individual.
u

result

What

further

people, working under their free
complishment of all the tasks so- enterprise system, have produced
ciety needed done.
and
are
producing
material
The
transformation
of
this abundance as no people in hiscountry from a wilderness to a tory' Yet great as are the wonhighly develoned business civil- ders of production that have been
ization in so short a time demon- achieved in the American system,
strates
the
results
that
can
be
st.in greater are the wonders of
obtained through a system which distribution. There would be lit¬
another would

• "

has

the

it would

there is

course

;

policy

each might freelv go wherever he

thought his fortune lay, the interplay of one man in competition

were.

possessed

you

magic, and all of

tion

suburbia—by
of nearly two to one.

older

authority
the chains of caste. Yet, though

with

assure

dwellers in the majority—despite

radl0' television, wonder drugs,
social
systems.
' In the market'ai^conditioning,
frozen fruits,
system, each man would be guided yeg®tables, meats
and waffles,
to his work by the hope of reward
to°—or evjn such words as auto-

rather than

Reserve

But of

time.

any

magic, I

tion

sus-

taining and maintaining an entire
society by the free and voluntary

Federal

population to
than 170 million and put city

spcial control, the market system
must have appeared to men of vi-

wants

man

|he swjng to

Against these age-old systems of

sion

current

our

\70

Francis

Are

would

Darfler

size, but the fact remains that the
capacity of any economy to pro¬
duce goods and services is, at any
given time, limited by the re¬
sources, human and material, that
are currently available.
The fur¬
ther fact remains that, when the
economy
is
running
at
peak
levels, creation of more money
cannot produce more things;
it
can
only push up prices.

Glen

Republic has grown enor¬
in complexity as well as '

Over most of the last two years,

What

ers

viet's five-year plans.
......

Lannan

mously

We do not have to look "far for

these

Patrick

Continental." v w-.*j

Since its early days, the Ameri-7
can

■

eral

thing as too much money imThe*
as
well as * too. little.
Their experience is recalled in a
bitter saying we still use: "not
economy

When the Wharton School was
have wanted to borrow and spend
founded in 1881, the population credit conditions that will foster, more
money than they were will¬
of the United States numbered high levels of business and eming and able to save in order to
about 50 million, and rural dwell- ployment, maintain the stability
buy more things than can yet be
of the

carried

Unprecedented Achievement

} ■

sharpened and
the dicipline of ob¬
jective study. If is fortunate that

off

modern Russia to execute the So-

jng material advance against other

tasks,

necessary

thfr sol.e obj£true
older

was

for

ancient

build the pyramids.

eco-

generations, as well- as our own
\et 1%. b<? said' to our credit, that

did the work deemed appro-

workers

•*

demonstrated

exercise of reason,

it.

"0,™c S?a!s as
tive.

peo¬

and

son

generation,

after

come

American economic action has
often beten determined by balanc-

priate to their caste.
The other system antedating the
market system was that of authoritarian
rule,
in which the
whip of centralized power drives
It

^
?
about because the to accept
American
ple have refused

jobs that had to be done

able jobs as
Bv

the

U*•*'•-?

founding

clarified by

func—

freelv

immemorial.

One

va.**;

of the Wharton much'5'less7'Exceedingly''^detri- :
mental.'V;
'
recognition
In.7 Benjanxin-v FjankUn's.;;own <
that the business process is a ra¬
tional process, not a mysticai of lifetime, virtually: ever^r ,An\erk;
The

oneethying>

marPkets

ing in India until recent years,
employed the forces of tradition

135
of

Exchange, an-

the Midwest Stock

well

Incorporated,

Company,

and

South La Salle Street, members

men's tionlng
ar*
and fine world indeed if, by merely
in its figged
markets
another.
Rules opening wider the spigot of credit, have increased more than the
to the ancj regulations to prevent rigging the Federal Reserve could in¬ physical
output
of
goods and
which are necessary and essential to a crease the flow of goods and serv¬ services,
and
buying
demand,
society had been organized from sound structure
ices sufficiently to meet all hu¬ based in part on credit expansion,

lifted
they first saw
development an alternative
other two systems around
The market system

hearts when

time

■'

The advantages of a . system
where supply capacities and demand; wants
and needs are magic one, and the faith that men can was to learn—rthe l?ard way—;■
matched in open markets cannot cart master and improve it by the the ^aet7th^t ;iliere"^ cari^ fie^sucht
be

familiarity* to
some;

Cites Ben Franklin

American

School

Lannan & Woolard
CHICAGO, 111.—H. M. Byllesby

Most

noteworthy of all, perhaps,
rthe' American
people
and
the

•

Thursday, May 2, 1957

(2056)

Stanley L. Sherwood
a

■:

J I

Stanley L. Sherwood, specialist

en¬

municipal

bonds,

parsed away

April 26 at the age of 52.

Volume
'*.r

185

Number 5634

/; X .V

•

"i :

'v.*

•

The Commercial and Financial Chronicle
V v X' *
Tow.
•». v'.»
>, v

(2057)

Effect of Recent Court Decisions
x

david m. wood*

pal

;
•

The

gaHons—which

X I have been, asked to explain the
effect upon the security of munici¬

pal

bonds

Supreme

of the

the

start

in,
I

Wood

some

that

the

adverse

decision

enforce
much

made

recently

been written

the

requesting

-XX X

;

/'-

Perhaps the sudden
the

subject,

after

XV.

was a 1.44
a

was

interest." No

one

/municipal

time.

securities

a/few

quite natural

t bond

defaults,

courts

enforce

;
*

putting

/ One

trine

Tompkins
Erie

wras

Erie

Railroad

Traced

Railroad

suit against

for

personal injuries.

that

the

■

for

with
the

It is

payers,

pa.ljties

the

vis

thoroughly informed regarding
history of state and municinal
financing in,this country and the

the

rendered

suits

brought

limitation.

wo'iid

sought

would
*

issue

assert

/ enforce

that

order

'understand how

you

this personal in-

juyv-suit against the Erie Railroad
affects

you

dealer

bond

suits
*

would

necessary

for

to dis-

*An

address

Mr. Wood before the
Municipal -Forum r'f New,York,' New York
City? April 26, IPSTr^"-* ~
'

that the city

was

their,

obligations,

and

the bonds
in

the

it had j-

SU6d 't(^.fllG' CffGCt tilclt tilG bonds
limit.

the

The

x......

pal bonds

were

to be

Federal

motion and

bonds

known

X< Obviously,

-1 X

•

purchaser of

nicipal bonds would have

which judgment was subsequently

Ac-

the

Federal courts

bona

fide

/the Doctrine of

/.'

/...

•

Continued

Price $25 per f

.,r

P/f

tin

page

offer to buy•

hare

Copies of the. prospectus may be-obtained from any of the several underwriters only in States in which such nndtrirntrrs are qualified to act as
dealers in securities and in which the prospectus may legally be distributed.

Blyth & Co., Inc.
r

Tke First Boston Corporation

.theih

/X/X;

/•

„

to
contracting

;

First California Company

*/ -Pacific Northwest Company

this

•'.»

salutary

Davis, SkajJ^s & Co.

■

Paine, Webber, Jackson

Curtis

Zilka, Smithcr k Co., Inc.

IIHl Richards & Co.

Schwabacber k Co.

■

Bateman, Eichler k Co.

•

McDonald k Company

Wa^enseller & Durst, Inc.

♦

Walston k Co., Inc.
."".'VX. if.'Z t'jLJ'
..lister,,Ryonn k Co.;

(Incorporated) "

William R. Staats & Co. X

Shuman, AjJnew k Co.

Crowell, Weedon 4^Co.

Mitchum, Jones k Templeton

Brush, Slocumb & Co. Inc.

Central Republic

Bingham, W'alter & Hurry, Inc.

Company

(Incorporated)

Irving LumFoorg k Co.

June S. Jones k Co.:

Foster & Marshall

Francis I. do Pont & Co.

McAndrew k Co.
McAndrew k Co.

Mason Brothers

Revel Miller k Co.

Incorporated

Wilson, Johnson k Higgins

Reynolds & Co., Inc.
The First Cleveland

Robert W. Baird k Co*,!

Hannaford k Talbot

Corporation

The Ohio Company

E. M. Adams k Co.

Wulff, Hansen & Co.

William J. Collins & Co.

extension

C-

„

"-X

Dean Witter k Co.

Incorporated

v ;

Merrill Lynch. Pierce, Fenrier k Beane

Blankcnship, Gould k BLikely, Inc.

the

(far Value $7.50 Per Share)

T-

intended

person

deny the truth of thosrt
representations to the detriment
of the other innocent partv.
Jn

been

was

Common Stock
U:<f

•

suit brought

innocent

upou

Atkir-«in and Company
E. W. Clark k Co.

(iamphell & Rnhbins
Incorporated

Ferris k Company

Dempsey-Tegeler k Co.

Fewel k Co.

Wm. P.

Handel, Lundborg & Co,

Hess k McFaul

Harper & Son k Company

Loewi & Co,

Daniel Reeves k Co.

Incorp'»rat<Hl

to, public, corporations

ouite

individual

ob-

Portland General Electric Company

have
would

him, he would not he permitted in a suit brought upon the

principle

courts
we

clause,

which

Private and Public Morality :

held invalid under

constitutional

were

caused

bonds

that

permitted, in

The

on the gi-ound
estopped from

300,000 Shares

falsehoods.

that, defense

offering of these si a -es for sale, or an offer to buy, or a solicitation of
any of such-shares, the offering is made only by the Prospectus,

short, the courts wo"ld not permit
a
defendant to profit by his own

brought bv the bondholders

enforr»n

such circumstances. ,X

bonds

contract to

permit

investor in municipal bonds, ; many millions of dollars of munici¬

.it will be

strike

bond

this line of reasoning and
if
the Xofficer«
who

induce

reiv

as.an

moved'to

with

the municipaMtins to set uo.such defenses in

may

the

were

lated.m the issuance of the bonds,

years ago

exercised./ Yet.
presumed that the

X The .principle of. estoppel has .a

invalid., because / the

courts

;

some

II. M. Byllesby and Company

was somewhat surprising because
(Inwrimratul)
t^em, „rthoy rin this" country there has always, Maxfield II. Friedman

that the bonds

creditors tp. enforce nublic securiSo

This is hat
.

the

before

made statements of fact

under

conditions
baa not been complied with. The

instance,

nicipal

Munici-

bonds

ties.

For

been

long history in the common law.
Long before there were any mu¬

consti¬

i.,

bondholder. That Federal doctrine,

Estoppel by RecitaU;

election,

fact that the
.

bonds.
The
Supreme
United States ac¬

the

came

were

debt limit had been vio-

munioipalitv does not exceed

prescribed

have

had

purchaser for;.value. to d^mr the
of those recital.?.
This be¬

......
.
.
tained a judgment against the city
for the full amount of the bonds,

they would assert the doctrine of

trtith

these conditional grants of power
and
then,
when
the
creditors

.the

the rCPurts

doctrine.

estoppel

the
.

sustained

this estoppel by recital.

tax¬

indebtedness

the

Coprt, and, when
city attempted do set up as a

tutional
.

New -York

bring suit/in the United
District

defense

debt

would be protected
Federal
Court's
rulings

the

.„«=„.

zenship, and

that

not be

uoon

sue upon

the
of diversity of citi
ftn thp ground nf Hivprsit.v nf piti-

States

did not exceed

upon

able

> asserting it because of recitals in
^

arlpnnatplv

wptp

State of

from the answer
•

bondholders, however,

thev

residents of states other than the

the

quoted,, the municipality

;

represented,^howwer, were all

of ?the

inserted

power which

netition

bonds, the courts of Grent
Britain, and of the states in this
incur-debt, and
/country,-^ held that., if a person

the holding of

provided

in¬

Federal Court's Protection
The

intended

similar / to

complying
conditions, such as

certain

filing

the bondholders' committee which

Some

and that

behind

before

the

held

The legislatures in confer¬

injury suit could in
affect the rights of the
holders of municipal bonds, and,
in fact, it is not even easy for a

which

ing

Court

expressly conferred by
legislatures - of the various

be exercised onlv

I know that it

made

upon

ring such a power almost invari¬
ably provide that the power may

way

.decisions

the bonds existed.

ficts determined^ by* the - officers
charged with the d"tv of execut¬

states.

personal

any

by the leg is--

put on the market, and. therefore,

the doc¬

municipality has
to

statutes

it must have meant: to have these

that the general
in this country

law

right

lawver to understand it unless he

issue bonds.

very difficult for laymen
to comprehend how a decision in
a

herent

was

with
of

and

when

with

could

must

estoppel- by rcci falX* In
understand this doctrine

must point out

the

damages

nrineinle

must lie

.announced with Tespect

order to

case

to issue

that
soirm
determination of these facts would

X X

fhc most; imnort-nt

compliance

conditions

legislature

the

Court

/ X

municipal securities

on the market during the
'
;
X V

Law's Development
The

States, established and

municipalities.

must
:

Supreme

per¬

determine whether

executed

thd

have

been

—

that

these

power

law which

common

have

due

complied

the rules of law which the Federal

have boon

last 20 years.

tribunal

commercial

Instruments/

cepted

can

bonds had been issued in violation

that^all

bonds

the

the State Controller had demonstrated, / conclusively,- that- the

issuance

existed,

not

preserved the credit of the Ameri¬

that

some

recited

conditions s imposed

legisla¬
ture authorized the municipality
to issue bonds upon certain con¬
ditions. it did not designate any

bring

can

the

have

reasoning

clause

particularly in the field

ticularly

give consideration- to the thought
I that it may t»e necessary to resort
the

general

body of

the securities which

the United

\ to

was that
municipality had legislative
authority to issue the bonds and

if the

and

extent that Judge Dillon once
said that the Federal courts, par¬

municipal
beginning& tp.

Ak the'doctrine was" laid down

by the Federal courts, it

cordingly, when municipal bonds p
y
went into default, the creditors al¬
the amount of this bond, together
Federal Protection Swept Away
most invariably brought suit upon
with
all
other
indebtedness
of
You
will
see,
their bonds in the United States
therefore, how
said municipality does not exceed
District Court, and against the de¬ valuable a protection the doctrine
any
constitutionalv or
statutory
fenses set up by the municipality of estoppel by recital as debeloped
limitation."

that -t:e

fraternity;

accepted it only par-

firm

pay,

protective committee to bring suit
upon the bonds. We knew that if
we brought the suit in the
state
courts we would, lose the case be ¬
cause
an
investigation made by

states

have

debt;.,limit,

retained by the bondholders'

was

Some

legal

Constitution

The

profound cpnsequences.for the

t : thlrtkXJf* Is courts

can

States, in the case
Tyson: held that in

negotiable

stituiional

never

doctrine.

required to exist,
he performed pre- tected because they could

bond

protected the rights of the holders
municipal securities to - such

More recently we have had

grounds

courts

con-

Sivift

1 sidered the possibility of a default
v

the

of public securities.
The
Federal courts proceeded to build

low fate

even

par¬

holders

unicipal Bond." and it eo»»>d
a very

have

state

tially.

ilinf

the State of

creditors.

Federal

this

the

to pro¬

was

another, 1he plaintiff

had

seemed that all you had to do was
take a sheet of paoer and label

readily be sold at
V

1944

sys¬

creditors,
of

one

the

tnemselves bound by the decisions
of the state courts,' This decision

basis.; On April

-3.25 basis.; In

this

the

certified, recited

and

happened

Federal courts would not consider

may be explained by mar¬
ket conditions. When I spoke be¬

nicipals

One
up

non-resident

which

/X,./v
of

nation.

rights of

law, and

interest in

lapse

the

matters

fore the Municipal Forum in 1944,
the Bond Buyer Index of 20 mu¬

formed

reasons

years,

r26 it

the

give attention to this sub¬

...XX /

ject.

courts

recognized

that all acts, condi¬

and

cedent

action in a Federal court.
In
the year 1842, the
Supreme Court
of the United

the Municipal Securities Commit¬
tee

happen

know,

his

Investment

all

you

is' hereby,

and declared

for setting

have

Association

Bankers

great

some

tions and things

if the plaintiff is a resident of one
state and the defendant a resident

that

letters

'Tt
•

sity of citizenship between the
parties to the suit. In other words,

upon

which

suf¬

exercise jurisdiction is the diver-*

of:

but

sure

Accordingly,

their

comments

time,

out

effects

condense

can

ticularly

the ability of
municipal bonds to
obligations.
Not
attention was paid to the

i the holders

tect

i n

attempted to

tem of Federal courts

January of
1944, in which
David

doctrine when the City of Cohoes, N. Y.,
The State,, issued bonds in excess of the con-

throughout

this
m,

years.

the

be¬

made

fore
F

the

genius, of the; state courts, however, re- *
probably Judge,Dillon,; began to fused to go that. far. For instance,:
write in the bonds a new clause. some would
say that he was bound
I believe that Judge Dillon was to
satisfy himself that the election
the author of it because it is gen¬
required by the Statute had been
erally known as Dillon's estoppel properly held and that' the re¬
clause.," You? have seen such a quired majority of the citizens of
clause citC jusf ab9ut every bond the community had voted in favor
that you have ever handled, prob¬ of the bonds. Many other qualifi-

almost as soon as the
Constitution had been ratified, set
up
a
system of Federal courts

address be-

recognize

can

Congress,

this is where I

cause

believe

by
that

came

100

you to get some idea
of what it is all abo.ut.

dis-

saying

over

ficiently for

I
to

cussion

than

estoppel by recital.

only hit the high - ably/without giving much thought cations of the doctrine were laid
It reads substantially
as down by the state courts.
spots in the development of the' to it.
■
XX-XX
v■
XXX
law over; such a long period,, but • follows:

Obviously I

the

Railroad
would

phases of the law

period

Erie

Tompkins.

briefly, the development of

certain

United
of-

case

cuss,

the

decision

of \ the

Court

X'XX X: XXStates in

;

Estoppel by Recital

X- Then

swept away in Erie Railroad v. Tompkins
-about 13 years ago.
XX;;;VX/■X.\

was

"estoppel by recital"—allowing creditors to enforce their obli-

purchaser of

bonds

fused

of New« York is one of .them* The.

of the constitutional limit. At this
lature-iupom the. exercise,of that,;;point I may say ^defense of the
rities. The effect of the decisions
power had been complied with, an
bond attorneys that no bond atthat I have referred to upon the
innocent'purchaser of the5* bonds torneyhad approved the validity
market for : municipal bonds was for value was under no
obligation
the bonds. They were issued,
disastrous,.;.-: X" krtXX/X; XX/X"'. to go any further than to satisfy solely, upon thb .opinion of the
himself that the statutory power City Attorney.
The members of
Doctrine of

protection afforded by the promulgation of the doctrine of

prospective

had; : to make this
investigation before he could
safely buy the bonds,/it is'per¬
fectly obvious that he would not
be inclined to purchase the secu¬

decisions of the state courts; willing'
Federal courts; and development of the

of states to enter

ness

;

so,

if'

few

I *i"f. distinguished lawyer discusses impairment of contractual obliby subsequent

{•

would
he
be
tolcl

but

recourses available £ and other
for, in his review of the effect of recent U. S.

Xgation*

the

Vbpjand to point out remaining

state and municipal bonds.

trouble

unquestionably,
everything necessary to make
bonds valid had. been:-; done,

that

engendered by the recent few default in,
tyl It;- municipal securities prompts Mr. Wood to explain why municV !,
r?{»,f?..ipal bondholders no longer:receive Federal courts'?protection, X"X

upon

the

would,

• -■

The revived interest

Supreme Court decisions

officials, assuming he

take

Senior Partner, Wood, King & Dawson, New York City

matters to look

If he inquired of the munici¬

not.

On Security of Municipal Bonds

knowing whether such condi¬
had been complied with or

tions

distinction

and

between

morality,
We have always seemed to look
comolaisantly upon action taken
by the State or public agencies,
which we would regard as grossly
reprehensible if it were done by
individuals./-This line of cleavage
in ow* ideas of public and private
,

morality;

was
of -the

mu¬

rulings

way

courts- of marly

group

evidenced
state

courts;

the
The

of - the states re-

Russell Hoppe

Camp k Lo.

Daugherty, Butchart k Cole, Inc.

„

X
X

'
>

•

Pacific Coast Securities

L. J. Werschkul k Sons

Stephenson, Leydeckcr k Co.

Hawkins k Co.

Chace, Whiteside, West & Wmslow
Incorporated

Company*

Donald C. Sloan k Co..

Stewart k Balfour

•: *'

'Bailey k Cot

Waldo Hemphill k Co/.

Hooker k

Fay

Pasadena

(Corporation

George Patten Investment Co.

Richards, Merrill & Peterson, Inc.
April 30. 1957.'

Paine, Rice k Company

Murphey Favrc, Inc.

Stewart, Eubanks, Meyerson k Co.

X>.

•

■

•

York k Co.

The Commercial and Financial Chronicle

(2058)

Thursday, May 2, 1957

Benj. D. Bartlett Co.
Ohio

CINCINNATI,

—

By OWEN ELY

Benj.

eral

.Virginia Electric & Power Company

partnership Jean E. Bennett,

York, Chicago & St. Louis

Virginia Electric
The

New

Louis not

Chicago & St.

York,

only has the distinction

67.8%

clusive

which

roads

ficiaries

the

are

the

Pocahontas

three

the

major bene¬
in

boom

export

coal movement, but

based on rev¬
moved into
the forefront of all Class I. Again
trends,

enue

the

excluding
the

1956

has

roads,

Pocahontas

index

trend

revenue

<?f

■'

current

the

March

against

there

with

easing

small

rivalled

were

Southern's

for

the

indices

These

the

are

respective averages

1947-49

period lafcen #t

100.

that

fact

;

be inferred from

may

the

1956

gross

the

revenues

of the Nickel Plate showed a 7.6%

increase

while

the

1955 "

figure,

corresponding gain for
I

Class

all

the

over

roads

4.4%, the
gain for the Nickel Plate was only
partly due to the 6% freight rate
other

hand,

7, 1956.

gain

the

On the

was

very

largely due to the Nickel Plate's
healthy 6.3% increase in traffic
measured

gain

the

road's

ton-mileage over the 1955
figure.
The corresponding gain
in ton-mileage for all Class I was
only 4.2%.
results

Net

however.

not

were

While

the

good,

Nickel Plate

a
low cost road, and particu¬
larly by the standards of eastern
carriers, this road last year had
to digest a 10.6% increase in oper¬

ating

expenses,

not

too

million

The

result

drop

$2.2
pre-tax net
was

the

operating income, but which
reduced to

decline of

$300,000

only

was
some

net

reported

ing income

operat¬
result of the low¬

as a

The

final

scured

the

result

little

income,

decline

even

by the ability of

many

road

was

$400,000 in net
this was ob¬

over

but

show

small

gain in

per

been

net, this figure having
for
1956
as
against
previous year, ad¬
the latter figure for the
split of the road's stock

$3.98

$3.96

for

justing
2-for-l

the

that became effective last
The

small

net in

increase

that

May 25.
share

per

spite of the decline in total

net income

is ascribed to the fact

the

capital change involving
the replacement of the 6% pre¬
ferred stock with 4V2%
income

This

refunding of the pre¬
ferred by the debentures
brought
year.

the double benefit to the

common

stock of

and
tax

a saving in
prior charges
saving in Federal income

well. However, the increase

the

1956

interest

charges due

the inclusion of

interest

year

the full year's
the debentures for that

one

of the

reasons

for the

decline in the total net income for

Davies.

However, the cur-

rent

price of about 27%
20% below the high of
1956

for

adjusted

is some
34% of

2-for-l

the

gi^ps

Davies
j

Obviously, the principal
the

decline

the

gross

the

face

costs

had

net

high record
of course,
and

wages

with
to

reason

road's

was,

materials

have

the

new

revenues

increases

roads

the

which all

contend.

the

case
of the Nickel Plate, the
transportation ratio increased from

35.4%

gross

also

was

■

raie ?S"

tablished

last November indicates

liberal

extremely
7.3%

at the current market price,

and this dividend rate

to be

seems

amply well protected for two reaOne

sons.

road

the

record

share
on the average for five out of the
past six years and $3.03 per share

having earned almost $4

per

eye,n >" ^ generally poor these
year
of 1954.- The other is that
earnings
due

relatively

contain
so-called

the

from

earned

per

1956,

estimated for the current

with

the

but

cents

looking at

even

averaged $3.60

1955

last

year,

and

the

0.8%

(of

gross)

this

was

Festival
of

longer period,
per share for

name

main

the

J. A.

and the 2-for-l split in 1956 there
are

now

4.1

million

1956

$42

outstanding

amounted

revenues

share,

per

to only
low "lever-

very

urKini,

which consequently tends to

age

minimize

fluctuations

the

office

settlement

Plate

Nickel

the

628,722
owned

with

the

one

present

earnings which
the

press

stock.
an

The

factors

the

Stock .Exchange,

York

removal

ff.

4Q w

their

n street

Annual Outing

along

(The

are

Secretaries

Syndicats)

28,

the

Lunch

hold

will

Wall
Club

their

annual outing at the Nassau Coun-

Lackawanna has filed

Club, Glen Cove, Long Island,

ICC

w *orlc-

for

this

the

latter

Aubrey Black Opens

not

but

has

move

last

Own Investment Office

disclosed.

Kirby Building to act

July

97,278

Plate

holding

its

bonds.

its

distribu-

Black

was

formerly

Joins Carroll Staff

36.6%

Joins Bache Staff

added

amortization

arid the

not-adopted
preciation.

company

accelerated

de-

The company's capitalization at

cal-

the

over

1956.

required

°™s

*unded dedt
*„}
Preferred stock
—
61
^Common stock equity 159
_

■

—-

Total
future

—

$461

—_

100

.//.''//v;

earned

Federal

rcstricled

surplus

income

taxes

for

amounting

*12 mi,,Ion*
The

stock

common

selling

recently
42% earlier this

has

been

49,

from

A nossible

year.

factor in the recent strength of the
stock is the two-for-one split—the
stock

new

"when
current
stock

traded

around

25.
The
rate on the old

dividend

3.7%;

recently

was

issued"
$1.80

making

dividend

yield

the

payout

apnroxicompared with the.in.-r
dustry average of 73%.

mates 65%

N, Y. S. E. Governors

J expenses

To Meel in Richmond

last

The

revenues

year

com¬

high

Board of Governors of the

Association

Stock

Exchange

Firms will hold its spring meeting
at

the Hotel Jefferson, Richmond,

combined
In

station

small

capability of 1,142,300

addition

the

system

the'100,000

Roanoke

over

kw.

com¬

and

ago,

resiJa0e "r

now

hydro-

Rapids

year

■

hydro stations of 7.000 kilo¬

watts aggregate capability. Power
is also available from the Govern¬
ment's
Kerr
Dam
Development

Parineri"

Scott &Str in g-

fellow
resident
ernor

Richmond

be pur- ia
chased, when needed, from neigh-*ments.
boring utilities.
A

150,000
into

town

this
at

kw.

summer

Bremo

and

unit

York-

similar

1958.

Generat-

ing facilities under construction
or planned for
completion in 1959
existing capacity aoproximately 50%: A 93-mile, 220,000-volt line (twice the voltage of
any line now on the system) will
begin operating in June this year.
The

gas

small- in

division,

relation

relatively

the

ar„gne

generating

operation

the

Association in

and additional power
may

will

and
Gov¬

electric,

The

Jansen

Hunt

•

Association

change Firms

«w«ge rxniu.

Stock

Ex¬

national trade

a uauuudi u

association of member firms of the
!^ew Yor^ Stock Exchange. Meet¬
al/f f ^uin ^inanfia^ centeis
throughout

the

country several
to permit the

times

each

Board

of Governors the opportu-

year

nity of conferring (directly with

^Ff..L?^d~0l^uid.!L

York City

regarding problems fac¬
"
ing the investment business.
»-The

Board

will

honored

has grown very rapidly. Revenues
in 1956 from gas operations in the

^ay ®
a dinner-to be given
under the auspices of Richmond

Norfolk

in Henry, Seay & Black,

Mr.

a partner

own

stockholders.1

tor and dealer in Texas municipal

the Lackawanna did

year

distribute
Nickel

cents

will increase

DALLAS, Texas — Aubrey C.
holding and the results of
Jan. 29 hearing on this matter Black has opened offices in the
still

accelerated

has

produce one
only .82 pounds in 1956
compared with 1.8 in 1946. The

unit

the Board of the

Plate,-but

opposes

the

requested the ICC to order
the Lackawanna to divest itself of
the

June

acting to deNickel Plate

are

price

representation

this

Friday,

Street

are normalized

was

includes

•

the

downtrend

application with

Nickel

coal

kw.

York ottice to 4U wail btreet.

amortization

Va., on May 6
peak load in De¬
and 7, it was
cember, 1956, was 1,213,000 kw,-^-.
nearly three times as large as the
nounfced by
1946 peak of 458,000 kw. Most of
;.aJl£.ef "
the 1956 output was produced by
eight.steam generating plants with
-0''

Hogle & Co., members of

Delaware, Lackawanna & Western
may

for

The company's

Syndicate Announce

ultimate

year

pleted

question

Special

,,,

announce
N

charge

member firms of the Association.

South

Norfolk

and

the

Newport News-Hampton-Warwick

(Special to The Financial Chronicle)

areas

increased

19%

over

.1955.

With Ohio Co.

the

maintenance

end result

total

was

operating

increase

cost

ratio.

The

increase in the

expense

ratio from

•

(Special to The Financial Chronicle)

BOSTON,
Kelly

has

Mass. —Allen
joined

Bache & Co, 21

the

staff

'
•

M.
of

Congress Street..

DENVER, Colo.—Paul M. White
has

become

roll &

connected

with

Car¬

Co., Equitable Building. He
previously with L. A. Huey
Company.
was

Revenues from

factured

the sale of

gas were

only $2,644,000

"in 1946. By 1951 when the
over

manu¬

(Special to The Financial Chronicle)
v

COLUMBUS,

change¬

to natural gas had been com¬

pleted they had risen to $3,065,-

Maloney. is

Ohio—Donald

now

with

deben- /

income account

1956

3 fee:'1

pared with 47% in 1955 and
of 62% in 1948.

share basis.
The

gain

dropped to 45.6%

Hogle Co.

New

per-

were

^Includes

irregular

kwh.

In New Location

a little over
Accordingly,

shares.

bonds

conservative.

seem

generating efficiency. The amount

to the road's gross revenues. As a
result of the 5-for-l split in 1951

rights

The company's accounting meth-

:Mv;:

Over the past 10 years there has
been a substantial improvement in

of Scott, Horner &

without

tures

Williamsburg

the 12 months ended March
share earnings moved up to $2.88,

First

addition

stock

sell $20 million

record number

the

1951, aided by a 1954 rate increase,
years $2.78 showed
a
56%

Norfolk, Richmond and Roanoke,

road

with

year

Jamestown

Last

ratio

to sell about 1,000,000 shares

common

early in June and in the fall to

other

likely to

in earlier years,
they have increased steadily since

Colony Life
Building, has been changed to
Scott, Horner & Co/
r
Inc.,

While Share earnings Were SOme-

Changed to

through to pre-tax net and to the
large share capitalization relative

the

what

carries

that

than

seems

drawing

tourists
,

Lynchburg, the firm maintains
branches
in
Bluefield, Danville,

gross

Growth

area.

LYNCHBURG, Va.—As of May 1

Mason,

program,

revenues

faster

much

stimulus

endar

the firm

the

with

year

million

"^ias aflVgifaboS S*1956 ^ aPpr°*imately
residential
in- as KHI0WS-

continue, especially this

Scott, Horner & Co.

the past decade, is due to the combined benefits of the wide margin
of

currently being

for

share,
to 25

per

drop

This
$70

year

11% with

the

a
of

189*1 ^ani gain over the $1.78 of 1953. It
of the Mid rest looks as though 1957 would also
an4 Cincinnati Stock Exchange make an impressive record since
and associate members of the
iJ.110?1116 *or f
montb of
-tMarch showed a gain of
American Stock Exchange,
21%, and

Firm Name

stability of earnNickel Plate which,

the

revenues

revenues.

Co.

rate

average

creasing

who

members of the New

year,

relative

have

Benj. D.^ Bartlett &

share in 1958.

per

The

ings

expected

factor

tax-deferment

placed at about 32 cents

recent

run-off i

Little

year.

March 20,' 1957.

Stock Exchange smce

of the $3.98 per share

last

away
^

Virginia Electric has shown
than

senior

Bloch,

are also members

cents

£assed

former

the

Heibert

partner
*

o£

factor

only

wife

the

-j

Mrs; Bloch

Friediander.

amor-

accelerated

This factor amounted to

but 8.3%

little

tization.

bonds.

gage

stepped-up

growth,

generai partner, is now a limited
other limited partners
krg Jean K Bloch and Mrs.

Jane

con-

program was financed /
issue of $20 million mort-

due

joseph B. ReyLewis> formerly

John

•

the $45 million

year

items in the

electric and

„

better

pasrtner.

over-statement

tax-deferment

the

arising

nolds

and

trw

Other general partners in Benj.
Bartl|tt & Co. are Alfred J.

of Friediander

yield

93%

are

trirnl

•

Were

revenues

Exchanges.
Mr.
an
associate of
Co.

Bennett &

also

for

Stock

Midwest

1956

;

r.frai cniot r!
Plard acquisition adjustments
riwn'
^
(which will end in 1960) equivaV
oilntri! ^
"?
ifez lent to 11 cents a share, and a
as,
e «°nl-V
credit of 7 cents a share for interahnvi
i
°ational average.. est on construction. "Tax deferrals

and

Cincinnati

the

marked

Company.

no/

market break.

Oil

Revenues

*■

with

increase. The first oil refinery in
Virginia4ias beert built by ^meri-

Charles H. Snydjer

Bennett

Mr. Bennett was formerly Presiselling about 1V2 dent and Treasurer and Mr. Snyder
points below this year's high of was Vice-President of J.-E. Ben2934 after having recovered from nett & Co., Inc., which was estabthe
low of 26
in the February iished in 1933 and held member-

stock

only

1956.
*'

Reflecting this reversal, Nickel

Plate

effective for the full 1956

was

per

? ~

showing

can

drop in net
share as

of 1956.

debentures, accomplished early in
1955

cents

WmsA

against $1.03 for the first quarter rjharles H. Snyder, and Bruce R.

ensuing Federal tax accrual.

er
•

far

from twice the gain in its

away

revenues.

summed up

between

f5„UI£^.e!1A'^!1^1_caIand electr,onT
industries

was still shown over J.
results for the quarter

the

being tobacco, tex- about $42 million of new money
chenicals, food.prod-. wm be needed. The
company now

ics

was

increase of March

balanced

thvf area W1ih electric

gain

income

however (although

Last

shipbuilding.^ Various ,plans

?£fo'c

trend

the

paper,

What

ratio.

and

Zlst struction

is awell

PnL
is,

two

present year, and
also a small reduction

maintenance

as.,

000

$8,428,000.

Vir-

Virginia and North Carolina/ The

the

was

the

35.6%

thev first

for

38%

months

1956)

Pacific.

com-

farming and/industry, the princi-

ratio

tion

ern

1,357

areas

fairly sharp cut in the transports-,

ern's 135 last year, and was closely

based

rural

area

ceeded

Atlantic Coast Line and the West¬

serves a popu-

2,600,000
and

fi.nia. and

slight

improvement in this trend with a

gross revenues,

only by the Kansas City
131, the
130 of the
Seaboard, and 129 for both the

showed

year

lation

munities

quarter of

Results for the first

132 for the Nickel Plate w^s ex¬

only by the Great North¬

to 69.7%

1955

gross

last year.

being the premier growth road
among
the eastern carriers ex¬

Utility Securities

•

Effective

D. Bartlett & Co.,
313 Vine Street,- will admit to gen¬
May

By GERALD D. McKEEVER

New

Public

Admits Partners

Railroad Securities

the

Ohio

Company, 51 North High Street.

Volume

185

Number 5634

The Commercial and Financial Chronicle

v-.

(2059)
.

/
there

Will There Be Additional

he
is

By PAUL EINZIG 'h

•

■

•

Well known British economic interpreter attributes the

Ahead

April 24

One of

tional passive
the

for this radical

reasons

of the News

departure from tradi¬

intervention, according to Dr. Einzig, is to create

To most of the

newspaper read-

i tun t i

ings

which

o nt

tactics

ably - steady,
"the* sudden
rise
•

came

surprise.

was

fairly

active,

the

that

sized
Einzig

to*influence

Suez

was

domestic

the

troubles

•

and

other tu

yet a

probable

that

authorities

ciently
able

that

^*5°i

oi^lf?nC

seems

rather

The private

wrap

observers

as a

^He
;

has

•

been

"foremost
cent

Carlisle Bargeron

even

foolish

and

business

Co*

citizen"

class.

His

action in setting up
known
citizens

lasting

the
this

see

story,'

coming

Teamsters'

Earlier" it

Beck

had

Union

out.

this

was

seemed

that

would

than

never

done because the ouster of

to 1 en- with

up:

AF of L-CIO forces him

^he

and

many

union

million members

derive

wouid p,ut a severe crimp in not
Admittedly, at onl
th
b t the finances
the end of the week sterling
re-Jof the AF
L-CIO
But those
tained some of the ground gained wbo came
t0 this conclusion reckon Wednesday.'
the gain was
without the

it.

in-v

recklessness

the

plan is apparently to
heat on Beck and the

that
F.

action

some

the

time

Reuther, if they

has

they

ever

do,

York

Pa.—Blair &
of the

Stock

Newliii

Davis has

joined
firm

the
Vice-

as a

President

and

director, with
headquarters

re¬

panel

until

taken.

has announced

the

B 1

i r's

Philadelphia

"liberal" persuasion to watch over

the

Exchange and
other principal security
exchanges,

intel¬
into

oft well

open

Incorporated, members

New

groups.

developed

that

Of Blair & Go. Inc. i

speaker for gradu¬

ceremonies

lectual and

The heat will be kept

arti--something

not suffi-

was

-To

balance.'until-the

lost

authorities*

from

•

Sntr *!t thl
f^3S by
torvention

Twf

°^±lclai T

:
the
Exchange
Equalization Account
This inter-

authorities ought to. ha^TP**

ve ed at a moment wheh the
natural^rend itself was decidedly

probably correct.-It f rm. (By accentuating a rising
r
J 7
^S t8
"5
the upward move-"trend
they, might
have
scared

was

r: T as
seemed

6
Iha Ic

rindnn

pretation

would

asked

office

Penn Center

Plaza.

Formerly

as¬

with

sociated

Kidder, PeaNewlin F.
Davis
body & Co. in
Philadelphia
since 1934, Mr. Davis attended Le¬

unfolding picture and they are
trying to get Reuther before the

committee. They, don't expect to
high University,
and graduated
any financial misdeeds on him.
from The Wharton School of Fi¬
has never» or so it is believed, nance

get

and

The

Commerce,

Uni¬

taken any money out of the union
versity of Pennsylvania, in 1931.
coffers for a palatial home or for
He is

director of Penn Plastics

stable of racehorses.
He has
Manufacturing Co., Glenside, Pa.
taken it out ta support political
a

candidates of his choosing.

It is

But what those members of the

committee

who want

CrailOClf SfiClintieS

difficult to see the difference on
the hapless member of the union.

Opens L. A. Branch

question

fe iS -no0t
and ther position Walter Reuther) aiso his resourceabouL ^ i mainedfundarnentajly -fdinesst What is now believed to
+a
CanHe
.V.;be in the cards is that with the

vlg LTf31

have

in-

the

followed -the

strong

the

benefit

of the

about

tendency, it

lial rise of the rate

major

could:

the

dollars

tne

bringing

demand

economic

though

pick

than gained dollars.

this time, but only at the

avoided
cost of

nation of

continued,

situation, it Iooks
industrial

trouble in Jordan,

new

the

for

the

inspire optimism.- The

deadlocK

there
As

spent

which

day.; Nor was tne
political
situation

international
such

Account

transac-

;cial

inactive

ation

some-

has

"PHILADELPHIA,

Although it is just possible that

commer-

tions

liable

are

He,

one;

N. F. Davis V.-P.

employer sign

is a tremendous the affairs of his union is an examount of jockeying for power in ample of his shrewdness.
I
be
attributed the aemand for sterling that de- the
organized labor movement'
There are some members of the
t 6
s o m e-veloped as a result of its rise enwith'Walter Reuther striving for Senate Investigating Committee
isolated
fair* aoifcct t h e Exchange Equalization the top.
•
who
think they understand the
rate-could not

Paul

the

and

that

it will be anti-climax.

•::

lih demand

lowed by a partial relapse during the country as:
the next two days.
"•/whole; There

~upward movernent

in "it

the

^ot college professors and publicists
been'
glorifying
and
building him up for years. He is

porters of the rigid pound. For the thing far
recovery of sterling on April] 24
d e ep e r and
proved to be short-lived.# Its ex-"likely to have
tent was moderate, and it was fol- an impact oil"

The

market

tion in their arguments with sup-

make

come

-that, phas

sufficiently "sue- *m o r e acut-e
cessful to provide ] Supporters of 'Washington
the floating pound with amrhuni-^ observers see

strike.

laugh at the possibility of his at¬
taining his goal.1 He has a clique

not

was

•

ident

reason-

keep

r -Reuther does have political amI ibitiohs. He would like to be Pres¬

ought'

was

up.

ing pound is their nostalgia forbe cleaned
the prewar days when the mobil<- up. So it. has '
sterling.
Although it' occurred 4ty of the rates made* such tactics a n d s o/i t
after a
period of weeks during possible and profitable. The pres- should..
v.
which sterling
ent experiment wijth the prewar 'k B ji t ' t h e
April

recovery

a'snarp

nationwide

scandalous
i.

was

requests

complaints.
that.
At least

Teamsters

Indeed, they
ers and TV-Radio listeners of the pulled
relatively few /strikes of
country,' the Senate Committee any kind. They just* threw acid
investigation of Dave Beck has into milk cans and blew up build¬
reveaiea

right atmosphere for the Treasury conversion expected to,
take place in the next month or so.:;/?

LONDON,» Eng.—On

-.But

been
,

there

called.

By CARLISLE BARGERON

sharp and short sterling-recovery to active intervention by the
British Exchange Equalization Account, and offers the explana¬
tion that' this may well be a forerunner of further similar
moves.

wrong

hearing

■

been

called,

member of the committee in

Tactics?
,

had

LOS ANGELES, Calif. — Crahim hope to bring out is that he is
an
architect' of -violence. The dock Securities Limited of Toron¬
Teamsters are about as rough as to has opened a branch office at
ouster of the TeamsterS,Reuther they come in organization or strike 215 West'Seventh Street under the
will g0 out to organize them. Once tactics but an investigation will managemeht of H. F. Hanna. >
be bas done tbis there is little show that Reuther's union has __
„
_
_

doubt that he would shove

Meany

out

the

George

L.CIS0

been just as rough. The story of
its organization strike against the

prPciripnrv nnH

himself
Knphlpr
Presidency and tnkp nv'pr himself. Koehler
take^over
■
■
J

f!nmnanv

in
Company in
lnilf

Wltl

Lfifff FllflttS
iflI,B Rb UBm

Wisrnnsin

Wisconsin,

sterling began to appreci,
ate, private operators took a hand

foreign importers and other ster-,; ^The Teamsters now have a tre0
of blood and marder'
Iihg debtors'into covering their -mendous hold over the nations
,
p.
sut.peqefui in jts ctrike
requirements, a n d-sterling
the union has been trying to boyances
of
foreignbanks: might "on^or
iransportauon ana ine
„mn9nv»,
nrndiirt*

and caused

have

ment

initiated

was

hagPbe|n

selling

of
dollars by the British authorities.

Once

rise.

the

But it is safe to

movement

assume

official operations.

Traditional

Upsets

Passive

been

movement

'30s

such

it has been
In

the

occurrence.

official

intervention

reaches

rate

approaches $2.82,
sterling
is
sufficiently firm to make it possible to
pick
up
some
dollars
without
or

instead

active—that is to say,

operating against an
the ! authorities
generate a new trend,
trend,

Such tactics

were

quently and

"bear

dealers

resorted to fre-

a large scale durThey usually aimed
When
the

ing the '30s.

squeezes."

were

short of sterling the

authorities intervened
accentuate

in order to

the

shortage, thereby
scaring the bears into covering.
Such operations were often very
profitable, and the profits made
them

have

largely contributed

toward the accumulation of

stantial

the

World

why
perts
of

gold

and

outbreak
War.

some

One

the

foreign

advocate

the

dollar

rigid

the

sub-

reserve

exchange

ex-

abandonment

parities

sterling

in favor of the system of a float-

?nn2frv

bpf0re

Sen-

political power. He

never

hvered any appreciable number mittee counsel, was recently asked
of votes.
in a TV interview, why the comHis

teamsters

never

pulled

Joins

Dempsey-Tegeler

(Special to The Financial Chronicle)

Young Joe Kennedy, the com-

de-

PASADENA, Calif.
Shreves

now

This

announcement

is neither

mittee didn't call Reuther. He said Tegeler & Co., 465 East'Green St.

offer

sell

nor a

solicitation of

offer

buy

The offer is made only by the Prospectus.

any

of these Shares.

NEW ISSUE

200,000 Shares

cre-

Midwestern Instruments, Inc.
Common Stock
(Par Value #1 per

Share)

for the Treasury to sacrifice some
dollars in an effort to cause a
■

temporary rise in sterling, for the
sake -of being able to issue its
loan

favorable terms.

Price

per

this interpretation is correct, then
it seems probable that there will

be more intervention in the foreign exchange market' between
now and the issue of the conversion

loan.

in sterling
that

The

fact

that

the

latter

and in

was

retained

much

C. E.

their gains after sterling receded
some

of its artificial improvement,

is likely to

may

in States in which such dealer is

rise

the

be obtained from the undersigned or other dealer only
qualified to act as a dealer in securities
which the Prospectus may legally be distributed.

Copies of the Prospectus

accompanied by a
government
loans,
and

encourage

the author-

ities to repeat the experiment.

May 1, 1957

A. Lloyd
Dempsey-

—

with

have been worth while

may

Second-rise
reasons

than
+?ec& IH" ate Investieatine Committee will
self, played ball with the Repub- 5
ar0u^d ReutheFs
beans, gave them money, but this aissipate tne naio arouna Keutnei s
was more for social Prestige than nea«-

ate an atmosphere in which a reduction is widely anticipated. To
that end firmness of sterling
would be helpful, for the Bank
rate is not likely to be reduced
when sterling is weak.

existing
tried

at any rate to

once more, or

causing sterling to depreciate. On
the present occasion official interwas

mosphere for a Treasury conversion operation which is expected
to take place within the next
month or so. In order to be able
to issue the new loan on reasonably favorable terms it would be
necessary to lower the Bank rate

whenever

vention

Assist Treasury Conversion

the
rate
reaches
or
approaches
$2.78, and buys dollars when the

limited

Fortunately, their leadbeen more acquisitive

One of the explanations of the

England, acting on behalf
Treasury, sells dollars when

the

was

exchange market is' intervention is that the authorities
passive nowadays.
The are anxious to create the right at-

purely

developing.
risk

foreign

Bank of

overwhelming majority of

instances
the

unusual

very

services.

on-Jj8-"^?

thisj

by the official policy of checking
any
upward movement when it
reaches $2.82.

frequent, during the postwar period
was

was

their

case

-any

Although during the

the

was done
by April 24 was moderate. Most Gf
-those short of sterling preferred
to wait and see how the upward

Intervention

official intervention

replenished.? But

extent to which

that

originated

was

'-"^TSe

„

accentuation of the

Unterberg, Towbin Co.

The Commercial andjinanoial Chronicle

(2060)

THE MARKET

quilizing drug business with a
new
produc t; Earnings ^of
Schering are being projected
to
around
$7 this year,
fair

points of matching that figure nylon.
so

Cooper-Bessemer, maker of
and engines,
capped its recent strength by
reacting somewhat sharply on
air compressors

Universal. Cyclops

occasion.

Steel, which
taken

to have

seems

from

ing a traders' delight
Lukens Steel, was also

Westinghouse

•'

the

also
I

issue

the result that an

ument here

Lukens

nished

which

Steel,

much fireworks

long while, had
down
although still
chalk up multi-point

issue in

calmed
able to
moves

Ex¬

The

occasion.

change had taken the unprec¬
edented step of banning

"stop orders" in the issue
which tend to
vances

peared

and

sible for
on

declines, but it

ap¬

was

strength,

boost their

able
to its

were

average

standing in a quarter
century, but rails continued
as the real brake on
specula¬
enthusiasm.

There

growing body of ooinion that
holds the industrials won't go
too far in any

rush until the

rails get

in step. But the firstquarter reports of the carriers
showed

profit-pinch

isn't any spur to
tion

that

spirited

ac¬

by them. Even the stair

warts

Santa

Fe,

Rook

Island and Louisville & Nash¬
ville

posted moderate declines

for the first

ones

the

when

covered

was

around

by last year's earn¬

ings.

despite ~ its

fat

first-

not

are

with

15th

Dec.

going

make

any

regained

of its former

some

offset, there are those who hold to the belief that busi¬
likely to do more than hold its own in the next few

not

months, with

decline to be expected as the year gets older.

The

profit margin appears to be under pressure in many instances and
there are predictions being made that this will be more common
as
the volume of business levels off further.
This might curtail
capital spending.

some

those

has

relies

that

spite of the tight money conditions, selected new issues of state
and municipal bonds have been very well received. In these cases,
however, yields have been attractive enough so that buyers have
not been hesitant about taking positions in these offerings.
Government Market Continues Under Pressure

dividends 'larded -with

payments regularly.

and until there is an announcement as to the
which will be offered in exchange for these bonds,
there will be no lifting of the caution and uncertainty that is
shrouding this phase of the money market. It seems to be the
opinion of not a few money market followers that a long-term

Government market,

kind of security

occasional
Studebaker-

o f
has pretty

much

than

double

the

1955

guesses

verted

Mercedes-Benz

very
of

far

—

Drug shares have had their
moments in market popular¬
ity but there are some around

tion

moves

recent

that

now

tis but it also

j*.

those

Government

issue

cover

of the so-called well informed spokesmen are concerned.

Savings Banks, Up Rates in Drive for Savings

;

higher rate of 3Yt% for Government, savings bonds may
a movement by savings banks to protect their

position in this field, so that they will be better able to meet this
new competition.
Thus far, several important mutual savings in¬
stitutions in the New York area (Brooklyn, to be specific), have
announced that extra dividends of 14% would be paid on savings
quarter ending June 30th, in addition to their regular 3%

for the

rate.

the

competition

for

opinion

the'savers'

some

Public

years

main

money

will

money

passing of time.

specialists that
intensified with the

market
be

pension funds, according to advices, continue to be the

buyers

long-term

Government

bonds,

with

somewhat

larger commitments being reported in the recent weakness.

None¬

theless, this buying has not been heavy and it has been done in
what is being called a cautious manner.

range

is in the tran-

as some

marketable

long-term

have set in motion

generally which pretty well
ignores some wide diversifica-»

might be con¬

to the amount of savings bonds which

into

wide range. However, it looks as though exchanges in excess
half-a-billion dollars would not be considered unfavorable as

The

automation line.
❖

offered to the holders of the F and G

Savings bonds and this will be done, at least, in time to appeal to
the June maturities of these savings bonds. It appears as though

products in this country, the
$3.17 against $1.54.
cars
are
assigned to StudeFor the first quarter sales
baker but it will be Curtiss'
rose
by almost half over the
Utica-Bend division that will
year before and earnings
do the work of making its
jumped more than 21/£ times.
diesel engines. The division
It
leads
to
projections of
currently is a diesel supplier
around $4 earnings for the
for the U. S. Navy.
,<•
full year which leaves the is¬
sue
selling at less than eightDiversifying Smelter
times-earnings which is a sub¬
American Smelting's fate
normal ratio for a company in
has been pretty well tied up
the materials-handling and
with' that of copper shares

profit

bond will

Government

sequently, has had a yield ap¬
proaching 7%. In the deal to
handle the

; '

Savings -bonds continue to hang heavy over the

The F and G

the

Similarly,

lessening in the demand for long-term corporate bonds,
issues. In

some

modest

cash

to which way it is going to turn, there

there have been favorable new offerings of tax-exempt

yet

changes in the money policy of the powers
that be. It seems as though the so-called "dead center" position of
economic conditions is going to hold monetary policy in the same
vein in which it has been for some months. Even though there has

extend its
1957 range to as much as 10
points. The company is one of

stock

question but what there is not very much agree¬
Accordingly, until there

is not likely to be any

sharp increase in
skipped by its affiliate,
Manning, Maxwell
Curtiss-Wright, which, con¬
which is soon to bow

Big Board trading posted
figure last year that was

trust

to the future course of business.

definite indications

are

stock is tucked

the

Packard

in to
a

ment

some 38% held by a
and' the officers,
the

popularity

Newcomer
a

Monetary Policy to Remain Unchanged
There is

tame

sector,

Psychology Gaining Momentum

inflation factor appears to have

ness

from produc¬
*
if
*
tion of asbestos to some of
fhat are still selling at con- the newer elements such as
The big earnings items —
servative
times-earnings selenium, valuable in elec¬
General Motors, Chrysler,
ratios^ notably Vick Chemical tronic fields, and aluminum.
Bethlehem Steel and U. S.
at about
nine-times-earnings It has all reduced the smelt¬
Steel—were all on the record
and Schering which has an
ing operation to around half
and
did
little
marketwise
even smaller ratio and a
yield of the company's earnings
either to or for the shares. It
of 3%.
Some of the more where it was once its only
left it only to the really spec¬
favored
issues
in the
drug source of profit.
tacular profits increases for
group
have been ruling
| The views expressed in this
quick market action.
. around 15 times earnings. article do not necessarily at any
if
£
if
Schering's large sales items time coincide with those of the
Chrysler--w a s remarkably are those for treating arthri¬ "Chronicled *they are presented:
quarter.

been

away,

;

Interesting Exchange
For

much of

stock

over

& Moore

best

tive

that
twice

earnings,

Utilities, largely because of
to

ternational"

respon¬

selective

going was good. Ohio Oil was
one of the laggards,
offering
around 4% on the dividend

easing the pressure

the stock.

concentrating
-the so-called "in¬

selective,

mostly

likely that short

covering

accelerate ad¬

near-term

3%% being the leading guesses at this time, r

favor

was

any

The impending refunding operation will
the

psychological importance because the feeling seems to be still
strong that the economic picture will continue to be on the vigorous
side.
Based on this type of judgment, no important change is
looked for in monetary policy.

strength if the low esti¬ shipbuilding section have
mate
is exceeded which
is pretty much neglected Sun
most likely by next year if Oil which owns the Sun Ship¬
not in the current one.
building outfit that currently
if
if
if
is staging its largest peace¬
As in other sections of the time expansion in a third of a
fur¬
list, the strength in the oils century. Despite the fact that

j Lukens Cools Off

in-r

the trend of interest rates and credit conditions are concerned.

go¬

chore.

or a one-year

Inflation

The

given rages over j ust what the final
by earnings. The company's
to wandering over a range of figure for the year will be,
some
estimates running as estimate is that earnings this
a handful of points in a single
will exceed $3 with
low as $3.50. At that level, year
session; L. S. Starrett, which
further
improvement after¬
the issue is selling at an ade¬
held so far this year in about
ward as capital expenditures
quate times-earnings basis al¬
a 10-point range, was able to
taper off after this year.
tack on as much in a couple ready. However, the stock is
well deflated and the odds
The occasional plays in the
of sessions which is fast
ing for an issue that, until last
year, usually counted a
10point move as its entire year's

sizable

very

is, believed that the pbwers
immediate changes in this
policy. It is the opinion of many money market specialists that the
course of the business pattern will ;be the determining force as far

yield of nearly 5!^ % qn a
dividend that is well covered

has

The money market is still operating under thd influence of the,

that

investment

1956. The

market

restrictive monetary program .and it

quality issue such as National
Biscuit has been available at

seems

a r

l/z°fo.

with

concerned

with

almost guaranteed
to do better than in strike-hit
that

uncertain affair and it is

believed that this will continue to be the case for

quite some time to come.

play for some ;t|me

Government

short-term

The

terest and it is

generally,
food stocks haven't had

much

causes

certainty that this will be the case. The competition from higher
yielding corporate and tax-exempt bonds is not to be removed as
a factor in the money market or the Government market as long'!
as restrictive credit conditions prevail.
f
^
/

Ahead for

still

out of this cautious and defensive vein until
for this condition have been resolved. The re¬

days. The offer to the holders of the F and G Sayings bonds should ■
be the next important piece of Treasury business, but there is no

Like the textiles

I Westinghouse

the mantle of be¬

over

far this year.
Good Things

of the

move

funding of the May 15th l5/ss will be first one to be taken care of
and the terms of this financing should be known in the next few

;

'•>.

.,V

likely to

some

Generous Yielders

week

this

show of general

Governments

The Government market is
not

A superior yield is the
Chrysler, the lack of market
follow-through indicates nearly 6% offered by Ameri¬
can Viscose which at its low
strength that could forge ] skepticism over the ability of
was off some two dozen points
the company to keep its sales
through the congestion in a
from its peak. Although there
rush. The fast-stepping issues high for the rest of the year.
hasn't been much romance
continued to be some of the ,Jn any event, the issue that
marketwise in rayon recently,
specialty steels, the shipbuild¬ sold above par* on one of its
Viscose is also an important
ing issues at times and se¬ rebound years recently wasn't
factor in cellophane and
able to come within a score of
lected oils.
without any

Reporter

•

By JOHN T. CHIPPENDALE, JR.

■That

at the 495-500

resistance

area

'i,;< *

Our

Thursd^v, May 2,1057

n-A -is?

■

i'-i

against $6.03 last year, with
agreement among the
analysts.

STREETE

quarter profit. For a company
has rebounded like

Industrial stocks continued
to nibble away

•' W*

AND YOU

...

By WALLACE

4r<*

v arv

of the author only.]

Alan Rice Joins

G. G. Seward Partner

John Small & Go.

In Yarnali, Riddle Go.

John Small &

Street,

New

writers

and

Co., Inc., 25 Broad
York City, under¬

securities,

dealers

have

municipal

announced
now

associated

Rice

the municipal bond

phia-Baltimore

department. ,
Mr. Rice, a graduate of the Uni¬
versity of Minnesota, was a mem¬
ber of the
1956 U. S. Olympic
hr, a?' i

■*

a..;-

the

New

May 9.

with

;

;
v

the

York

•'

Car¬

admitted

Co., 1528 Walnut Street, members

Bear, Stearns & Co. since 1950 in

wrestling team.

in Yarnali, Biddle &

partnership

been with

Alan

will

Seward

roll

that

with the firm.. He has

Pa.—C.

PHILADELPHIA.

the

and

Stock

Philadel¬

Exchanges,

Mr. Seward has been

firm

for

some

time

Municipal Bond Department.

Number 5634

185

Volume

The Commercial and Financial Chronicle

(2061)

lege student
in

♦

The

CONSOLIDATIONS

City

NEW

BRANCHES

NEW

OFFICERS, ETC.

Bankers

and

$103,000

man

tne

average

xjugh scnool student.

News About Banks
REVISED

earns

iitetime

New

Avenue,
z8rd

has

the

opened

1120

78tn

near

nranch

tne

Savings

York

branch

new

CAPITALIZATIONS

for

Lexington

Street.

Second

Avenue

and

Street will be closed.

Roger

Keete has been
Vice-President of

Manhattan

Chase

Bank,

rvssociaiea

ap¬

ivjl.
a

York, it was announced over the

devoted

week-end, by

both in

this

Champion,

George

Irving

the

wiui

A proposed

since

lege

1932, the greater part of his service with the company has been

the
New

its

country and abroad,

•

April

Mr. Petersen heads the Branch
Joining the bank in
Mr. Keefe was assigned to Office Division, supervising activthe national territorial organiza¬ ity * in i Irving's
branches.
He
tion in 1947 and was appointed to joined the Irving staff in 1928. For
the official staff as an Assistant many years Mr. Petersen has been
Treasurer in 1950.
He was pro¬ closely associated with the branch
President.

dent

since

and

1953

the Far West.

-V

deposits of $29,711,000,
Dec. 31 statements.

based

was

time

one

cash

12-floor>f^ par value

the

billion

Brahm, Executive Vice-Pres¬
ident of the statewide financial
institution, announced on April

and

jrnnaaeipnia

dollars

The four

James M.

24.

billion

and

resources

over

ment
are:

Two

were outstanding

The

poration,

Large, Chairman of the

First

Boston

Chicago,

111.,

Cor¬

succeeds

David

Larson, who will leave May
join Transamerica Corpora¬
tion, San Francisco.
1

Mr. Larson has been with First

mittee; Benjamin F. Sawin, Pres-r

National since January 1955.
'

and

Warren

Executive
Two

Woodring,

Senior

Vice

elected by the Board of Di¬
rectors, William G. Foulke and
Joseph B. Roberts.
^
rectors

the

Board

Provident

;

common

capital stock from $2,750,000. to $2,887,500 by a stock
dividend
effective
• March
25.

Di¬

The UmtedL States National Bank
of San Diego, Calif, increased its

Presidents

Vice-President.

were

are:

"Arnold, formerly Assistant
Manager of the municipal depart-!

Chairman of the Executive Com¬
ident

...

Mr.

in trusts.

senior executives

Members

held.

each

J. H.

(288,750 shares, par value $10.)

Tradesmens

David C.

Bevan, Joel Claster,
Herbert
Fleishhacker, retired
Philip H. Cooney, Albert S. Cor¬
son, John Curtin, Jr., Edwin K. banker, died oil April 2 at the age
of 84.
Daly, Ralph Earle, W. 'R. Gerst-

Mr. Fleishhacker became Man¬

thousand College Point shares of necker,

major phase in

for

Company.

approximately half

dollars

Under terms of the agreement,
• College
Point National s shareof Trust Company stock and $z00

would

holders would receive three shares

and

Office, v

been with the district group man¬

aging the Bank's relationships in

bank

new

charge of the bank's Empire State

has

1955

The

;

resources of $32,783,000 and

offices

.Vice-Presi¬

Assistant

29.

have

1945,

moted

Point National Bank.-ColPoint, New York, into the

lege
Trust Company of North America, New York, was announced on

business

foreign

Trust

Board; William R. K. Mitchell,
Vice-Chairman of the Board ana

of the Col-

merger

sixth, largest in Pennsylvania,

with

Its

pointed

and

Tne new bank becomes the lourin

largest banK

Bank

mens

Gordon ,• B.
Hattersley,
Birkett Howarth, James M.
Large,

ager

the

London,.

American Bank

M. Albert

Paris

and

San Francisco

Linton, Wm. R. K. Mit-/'
in 1907 and was named President
chell, DeLong H. Mpnahan, George
dents were Irvin X,. Dyer in the fected ' by The New
of
the institution, u renamed the
S. Munson, Thomas L. PrenderNew York City district and Wil- Company, New York, at its main
Anglo California National Bank,
gast, Benjamin F. Sawin, Claude
■lian H. Siddons, Jr; in branch ad¬ office,
100>; Broadway, has been
in 1911;
He held the post until
C. Smith, Herbert P.
Stellwagen, 1938.
ministration.
Arthur H.
Wages, reached with the completion of
kv...... ; ;
J.
Tyson Stokes, R. Livingston
the first three floors according to
•
*
*
Charles W. Deveney, Joseph H.
Sullivan, Charles I. Thompson, H.
Hirtz, Edward R. Mooney, Charles, the announcement from Mr. H. S. Par va*ue stock of the Trust ComA branch of the National Bank
Chandlee Turner, Jr., George D.
P. O'Beirne and Harold V. Radut Aldrich. President of the banking
pany werg outstanding. The name
of India Limited, London,
of
the
Eng.,
" • "
merged bank would be Widener, Howard A. Wolf.
were
appointed Assistant Treas¬ corporation.
*
..'■?
' ■[ ''?■
was opened at River
tie
%
r
changed to the Bank of North
;t
;•
'
Road, Nai¬
urers.
Christopher Gerould was
America.
Dauphin Deposit Trust Com¬ robi, Kenya on
appointed information officer in
April 15.
This
John
S.
Bliven and
Peter
J.
The plan is subject to
approval pany, Harrisburg, Pa., and Carlisle new branch will be known as
the public relations department.
McBride, both formerly Assistant
Trust
by
the stockholders,, the
Company, ' Carlisle,
State
Pa.,
I
The Chase Manhattan Bank also
'

' Assistant

Named

Vice

Presi¬

modernization

Mec: M. 'Capital funds _were car-,
^5*:a book value of $486,000. ;
,e Plan also provides for a 6%
®b>ck dividend payable to shareholders of the merged bank. On
hist Dec. 31, 105,000 shares of $5.

project

being efYork Trust

•

••

■

Treasurers,

the

announced

appointment

of
Manuel I. Prado to be the Bank's

representative

will have his office in Caracas.
1944

Prado

Mr.

joined

;

the

official staff of the Banco Popular
in

Lima, rising to Assistant Gen¬

eral

Manager during the next

1956 he became

In April,

years.

with The

associated

Chase Bank,

Manhattan's

Chase

af¬

overseas

Assist-

Francis

and

C. Papen was elected an Assistant

He Treasurer

Venezuela.

named

were

Vice-Presidents

ant

Bankers Trust

on April 23. it
by S. Sloan Colt,

announced

Chairman nf the
Chairman of the

Rnard
Board.

•

Miy Bliven,

bank
the

Middle

Thc
r<,

Far

and

1946.

the

West

in Jan¬

company

After

serving

the Corporate Trust and Credit
V-- V;'.' Divisions of the bank, Mr. Bliven

Beach,

April

National

First

City

Bank

of New York announced on

May 1

The

the

of T.

appointments

his present work

began

•.

Conway

elected

was

Treasurer in

1952.
Assistant

1953.

v
.

Mr.

}H;

McBride, with the Banking

Operations

Division of the

began

career

his

with

bank,

Bankers

West

with

Territories.

his

began
after :

present

having
the

Mr.

charge of

Broadway,,
Manhattan,
succeeding
Thomas
Chisholm,, Vice-President,
who
retires May 1.
Mr. Jensep, is in
the European district of the over¬
division at head office. Both

formerly!

Assistant '• VicePresidents.'
"V
were

ffi

■

appointment of Chester T.

Needham

Assistant

Vice-

President of Manufacturers Trust

Company,
nounced

Chairman
Mr.

New

Horace

by
of

the

Needham

York

an¬

Flanigan,

Board.

joined

Manufac¬

turers Trust
was

Company in 1947. He
appointed an Assistant Man¬

ager

and credit committee chair¬

man

of the Bank's Personal Loan

pointed

Assistant Secretary in

1954.
At

present Mr. Needham is

signed

the

bank's

-V

Irving
York,

Trust

Company,

y,l-y

*",

announces

the promotion of

Arthur G. Boardman, Jr. and Wil¬
liam E. Petersen from Vice-Presi¬
to

Jamestown,
with

Senior

Vice-President.

Mr. Boardman is in

International

charge of the
Banking
Division.

announced

Harvey Kyle
President

youngsters.

American

tion, said Mr. Nodyne, the cost of
going to college has about doubled
since

then

1940,

and

from

ran

have

expenses

which

$750 to $1,000

average

feels

Jumped

method

goal.

Safe

ttSt College

with

National

common

Bank

Y.,

Dunkirk, Dunkirk, N. Y.,

consolidated

stock

effective

$200,000,
of

close of business April 12.
the charter

was

effected

and title of

the

The

under

Chautau-

National Bank of Jamestown.
the

effective

It is

single-purpose

date

capital

stock

.»"any

has

IWl

par

value $10.)

National

:»

Valley National Bank,

$2,200,000 by the sale of

par

into

Warthen

value $20.)

With C. J, Devine

The

Hazen
named

Street, New

City,^underwriters and
curities dealers, it has been

National

state

bank

Geo.

t'f

nounced by the firm.

Howard G. Graham

Warthen
.

■>

Howard

Graham

passed

away

suddenly April 23 at the

of 46. Mr. Graham

was an

department of the First National

of DePontet &

Bank

of the New York Stock

Arizona, Phoenex, Ariz..

approved

eacj1

kank#

Connecticut Banking

j->ase(j
shares

$10

exchange of 27,500
par value
capital

stock o[ tke Stamford Trust Com-

,ug

$55 000

cash

for

this advertisement appears

NEW

Co., Inc., members
Exchange.

of the

Trust

matter

of record only,

$1,400,000

City of Sherbrooke, P.Q.
5% Sinking Fund Debentures
Dated

April 15, 1957

mature

April 15, 1977

Principal and interest payable in New York

in U. S. currency.

Com-

Old^Greeniidch.

Kenneth John Hanan, Chairman
of the
Executive Committee of the

sav-

ISSUE

n 00Q shares of the $25 par value

capital stock

they will need for

Nesbitt, Thomson

National State Bank of Newark,

died on April 27 at the age of 61.
*

Commenting further on the advantages of a college career, East
River's President pointed to a recentlv oomole^d Government

snr-

which said the average col-

The

Provident Trust

AND
25

Company,

BROAD

Telephone

COMPANY, INC.

STREET

NEW YORK

•

Philadelphia, Pa., and Tradesmens
Bank and Trust Company, Philadelphia, Pa., consolidated under

the

name

Provident

Trades-

140 FEDERAL ST., BOSTON

CITY 4

Teletype N. Y.

HAnover 2-8875
•

age

officer

These Debentures having been sold privately,

se¬

an¬

under

Arnold, Jr. has been
Manager of the investment

new

(220,000

George D. Jones has joined the
municipal department of C. J. De-

Bank, as of March 18.
..

17.

Sandersville, Ga., with a
capital stock of $50,000, was con¬
title

com¬

Bank of

the

Cali¬

York

Geo.

verted

merged
of

capital stock from $1,760,000

shares,

common

/;■"

stock effective April

(500,000 shares,

and title

Oakland, Calif., increased its
mon

$5,000,000 by the sale qf new stock
effective April 12.

Mar,;, Calif.,

)»

by directors
Stockholders, the
Commission
and the pederai Deposit Insurance
corporation also must approve the
proposal. xhe merger would be
Q£

college bills.

vey,

National

May 1.

$4,000,000

Central

Company, Indian¬

from

del

charter

consoli-

accumu-

tn heln narents

tte money

duties

*
•

Angeles,

dation the consolidated bank will

^ of

6 fo7 ga?n?ngy ite^o'llege

apolis, Ind., increased its

The

stock of $1,150,000;
Lake
Shore
National

The

per

present
of $1,500 to $2,000.

year

Fletcher

Bank and Trust

'I*.

Jamestown,

Bank

Nodyne said he believes a
college education is fast becoming essential to a successful career
in today s world of specialization
and
scientific
progress.
According to the U. S Office of Educa-

Society
*

Los

fornia Bank effective April 15.

William

his

Bank,

vine & Co., 48 Wall

ii:

have capital stock of $1,350,000,
offices, thus becoming the divided into 67,500 shares of cornin New York City to mo,i stock of
the par value of
offer this family service exclu$20 each; surplus of $2,450,000 and
sively in the area. It joins some undivided profits of not less than
other
300
progressive banks in $1,051,961.
the United States, who are con' ; '
; *
tributing to the national effort to
A merger o£ the stamford> Conll.
make a college education availTrust
Company and the Trust
more

of Cleveland

bank

Mr.

Corona

that

assumed

California

under

Cleve¬

hattan

first

Boards.

Nairobit,

Calif., and Newport Harbor Bank,

liamson, Chairman of the

Bank

April 15.

P,;Wil¬

Branch,

admitted

common

and

Company

Merim B. France, President of
the Society for Savings in the
City
of Cleveland, and Arthur

land,

Road

Kenya..-

Counsel.

Chautauqua.

April 29 installation of the College Club savings plan in all five of its Man-

iiwc'nlan
New

been

qua

as¬

Personal

Loan department, 67 Broad Street.

dent

Division

served
of the

offlcial

department in 1952, and was ap¬

Breitbacji, President; Morris

General

Trust

Society National Bank

Vogel, Vice-President; Walter
Fry,. Cashier; Michael Koses,
Secretary;
Bernard
H.
Reich,

the East River Savings Bank, New

able to

The

Saturday,

bank is $650,000, and its surplus,
$550,000.
Officers of the bank are: Frank

York, announced

Brew will

new

in the Federal ReSystem., The capital of the

consolidation

the bank's office at 26

seas

Papen
in 1954

George O. Nodyne, President of

Vice-

Presidents.
>

•

Mr.

duties

previously-

Credit

bank;-";-'*y
as

its

Far

Sven B. Jensen

noi

Company in 1946. Appointed
Assistant Treasurer in 1954, he
has served in his present capacity
since the early part of 1955.
Mr. Papen joined Bankers Trust
Company in 1951 and is pres¬
ently assigned to National Divi¬
sion III, serving the Middle and

Conway Brew

has

Deposit

effective

membership

28,

serve

Trust

Brew and Sven B. Jensen

N.
Y.,
which
officially
its doors for business on

opened

; m

Trust

and

State Bank of Long Beach, Long

York.

opening

Terri-

Dauphin

Bank
.

River

merged under charter and title of

Neck building,
covering* April 20.
^ ' ' ,

filiate, at the head office in New
v *■-

- •

Central

ni„

insurance

Company, Great Neck, N. Y., cel-

tories, joined the
uary

Co^
Coi

lnsurance

member of the Qreat

National Division

a^ DenSL
pOS 1

Fede

;ebrated

£fin

New York

pany,
was

Com-

1-4358

Telephone HAncock 6-3355

The Commercial and Financial Chronicle

zzZCVz.z/:X Employment

High Capital Spending to Continue
In Next Four Years, Survey Finds
12% Increase over 1956,
future increases in

Thursday, May 2, 1957

maintain

these

actual expenditures may

high level of capi¬

very

higher.

expenditures during the next
And, plans for research
and new prod¬

tal

are

sharply.
two

By 1960, art
manufacturers' sales are expected

the

One-third

Hill

firms

Plans

•

;

all manufacturing

planning capital expen¬
in 1957 for the purpose of

are

ditures

of Bus-

survey

iness'

•

made

not

products

1956.

annual

McGraw

principal findin gs of the
tenth

re¬

1958-1960.
least 10% of total

are

stepping

continue

and

search during the years

These

•

for New Plants

bringing out new products. This
is a significant increase from the

and

number who were

Equip¬

ment, just an¬
nounced
by

Dexter

Keezer

Vice-

Keezer,

and

President
Director

Department

conducted, the

which

Economics

the

V
Companies participating in the
survey employ over 40%
of all
industrial employes in the United
Their responses

tp the sur¬

questionnaire were made dur¬

vey

ing recent weeks.
The level of business investment

planning to do

Manufacturing companies ex¬
pect to need 7% more scientists
and engineers in 1957—and an ad¬
ditional 15% by 1960—to carry out
their research and development
capacity in¬
6% in 1956. Plans call for
6% increase in 1957, but

creased

another

only 15% for the three years 19581960.
Manufacturing companies,

operating at

the average, were

the end of 1956,
preferred operating

86% of capacity at
compareH to a

facilities . is rate of 90%.
commonly regarded as the most
•
Expansion will- take 52%
of
important single contributor to
manufacturers'
capital
expends'
general prosperity, Or the lack of
it.
Other key findings made by tures in 1957, but only 47% in
Industry
is
shifting
the McGraw-Hill survey were the; 1958-1960.
toward modernization, and toward
following:
in

producing

new

executives remain
long-term

"Purchasing

terials,

business now plans to

1957,

for
plants and equipment, r This

spend 12% more than in 1956
new

expenditures

increased

re¬

coverage

increase shown

same

check-up last

bv the McGraw-Hill

Manufacturing

pect sales to increase
—

instead

Leveling-out

Spring

expected

orders

placed

"There

assets

general

seems

"a faint but audible blue note" for many

agents comprising

Commodity

price pattern, as a reduction
in those reporting prices higher is
offset by a simliar reduction in
those reporting prices to be lower.
than

other

good—but not quite
expected—is the com¬
posite diagnosis of the purchasing
agents who comprise the National
Business is

good

of Purchasing

Association
Business

Committee,

Survey

Chester

Chairman

whose

Agents

Ogden of the Detroit Edison

Com¬

report points

of April

end

The

that:

out

Spring pickup
lias, as yet, failed to materialize."
The Survey finds that "production
"The

and

.expected

remain substan¬

orders

new

tially unchanged from last month
and this failure to
improve has
in

resulted
blue

audible

but

faint

note.

the

cite

"Many

reduction

bousing starts, the failure of auto¬
mobile production to meet earlier
favorable estimates, the

steel

which

finds

the

itself

appliance
reasons

industry
for their

optimism.

curtailed

hand, most hasten

"On the other
to

reduction

output, and the situation

say—business is good—just not

quite as good as they
is

"There

cement, ana;£reiglit ^:•%J*factory .unden"ritino-

steel

copper,

renewed

effort

also

sure

distinct unwillingness to

buying

commitments

scrap,

supply

«'

structurals."

steel plate, and

:
"*1

;

^"'V

from

increased

passing|
costs

Statistically, 58% look for
prices to inch upward, 36% to
remain the same, and
onlv 6%
believe they will be lower."

Parenthetically,

! E

and

York

New

Midwest

;

any

further ahead than necessary.

rower,

and

members say they are
paying more for the items they
buy. Not since 1954 have so few
reporting

price

reported

The

increases.

majority(66%) say prices are
steady and 9% say they are lower.
Over-all, there is the feeling that,
because of probable higher labor
costs, prices- will nudge upward
during the remainder of the year
—but

not

much

that thee will be

costs—so

further profit

Bert

will in due
It is

beginning with
office boy in 1920.
serving

presently
the

Association

he is

Group

serving

now

Committee.
Governor

the

Investment
Of

•

very

IRA,
its Executive
of

the

also

former'

addition,

National

the

Horning

Mr.

Chairman

District

Association

and

the

day,

management's

concern

about

need

general reduction.

the

Security

Traders

Louis.

St.

Club

of
.

Chicago Analysts to Hear "
CHICAGO,

Society of Chicago vvill

Analysts
have

111.—'the Investment

speaker at their luncheon

meeting, to be held in the Adams

ter

hours

22%.

asked

special

purchasing

question

executives

reductions in this
mpnv

area.

Avho indicate

predict what they expected would

gradual, working

happen to commodity prices dur¬

over

•-/

.-First

There

the

Hoadley, Jr.,

further, but

speak

dustry
to

Treasurer of

Armstrong Cork Co., who will

are

down program
the next two months."

National

The

Hanover

These amounts
and

used

are

only

19,000

Conn. Mutual

15,000
23,000

15,000

„

the

large

interest

40,000 '

19,000

20,000
20,000

25,000

all rounded figures as of the end of

to show

' 18,000.
18,000 '".C 24,000 -

18,000

47,000 "
20,000

______

Bank

-New York Trust Co.__________

■"V

holding

Travelers ** Aetna Life

City Bank__„_- 20,000

"Guaranty Trust Co

Number of Shares Held By

Trust

that

bank

1955,

stocks

already have for important life insurance companies.

NATIONAL

the outlook for the in¬

with

particular

Armstrong Cork.

BANK

;

lower

month's

;

A few examples of the extensive hold¬

Co._____;______ 19.000
/Chemical Corn Exchange Bank
3,000-

Bankers
t

reference

First Quarter Analysis

INDIA, LIMITED
"

the

Government

13 N. Y.

Kenya Colony and Uganda
Office: 26- Bishopsgate.
London, E. C. 2.

City

Head

West

End

(London)

Bank Stocks

Branch:

13, St. James's Square, S. W. 1.
Branches

Burma,

India.

Pakistan.

Kenya.

Aden,

C»"-'on

Laird, Bissell & Meeds

Tanganyika.

Uganda, Zanzibar, and Somaii-

Room at the Midland Hotel, Wal¬

reporting inventories
has
ranged from 20% to
This month, 37%
indicate

Security Dealers and is a member

softer sales

the cost of money created a
for

given permission to hold bank

now

are

large blocks of them:

Bankers

•

order

large number of out-of-

New York law, have for years been

new

Seven

number

"This

companies that

Stock

Midwest

Inventories

"Since the first of the year, the

being lowered.

be adding them.

ings of: New York City bank stocks follow:

America.

Exchange.

Past

their holdings, there can be scant doubt that they

course

stocks under the

Valley

at low levels: -most other equities, and cer-

are

A former Chairman of the Missis¬

sippi

prices

quite. steadily;

been/increasing

have

well, also, to bear in mind that

state life

36 years,

"Employment is down and there
are clear
indications that factory
are

bank stocks to

Horning

Stifel, Nicolaus & Company

Bankers

wlqere at other" times, with money cheap, the borof the dictating.• T

some

/'Bank

Mr. Horning had been

that

no'present indication that life companies will act quickly to add

partment.

Governor

banks

of'

of the

life

tainly this applies to the "blue chips," are still high despite such
declines from their peak prices as they have had. While there is

over

the

de¬

with

Book values have been consistently higher; prices have .
not.; Hence, ;.price:earnings ratios have been more- favorable to
the investor, and he has seen a steadily higher rate of earnings on
his equity. Also, with pay-out ratios comparatively low in relation
/to operating earnings, some dividend increases are probable over
/the remaining months of 1957. ! * *
'
•"
' ' V ":
;
'
/•'

Sti-:

svndicate

for

did

Bank- earnings

"Inventory corrections were the

City

York

New

di¬

factor

...

petition have combined to hold
prices in check. Only 25% of our

the

have not.

firm'«

the

•

Presi¬

important

the borrower,

Horning,

ratios and renewed com¬

that

probably never have their loan accounts been of better quality. As
C money is relatively tight a bank loan officer can dictate terms to

Bert'

Mr.

Manager

Commodity Prices

demand

be .added

may

;

ced-

n n o u n

Another

easing of the supply-

the

that firm

"Further

The point

of this divergence-lies in the fact that the average rate .of return
of these banks in their loan portfolios is running about double the
figure they, derive from, their governments.,'-V'-•'-•/ ..V

;
•

banks, being in a central reserve city of the Federal. Reserve SysMo.—The partners
of Dempsey-Tegeler & Company, .j, tern, must, perforce, keep pretty much to very short-term government paper, on which the yields are lower.
• -<
10th & Locust Streets, members

rector

the

shares? Again, in the 1957 first quarter,
holdings of government obligations declined by $79,160,000

ST/ LOUIS,

dent

% But what of the bank

in the quarter was up by $1,131,000,000, or about 7.6%.

Horning Joins
Dempsey-Tegeler Co.

f o r m e f 1

all

12 months' fire losses

(1.4%) for-the leading New York City banks, while loan volume

fel, Nicola u s
the- balance of 1957/ There
& Company/
general agreement that labor
has j oin e d
costs would be higher, that the
entire increase could not be! off¬ Demps e yTegeler &
set by improved methods, but that
Company as.
pomnetition would prevent manu¬
their

% bank

Bert
<

faced with another very unsat-

in the middle-west.
"

Nickel,

are:

are

year in-1957. with

nertod; and with tornadoes beginning early to scatter destruction

short

"In

Besides; the fire companies

through March 31, 1957, some 14%- higher than the preceding like

ing

they
are in tune with present sales vol¬
ume.
As a corollary to this, there

make

Brass,

paper

scrap,

are:

textiles.

and

;/•

side

down

the

America

other high-grade fixed income media that will
in excess of the fire-casualty present yields.

* 01

squeeze."

expected,

inventories, to be

reduce

also return much

lu-

was

facturers

are

55*!!?
rates.

Vice

buyer.

Detroit.

pany,

5%, and there

machine

"On

con¬

example, Hartford Fire yields currently only about 1.85%;

foods,

that so far as

out

around 21/k%. Home mortgages now give the life companies around

paper,

of the purchasing

For

'toms

tools,

companies brought

purchase of either fire

Continental Casualty about 1.60%; Insurance Co. of North

coal, chemicals,

scrap,

the

casualty insurance stocks by
life units, little if any of it will be done under present conditions.
Life companies, obviously, will be very "choosy'.' about the quality
of fire-casualty insurance stocks they will buy at any time.
And,
say these officials, they will do no chasing of even the ton grades
at the current very low yields when 'the life companies have
available to them so many investments at so much higher, returns.

the

"On the up side are:

insurance

York

cerns

Changes

marked change

changes, have

the N. A. P. A. Business Survey Committee.

*A chack with the investment officers of several of the large
New

deliveries."

Specific

is increased from the lesser of 3%

one-third of surplus, to the lesser of 5% of assets or one-

half of capital.

that the safest policy
in the present market is one of
limiting forward coverage to that
which
is
necessary
to
assure

needed

insurance issues)

bank and

agreement

that

strikes

upsurge

fillip, pricewise.

one

of the state insurance department.

than 90 days ahead.

Leaves Business Good, Not Better

these

have

who

number

Stock

Spring Pickup to Materialize

the

into
for

supplies, 91 % are. unwilling;
y ..Besides permitting New York Stater domiciled life companies
to
go
beyond J this 60-day limit ythus to expand their list of "legals," out-of-state life companies
and, even on capital expenditures,
doing business in New York State v/ill enjoy the same permission.
there is a noticeable drop in the
The authorization to invest in common'stocks (now including

Failure of

law has given them

going
levels

MRO

and

companies ex¬
26%, on the
fall.
average, by I960.- But growth in¬
dustries
including most capital
For 1958-1960, business already
has plans for almost as much capi¬ goods industries—expect sales to
y
tal spending as in 1956. And since increase 30% to 36%.
is about the

market

insurance stocks will be subject .to the regulations and supervision

83%
are
holding their/
to 60 days or less. On

•

;

product development,
its long-range plans.

On production may

law is

investors

for

just enacted, which broadens the eligible list of
investments into which life insurance company funds may be put.
Until now the life companies in New York State were not permitted to buy either bank shards or those of fire or casualty insurance
stocks. The investment by life companies in bank and

about making

cautious

£.;,\"/.

The

Bank Stocks

—

reasons

little influence

conservative media, a new
-

commitments.

statistical

solid

stocks have had

bank

Policy

Buying

"There is

Manufacturing

This Week
Where

%/;/< *■■■ / :

programs.

survey.

States.

1956.

By ARTHUR B. WALLACE

employment up dropped to 13%,.
with 56% showing.no change.'*

plans to increase re¬
expenditures 20% in 1957,

;

Bank and Insurance Stocks

lines and a stoppage of/
April reports indicated'
change in the em- >
ployment picture. The March re¬
port showed little s change since y
the first of the year. This month;'
those indicating less employment
climbed to 31%. Those reporting1
measurable

Business

tour years.

ucts

plans, the
turn out
„v •
* '

preliminary

are

many

1957 planned at
McGraw Hill study finds. Great
research expenditures noted.

plans

business

American

production

overtime,

outlays for plant and equipment in

Business

reduced

"With

(2062)

land

Authorized

Paid-Up
Reserve

Capital

Capital
Fund

Members

£4.562,500

£2.851.562

1*0

banking and exchange business.
Trusteeships sn<1 P-«»'-"torship«
undertaken

American

BROADWAY.

£3,104,687

The Bank conducts every description

also

Members New York Stock Exchange

Protectorate.

Telephone:
of

Bell
iL

Stock

NEW

Teletype—NY

Glbbs,

Exchange

YORK

BArclay 7-350(1
1-1248-49

Manager Trading

Specialists in

Dept.;

Bank Stocks

Volume

185

Number 5634

The Commercial and

Financial Chronicle

(2063)

►

31, 1955

Liabilities and
Current Assets: ^
Cash

x-y'ri

$ 15,240,310

■«•»•••••!•••«•

United States Government securities, at cost...
Accounts

receivable, less

reserves

►

»•••*♦♦♦♦<+

"i"

$ 13,755,825 f

sAccounts payable
Federal taxes

13,900,000

43,898,472

■

7,998,012

35,701,797

ment

and

27,616,388

WM%

and

8,355,892

7,148,438

$100,055,933

Properties, Plant

and

reserve.,

8,854,177

7,017,494

Equipment:

leases, oil wells and equip¬
ment, refineries, marketing facilities, transporta¬
tion equipment and facilities,
terminals, office
buildings, etc., at cost..

$395,338,467

Less-Reserves for depreciation and depletion....

195,524,998

174,194,264

$199,813,469

$192,329,432

year on

;

49,810

........

8,17,6,437

3,000,000

4,540,682

3,777,024

payable to banks

$ 29,983^628
year):
(3.25%), due in equal

one

annual instalments to 1963.
year

$ 15,000,000

Thirty

year

.....*

4,684,471
705,470

5,389,941

$317,166,661

Operatinc Statistics-Barrels

1956

939,183
$

38,500,000

;

$ 81,000,000

Stockholders' Equity:

Capital stock:

;

—7,500,000 shares without
Outstanding—4,000,000 shares

par

•

value
$ 74,699,277

Earnings employed in the business

$ 74,699,277

134,483,756

$304,489,751

INCOME

1955

FOR THE

$196,609,412

$317,166,661

121,910,135

$209,183^033

5,086,892

Production of crude oil —gross

25,000,000

__38,000,000
$ 78,000,@0

$366,523,696

4,147,709

25,000,000

3.85% sinking fund debentures, due

1983

Other

$ 17,500,000

2.85% sinking fund debentures,

Authorized

Taxes, insurance and rents...........

V>.

86,792

long term debt

due 1974

Deferred Charges:

Western Hemisphere
Eastern Hemisphere

one

'V.
-AV
Long Term Debt (due after

•Twenty-five

Oil and gas lands and

■

Notes

Advances, at cost, less

below cost.

$103,109^074
Investments

$ 11,877,068

'-f :

9,552,7,87

Other liabilities

29,549,873

1955

$ 12,803,367

income less United States Governof $12,000,000 in 1956 and

isse

securities

Instalments due within

determined by the annual last in first out method

and, in the aggregate, below market

Other taxes

refined products, on basis of cost

Materials and supplies, at

$16,100,000 in 1955 held for payment thereof.....

Inventories:
Crude oil

Capital

Current Liabilities:

$304,489,751

ACCOUNT

YEARS

1956

26,566,000

20,743,000

20,729,000

2,073,000

1,312,000

44,479,000

44,508,000

Selling, general and administrative

47,887,000

50,876,000

1955

1,500,000

AND

26,723,000

2,369,000

Depreciation and depletion

...........

1956

1955

Production of crude oil—net
Western
Eastern

Hemisphere
Hemisphere

Crude oil processed at
Sales of refined
Employees

and

refinery...

products

employees at

$254,043,152

year

$37,272,408

5,666

end.

$139,782,484

32,202,627

26,336,783

23,959,839

expense..,

22,493,965
7,611,309

$196,224,541

$ 42,608,766

Nonoperating income

,8,704,941

$211,434,386

$33,939,000

5,914

$245,295,088

$146,566,979

Cost of sales and services

Dry hole losses and abandonments

Payroll

Payroll and employee benefits.:..
Number of

Gross operating income..

$ 49,070,547

1,334,441

$ 43,943,207".
Interest

bank loans and debentures.,

1,381,179

50,-fj 1,726

2,869,589

I :i
Provision for Federal taxes

OIL CORPORATION

Net income

Executive offices

555 South Flower

Street, Los Angeles 17, California

income.

share.,

$ 47,509,448

14,500,000
...

m
Net income per

_2,942,278

$ 41,073,621

17,900,000

$ 26,573,621

$ 29,609,448

$6.64

$7.40

and Financial Chronicle

The Commercial
20

continue

Continued from page

two sides. On one
hand there is the rapid growth of
contractual savings in the form
of social security, pension plans

which could
contract what is left for discre¬

real long-term

life

and

insurance,

form

the

saving- in

tionary

savings hank, accounts. On the
other side looms the threat of

inflation, which whittles away at

purchasing power of the dol¬
lar and stimulates a shift from
dollar into equity investment.
the

serious doubts exist
constitutes

inflation

tion

Thursday, May 2, 1957

structive

Twofold Threat

about
twofold threat to the future

Let

this

savings

the

look at the facts

account.

has

saving

contractual

True,

expanded greatly in volume. But
as
people accumulate more sav¬
ings in pension and similar plans,
this only serves to enhance the
attraction
of the liquidity and

have

readily available for family emer¬
gencies whenever they may arise.
Savings accounts assure that funds
will be on hand for the education

practicable.

out¬

of children and similar heavy

lays as they are required.
And
savings accounts have an impor¬
tant role in supplementing con¬
tractual retirement

benefits after

banks

savings

service

this

to adapt their
shift so far as
*

inflation

future

of the variable annuity.

means

is learning
benefits
of
liquidity in the current period of
credit stringency. This applies to

Variable Savings Accounts

The whole economy

appreciate

the

momentum in time.

Major

States

United

has

apart,

the

suffered

not

sustained, serious inflation before.
But there is widespread fear that
chronic inflation will result from
two

new

forces—the full employ¬

ment policy that greatly enhances
labor's collective bargaining posi¬
and

tion

powerful labor unions
in position to take full
advantage of that stronger bar¬
gaining position. At the same time,
we
must recognize that it is far
which

are

from certain that inflation will be

street. The restrictive
policy being pursued by
Reserve System and
the current outcry against rising
government
expenditures give
one-way

credit

Federal

the

evidence

concrete

will

that

inflation

meet

strong
and
perhaps
resistance.
Expanding
capacity in industry intensifies
competition. We have yet to learn
whether last year's 3% rise in the
cost of living was part of a chronic
trend or only the usual tendency
for commodity prices to strengthen
in a boom period.

effective

Equities

Even if the trend of the cost of

from

certain

that

equities

effective future

inflation
that

the

equities

offer

hedge against
It

saver.

proved

deposits

The

true

effec¬

and

inflation

threat

watching

and

bear

will

calls

for

great deal of circumspection*. Pre¬
action

mature

by savings institu¬

tions to turn to equity investment
a
large scale could add to
inflationary pressures by foster¬
ing a boom in the stock market.
On the other hand, if present-day

national

economic

policies

are

going to bring chronic inflation,
not

economists

few

abroad

are

here

convinced will

and
the

hedge

the

past,

over the long run in
but there have been
periods, like 1946-49, when the
cost
of living rose while
stock
prices declined. At this time, when
industrial stock prices are double

level

the

three

years

there is evidence of

profits
risks
well
an

ago

and

squeeze

industries,

the
equity investment could
outweigh their attraction as
many

inflation hedge.
on

both sides of the
question, it is
apparent that the inflation threat

calls

for

attitude

some

the

institutions

should

not

continue to hold the leading place

these

come

the

question

that summarizes the most serious
concern

Even

among

the

savings

future

vol¬

specialized

fields

where

time and experience have proved

chief

threat

savings

confronting
for
the

banks

future, so far as their competitive
position is concerned, is that they
will not win or hold the right to
institutions

other

that

American

in
set

offer

seek

equal

terms,

fuller public

they

must

and legislative

of their economic
providing a special¬
for such concern. For one thing, ized, highly efficient savings ac¬
count service. Certainly, the action
commercial banks, under • the at¬
of the New York legislature at its
traction
of
high interest rates,
last session gives little reassur¬
have embarked upon a campaign
ance
on
this
score,
and much
to secure a larger share of the
reason for worry.
savings
account
business
for
But what happened at the 1957
themselves by paying higher rates
on
savings and bv emphasizing legislative session in Albany, must
reasons

product and market changes.

The

profession of savings banking
can

The

savings

impact,of economic

lost

battle; they did not lose the

other laws. A third is the apparent
readiness of legislatures, particu¬

True, this has been
a

series of

one

disappointments.

war.

But it

reassuring to remember that, no
how many times you are

seatic

changes and

Han-

Formed in Cleveland
CLEVELAND, Ohio—Murch &
Co., Inc. will be formed as of
May 9 with offices in the Hanna

Building to

engage in a securities
business. The firm will be a mem¬

change.
D.

savings banks can cohtinue
to make their full contribution to
growth of our dynamic

economy.

Conclusion
The

York

Murch & Co. to Be

how

the future

the New

Corporation.

report regularly fo/tfie< industry,
the public and the legislature on

ber

the

New

York

Stock

Ex¬

Officers will be Boynton

Murch,

President

and

Treas¬

who will hold the Exchange
membership; Frederick F. Leustig, Vice-President and Secretary;
urer,

Warren

Steffen,

Vice-Presi¬

record and
performance of mutual

present dent, and Elliot B. Lemon, Assist¬
savings ant Treasurer.
banking, particularly in New York
Mr. Murch was formerly local
State, are brilliant.' There
are Manager for Cosgrove, Whitehead
reasons
for fearing that the fu¬ &
Gammack
and
prior thereto
past

ture will be less satisfactory.
flation

can

In¬

dim the appeal of sav¬

ings

least

partner

was

Co. Mr. Steffen

Fulton,

Reid

with Gottron

was

public,

to the
present

accounts

Russell & Co. Mr. Leustig was
form. In¬ Manager of the unlisted stock de¬
competition for savings partment for L. B. Schwinn & Co.
accounts particularly from com¬ Mr. Lemon
was with Fulton, Reid
mercial banks, which discrimina¬
& Co.
tory restrictions on branch and
other; powers of savings banks

their

tensified

can

make

can

cut

much

effective,

in the fu¬
growth of savings deposits.

ture

Recognizing
nevertheless
about
a

these
cannot
the

teacher

threats, I
feel
pessi¬

future.

savings

bankers

have

student

and

banking for nigh upon
I have never known

were

40 years.

time when

not

Stone & Webster Marks

the

substantially

down

of savings banks

wor¬

ried about their future role in the

Yet the deposits of mu¬
savings banks today are six
as
large as they were in
1921, when I made my first study
of the industry.
Surely, mutual
times

50 Years in
CHICAGO,
office

Chicago

111. —The

Stone

Chicago

Webster

Secu¬

rities Corporation this month cel¬
ebrates its 50th year at the same
location

—

South

Clark

Street,

in the First National Bank Build¬

ing, Robert G. Mead, Vice-Presi¬
dent in charge of the office, an¬
nounced May 1.
The office was first opened on
May 1, 1907 by George Higginson
who
are

came

now

here from

Boston; there
people employed here.

Stone & Webster Securities Cor¬
banking
must
possess
innate strength
to have poration also has offices in New
achieved this growth in the face York, Boston, Philadelphia, Provi¬
of the problems and threats that dence, Syracuse and Hartford.
have constantly beset it.
-

savings
great

perspect¬

banks

being made
on all mutual institutions
through
sought-for changes in tax
and

de¬

tual

ive.

that

and

research

economy.

be viewed in its proper

attack

velopment committee to study the

understanding

one-stop banking.
the

use

Avenue, North, as Manager of the
unlisted trading department. Mr.

is to

cal,
also

Nielsen

thereto with

research and development
departments to assure that the
enterprise .will. initiate..and.keep
abreast, of economic, technologi¬

function

the advantage to the depositor of

Another factor

business today

Soren D.

with Beil & Hough, Inc., 350 First

was
formerly with Tucker,
Anthony & R. L. Day and prior

nearly

number of

re¬

One of the characteristic trends

ings banks continue to attract as
'arge a proportion of the funds
flowing into savings accounts?
a

from

Development

3 Research and

been

are

relief

for

mod¬

savings banks are to obtain the
legislative changes required to
enable them to compete on more

There

operating in 43

the

mistic

and

will strengthen the case for
ernization of the law.

savings account service. If mutual

savings

Nielsen has become associated

just because the
difficult one to

shots,

need

the propor¬
tion of such savings going into
savings accounts are maintained
at a high level, will mutual sav¬

matter

This

compete on terms of near equality
with

Hough, Inc.

PETERSBURG, Fla.—Soren

agencies as well.
necessarily wise to scat¬

one's

hanks'

criminatory and burdensome re¬
strictions, there is no reason why
mutual

ST.

hostility

strictive and outworn curbs.

dis¬

Beil &

away

passage of time, new
changes and new shifts
population and industry are
bound
to
increase
the
savings

Provided

hampered

bankers

Soren Nielsen With

dominant

institutions.

not

are

The

associations

With

savings banks, savings and

mutual

hey

savings

the

economic

loan associations and credit unions,
all

chosen target is a

by mutual companies. Almost 60%
of the funds in savings accounts
in

hands..

hit.

Nearly two-thirds of the life in¬
of the country is written

are

economy

eral supervisory

competition.

free

different

strong

loan

becoming

wipe

surance

mutual

Banks

flexibility
of
of savings larly in New
York, not only to

part

won

the

analysis,

states, and perhaps from the Fed¬

their advantages.

The Future of Mutual Savings

Weighing the considerations

position

patterns that this will bring about.

tive

institutions have

from com¬
mercial bankers and savings and

to
compete for the privilege of
serving the public. Each possesses
certain
advantages
and • certain

Now

quite

able

ter

it will be necessary to adapt
savings
bank
service
to
the
changes in savings and investment
case,

causes

withdrawals,
always
based on ..the
cynjent handicaps--Inoindustry^and trgcfe,
value of the investment units' of the profit motive has generally
which the
variable
savings ac¬ given the best results. In provid¬
count would be composed.
ing thrift service, however, mutual
large

ume

living continues upward, it is far

of a passbook
to make small or

savings banks
is, in the last

get it passed in the face of prob¬

banks

flexibility

the ability

and

bankers.

Long Run Hedge

the

periods

war

savings

have been able to

The future role of

placing undue reliance upon what
best a hope. It is one thing
to introduce a bill in Washington.

could well-run specialty shops from giv¬
similarly seek legal authority to ing a good account of themselves
open variable savings accounts to in the retail field.
individuals as well as to business be invested in
equities. Dividends
and financial institutions.
Removing Unfair Restrictions
and
principal payments
would
Inflation poses a threat of a
Attacks on mutual institutions
then be based upon the value of
different and more serious nature investment
units
held
for
the through efforts to change tax and
to the future of the savings ac¬
other laws are not likely to get
depositor,
rather
than
dollar
count. If the decline in the pur¬ amounts. At the same
time, the very far if the facts are presented
chasing power of the dollar per¬
depositor in a variable savings to the people and Congress. Under
sists, a shift from dollar to equity account
would
retain
certain our free enterprise system, profit
saving media is bound to gain benefits of a savings account, such and mutual institutions are free
Mutual

you

do in the past.

is at

increasingly department stores of
finance.
The growth of depart¬
ment
stores
has
not
prevented

retirement.

future,

Federal

would

curbs as by a magic wand
enticing, but there is danger in

It is not

are

a safe, efficient and fully
competitive saving service in the

York

New

such

crowded beehive of

Commercial banks

dream

that

activity they will become. Savings

trend

done

The

charters

companies,
perhaps
prematurely, have al¬ service, can turn their specialized
character
into
a
competitive
ready come to this conclusion and
advantage.
are seeking to adapt their service
life insurance

Some

must be modernized to enable you

banks, by emphasizing speed and
convenience
of
saving
deposit

add

State.

personal savings. If a bers of persons into their branches
much larger proportion of future for consumer loans, checking ac¬
ready availability of savings ac¬ savings is to flow into eqliities counts and a host of other bankcounts. A savings account alone instead
of fixed income invest¬ 'ing, trust and investment services
assures that funds will always be
they
promote
aggressively
ments, it would become the-4uty that
a

industry, the
function

you

invest

the more of

wnich

under

to offer

belief that the
primary job in winning relief
from
discriminatory
curbs; will
I

May

dude
that
this
competition
is
prices. c3ut if the battle
bound
to
curtail • severely
the
against inflation should prove , a
future growth of deposits in sav¬
losing struggle, which is possible,
savings bankers would have to ings banks.
For
one
thing, savings banks
give serious threat to adapting
their service to equity investment. possess
well-defined advantages
as
After all, the chief economic role
specialized
institutions.
The
of: savings banks is to provide a more successful commercial banks
specialized
service
to conserve become in attracting great num¬

program

ability

adapled

It may well prove neces¬
sary
for this industry to work
bankers
would desire.
Lack of harder, think harder and, at times,
unanimity among savings bank¬ fight harder for the right to do as
ers greatly weakens the industry's
good a job in the years ahead as
it has done-in the past.
pleas for legislative relief.
T^

threat to the pur¬
some
60% of the year's increase
chasing of the dollar, rather than
in all
savings deposits and ac¬
a temporary result of boom concounts. Last year, their proportion
ditions, savings banks must stress
was closer to 20%. Many commer¬
the safety of savings accounts as
cial
banks
are
determined
to
compared with the many risks
secure a larger proportion of sav¬
and
uncertainties
thatattend
equity investment, especially at ings deposits for themselves.
It is too early; however, to eonthe
current
advanced level
of

and

has

experience

to strengthen
savings banks to
compete for savings deposits on
a
basis of
reasonable- equality,
even
one
considerably less am¬
bitious than what many savings
the

for

accounted

closely regulated

law

industry to unite whole-heartedly
and with conviction upon a con¬

tition in the future. A decade ago,

banks

year's

service must be

changing economy if "it is
retain its appeal. Above all, as
our

once.

This

ings banks face intensified compe¬
commercial

demonstrated the necessity for Uie

Competition

Future

But this

be no doubt that sav¬

can

legisla¬

Lack of Unanimity

stock

just

which

Intensified

future.

So long as

new

rates,

There

whether

program

would further
limit the ability of savings banks
to compete for deposits by crude
legislative fiat.
dend

long view of the

bankers taking a

from

the

3% ceiling voted on regular divi¬

Savings Banks' Future Role
And Prospects in the Economy
ened

add

solved- with

constructive

upon

enactment

discriminatory

savings banks,
ones such as the

existing

restrictions
but

(2064)

Let
I

feel

of
far

hasten to add that,

from

take

while

confident about the future

mutual

savings banking, I am

complacent.

granted.

specialized

service

that

matter

offer

disappointed, the problem will be

people have needed and wanted.

<Special to The Financial Chronicle)

GRANVILLE,

Ohio—Harold L.
Long has become associated with
You Remmele-Johannes &
Co,, 118 East

We cannot

the future for

Joiris Pemm^-Mannes

Broadway. He was formerly with
Slayton & Company, Inc.

Volume

185

Number 5634 .'.

new

The Commercial and Financial Chronicle

chapter

(2065)

the story of
in

SOUTHERN
The

dynamic

Southern

PROGRESS

of the

growth

Southeast

is reflected

The

Company's

eighth annual report. The company,
through its operating affiliates, continues to provide ample elec¬

tric power to meet the
the belief that the

increasing needs of this region

firm in

forward march of the South is just beginning!

Highlights of
The Southern

Company System's 1956 Operations

CONSOLIDATED NET INCOME of $30,133,000 exceeded I955's by about

Earnings

share increased from $1.34 in 1955

per

dividend rate

raised from 25c to 27He per

was

1957 payment.
J" Vr+-* p.

share, effective with the March 6,
.

14%.

1956. The quarterly

•

OPERATING REVENUES

which

amounted to $227,530,000 in

-ZW.

■

to $1.53 in

1956,

OPERATING
in 1955."/

•

EXPENSES

,/r.W.//
/
;

came

j-/.
•

first
an

passed the $200,000,000 mark in

increase of

some

;

yV..

■■■■■ ■ ■.

■

' /•"

r"1
•.

.yi-jii

than

••

nPiM-

-:r.

- v

$98,228,000, approximately 8%

■'//- ;

9%.. -;

1955

;

SALES .OF ELECTRIC ENERGY, amounting to more than 16 billion kilowatt"f
?V

hours,

v'
T'A

'»•*.

•;/ of 4%
| ■: P? -V.C? bi: "b*

9%. V

were up

•

■

..ppprp?

•-

pp •/. ;,P

./ CUSTOMERS served directly numbered 1;372,000 at the

v > v-.r-'r*"":

.v."

over 1955.

CONSTRUCTION

year

" totaled.-■>$85,328,000

EXPENDITURES

end,

increase

±////./•/; //',/

/;'_yy /'■ >/

—

approximately

•

$12,000,000
"I

$140,000,000,
'

than in

Plans for 1957 call for expenditures of about

1955.

New generating capacity totaling 865,000 kilowatts

■

under construction.

is presently

" ///7;,P') •?

/ ■//

PURCHASE OF THE GEORGIA POWER AND LIGHT COMPANY PROP::

ERTIES, negotiated in 1956,

was

completed in March, 1957, and Georgia Power

began supplying electric service to approximately 40,000 additional

Company

customers in 20 south

Georgia counties formerly served by the acquired system.

HYDROELECTRIC DEVELOPMENT IN ALABAMA will

forward with Alabama Power
new

power

Coosa

Company's

dams and the enlargement of

River, and the construction of

facilities at two dams

installation of

one

program

conspicuously

existing dam and powerhouse

the

dam and installation of electric generating

the Warrior River. The program

than 600,000

move

for the construction of four

involves

ultimate

kilowatts of hydroelectric capacity.

SOUTHERN

ELECTRIC

Alabama and

Georgia Power Companies,

was

and operate a

large steam generating plant

GENERATING

COMPANY,

owned jointly by the

organized in May, 1956, to build

the Coosa River, close to abundant

coal deposits in Alabama and within easy transmission distance of the Georgia, as.
well

the Alabama electrical loads. First of the

is scheduled for

plant's four 250,000 kilowatt units

was

this work

copy

^ Annual

continued during 1956 by participation of the

system companies with a group of other utility companies and manufacturers in the
construction of

for

completion early in 1960.

ATOMIC POWER RESEARCH

fast breeder atomic reactor near Monroe,

Michigan. Through

•

Report

write:

The Southern
1330 w

Company

Peach tree Street

they expect to acquire technical knowledge and experience which will

assist them in

developing their

The last

own

nuclear

power

plants at the appropriate time.

Atlanta 9, Ga.

half of the twentieth century belongs to the South!"

wmm

The Commercial and Financial Chronicle

(2066)

Continued

Since

from first page

account

consumers

al-

for

the rate of total business

inven-

tory. accumulation has slowed
the United States, a 4%
rise in - down markedly from the rate
their purchases will mean an in- which characterized both 1955 and
crease of $12 billion in the demand
1956. This reduction in inventory
for goods and services.
Business buying is one of the factors which
most two-thirds of all

Is the Business Boom

spending in

there is never a time when all in- activity during 1957 will therefore has imparted a certain sluggishdexes
of business activity are be pulled upward by that amount ness to over-all business activity,
are occurring in the economy, out
headed
upward. Even in the because of the rise in consumer The reduction is, however, a very
sometimes they seem to develop strongest boom there are usually spending;
' 'I-'"'
s
healthy correction and goes a long
quite independently, representing parts of the economy which are
.
way toward ensuring that there
apparently unexplainable shifts in experiencing
temporary adjustBusiness Capital Expenditures • will be no inventory recession in
mass optimism or pessimism.
ments. In order to retain perspecThere is no area of the economy the last h,alf of this year.
moods,

changes in expectation,
on
real changes which

based

are

During the past several months
you

have

mav

velopment
sudden

—a

throughout
nancial

shifts

these

and

de-

spreading

business and fiThis recent
have
developed

the

seems

about

the

Mr.

de-

community

trend

and

one

cautiousness

bearishness

pressin*

the

observed

time

that

all in

were

Hoover

warned

our

Since then,

hair curled.

exactly the same total in the
months of this year as
comparable months of 1956.
As far as over-all business ac¬

in the

tivity is concerned, housing is
not likely to be a depressing
tor
over
the remainder of
and might even
mild upward push in

year,
a

delivered
Tn

rirmmtni-n

incf

nifo

tory

and

nd ing..

fine

with

conclude

To cite just spending, and conclude with an
of these predictions—a well estimate of probable gross national
known economist and former bank product for the year 1957.
/
fifoao

downturn.

..kf^ P going without ..tqis dy-

■

namic force.,
It is true

that

leveling' off

evidences

outlook

business

that "an
economic recession of rather sharp
recently

stated

tures

Consumer Buying

stfuqtion

I do not believe that 1957 will
ing 1957," and a leading brokerage 8° down in the record books as a
house is already referring to "the big consumer spending year.
Alproportions is

business

cuiTent

the

starts

the

United

is:

real

A?thp !L t
of the year is

the

casts,

let

traHitinml

tiaditiona

weather,

Whether this
bearishness is
is a reaction

there

year,1

businessmen

doubt that year

billion

$16

above
■'

rate

Nor do

ago

we^haye
unemployment

with

billon-

S2OT

the

after

seen*

react

cheery outlook
cneery ouuook.

a problem setona
*aWing

were
being
seasonally adjusted

a^alJa*; J3*®*0*

the last

addition

this

however,

it.

seasonal
he

must

ad-

mitted that thus far in

?re

.he
economy

partial

wmcn

man

provide

at least a

for pessimism. In
more
employment fell more

excuse

January,

usual

ror

tnat

ufacturing.:companies,:were

Conuon-

montn

Hivp

nncp

nosf dlve;

Frpicrht

down from

were

parm:)fi,ncTb

^reignt cailoadings
a

year ago.

Auto-

mpaenrintj

nnt

imistic exnppta-

sharply^Yields orf debt TecuritTes
Yields

weakened

debt securities

markedlv

Home

ing fell off still further
was

growing ta lk of

duction in steel
run
rfi
I shall not try

factors.
tioned

The
are

hniiri-

And there

com

in e

outDut
■

■

minimize

areas

have

these

men-

+Vl„„

all important forces in

economy,

and

only an incould claim at

.eyen

1,000,,000./In other/words, I
saying, that' we. have' about

EXCESS

budget; for-the fiscal year

hower

beginning this July.
am.,heartily 'in. favor
movee—in"
such

makes

Although I
of such a.

move

imperative

is booming-$nd

when the economy

hardf.

what is likely to occur,

'quite
^

capi^ai

expenditures has been

./'-It

mate the

seems

probable-that

probable av^rgge demand
The exidapatmn I
,beUey£. greatly overplayed. Even though for new homes 6ver the next three Federal Government purchases.of
be® Partly m co sumer re is a
goods and services in 1957 aMII
businessmen expect to spend less or four
years.- Our studies indiamount to $3 billion, more than
™ "sir£
T'. Pu7
in the .last half of .this yeav than, cate that housing demand under
in'i956, and that the trend will bi&
fantl.V "J
SJSS
th!
the -first half, they still- will -vvhat might be nailed normal con-'

rate.

P.,110^ y.

creait
——

ouying

standing
_

:7.

rose

r?s?

Ibis

spend at a higher rate than in anv. ditions will average in the neigh-

iqrc

spiurge

ox-,

iyoo.

men

a—a

—.u

year I

billion.
hillinn

inS

billion, and

all

surprised

pectations

PecLclu"ns

were cut to not
billion. I be-

the

lieve itwi11 take 1"*^' v
r „V\u"
V consumers the

figures

rest of tbis year to put themselves

see

year

released

were
this

„

•

Although the

morning in

SU+gGi

AND

iyt>u.

until
year-u

tal boom

1956

figure.

steadily

rpaii7P

tions

are

that

1957

condi-

realize tnat 190/ condi

not normal in two major
are

(2) the price

ofuV":?™ ^ reaching the point
homes is
.

where it

upward

throughout the

State and local government
expenditures; which are now.70%

year.*

Now
+•

large as

Federal expenditures,
by $3 billion. Total

will also rise

a £00d

petus to

The economy as

whole

will, therefore, not be
down by this important

drag housing for the full

year

low 1,000,000 starts,
It should be remembered
March

rate

does not vet fully

the

im¬

business activity than

1956.

Satisfactory Increase

Up to

Adds

what does all this add up
to in terms of gross national prod¬
uct for 1957?
I have estimated,
that in 1957 business capital ex¬
Now,

capi- But 1 do not believe that thev will penditures will total

the

will

government spending in 1957
thus provide $6 billion more

quite literally pricing

consumers

RESERVES

—

uu difficult to get, anH

te.Mal^ch
morning in-

f«ction rates All in all, the

•

general mood

deal of thO volume out of
market. These two conditions
neW °f- will prevent housing from reachh
^
.a slx ing the 1,100,000' start level it
backlog at current pro- mfeht otherwise achieve this vear.

months

rise of 7% in the boom

1955.

Phf£eJact thatmachine tool thS

LarSely

pared to

*■

borhood of 1,100,000

j!!'" resnects:- (1) Mortgage loans

down

in a favorable position creditwise. neRnfte+he^anf ?h
beca"se of this factor,
consumer spending is likely to
rise during 1957 by only 4%, com-

soend-%-1 Qfin'•

progresses

tne year progresses,

contract' awards

than $1

^
suxpxisea to see spena
ptons raised above current ex-

IrT
and

should not be surprised

fbe increase

year

—^

Igg^'^^^rci^it^ut- quarter in 1956. And I should not.
i»od, consumer cieau oux-^
•

a
BANK

in the same months.,of

prices are rising -y as a
headed economist I must consider

*—^

the
MEMBER

running almost 10%

than

for!the*

ls far from dead;
during the rest of this
My own estimate is that the rate
veterate optimist
year is likely to be a restrained
of capital spending at the end of
this Point that there is no reason
one, even a moderate increase in the year will be at least as high
lor doubt about the future.
But I consumer
spending can have an as at present, which will mean a
should
like to remind you
that important effect on total output. 1957 total about $5 billion above
the

been

rather than
clearly that business capital T 1 base this conclusion on e'xten- what I think should-occur. I/do
Despite * these favorable condi-*spending wil1 not advancS as?rap-- jsive studies which we have,made not believe any substantial reducj-.
^Respite, xpese ^PfaDie^ cona1-. idiv this vparas in either iqbs or at Prn^nfiai over ,a number of
Q+
idly this year as in either 1955
Prudential
tion in the budget is likely.,
v -1
tl0ns>. however,
^ei:a1^ saies sio
a^ 1956.1 But I think the topping out years—- studies designed .'to esticreeping aneaa at a rarner

much
snarpiy.

has moved even more

sharply upward in recent months.
Federal Government spending in.
the first quarter of this year has

starts
full
19J57 will be very close tp an

year

,44^ 'am
ter o( J95, reached the, enrf-lon^de#.

b^n a good ™^lower.ia.thefaurth

struction contract awards also took
Ji
®

of increase

«te*^hS

BtorcK.

1957

The rise actually

ward.

than in. that'.housing

And capital appro-

Ianu
Janu- Priati°ns by the 1,000 largest man-.

ery since tnen, so tnat job oppor-

tunities seem to
fud growth.tff the

Government
is headed up¬
started in
half of 1956, but the rate
Federal

that

spending

since they are a .seven-year low of 880,000 starts;
^
?teady Jhd per-

y»- y'ear

the first half.

newspapers

knows

houses

! In

mood.

the

■

vear

'(to.*** upwfrdraspLhe C0"tmUing
usual
—

when

1954,

started

has been reading
lately, however,

Anyone who

end

period.

the postwar

less stead¬

the

Federal Govern¬

entirely by the

ment, since state and local expend¬
itures have been rising throughout

merce'-'Wey VbusinessSe?*

te"Txes'™nowS^lTan

fnnLl ratUf atout

,more ti,an seasonailv
fell more than seasonally
tax ary, there has

related to income
do not know.
But

reached

was

below 20%. This
accounted for

relative decline was

higher
1956.
rLent cvp Denartrhent^f rSSr'V.'irt it i<?« mthSrfif And, of course, ; state and local
the' government spending is still, mov¬ .
V ,
cabital spending plans ' indicates, position that housing will not de- ing upward. *„: •
We
have heard >■ a great deal
that businessmen expect to spend cline-further. Yet that is thb poless on plant and equipment ih the'sition l am
lately about " cutting the" ' Eisen¬
going to take. I believe

does not stem from a lack

sumer

ait,

for 1956

This restrained mood of thecon-

the

glowing year-end fore-

payments,

were not as high
half, and in January

rate

national product. By

had fallen

tion

The peak

years.

spending

mid-1956, the government propor¬

has

States

more or

ily for two full

we^stanUaTy'' behtadtt/a^^

characterized

recession

time for pessimism.
seasonal slump into
from

in the first

and^ February , of^ this^ year they;

What

factors

which make

the

declining

In 1952, gov¬
accounted for

demand.

25% of gross

end

'"Canrerto^au'Ston

duelto

awards, in

last half of 1956
as

confident

1 are

contract

been

Factors

question

there

are

economy

tpr
ter

consumers

a^matter "of 'psychology

entirely
or

though

recession.'

Pessimistic
Now

possible dur-

very

are

capital expendi¬
multiplying. Heavy con-

—

ernment

„

officer

government

ernment

residential

is.

federal, state, or
local.
Even though government
spending is thus an important fac¬
tor in the business situation, it is
worth noting that the growth of
the economy in recent years has
been due to an expansion in pri¬
vate demand rather than in gov-"
of

Te rate of housing

construction.

of total purchases

20%

today

S» *S
Another area which has contrib"at^al tba^h^ ^bouhld^ sPecpurchases, and to government "i?, £^*5?
u*e<?
current doubts about the

two

this

contribute
late 1957.

goods and services in the U. S.
are made by some branch,

and equipment. It is not so much throughout the year. Since, howthat businessmen have already cut ever, the current rate of spending
think is likely to be taken by the back on their capital programs as is somewhat below last year, we
major segments of the economy— that they may do so in the future, must put this type of spending
not ignoring the unfavorable fac- During the past two years, the down as a minus factor. Compared
to 1956, inventory purchases will
tors I have mentioned but also not capital boom has Provided the
contribute about fl billion less to
losing sight of other equally im- main driving force behind the
total business activity.
Portant trends ln the economy.
Nofw thf *her.e ar<r s0™e
Let me discuss briefly what is ®™d<0 f ® j
-I G
Change in Housing Decline

econo-

statements predicting various degrees

Almost

thus
fac¬

Spending Rise

Government

...

which has given rise to more doubt v For the economy . as a whole,
and discussion in recent months inventory spending Is likely to
than business spending on plant continue at about current levels

tive U is> therefore, usually a good
idea to try to get as broad a view
of the total ec°nomy as possible.1 wiil try to take this broad view
and discuss the course which I

1957

most

likely to happen to consumer buyominous ing, to business capital and inven-,

businessmen and

have

that

danger of having

and

mists

Mr.

Humphrey

Thursday, May 2,

first three

■

FHA

880.000

bethat

starts

reflect the rise

maximum

contract

rate, nor the lowering in the FHA
down payment minimum,

above

rate;

1956

the

$5 billion
inventory

buying will run about $1 billion
below
last
year;
although the
number of housing starts will be

spend¬
will be very close

somewhat from 1956,

down

ing on homes
to
last year's

total;

consumers,

restrained mood, will
spend
$12 billion
factor.
particularly hard hit bv the genmore, than last year; and govern¬
RiicSim^wni^v
era^ scarcity of funds is that the ment will increase its purchases
;
tory Spending
Federal Government, through the
The inventory position of mdiAdding together
artificial maximums placed on by $6 billion.
these
different segments of the
lndusta\es and businesses FHA and VA contract rates, has economy, we find that total spend¬
differs so widely that it is diffiensured that the supply of money
cult to generalize about this type
ing, and therefore total business
available for these types of mortactivity, is likely to rise in 1957
of spending. It seems to me quite
gages would
be drastically curcltear, however, that inventories tailed. Through these controls, it about $22 billion above the 1956

BORROWINGS

milled

The

reason

why housing has bpen

though in a
nevertheless

•

the economy as a whole do not

constitute

danger at present. In
fact, inventory-sales ratios jn most
lines are unusually good. It is true
a

has
as

lowered housing output just
effectively as had it frozen

total.
The

gross

national

product in

billion.
increase of
that
automobile
inventories, are
though the new 5% maximum on $22 billion in spending, my pre¬
rising more rapidly than had been FHA mortgages is below the free diction for GNP in the full year
expected, but here again we are market Tate, the recent increase 1957 is that it will come very close
at least in a better oosition than
jn this rate will provide at least to $435 billion. This is not one of
in

1956.

believe

there is

little.

doubt that automobile output for
this year can exceed that in 1956

without running into

serious in-

ventory problem.
In the first

quarter of this

year,

wages, or anv other Item of cost,
jn
the
building industry.
Even

partial remedy to repair the leg-

iglative

discrimination w^irh has

existed against housing.

It mtaht

be noted that housing starts under

conventional

loans* which- r«afi«a"t

the free market rate, reached al¬

1956

amounted

$412

Adding the estimated

the

most

ever

shown

remarkable

increases

considering the fact that we
the year

but
started

by cur economy,

with labor and resources
employed it is .a

virtually fully
v^rv

satisfactory

increase.

Volume 185

Number 5634

The Commercial and Financial Chronicle

is committed

increase, in fact, sufficient to
for

account for continued pressure

further

price rises.

The Federal

and

;

the

,v-:

first

month

year,

bond

yields exhibited

and

half

prices

and

markedly dif¬

ferent trend from that which had

characterized the last half of 1956.
Whereas security prices had beep

fallin? and yields rising all during
the latter part of 1956, the current

opened

year

■

>r'i~

with

decided

keep

not»believe

business

and

<•••>«
-

that

restraint.

with

the

the.
will; probably
in

believe

order

will

than

the

fundamental

any

credit

change

Mr. Thoroid, in private life, is
governihg director of A. W. Bain
Sons Limited, Insurance Bro¬
kers.; During the war and since,
he has held important economic
posts in Europe and the United

situation.

Reserve

permit

bank

growth

Federal

economy,*.

crease

price

justifies'

present

moderate

in¬

some

continue

Chicago Bond Club

" But

reserves.

hold

To Hear G. Thoroid

a" the

change in Federal Reserve policy
toward
one
of
positive ease.
I
have already indicated that I be¬

activity which will help us
estimating the trend of bond
prices in the coming months?
the

banks in a negative reserve
States.
position, thus forcing the economy
Reservations should be
made
CHICAGO, 111.—There will be
depend largely on the growtft a luncheon
with F. Girard Schoettler, Wayne
meeting of the Bond
of basic savings.
Hummer & Co.
•
Members may
Club of Chicago, Wednesday, May
lieve business will move forward
avail themselves of the opportu¬
.If my analysis turns out to be
15, 1957 at 12:15 p.m. in the Red
moderately but steadily over thecorrect, the most reasonable esti¬ Lacquer
Room
of
the
Palmer nity to invite guests at a charge
rest of the year.
Although someof $4 per person.
mate for interest rates over the House.
pressure for large price increases
remainder of this year is that they
Guy Frederick Thoroid, C.M.G.,
has abated, the cost of living in¬
will flatten out at about the cur¬ Financial
Elected Director
Advisor, Minister (Eco¬
dex will undoubtedly be higher at
rent level, and that minor move¬ nomic) and Head of the United
J.
Blyth
Taylor,
partner
in
the end of this year than it is now.
ments above or below that level
Kingdom Treasury and Supply Osier & Hammond, Toronto, has
Under
these conditions, Federal will
be
due more to
technical Delegation,
British Embassy, been elected a director of Merrill
Reserve policy should be one of conditions
in
the
bondmarket Washington, will be guest speaker. Petroleums Limited.

mar¬

conclusion

this

general

outlook

ness

Finally,

the

from this forecast of general busi¬

^ <\.Tr

Moderate Restraint to Continue

Reserve

draw any

K-,'*

Now, what about the bond
Can

for from six months

ahead.

year

Money Market
ket?

(2067)

re¬

versal

security quotations. Aaa
corporate bond yields fell from a
cpeak
;to

3.82%
in

January

points

bonds

Government

...

from

3.26%.

tive

Aaa

was

basis

during; this .period,

long-term
yields fell
to

yields

average

municipal

early

3.66% .by. mid-February." The

decline

and,

security
3.45'

average

other

security

and another

words, sensi¬

prices

appeared
growing feeling

the

support

canning cycle begins

pessin ism about the business out¬
look.

The question was

asked

whether

money
were

days

about

were

over

and

headed for

now

market

money

frequently

the

I realize the hazaris of

ing

predict

the

round

future

ing in

the

months

appreciable

again. When the-

•

good earth—seeded

Here

are

and tilled

eas-;

money-market in

ahead.

for

;

and that

over

the;

thisvc6helusionv7^'V,l^^V/'''

Carlos

Campbell
;

Sustaining fight Money Pressures.,
First, the easing in the market
at the beginning of this
year was,
"I believe, a
'temporary situation

than

change

from

in' credit

control

being readied^—as they

held

nenativ?

That

is,

their

excess

in all
^

seasons.

;

Carlos

secretary

the'

reserves

get '

■

conveniently and abundantly at hand

reserve

borrowings :;at

homes

.our

preserved at. their .nutritional' peak, V.

policy.

position averaging about $300 mil¬
lion during the last half of 1956.
Fed exceeded their

to it that

see

are

areevery year

these -foods. Get them in

banks, as the ac¬
chart
reveals,
had

companying

the "U.S.A. canneries

at this time—to

The commercial

been

dietary needs.

;

deliberate

our

| .And

across

man,

begins to yield

•

/ ?

arising more from a miscalcula¬
tion; or at least an over-cautious¬
ness, cn the part of the; Federal
Reserve

Foods vital to

and slow-ripened bysun and rain—-once
J

-•y

rea-;

vested produce. As a result,

Campbell,! executive

National

of the

fruits and

Canners

by about $300 million*

In January
however, they found

themselves for

positive free
time

since

yields

August,

that

1955.

Under
not

sensitive

should

have

important

sur-

thing

however, is that the

have been

Federal

Re¬

February
again

the

been

banks

pushed

Examples?

$400 million negative

once

reserve

po¬

-'a

decline in

funds.

The

curity

issues

matter of

iest

ever

demand

continued

for

the

ago.

make

months

grow.

larger

picking,

the

velopment of

since

Public security offerings

is assured

The

iron

far

life

exceed

the

companies,

cash

and

for

flow

the

has

1810.
1

the

long

of produce. Thus

the

industry

is made usable,

with

tin

canister"
was

intro¬

growing regions,

picked,

processed

sealed

before

harmful

cans

and

plate

many

uses

our

for

the

major

canning

Steel.

Our

work

one

steels made by National
research

and

closely with

in many fields to

production

our

customers

provide steels for the

better products of American industry.
For at National Steel it is
stant

our

con¬

goal to produce still better and

better steel of the

quality and in the

that humble beginning,

From

quantity wanted, at the lowest
sible cost to

our

crops can

pos¬

customers.

canning industry has developed

prodigiously.

Today

the

"tin"

can
SEVEN

providesj us with food in immense
variety—a balanced diet of our choice

GREAT

DIVISIONS

WELDEI) INTO ONE COMPLETE

STEEL-MA KING

STRUCTURE

round.

Great Lakes Steel Cor|»oration

•

Weirton

"tin"

Manna Iron Ore Company •

able,

easy

can—sanitary,

unbreak¬

Corporation

•

National Steel

The llanna Furnace

National Mines Corporation

exposure

to air

can

;

it
S

1
1

N
i-i?

to store and to keep—is

Ujt
in

hermetically

lessen the nutritional value of the har¬

Steel Company • Stran-Steel Corporation •

National's Role

swiftly and expertly

i J
i 1;

the year

Products Company •

Through canneries located in the
heart of

loans
of

"tin

Peter Durand in England in

The

Applications

"Father

tin

Company is

Naturally, tin plate is just
the

waste in the field is eliminated.

the

structure.

the

first

coated

duced by

processing is streamlined and costly

general guide, there is ;
indication of a slackening in
the need for capital
funds, and no
sign of a weakening in the rate

the

developing the first

quarter of 1956.

and

prize from Napoleon

cans.

total). And

can.

maximum of the crop

taken

dipped

inventory.

won a

industry alone

half of this

industry.

primitive method for preserving food

ears,

(the food
over

supplier of both electrolytic and hot-

what¬

back in 1809 for

Canning,"

bring

pea,

stable market and

Appert,

it takes each year to

cans

are

than

cherry,

corn

men

corn

in the first quarter of 1957 totaled
about 75% higher than in the first

Third, if the experience of
life
insurance industry can

plate

the myriad products packed in

cans

well

the

Weirton Steel

price risk,

the

you

make

still

pear,

regardless

uniformity of quality

in various species

ear

billion

dependable cash income."
Nicolas

cross-

pioneered—is bringing about the de¬

has

peach,

Vast quantities of tin

needed

canners

contracted for—the total out¬

Yes,

grower
a

peeling and

canning industry

up every

when yields

year

expectations,

They take

economically

And to

vintage

was even

deeper and

tastier—and

Mr".

says

supplied by individual

are

bean, tomato,

stringless

sweet

buy

put.

(some¬

"snap bean"
a

Campbell,

actually about 99% steel, tin coated
for corrosion resistance.
;

farmers under contract at fixed prices.

ever, as

processing machinery, too—in which

this

money

Mechanized

se¬

was,

And

bean

Commercially canned,

far exceed
i

••

And hybrid

smaller cob,

practicable to

of the heav¬

one

crops

"Even in

for

new

January

fact,

experienced.

insistent

January.

the demand

volume

green

the

succulent kernels and

'■

Second, the January decline in
certainly did not stem
a

generation

with

money rates

from

breeding today gives

since in many of the yield

indexes.

The

bean, far less fibrous than it

sition.
As
might
be
expected,
sensitive security yields ceased to
fall and there has been some re¬
covery

"Stringless"

"string bean") is today

$300-

V 7;

times known

mid-

had

into

did not permit this condition
exist for very long.

serve

stepped

greatly refined, made

Green Bean Now

note,

;major role,

And vegetable strains

appetizing."

reserve

been

have

yields

prodigiously.

the

"Through research in which the \

crop
.

security

reflected

temporary easing in bank
positions.
"
The

too.

canning industry plays

for the first

canned

rated high

are

By far the major portion of all

hard to match for appetite appeal,

short period with

reserves

these circumstances it is

prising

are

vegetables

for taste and vitamin values.

Association, points out, canned foods

-■
'

of this
year;

.....

—It's That Season

•

there will

sons

not

nutritional peak

Washington, D:,C.

•

rates, but I see no
why I should not get out
on a limb on this.
My answer to.
this question is that the
days of
money are

year

move¬

ment of interest

tight

the

are met

attempt-<

.reason
5

always at

—

food needs

our

period of

ease. >

Through tin plate

tight

NATIONAL STEEL
GRANT

BUILDING

CORPORATION
W.W

PITTSBURGH, PA.

t>5

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1965 1966 1966 1967 1967 1968 1968 1969 1969

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15, 15, 15,
15, 15, Nov. 15, Nov. 15, Nov. 15,

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Amount

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May

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May

$1,59 0 1,625,0 1,645,0 1,670 1,70,0 1,725,0 1,750, 0 1,75,0 1,80,0

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btooth

as
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May
Dated

Prinacnipdal

holder,
15)bap y le

York Central
the

BNaationnkal denomiaton

Stoare certain
the

Inter st

and

Inter st

New

May

The

Legal

Volume 185

Number~5634

.The Commercial andFinancial Qhfonlcle

(2669).

confidence that they would be ef-, perienced than resort to govern¬
But worst of f ment intervention,

times

the unreasonable demands of his

all,

labor

down.

fective in peacetime.

have

lems

so many

created

when

other prob¬
government

intervenes, not to speak of the red
and

tape

the

complexities

com¬

pounded with confusion. For
I r would

part,

chances
tion

with

that

rather

take

have

thus

infla¬

the

far

ex¬

terested

only
group
which
can
really do anything about the situ¬
ation is the business community.
Obviously it is no easy job, and
indeed may be insoluble. The con¬
tinued squeeze on profits will lead
to stronger employer resistance to
labor

costs.

unions.

But

None

now—and will

in¬

ism

use

substitute—

simple to accept
Loss

shut¬

of revenue

^nd. cus¬
being a dead hero- tomers through a strike may be
costly. Customers may more serious than the squeeze on
be more understanding these days profit's.
" : . :
" ;
: - ;
when their supplier is afflicted
One obvious topi is more com¬
plete communications with em¬
with a strike, but that is small
ployees to explain the facts of life.
consolation. And if you are selling
Employees don't want inflation
to the general public which wants
any more than we do, so we have
a
product off the shelves, right a job to do in explaining to them

Up to Business
The

increased

businessman cannot resist

strikes

the
of

some¬

economics

f
>

•'*

alone; it hasn't in
*
1r*...h' ?rV

!{ «J V'-

are

Here
of

munications

first have

must

in
•

»n
•

•

—i

-H

r*
N

employees

©■»

i-r

»n

will"not

i—t

i—*

CO
.

£ Z

o
©

in
r*

■—<

■"

V-

•

■

•

O
A

•w

*-1

output per manhour, just as he is
willing to niake capital invest-^
ments for long-term projects. Iii

•

that way, employees will come to
realize that they will
enjoy a

©'

9
©4

a
U

©«
3d

gradual increase in their rates of
pay and in fringe benefits, that
improvements need not be
squeezed out of business by large
anci powerful labor unions.
This might soften demands; ob¬
viously it will not eliminate them,

these

-©
3

■■!

•

^
cf ci

national

C/3
'

■3

©«
Vx

for

-2
o

If)

V©

•

Tjl

m
©

©' ©

rt!
©

g,
>

>*
«

»v

JSl

n
w

•2 ■£:}

<30

iSl

H
•

*
.

-3

•

©.

"H
.

least

first Smithers partner.
C. Francis Smithers, now a gen¬
eral partner, and Austin L. Smith¬

—<

>»

u
cn

3
Cu

-3
-3

3
y

tit

H
•M

—

©y

G
a

«
o

C
3
w

-a:

•

S ^

"tj

«3

•£

'—I

"S 5 "2
•

T~>

O M

t
55

ard

©a

-a
©

oa
3

3
y

—

"3
•3

y
y

•a
-3

fol¬

1911

the

Stand¬

73
• "■<

-©
3

-3

fractional

-as

8
8

ers

©a

©^

3
8

«•

-a

.3 ©

co o
■«t

3
-3

Smithers firm

leaders

Wall

I—

H-J

r-<

New

stockhold¬

subsidiary

companies
from the

separated

Jersey company.

acquired its New York
Exchange membership, in

Stock

It is also

1880.

^4
0

-f

American
ent

Stock

partners,

Messrs.

£
^-h

the

interests

were

which

the
the

markets for
represented

The firm
3

—<

the

one

making
"scrip"
which

©y

■M
*

With the break-up

case.

old Standard Oil Company

Street

•00

*"2?

•3

began

decree

of New Jersey, the
was

3
u<

-3

known

•

Oil

of the

*3 ®

interest

dissolution

well

been

lowing the U. S. Supreme Court's

\S
3

also

oil and other extractive industries.

invest¬

has

This

-3

the

for its active connection with the

fcx

©«

C/2

3 .©

©a

-8

JS
(U

firm
®
:

•3

-g

&
£

•

-©

Street, and for

years it has been increas¬
ingly active in corporate security
underwritings and in the purchase
and distribution of municipal and
other tax-exempt securities.
For nearly half a century the

■M

*
t:

with

identified

many

sT ^

ment field in Wall

V
>.

been

-i(S

«-4
G

■

in the firm.

©a

C«
>-l

±
"

03
©

represent
the family
Brinkley Smithers,
nephew of F. S. Smithers, is also
a limited partner.
The
Smithers
firm
has
long

©a

direct descendant of llie

one

ers, a limited partner,
the third generation of

©y

as: t
c-

'Si
&

§ •§

•

sJ
'•Si

"8 <

and since then the firm has
always had among its partners at
ner,

•I

©y

Centenary

»3

-3

***

-k,

1/)

FC*

-5>

-S

©y

3
y

>•
3

"St
£

5
aq

©a

•ofl
•

c/a

fcn
y

-X

•

c«

3
y

busi¬

one.

■

marked the hundredth
anniversary
of the
investment
banking firm of F. S. Smithers &
Co., 1 Wall Street, New York City.
Altnough
organized
under 'the
name or Charles Unger & Co., it
had operated only a short lime
when the original F. S. Smithers
was admitted
as a general part¬

3
-3

■

Observes
May

3
«w|

y
•

"CD

handle this

can
■J

difficult

confident

F. S. Smithers Go.

-1-

'J)

3
y

G
©

v' H

§ ^

nessmen

©y
u

•w

for

inflation

illusory. Businessmen

problems;

|8 I

4-»

■

and

have handled much

u
a

©.©©©_

-£

even

-S

in their ef¬

cease

government control or depend¬
ence on "labor statesmanship" are

©y

rS
y

ZS.Z

©y

get

alternatives

the

"op

will not

themselves and their families. But

-r

-O

-as

-4-t

•N

>-•

men

forts

-2
3

• pH

•3S.5
3U ^

,aj
^

0Q?"y

•

50
3 0-3
3

long-term commit¬
improve
wages
and
at least as fast as the
long-term • increase
in

benefits,

h-3

businessman

some

ments

©.

-PM

:•

o
o

©■;

„

>.
u

American

make

-3
y
' ©

be effec¬

expects employees to temporize
in their demands, he may have to

i—i

-3"

•

their confidence
that management is sincerely in¬
terested
in
their
security- and
their improved standard of living.

"3
o«

com¬

For

attention

and

level.

©»

©«

U
©

K
©i

©y

N—

ea::

•

-s

*
3

{

imply to employees that
improvements in their standard
of living will be shut off entirely
or that they must await these im¬
provements through the medium
of
a
gradually declining price

■M

effective

the

Communications

enter, the over-all field

industrial relations.

tive if

•

" vw'

Suggests Industrial Relations^

work

the past,
v.

of. inflation.. But. this
with explanation^

causes

will not

member of the

Exchange. Pres¬

Smithers

addition
are:

the

Arthur

Lawrence, Peter J. Murphy, Ham¬
ilton
D.
Schwarz,
Walter
W.
Cooper,
Thomas

Bary,

Cleveland S. White,
Marquette de

C. Cherry,

Donald

Charles F., Zeltner.,

Macurda

and

Commercial and Financial Chronicle

The

first

Continued from first page

We See It

not most of the

value, and reserve against
of currency—for ex¬
ample, as the reserve held by the
United
States
Treasury
against
other forms

The "balance of power" today is largely
the Kremlin and its satellites and allies and

terest. Britain and France

Not
but

disposition to take action in
it has no direct national in¬

much is

now

heard about "balance of

Middle East. The Kremlin from time to time meddles in

of the Kremlin is deterring some other

power

this, that and the other dispute or conflict in one way or

Treasury, is, or should be,
ined
by
the
government
through
the
purchase ? of
the

and
o

is little doubt that the

deter the Kremlin. And there

countries

they would like to take in the Middle East.
Actually, the world seems to be about where it has been
for a long time in these matters. It is not a particularly
heartening fact but we should do well to face it.

the surface
fact is that
the purpose is usually to gain influence and to make
trouble for capitalist nations.

needed silver in the world market.

from action

another—at times when it would appear on
that nothing was to be gained by it, but the

weight

unilateral intervention

specified by law if chaos is to be
avoided.
For example, the silver

by the United States of

far

standard

becorpes

of millions of
a

even more
men

and

women

resources.

aroused
former

Racial

The

undeveloped

other

national

ambitions

naturally

are

by such facts — as, of course, is the desire of
imperialist nations to continue their hold on to

such lands.

the

and

often

geographical location of

areas

some of
renders them of vital interest to

advanced

peoples.

Through the

too, private capital has entered various areas, and
naturally does not wish to be expelled or hurt by revolu¬
tionary adventures of native peoples.

years,

How is

ful

world situation like this

to be

dealt with
power¬

the shrewdest? That is the real

question before the
today. Through the ages matters were for the most
part left to work themselves out. Various interests ma¬

world

neuvered and sometimes

fought. Little by little there was
a sort of
crystallization of the situation, which however
did not always survive the
passage of long periods of time.
.Something called "balance of power" arose, and was em¬
ployed after a fashion to keep the peace. That is to say
nations, the large and powerful nations, grouped them¬
selves in such

a
way that no one of them
of them could be
regarded as

combination

having dominance over the
others. This was supposed to render it more
profitable to
negotiate than to fight.

/ •
} (
:
\v.-: s;:i--■■
Resort to Devaluation "
'

rnmnarrd

eold

with

This system broke down when World War I fell
upon
The old alliances and the like faded. Nations
had be¬

dolstic
.

has

been

their

increase

number

units of gold
by reducing the size of the standard unit (devaluation). This is a

case

standard

departing from the fixity
unit; and the usestandard is impaired

Jf a
normally uses 500
million gallons of water per day
faces
an
abnormal
scarcity
of
water because of lack of rainfall,
it could provide itself with the
which

town

normal

number of gallons by

storehouse of value, as a reserve;
against non-silver currency, as a
medium of exchange, according
their, desires,

in 'the2/form

re-

be expected to obtain and to

may

hold

determined

by its ability
exchange its goods
gold. Those are

considerations

rency.

exchange

•

in countries on

Proper
of

(1)
silver

which

XJiT'J
l,nnlv
™

deter-

supply

and

monetary silver
Functions

world-wide

n«tinn

silver.

second

acceptability

silver

dollars

value
vaiue

and
ana

for

the
ine

bullion

their

supply
supply

of
CI

these
mese

supply of silver dol-

Vliv.xx

such coin eoujd be sold profitably
for their bullion value.-

/--

xf^tti0nal Silver cvins-■ are
brm^d^y th^meeds'6f "lh|-

ous

■gterm:as

.®Jfe
3?
the .offering; of,

PeoP/e
mamfested by

£^3*
(4) Prpper functions and supply
<
of minor coin •. X
<
-

functions cf minor
co{n. Minor
coins', such as our
5_Cent and 1-cent pieces, facilitate
monetary transactions involving
relatively small values. ' Specif ically, the proper functions of such
money are (1) to act as media of
exchange, (2) to serve as a storebouse of value, and (3) to con(l)

Proper

stitute
banks

(3)

reserve

Proper

non-member

supplies

coins. The proper

coins

against deposits,

are

minor

supplies of these

determined, ordinarily,

by the demands of the people for
them as measured by the offerings
0f

other

currency

exchange,

Only in rare instances is the bullion value of the metal used in

such coins a factor affecting their
supply since the market value of
the material employed in them is
ordinarily far below the face value
of these coins,
(5)

Proper functions and supply
of representative paper money

(gold and silver certificates)

(1) Proper functions of gold and
silver certificates.
These certifi¬
cates

are

ceipts for

in nature warehouse
a

re¬

deposit with the United

lnnrnnrtfpnPcl
mnnSil
hvlhp
rZif

and

States Treasury.of gold or silver
equal in monetary value to the
number of dollars stated on these
fn rp" certificates- They are issued as a
111 re~ matter of convenience to those
nf

outlined
is

silver

wb0 prefer redeemable certificates
gold to the bulkier and less convenient
employed gold or silver held as 100% rethe proper serve against such paper money.
on

a
secondary role,
supply is that which meets the
in needs of the people for silver coin
a as a medium of exchange, store-

Since

gold

.fnii

standard

specx 10 goia.
When a nation

functions

ranks

supply of gold in

nation.

(3)

o{J:

for

an
opportunity to replace some of the older and now fad¬
ing countries of the old world. He was crushed but the
fighting left most of the European countries far from the

would be freely exchangeable for,
or redeemable in, standard silver
coin or bullion at face value in
order to make all types of currency legally issued equal in value
to the standard silver unit in so
far as they perform their various
monetary
functions.
(6) As a
standard money metal, it would
perform the function of ultimate
reserve against all non-silver cur-

gold standard,
the size of the gallon silver money performs other funcSimilarly, our Federal tions than those of a standard
debt could be paid off in gold
money metal. lt may perform the
dollars if the size of each dollar functions
(1) of a convenient and
were reduced sufficiently to make
relatively
cheap
substitute
for
our good stock equal in dollars to
gold as a medium of' exchange,
this debt.
(2) of a storehouse of value, and
Once a nation assigns a speci(3) 0f a reserve, but not the ultified number of grains of gold to
mate reserve, against silver cerits standard gold unit, the fixity tificates and
6th,er forms of curof that unit should not be altered,
rency other than gold or silver.
The supply of gold which a nation
(2) Pr
j
of monetary

the

situation

media

substitute

measure.

mine the proper

the

ducing

could

the

monetary

come

ill their

silver

services

saw

69.29

market

unwillingness of people ers in accordance with their deto exchange a sufficient volume sires.
But
since
silver ranks
and value of goods and services second to gold as a monetary comto obtain it at a rate which re- modity in international exchanges,
duces its degree of scarcity.
A it would tend to pass at the marcommon practice of governments,
ket value of silver as expressed
particularly since World War I, in terms of gold. (5) All varieties

ability

desire

like swept round the world. Hitler

the

The proper

supply comes from mining coin or bullion. (4) Standard silver
or
importation.
importation, r An / increased coin and bullion would be freely
scarcity of gold arises from in- imported or exported[ by its own-

and

exhausted, and peoples formerly under their thumbs
be more effective in
seeking their interests. A
revolution in human
thinking about colonialism and the

The

and

us.

second-rate
second—rate

a
a

ating with & £o\d;
redeemable currency, and 'to the ver Com of the same fineness and
extent they^are disced to. W- value^to permit silver tp serve the
change their> goods, services, ; and people as a standard of value, as

to the extent it is not fixed.

the basis of the largest share to the most

would

coin

ounce.

per

SS™-could be expected t0 eon"

fulness of

What to Do?

except

cases,

mere

per

SieTouidbS t'otK

?£r*r LS"^^trftbTnUall ther
they are accustomed to it. In all
such

-othet currency for gold at,a rate
that will effect the exchange.

them in
areas

into

it
cents

$tand|rrd;;and,w^^-Ipt^e^geaDlei.foip sil-

were

long, long time ruled by other peoples foreign to
race, religion and mores. Some of these colonial
are
now found to be
enormously rich in natural

60 cents

say,

hundreds

inhabit lands which

at,

the profit (sometimesxalled
seigniorage) derived by convert-

a'product

yes

of fine silver coins

monetary transactions. J*is, therefore, determined by
»*rs
A aiU""
™™,id
the needs of the people as ex(1)
ard
gojd coin or bullion1; or by the following characteristics
pressedby their willingness to
borrowing it against a promise to The standard money unit would change other currency for silver
repay at some future "date.;
^
be defined in/terms, of grains and
by the market value
./
.Since gold' is the most univer- degree of fin^pess of the silver 0f silver 'bullion, standard or fine,
sally marketable of all mShdtgry employed. (2) Silver of standardy;Vgin(g two 50-cent pieces, or four
/materials, it, teri&s V go;>here fineness would be coined 'freely quarters; Gr ten dimes are 6.47%
greatest value** .is/,atta^hec( ttf'^it. - mtc) pnoney of'.convenient size to ljghter (385.8 grains, 9/10 fine)
To hold it, therefore, rdquipes that enable it to perform the functions than the silver dollar, the market
its use and value not* be Abused, of a piedilim of exchange and .a •
-ce f0r5 fine
silver-must
rise
People, /individually %or eoll^c- storehouse of- value in so far as aboVe $1 38 cents per fine ounce
tively, can "obtain^ all thl gOld people may choose to employ it before t^e bullion value of frac: that their goods f nd Services can
forthese. purposes., (3) Silver tiohal sjjVer coins exceeds theirf
t command, provided they are oner- bullion of/standard fineness; would,
face ;PrJ nominal value and before

colonialism and the state of af¬

complex. Millions,

market

obtains^'by8 an^exch'ange TZ

many o&
than confining them in a status
than historical accident., /t*
are

ounce

As
a
Xmnlov~ a coW standard price for silver were above $1.2929
would afford to employ a gold/tamiara
fhA
tendency of

fairs

for

known

the

performs

metal,, it

"agression," seems to

Add to all this certain conditions which
now

money

standard

to suggest is that a good many
endeavoring to banish war have often
been laboring under serious misconceptions of the prob¬
lems by which they were faced. The world is made up of
numerous
groups or peoples with interests of their own
often conflicting with those of another. These nations are
often full of prejudices, suspicions and ill-will toward one
another. All of them and their interests have
long histories
which tend .to set one against the other. Applied to such a
situation the concept of justice often
becpmes more than

of what is

functions,
(f)
metal, it

money

rencv

seems

which is hardly

against all non-gold cur-

reserve

idealists and others

quo

unit, in

gold

goods and services for the stand-

Banishment o$

$1.2929 since the \ounce
(Troy) weighs 480 grains. If the
government' purchases silver in

they perform their various

monetary

from individual nations.

nothing

standard

the

merely used that organization as a means with
policy or program effective, and
the Administration soon found it necessary to initiate an
"Eisenhower doctrine" in the Middle East and to get an
approval of it from Congress. Earlier the so-called Tru¬
man doctrine and the Marshall Plan were
policies of the
United States, not of the United Nations. Issues are de¬
bated after a fashion in the United Nations, but for the
most part action when taken has come as it always has

elusive.

ounce,

States has

them to be

States

into

the

which to make its Qwn

all this

United

the

Thus

pains has been taken by the United States
get the Egyptian affair before the United Nations and
keep it there. The fact is, though, that even the United

What

weight of 412.5 grains,
fine, or 371.25 grains fine.

given

from page 3

America. Much

fineness

and

legally-issued silver coins must be

9/10

Continued

Of course, the Korean intervention was a United Na¬
tions affair only in a strictly Pickwickian sense. In reality
was

Silver Coinage

Profit From
The

dollar

Spheres of Interest

Reserve Sys¬

change of other currency for silver
coin; and the supply needed to
accommodate the public,
banks,

preachments
about providing for peace in the years to come turn about
this concept—of having at our disposal power sufficient

ready enough (though horribly
incompetent and irresolute) to take forceful action in the

banks

Federal

the

tem against their deposits. These
needs
are
revealpd by the ex¬

Nearly all the programs and nearly all the

Korean situation, but were

certificates

outside

power,"

essentially this matching of might with might
seems at this time to keep war away from the world.

that

little concerned with the

were

silver

the United States and its friends.

great nations. Among all tjhese only the

United States has shown any
areas or in
quarrels in which

Thursday, May 2, 1957

house of

been. Japan also fell

countries that they had

rate

by the wayside.
that between

■As

(2070)

Since

gold

and

silver

money

be issued properly only by a
nation's central government, gold
may

Volume

and

185

silver

issued

They

Number 5634

certificates

only by that

are

properly
The

The Commercial and Financial Chronicle

should

the
c0""I^^^nT:reserve''and ■.TOmme^taf'papw'by
^ Federal Reserve
the secondary
^ fJr posted collateral with their
of the United
the redemption of the:se
Sta^^as y
tive Federal Reserve Agents,
above

may

notes p

proper

functions

«Y*de add:itio
adequate. secu

gold

certificates, when

tion employs

na-

reserve

banks

lieu of deposits to the extent u
their customers so desire and can
^

(2)

Proper supply of gold and
silver certificates. The
proper supJVI." these
ply of
certificates is deteri/AlVOV

UiiVW

VCO

command them. (0)
They. se
a
storehouse of value,
•"T'O';
(c)

ViVrVVri.

mined

.-14-^1
by the supply of monetary
gold and silver and by the desire

people to
certificates for
silver.

substitute

functions

fiduciary

and

reserves
"
of

paper

"
the

—1
Federal

(2)

Proper

T3~

Re-

supply

Federal

From 1914 to

the general principle

1932,

involved

hoarding and other cash demahds
during that period of business re¬
because

paper

was

not

was

against

Federal

must be held

available

purpose.

serve

——

ance

such

example,

Reserve

notes

exclusively for that
obtain

Federal

Reserve

serve

notes in the absence of eli¬

gible

commercial

gold

the Re¬
banks utilized their surplus
with the consequence that
paper,

the percentage of gold held against

1930'19^' ag

Feb.

27,

notes

United

eral

security for Federal Reserve

Although that Amendment wasp
designed
measure

and

was

an
to

other

money
.silver

every

expiration

date

Continued

were

serve

with

behind

^United

States

originally fiat

(1862-1878)

money

specific

them.

States'.v

gov¬

issue any pa¬
gold and

than

certificate?. ~ - United

,jiotes

re-,-■•■re¬
'
^

1900 Qthe

Treasury.^was-ire-v^^J

^quired to place $150,000,000 of gold:

^behind

rt h

e r

$346,681^016 United
JStates
notes
.outstanding? ^since^v/'.-.then, the reserve has increased
to;"r^
...

•

^156,030,431-in .gold,

of which i

some

may

used

retire- the
-

;.ap£:£

proximately $1,000,000 of,Sherman,.it
'..Treasury notes of 1890 which;are
i'/being .retired and which are

•

;

re^V'^h'V.;,!'

,deemable in either gold
«

silver.

By ' the Act; of May '12,'
.Congress authorized the President
increase: the 'supply- of United ' ^
States^notes to $3 billion; but, for^J^

.V-■*:'

tuhatelyfor this country, he never *;*,
;
used that,
authority..;, The,
passage\»jJ.

of that: Act illustrates the

dangers/t

-..inherent in the theory that a gov;.
,,ernment may properly issue fidu- *
ciary paper Money;. Today, under; i
-//our restricted international gold.
bullion standard, with

>
-

oply-irre-X'A

deemable -currencv

available

/d0^.;'^>-;

.mestically, the; gold held against' T *;r
those notes is frozen in the Treas- --

'v.

jury.and cannot be
.the

United

employed.,Were

States

full

gold

standard

and

deemable

domestically, the func¬

tions

which

the! currency

United

would perform

lowing,

with

States

would

the

re¬

TELEPHONE

TO SCHOOL.
From September
of department heads and assistant
vice presidents from various
telephone companies attend Bell
System Executive Conferences. Actual business problems are

notes

be the fol¬

word

"proper"

omitted.

(1)

Functions

of United States
redeemable, (a) Such

notes when

fiduciary

money
questionable means
a

provides

(d)

storehouse

against

serves

deposits

(2)

Proper
notes.

not

and

the

supply
by

present

types

Bell System training programs to

should

government,

supply

executive skills and stature

these
benefits

The gold
should be used

a reserve
against a correspond¬
ing supply of gold certificates.

bring

build
many

telephone customers and the

company, as

well

telephone people.

for

hundred

fi¬

years, grow men."
So runs an old
proverb. And so runs the thinking of
the Bell System.

a minimum
reserve of gold
certificates of 25%, the uncovered

There is nothing more important to

(B) Federal Reserve notes

duciary money. These notes are
by Federal Reserve banks

issued

against

portion of the notes
being secured
by United States securities and
commercial

paper

discounted

the Reserve banks. If
these notes
be redeemed or
retired by
the Reserve

banks,

they become
a
liability of the United States
Treasury. The fractional reserve
employed against them rests
principle of probability

demands for

redemption,

provided

pioneered new methods for the
training of executives at various stages
of their careers. They range from de¬
velopment courses for newly appointed

ing and developing of capable people

The Bell
among

System has long been
the leaders in this field and it

courses at

extensive liberal
leading universities.

arts

The Bell

forces, public and employee relations,
finance and the administrative skills

needed for effective
a

leadership. Such
background becomes more necessary
the business grows.
The

there

plan has worked

Specific problems in business are
But the larger
objective is a better understanding of

of executive

discussed and solved.

the broad field

Working together to bring people together
-

well that
Executive

put in the position of a general officer
of a telephone company and emphasis

of economics,

social

are

now

Conferences, where each participant is

is put on current

agement

and anticipated
problems.

From all of this

...

man¬

comes a
broadening
ability and stature for the
needs of today .and a continuing flow
of able leaders for the years ahead.

sound

Advanced

System Executive Confer¬
ence is an
interesting example of one
type of program. For four weeks, groups
of telephone executives from different
parts of the country live together, study
together and debate together.

upon

additional
available to meet pos-

good telephone service—and to the
future of the business—than the find¬
for management positions.

cannot

the

has

managers to

"If you want a
crop

Federal Reserve Note's
Advent

are

labor relations, business management, etc.

United

notes

cur¬

notes should be retired.
held behind them

means

top

reserve

various

Fuch

issued

principle

Teachers and lecturers
telephone men, professors from a number of leading
colleges, and experts in the broad fields of economics, finance,,
are

Training for Telephone Management

value.

Treasury

of banks.

States

discussed and solved in small groups.

use

Since

rency,

groups

the

of economiz¬
of gold, (b) It serves
medium of exchange, (c) It

ing in the
as

provides

EXECUTIVES

June, different

BELL TELEPHONE

SYSTEM

expired

March 3, 1933, it was extended

notes

per

emergency

nave

money

to be to the effect that

States

notes.

provide examples.
(A) United States notes as
fidu¬
ciary money. Evidence and lo^ie

-seem

Federal

enable

use

This type of paper
money con¬
sists of that not
fully covered by
a reserve of
gold and silver. OutUnited States notes < and Federal

ernment should not

was

Government obligations as collate

those notes reached unprecedented

early in 1932, there was

1932,

Reserve banks to

Re¬

that of 1929-1933. For

during

Federal

lz2%.

lack

Reserve Agent as security, above
minimum
reserve
requirements,

securRy for such notes and because kroner
pr0per provisions had not
been made to meet a widespread
'

to*

and

eral Reserve bank with its Federal

correct; but difficulties arose
during the sharp business reces1sion • following 1929 when commercial

heights in 1930-1931. For example,
Jan. 31, 1931, the ratio of gold

i
depression, not only
(a) The Glass-Steagall Amendof provision for ment.
To
free the
excess
gold
the use of emergency collateral in above
the requirement for reserve
the absence of normally eligible
and to permit an
expansion of
commercial and other short-term, Federal
Reserve
notes
to
meet
self-liquidating paper but because emergency demands for them,
th$
of a ruling by the Federal Reserve
Glass-Steagall Amendment to the
Board that gold placed by a Fed¬
'Federal Reserve Act was enacted

cession

was

by which to ex¬
notes to
meet
the

these

and destructive economic disturb-

in
oanKs
in, banks

System.

serve

supply

Reserue notes.

Proper

Reserve

serve

members

not

gold

;

—'

♦

may

monetary gold and
certificates
for
monetary

silver

r».r

the

(6)

various types of

against non-gold or noncurrency (notes or deposits),

silver

P
l y.

prescribed res

redeemable currency, are to serve
as
(a); a .medium^ of
exchange,
.(b) a storehouse of
value, and

(c)

along with the required minimum
^ the !gold reserve (then 40%), to ob-

ta_n
tbese notes, and that they
should contract under the opera(I) Proper functions of te
0pp0Site forces,
Reserve notes, (a) Tneyare
r■
signed as a medium of1exchange,
Emergency Made Permanent
and, as such, they enable the
efundamentally, that principle
serve
banks to provide notes

gold standard and

pand

was
re-

available

means

issue.

and silver

reservet

banks

paper

government

minimum

27.

(2071)

sible

government,

tjie only variety of

which

money

and,

page

2£

(2072)

The Commercial and Financial Chronicle

Continued

from

page

II
u
r.epresents .an effort of
Durrha^hi^ thes£.banks to provide a smoothpower of the
people's curienl v ™°rklng ™echanism as fiscal
fends to decline The value of fhdr agT?tS °f ^6 gov™nt"
nn^8S- KW/"*- government the Rwe^ebankTIo finance the
With such \ reserve banks to
power
its hands, a
lationshins

outside

Proper Functions and Supply of
Our Different Kinds of Currency
June

12,

1945,

The

date

♦u

1932,

27,

marKM
marked

The expansion and contrac-

Federal

Reserve

notes—

expansion

Thursday, May 2,

rency, or the improper use

1957

of a

sound currency, which can act as
an important causal factor in re-

gov?rnment; their basic function

some
PandedPurpose—for example, proto rais^ prices the exgram can be effective only if the
™rrf:™yJl
°l

noies
notes

snou.n
should

additions to the nation's

monetary stock of gold and silver
As people expand their activities

wish to utilize credit

may

in
the volume of these notes—
have been hnked more
closely to

convenient

gold and government debt than to

for these

peo-

per money —anci crecut

vvhlch 1S automatically self-liqui-

s andard metallic money.
(7) Proper functions and
deposit

sunniv

in Fed-

currency

era! Reserve and commercial

Credit extended

banks

is sound if the

purposes

command the wealth of

bating and redeemable in the

facilitating

means

their activities.

can

awc
arise

nm
not

fnoo has genend tendency since in fabrication and exchange, they
i?e been that of

J932

The

Ple and easily become their mas- IS' instead' to maintain a sound
Vmm 5h«
^*ud
anse. ter. Its capacity to manufacture currency — the integrity of the
° e government. such purchasing power is unlim- dollar—-for the people of this naSound Money Provides Ample
itedor power to ruin a neonle
as is, consequently, its capac- °n* ^ sound currency does not
Credit
ity
refer to a restively stable index

collateral against nom

mi.

them.

t.1011

Feb.

di«?turheH^iK

spect to prices. ,
A Contradiction in Terms r
- " the s.uPPly <* currency is

to
dc lesserve
ceased to be'tcserve
an
-■■■
'
"
an emergency
provision anH
given an indefinite life in the Act.
vcascu

are

force

tr JLSL Lfp - pi7""
7
matnrec* 916 lUal
; .' ;
are trie,controlling}conslderat^ons which should deter™mG
'vJlum®:d deposit curJ?n<;y in
Federal Reserve

to be manipulated to accomplish

ti
cred;f whGn it

tbe sense °f manipulation,

„

sound currency is fundamentally
a contradiction in terms. A sound
currency is essentially a

passive

agent; it could not be manipulated
and remain a sound currency.

frequently advanced
the effect that our

-/of

isinp«n£Gr ari9inS from transactions which give rise to it
(1 \ Proper functions of Federal
r.
.
The theory
for discount hv th« Reserve banks, P/ovjde the wealth the debt ma- Reserve deposits. These consist of •
ehfiible liquidate it when with which to service (a)
Proper functions of deposits these days to
K
t c rf a
medium of px- V1 col,nmercial banks. The proper supply of currency should be inIIow Should Government Obtain
lures' and if the credit, in the change for member banks and {lmctl°ns of demand deposits are creased at a yearly rate of, say,
Money?
loi™°* Wf ™»ey or bank de- XI^agencieTi^luding the Fed- *1 serve ,<*> as a medium o1' ex" 3% to stabilize the price
as
(b) The aup<ttin>n
io
•
c
P.0Si^s.' ,c'an be Converted at any erai Government fb) as a sinre- change, (b) as a storehouse of production increases
same
I Reserve note* nnn^l'+^r f
j Jnc !Pto real. wealth in the form house of value for those insliiu- V?uUe' ^ as a reserve for various rate and to
emdebt. The fundamental m/v?
f1\ ,sllveJ- Thus, produc- (ions and /c)
reserve for
financial institutions. The ployment Jacks
tions here
m
thif ti
vV'® actlvlty and Soods and serv- member banks and others
proper function of time deposits cation. It rests upon a
principle underlying thl
asi<; *7? ^an. oxPand with the use of
Th
, „
„
. °*
is to serve as a storehouse of value, theory of
currency
issuance and rnitra^tin
^^"liquidating credit up to the
„ ®
,old Pr°Per points to the (4) Proper supply of deposits in which is invalid. It
b1

era

are

Teu" I1,111/ .™ade Possible by the gold
rievien<sdoI-L110i-P f
Ye£ reserves of the Treasshort-term emprppnnio
g,ne,
[!J*V and banking structure. With
that the
n^,y' ?
iJ)r0pei\ orSanizabon of the
properly annlifihlo tn
•
1P
bankmg system, including the emand contraction of fhec« 1SS?3nC®
a
S ?, w.eli - organized
that thev shonl
pvnaln notes is clearing and collection system for
tract
the ResZT". -f* infrui?ent1s: a nation's typito
SLlPPiy °f gold and silver can
their recneetive Foril^Si 0^ei
Agents
witMra
~ ®l(i,jpi0rt,.? relatlvely large volume
them short form
credit and, consequently, of
business
as'
U/
productlve and exchange activities,
eral Reserve not=>c

confused with

•

non-emcrf?nnrv

c^if

naner

with

the

reauirod

certificate

conversion

currency

^ni 1

? dating credit is utilized in this cc.ipts; Such deposits should not
hirnra'rlv l!n the,e££ec' o£ male- ^ from monetization of Federal
i?
g neaily all goods and services clebt.
FedevapT!™ 2?iSI!l5f^ge.ab,e.- In Principle,
Respect for Jhese principles of

reservp-

Federal

thp

-----

into

Fo^roi

banks in the form of

dlbt

lunu

wic

commercial banks. This is determined in part by the ability of
these banks to accumulate cash
(primary) deposits. All time dcposits are primary while the nro-

p0rtion 0f primary denosits^ in
demand deposits varies from time
lo time> As business ex^nds ih^
'ces peiformed by the Reserve proportion derived from loans' a mi
banks as fiscal agents for the gov- investments (derivative derm«?if« »
eminent in receiving proceeus of tends to increase* as hu^inp^nn
taxes and borrowing from the peo- tracts the DroMrtiSn nf sfmh SL
When automatically self-liqui- ' ? an in Pa.Ving out such re- posits tends to aecreasp npriynfif^

serve

h
fed Prmciples. that a centlal banking system should be the
bolder of the ultimate reserves for
®■ commercial banking system and
should, consequently, be of a coinoier9ial
I that deposits
carried for the Federal Government should arise from the serv-

°
d"

deposits exoand nronprlv

ex^enyd
acainst shnrf-tprm
mercial banks
paper.

They contract properly

level
at the
maintain "full"
scientific justii'iquantity
the value of
mokes the
currency supply a causal force
whereas a fundamental characteristic of'a sound currency is that it
is a Passive» resultant instrument
in exchanges. The theory attaches
an unwarranted virtue to a stable
bidexof prices whereas the proper
important consideration is economic harmonies — harmonious
balance among the forces of production, exchange, consumption,
and distribution of national income. These balances tend to be
obtained bv the operation of free
and fair competitive markets with
a sound currencv. They are not obtained by cunency manlpulaUon.
Edwards Appointed by

c
^

its, is

wrong in

principle.

The

restricted

were

vvith

direct"

its handicaps,

the

total

ex-

validity of

changes could be expected i;to be

the principle that government debt

reduced much below what is made
possible by the use of a good curthe^u
possible

«-

"converted ^ into

should

not

money

lies- in,, the

,u,t

urn

issuance of

balances—gold—can effec

ucoib

uie

po.jts, the supply of paper money
and bank deposits can be
increased

the, basic

accordingly and without respect

money• and

to productive

pic.

procedure
the

activity of the

There is

limit

until

peo-

such

worthlessness

monetary unit is reached.,

r\„

CUT-

This

now,

accomplishment
functions

taxation

the

ofriiV'SS!

col"andJ!!"

and

good

if,

meet

But

its

——1

dc-

program

(2)

.fa

GW
(fiat

money)

auu

omer

to carry

instiiuuons

a'Ss? it"°dSht0r- b?nk" deposi's
for

the

performanrp

!fc

tions hv taxaHrmorbvborrowirw

itTmvn'Ir
the

others

neoble

t^anlfp

currencv to

the

cash

(primary)

added

those

deposits

these

may

derived from

loans,
advances, and discounts made by
the Reserve banks to, or for, their
These should rest upon
short-term self-liquidating paper.

custodiers.

Government

securities

should

--A

„

Currency should

not be created

by the government eAuttpb
except

int-

securities
and

to^h^F^

d commercial banks, bear^

ra0"Pd^xechan0get0ofthgooTdaUnd"

serrof actual °r anticipated proaad. e«hangeP actl vfte
Povprnmpnt

excess

receipts

derived

-X

oorrow
borrowing

spouse
fponse to the presentation r.f gold
of

and sUver-real wealth-for

,inpU"en.-ty.Created in tbis

version
version
or

info
into

except

tizzinst,
coin.

coin

and

are

Additional
nf

bank

con-

J
at standard rates

certificates

re-

are

issued

redeemable
currency
.x

deposits

in,

in the

Federal

*"™a^dThe

oTstrict of Co-'

lum^ia

W1th

10 uccompiisn some sucn purpose jieadqUarters
as stabilization of tne price leve ,
washingor

Rising., productivity^, or

employment,

tuu

are invalid tqr tne

*?ll0)yin,g
' They iguoj'c
fact that -the- proper supply
of each type of currency

detei-

D ^
Edwards

gerved

0ver-

-as

World

—

JJtJ:

vauuuD

-— -1-

m;,nner constitutes a new demand for
goods and
services,

arising from

this

source

demand

other than

!he Production of goods and

,Navy Department and for over
tvvo years of Auchmcloss, Parkei
sentative was a registered reprethe Droned tfinni" of our currency York Stock members of the then
/ concepts of & Redpath, Fxchange, in New
supply

ships.,

•-

- .

mu.^ .
,
.
..
,
should not be separated from the Washington office
cbase govemmen?°s"uriHesP,<u: [wmncy 0™™^ ki"dfS ol Mr' Edwards wiU represent The
rtly "T(the»
o"mreeTrfci§a7Sly "eedS 1,0 fU'- sale distribution of FidelitywholeCrosby corporation in the
Tl5asury>' but, in the interests of Th„ spoons a™,
.
Fund,
orderly, money markets during in J acceptance^of. feilvThr and Puritan Fund. He will devote

govemment^ecufitira "llthe v.ala® of m°"ey_a com- himself tosalesmen in the aboveworking with the dealSrm 1S
0f an ecluation ere and
sesserrAjss«—«-•
01 exenange pi*esented by Irving
Fisher in his book The Purchasing

VIWy i 1
l?J)e"dayr ^rea^a?lvOVernrorpS- Poirer of Monei/,(The Macmillau
-

by a
transfer of currency by the
people
to their government in
to
response
M»Aauuti and
taction cina
saY,ln^s.

Crosby

onM^rpHclsTp^Uv1, ^ where he received the defT of S { Vf years he sei%
on?' *^n,
ve
as a civilian J°l> Analyst \vith

ture> and industry.
B
nlG
Should Not Finance the
Re"
Government

r-x-

.,u.
currency is not ueaiea.
created.

Mass. —The

Pr°vidi?B some lability or ofder- Hy. or empioymeni-an^Tssumlwhich is in principle an activity hness in the money markets in tion which is much too simple to
comparable to that of the counter w'iich the supply of money and ft the facts inyolved. (3) Thcv
feiter, or by converting 1?s d?h"t cledit af£ecte commerce, agricul- infuse cause and effect relation-

uiril

new

should be expanded or contr

AVI, Oiiui I, - IC1 111

°I 'h<?
ylwheneni^matures' Instead^ii
acl^lpo
tri
eithef case, reflects actual thV anticinated ex serve sound principle for so-called
or anticipated
nenditnres hv
t., [t is banks to Purchase the Re4

government;

BOSTON,

iuw,fs LO ine eneci mat the

au-

Hby

rerve

obtaining Ff>rWni

Crosby Corporation

"the

currency

deposits with the

money

by by using iss«ance of its
direct indirect

or
as

obtain

fitviur

•'•o.uiuuig

devices such

supply" of

banks.

P jS1
an. redeemIt
no? f nrnard r01"-,.
Foverrim?nt tn create money o£ a notpc
r
C
Reserve
m>\
rnment to
for instruments into Federal f[eseive
hanir rile, -i
self-lionidn«on'

are

able in the eta

nipulation
proper

Proper supply of deposits in

Federal Reserve

,ucm.

borrowing from

snyincro

wise

of Federal Reserve banks.

one

credit."

government,

monetization of Federal debt.1

^thorized

expenses, resorts to an expansion
of paper money and
deposits, instead of using its proper powers

per monev or

good

change of the remainder.

v..v

suit

f^rrnn .n"ia (1 c Federal Reserve banks. '
rnit"f-aggregate supply- of cur- Corporation bas announced the
" "
self lim.r amount of cash deposited by mem- it (Lls„!'rro'ler only if the parts appointment of James B. Edwards,
Tbis is determined by the oI the-'currency which comprise
<"homsale,representative
bu'k her banks, non-member elem i.w lbe aggregate are in harmony wif, for the Slates

Automatically

■■

ley or the creation of bank de-

—..v

.At

consideration-rency.

...

currency

barter

serv-

uu;ci

AVI

This, is, fundamentally, a p oc - Co., New York, 1911)
prwe1911
This^is,
ma ta
by evidence
dure for helping to maintain a portable hv evidenc<

*2 whTe th/neo^! Sed_Ue"Hy falI~
credit mechanism while the people
^£7tlv'lu"s"

is not
and is

Kenneth J. Hanau

supcon-

Kenneth
away

April

John

Hanau

passe<

27 at the age

away April 27 at

the age of c

arl fi."uancing tbe g°vernment effect asoMtsn? the
a"d following u a brief •illness. * M
rather than a case of financing the , m asPccts of the currency supru
government by the Reserve bfnks P'-v seems to arise, in part at least, Hanau, who was Chairman of th
'
m. failure to perceivie that ex- Executive Committee of the Na

by\h"s\uathorrTaamn^h.brnooutlincd

^ tePd to. differ from

pa;ision °* th* s"Pply of a sound tional State Bank of Newark, i
f the past was associated with .
Seligman & Co., Redmon

what would otherwise be • thoir ' Natl°na» Committee on Monetary Policy ,an increase in business activity „ „r „
^
„ ,
proper barter relationshins
Thev ®neMMadison Avenue, New York 10, n! 1 and and that it is an unsound met- & Co., and Spencer Trask &c'C(
ay' 19S3)' 50
als, the supply of monetary cur- & W.
PP'

Volume

Number

185

5634

financial Chronicle

The Commercial and

(2073)

what

mentioning

Securities Salesman's Corner

amounts
I

few

By JOHN DUTTON

make

this

sales

whit
He

man.

investor.

him

sure

talk

has

such

disclosure

full

items

details

involved

the

gain distributions are all directed
a laudable objective.
It is

that

century, and the fact
they have too much

that he thinks
in

now

dollars and this

mum

of bother and

responsibility

to himself and to them if he pre¬
deceases them.
-•

going to
with

Each

sophisticated

This

stocks
What he

case

man

must stand

will

the

foregoing

requirements.

read it all in the

he wants the details of

cedure.

penses,

tion

likes

the

can

diversifica¬

principle, the excellent and

its own.

buy these Funds if
reasonably meet

he thinks it will

Fund idea

;

prospectus if

and what have

the
to

•

ex¬

N.A.S.D.,

make

rules

tor will

buy (if he buys at all).

* come

production during the past

salesmanship that willfully mis¬

represents

the

facts

regarding

production, or futyre
possibilities, r However, these re¬

strictions should
conscientious

that will attempt to stop the type

not penalize the

salesman

who

sells

the Funds where the need is indi¬
cated and where the buyer will
benefit. The honorable investment
salesman won't misrepresent. He
doesn't have
common

when

tions

you

this.

and

sense

they

costs,
you.

I believe it is laudable for the

able-men who manage this fund, : industry, *. through
its long record of continuous in-r * and for the S.E.C.

of. load, income

one

the best ways to protect their fu¬
ture income needs with a mini¬

is that it is good for his two sisters
who don't know investment pro¬

"acquisition cost" (sometimes re- - operation of the "Funds." Load,
ferred to as the load), the rate of capital gains distributions, divi¬
return based upon average month- dend income, these things are how
end offering price, the segregation the Funds operate but they are
of divioeh > income and capital not the important thing the inves¬

quarter of

bought

agencies and the N.A.S.D. on the-

technical

the

for

difference

emphasis of the regulatory and in personal conversation with and bonds all his life.
an
investor, but they are mere likes about this Mutual

The

$25,000.

spoken to

days but I
of

referred

of the prospectus, also
the reduced load on

over

haven't

amount

Selling Mutual Funds

and

was

proper page

Just

tighten
to such ques¬

come

are

have

indicated

here—

minor points of interest
in the mind of the investor—don't

enlarge
which

them

into

all out

something
proportion to

their importance.

toward

"What the Investor Buys

that:; the investor be>
fully-informed of exactly what

important

'the Fund in question has earned.
It is also proper

; tations

that

no represen-

(It

take

would

dull

person,

but

there

buys

INCOME

now

The artistic talents of the

buys it for the FUTURE. He wants

Costa Rican

checks.

ified, by this design painted

pretty

better

formance will be the same

future.

The investor buys INCOME!
either

per¬
in the

past

that

made

;

ment

also

that

wants

will

(NOW

invest¬

him

help

live

LATER).

people are typ¬

the wheel of an ox cart.

woefully un- wants to protect his savings
! informed, to imagine such a thing, against depreciation through de-;
or one

hre

people

some

who

knowledge of investment

have

who

might believe such

a state¬
The rules and regulations
doubt set up with good

ment.)
-

are

Unfor¬

investment

honorable

tunately,
*

them.

behind

intentions

salesmen don't need them and the

unscrupulous Mutual Fund sales¬
who come into the business

men

these

ignore
'

rules

But

anyway.

regardless of the merits or demerstatement of pol¬

its of the present

icy, regulations, etc., the point is
that the rules are there and they

scrupulously obeyed.

should

Sales Presentation Is Not

A Good

talking to

a pros¬

pect about a .Mutual Fund, it is
requisite that you as a salesman
believe that the Fund is what that

There

needs.

investor

many

are

people who will be better off with
*

their funds invested in one or sev¬

they

vestment

MIND

These
HE

the

are

things in which
If

can

Mutual Fund investment

vehicle

that

INTERESTED.

see

will

give

him

the

foregoing opportunity of investing
capital, he is not going to be

his

interested

labored,

discussion of the way

detailed

the fund is

put together.
handle

early in

the
acquisition cost
discussion. With new

investors

doubly careful to

tell them that this is

long-term
specifically

state

and

the acquisition cost will be
I make mention of the fact

that

this

and the

drawn
costs

both

covers

selling fee.
into

long

by simply

the

buying

I avoid being

discussion

stating,

"This is
an
investment program with all
the following features, it is not
like any other single investment

classification of these indi¬

HIS

diversified in- in a stock or a bond." I make the
portfolio. I am not going simple statement that the costs of

manage

into

than

Funds

Mutual

eral
tried

He wants

care.

reasonably possible.

what
When you are

SAFE

investment.

Upon Technicalities

Based

urcclated dollar savings. He wantc
freedom from

viduals, here,

but

when

don't

that

the

you

Funds

are

merchandising the Funds has been

can

established by competition among
conscientiously, see that a Mutual over a:; hundred Mutual Funds,
Fund is a good, in vestment'ioh: a
3Pd:
* gppd; .horse, M; worth
his
client, then Vou can offer One that hire."
you believe is suitable—with con¬
Regarding future performance
viction and sincerity. I certainly
<

believe

the best investment for everyone.

Question

When It Comes to the

asks "What does

person

is much

oay?"- it

better

handle the

technique

sales

auestion

honestly but BRIEFLY AND CAS¬
UALLY. You can take the offer¬

ing
and

you

and the prospectus
laboriously go over

circular
can

the past ten
can

years' record and you

confuse, and scare your pros¬

(es¬
pecially if he is not too well versed

figures
It is

statements).

financial

and

better to simply state,

"During the

past ten years, based upon an av¬
month-end offering price,

erage
the

from

return

dividend income

has been 4%.- In

addition, during

Fund

during the
They have been

years

this
the

might do

well

share-

the

gains and
other sources, and on an invest¬
ment of $10,000 these canital gains
have amounted to

much during

the past ten years.

sensible, don't you?"
My point in this column is,

Take them naturallv

these pomts.
and
to

Don't allow yourself

easily.

all

become

subiect

ymld.

geir»s,

loa'l

faetor

arises.

pOTivrc:.

tense

cha^ee

capital
any other

MINIMIZE
am

the

when

income,

writing

THESE

this

for

salesmen, not for lawyers or gov¬
ernment bureaucrats. N.A.S.D. of¬
ficials

the

like.

Fro™

sales

the least impor¬
tant fa^to^fi you can bring to the
attention of your client. Mv "oint
is, cover them completely, accord¬
ing to the rules, both in writing
point, t^ese

are

enjoying the charm

•

San

enjoys spring-like 70 degree temperature the

year

around. Recent

explorations that have revealed the possibilities of oil and high-

led

prospect

your

highway is completed, United

States tourists will be able to motor to this beautiful city which

through these things.
off on tangents of

specimens

Jose, the nation's capital, is accessible to tourists by air

and rail. When the Pan American

Don't take out your pencil and la¬
be

see

Indian craftsmen.

"load," past performance, income
capital gains, etc.

Don't

also

gold, jade and pottery fashioned by ancient

as a

production,
boriously

Rica, where the Old and New worlds blend. Discovered

of beautiful works in

salesman don't become tense when
it comes to a discussion of the

grade bauxite deposits

are

attracting attention and offer

the larger view of

really

desires.

INCOME

NOW,

tunities for

FOR

THE

new

oppor¬

and expanding industry.

Serving San Jose and surrounding

area

with electric and tele¬

FUTURE.

phone service is the work of Compania Nacional de Fuerza

The other day an investor tele¬

phoned and asked
a

prospectus

After he

two

sisters

ested

knew

the

from

asked

inter¬

when

t^n

the

few

him

pa^e

cam**

"So

years,

much

famous

prospectus."
more

to look

questions
on

Compania
Nacional de Fuerza

Luz.

the

coffee.

area

i3 the center of Costa Rican

com¬

and of the territory which produces the nation's
The

re¬

105

per

utility's system output of electricity has

cent in the

residential service is
of

electricity by the

40 per cent greater

paCTe

of the p^osnech's. All

done

at low rates is available. Com¬

over the phone.
He
hasn't bought vet but he also asked
about the load. I briefly told him
was

power

increased 156 per cent since 1945, with the number of customers

who

man

dividend income dur¬

I told

quired
this

capital gains, that's

so-an-so

an^

mercial activity

substantial, in¬

gave hi™ the answer,

oast

good supply of electric

pania Nacional's service

lit¬

had

He said. "What will it

much fro™

ing

the

that he

might

was

score

investing.
pay?" I

who

Tuis

certain Mutual

fairlv

vestment.

to send him

received

ask some erature, he told

overemphasise

T^on't

questions.

increasing number of travelers today

of Old World art and architecture. One
may

Fund.

Then let the prospect

by Christopher Columbus in 1502, Costa Rica presents examples

what

Rich in Tourist Charm

good future, then this

Keep

canital

investment should certainly make
a
good showing. At least, I feel
that way about it and I think that

income

will have

discussion.

f<*nm

better, but if
of Costa

THINKING

additional

years,

believe that business (with all

ypp™?

hn^ers

know.

won't

ten

the past ten years

there have been
when this Fund has paH an

Fund

its ups and downs) will grow and
the top companies in this country

pect enough to lose the sale
in the technical analysis of

this

years.

prosperous

well

When

ten

past

Possibly

of Income Return

•

all you have to say is, "This is the
record

same

period. In addition, the company's

highly developed, with the consumption
average

residential customer being about

than that in the United States.

Luz, S.A.

SAN JOSE

COSTA

use

don't

RICA

Associated with the American & Foreign Power System J

The Commercial and Financial Chronicle

(2074)

Continued

while

blue-chippy

chemicals,

Financial Corp. into

short-term

duPont, Dow, and Union Carbide;
drugs as Schering and Pfizer; and

gtO

reserve-rich

Tka/xmal

oils

Amerada

V v,-1'

and

FREE INFORMATION
FOLDER AND PROSPECTUS TO

General

YOUR INVESTMENT DEALER OR

WRITE FOR

the

RESEARCH CORPORATION
Y.

shunned.

Industrial

Jones
a

net

Average

decline

4.9%,
B,

quarter.

reached

Group Securities, inc.
Incorporated 1933

A mutual fund

ones

traded

investing

stocks, with the

proportions

man¬

The

agement's judgment.
A

PROSPECTUS

REQUEST

stock

relatively

narrow

5,N.Y,

well-chosen

common

the
t

balance

nine

past

hign

level

the

rapid
of industrial
expansion.
It
suggested that the resulting

was

Board to curtail
sures

ana

inflationary

might result in

ing down

the

To date there has

ciable

stocks

some

activity

instances

although

there

evidence
a

included

and

current

competitive

Jhe

prices.

pressure

It seems probable that

pattern may become more
pronounced
before
the
current

priced in relation
prospective earn¬

readjustment

underlying confi¬
aoubts

snort-term

6yK.es, president

t^aw-

tne

uuiyng

eral

inatistriesincluding

Steel,

paper, and building; and prices oi
certain key materials
stich as cop¬
per and scrap iron have snown a
definite tendency to decline. While
continue

cautious

remain somewhat
overall

our

nevertheless, certain
uations have

buying
have

area ana

added

outlook,

selective

appeared

oil

our

and

particular,

vestment

common

conservative

sents 59.52%

polio.
period

tnis basis, we

holdings
remains

sit¬

enter

our

drug

our

and

in¬

still

stocks

repre¬

overall port-

addition,

during

tne

we took advantage of the
attractive interest rates now avail¬
able to add to our bonds."

Similarly in the mixed-to-con¬
structive

vein

the

following

from the Trustees of Shareholders'
Trust of Boston: "While the vol¬
of

overall
a

business activity
high level conflict¬

ing trends which have been de¬
veloping in our economy have re¬
cently intensified. In anticipation
of these

developments,

your man¬

agement during the past year has

this

continues at

but

inat the

the first quarter, as
amicipateu,
held up remarkamy Wen: nowever, soft spots appeared in sev¬

ume

pace.

appre¬

decline in demand and

some

rise

slow¬

some

economic
been

pres¬

drop in the overall rate of

industrial

security holdings of this company
qontirtues to be diversified com$e Attractively

common

activity,'

rise in interest rates and the steps
taken
by the
Federal Reserve

Thoii/stocks which are believed to

hand,

the

over

exceptionally

business
rate

represent excellent long-term in¬
vestments. Thus the main body of
•

Sellers

other

sellers

period

cluded.

been

making significant

the

have

trust's

been

summary

changes

investments

which

reported to you.
In
bond
and ^preferred
,

In the interim there may

con¬

stock holdings have been adjusted
to
reflect
developments in the
confidence in readily be some easing in stock
Income
money market.
Substantial in¬
It has, therefore, seemed
the limitation of readjustment to prices.
ated
Fund,
Blue
Ridge,
State
vestments in high grade shortthe "rolling" category is National advisable to build up our reserves
Street, Wisconsin, American-Eu¬
term securities affording satisfac¬
Securities & Research Corp., spon¬ for the time being, pending new
ropean,
Johnston Mutual Fund,
tory rates of income were ac¬
sors
and
managers
of a large opportunities for additional com¬
Niagara Share, and Tri-Continenquired over an extended period
mon stock investments."
y
tal.
Not buying a single share group of mutual investment funds.
and recentlv they have been re¬
In a communication to this pa¬
were
American Business Shares*' "Expenditure for consumer serv¬
duced
in
favor
of
attractively
commenting on his fund's
ices rose $6.8 billion last year and per,
Value Line, and as for some time
sales of commons, with the pro¬ priced higher yielding converti¬
expenditures for non-durable con¬
ble issues as they became avail¬
back, U. S. & Foreign Securities.
ceeds swelling reserves to 23% of
sumer goods rose $6.7 billion, far
able. Common stocks of compan¬
Tri-Continental, the largest more than
offsetting a $1.7 billion the portfolio at the quarter's end, ies whose
closed-end investment
earnings prospects have
company,
decline in consumer durables and Gordon P. Baird, an officer of the
lessened have been eliminated in
sold common stocks on balance in
T. Rowe Price Growth Stock Fund,
a
$1.3 billion decline in home
favor of those whose profit po¬
the amount of about $2 million;
Inc. says: "It is our intention to
building.
These trends provide
tentials appear promising.
and placed all of the $13.1 million
Your
another illustration of the resili¬ continue this cautious policy un¬
received from the exercise of its
til such time as the extent of the management believes, regardless
ency of the American
economy
of the divergent economic trends,
warrants and as a capital
gain which we described in previous downtrend in business and cor¬
that a sound investment program
dividend
from
Tri
Continental forecasts.
They again prove its porate earnings can be more ac¬ should continue
to
reflect
the
curately determined."
Harold W. Story, President, em¬ long-term inflationary forces and
the inherent growth factors in our
phasizes the fact that Wisconsin
Fund, for the first time in a num¬ economy."
ber of years, includes in its port¬
Expressing satisfaction over
folio a substantial amount of long- their recent defensive policies are
Trustees
of
New
term bonds;
England
and that it further the
added strength to its portfolio by Fund:
"Experience
in
the
12
Boston

Group, Incorporated

63 Wall Street, New York

the

from your investment dealer

Distributors

that

eral American Investors.

"balanced"

in accordance with

defensive"

Industrial Average has

Stock, Scudder Stevens & Clark
Common Stock, the United Funds
Group, Adams Express, and Gen-

bonds, preferred and

common

Em¬

Commonwealth, Delaware, Divi¬
range 7%
above and 7% below
dend
Shares, Dreyfus, Eaton &
the Sept. 23, 1955 figure
and
Stock Fund, Institutional-;
the stock market gives gratifying
Foundation Fund, Investors Mu¬
evidence of overall stability in the
tual,
Massachusetts
Life Fund,
face
of
"rolling readjustments"
Stein Roe & Farnham, Welling¬
in many individual
stocks.
Mr.
ton, Fundamental Investors, Fi¬
Rubin then reports his investment
delity, Incorporated Investors, In¬
conclusion as follows: "This man¬
vestment Co. of America, M.I.T.,
agement continues to be convinced
Massachusetts
Investors ? Growth

ADMINISTERED FUND

softr spots

new

Howard

THE FULLY

com¬

Low-J

Axe-Houghton. Fund

were

first

future,

thing of the
■*, ' ''
■"
a

Trustees oi the Massacnusetcs Lue
Fund: "General business

-stocks, after citing economic
and possible readjust¬

mon.

"-l\;

icnce

confidence

March months,
Douglas
T.
Johnston,
high, unemployment was * down Chairman and M. Jennings
from a year ago. Personal income von
der
Heyde, President, say:
was
at a new high annual rate "Our last two
reports commented
In the year-and-a-half since briefly on the strains which had
the President's heart attack, the been
placed on our economy by
ployment

showed

review.

Long-term

V".

note

dence. miast

funus

two

tne

typuiea oy tne Statement

cash and

net

its

among

1956's

above

Among the funds particularly
aggressive as net common stock
buyers during the quarter, while
the market as measured by
the
Dow

under

mere

cycle

-•

The

balance

The Buyers

Broadway, New York 5, N.

and

■

sales

Sperry Rand,
and
Minneapolis-

Minnesota Mining &
Manufacturing
was
completely

Established 1930

past."
the

Thursday, May 2, 1957

economic

the ^optimists ments ahead, was voiced; by Fran- f
cis F. Randolph, Chairman, re¬
is Edward P. Rubin, President of
Selected
American
Shares. V As¬ porting for National Investors of
J' V''
serting that "broadly comprehen¬ the Tri.Group.
sive
figures
for .vtner American
The Case for Defensiveness
;
economy in the first 1957 quarter
were good.
Industrial production
Reporting for the Johnston Mu¬
held near the all-time high and tual Fund
Inc., which has "gone

Honeywell.

NATIONAL SECURITIES &

•*

■

Foremost

simism

remain on a

rather

increase

governments

Electric,
Grace

Confident Managements

Superior,

.■

cash account,

securities

senior

corporate bonds.

continued to be accu¬
mulated; there also occurred some
concentrated
selling
in several
other of the growth leaders, as

Stock Se/ueit

stocks'

common

and

120

confidence

neitner are we persuaaea

long-term side is indicated by its

Less Defensive
While

adjust¬
employ¬

That this management's invest¬
ment

aggregate

production
high plateau."

Funds' Portfolio Policies

INVESTMENT

'rolling

make

and

ment

A MUTUAL

FUND

ability
ments'

jrom jirst page

ings and dividends."

Fund, National Securities
and Stock Funds, Affili¬

Also

expressing

•

<£$odton 3*und

holdings of public

increasing its

Massachusetts Investors
Growth Stock Fund

utilities

After expressing worry over un¬
certain automobile demand, the
of

trustees

General

Investors

Trust conclude: "At this time

justification for undue

see no

months
of

securities.

pes¬

demonstrates the value

maintaining

and

short-term

reserves

bonds

during times of market
tainty."
v,
And

from

George

President of Sovereign

and

cash
notes

uncer¬

A. Bailey,
Investors:

vAassaehusetts
Investors Trust
.

You

can own

Century Silares Trust

through

FUNDAMENTAL

■

Custodian Tund.

prospectus-booklet of

this coupon

Fund

LIMITED

mutual fund investing
in common* stotks. For copy
a

facts about the

eystone:

Canada General Fund

INVESTORS
...

YOUR share

of American business

Coverlrigall classes pf

Bond Fund

Fund, mail

securities,

today.
OF

for
Address-

A prospectus

relating to the shares of any of these separate
be obtainedfrom authorized dealers or

each Fund with

specific investment

BOSTON

purpose

Reserves, income

of Canada, Ttd.
A

fully managed
Company";
seeking long-term
*

Mutual Investment

CAPITAL GROWTH in the

expanding Canadian Economy

possible GROWTH

investment funds may

Prospectus from

VANCE, SANDER^ & COMPANY
111

HUGH W. LONG

AND COMPANY,

INC.

DEVONSHIRE

STREET

The

BOSTON

Elizabeth 3, N. J.

et\

NEW

YORK

Broadway

CHICAGO

LOS ANGELES

txo South LaSalie Street

Bio Weat Seventh Street

your

local investment dealer

Keystone Company of Boston

Volume

185

Number 5634

The Commercial and Financial Chronicle

(2075)
"Your management is
until

POLICY TOWARD

following a
policy
convincing

investment

conservative

there

evidence that

in this stiidy reveals that bullish¬
ness

during the quarter was large¬
ly concentrated in the following

INDUSTRY GROUPS
Our

major market up¬

turn is at hand."

folio

analysis

specific

changes, which

are

industry

port¬

tabulated

agricultural

groups:

equipments, chemicals, coal,

con¬

tainer and glass, drugs, insurance,
finance
companies,
machinery,

End of Quarterly Periods December

1956 and March

Thousands of Dollars
End of—

Open-End Balanced Funds:

/ American Business Shares—
Axe-Houghton

Fund

Boston

3,789
4,979

7,754

Eaton & Howard Balanced Fund
General Investors Trust.

Dec.

33.6

35.6

52.9

512,.

36.8

38.7

52.4

52.3

22.9

25.1

28.0

28.7
28.1

H29.9

1133.2

11.2

V-'X 17.5

y.Vi.7 .-:U[

9.9

;•

10,702

7.5

337

495

; X
:

6.i
10.0

National Securities—Income

Nation-Widfe Securities
New England Fund—

—

j George Putnam Fund

•y

499

1,337
8,465
3,058
1,034
1,558
1,386
1,424

1,353

yX-

Stein Roe & Farnham Fund
'Value Line Income Fund

X
:

,v" Whiteha 11 Fund

Open-End Stock Funds: y

.■

18.5

73.0

73.6

26.6

73.5

70.9

3,042

26.7

68.8

65.9

429

203

429

203

25.2

69.3

68.7

9,331

6,313

3,365

3,087

12.3

80.7

77.7

292

250

191

346
931

.-.x

71.0

1,344

931

1,142

87.2

82.2

1,789

484

66.6

47,306

26,106

13,333

21.1

27.1

69.0

64.4

519

178

278

24.1

20.4

65.6

69.5

1.442

1,840

1,442

28.7

26.9

55.5

57.6

1,943
72,899
1,000
1,840
5,827

495

70.2

4.443

378

223

29.9

31.4

60.4

60.1

2,142

429

340

3,197
1,865

1.579
$$785
1,245

8.5

9.5

;

9.9

X 9.9:

81.7

79.1

;. 9.2

85.g

83.7

34.6

32.5

30.9

30.5

23.4

6.3

11.4

11.2

25.1

4.3'

60.1

...

tde Vegb Mutual Fund-—

Dividend Shares

73.0

70.6

37.9

62.0

59.5

19.9

21.3

72.6

74.6

2.6 X

13.9

8.6

30.8

36.3

55.3

55.1

35.4

34.9

20.4

23.2

44.2

41.9

•rv

1,348
365

1.2

i.i

93.0

92.4

29.6

66.6

63.5

4,499
60,314

35,225

4,499
30,318

81
2,862
25,332

'3.0

46.5

44.7

52.4

52.3

541

443

210

196

13,647

3,596

.665

454

1,344

N.A.

4,471

8,443
$$1,417
9,040
4,775
6,185

5,144
5,725

28,024

V
"

2,974

;

86.1

3,596

92.9

89.6

505

84.3

88.5

5.4

84.3

87.5

6.8

84.4

85.6

86.4

m.6

3,483
9,008
1,917
9,040

■:';■

::r 3.6

5.0

13.4

None*1

■

597

None

97.7

98.0

1.9

85.8

87.8

6,185

435

1.6

None

98.6

98.4

401

229

388

229

-9.4

4.4

-46

86.6

86.0

14,900

8^18
8,292
2M8
4,150

$$13,950
18,244
2,611
8,804
12,588
10,279

$$8,118
8,292
2,846
4,150
3^78
2,389
18^11
2,790
1,238
3,170

.1.4
•

9.0 '

12.2

1.6

None

97.8

98.4

18,244

y/X

.0.4

■"0.9

None

99.6

99.1

2,611

3,804
12,588

2.5

2,337
8,183
4,053
3,344

9.6

yys.o
0.2

None

97.5

90.4

2.0

0.6

95.0

96.2

0.5

0.2"

89.0

95.5

99.3

98.2

3.2

2,231

1,889

7,749

1.4

561

651

-4.3

,4.9

7.9

1,520

1,691

18.5

; 19.1

2.1

1,189
9,768

10,530

Rowe Price Growth Stock

Scudder, Stevens & Clark—
y ; 1
Common Stock Fund.—__________
^

"♦

10.5

•

4-3

0.3'

98.6

93.9

220

87.9

950

767

599

244

79.4

1.5-

0.5

2.6

78.5

1,373

766

913

555

1,649
8,713

8,412

None
•

None

97.4

98.1

1.3

None

98.7

6.1 '*

1.3

None

•

7.2

___'

435

87.8

10,279
43,681 f
9,012
1,688

3,434

7,578
2,389
24^54
2,790
1^38
3,170

2.4

28,338
9,012
1,688
220

Selected American Shares.

4,775

128

,827

Securities—Stock

4,471
$$1,609
5,780

1.3

869

Pine Street Fund—_—______

665

N.A.

None

2,986

__i_—__________

2.0

8,112
9,984
1,762

____—

1,609
5,780
3,434

10.3

5,968
y

13,647
V

2.3

America.

•

12.9

•

23,629

89.1

0.6

None

7.6
"

:i3.6
■*

.0.5

•0.4

i 11.5

10.6

T
y

9:8

12.1

•

0.6

■

15.7

;

221

13.4

y;: 6.7

8,036

_^.

Com. Stock Fund

10.3

1,073.1

Massachusetts Investors Growth Stock

217 .;

■.

8.4

None

16.8

None

91.6

98.5

1,649

1.0

1.5

15.0

1.1

84.0

82.1

15,037

14,655

.2.4

1.3

2.1

2.5

95.5

96.2

QCj

None

21,583

22,743

13.0

13.9

0.4

86.6

85.7

6,525

7,665

6,525

7,665

10,682
1,650

9.5

8.2

10.8

82.3

81.0]

6.2

6.1

0.6

1.0

93.2

9,379

________________

State Street Investment
United Accumulative Fund

12,041

United Continental Fund—

None

«y

26.1

8,308

Capital Corp.____

Sovereign Investors

1,775
.

6.9

Massachusetts Investors Trust———

997

1.580

6.5

243

23,277

Incorporated Investors

366

7.3

Fundamental Investors

National

4,242

5.8

9,619

-'y. Fidelity Fund

4,574
1,886

4,792

48,581'
2,629
3,698
•
3,423 *

Energy Fund

None

41,100

230

—____

Investors

NA.

8,519
5,733
1,594

141

:.;X

7.5

1,925

N.A.

62Sj

12,063

34.2

4.1
'

3,497

29,079

Dreyfus Fund
Eaton & Howard Stock Fund

vy National

598

1,507

37,187
1,821
A

—

61.2
59.6

1,081
2,481
2,158

59.0

i'''i;7.lX

3.0

6,881
2,441
2,280

1,510

_r__l'

—

investment" Co. of

2,002

_________

2,685
1,971

70.7

3,400
2,083

6,006
7,444*
5,115

8.5

3.8 T

-v

2,944

9.5

3.6

765

1,550

77.8

15.5

.5.3;

1,838

Affiliated Fund

Grou p Securities

7,093

3,008
4,864
2,328

73.9

33.0

;
,

10.1

...

10.1,

5,942

NvA.

22.9

8.4

;

N.A.

7.8

: 9.7 ;

1,259

281

1,142

10,804 ]

$65.4
;

Xy Blue Ridge Mutual Fund—

General

80.4

325

215
%

307

8.3
0.4

15.8

3,782
1,672
1,390

2,306
3,744
4,197
42,108

„—

418

215

71.3

Value Line Fund———

150

28.6

' /:•■,■

1.2

10.3

8,626

2,651
1,446

Shareholders' Trust of Boston:

897

20.3

X-xy 20.5

6.1

;

-"X: 9.9

2,779

4,867

>Scudder, Stevens & Clark Fund——

8.8
5.0

4,293

570

;y/ :x"

y835> y

478

Massachusetts Life Fund

Delaware Fund

530

1,121
2,064

9.1

'•X.-

11,816

Knickerbocker Flind
Loomi3-Sayles Mutual Fund

Bullock Fund

None

897

548

23.2

2.5

10.2

696

.! 'Mutual Investment Fund————

;

939

1,646
3,675

22.8

■y'X 7.9

■•yy.- 7.4

8.4

Salet**

21.5

'yy,--

17.9
17.1

Johnston Mutual Fund_l

Totfcl

Purchasest

Sales**

purchasest

23.1

1.9

VX:

;:>'• 3.4

Common Stocks*

Total

71.6

$64.7

x. y*X 4.6

5.4 y-yy

69.5

68.4

1.4

y
■

the

page

61.8

64.2

28.6

Mar.

70.7

9.5
0.3

;

Of this: Portfolio

Portfolio Securities

Other than Governments
«—■Total
Total

Mar.

5.4

'X'

354

Investors Mutual

Wellington Fund

9.0

:'•.'■/y

7.8

1,814
9,403
1,672
;y /.yy 387

13,005

Institutional Foundation Fund

End of

Dec.

13.2

3.0

2,000
;■■■■:

442

vy;; X f-// yy :'■/
Fully Administered Fund___

1,620
11,787
2,271

Diversified Investment Fund
Dodge & Cox Fund

•

.-*■

6.4

663

y;.y-V

64
I

•

Commonwealth Investment

Per Cent of Net Assets

End of
Mar.

the

•

Dollars)-

-(In Thousands of

Grade Bonds & Pfds.

Per Cent of Net Assets

•

;

13.5
10.8

557
331

____

Fund-_—_—

; y Group Securities—

3,692

4,093
y'"' 3,772

„

4,386

Electronics.

Bowling Green
.:y Broad Street Investing.

:*;t.

Dec.

Axe-Houghton Fund B—__
Axe-Houghton Stock Fund.
Axe Science &

Mar.

during

January-March 1957

—End of

Dec.

Continued

Com. Stks. and Lower

Preferred Stocks*

Assets

Per Cent of Net

bearishness

managements

Security Transactions During

1957

Net Cash & Governments

Industry

broadcasting, merchandising, rub-

Investment Bonds and
Net Cash & Governments

bers, and textiles,

aluminum, special metals, natural
fund
gas, oils, paper, utilities, steels,

Balance Between Cash and Investments of 75 Investment
Companies

1,664

United

Income Fund——

7,777

7,111

4.9

4.7

0.7

0.8

94.4

24,986

9,613

22,056

United

Science

3,229

2,227

8.4

5.7

0.6

1.2

91.0

93.1 J

659

453

7.5

4.9

None

92.5

95.1

507

208

372

208

205

166

1.8

1.4

1.2

8.9

97.0

89.7

1,563

1,311

670

1,311

3,881

4,472

0.7

1.0

95.3

94.2

1,322

329

661

12.4

20.7

84.8

75.7

1,507
2,335

830

546

2,344

464

1,777

814

714

Value Line

Wisconsin

Fund

Special Situations.___i__

Fund

Closed-End Companies:
Adams
,

Express

____________

Carriers & General—

—

General American Investors
Public

Service—.

Lehman Corporation
National Shares

Niagara Share

■

——

American European Securities——
American International

General

—

3.6
4.5

1.1

1.6

94.2

93.9

939

714

6.7

6.6

2.8

2.7

90.5

90.7

711

656

3,843'
2,012
8,245
2,454

6.0

5,9

1.8

92.3

376

257

376

8.5

7.8

None

91.5

92.2

1,005

1^271

4,951
1,171
1,448

3.0

U. S; &

Foreign-Securities-__________

2,494

0.2

96.6

y* 2.1

88.0

87.9

91.6

1,271
3,794
1,445
1,134

0.4

10.0

13,511

96.2

162

1,005
4^00
$$1,171
1,448

3,794

$$i,328
'

3.0

§11.2

§11-6

§87.4

§86.8

285

323

285

a2.8

21.1

21.8

77.8

75.4

14,948

8,071

4,120

-11.3

10.6 r

None

89.4

88.7

None

225

None

225

459,758

295,953

290,875

202,253

2.9

—:—.—
'

U.—

5.4

1.1

a8,731

1.5
-

608

711

•

90.2

——

13,318

,y.

None
-

3.6
f
,

6.9

—

3,481.

1.7

10.5

TrLContinental

3^87
——

4.8

;

4.7

1,752

7,013

——

2.8

1,101

1,913
1,143
3,987
2,116
2,700

Overseas Securities

4.0

•

1,134

278

;

8,115

*rnvestiuent bonds and preferred stocks: Moody's Aaa through Ba for
bonds; Fitch's AAA through BB (or approximate equivalents) for pre-

ferreds.

tIBonds

and

preferred* irrespective of quality classification.
^Common stocks only.
Sin percent of gross assets,
(a) Increase due
chiefly to $13,114,145 received from exercise of warrants and as capital

gain dividend from Trl-Contihental Financial Corp.
♦

^Proceeds

from

sales

^tEstimated.

tCost ot purchases.
-

SUMMARY

Changes in Cash Position of 74 Investment Companies

Average Allocation by 75 Companies of Assets to Cash and

March 31, 1957 vs. Dec. 31, 1956
Plus

Open-End

Minus

Companies

Balanced Funds

—

Stock Funds

Closed-End Companies
Totals

Equivalent, Defensive Securities, and Risk Securities

Approx.
Unchanged

Dec. 31,1956

Total

Net

cash, etc., and Governments

Defensive

Mar. 31,1937

7.3%

6.9%

securities

(investment
bonds and preferreds)
Risk securities (common stocks plus
lower grade bonds and preferreds)

12.5

11.6

81.1

80.6

•

The Commercial and Financial

Chronicle

Thursday, May 2, 1957

(2076)
Black

Continued

from page 31

and

Decker

Bucyrus-

Mutual sold 19,260 common

'/"'-T. •« but

Erie.

Aluminum and

Funds7 Portfolio Policies

The

Less Defensive
lines.

1)1

attitude

toward

Again continuing the trend of
the previous quarter, drug issues
shown were widely bought. Bristol-Myers
banks, was purchased by eight manage¬

mixed

was

automotives,

the

building, electrical equipment and
electronics, coppers, railroads, and

FUMMNC

railroad

ments, three of them
United Funds
Group

"equipments.

shares.

The

Farm
r

considers sensible risks in

free from your

( prospectus)

dealer or

ENERGY FUND
INCORPORATED
for those who desire to

...

participate in the growth of

world demand for power and

energy.

sales

For

asset

net

Fund

Energy
sold

value

charge of

prospectus

any

ore

...

kind.

giving full
'

information, write to:

•

Possibly

ization

•

(DISTRIBUTOR)

coal

Broadway, N. Y. 0, N. Y.

as an

the

fied

progress,

issues,

were

diversi-

timely

mained

suggestion

finding

in
a

and

Allis-Chalmers,

Glass Retain

favor,

glass

was

Buyers outnumbered sellers

well-bought,

Good

Dodge.

buying also occurred in New Jer¬
Zinc,
American
Smelting,
Cerro
de
Pasco,
International

Nickel
see

(with

the

conversion

Babcock

sellers), Tennes¬
Corp., and Vanadium. Particu¬
no

lar bearish sentiment

was

directed

against Hudson- Bay Mining &
Smelting and St. Joseph Lead,
both of which attracted no buyers.
Canadian uranium

matic Tool,

com¬

funds.

Thus, Energy Fund's own¬
ership of 6,000 Algom stock and

Investors

Of El Paso Natural Gas,
i

Oils

in its

Well

Bought

in good demand.

The hign-priced

Amerada and Superior attracted a

preponderance
former

of buyers.
The
bought by six funds,
Street, which for some

was

with State

I1315

aiso

favored

Canadian

oils,

constituting

Superior

added by Select¬

were

ed American Shares

(a large com¬
high-priced is¬
further buying scat¬
among three** other funds.

mitment

sue),

this

with

Two hundred shares of this issue
were

disposed

of *•' by

Another

particularly
favored
was
Atlantic
Refining,
wherein four large initial com¬
mitments were made; namely, 25,000 shares
by Incorporated In¬
vestors, 20,000 by Pennroad, 10,-:
000 by Fidelity Fund, and 9,400
by Dividend Shares. Standard of
New Jersey and Texas were also
well-bought; Fundamental being
the purchaser of 26,000 of the lat¬
ter.
Socony Mobil Oil was pur¬
chased by as many as 24 manage¬
ments. While this
the

largely reflected
rights offering, three manage¬

ments

made

the

initial

issue.

from

Fund
bought the large amount of 140,800
shares, which was far in excess of
its
rights
participation.
Royal
Dutch, in which the total of buy¬
ing and selling transactions was
fairly evenly matched, was com¬
pletely eliminated by the Bullock
Group in three of its funds, at a
total of 35,000 shares.
*

Oil issues in which sellers out¬

numbered

buyers

all nine issues

one,

Sellers

selected
for their INCOME
and APPRECIATION

Chicago Pneu¬

predominated

diversified

securities

Joy, and Link-Belt they were

even.

majority of buyers.

possibilities.

Request

Papers Bought

the

statistics

cations,
'

face

ELECTRONICS

paper

bearish

issues

were

Continued

-W NEW

testing for as

FUND, INC.

—in

one

COMMON STOCKS

growth and

[as Possible,
Prosper

involi
Req(jes

Television Shares

Management Corp.

companies and many different
containing

1115 Broadway, New York 6, N.Y. |
C

Putnam Fund
60

| Address

Please send
N ame
Address

^^ity-Stafe

Distributors, Inc.

CHMY

Congress Street, Boston

Name

industries.

Dealer for Free Prospectus
all thefacts — or mail the coupon below.

Ask your Investment

135 S. La Salle St., Chicago 3, III.

,NVESTN,EyT

income—PREFERRED STOCKS and

selected

Free

Putnam Fund Prospectus.
—

comer,

w'tfl the
risk

Security

selected for possible long-term

primarily for income—you share in]
the ownership of all three with an investment in THE
PUTNAM FUND.
A "balanced" Mutual Investment Fund under pro¬
fessional management, THE PUTNAM FUND provides
a
diversified investment in more than 150 selected
BONDS

•

CURRENT INC0

Diversified Investment
■

overproduction

other

and

investment dealer

Phil¬

ard of Ohio.

DECIDING

TELEVISION-

included

lips, Pure Oil, Sinclair, and Stand¬

of this Mutual; Fund

your

commitments

Wellington

get the booklet-prospectus and
record

;

stock

in
Investing in

Common¬

wealth Investment.

20th year

selected

the
largest buyer with an addition of
8,800 shares. Four hundred shares

Wil¬

which split three-for-

interim

The ever-popular oils continued

tered

mining

panies constituted important port¬
folio
holdings by a number of

United

and

Dresser,

Shoe Machinery. In

stocks re¬

notes held.

sey

Prospect on

BEFORE

from

were

Phelps

Mow

Caterpillar, Combustion En¬

gineering,

Popularity

investment

inated

common

Equipments Favored

cox,

Container

Travelers

Machinery and Industrial

Pitts-

selling transaction.

Containers and

while

by five managements,
including two newly.,

mechan-

Creek,

Broad

purchased

the three active

Island

Pittston

with nary a

—

was

vestment,

indirect result of

burgh Consolidation, and

■

115

single

however,

Y. Stock Exchange

Members N.

buyer of Merck,
Chemical Fund to
tune of 12,300 shares. McKes¬
& Robbins was newly ac¬

largest

quired

Bought

the Suez crisis, as well as

;

picked

by Investors Mutual, which
also
bought 11,900 Merck.
The

Unanimity In Coal

RALPH E. SAMUEL & CO.

also

thousand

namely

Reynolds,

Street in the
amount of 18,000 shares, while 2,000 warrants, 2,500 Consolidated
In the face of the prevalent talk Eaton & Howard Balanced Fund Denison stock and
1,000 warrants,
of profit squeeze, chemical issues
closed out its 16,000 share hold¬ and 3,500 Northspan presumably
enjoyed broad and steady buy¬ ing. Eli Lilly was bought by four served as a major factor in that
ing.
DuPont was purchased by funds, including an initial com¬ fund's outperformance of the gen¬
nine
managements,
with three mitment by Investment Co. of eral market average during the
funds selling a total of only 800 America of 18,300.
Pfizer was past six months.
shares. Air Reduction was bought
bought by six managements, and
Tri-Conti^ental
increased
its
by five managements, two of them closed out by one. Schering was
holdings
of
Canadian
uranium
being new acquirers, with liqui¬ newly acquired by three manage¬
mining companies' bonds to $6 mil¬
dation by one management. The ments, with no seller.
On the lion face value;
namely, in Northlargest
buyer
was
the United liquidation side in this industry
span and Stanrock (the latter is¬
Funds Group to the tune of 46,000
were
Sterling Drug, with two sue with
stock).
;
^
shares.
Affiliated Fund disposed managements disposing of 29,600
of 45,200 of its holdings but re¬
shares composed of 24,600 by Af¬
Natural Gas Stocks Generally
tained 30,300 shares.
American filiated Fund and 5,000 by Com¬
Favored
Potash was 4-1 on the buying side. monwealth Investment; and G. D.
U. S. Borax & Chemical, on the Searle with two funds selling and
In this group American Natural
other hand, was completely closed none
Gas attracted buying by as many
buying.
V;;;
out by two managements, includ¬
as
15 fund managements, largely
ing the same United Funds Group;
Finance, Banking and
through the exercise of rights. In
with no buyers.;
Monsanto was
Northern Natural Gas six man¬
Insurance Popular
bought by six managements, in¬
agements
bought against three
Despite the highly unfavorable
cluding Wellington, and sold by
selling; among the buyers Fidelity
recent and current operating re¬
two
including
Chemical Fund.
Fund predominating with a new
sults of the industry, the casualty
High-priced Rohm & Haas was
commitment of 12,000 shares. Re¬
bought
by
four
managements, companies joined the stock life public Natural Gas was also in
companies in the experts' esteem.
with no sellers.
In American
American Insurance, Continental good demand, here again Fidelity
Cyanamid, whose market price
Fund
being a buyer, of 15,400
Casualty, Firemen's Fund, Con¬
rose
sharply during the quarter,
tinental Assurance, Great Ameri¬ shares; Niagara Share, as the only
profits were taken by five man¬
seller, closed out its holding of
can, Hartford Fire, Maryland Cas¬
agements, including a 22,000-share
14,000 shares.
Also in demand
ualty, and U. S. Fidelity were all
close-out by Fundamental Inves¬
was
United Gas, with Dividend
well bought. In the life field, the
tors; with only one buyer, in the
Shares buying 14,800 shares asd
blue chippy Connecticut General
amount of 1,400 shares.
Group Securities making an in¬
was
bought by Fundamental In¬
itial commitments of 9,000 shares.
vestors
and Commonwealth In¬

Chemicals Widely

—■

were

Ten

son

Broadway, New York 4

and

buying of Deere
International Harvester.
substantial

DREYFUS Corporation
*

is indicated

cultural situation

that direction.

Robbins

bought.

shares of Parke Davis were

Equipments Favored

the

17,600

this
Parke Davis, Merck, and

McKesson

Apparent rebirth of confidence
in recovery in the troubled agri¬

and takes what it

being

There was no sale of

heavily

hopes to make your money

Illustrated booklet

issue.

BOUGHT

fund in which the management

grow

GROUPS

INDUSTRY

Dreyfus Fund is a mutual

newly, the

amount of

the

largest

Alcoa, Kaiser,
all
well
bought; as was Anaconda among
the coppers, buying in the latter
issue neing swelled by the exer¬
cise of subscription rights. Among
the other coppers, sellers matched
buyers in Kennecott and predom¬
and

Drugs Well-Bought

quarter was centered in the air¬
manufacturers and the air¬

craft

Big Three in the aluminum

industry,

DREYFUS

Special Metals

Coppers Mixed

Bought;

added

317,206 shares of Class
newly-created under
El
Paso's acquisition of
Pacific
Northwest
Pipeline
Corp.;
less
than 140,000 Class B shares came
B

•

indi¬

bought.

page

Volume 185

.^Number 5634

7777

The Commercial amd'FinancxalChfonicle

(2077)

Changes in Gemmon Stock Holdings of 56 Investment Management Groups
(January
—

March

0,^%'

1957)

Issues in

which transactions by more than one management
group occurred. Issues which more managements sold than
Numerals in parentheses indicate numberof
managements making entirely new purchases or
completely
eliminating the stock from their portfolios. - (Purchases shown exclude shares received
through stock splits or stock dividends. '
Changes, through mergers also disregarded.)

bought

"t,

•

*4 •

;

No. of

-Sold-

4(1)

-Sold

No. of

67,500

^Agricultural Equipment

Trusts

Trusts
6

7,672

Union Carbide & Carbon______I

2d)

3(1)

5,000'*'

United Carbon

*13,000

International Harvester

■

.;v

Deere &

55,2001

Nd. of

6(1)

-Bought—
No. of
No; of >

jL— ^

300

-nr..

■.

None

None-

5(1)
2

4(2)

Bendix Aviation

2(2)

3(1)
1

______

A eroqui p_
.

•

___

10,920:

4,300

19,500

"V"

t 2,050

25,300

None

1,900

;

Airlines

Delta Airlines

52,600 "■■■

United Air Lines......

.ID-

Automotive and Parts
3

12,000

Borg-Warnei* __1
Briggs & Stratton

9,000

______

4,500

None

.7-:

29,500
4,500

2
2

Ford Mctoi*

___

3(2)

4,500

8,000

General Motors....

Kl)

3,700

Mack Trucks

None

Rockwell

1,500

36,500

24,000

5(D :
6

31,200
17,800

Fiberglas__

INVESTORS

2,600
3,700

Free of Pennsylvania Personal Property Tarn

Laboratories

McKesson

6,400

Robbins

None

17,500

Johnson

Timken Roller Bearing

967

Spring & Axle

___;

21,111
6,500

—

6,500

_____

2(1)
1(1)

4,000

__________________

.Pfizer

(Chas.)
Schering__

1(1)

4,000
None-

None

12.300

Smith, Kline & French

5,000

1(1)

1(1)
4(1)

6,300
15,900

U. S. Vitamin

5,000

Kl)

Warner-Lambert

9,200

None

Searle (G. D.)

6,700

2(1) V

3,000

Sterling Drug

4(1)

3,200

2(1)

26,800

5,500

3(2)
3(1)

Pepsi-Cola

13,400

International Tel. & Tel._

None

McGraw-Edison

None

3(2)

32,500

Armstrong Cork

7,200

3,000

3(1)

________

Carrier Corp
Celotex

1,300

General

500

Cement

3(1)

6,500

Lone Star Cement

3(2)..

4,400

Minneapolis-Honeywell

2(1)

8,000 j Missouri Portland Cement
3,940
National Lead________

14,800
7,506
100

3(2)

49,500

Otis Elevator....

250
2,200

4(1)

Penn-Dixie
U.
U.

Gvpsum
Plywood
Weyerhaeuser Timber

41,500

None

1,000

2(1)

5,000

Sherwin-Williams

14,800

None

Cement

3,000

American

None

7,000

19,700

None

National
Yale &

None

1(1)

1,000

3(1)

1,500

1(1)
1

35,520

3(1),

5(1)

Radiator

8,900

3(1)

20,000

2,600

675

1(1)

3(1)

1(1)

4(1),-

21,800

3(3)

1(1)

53,000
9,400

4(1)

8,900

Air

7,300

6(2)
5

16,000

6,198

3(1)

32,400
1,028
800

Dow
Du
,

■'

6(1)
2

Kodak

15,300
2,068

Powder___

Monsanto

Connecticut Gen'l Life Insurance
Continental
Continental

Casualty

None

Fireman's Fund Insurance
General Reinsurance—.

None

45,200
13,568
3,540 '

Kl)

1(1)

None

5(2)
2(2)

12,000

Gov't Employees Insurance
Great

American

Maryland

200

13,350

2,350

None

Bank of America

3(1)

2(1)

8,200

First National City Bank (N.

575

None
None

Fidelity & Guaranty—___

100

1(1)
None

None

Chemical

None

4(3)

21,000

Stauffer

Chemical__

2,038

2(1)
2

Why not Get the

2(2)
1

8,200

Borden

None

SELECTED

None

Campbell Soup

None

500

5,500

1,000
10,520

7,500

Corn

Products

Refining

10,800

General Foods___
National

Starch

13,000

—,

Biscuit

National

900

Products

AMERICAN

None

___-

SH ARES-inc.

None
...

United

Fruit

National

KD.

10,000

mutual investment fund

5,900

2(2)
2(1)

fied

Continued,

supervises a diversi¬
portfolio of American
securities, selected for the possibility of

page

long

—

EATON & HOWARD

BALANCED FUND

STOCK FUND

term

are

Investment Dealer

Building

Fund

possible long-term capital and
growth for its shareholders.

Prospectus

the above.

upon request

Lord, Abbett & Co.
New York

■

this

SAN FRANCISCO

ESTABLISHED 1914

your

(

—

Chicago

—

Atlanta

—

of prospectus and

coupon

name

and

beiow and mail f9

Selected Investments Co.

income

INCORPORATED

Prospectuses from

objectives

for FREE copy

address

Common Stock Investment Fund
Investment

HOWARD

GROWTH of capital—and

INCOME.

other information—fill in

Fund
A

Managed by

BOSTON

Affiliated

EATON & HOWARD

which

14,600

Dairy..

current

Rusa

about

4(1)

2,600

Kl)

BOSTON

Food Products

Spencer

24 Federal Street

INVESTMENT FACTS

3(1)

29,000
11,100

Y.)

Kl)

4,500

1,000

2(1)

EATON

Co.

■,

42 Wall Street, New York

Kl)
1(1)

None

Insurance

None

;

•,

1(1)

8,000
3,000

City Bank of Cleveland

Members Tiew "York Stock Exchange

2,000

Seaboard Finance

U. S.

Casualty

Travelers

„

1,240

15,000

Rhoades

None

1,000

Mellon Nat'l Bank & Trust
National

1(1)

None

Insurance.____

1(1)
2
\

None

Haas

Loeb,

None

2,000

Pennsylvania Salt

Carl M.

None

Industrial Acceptance Ltd

20,400

Chemical

None

200

Assurance

Quarterly Report

Stockholders available

None

500

None

Hartl'ord Fire_________

\T,300

Olin-Mathieson
Rohm

Bank__

Credit

3,000
6,000
3,500
1,500
2,566

8,500

Lindsay Chemical

4(1)

Manhattan

Commercial

2(2)

Tnterchemical

2(1)

None

Chase

Financial

2(1)

29,870
25,100

Machinery & Chemical

Hercules

5,000

C. I. T.

Latest

None
None

800

5,000

37,790

None
None

Guaranty Trust—

1(1)

Chemical__

1,900

(Newark).

5,000

None

9,300

Insurance

Associates Investment-_-v_

1(1)

Pont

Food

4,500

American

3(3)

Powder

Eastman

4(1)

8(4)

9,000

Alkali

^Y&anatYcij ^YYcY.

2(1)

12,000

Sprague Electric
Square D

S/funrY

rNone

2(1)

Reduction...

Diamond

None

127,700
12,800

Towne

Allied Chemical & Dye_.___
American Potash & Chemical. J*
Atlas

Electric

Q/er/t

2(1)
3(2)

685

1,000

Gypsum

PA.

3,000
2,053
11,100

5(2)

34,500

3(1)

1(1)
1

20,000
1,000

____•

20,100

Chemicals

3(1)

2,300

None

Noiie

BAILEY & CO.
BLDG., PHILA. 10,

Finance, Banking and Insurance

23,000

Nonedvhns-Manville

None

Westinghouse
General

38,000

Flintkote

None

1(1)

10,800

1
<

Instruments

4(3)
2(2)

14,200

Sunbeam

20,600

None

1(1)

2(1)

500
_____

Texas

7(1)

6,300

;___

Portland

Speriy Rand

3,500

4(1)

1(1)

1,300

6,000
9,300

5,000

____

58,000

-----

2(1)

TITLE

None

-4,900

Radio Corp.

Building, Construction and Equipment

LAND

None

28,100

None

29,500

845

Electronics

5(3)
None

GEORGE A.

29,600

Electrical Equipment

Coca-Cola

Dealer.or

1(1)

3(3)

2(1)

Send for FREE Prospectus
from your Investment

Beverages

; -

income.

3(1)

1,000

____

Merck

Parke, Davis

3(2)

None

195,900

:,A MUTUAL FUND in'vesting in a
diversified
-t: group of securities selected
tor possible long term
growth of capital and

4,000
—'

SOVEREIGN

20,800

8(2)

None*

—

Thompson Products

None

•

Stewart-Warner

1,375
3,000

•

Bristol-Myers
Lily (Eli) "B"__
Mead

or more.

;

Abbott

4,200

amounts of $30

None

2,100;

...

Kelsey-Hayes

23,660

•

systematically
in

, accumulated

8,400

Owens-Corning

42,900

34,700

2,800

^Pittsburgh Plate Glass-_^_v^__-

23,600

5(1)

None

J » Shares may he

Glass
Owens-Illinois Glass__L_w____^_

3(2)

None

10,000 '
1,000

______

Drug Products

2(2)

Chrysler
■

5,400

10,700

None

Can

8(3)
4(2)

7(3)'
6(2)

15,000

i__

Tel. FEderal 3-1000

None

Cup
Libbey-Owens-Ford
•

: ;

Glass
__^

5(2)

•

-,p;

>'■

-I-

•

'-•

Dept. O

None

Dixie

;

Co., Inc.

1033 thirtieth street, n. w., washington 7, 0. c.

rur

v: V

Corning Glass; Works_uiAi^|t

'.7,800
:

* \

■

Hocking Glass_____

Continental

5(1)
2

58,705

...

Anchor

;

Can

4,000"6,300

2,300

1(1)

J___ ___" 3,500
-1
34,120

Eastern Air Lines

27,900

2(1)
7,500

5(2)':

American

l>500

•

;

7:7;

?--

Northwest Airlines._

y American Airlines

None

2(1y

.4-

3,300
2,000

Atomic Development Securities

1,800
8,000

v r'- "

Coal & Coke '

Containers &
-

*.v

Island Creek Coal
Pittsburgh Consolidation Coal__
Pittston
L ir

2(1)
2(1)
5(3)
:
3(2)
■\ 9(3)

Lockheed Aircraft■_
- _7
' North American Aviation..h:.^^: 355,300
^ United Aircraft
26,000
_ _

3(1*

10,000
32,297

16,000'
31,000
3,517

...L.—

2(2)

1(1)

■1,460

Curtiss-Wright
Douglas Aircraft.

None

3,280

_,;_

iMcDonnell Aircraft _X____!i__7L 7:

2f275
4,000;

1 ■:'

None
_

;,r

None

G£T THE fACTS AND FREE PROSPECTUS * t;

29,600

4(2)

None

General Dynamics

Martin Co._i___

'10,300
1,000
40,400

FUND, INC.

None

U. S. Borax & Chemical—«

3(2)

96,240'

Garrett
•

18,000

I 4,600;;

Boeing Airplane

21,721
44,500

3(1)

/.:v

5,500

Koppers

•

-16,700
37,560
7
3,300.

b MUTUAL

Cyanamid...-..^^.-.j."

American

3,200

■;

DEVELOPMENT

of,

1,400
i v
t

No.

:ty

1(1)

[■(•']

Aircraft and Aircraft Equipment

ATOMIC

>;.*

No. of

Trusts

through

t •»

—Bought—

ATOMIC SCIENCE

in italics.

are

135 S. LaSalle St., Chicago 3, 111.
i

Please send m e free prospectus and oth er I
information on SELECTED AMERICAN

I
| SHARES.
I

CF-5

Name.

I
t.V

Los Angeles

Address_

City.

.State.

I
I
I
I

The Commercial and Financial

Chronicle

Thursday, May 2, 1957

(2078)

former.

Continued from page

►

■

»«

Opinions

Less Defensive
Great North¬

Zellerbach,

Crown

Paper,

Kimberly-Clark, Mar¬

athon, Mead, and St. Regis, and
Container found more buyers than

International Paper con¬

sellers.

stituted

stand-off between man¬

Changes in Common Slock Holdings

United,

No. of

ings of 4,300 and 37,200 shares,
respectively. In Niagara Mohawk,
M.I.T. sold its entire holding of

No. of >'

Trusts

continued

scale

American

buyer

and

5(3)

United.

5(2)
2

•

The same fund

block
Consolidated Edison of N. Y.

60,000 share

its

^ >Y

GROUPS ENCOUNTERING
DIVERGENT

Favored

in
Among the steel issues attract¬
Arkansas & Louisiana Gas, which
had been already strongly favored ing a majority of buyers were
in the preceding quarter.
The Allegheny Ludlum, and Youngstown. In Granite City and Sharon
largest buyer during the March
there were only buyers and no
quarter was Affiliated Fund, with
sellers. In Bethlehem Steel, which
a
new
commitment
of
50,000
shares.
A
168,000-share initial was split 4-for-l, buyers exceeded
commitment
by
Tri-Cintinental sellers by four to three, with one
swelled
purchases of American fund, Selected American Shares,
Gas & Electric.
Also quite pop¬ making an initial commitment.
interest

Here

was

ular were Central

Consumers Power,

greatest

& South West,
Houston Light¬

ing & Power, Louisville Gas &
Electric, and South Carolina Elec¬
tric & Gas. Greatly stimulated by

rights offerings was the buying in
Dayton Power & Light, General
Public
Utilities,
Ohio
Edison,
Southern

wherein sellers outnum¬

Issues

bered

In U. S. Steel there were

shares.

managements

four

Other

industry

merchandising

Mutual

Fund

namely

—

Kroger,

Stores,

Montgomery Ward, National Tea,
and Sears Roebuck; rubbers and
tires

and

Goodyear,

Goodrich,

—

Rubber, with liquidation of
Firestone; and the cyclical tex¬
tiles—with only buying in Ameri¬
can
Viscose, Beaunit, Burlington,
and J. P. Stevens; and two elim¬
inations of Cluett Peabody.

Founders

favored

groups

National

In AT&T

SOLD

INDUSTRY GROUPS

industry

selling

brunt

the

bore

the

While

group.

its

December quarter seven manage¬

ACCUMULATIVE PUN

ments had sold over

"
.

-4

■

mushroomed to 353,300 shares,
I"

shares by MXT.
69,000 shares by Fundamental

cluding
and
Prospectus may be obtained

from authorized dealers or

CORPORATION

of the Hugh W. Long

the

the United Funds Group,

Talatype DN 24S
DENVER

shares.

4,000

Selling also predominated in Cur-

Lockheed

Douglas,

tiss-Wright,

Aircraft.

Douglas

set

COLORADO

amount

and United

Biilding

of this

buyer

only

The

was

Invest¬

Diversified

and

ment Fund

issue

MUTUAL DEPOSITOR

243,000

Investors

Group.

FOUNDERS

1st National Bank

49,000 shares,

liquidation in the March quarter
in¬

INCOME PLAN

selling

The

ing 40,000 shares by M.I.T.
and

Martin

stood out among the issues

bought,

Dynamics

National

Investors

Aviation

each

mitments

National

and

making

new

com¬

10,000 shares in

the

DESIGNED
FOR

GENERAL

LONG-TERM

INVESTORS

Prospectus from

TRUST
your

dealer
A

mail coupon today to;

Boston-Type

Mutual Fund

Please send

from

Fund

INVESTORS PLANNING CORP.
of America

Prospectus
60

City

East

New

State.

Metals and Mining

Algom

2,000

42nd

York

Street

17, N.

Phelps

Dodge,
St. Joseph Lead

6,200

None

Guar¬

Fund.

Knickerbocker

the

None \
1; .
1
1
2(1)
None
2(1) Jk
3 .
1 Y■>;;
2(2) None
None
1

None

.—

Trust of New York, which
paid a 20% stock dividend during
the quarter, was also bought by Y:>;Y>>- |>I '.>yY>Y- .
Natural Gas
% 52,861
the
American National Gas
;____
George Putnam Fund as a Yl5
new
5,200
Colorado Interstate Gas
—
commitment, here in
the i 2(1)'amount -/ of
5,000
shares;
with
2(1)
33,000.
Consolidated National Gas_——
Knickerbocker also being a sel¬
1 ; Y100 •
Hugoton Production._i-———
anty

In the

ler in this bank issue.

cases

of Mellon National Bank & Trust

the

land,
Bank

three

•

City Bank of Cleve-.
of buyers and

number

constituted

sellers

America

stand-off.

sold'

was

Investors Mutual dis¬

funds.

posing of 25,000 shares, and Wis¬
consin Fund eliminating its 3,000
shares.T First National

5(5)
2, .
5(4)
3(2)

14JOO
9,500

—

/•>;

;2\>>
4
J.
2(1)
1

10,327
4(1)
3,000
1(1) 9,500 2 >>,
2,700 ,1 . , ;
3(1);
24,000 — Lone -Star Gas—
—————>46,100 < . 3(1)
6(3)
27,400 •
Northern National Gas.^———
14,900 - . 3(2) . X
3(1) V 20,400 :• ♦. Republic National
•> 14,000
1.(1) f.
2(1)
35,500 V South. Georgia National Gas—
None .
None :
3(2)
20,483.
Southern Natural Gas
5,650
2(1), v
3(2);- - 7,200
Tennessee Gas Transrhission... . None
None ;
.3(1),/ 24,800
United Gas——
1.000
1 Y
1(1)
317,206'
El Paso Natural GasJd—.——*.
22,760 ,: 4
None
Noney Oklahoma Natural Gas—13,000
2(2)
1
v
10,000 £ Panhandle Eastern Pipe Line,-. -1,500 •
2 s
,

•

—

City Bank

which had been bought
liberally in the preceding quarter,
now
found
four
sellers against
(N. Y.),

two

American

buyers.

Securities made
ination

its

■

European

3(1)

11,600

6(1)

12,015
1,600

also

made

while ?

6(1)
5(4).-

Sherwip.

only buyers.
In the former, they comprised the
United Group with 44,500 shares
were

with

American

General

•

10(1)
2(1)

2(1)

commitment. The
good buying of Armstrong Cork
also came mostly from the United
Funds Group (29,000 shares). De¬

3(2)

new

4(2)

noticeable in Lone

15,000 Y Amerada Petroleum
—Y
Atlantic Refining.
25,926
Cities Service
—■
9,550
Continental Oil
45,000
Dome Exploration (West.) Ltd..
31,805
Gulf Oil
—
—
—5,720
Hancock Oil "A"
9,000
International Petroleum—
26,611
Kerr McGee Oil
—
17,500
Ohio Oil

2
3

32,200

2(1)

Electrical Equipment and

this

24(3)

9(2)

27,487

split), and Westinghouse Electric.
A divided attitude prevailed to¬
of which Funda¬
the Putnam

6(1)
1

1(1)

33,000

and

16,000

shares,

Electric,

preceding quarter,
heavy

selling,

favored

respec¬

especially

Incorporated Investors
share

closeout),

nental Group

the

(a 60,000-

Tri-Conti-

(43,000 shares), and

M/I.T. (20,000 shares). Among the

Continued

page

Sunray Mid-Continent
Superior OR
—

65,400
24,000

1(1)

16,000
2,600

3(1)
None

Pure

None

17,400
None

5,000

Union Oil of California—
British Petroleum
Honolulu Oil
Louisiana Land & Exploration_
Phillips Petroleum
^

3,000

None

200
3,000

Co
Texas Gulf Producing.

11,300

- .

Oil—
Standard Oil (Ohio),

39,700

4(1)

42,300
36,000

Container Corp
Crown Zellerbach
Great Northern Paper.
International Paper
Kimberly-Clark
Marathon Corp
Mead Corp...

2(1)

6,500
12,302

4(1)

4,000
7,500

4(2)

19,100

500
5,800
2,700
10,300
32,400

21,000

4(3)

5,000

——

Champion Paper & Fiber

6(2)

1
*
2
1
.<
14
2(1).
5(2);
1(1)
1
1(1).
1
1(1)
2
2
2 _
7(1)

2(1)

Paper Products

3(2)
1
1
<
2

7,100

Oil

Sinclair

Paper and

48,800
v 2,000
1,500
25,400
500
3,000
1,000
Y 3,500

5,000

Oil

Texas

1,500

the

subjected

was

■

3(1)
4
2(1)

4
1(1)
2(1)
2(1).
1
2
1(1)
None
None
3

8,200
2,000
55,540
1,100
3,000
340
2,402
None
None
13,100

15,000
6,276

Standard Oil (N. J.)

620

—

Standard Oil of California
Standard Oil (Ind.)__

500-

category

265,215
15,400
3,000

•

to at¬
tract buyers only were IT&T, McGraw-Edison (which had a 2-for-l

ward Radio Corp.,

500 -1(1),

Oil

Royal Dutch Petroleum
Seaboard Oil
Shamrock Oil & Gas
Shell Oil
—
Signal Oil "A"—-—
Skelly Oil
Socony Mobil Oil—I—

26,800
4,400
10,500
8,000
5,050.

4
<

Richfield

500

;

was

Y:--" ^ .vr"s

4,405 <

65,400

and

Elevator

Williams there

Issues

—

Oil

5,000-share

IBM
National

■

—>.

16,500
—„- '
3,550
Cash Register—, 7,000

5,200 shares.

Equipment

and

;

new

Building, Construction and
Otis

Office Equipment

;

Addressograph-Multigraph
Burroughs^.
—

commitment

Y .r

200

complete elim¬

5,000 shares,

here

Putnam

NATIONAL DISTRIBUTOR

Street

—

—_

General

Name

tively; and towards Sperry Rand.

•

CFC-54

Aberdeen

MANAGEMENT CORPORATION

•

Equipment

Fund, eliminated their holdings

Prospectus and Literature

120 Broadway, Now York 5, N. Y.

> '

Uranium
.
_____
1,000
4
2,700
Aluminium Ltd, „
2,200
The largest blocks sold were 115^- I 9(2)V
11,300
Aluminum Co. of America..
,
5,700
000 shares by M.I.T.' and 40,000
;
4(2),
6,800
American Smelting & Refining ■ 2,500
by Wellington. .. ,.
12(4)ii
45,860-. Anaconda
Y__
—..."
200 '
3
>
3,350
Cerro de Pasco.————J— Y None ; .
Demand for Dank Stocks'
2(1)
•
5,800
Cleveland-Cliffs Iron
*—— . - 500
1(1)
1,000
"Consolidated Denison Mines____
1,000
Waning
2(2)
14,100
Fansteel Metallurgical—
; 215
While
some
buying of bank
3(3)
18,600
General Cable
1,500
shares continued midst the period
4(1)
23,500
International Nickel——
•_
* None
of raised interest rates, the pop¬
4(1)
5,500
Kaiser Aluminum—.-———_
4,500
ularity of the previous quarter
3(1)
3,050
Kennecott Copper
—
5,500 ,.
was replaced by considerable liq¬
2
Y>" 4,600
Magma Copper—.
200 \
uidation.
Chase Manhattan was
4
20,800
New Jersey Zinc.
———i- 17-,800 s
bought by George Putnam Fund
4(2)
12,100
Reynolds Metals———— —•—..
None
as
a
new
commitment
in
the
3(1)
3,000
Tennessee Corp..
, None
amount of 6,500 shares,' and
by
2
5,000
Vanadium Corp
—I.—„
500 ...
Blue Ridge and Nation-Wide Se¬
None
None
Hudson Bay Min & Smelt
—
13,300
curities (in the Bullock Group).
None
None
O'okiep Copver
——
-500
The only sale was 500 shares by

mental Investors and

DAVID L. DABSON—•

3,500
" 5,000
3,000
2,300Y

1(1)

Electronics

; POSSIBILITIES

Dept.

1(1)

Cement, National Lead, U. S.
Gypsum, and Weyerhaeuser Tim¬
ber.
On the other hand, selling
predominated in American Radia¬
tor,
Johns - Manville,
National
Gypsum, and Yale & Towne.

For Income

Star

GROWTH

2,800

2(1) 2(1)'

those liked. On the other
hand, General Motors was again
subjected to concentrated selling
by eight fund managements whicn
disposed of nearly 20,000 shares.

mand also

FUND

among

importantly off¬

was

by some heavy buying, includ¬

General

ABERDEEN

Chrysler, Ford, Stewart-Warner,
and
Thompson
Products
were

and National

Liquidation in Aircrafts
North American Aviation again

SYSTEMATIC|PAYMENT PLAN

Parts

—-Sold
No.of
No. of I.
Shares -% Trusts

during the quarter included
broadcasting — namely ABC and
CBS;

Utah Power & Light.

:Y YY.;.

First

Utilities, and

Other Popular Groups

England

International

side

each

fence, with Wellington
substantial seller here also.
the

American Tel. &

buyers were New

Electric System,

Tel.,

the

seller,

Penn

West

and

Co.,

Electric.

heavy
amount of 40,000'

Wellington Fund was a

18,000 V 2(1)-;
1,996
1
2,252
3
10.000
3
"13,400
2- .'
Combustion Engineering—
19,200
•. 2(1) I
Dresser Industries——41,000 Joy Manufacturing _________— \ 4,000
2
Link-Belt
_
30,500
2(2) '
United Shoe Machinery.
—
6,500
1
Black & Decker—
I
425
2
Bucyrus Erie
„————
13,000
2(2) « ;

22,500
27,200

5(1)

•

Automotive and

Steels Largely

4(3)

POLICIES
■

Interest in Utilities

15,400
Allis-Chalmers —
-—I
6,264
American Machine & Foundry—
10,560
Babcock & Wilcox——16,600
Caterpillar Tractor—^———
7,000Y- Chicago Pneumatic Tool.

4(1)

large-

■//'"*

Machinery and Industrial

quarter, also joined the group un¬
der selling pressure.
Only Inves¬
tors Mutual

I
-:Y/> ;.'■>>>/'/>

—Bought—

against

Eastern.

and

strongly favored in the preceding

England Electric the
Scudder Fund sold its entire hold¬
New

eliminated

agements.

especially

group,

American

115,000 shares.

Selling pressure prevailed in the
airline

ern

;

*"Y

Airlines Freely Sold 'Y*>

Funds' Portfolio Policies
and

divided Continued from page 33

were

Boeing and Bendix.

—

32,300
17,000
4,600
None
17,073
None
2,000
10,362

1(1)
2(1)
2 None
6(1)
None
1
3(1)

Volume

Number 5634

185

The Commercial and Financial Chronicle

—Bought—

-Sold-

(2079)

—Bought—

Sold

Continued

No. of

Trusts

Shares*

Trusts

2,000
17,200

2(2)

io,500
34,800
6,300

Rayonier

20,000

Union

„i*

7,100

Bag-Camp
Warren (S. D.)_

2,900

West

3(1)
2

■

}

al¬

;

St.

Scott

;

20,000

Regis Paper.

5,000

None

7,800

None

Virginia Pulp & Paper

None

7,700*

Paper....

None

700

None

American

7,900

10(7)
4(3);
2(1)

Water Works

Arkansas

137,000.
12,300
35,700

Louisiana

Gas...__

Carolina

Power

23,500

Central

Illinois

67,000

..v-

6(1)

Central

Public

5(1)
6(4)

Consolidated Edison
Consumers

41,550

i: 36,200

Florida

60,000

Power

Power.

60,722

1,000
25,282

Hawaiian

5(2)

2(1)

16.394

3(1)
2

3(1)"
2

Kansas City Power &

Kansas Gas & Electric..
Kansas Power &

Louisville

Montana

___

1(1)

2,900

None

4(2)

15,800

3,700

None

7(1)
5(1)

18,646

Goodyear

2(2)

5,000

4,300

14,300
16,300

Pacific Gas & Electric
Public Service Electric & Gas

36,600

San

64,209
12,400

5
2

10(1)

2(1)
2

•' i'

None

4,100

2(1)

None

Service

;

None

American Tel. & Tel

3,000

KD
1

International
New

9,000

Sharon

18,500
4,200

6(1)

31,260

Columbia

27,101
1,700
1,100

Columbia

2(1)

3(1)

Zenith

10,000

None

,12,500

Cluett, Peabody

6,700
5,000

American

4(1)

None

3,900

None

200

3,000

1,500

Illinois

14,700

Centralj_ir__lii__—_.

3(1);
1 ..v.':*

20,000
8,000

2(1)
1(1)

2(2)

None

15,300

Norfolk

None

Western....

Northern Pacific

2(1)

92,000

Railway..——

2(1)

MUTUAL FUND SHARES
A

1(1)

2,600
5,800

complete 5-hour training

Halliburton Oil Well Cementing
International Shoe.
Johnson
Metals

& Johnson

Controls

Transportation,

highly favored iii

with

the

sellers

"V*

investment

diversified

preferred
selected

bility

and
for

funds with

holdings

bonds,

common

income

growth

Prospectus available

and

possi¬

principal.

of
on

stocks,

request from:

SECURITIES

CORPORATION
400

Benedict Avenue

4,500
3,000

Outboard
Stone

1,000

None

Marine
Webster.

Grace

(W. R.)
Transamerica

1 10,000
None

—

Visking

the

send

prospectus

Axe-Houghton

Funds

1(1)
1

900

11,300

3(1)
1

2(1)
KD

39,400
11,500
26,430

__.

None

1,600
16,400

Please

20,000
2,000

Wrigley

None

6,700
Corp

Murray Corp. of America
Newmont Mining
Newport News Shipbuilding

4(2)

3(3)
2(2)

PHILADELPHIA
FUND

course

New England

RCA records.

SALES TRAINING,

ORGANIZED

Life Fund
A balanced mutual fund

Fund

A Mutual Investment Fund

ADVERTISING

times

M,
lutual

2(1)

Mfg

INC

man¬

3,000

Bra

HIP

Westing-^

Tarrytown, New York

9,500

HOW TO SELL

Jfcv't'

was

with three

quarter, met with,

—

None

12,100

None

City Southern.

tWO.

1,000

None

Iii1

500

None

1,600
5,800
5,800

Missouri Pacific "A"

Southern

December

AXE
-ir.

—i

7,000

2,500

Kansas

17,600

Tobacco

Gillette

15,500

19,600

22,450

2(2>

Emhart

2(1)

12,900

4(1)

6,200

None

Colgate-Palmolive

2,700 :

3(1)

16,615

2(1)

None

None-

the

Miscellaneous

1(1)

■4,000

3(1)

1(1)

24,000 ;

Liggett & Myers

<■' u

Northern.. .7——__

1(1)

Atchison, Topeka & Santa Fe_
Chesapeake & Ohio
1__
1

which had been

Tobacco

None

Great

Lowenstein (M.)
Stevens (J-. P.)_i_^-.^^_—;

None

4,700

Industries

I^one

2,000

4,00 Or
.

house Air Brake,

Railroad Equipments

6(3)

Burlington

3(2)
2

1,600
25,800

11,300
13,200
■'6,000

Railroads

Union Pacific.

1(1)

None

Radio

and

Paramount Pictures

1,000

200

None

L None

36,900

None

15,200

2,300

5(1)

Sea¬

outnumbering the buyers, three to

None

2(1)

Island,

Rock

Line, Southern Pacific,

None

Steel

Beaunit Mills.

-----

Motorola

Chicago

profit-taking

American Viscose

Line,

2(1)

1,500

3(1)
2(1)

Coast

General American

Kl)

5,350

None<

its

None

2(2)

Atlantic

predomi¬

5(2)

1(1)

all

agements buying and none selling.

Textiles & Textile Machinery

Broadcasting "A"
Broadcasting "B"

Magnavox

Laughlin___

Youngstown Sheet & Tube
Carpenter Steel
Republic Steel

34,200

sold

Selling

None

U. S. Steel

None

sold.

None
1,700
7,500

Steel
&

two

State Street

40,500
5,000

City Steel

11,500

6(1)

Inland
Jones

2(1)

2,300
77,700
10,400

England Electric System„

Amer. Broadcast-Paramount.—.

34,900

Granite

9,700

2,900
1,500

Steel

10,700

None

Steel

Bethlehem Steel
Crucible

manage¬

and
was

Here the favorite

Steel

4,242

Radio, Television and Motion Pictures
4

Armco

10,800

4(3)

Steel

J 4,900

Utah Power & Light

10,000

7,700

mixed

3(1)

2(1)

None

_—

board Air

6(2)

13,000

Rubber—.

Allegheny Ludlum

184,940

None

40,000

Utilities

nated

ern,

2(1)

Electric

Wisconsin Electric Power.,.—
Wisconsin Public Service

shares.

There

B. & O., Chicago and North West¬

45,000
7,000

Washington Water Power

None

-Vi-V''

22,500

.__

2,000

2(1)

2(2)

15,700

Union Electric (Mo.)__
Penn

7,000

-tl

Atchison.

which

88,000

9,300

Texas Utilities

2,000
6,200

None

West

2(2)

None

Southern

None

Southwestern Public

8,000
64,481

11(1)

51,200

Diego Gas & Electric

Firestone

21,500

2(1)
2(1)

None

South Carolina Electric & Gas..

6,000
4,700

;

Southern California Edison

113,354
11,500

4(1)

None

Rochester Gas & Electric

4(1)

1(1)

2,000

Public Service of Indiana

22,000
11,600

4,372

1,500

5(3)
21(2)

Philadelphia Electric..—

None

29,100
1,661

4,100
13,146

Ohio

1(1)

126,100

8,700

None

100

Northern Indiana Public Service

2,000
2,000

Investment

None

three

bought

Among the latter

None

Marshall Field

Pacific

1(1)

Tea—

interest

and

toward

Northern
ments

Western.

Railway,

reaction

None

and

particular

Rubber and Tires

2(1)

None

Edison__

also

Southern

None

10,000

Safeway Stores
Sears, Roebuck—

None

Niagara Mohawk Power

11,000
63,550

1(1)

Norfolk

None

1,000

'^"Vr

3(3)

None

Goodrich

None

___'.

•

Among the carrier issues en¬
countered, buyers only were:
Great Northern, Missouri Pacific,

2(1)

5,000

3(1)

10,000

Kroger

•

None

8,800
11,400

N. Y. State Electric & Gas

Stores—

com¬

Union

None

3,500

National

Grand

National

Electric._;

Power

First

4,000

■

15,000

Federated Department Stores

5,500

3,500

new

Railroads

1
None

and

;

Investment

were

9,100 shares, and Well-*ington with 7,000 shares.

85,300

Middle South Utilities

Gas

3,500
1,800;
8,400
20,000
-

buying GE

mitment

10,700

Stores

Light

34,400
•

Allied

Light.

21,000
13,400

2(1)

5,000

3,000

2.7,800
14,000*.

630

4(4)

10,500

May Department Stores...
Montgomery Ward

In First Quarter

was

4(1)

,»

Retail Trade

); 1,211

„

——

4,800

* "•

Power..

Interstate Power..

2,400

;

2 ;V:V

Illinois

10,000

'Si-

3(2)

16,100
-i- None

265

2.500

v.-3,800

—

3,000

Telephone

Houston Lighting & Power..
Idaho
Power..__

22,750

General Ahier. Transportation
General Railway Signal

2(2)

Railroad Equipment

3,000
7

None

Unjon Tank Car.
Westinghouse Air Brake

1(1)

3,000 \

General Public Utilities

Co. of America with

•cUj.a

\ 2,500

seven

3(2)

-T

1(1)

; 1,245

Florida Power & Light

2,000

•

(N. Y.)____

.,"1

Dayton Power & Light—7

V 8,300

20,000

;

2(1)

35,000
38,500
27,000

Air Line

Southern Pacific-—
Union Pacific

•5,071
3(l)a: -5,100

None

Nong
6,000

Columbia Gas System—

3,000"

Service-

West—_

South

1,000

6,000

2(1)

450

Louis-San Francisco

Seaboard

;

2(1)

;

None

Policies Less Defensive

25,600
2,300

1(1)
2(2)

Ohio

Funds' Portfolio

3,400
30,000

St.

J,000

; u-':

Line

Chicago. Rock Island & Pacific_
Y., Chicago & St. Louis

1,600

None

70,000

Light

2(1)

None

Baltimore Gas & Electric

■

Baltimore

None

1„;.

81,800
5,030
12,000

Coast

page

Chicago & North Western

30,000

1(1)

Public Utilities

American & Foreign Power
American Gas & Electric..

35,000
179,000

Atlantic

12,300

None

1(1)
3(1)

Western Pacific

2,000

2(1)

from

-providing
for distribution of income and prin¬
cipal in accordance with an individ->

1931

ual trust account

MANAGEMENT

for each investor,

year you get forceful ads, letters,
meeting material, phone selling, tax ap¬
proaches, Financial Planning know-how, hiring,
training, prospecting aids and more in MSS.

>*■?

FINANCIAL PUNNING
A

ibers New York Stock

change, Arr.er.

xcbange (Assoc.)
■

t.VOORKIS&CO.
WOODWARD
IINGTON

BLOG.

special monthly service devoted to
concepts in the employment of
money for tax-savings, estate creation,
income, etc..
Advanced thinking and approaches for the salesman with -his eyes on
the top of the ladder.
«*,
new

Stock

Ask for details and how
you can
have these proven services with no

•

5/. D.C.
r

out-of-pocket cost.

Prospectus

National Distributor

Request

CO.

123 South

Broad St.,

NEW

YORK
.

MASSACHUSETTS LIFE FUND
DISTRIBUTORS

Telephone: KIngsley 5-3311

your

Investment Dealer

BOSTON

Philadelphia 9

Prospectus from

Incorporated
Founded 18 fit

Distributor

Truster

Founded j8i8

Coffin & Burr
FAHNESTOCK

CJfosfri/afffif#

ffniuiance

HARTFORD
.

KAfaSSacAnSe/A

PORTLAND

BANGOR

State Streht, Boston

Mass,

The Commercial and Financial Chronicle

(2080)

Continued from page

that free markets should be looked

upon as

the central feature of

our

stage

cessiui

private enterprise system."

dents

and screen,
writers and

among

Thursday, May 2, 1957

tablish your credentials, when you
communicate with him, that any

sue-

among

stu-

whose

generous
monthly adverse effect on your business
is regularly remitted affects a lot of
people, including:
well-to-do parents,^ there is
Your own employees — count
Come From?
relatively fifty times more totali- themIt is common to argue that the tarian lunacy than among the poy- v Your
shareholders—coupt them;
people demand * all these inter- erty-strickerrf Okies,;, the needle-" Your '
customers 4*- courit them;
ventions and services from gov- 'workers of unemployed miners.?
Suppliers and their employees
ernment.
This is almost 100%
Then he went on to

Goveinment and Business

allowances

Where

Does

the

Pressure

of bankers and other
lenders.'Critics of flexible
would further reduce human free- interest rates are making a mockdom and create more "social over- ery of one of the essential funchead" in the form of laws, regula- tions of the government namely, hokum and bunkum.
tioiis, policing, bureaus—on and to maintain an honest currency^ _ The Evening Star, Washington,
on
While the 3% rediscount iate, D. C., (Feb. 21, 1957) carried this
This set of ideas on economic existing in all 12 of the Federal headline:
Pressure
Sought
on
interrelationships has been inade- Reserve banks is the highest in ,Congress forJBasin Funds.
quately discussed in the United nearly a quarter of a century, tnis
The news story went on to say
■States by those who favor human rate is not high by historic stand- that
"The emphasis on getting
freedom and a free economy.
ards. Prior to 1930, 3/o was the funds to complete the Engineer
Oninion noils have found that a bottom of the range Of rediscount Corps' study as swiftly
possible
of income

control

direct

Question

the

Such ! controls

instalmentA credit.;

money

maioritv of nersons for more

vast

than

when

"Vpc"

crnd

consistently

decade

"Do

asked-

favhr nriee controls?"
lavor price controls.

have
vou

What they
vvimt wey

accounted

onlv

for

income

33%

the

•

them;

and

Your small business associatescount them!

tone

character-3

and

What

ministers to; theother Americans
forms

and

the

consciousness

than

meaner

of the rest of

and
likes to do good in (he best
of the word, but he is in a
any

even
sense

us,

Stronger positfbn;te do ^afl^cxtizebs
infinite

harm)..

Arid

the entire nation.- Just cut these
thousand key intellectuals out of

member, whatever
of
any
particular

the national body-politic and the

*—«■

...

interested ^irst,
in one thing \:J~.

1,000; vdtes (although he is

professors, writers, bishops think,
write, preach, is handed on by
300,000 teachers, journalists, and

o '

relatively small group of irrteilec- "' 'the politician
tuals who
give that, society its lristand always

«-

everv i society,
be ' it
democratic, there; is a

..wlthin

ever

fluctuations. Under boom condi- stems from the remarkable distions in earlier periods the rate play of public apathy. When the
went to
in 1929 and 7% in Engineers asked Congress for
1920. In 1955, interest payments money to start the survey on the

actually want is lower or reasonoble prices. They see or understand only one way to get such i"

—count

say:

least he

always

politician,,

cotirith lri

can

re-

think

you may

.fcontro-

agair

Pat0"f' J>iese ate,noum
TheSfactsshould

iXu&S
-interest is the price of money.
Unless we can get more indi¬
viduals

all

viduals

in whom

the

across

confidence,
anatomy cf

recent years

Thninrht
lnougiH

the fact

Needed

The

average

person

can

never

its effectiveness depends not on
on the social im-

that the demands for

legislation, appropriations

Leaders
readers

portance of its readers.

government programs do not
come from the people.
As a mat^er of fact, the masses never de-

which has made

3,000
ists

^Xtot-^ertheselntricnclef Th3""

„ -otoc
M

the
me

regimentation
regimentation

thought-leaders in every community, whosejudgment and pubf.
h

drift bv default into

mav

controls
coimuib

and
ana

SMweSXSrt'ta market:"' "

deflation)
f Instead of
'
unquestionably is now at hand in
being used to pro^ u g
Treasury and the ped_
mote lull-employment,
.maximum
Rese'rve system. Enlightened
(and

ar£?ued.

extent,

some

our

Raymond Mo ley
way:

have

been

make

the
thoughts of this great pedagogue

stage of conversation and discussion, the politicians latch on to
them and make them their own.
Politicians are, by definition, peo,

laws

the

Their

fundamental

J^lem to not e(lucatlon or thirst.
1118 votes.

bave activized the transmission
Business is not blameless for the
belts of our educational apparatus, social-political drift of the times,
In defending themselves, 'the op- Much more could have been done,

*—

l--..-_

remove

the archaic

improve the

mote'

fnTereVt"

the

?nd

investment

handful
flip
the

"the

P€nsable to strengthen

lending

classes

and

«J^e *h'
moiG CBiclossly,

giant corporations at
of
ot

pynptmp

expense

businessmen

farmpr
laimer,

thp
the

and

^rnall
smalt

Vime

the

195fi

nmtK

tow

id™

There

Thus

For

Con-

Oct

nftonffressman said that this

nolic'v^

"has

nockpts

home

teen

^all

diDnlnc

businessmen

sumers^ md Sacthwlnterest

rates

vvhich favor tenders "
Thus

flattens

the

!faimerxhnd-con-

owners

etear than

ofsound

the foun-

monev-maxi-

are^mundeiSood even^hteh

mum-emplovment policies
nerfeette
Dteees

the

u's

Since the

Federal

Reserve

Treasurv-

Accord

14-

lot

works.

naive

k,,„4

people in Washington and in business who believe that the demands
and

example, total loans and in-

still

Wooliinnirti-.

the

spending

pressures

for

programs

all

1951.

general, to make it easier for the

mass may
insignificant,
the

people in the local community to

Though its

relatively

catalytic agent will basically

these

are

own ways,

business

nrohloms

own

their

unfettered by outworn

practices

and

archaic

laws and regulations.

human

preserve

their

meet,

alter

e larger chemieai process.

interfer-

and

obsolete

a more super-

fiscal argument than to point
the relatively small circulation

Sunday dinner.
are

prop-

laws, correct the
mortgage
lending
arrangements in the 48 states—in

scarcely have found

liberty and freedom, we cannot
leave it to the politicians, their
Paid agents and government bureaus. We must leave it to the
People who are students of liberty
and freedom, who understand, that
liberty is indivisible, who understand that the free market not
only in ideas but the free markets
in goods and service including the
money market arc integral parts
of a free society..
-

vestments of commercial banks ences with the free market come
rose from $ls6 million at the end from the people. This delusion is
ef 1954 to $165.7 billion at the end the result of domestic brainof 1956, or by $9.8 billion.this washing. Lord Keynes had a good
same two-year period, however, deal to say about the nature of
total private and public debt in- ideas and their origin and how
3.48$desaerc
billion. In 1956, pri- they are set in motion. He Said,
vate and pubUc dcbt jncreased by for example:
.
approximately $32 billion; while-file ideas of economists and
the rise in commercial banks'loans: Political philosophers, both when
and investments was only $4.8 bit- they are right and when they are
"on. In other words, in the over- wrong, are more powerful than is
whelming majority of loans, the commonly understood. Indeed,:the
borrower and lender arc perfectly wortdjs vuIrttte else. Pfac-

reiterate

than it has led it.

their

actually, the Federal Reserve has
followed the monev market far

High Places"

A number of members
B»«

ttlG Admin

for

.r.i-iln

his constituents, he
would promise them missionaries
among

istration is blamed for light money,

employees.

(page 43.)
"Even

nibals

°£ThJ1 pXal'^efve

men

seldom

are

cated by torn simply because

certain

convinced

our

^ Sen %£ splendent.

these programs get to

experience that

meager

per

put it this

once

•—

who

Ninety-nine and nine-tenths

—

1957.,

na¬

being more appreciably and
enduringly than a novel which is
read
by
2,000,000
housewives.

from for new programs? New expenditures? They come originally,

„

essence

" id£s ahd'^

The power to prevent inflation

the Joint Economic Report of 1955

2,000 journal¬

tional

come

rate

the

telephone company
votes than its 4,000,000
subscribers?'
-Barron's, March 18,
have

The book

impression

teachers and

alters

"Does

the number but

and

new

land, indi¬

the people have
understand
the

in better perspective.

Informcrl
Informed

...

Nor is it too

all

fronts.-

thought

late to do
The basic

the

among

world

conservatism.

intellectual

throughout the western
toward

more-

drift

Now

is the. time to

capitalize upon thi.
drift by working with intellectuals, by nominating and electin
better legislators .and supportiu
them

elccted-al all levels

once

government-local,: state and.na
ttonaL

we.

eaci*

begin

s«me-

This calls for dedicated spokes- where.at the local Level,.within
men who will allocate several few years we eanj change : th

Federal

striving to protect
of the dollar,

power

at its

disposal

when everyone is

trying to borrow

who-hear voices in

The"U.

the air, who

Chamber"

b'ommenc '•••■

omv^sT^rentte ^te0°tord^ too Nevertheless, because of the^- are ' distilling their jIirenzv from published, for example, The" Ethics
Sh
hlvoTJIf fnll hm alleged tight money policy,-jn-some aeodemic scribbler of a few of Capitalism and Free Markets
with plenty of ad¬
ploymentj wmefwn^ h7s to give".- numfr?We efforts are made-by
back."■
-- and Free Men,/with ntento nf Qd„nd Free
ditional
By raising rediscount rates

politicians and government bu-

re-

dling open-mTrket operations3^
which

a. w

nmmprpial
commercial
commercial

soundness

does

hank
bank

be preserved.

the

not

add

credit restraint, via direct loans,
™ t»k}"g on state and local re-

sponsibilitics aiiu
sponsiuniues and

the

reserves
the
reserves, .trie
dollar tends to
reserves

But this

means

r» rrntvi v\t

renuYrOfi" tn"rav7nm pwh at "hi p-hnr attempt to create
required to pay somewhat higher
a

avahta

rates

;v,w"

but,

perhaps,

bor-

w' rXw id

mmethi^

iZndid

„

concentrates

qud

Aeain
Intended. Again, something has to
has to

stringencies

6lve-

economy

has

also

same

time,

the

that much

it thi

pur-

economy, the

become

fiercely,

one
"<ls also oecome one

wav.

Buch

inevitable

period

that

will

lenders

in;

get

a
better
return.. But this is not the objective of a sound money policy. It is
an

incidental effect.

interest

rates

1 For

careful

tend

Increases in
to

raise

the

trol

see:

ChambeV
States, 53

The

appraisal

Price

50c. :"i.

order

the

get

Hutchinson, Kansas.

among

The Kansas

key,

use

them

sub-

consensus

opinion,

all

brands

vnough

«*nd -you haven't

many

votes

yet,

without

tending to do

so.

has

shelter provided by government, prevalent among rather well-fed
the more difficult becomes the intellectuals. • A serious statistical

many r other

situation of.those not
a

free

:
of"'theu °United that not
tliatnot
..

It^js

so protected,

society. ^ is axiomatic
he

everyone can be sheltered
sheltered,
evervone

ran

understandable,

therefore,

checkup would certainly disclose j show
that

the

rrvotcnnciitcin

metropolitan

editorial

staffs

ncmicnonorc

him

\ market

o.vxn.xc*f

people.
that

your

The

with

Co.-Mr.

when

You
^

the

must
free

business is hurt.
"K..f

Fee

Small-Milburn

Hutchinson

located

with

the

George

Hazelton

office

Walcott

wRl

Buildin

Ewald- and

Floy

Managers,

'*
m

^■

|||iLi_

■

UKSIft-Vt IrattVSf'.vOIIIS

in-

w«n"v
among; it affects not only you but many
college* teachers,-among the stars othera. Make it-dear-to-him, ^s=

newspapers,

Brothers &

been

Because he fig-

free market he may hurt a great

Vice-Presidents / in ; ch
was
formerly wi'

their main office.

anv-

necessarily

Markey

Stern

you

.vay.
This,' in one sense,-is the
nighest flattery, but you ought nol
to let it sro to your head, because
if you let him alone, he will ruin
you

Mr.

he thinks you are smart
to take care of yourself

oecause

City, office will

located in the Riss Building, wit
Mason H. Feese and John B.

hearing from

ignore

offree
uince

Politicians

Kansas—rSmall-Mil

Company, Inc., .members

Mfdwest Stock Exchange,
^ opening oijr bran,
"
""
in Kansas City, Mo. and i

the

0f totalitarianism,1 and especially | ures .you can take care of vourand labor available to others who Bolshevism, are not social expres- self,"
you
must
demonstrate
to
must rely upon the free market, sions of economically distressed him when he acts in
way which
The greater the amount of special underdogs, but rather diseases hurts your business and ruins the*

-l

tract from the credit, materials,

Price

ofCommerce
Pp^

time

Convincing

"is simply untnie teat the disin- Ihe politician may

each

WICHITA,
burn

/vuf

Currency Defended

an'd

opinion leaders,

politicians:

the

tegration of democracy is the resuit of merely economic dislocachasing power of the dollar is
.e alternative^ to free mar- tions. It is simply untrue that
preserved, all dollar savings, such ke£8.,1? to resort to government
Nazism, Bolshevism, and Fascism
as
mortgages, bonds, life insur- subsidies, guarantees and tax ben-, are the predestined
reply to the
ance, savings deposits,' have their eflts- These may shelter preferred appeal
of - hungry,
unemployed,
values preserved.
;
groups and meet apparent social indebted farmers and underpaid
L "
,\i
: needs> but we must not forget that toilers.
Contrary to the general I
Honest
the

TTp

therein.

beginning.

politicians, you must estsibpoliticians
the balance of the of its outstanding challengers, for ush your credentials .with them.

full employment

cited

°"ce tjiis has been done, the

child of modern civilization, the
intellectual

make

tefCnee

addition to being thej>roblcm'

iia

can

oeeo o war oi '• inttuence fefin%h°eTotmutelv
"YL fe t in the community
"2"
The fourth chap-among the intellectuals, thought

every
preferred po-

...

interest

Vice-

Board, made it clear that

•

Balderston,

ClYirmYYof thTFcderar Res'e'^e !!?c P.r?l?!P.m child o£ democracy,
^Iwirnidn
rcaciai rccscrvc jje gaid ^hlg.

potential- borrowers or
v/ould-be borrowers are not only
t

Canby

Anvone

mnortint'
,■ ,
^
Tnrlnrken/leneo

Ind.ependeinee.

faghions

that

some

...

other utviuus
in umer devious

references

Quotes Ex-Communist

(Special to Thk Financial.Chronicm!*
*

ST.

LOUIS,

Mo.

jr-r

Eugene

-•

Meyer has become associated wit
stern

Brothers •&
«4roaf

,-"315 Nort:

formerl"

*e\en™
"Vice-President" or-A
Vice-President of the Municipri
,

Bond ConkJiatipn..,

.5/

'♦

Volume 185

Number 5634

The Commercial and Financial Chronicle

(2081)

Continued

from

page

tection

to, the unfortunate bond¬

holders,
follow

Effect of Recent Conit Decisions

but

will

tion of

obliged to
vacillation of the

every

courts, including those
changes of opinion which might
take place at any time while the
Federal

case

States Now

$60 Million Issue of

setting up
tion of

Stale of Ohio Bonds

valid¬

Offered to Investors

from

defense the viola¬

aged

municipality

as a

underwriting syndicate
by

Bank,

provision of the State

some

Constitution.;

of course,
protection to the
but they would not

bondholder,

evidence

Such statutes are,

measure

prevent / the

Federal V

however, was completely swept contractual obligations by ;subseCourts
"away by the decision of the Su-! quent,; decisions
of ; ,t h e - state • One! very
illuminating conse-s
preme Court of the United States courts. If the bonds were,ivalid
quence
of the decision in -Erie
in
Er\e Railroad vs.'". Tompkirys, ^ under the law of the state,,as it Railroad v.
Tompkins was the atSince mat .decision, if you bring: existed at the time
they were is- titude taken by the
attorneys for
a suit upon, the bonds in the Fed; sued, it would not countenance the
defaulted municipalities after the
Meral Court, the Court miist ascer¬ invalidation of the bonds
by, sub- decision, compared with their attain \^hat; is the law of the state sequent .decisionsr
;of the,';; state titude prior to the decision. DurMn which the defaulted municipali- courts.
/•;>'.
V ihg the late 1920s and early
1930s,
;ty is'located, and if the courts of
The doctrine of Gelpke vs. Du- when I. was
-'
suing municipalities
that - state -do. notrecognize the
buque, however, is another of the in many parts, of the country on
estoppel doctrine, the municipality
Casualties resulting from the deci- defaulted municipal bonds, I was
may set up as a defense to the

conclusive

ity.

appeal..... ,;,.y

Turn to

recital in the bonds that

they are issued under the enabling
act, which recital is declared to

state

<Hi

The

Chase

Company,
The First National
City Bank of
New York and
Halsey, Stuart &

In conclusion I want to
say that
the security of state and munici¬

suit

'any. failure to

the

comply with

Sinee

that

Tompkins, continually confronted with
suit was rtions and other proceedings

decision

conditions

pal .bonds,

Co.

Inc.

awarded

was

M4yl

sition the state courts have taken

judgment.

regarding

to the United States Circuit
Court

any

Question which

arise in the suit.

may

There will be

appeal

Appeals, in which it
that, under the

advantage in resorting to the Fed¬

was

tended

eral
that

the

than

creditor

the

belief

obtain a
of the issue

may

impartial trial

other

courts

Federal court than he would

appointed

state court. The Federal judge

the

United

by the President
States

for

life.

The

the

Supreme

homa,

the

con-

decisions

Court

levy

taken

was

Okla-

such

taxes

could not be compelled. The Circuit Court of Appeals, alter exam-

ining

the

Oklahoma

which

upon

this

authorities

contention

was

attitudes until

the contention

municipality is situated, and often
is elected for a comparatively

levy of taxes to provide for the
payment of the obligations.
A
petition for rehearing was filed

short

term

office.

facts

Such

should not be of any consequence
in

was without merit
and that the United States
District
Court had correctly directed the

and denied.

adjudicating the validity of the

securities and quite often they are
not.
On the other hand the fact
that

the

people whom you
elect the judge before

very

suing

are

About three months later
ond

petition

filed

brought

for

which

the

sec-

rehearing

was

petitioners

attention

the

Circuit Court of Appeals a decibrought and sion of
the
Supreme Court
of
who will shortly go before them,
for reelection, often has a decided Oklahoma, which had been rendered less than a month
prior to
influence on the outcome of the
the filing of the second
petition,
case.
whom

the

case

V
>

'■ty

..jL^ga^ Contractual Impairment"
Lest

think that this Is a
gratuitous indictment of the state
you

courts, I would like to mention
few

instances

cedure.

One

municipal

state

historic

court

case

pro¬

the

Circuit Court

of Appeals had

re¬

lied in rendering its decision. The
Circuit Court of Appeals, however, denied leave to file the second petition for
rehearing. An
ap-

law

case

the United States rendered in the

1863.

year

The City of Dubuque,
issued bonds under a

Iowa,

had

state

statute

with the act

had

it and similar acts

peals

reversed

was

that

judgment
conforming

court,
conformity the State

full

been

the ground

Federal

the

law

announced

by the
State courts at the time the judg¬

consistently construed ment was entered, must be reby the Supreme Court of Iowa. versed on appeal if, in the meanAfter the bonds were issued and a
time, the state courts have disapsuit was* brought to onfofce them, prov£d of their former
rulings and
the State
Supreme Court over¬ adopted different ones. So bv this
its prior

ruled
the

rulings and, under

construction

placed

appealed

was

Court

void.

United

Supreme

the

case

Supreme

Court

where

then

The

the

the statute, the bonds

upon

held

were

which

spread

Federal
nize

bonds

courts

we*-e

would

the

not

recog¬

bonds.

other

United States simply held that the
rules could not be changed while
the game was in progress.

sion
of

the

was

far

very

concerns

holders

nicipal securities.
stitution

the

state

the rights
and

mu¬

While the Con¬
United

States

prohibits
the
state
legislatures
from passing acts impairing the
obligation of contracts, there is
nothing in the Constitution which
prevents the impairment of such
contracts by. court decisions.
In
Gelpke vs. Dubuque, however, the
Court, in effect, said that it would
not

stand

for

the

decision the doctrine in

Dubuque

was

sunk

Gelpke

without

case

eral judge rather than

p?wer

proceeds from

bonds

will

the

used

sale

the

to
repay
outstanding
loans, and the balance will

working capital to be
,

prices
par,

106.70%

one

Other

rang¬

terest in each case.

The company is an

operating gas
utility engaged in the distribution
and sale of natural gas

occaslon*'

the entire 61

Conclusion

the

City

St.

throughout

mile

square

to maturity.
of

The First National

the

under¬

Bank

Chi¬

cago;
Blyth :& 'Co. - Inc.; /The
First Boston
Corporation; Lehman

Brothers;
Harriman

Smith, Barney & Co.;
Ripley & Co. Incorpo¬

rated; C. J. Devine & Co.; Gold¬
Sachs & Co.; Merrill Lynch,
Pierce, Fenner & Beane:

man,

Kidder,

Peabody

&
Co.;
The Northern
Trust & Savings
Bank; Continen¬
tal Illinois National Bank & Trust
Co.

Chicago; Glore, Forgan &

Co.

Blyth Groun Offers

and at

tion

?f a
a state court- 1 had to
mv<>ke this rule on more than one

members

writing syndicate include—Chem¬
ical Corn Exchange
Bank; Guaranty Trust'company <S Ne/Yorki

Oregon Utility Shares

special

being reoffered

are

,'according

redeemable

ing from

.\°. eilj°ln the Prosecution

States

the
United
Erie Railroad v. Tomp¬

Louis

area

and

about

underwriting group headed
by Blyth & Co., Inc. on April 30
offered publicly 300.000 shares of
Portland General Electric Com¬
pany common stock

$25

(par $7.50) at

share.

per

The

proceeds will be added to
the general funds of the
company
which has completed
arrangements
for

the

groun

ened depends

case

There

arose

suit

was

The courts of

some

450 and net income of

states

adopted the doctrine of
estoppel by recital practically as

private

placement

of institutional investors of

can

1° adhere to
the
position
bondholder

Also,

be depended upon
their prior rulings,
of

the

states

some

estoppel doctrine

Halsey,

municipal

not much

where
not

was

nized at all or only to
extent, the legislatures

the

recog-

have

at-

,1957

tempted to provide protection to
the

bondholders

the

form

instance, in

the time the suit

brought, the

was

Montana courts had held that such
bonds constituted general obligations of the district.

Subseauent-

some

are

issues

before

$9,000,000, are scaled to
yield from 3.80% to 4.50%, accord¬
ing to maturity. Issuance and sale
of the certificates are subject to

the

issued.

Other states

state

Attorney
nroval

officer, usually
General, and his

affords

authorization

re-

The

the

overruled these decisions.

them

On ap-

held

that

under

the

doctrine

Erie Railroad v. Tompkins it was
obliged to follow the latest deciof

the

Supreme

Court

Montana, and the Supreme Court
of the United States refused to issue

writ

certiorari

bring

that decision before it for review,
It is apparent, therefore, that if
bonds

lty
law

are

in
as

courts

issued

full

announced

and,
issued, the

with

the

after

the

state

courts

bonds

the
state
are

reverse

the

rulings which were in existence at the time the bonds are is-

state

that

thev

validity of the securities. This
simplv means that the defendant
munieioabtv is reauired to prove
invalidity of the securities, but
it is not foreclosed from doing so.
Then

there

are

states

some

have

passed statutes providing that tbe bonds may not be

peri0(j.

York

.•

tions, so far as tl>ey
able.

Some

laws

which

states

•-

go, are valuhave

authorize

enacted

the

inser-

and

Hanseatic

PoBock

are:

Co.,

Co.*

proceeds from the sale

stock and the bonds
to repay an equiva¬
lent amount of notes
payable, rep¬
common

required to complete the construc¬
tion

program

Portland

supplies

in 1957 and 1958.

General

electric

Electric

service

Co.

ap¬

proximately 238,000 customers in
an area of
2,700 square miles, em¬

bracing about one-half of the
ulation

the

State

During 1956, total operating
amounted

enues

pop¬

of Oregon.

rev¬

$34.510.000,

compared with $31,872,000 in 1955;
net income showed an increase to

$5,192,000 in 1956 from $5,022,000
in
1955.
Earnings per common
in

1956

amounted

compared with $1.67

^55;

The

the

current

common

per

dividend

$1.73,
share in
rate

stock is $1,175 annu¬

ally.

man,

Corp.; Wm.
E.
Inc.:
Shearson,

Mosley Co. Incorporated.

Madden

Mass.
now

—

Francis

connected

Elkridge

with

Street.

Baltimore

will

Outing
hold

its

Club

Baltimore.

Golf, tennis and the usual stock
exchange will precede dinner.
Clinton P. Bamberger, Partner of
Baumgartner, Downing & Co. is
the President of the club this year.

With Dean W't*er
(Special to The Financial Chronicle)

BOSTON, Mass.—Hercules Danis now affiliated with Dean

tos

Witter &

Club

Auting on Friday, May 24,
1957, starting at 1:00 p.m. at the

Smith, Barney & Co., 140 Federal

Annual

BALTIMORE, Md. —T^e Bond
Annual

Smith, Barney Adds
BOSTON,

Bond Club of Baltimore

New

Hammill & Co.: and Suolee. Yeat-

except within a limited
These statutes of limita-

The net
of the

share
(

150 covered
1,000 box cars,
not less than $11,250,000.
cars

Hutchinson

Master

contested
...

certificates

man

the

which

secured

prich & Co.; Baxter & Co.; Free¬
& Co.; Ira Haupt & Co.; Mc-

merely privia facie evidence of

Interstate

Participating in the offering

riti°s.
and
in
other
cases
the
statutes declare t^at the approval
is

issue

for

Dick & Merle-Smith; R. W. Press-

types of defenses to the validity of the secu-

the

cost

not foreclose certain

municipal-

compliance

usually

entire

hopper

sive.

peal, the Circuit Court of Appeals

ap-

some

tections. however, are not concluThe statutes providing for

ly the Supreme Court of Montana

the

Commerce Commission.^

protection to
These statutory pro-

the creditor.

ex¬

ceeding

have

bond

and

issue not

scheduled

addition,
approximately $43,000,000 will be

1, 1972, inclusive. k
certificates, second and fi¬
an

porary financing of the company's
construction program. In

are

nal instalment of

states, the
provided for a

some

judicial proceeding for the validation

Inc.

Co.

bonds

resenting loans obtained for tem¬

to Feb.

The

statutory estoppels.
For

$4,020,204.

offering today
(May *2) $6,000,000 Chicago, Mil¬
waukee, §t. Paul & Pacific RR.
4%% equipment trust certificates,
maturing semi-annually Aug. 1,

limited

Stuart

associates

affected.

these

June, 1957.

will be used

Halsey, Stuart Group
Offers Equip. Tr. Ctfs.

it had been promulgated by the
Federal courts. In those states, if

the courts

30,

1956, Laclede Gas Co. had operat¬
ing revenues aggregating $44,648,-

the law of the

upon

several states.

at 1,470,000 on Jan. 1, 1957.
For the year ended Sept.

kins, How much it has been weak-

legislatures

similar

very

Montana.

sued, the Federal courts will no
impairment of longer be able to afford any pro-

award of the is¬

won

prices, including redemp¬
through the Sinking Fund,
which is designed to retire
their own courts.
$5,The Supreme
Court of the United States found 500,000 (55%) of the bonds prior
to
maturity,
receding from
^ expedient to promulgate a rule 101.82% to par, plus accrued in¬
denyinS to a Federal court the
have the

trace.

sion

important deci¬

interest, to yield 4.75%. The

corporate purposes..
The bonds will be

quire the approval of the bonds by

the

mortgage bonds, 47/g% series due
May 1, 1982, at 101.817% and ac¬

at general redemption

and

trict Court upon bonds of a Montana irrigation, district., Prior to

issued,

is offering today (May 2)
$10,000,000 Laclede Gas Co. first

be added to

thought
preferred to
decided by the Fed-

not

which

used for cohstruction and general

municipalities

were

that

words, the Supreme Court of the

This

the

they

.;/The bonds

at prices scaled to yield from
2%

Halsey, Stuart & Co. Inc., is
manager of an underwriting group

bank

not

were

;

■

company

the claims
of creditors. At least the
attorneys

for

ting a net, interest cost of
2.949% to the State of Ohio;) /;

Offered at 101.817%

the

suspected

was

judges

new

held

subsequent reversal of those
rulings to the detriment of the
of

cases

these

bonds

holders

some

sen

;■/

„

to 2.95%

Net

Court,

brought in the United States Dis-

municipality had issued
which complied with the

the

that

District

pe- 1972, inclusive, y
>,/'
.
wide- ;
The group submitted a bid of
state and/10°-442 for a 3%. coupon; represome

are

at competitive sale yesterday
(May 1) on a bid of 100.829%.

during the 1930s,
President Roosevelt appointed a
great many New Deal judges to
States

upon

the

„

sue

that,

United

defaults

underwriters

thetic

the

Laclede Gas Goads

crued
mu-

with some of the positions
which they took, but you will remember

reach

municipal securities.

sympa-

and

rulings of the state courts at the
time

over

courts

riod during which there

de-

States

bonds

the

upon

I think it is obvious, therefore, 135
spuare miles of the adjacent $10,000,000 principal amount of first
that the position of public cred- suburban areas'in St. Louis Coun- "
1
'"r/
,iqortgagei bonds, 4.%% series, due
in which the, Supreme Court of Itors
in this country has ;been
ty, Mo. Population of St. Louis .June 1,;J987, at a price of 09.60%
Oklahoma/.had p y e.ffttul e d its .weakened by the decision of the and St. Louis
County is estimated plus accrued sInterest* vv ?Peliv.ery
earlier opinion upon which the Supreme
Court
of

of this country is peal was taken to the Supreme
Gelpke vs. Dubuque, a Court of the United States and
decision of the Supreme Court of the decision of the Court
of Anthe

depends

mo-

by defaulting

upon

nieipalities

_____

based, reached the conclusion that too sympathetic toward

judge of the state court is usually
elected by the people of the very
locality in which the defendant
he

depended

issue

of $60,000,000 State of
Ohio, Korean Conflict Comperisaseverai states. Unfortunately we tion • Bonds, due semi-annually
will not be able to be sure of their May. 15,
1958 through Nov. ' 15,

today,

the attitude

upon the exercise
brought in the United States Dis- signed to prevent me from
bring-"
Of the power to issue the
bonds, trict Court by the owners of deing the suits in the Federal courts,
'regardless of the fact that when; faulted
paving bonds issued by After the decision in Erie Railroad
they issued them* they assured the the, City of;
Poteau, Okla;
The vr Tompkins I <began to be coninvestor that: alii such conditions '
District Court entered judgment fronted with
proceedings to pre'had been complied with;;.;
in favor of the bondholder
s, vent .me from bringing the suit
Under the circumstances if an w h e re u p o n a
proceeding Was in the state courts. The reason for
attorney is required to bring a brought in that court for a writ this curious reversal of
position
suit to enforce. municipal bonds, of mandamus to
compel the levy could easily be suspected.
The
today, he must ascertain what po- of taxes necessary to- pay the courts of some states could not be
.

man¬

Manhattan

Bankers; Trust

sion in Erie Railroad

: • f " ;■

Co., 19 Congress Street,

W,f^ H^vden. S*n"e
BOSTON, MaSS.—Ernest T. All-

drews III is now affiliated with
Rayaen, Stone & Co., 10 Post Of-

fice Square.

The Commercial and Financial Chronicle

(2082)

Now in

Securities
Academy Life Insurance Co.

18 filed 750,000 shares of common stock (par 50
cents) to be offered for subscription by military, Na¬

April

Guard, active, retired or reserves, personnel and
public at large. Price—$1 per share. Proceeds

tional

operating

Office

capital.

Springs,

Colorado

—

Underwriter—None.

Colo.

Acme Tool

Engineering Corp.

April 4 (letter of notification) 100,000 shares of common

10 cents). Price—$1 per share. Proceeds—
For leasehold improvements; purchase of equipment,
inventory material, etc.; and for additional working
capital. Office — 4142 Howard Ave., Kensington, Md.
Underwriter—Williams, Widmayer & Co., Washington,

stock

(par

Agricultural Equipment Corp.
March 1 (letter of notification) 500,000 shares of com¬
mon
stock (par 10 cents).
Price—50 cents per share.
Proceeds—To reduce obligation, purchase tools and for
working capital.
Address—P. O. Box 322, La Junta,
Colo.
Underwriter—Mountain States Securities Corp.,
Denver, Colo.
Power Co.

Alabama

(5/9)

April 12 filed $14,500,000 first mortgage bonds due May
1, 1987. Proceeds — For construction program. Under¬
writer—To be determined

by competitive bidding. Prob¬

Dillon,
Union Securities & Co., Equitable Securities Corp. and
Drexel & Co.
(jointly); Lehman Brothers; Harriman
Ripley & Co. Inc. and Goldman, Sachs & Co. (jointly);
Blyth & Co., Inc. and Kidder, Peabody & Co. (jointly);
Morgan Stanley & Co. Bids—Expected to be received
up to 11 a.m. (EDT) on May 9 at the office of Southern
Services, Inc., Room 1600, 250 Park Ave., New York 17,
able bidders: Halsey, Stuart & Co. Inc.; Eastman

N. Y.

Allied

Finance Co.,

Dallas, Texas (5/13-17)
April 22 filed $1,200,000 6% sinking fund capital deben¬
tures due 1972.
Price — At 100% of principal amount.
Proceeds—For reduction of bank loans and working cap¬
Underwriter—The First Trust Co. of

ital.

Lincoln, Neb.

Allied Resources Fund, Inc.

Dec.

14 filed

400,000 shares of common stock (par one
Price—At market. Proceeds — For investment.
Corp., 523 Marquette Ave., Minne¬
apolis, Minn.

cent).

Underwriter—Fund

•

Hardware

American

stocH, (par $12.50)

common

stock and class B

stock of Kwikset Locks, Inc., at the rate of one
share of American Hardware for each two Kwikset com¬
common

mon

55,500 American Hardware
150,000 shares of Kwikset class B

for

stock.

and

The

offer

conditioned

upon

not less than 85% of the issued and
common

and class B

common

common
common

its acceptance

outstanding Kwikset

shares. Underwriter—None.

Collins

Manufacturing Co.

Sanford, Me.
shares of common stock (par 100),
to be issued upon exercise of warrants to purchase the
following number of shares and held as follows: Glick
& Co., Inc., underwriters of original offering,
140,000
shares; and by three individuals 110,000 shares.
PriceShares to be offered at market. Warrants are exercisable

Office—Colorado Avenue & 26th
Street, Santa Monica, Calif. Underwriter.—Townsend,
Graff & Co., New York, N, Y. Offering—Made on April
30, 1957.
;
: •
"
;

May 1, 1977.. Price—To be supplied by amendment. Pro¬
ceeds—For expansion arid improvements.

Comanche Creek

dondo

Beach, Calif. Underwriter—Samuel B. Franklin
Co., Los Angeles, Calif. 'Offering—Postponed.
Community Public

struction

inventories; and for working capital. Busi¬
Transport refrigeration equipment. Office—947
Communipaw Ave., Jersey City, N. J. Underwriter—
Fred Kaufman Co., 120 Elm St., Orange, N. J.

Conticca

Investors

Corp.

York

held; and the remainder Will be offered to

the public.
Price—At par ($1 per share).
Proceeds—
To repay loans, for exploration and development work,

(par one
For working

cent). Price—$2 per share. Proceeds —
capital and general corporate purposes. Office—Dallas,
Underwriter—Peoples Securities Co., J. D. Grey,

Tex.
of

New

Orleans, John S. Tanner, of Dallas, and C. L.
Edmonds, of Houston, three of the 22 directors, are
Chairman, Vice-Chairman and President, respectively.
Apache Oil Corp., Minneapolis, Minn.
March 25 filed 50,000
shares of common stock (par
$2.50). Price—$6 per share. Proceed^—For investment
in stock of APAF Co., a subsidiary; to carry an inven¬
tory of leases for present and future drilling programs;
and for general corporate purposes. Underwriter—APA,
Inc., another subsidiary, Minneapolis, Minn.
Automatic

Merchandising, Inc., Tampa, Fla.
April 17 (letter of notification) 85,714 shares of common
stock

(par 50 cents) to be offered for subscription by
common stockholders at the rate
of one new share for
each

2.398838

ceeds—For

shares held.

expansion.

Price—$3.50

Office—107-109

per

share. Pro¬

South

Willow,
Tampa, Fla. Underwriters—Stevens, White & McClure,
Inc.; French & Crawford, Inc.; First Florida Investors,
Inc.; Pierce, Carrison, Wulbern, Inc.; and J. Herbert
Evans & Co.; all of Tampa, Fla.
Bonanza

Oil & Mine Corp., Sutherlin, Ore.
(letter of notification) 71,710 shares of common
stock (par 10 cents).
Price — 75 cents per share.
Pro¬

Feb. 11

ceeds—To go to
Friedman

selling stockholder. Underwriter—L. D.
Co., Inc., New York, N. Y.

None.

A. S. MacCulloch of

Vancouver, B. C., Canada, is Presi¬
dent and principal stockholder.

Your securities

reaches your
billion

advertising in the Chicago Tribune

best prospects (and

dollar Mid-America.

of them) in multi-

It sells both

investment

groups—the professional buyer and the general public. Find
out how
your advertising dollar can pay out in more sales
on

both fronts. Call your nearest

Chicago Tribune office.

most

widely circulated market table

17, N. Y.; and Shaw & Co., San Marino, Calif.

..*

and development of properties.^
M. Lister &

•

York.

Central

Price
repay

—

Hudson Gas & Electric

be supplied

bank

loans.

Co. and Estabrook

by amendment. Proceeds

V
par)/

—

Peabody

and

Co., both of New York;

Central Maine Power Co.

Miss.

(EDT)-

May'13.

(5/7)

■

Probable

Halsey, Stuart & Co. Inc.;
Eastman Dillon, Union Securities & Co., and White, Weld
& Co. (jointly); Blyth & Co., Inc., and The First Boston
Corp. (jointly); Morgan Stanley & Co. and W. E. Hutton
& Co. (jointly); Merrill Lynch, Pierce, Fenner & Beane
and Lehman Brothers (jointly).
Bids—To be received
up to 11 a.m. (EDT) on May 7 at Irving Trust Co., One
Wall St., New York, N. Y.
Clark Oil & Refining Corp.
March 22 (letter of notification) 5,000 shares of common
stock

(par $1). Price — At market (estimated at about
$20 per share). Proceeds—To Emory T. Clark, President

Office—8530 W. National Ave., West Allis,
Co., Inc., Milwaukee, Wis.

Underwriter—Loewi &

States Gas Producing Co. (6/4)
April 30 filed $5,000,000 51A% sinking fund debentures
due June 1, 1977
(with common stock purchase war¬
rants). Price—To be supplied by amendment. Proceeds

(

debentures at face
purposes

amount.

Proceeds—For con

Office

Shamrock, Fla.

Underwriter—None.

—

Laurel

•%/**'-

it Dayton Rubber Co., Dayton, Ohio

bidders:

Lewai*

—

^. ♦

April 4 filed $25,000,000 of first mortgage bonds due 1987.
Proceeds—To repay barlk loans and for construction pro¬
gram.
Underwriter^To be determined by competitive

Cougar Mine Development Corp.
(letter of notification) 560,000 shares of com
stock (par one cent).* Price — 50 cents per share
Proceeds
For diamond drilling on company's lands
prospecting expenses, working capital and other corpor
ate purposes.
Office—83 Campfield St/ Irvington, N. J
Underwriter—Roth & Co., Maplewood, N. J.
Z ;

Inc.; Blyth & Co.,-Inc. and Kidder, Peabody & Co.
(jointly); The First Boston Corp. and Coffin & Burr,
Inc.
(jointly); Harriman, Ripley & Co. Inc.; Merrill
Lynch, Pierce, Fenrier & Beane and White, Weld & Co.
(jointly); Salomon Bros. & Hutzler. Bids—Expected to
noon

mon

Co.

Underwriter
.

($14,000,000 at March 31, 1957) and for. construc¬
tion program.
Underwriter—To be determined by com¬
petitive bidding. Probable bidders: Halsey, StuarL &

Cincinnati Gas & Electric Co.

Co., Boston, Mass.

March 15

loans

struction

(5/13)!

April 17 filed $18,000,000 of first and general mortgage
bonds, series W, due 1987. Proceeds — To repay bank 1

be received

N.J

Turpentine & Rosin Corp#
March 12 (letter- of notification) 11,400 shares of capita
stock (par $5) and $125,000 of 20-year 5% subordinat
debentures dated March 31, 1957 to be offered in denom
inations' of $100'to present stockholders^ officers an
employees of the corporation at rate of 3/10ths of a shar
of new stock for/each share held and $300 debenture
for each 100 shares held. Price—Of stock, $15 per share

Corp. (5/15)

Underwriters—Kidder,
&

;_r,„

Continental

Underwrite?—White, Weld & Co.,
"■
r*-<- // /V /-*
-■//■

April 22 filed 280,000 shares of common stock (no

April 24 filed 400,000 shares of common stock (par-1
cents). Price—$1 per share. Proceeds—For exploratio

held; rights to expire on May 13. Price—
$9 per share.
Proceeds — To reduce--4 V\ % notes by,
$1,000,000, to repay about $695,000 of bank loans and for
New

it Continental Mines & Metals Corp., Paterson,

it Coastal

pages

approximately $1,030,000*

capital. Under
Co., 405 Lexington Ave., NeJ

2V2

of company.

America's

Allen Shaw &

fo? working

being offered for subscription by common stockholders
of record April 24 on the basis of one share for each

Wis.

(Elftmgn Qmbune

—

sum

and

Brothers, New York.

Cascade Natural Gas Corp., Seattle, Wash/ *
•
March 29 filed 226,820 shares of common stock (par $1)

construction program.

III.

Corp., Chicago,

it Continental Air Lines, Inc. (5/20-24) /
April 29 filed 230,000 shares of common stock (par $1.25)
Price:—To be supplied by amendment. Proceeds—To hel
finance expanding operations.
Underwriter — Lehma

bidding.

Two
for the

equipment;

new

writers

•

Feb. 15 filed 50,000,000 shares of common stock

debt in the total

term

for

stockholders at the rate of five additional shares for each

—

International

filed

558,100 shares of class A common stock
(par $1). Price—$5 per share. Proceeds — To discharg
current notes payable, including bank loans!, and Ion

Inc., Kings Mountain, N. C.
of which
to be offered'.for subscription by

Underwriter

Inc.;

March

March 29 filed.679,469 shares of common stock,

capital.

Salomon Bros. & Hutzler; Blair & Co. In
Bids—To be received up to 11 a.m. (EDT)
May 28 at 90 Broad Street, New York, N. Y.

—

construction and working

„

corporated.

American Provident

Co.

con¬

Underwriter—To be determined
bidding. - Probable bidders: Halsey, Stuar

program.

competitive

for increased

Proceeds—To refund bank loans and for

1987.

due

Cargo Cool Corp.
Jan. 31 (letter of notification) 100,000 shares of common
stock (par 10 cents). Price—$3 per share. Proceeds—To
open and acquire additional truck terminal branches;

four

(5/28) %//,/

Service Co.

April 25 filed $3,000,000 first mortgage bonds, series E,

Under¬

writer—None.

are

Co.

notification) 75,000 shares of common
stock. Price—At par ($1 per share). Proceeds—For oil
drilling expenses. Office—1848 South Elena Ave., Re-

Capper Publications, Inc., Topeka,/Kan.
$1,000,000 of five-year 4% first mortgage
bonds, series six, and $3,000,000 of 10-year 5% first
mortgage bonds, series seven. Price—At par. Proceeds—
To redeem outstanding bonds and for improvement of

Oil

March 14 (letter of

March 25 filed

283,676

Uiiderwriter-

Hemphill, Noyes & Co., New York.

—

Mines,

Underwriter—None.

it Colonial Stores* Inc. (5/20-24)
•
April 30 filed $5,000,000 of sinking fund debentures due

Batteries, Inc.
(letter of notification) 14,000 shares of com¬
mon
stock (par $10) to be offered for subscription by
stockholders and employees.
Price—$12.50 per -share.
Proceeds
For machinery, equipment, inventories and
working capital. Office — Washington and Cherry Sts.,
Conshohocken, Pa. Underwriter—None.

ness

sellers of warrants.

Proceeds—From sale of shares

10 cents per warrant.

C & D

present facilities and other corporate purposes.

common

Colonial Aircraft Corp.,

working capital.

March

March 29 filed 250,000

Co., Corsicana, Tex.

it Burton Manufacturing Co.
April 15 (letter of notification) 60,000 shares of com¬
mon stock
(par $1). Price—$1.70 per share. Proceeds—
For

(5/7)

Iowa

Co., Cedar Rapids,

the basis of $100 of debentures for each 10
stock held; rights to expire on May
21, Price—To be supplied by amendment.
Proceeds-—
To reduce bank loans of company and subsidiaries and
for working capital.
Underwriters—Kidder, Peabody &
Co., and White, Weld & Co.* both of New York.
1957

April 10 (letter of notification) 82,500 shares of common
stock (par one cent). Price—At market. Total offering
not to exceed $300,000. Proceeds—To selling stockhold¬
ers.
Office—-1400 East Jefferson Ave., Dallas, Tex. Un¬
derwriter—Wm. B. Robinson &

Radio

April 17 filed $7,917,000 convertible subordinated deben¬
tures due June 1, 1977, to be offered for subscription byclass A and class B common stockholders of record May

—For
working capital.
Office—24 Maplewood Ave.,
Philadelphia 44, Pa. Underwriter—Drexel & Co., Phila¬
delphia, Pa. No* public offering expected.

Carolina

common

loans, for construction and acquisition of
for working capital.
Underwriter—Paine, Webber, Jackson & Curtis and Blair
& Co. Incorporated, both of New York.
■/;///:///•/

;*/?,<*

Browne Wfiidow

...

—To pay bank

April 8 (letter of notification) 21,818 shares of common
stock (par 50 cents). Price—$13.75 per share. Proceeds

•

REVISED

ITEMS

additional gas gathering systems, and

an additional 1,000,000
Price—At market. Proceeds—n

Brantley Helicopter Corp.

(5/6)

Corp.

April 8 filed 118,000 shares of
to be offered in exchange for

stock.

For investment.

not to the

—For

•

it Boston, Fund, Inc.
April 29 filed (by amendment)
common

Thursday, May 2, 1957

it INDICATES ADDITIONS
SINCE PREVIOUS ISSUE f

Registration

shares of

ViApril 24 filed $3,600,000 of Interests in company's Em
ployee Stock Purchase Plan, together with 148,341 share
-of common stock which may be purchased under th
Plan.

•

it Dorman, Long & Co., Ltd.
V
April 29 filed 80,000 American depositary receipts

ordinary

»New

shares.

York.

Depositary

—

Guaranty

Trust

Co.

fo
o

•

j
•-

•

Drug Fair-Community Drug Co., Inc.

(5/7)

April 15 filed 217,550 shares of common A stock (par $1
of

which

160,000 shares are to be sold for account o
selling stockholders and 57,550 shares for company's ac
count. Price—$5 per share. Proceeds—To redeem on M

31, 1957, the outstanding 6% cumulative participatin
preferred stock and for working capital.
Office—Ar
lington, Va.

Underwriter—Auchincloss, Parker & Red

path, Washington, D. C.
Du Mont Broadcasting Corp., New York (5/13
April 18 filed 596,701 shares of capital stock (par $1
of

which

tion
each

expire
to

314,812 shares
stockholders at

three
on

held

to be offered for subscrip
the rate of one new share fo

are

about

May

13:

rights t

May 27. (Paramount Pictures Corp. has agree

purchase 83,800 Du Mont shares to which it is entitle

Volume

185

Number

5634

;

The Commercial and Financial Chronicle

subscribe). Of the remaining 281,889 shares, 270,147
shares, together with $2,932,087.25 cash, will be used to
purchase all the

stock

common

R. I.

Broadcasting,
discharge certain

Inc., and 11,742 shares will be issued to

Proceeds—To

pay

filed

debentures

purchase WNEW. Under-

able.

amonHmont

May 1, 1967.

PrnnDollc

convertible

★ Grolier Society, Inc. (5/16)
April 26 filed 318,000 shares of common stock (par $1),
of which 300,000 shares are to be sold for account of

subordinated

Price—To be supplied by
■

,lT^

„

Continued

,ir.

amendment- Proceeds—For working capital to be used

writers—Kuhn, Loeb & Co. and Carl M. Loeb, Rhoades
Co., both of New York. ^
:
1'...' *. ■ -..'X

--:N E W

I S S II' E

■

Public Service Co. of Colorado

...

Qunita

OwooeY""""-feonds

Co.

«25,ooo.ooo

K El Paso Electric

Co.

(5/15)*

Clark,

Inc.;

Co.,

Landstreet

Telephone Co

;;

(Bids

YzY;;/:y'

,YWz_-,T

,r.

;

$70,000,000

May 22; (Wednesday)

;/■

•1Yr

Common

1,050,223 shares

& Co.)
(Bids

Equip. Trust Ctfs.

.(?ids to be invited) $4,650,000

Interstate

,/Y...Y/

Spalding (A. G.) & BrosYinc
Debentures
//.'/(Offering to stockholders'—no underwriting) $2,017,300 ;

April 16 filed 20,000 shares of cumulative preferred stock
' .''Y'Yz' ' z;
May 8 (Wednesday)
(no par value). Proceeds—About $2,000,000, to be used Y'Y F1 p___
Plpfltri. Cn:YY- z/Y
for construction program.
Underwriter—To be deter- •
'
(0ffertag t0
mined by competitive bidding.
Probable bidders: Stone •
\ «
->z 4• *win be dealer-manager) 119,522 shares

/(Offering to stockholders—underwritten by Morgan Stanley

■

Bonds

invited)

International Business Machines Corp

IL—Bonds

// ,; /':

EDT)

a.m.

$20,000,000

-Common

Power

& Co.) 680,000 shares

(Kidder, Peabody

Niagara Mohawk Power Corp.!

■/;

„

•' /; /

Preferred

ZJJi/'V'Yz-"' (Harriman Ripley & Co. Inc.) 200,000 shares

•YVvYy'yY Y May 23

(Thursday)

& Webster Securities

Corp.; Merrill Lynch, Pierce, Fen-/ .
Eastman Dillon, Union Securities & Co.; '
Kidder, Peabody & Co., White, Weld & Co., and Shields X%
& Co, (jointly).: Bids — To.be received
up to 11 a.m.
<r
(EDT) on May 15 at 90 Broad St., New York, N. Y.
//

;Feb.
stock

Manufacturing,'Inc.

(Bids

manufacture and sale of

100

West

molded plastic

items.

invited)

;C.

;

$4,200,000

Potomac Edison Co
/ (Bids noon edt) $14,000,000

Alabama

.
.

Office—

•

May 9

Power

May 28

National

(Bids

Gas

Fuel

$14,500,000

St., Wilmington 99, Pel. Underwriter—
Baltimore & Ohio RR
Equip. Trust Ctfs
Ackerson Hackett Investment Co., Metairie, La. and Salt :/
• •
(Bids noon edt) $3,535,000
" ;
Lake City, Utah.
y/yHerold Radio & Electronics Corp.
Preferred
First Mississippi Corp., Jackson, Miss.
•
•
(Amos Treat & Co., Inc. 1 $800,000
."'/•y7;l:*'
r - April
10 filed 10,000,000 shares of common stock (par
*
May 13 (Monday)
/
V
$1), of which 2,500,000 shares are to be offered pubhely
Allied Finance Co.—.
-Debentures
at $4 per share prior to Nov. 30,
1957, each purchaser of
'
(The First Trust Co. of Lincoln, Neb.) $1,200,000
one
share to receive an option to purchase two addiCentral Maine Power Co
Bonds
tional shares at any time prior to Nov. 30, 1959 at
$4.50
i}-.//
(Bids noon edt> $18,000,000
: ■
Y ■
per share. -The price of the remaining 2,500,000 shares
Drug Fair-Community Drug Co., Inc
iCommon
will be $5 each, of which 500,000 shares are to be re(Auchincioss, Parker & Redpathj 217,500 shares
'/served tor exercise of options to be granted to
directors,
Y Du Mont Broadcasting Corp..
/-Common
officers and employees. . Proceeds
For' industrial and
(Offering to stockholders—underwritten by Kuhn, Loeb & Co.
business
development of Mississippi and the South.'
Y YYVand earl M- Loeb,. Rhoades &-©<£) .314,821 shares
Underwriter—None.-'
;
/
Y
Magnetic Amplifiers, Inc
Common

$50,000,000

(Tuesday)

Public Service
(Bids

Bond*
edt)

Bonds

White, Weld & Co.;

Halsey, Stuart & Co. Inc.)

Community

10th

and

(Thursday)

a.m.

(Stone & Webster Securities Corp.;
"

Bonds

Co.

fBids

(Monday)

Transmission

Gas

Tennessee

Missouri Pacific RR.-.lw-i—_—^Equip. Trust Ctfs.

8, (letter of notification) -150,000 shares of capital
(par $1). Price — $2 per share. Proceeds — For

May 27

"^ /^ (Reinhoidt & Gardner) 80,000 shares

Esk

■:

Co2--l-------------Common

Mexico Refractories

& Beane;

ner

Equip. Trust Ctfs.
Y'Y/'YY'YY"' (Bids to be invited) $2,550,000 ~
Reading Co.

LckhoidM^o"nVr weVsto'i^rftL^!,

EDT)

a.m.

Bonds

$3,000,000

11:30

Debentures
$15,000,000

EDT)

a.m.

Equip. Trust Ctfs.

Wabash RR.
(Bids

EDT)

nooh

June 3

$6,615,000

(Monday)

Government

/'■/'./

Debentures

Employees Corp

(Johnston,
•

Lemon

June

about $500,000

Co.)

(Tuesday)
Equip. Trust Ctfs.

Alabama Great Southern RR
(Bids

invited)

about

$3,000,000

■

Boston

Edison Co

—Bonds

(Bids

invited)

to be

Northern States Power Co.
(Bids

$25,000,000

(Wis.)

Bonds

invited) $10,000,000

to be

Underwriters—Kidder, Peabody & Co. and MerLynch, Pierce, Fenner & Beane, both of New York.

gram.

rill

Florida

Light Co.* (5/15) - '
filed $15,000,000 of first mortgage bonds due

1987.

Proceeds—To

repay bank loans and for construeUnderwriter—To be determined by competitive bidding. Probable bidder^: Halsey, Stuart & Co.

Hawaii

(EDT)

May 15.

the

Trust.

-acquire

per

interest

;..

General Aniline & Film Corp., New York
Jan. 14 filed 426,988 shares of common A stock

Forgan

Co.

(jointly).

Bids —Had

scheduled to be received up to 3:45 p.m. (EDT) on
May
.13 at Room 654, 101 Indiana Ave., N. W., Washington 25,
D. C., but bidding has been postponed.

May

debentures

for

holders of record

each

16,

rights to exnirp on June
rignts to expne on Tnnp

For investment

•

1957

shares
10
iu.

•

the

basis of $100 of

common

Pripp
At
i-rice—At

stock

laOD

Jan. 21

and

stock

Slops

Inc.

cents)

which

86,610

common

are

operation:

for working capital.

increase

the

number

stores:

and

Office—41 Stukely St., Providence,

(Monday)
Bonds

Co
$19,000,000

EDT)

a.m.

June 11

Natural

Consolidated

(Bids

Common

& Co.)

Common
be negotiated)

11:30

June

in^e'dTi^oooooo

(Bids

Gas

edt)

a.m.

(Tuesday)

Common

EDT)

a.m.

200,000 shares

Forgan

Co.)

Common
Peabody

and Kidder,

June 25

& Co.)

(Bids

National Telefilm Associates, Inc.- ^—Debentures
- ,
(Bacne & Co.) $7,5 , 0
Paul Hesie„?-D ^rts'
7":-;^-^
(ReiIly' Hoffman & Sweeney' Inc ) $300'000

Bonds
$15,000,000

be invited)

June 26

Debs.

(Tuesday)

invited)

Puget Sound Power & Light Co

and

$70,000,000

Delaware Power & Light Co

Bond»

ara;

Preferred

$25,000,000

Southern Bell Telephone & Telegraph Co

$6,500,000

255,813 ah»res

$25,000,000

(May be Morgan Stanley & Co.; Drexel & Co.;

$2 000 000

Florida Power & Light Co.
-

Debentures

EDT)

a.m.

Public Service Electric & Gas Co.

Preferred

Beane

225,976 shares

(Tuesday)

Gulf States Utilities Co

Corp.+

Fenner &

Pierce,

Bonds

$20,000,000

(Wednesday)

„

°D

Southern

California
(Bids

Gas
be

Bonds

invited)

$35,000,000

(DOiUinick

Groher

Domimck)

$2,500,000

■

Debentures
.

■

(Bids

Society, Inc.-___-____----_-_---Common
(Dominick & Dominick) 318,000 shares

Northern Pscific Ry—EQiiip* Trust Ctfs*
ds
.

Wisconsin Telephone Co

invited)

$6i00o,ooo

common

Jackson

Stone

May 20
Colonial

Stores,

(Bids

Debentures
—

underwritten by
Securities

Webster

Jones & Templeton)

Noyes &

230.000

.Common
shares

Duke

Power

$50,000,000

invited)

September 10

(Tuesday)
Bonds

(Bids

invited) $50,000,000

(Tuesday)

Utah Power & Light Co
(Bids

Co.). $5,000,000

Inc.-l

Brothers)

(Wednesday)

October

Debentures

Continental Air Lines,
(Lehman

Corp.;

(Monday)

Inc

(Hemphill,

Paine,

$46,000,000

about $20,000,000

Telephone Co. of Pennsylvania—Debentures

(Friday).

stockholders

Curtis;

<Sr

and Mitchum,

.Bonds

July 31
Bell

May 17
General Telephone Corp

$30,000,000

(Tuesday)

(Bids to be invited)

;o_.

Washington

Debentures

invited)

July 30

$8,000,000

t«

West Penn Power Co

T...

r»

„r

July 9 (Tuesday)

May 16 (Thursday)

Grolier Society, Inc.

being

sold pursuant to
outstanding warrants. Price—$1.25 per
share. Proceeds — For additional discount department
store

EDT) $15,500,000

a.m.

(Offering to stockholders—may

(Offering to stockholders—to be underwritten by Merrill Lynch,

Webber,

(letter of notification) 240.000 shares of

(par

Power

(Offering

America,

Beads

by Kuhn,

...Bond.

Debentures
$20,000,000

(Bids to be invited)

Florida

held;

Prnpppd1?
rroceefls—

nar

par.

writers—Paine, Webber, Jackson & Curtis and Stone &
Webster Securities Corp., both of New
York; and Mitchum, Jones & Templeton, of Los Angeles, Calif.
—

(Bids

common

Electric. Co

Paso

temporary advances to telephone
subsidiaries and for general corporate purposes
Under-

Inc

invited)

Portland Gas & Coke Co

public—underwritten

*a"m"'Ebfr

(Thursday)

★ General Telephone Corp., New York (5/17)
•
April 26 filed $46,000,000 of convertible debentures due
irtrrr,
r7
1977, to be offered for subscription by common stocka

Bonds

$25,000,000

<Bids

(Bids

been

(Bids

Glore,

the

Glcre,

Fipptrip

E! Paso

(no par)

Probable bidders: Blyth & Co., Inc., and The First Boston Corp. (jointly); Kuhn, Loeb & Co., Lehman Brothers
and

,/,/„

June

AU.

Metropolitan Edison

(Wednesday)

Bonds

System,

Bonds

Class A
and

Chesapeake & C£to ?e
:

common B stock (par $1).
ProAttorney Geenral Of the United States.
Underwriter—To be determined by competitive bidding

1,537,500 shares Of

ceeds—To

May

edti

noon

Bonds

$20,000,000

Georgia Power Co
-

Central Hudson Gas & Electric Corp
(Kidder, Peabouy
^co. and^Estabrook

Proceeds—To

None.

Gas

Loeb & Co' and Johnson- Lane» sPace & Co-» Inc-^ 226,333shs..

lands and every character of real property.

convey

(Bids

;

Belt

invited)

(Bids 11:30 a.m. EDT) $8,125,000

(Bids

w-.*

Radiation, Inc.
(Offering to stockholders

Underwriter

and

'-Y-

certificate.

Commas

1,000.000 shares

(Wednesday)

June

Equip. Trust Ctfs.

Y New York State Electric & Gas Corp

purchase, lease or otherwise, and to hold,
subdivide, lease, mortgage, exchange, bargain, sell

own,
and

Price—$1,000

(Territory of)

Y-

Florida Trust, Pompano Beach, Fla.
March 4 filed 850 certificates of beneficial

Harbor

Columbia

(Bids 10 a.m. edt) $14,000,000

Inc.; White, Weld & Co.; Merrill Lynch, Pierce, Fenner
& Beane and Kidder, Peabody & Co. (jointly); The First
Boston Corp.; Blyth & Co., Inc. and Lehman Brothers
(jointly). Bids — Expected to be received up to 11:30
a.m..

Indiana
Z

(Bids to be invited) $3,000,000

•

tion program.

■

invited)

(Bids

Chicago, Rock Island & Pacific Ry.
,/

General Telephone Co. of California

(Tuesday)

May

Power &

April

(Bids

June 5

Florida Power Corp.
(5/15) :;;'r/YY '■ '.Y-;.Yy-Yy Y/.Y c ' - (°'
Lomasney &cu., $292,500
APril 19 filed 255.813 shares of common stock (par$7.50) :
/
to be offered for subscription by common stockholders Of
Lynchf Pierce, Fenner & Beane; Bacon, Whipple & Co.;
record May 14, 1957 on the basis of one share for each
' and bean witter & Co.) 175.118 shares
10 shares held; rights to expire on June 3. Price—To be
/
Topp Industries, Inc
.Debentures
announced on May 13. Proceeds—For construction pro,Y .//>
(Dempsey-Tegeier & Co.) $2,750,000

Virginia Electric & Power Co

(Tuesday)

Interstate Power Co

■;

Y'YY

$'7,917,000

& Co. and white, weld & co.>

Seaboard Air Line RR._

Bids — To be received up to 11 a.m.//
May 15 at 90 Broad St., New York, N. Y.
;/

(jointly).

(EDT)

Hatch

New York
<

-w.

Bonds

—Common

——

May 21

EDT) $30,000,000

noon

Kirkpatrick, Inc.; and Minor, Mee & Co.) $350,000

program,. Underwriter—To be determined by:S
competitive bidding. Probable bidders: Halsey, Stuart &

(Bids

Corp.

(Frederick

struction

Corp.;
Kidder, Peabody & Co., Shields & Co. and White, Weld

page

CALENDAR
'

•

J0-Webster Securities
Inc.rWin.Lyneh, Pierce, Fenner Securities ^ne.
& Beane;
&
Corp.; Equitable

El: Paso Electric Co. 1(5/8) -Y.Y,
yfihX*? //YY'Yz
'^yV'*Y:YYy- YY/Y.5'1 •••/.'•
April 16 filed .119,522 shares of common stock (par
$5):;:'v>^,!f-Y<':%' v,Y.'Y;- ' ' v
Y
to be offered for- subscription
by common stockholders of YYV;':,y Mav-6" (iu^ndav^ Y;:'*:/YY
record May 6, 1957.on the basis/of one new share for*
;YY Y-'Y'' iri:Y'Y-vi
> Yeach 15 shares held (with an
oversubscription privilege); "
—7"IT,"Sominon
iA ovnifA
tv/t*-*•**
oi
iaktV, DwSaa*.
v.'
u; ■*;t f'-.
offor »x.o ICwiksct Locks, Inc. stockholders—
fights, to expire onMay21,;1957. Price—-T o be supplied... '7ZY///Y
norund^rwritingj-iis.ooo shares,z
/
by amendment, Proceeds
To retire bank-loans and for ^- r Associated Truck
Lines, Inc<—-.:-Class A common
construction program.., Dealer-Manager—Stone &
Web-; ./YY;;YYY?<cruttend«}n, Podest* & Co;) 125.000 shares
vCVvV rY
3ster Securities Corp., Kew York.- ;
;Y'/'; .Y':v .nY.Y-;/'Yz ?
Lake Lauzon Mines, -Ltd^_L^__
•_
.Common Yy
'hr-EI Paso Electric• Co. (5/15) ;
>-/'.•
/
* YYYyY'YYYzY oteyen Randan & Co.; inc.) $300,000 zYY-•-V
April 16 filed $6,500,000 first mortgage bonds due May-'*-■ •YYY?:*:/,y»'Y-':1
Mav 7;(Tuesdav)
Y:Y/z "YY;;.:z
1, 1987. Proceeds — To repay bank loans and for conzz ri
.
„Yj-:1 dv
^ v
Y/YzvY'-o »■ A 'YY:
m

Underwriter—Dominick & Dominick, New York.

$2,500,000

due

in general to finance installment sales contracts receiv¬

April 26

supplied by amendportion of the cash require-

ments under the agreement to

of WNEW's liabilities./Price—To be
ment.

Underwriter—Bruns, Nordeman & Co., New York
- YY". -YY
V

N. Y.'

of WNEW

(2083)

Utah Power &
(Bids

Bonds

invited)

$15,000,000

Common

Light Co
to

invited)

400,000

The Commercial and Financial Chronicle

will be used as working capital to
credits to enterprises
in Israel. Office—Tel Aviv, Israel. Underwriter—Israel
Securities Corp., New York.
Israel

Continued from page

price

selling stockholder,

amendment. Proceeds — To
contracts receivable and for

sales

instalment

Underwriter—Dominick & Dominick,

working capital.
New York.

V.///'- /:■//•■;v

■,

(5/9)

& Electronics Corp.

Keroid Radio

;

convertible
preferred stock (par $5) and 25.000 shares of common
stock (par 25 cents).
Of the latter issue, 12,500 shares
are to be sold to underwriter at par and the remaining
12,500 shares issued to Alton Blauner as a finder's fee
at par. Price—Of preferred, $5 per share. Proceeds—For
working capital. Office—Mount Vernon, N. Y. Under¬
Feb. 27 filed 160,000

shares of 6% cumulative

& Co. Inc., New York.

writer—Amos Treat

Holly Corp., New York
Jan. 25 filed 406,638 shares of 50-cent
•

convertible pre¬

stock, series A (par $5) and 2,476,116 shares of
common stock (par 60 cents), of which all of the pre¬
ferred and 763,011.3 shares of common stock are being
ferred

Vernon Co. preferred
basis of one Holly series A
share for each of the 406,638 shares of Mount Vernon
preferred stock and 2% shares of Holly common stock
for each of the 305,204.52 shares of Mount Vernon com¬
mon
stock.
Of the remainder, 210,000 Holly common
shares are being offered to certain holders of 35.000
shares of Van Dorn Iron Works Co. common stock on a
six-for-one
basis; 38,333 Holly common shares are
offered to certain finders, 60,000 shares to certain ven¬
dors
of property;
1,016,595 shares will be reserved
against conversion of preferred stock; and the remain¬
ing 388,176 are to be reserved for possible issuance at a
exchange

offered

for

Thursday, May 2, 1957

in exchange for 64.696 shares of

date

Works

Iron

common

effective April

ment

Holy Land

Van Dorn
State¬

Underwriter—None.

stock.

24.

Import Corp.,

stock.

working capital,
Co., Houston, Tex.

ventory,
&

Underwriter—Benjamin

etc.

^ International Business Machines Corp. (5/22)
May 1 filed 1,050,223 shares of capital stock (no par)
to be offered for subscription by stockholders of record
May 21, 1957 on the basis of one new share for each 10
shares held; rights to expire on June 10, 1957. PriceTo be

supplied by amendment.

Proceeds

International Capital Corp.,

filed

Nov.

For working

—

Underwriter—Morgan Stanley & Co., New York.

capital.

370,000 shares of common si^ck

(par 10

The
Equity Corp. on a share-for-share basis in exchange for
Equity Corp. common stock, and the remaining 135,000
■hares by Financial General Corp. on a basis of 1%
of

International

stock

common

are

tional

in exchange for

Equity and Finan¬

share of Financial common stock.

cial

185,000 shares each of Interna¬
stock in exchange for all the outstand¬

receive the

common

ing shares of common stock of Investors Financial Corp.
and Group Equities, Inc. International has been informed
that

142,000 shares of Equity common owned

by Fre¬

Corp. will be tendered in acceptance of the Equity

mont

Underwriter—None.

exchange offer.

Calif.
shares of common stock (par one
cent).
Price—$1 per share.
Proceeds—To equip and
establish five super launderettes and for working cap¬
ital.
Underwriters—Names to be supplied by amend¬
International Duplex Corp., San Francisco,

Dec.

filed 500,000

ment.

Fidelity Insurance Co., Dallas, Tex.
March 28 filed 100,000 shares of common stock (no par)
be

offered

rate of

one

for

new

ing capital, etc.
Dallas, Texas.

subscrintion

share for each

—To be supplied

stockholders

seven

shares held.

the

Price

by amendment. Proceeds—For work¬
Underwriter—Franklin Securities Co.,

near

leases; $600,000 to Janaf Motor Hotels, Inc., for its Ad¬
miralty motor hotel adjacent to the shopping center;

$200,000 to Janaf Homes, Inc.; $2,050,000 for acquisition
of land and/or new development (new ventures); $750,000 to retire present

preferred shares; and $100,000 for

Underwriter—Name to be supplied by amend¬

expenses.

ment.

Juneau & Douglas
Jan.

Telephone Co.
$295,000 of 6% 15-year
Price — At face amount (in de¬

(letter of notification)

debentures due

1972.

nominations

$1,000 each).

and

improvements.

•

Proceeds—For additions

Office—139 W. Second Street, Ju¬

Underwriter—Grande & Co., Inc., Seattle,

neau, Alaska.
Wash.

stock (par $1).
Price—40 cents per share.
Proceeds—For drilling ex¬
penses, equipment, working capital and other corporate
purposes. Underwriter—Steven Randall & Co., Inc., New
March 18 filed 750,000 shares of common

York.

•

Depositary

shares.

—

Guaranty

receipts for
Trust Co. of

York.

Lang Co., Inc.

April 9 filed 73.199 shares of common stock (par $5).
Price—Expected to be $14 per share.' Proceeds—To re¬
duce bank loans and for working capital.
Underwriters

&
Expected today

Corp., Chicago, 111., and J. A. Hogle

—Lee Higginson

Co., Salt Lake City, Utah.

Offering

—

April

filed

York
Lexington

$7,500,000

Accumulation

Proceeds—For investment.

and

ficers
iaries.

employees of

the company and its subsid¬

%y:;;/-//'/'" '.%■

•

New

working

etc. Office—465 Park Avenue,
Underwriter—None.

capital,

York, N. Y.

if Magnetic Amplifiers, Inc. (5/13)
April 29 (letter of notification) 90,000 shares of com¬
mon
stock
(par 50 cents).
Price — $3.25 per share. .
Proceeds—To retire $50,000 bank loan and for general,
corporate purposes. Office—632 Tinton Avenue, Bronx,
55, N. Y.
Underwriter — D. A. Lomasney &
Co., New York.

New York

Marion

Finance Corp.,

Ardmore, Pa.

renewable subordinated
without de¬
mand May 1, 1972. Price—At par (in units of $100 and
$500 each). Proceeds—For working capital. Office—17
W. Lancaster Ave., Ardmore, Pa. Underwriters—Walnut
Securities Corp., Philadelphia, Pa.; B. Ray Robbins Co.,
New York; and Berry & Co., Plainfield, N. J.
$250,000 of 6%

debentures, due upon demand May 1, 1967,

April

filed

May 1, 1987.
ties

$20,000,000 of first mortgage bonds due
Proceeds—For purchase of certain proper¬

of Kansas

585,000

first

City Power & Light Co.; to redeem $1,bonds of Northwestern Illinois

mortgage

Gas

& Electric Co.; to repay bank loans; and for addi¬
tions and improvements to properties. Underwriter—To
be determined

by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Merrill Lynch, Pierce. Fenner
&

Beane and Kidder, Peabody & Co. (jointly); White,
Weld & Co. and R. W. Pressprich & Co. (jointly); Salo¬
Bros. & Hutzler; Smith, Barney & Co.
Bids—Ex¬

mon

pected to be received

to 11

a.m.

(EDT)

Investors Variable Payment
Fund, Inc.
March 25 filed 10.000 shares of common stock.
market.

May 22.

•***«?

Price—At

CTrie

Minneapolis, Minn., which will also act
American

Inuustriai

distributor.

Development

Bank,

Ltd.

Feb. 13 filed $2,500,000 of perpetual 6% debenture stock.
Price — 110% of par. Proceeds—To be converted into

Underwriter

(Box 988), Grand Junction, Colo.

Mid-State Commercial Corp.

(letter of notification) $190,000 of 7% regis¬
tered debenture bonds due May 1, 1967. Price—At 100%
and accrued interest. Proceeds—For expansion of serv¬
March 29

ice

capital. Office—2 King St., MidUnderwriter — Frazee, Olifiers & Co.,

and working

area

dletown, N. Y.

//'A;j"

Mississippi Valley Portland Cement Co. i;
\
Dec. 26 filed 1,600,000 shares of capital stock (no par), of
<

which 708,511

shares are subject to an offer of rescission.
share. Proceeds—For completion of plant,
provide for general creditors and for working capital.
Office—Jackson, Miss. Underwriter—None, offering to
be made through company's own agents, v.
;c;
Price—$3

per

Monticello Associates,

Inc.
Feb. 18 (letter of notification) 300,000 shares of common
stock.
Price—At par ($1 per share)* Proceeds — For
capital expenditures,-including construction of motel,
•

roadside restaurant and gas

Mortgage Fund, Inc., Washington, D. C.
8% note certificates. Price—At;

station. Business—Has been
Office—203 Broadway,

processing and selling of gravel.

Monticello, N. Y. Underwriter—Walnut Securities Corp.,
Philadelphia, Pa.
>
•
.
" ^
Investment Trust for Profit Sharing-

Mutual

Retirement Plans,

Inc., Richmond, Va.

50,000 shares of capital stock (par $1),
to be offered trustees of profit sharing retirement plans.
Price—At market. Proceeds—For investment. President
filed

Richmond, Va.

Office

National

/■./."/'

Fuel

Gas

5001 West Broad St.,

—

:•//■":'
(5/28)

Co.

April 4 filed $15,000,000 of sinking fund debentures due
1982. Proceeds—Together with bank loans, to be used to

bank loans of certain subsidiaries and for expan¬

sion program of

subsidiaries. Underwriter—To be deter¬
competitive bidding. Probable bidders: Halsey,
Co. Inc.; The First Boston Corp.;/Eastman

mined by
Stuart

Dillon, Union Securities & Co.; White, Weld & Co.; Harriman Ripley & Co. Inc. Bids—Tentatively scheduled to
be received up to 11:30 a.m. (EDT) on May 28.
National

Lithium Corp., New

York

Feb. 19 filed 3,120,000

shares of common stock (par one
cent).; Price—$1.25 per share/ Proceeds—For acquisi¬
tion of properties; for ore testing program; for assess¬
ment work on the Yellowknife properties; and for cost
of a concentration plant, mining equipment, etc.
Under¬
writer—Gearhart & Otis, Inc., New York.
Offering—
Indefinite.
•

National

Telefilm

Associates,

(5/15)

Inc.

$7,500,000 of convertible subordinated
debentures due May 1, 1967. Price—To be supplied by
amendment. Proceeds—For reduction of short-term debt,
April

filed

capital

working

and

Under¬

other corporate purposes.
York. /

writer—Bache & Co., New

Brunswick

New

(Province

of)

tures due Jan.

officers and employees of this company and
of its affiliate, Mason Mortgage & Investment Corp.

wick

Dec. 14 filed $12,000,000 of 25-year

(in denominations of $250 each). Proceeds—For in-,
vestment. Underwriter — None.
Offering to be made,
par

through

McCormick Armstrong Co.,

capital. Office—1501 East Douglas, Wichita
7, Kan.
Underwriters — Small-Milburn Co., Inc.; MidContinent Securities Co., Inc.;! First Securities Co. of

For working

& Co., all

sinking fund deben¬
1, 1982. Price—To be supplied by amend¬

Proceeds—To

ment.

Electric

Power

advanced

Commission to

The New
repay

Bruns¬
bank loans.

Underwriter—Halsey, Stuart & Co. Inc., New York and

Chicago.

Inc.

(letter of notification) 31,940 shares of com¬
stock (par $5). Price—$6.50 per share. Proceeds—

•

Offering—Indefinitely postponed.

New

England Electric System
Dec. 3 filed 819,000 shares of common stock
being offered in exchange for capital stock
Gas

Electric

for each Lynn
Jackson

Co.

share.

Curtis

if McFaul (Claude) Corp.
April 18 (letter of notification) 10,000 shares of common
stock. Price—At par ($10 per share). Proceeds—For ac¬

April

basis

the

two

(par $1)
of Lynn

NEES

Dealer-Managers—Paine, Webber,

and

Moseley

Co,

both of

Boston, Mass.

quisition of production machinery and equipment; pur¬
chase of materials and tooling; advertising; patent ex¬
penses and working capital.
Office—560 Mills Tower
Building, San Francisco, Calif. Underwriter—Financial
Investors, Inc., Sacramento, Calif.

if Mercantile Acceptance Corp. of California
April 22 (letter of notification) $21,900 of 12-year 5*2%
subordinate capital debentures. Price—At face amount.
Proceeds—For working capital. Office—333 Montgomery

Francisco, Calif. Underwriter
Securities Corp., San Francisco, Calif.

Street,

^Proceeds—For investment. Sponsor and Invest"**■

St.

of Wichita, Kan.

(5/22)

18,667 shares have been offered to

Feb. 8 filed $1,000,000 of

Kansas, Inc.; Ranson & Co., Inc., and Brooks

Power Co.

Fifth

repay

A Madison Avenue & 58th Corp.
April 23 (letter of notification) 22,229 shares of com¬
mon stock (par 10 cents).
Price—$2 per share. Proceeds
—For

remaining

—T. Coleman Andrews.

^ Link-Belt Co., Chicago, III.
April 30 filed 26,791 shares of common stock (par $5) to
be offered for subscription to a selected group of of- *

mon

Interstate

The

public. Price—To stockholders, $1.25 per share and to
public, $1.50 per share. Proceeds — For retirement of
outstanding bonds and working capital. Office—126 N.

March

Interstate Power Co. (5/22)
April 19 filed 680,000 shares of common stock (par $3.50).
Price—To be supplied by amendment. Proceeds — For

Co., New York.

oversubscription privilege); rights to expire on May

31.

if Lexington Funds, Inc., New
Plans.

Co.

(letter of notification) 170,154 shares of com¬
mon
stock (par $1) of wnicn 151,487 shares are being
offered to stockholders of record April 1, 1957 on the
basis of seven shares for each six shares held
(with

(May 2).

March 21

Underwriter—Kidder, Peabodv &

Midland Telephone

March

-Ar Lancashire Steel Corp., Ltd.
April 20 filed 80,000 American depositary
New

•

competitive bidding.

New York.

(5/6-10)

Lake Lauzon Mines Ltd., Toronto, Can.

—None.

construction program.

Underwriter—To be
Probable bidders:
Halsey, Stuart & Co. Inc.; The First Bostor
Corp.;
Blyth & Co., Inc.
Bids—Three bids were received on
Aug. 1, all for 4%s, but were turned down. Reoffering is
expected sometime during the first six months of 1957.

loans and for construction program.

—None.

•

Mason

Interstate Fire &

Casualty Co. (III.)
March 29 filed 20,000 shares of common stock to be of¬
fered for subscription by common stockholders of record
April 1, 1957, on the basis of two new shares for each
five shares held; rights expire on June 10. Price — $21
per share. Proceeds—For working capital. Underwriter
.

Center, Inc. for its

Norfolk, Va., and $500,000 to pay
second deed of trust on the shopping center land and
shopping center

March 28 filed

International

stock. Price—$1,008
to subsidiaries and
Of total, $5,000,000

Des Momes, Iowa

cents), of which 185,000 shares are to be offerrd by

one

$1,000 of debentures and 40 shares of
per unit.
Proceeds — To be loaned
used by them as working capital.
will be advanced to Janaf Shopping

ordinary

Houston, Texas

(letter of notification) 100,000 shares of common
Price—At par ($3 per share). Proceeds—For in¬

Feb. 27

Michigan Wisconsin Pipe Line Co. <
b
July 2, 1956 filed $25,000,000 of first mortgage pipe line
bonds due 1976. Proceeds—To pay off short term bank
determined

Janaf, Inc., Washington, D. C.
April 23 filed $10,000,000 of 5V2%-8% variable interest
sinking fund debentures and 400,000 shares of common
stock (par 20 cents) to be offered in units consisting of

Mount

and common stock on the

future

pounds and

extend the medium and long-term

To be supplied by

—

finance

•

and 18.000 shares for a

company

•

(2084)

San

Mexico

Refractories

Co., Mexico,

—

Mo.

Guardian
(5/8)

April 17 filed 90,000 shares of common stock (par $5),
of which 80,000 shares are to be publicly offered and 10,000 shares offered for subscription by certain employees.
Price—To be

supplied bv amendment

Pro"****!

expansion program and working capital.
Reinholdt &

Gardner, St. Louis, Mo.

—

vor

Underwriter—

New York State Electric & Gas Corp.

(5/14)

mortgage bonds due
May 1, 1987.
Proceeds — To repay bank loans and for
construction program.
Underwriter—To be determined
by
competitive
bidding.
Probable bidders: Halsey,
Stuart & Co. Inc.; Kuhn, Loeb & Co.; Blyth & Co., Inc.,
and Smith, Barney & Co.
(jointly); The First Boston
Corp. and Glore, Forgan & Co. (jointly); Harriman
Ripley & Co. Inc.; Kidder, Peabody & Co. and Salomon
Bros. & Hutzler (jointly).
Bids—To be received up to
noon
(EDT) on May 14 at 61 Broadway, New York 6,
N.

filed

$25,000,000 of first

if New York Telephone Co. (5/21)
April 26 filed $70,000,000 of refunding mortgage bonds,
series J, due May 15, 1991.
Proceeds — Together with
proceeds from sale of 1,400,000 shares of $100 par com¬
mon

stock

American

Telephone

mined
Stuart

Telegraph

Co.,

Underwriter—To be deter¬
by competitive bidding. Probable bidders: Halsey,
& Co. Inc.; Morgan Stanley & Co. Bids—Sched¬

parent, to retire bank loans.

uled to be received

May 21.

Volume 185

Number 5634.

The Commercial and Financial Chronicle

„

(2085) "41 "

^ir Niagara-Mohawk/Power -Corp./(S/22)
April

filed 200,000

stock

shares; of

cumulative

(par $100).; Price—To he supplied by

Northwest

Ripley .& Co. Inc., New York.

Proceeds

—

For

,/•.

Telephone Co.

Raymond Oil Co., Inc., Wichita, Kansas
Sundstrand Machine Tool Co.
(5/13) 7
Jan. 29 filed 200,000 shares of common stock
April 22 filed 175,118 shares of common stock (par
(par 25
$5)
cents). Price—To be supplied by amendment. Proceeds Y to be offered for subscription by common stockholders
—For exploration, development and
operation of oil and -♦ at the rate of one new share for each eight shares held '•
on or about
gas properties. Underwriter—Perkins & Co.,
May 10; rights to expire on May 27. Price— 1
Inc., Dallas,
Tex. Offering—Postponed indefinitely.
To be supplied by amendment.
/
Proceeds— To reduce

March 28 (letter of notification) 7,200 shares of

common

stock
a.

Price—To be supplied by >/ during the year ended June
30, -1958.: Proceeds—To
working capital and other■< * selling stockholders. Underwriter—None.
Such/shares
' Underwriters — Kuhn;' Loeb & Co.- rf will be* sold*
through. brokerage, houges. pp ;toe/^ew ;
New York; and Johnson, Lane, Space & Co., Inc., Savan- \ York Stock
Exchange- and the Philadelphia-Baltimore
nah, Ga. %
:/
...J
•-/ /■''//./
Stock Exchange.
r*"
■ :

.amendment.

amendment/ 7 corporate purposes.

Proceeds—To: reimburse the company's treasury and to
finance in part'the company's construction program; Un¬
derwriter—Harriman

shares) offered to the public.

preferred

(par $5)' to be; offered first to stockholders on
preemptive basis; unsubscribed to employees; and
to public. Price—$16 per share/Proceeds—

remainder

For

construction, payment of current: liabilities and
working capital. Oifice—1313 Sixih St., Redmond, Ore.

bank

loans

and lor wonting capital.-.
Office—Rockford,
Raytone Screen Corp.
111.: Underwriters
Merrill
15 (letter of notification) 50,000 shares of common
Lynch,/Pierce, Fenner &
Beane, New York; Bacon, Whipple & Co., Chicago, 111.;
7/7.7'77
stock (par 10 cents). Price—$3.25 per share.
Proceeds
*
and Dean Witter &
Co., San Francisco,, Calif. -V ; r .;
Ohio 'Power Co.
—To reduce debt, for purchase of
'C//:
inventory and for
Sept. 20 filed 60,000 shares of cumulative preferred stock
Supercrete, Ltd.
working capital. Office—185 Clermont Ave., Brooklyn, y
/)' < •'//:: r
(par $100 k Proceeds—For construction program. Under¬ r N. Y. Underwriter—J. P. Emanuel &
April 1 filed $i,000,000 of convertible subordinated de¬
Co., lnc- Jersey
•
writer—To be determined by competitive
/
bentures. Price—To be supplied by amendment. Proceeds
City, N. J.^;.:.<w
</
/.J
bidding. Prob¬
able bidders;. The First Boston Corp.; Blyth &
—To repay $550,000 bank
loans, and for increased facili¬
Co., Inc.;
y/v -Resource Fund, Inc., New York
.Kuhn Loeb & Co.; Eastman Dillon; Union Securities & Co.
ties and working capital. Office — St.
Boniface,. Canada.
March 29 filed 100,000 shares of common stock
(par $1).
• Underwriter—Straus, Blosser &
and Salomon Bros. & Hutzler (jointly); Harriman
Ripley' Price—At market. Proceeds—For
McDowell, Chicago, III.
investment.
Under¬
& Co., Inc. and Stone & Webster Securities
•
CoVp. (joint-.7
Topp Industries, Inc. '■ (5/13-17)7/,:/5 7
writer—None.; D. John Heyman of New York is Presi- V
-ly); Lehman Brothers. Bids—/The two received up to il ;
dent;' Investment Advisor—Resource Fund
Management ^ April 19 filed $2,750,000 of 6% convertible subordinated
am.
(EST) on Oct. 30 were rejected, 7:- 777//" 4'v;*y: \
debentures due May 1, 19777 Price — To be
Co., Inc., 60 Broadway, New York, N. Y.
supplied by
amendment. Proceeds—To reduce short-term
/^Oxford County Telephone & Telegraph-'Co., 7777/
borrowings
Rogosin Industries, Ltd., New York
by $1,250,000; $650,000 to purchases additional capita]
,-V.vf Buckfield,
March 1 filed 75,000 shares of common stock.
■'
Price— *
April ia (letter of notification) 6,€00 shares of common ';
equipment; and the balance for working capital/ Office
At par ($100 per share).
Proceeds—For site improve¬
stock'to ;be offered to present stockholders en the basis
—Beverly Hills, Calif. Underwriter—Dempsey-Tegeler
ments and buildings in
Israel; for process equipment
& Co., St. Louis, Mo.
of preemptive rights, thereafter to the public.' Price—
: and machinery; for utilities;
working capital; and other
At par ($5 per >sharei< ,rProceeds —-For
Trans Empire Oils Ltd.,
converting ex- .;
Calgary, Alberta, Canada ■i
J corporate purposes. Underwriter—Norie./;
: V' • /
* April 9 filed
change at Tunaer from a manual service to a dial autm- :
436,291 shares of common stock (par $1.25)
St. Louis Insurance Corp., St.
Louis, Mo...2
to be offered for subseirption by common stockholders
.7 i&' r
M[arch 27 :fil6d 1,250 shares of class C. cumulative
pr6- ^ of record March 28, 1957 at the rate of one new
share
Paul Hesse 3-D Arts,: Inc. 7(5/15)
ferred stock (par $57).
Price—$97 per share.
Proceeds
for each six shares held. Price—$2.50
per share (Cana¬
: March 28 (letter, of notification) 300,000 shares of
eom> -r i—To R. M. Realty Co., who is the selling stockholder.
dian). Proceeds—For capital expenditures and expendi-J 11/
•mon stock (par l0 6ents).>
PrIce—$1 per share. Proceeds ' Underwriter—Yates, Heitner & Woods, St.
Louis, Mo. '
tures for exploration activities; also for other
—For machinery, equipment and
general
working capital. Office
'•St. Regis Paper Co. '
-y //'//.:/'■ v
corporate purposes. Underwriter—None.
—1250 Brookline Blvd., Pittsburgh, Pa. Underwriter-rApril 1 filed 850,000 shares of common stock (par $5)
Tripac Engineering Corp.
ReiHy, Hoffman & Sweeney, Inc.,1 New York.;? 777/7/to be offered in exchange for common stock of St. Paul
Feb. 27 (letter of notification) 100,000 shares of class A
Pepsi-Col* Mohan "Bottlers,, inc. /:/7 7
& Tacoma Lumber Co. on the basis of 56% shares of •
7^?!
> common stock
(par 10 cents).
Price—$1.50 per share*'
April 11 (letter of notification) 60,000 shares of common
St. Regis stock for each share of Lumber
company stock.
Proceeds—For working capital; machine
\ stock (pgr 50 cents).; Price—$5 per share. Proceeds—
tools; equip¬
The offer will be declared effective if 95% of the latter /
ment and proprietary development.
Office—4932 St.
For general funds of the company.
Office—207 West
stock is deposited for exchange (and may be declared
Elmo Ave* Bethesda 14, Md.
8th St., Coffeyville, Kan./ Underwriter — G. F. Church
Underwriter—Whitney &
effective at option of St. Regis, if. liot- less than 80%
Co., Inc., Washington, D. C.
7 .*7 '
-7; 7 7 , •• 77 r7:/.7 ;
& Go., SC Louis, MoV •
of the stock is deposited).
^ / 7 7.7/ ':
United States Air Conditioning Corp. ;7 7.'
-V Plymouth Fund, Inc.,
''// Scruggs (4Loyd) vCo., Festus, Mo. - Miami, Fla.
777777?777S".*'lv
*•'
Sept 27 filed 600,000 shares of common stock (par 10
Feb.: affiled 580,000 shares of capital. stock
(par $1).
April 11 (letter of notification) 54,646 shares of common cents), of Which 50,000 shares are to be offered to em¬
i Price—At market. "'Proceeds—For investment. Understock to be offered for subscription by common stock¬
ployees, distributors and .dealers; 50,000 shares, plus
writer
Plymouth Bond & Share Corp., Miami, Fla
holders on the basis of one new share for each share
any of the unsold portion of the first 50,000 shares, are
/Joseph A. Ray vis, also of Miami, is President. 7;/.
held. Price—At par ($1 per share). Proceeds—For work-/, to be
'
offered to the public; and the underwriter will be
Potomac' Edison Co. H5/S)
ing capital. Off ice—^1049 Front. St., Festus, Mo. Underv>/::/ //-;//'7' >■'-.77- 7; '77
granted options to acquire the remaining 500,000 shares
writer—None,
April 1 filed $14,000,000 of first-mortgage and collateral
Cor reoffer to the public. Price—At market
"/Vyy;;/■'
prices.' Pro¬
trust bonds due 1987. .Proceeds — To repay bank loans
ceeds—For working capital and general
^ Sears, Roebuck & Co.
corporate pur¬
and for construction program.
Underwriter—For any
poses. Office—Philadelphia, Pa. Underwriter—Mortimer >
April 25 filed 25,000 memberships in the company's Sav¬
bonds to be -determined by competitive bidding. Prob¬
ings and Profit Sharing Pension Fund, together with 2,- - B. Burnside & Co., Inc., New York.1 Offering—Date
able bidders: Halsey, Stuart & Co. Inc.; White, Weld &
indefinite.
:/
000,000 shares of common stock which may be acquired
Co.; Equitable-Securities Corp.; Kuhn, Loeb & Co* and
by the Fund.
United States Leasing Corp. >
fBlyth & Co;, Inez (jointly); Lehman Brothers; Kidder,
March 22 filed 800,000 shares of capital stock
:> Shop Rite Foods, Inc.
(par $1).
/ ' / .//
Peabody & Co.; W. C, Langley &r Co. and The First Bos¬
Price
To be supplied by amendment. Proceeds — For
March 28 (letter of hotificatiori) 15,000 shares of
com-/;
ton Corp.
(jointly).:: Bids—To be received up to noon
mon stock (par $5).
working capital and general corporate purposes. Under¬
Price—$11.50 per share. Proceeds—
:(EDT) on May 8 at office of West Penn Electric Co.,
For fixtures and inventory.
Office
617 Truman .St.^y, writer— Sclrwabacher & Co., San Francisco,, Calif. L Of¬
50 Broad St* New York, N. Y7&'77; 7
N. E., Albuquerque, N. M. Underwriters—First South¬
fering—Expected this week.
7.f/",7/'7:' 7
■
-/
Public Service Co. of Colorado (5/20) -7
-west Co., Dallas,
U. S. Semiconductor Products, Inc.
Tex.; and Minor, Mee & Co., Albuquer¬
April 19 filed $30,000,000 of first mortgage bonds due
que, N. M.
April 11 filed 500,000 shares of common stock (par $1).
1987. Proceeds—rTo repay bank loans and for new con¬
Price
To be supplied by amendment. Proceeds — For
Southwest Acceptance Co., San Antonio, Texas
struction^ Underwriter—To be determined by competi¬
purchase of new materials and working capital.
March 26 (letter of notification) $300,000 of 6% deben¬
Office
tive-bidding. Probable bidders: Halsey, Stuart & Co.
tures due, 1967.
Phoenix, Ariz. Underwriter — Jonathon & Co., Loa
Price—At face amount. Proceeds—For/
Inc.; Kidder, Peabody & Co. and White, Weld & Co.
additional working capital.
Angeles, Calif.
Underwriter — First Trust
j
(jointly); The First Boston Corp.; Blyth & Co., Inc. and
Co. of Lincoln (Neb.), and Beecroft, Cole & Co., Topeka,
• United Steel Companies, Ltd.
Smith. Barney & Co. (jointly); Lehman
Brothers; Harri¬
Kansas.
April 29 filed 80,000 American depositary receipts for
man
RiDley & Co. inc.
Bids—To be received up to
ordinary shares. Depositary — Guaranty Trust Co. of
Spalding (A. G.) & Bros. Inc. (5/7)
11:30 a.m.' (EDT) on May 20 at Guaranty Trust Co. of
New York.
^
7 ;
April 11 filed $2,017,300 of 5%% subordinated convert¬
New York, 35 Nassau St., New
York, N. Y.
ible debentures due June 1, 1962, to be offered lor sub¬
if United Utilities, Inc., Abilene, Kansas
if Public Service Co. of New Mexico
scription by common stockholders of record May 7, 1957
April 25 filed 105,000 shares of common stock (par
April 25 filed 181,997 shares of common stock (par $5)
on the basis of $100 of debentures for each 30 common
$10) to be offered in exchange for stock of Oregonof which 166,997 shares are to be offered for
subscrip¬
shares held.
Price—At par. Proceeds—To reduce bank
Washington Telephone Co. on the basis of 2 V2 shares for
tion by common stockholders at the rate of one new
loans.
Underwriter
None.
The
largest stockholder, ; each Oregon-Washington common share and five shares
share for each 10 shares held;. The remaining
15,000
Pyramid Rubber Co., has agreed to purchase all of the
for each Oregon-Washington preferred share. This offer
shares are to be offered to employees. Price—To be sup¬
debentures not subscribed for by the other stockholders. ;
is subject to acceptance by not less than 80% of each
plied by amendment. Proceeds — For construction pro¬
class of stock. Dealer-Manager—Zilka, Smither & Co.,
if Stanley Works
gram.
Underwriter—Allen & Co., New York, for offer
Inc., Portland, Ore.
' '
April 18 (letter of notification) an undetermined num¬
/ 7 '
to stockholders.
Offering—Expected to be offered to¬
ber of shares of common stock (par $25) to be offered to
Valley Telephone Co., Silverton, Ore.
wards end of May.
/
/
;
employees of company and of its designated subsidiaries
March 12 (letter of notification) 12,811 shares of com¬
Pyramid Productions, Inc., New York
on
a
payroll deduction plan'.: Proceeds — For working
mon stock being offered to stockholders on the basis of
Sept. 27 filed 220,000 shares of common stock (par $1),
capital.
Office—195 Lake Street, New Britain, Conn.
one new share for each two shares held as of
April 10;
of whieh 200,000 shares are to be offered to public and
Underwriter—None.
rights to expire on May 10. Price — At par ($10 per
20,000 shares issued to underwriter. Price—$5 per share.
share). Proceeds — For expenses for operating a public
if Stewarts & Lloyds, Ltd.
Proceeds—To retire $125,000 of outstanding 15% deben-f
(telephone ' and
telegraph).: ; Underwriter —
April 29 filed 80,000 American depositary receipts for / utility
tures as well as a $173,180 debt to Trans-Union

Underwriter—None,

//,./■'/

v/•//-///7/77//'

—

Feb.

/•

•

■

—

„

—

•

Produc¬

tions.

and/for.

Inc.;

working

capital.

vision releases.

Underwriter—-E.

York

'•'

-/.

'' ^

...

Co.,

Stinnes

......

Quanta

shares.

Depositary

—

Guaranty

New York.

New

Corp* Santa Fe, N. Mex. (5/20)
April 22 filed 700,000 shares of capital stock (par five
cents>.<Price-^50 cents per share. Proceeds—For build¬
ing program, for future development of mineral deposits
and working capital.; Underwriters—Frederic H. Hatch
•

ordinary

Business—Tele¬

L. Aaron

Trust

.•*•/.

March 29 filed 530,712 shares of common stock (par $5), ;
the
presently outstanding 988,890 common shares.

Proceeds

the

Attorney General of the United
States., Under writer—To be determined by competitive
bidding. Probable bidders include Kuhn, Loeb & Co.,
—

Lehman Brothers and Glore, Forgan & Co.

if Radiation. 1*»r. z'5/14)

ordinary

April 25 filed 226,333 shares of class A common stock
(par 25 cents), of which 186,333 shares are to be offered
to

stockholders

scription
each

are
are

record

the basis of

three

rights

shaies

expire

about
one

class
on

May

14,

1957 for sub¬

share of class
and

May 28.

stock for

stock held;
remaining 40,000

common

The

to be

stockholders.

offered publicly for account of selling
The subscription rights of certain principal

stockholders would

underwriters, and the

purchased and

new

exercised by

the

stock created thereby (129,733

if Summers (John) & Sons, Ltd.
April 29 filed 80,000 American depositary

(Hugo) Corp., New York

Co.,-Inc., New York; Clak-k, Landstreet & Kirkpatrick,
Inc., Nashville, Tenn.; and Minor, Mee & Co., Albuquer¬
que, N. M.
-

Co.

New

shares.

Depositary

—

Guaranty

(jointly).
receipts for
Co. of

Trust

York.

Sun

Oil

Co.,

Philadelphia,

Pa.

April 18 filed 15,000 memberships in the Stock Purchase
Plan
for employees of company and its subsidiaries
and

maximum

161,000

common

stock

(no par) which it is anticipated may be purchased under
the

plan during the

year

ending June 30, 1958.

Sun Oil Co., Philadelphia, Pa.
April 18 filed a maximum of 228,904 shares of common
stock
(no par) to be offered for possible public sale

Daugherty, Butchart & Cole, Inc., Portland, Ore.

if Vanderbilt Mutual

Fund, Inc.
April 29 filed (by amendment) 380,000 additional shares
of

common

stock.

vestment.

Price—At market.
'

•

"••••'

Proceeds—For in¬

V''

if Washington Gas Light Co. (5/16)
*■
.7 !
J
April 25 filed $8,000,000 refunding mortgage bonds due
1982. Proceeds—To repay bank loans and for construe-,
,

tion

program.

Underwriter

—

determined

competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; Blair & Co. Incorporated and Baxter & Co.
(jointly); Merrill Lynch, Pierce, Fenner & Beane and
Stone
& Webster
Securities
Corp. (jointly); Kidder,
Peabody & Co.; Equitable Securities Corp; Eastman Dil¬
lon, Union Securities & Co.; The First Boston Corp. Bids
(EDT) on May 16.

—To be received up to 11:30 a.m.
•

Electric

Western

Co., Inc.

April 16 (letter of notification) 2,856 shares of common
stock (no par) being offered for subscription by minor¬

ity stockholders of record April 9, 1957 at the rate of one
new share for each nine shares held; rights to expire on
.
.

Continued

page

The Commercial and Financial Chronicle

(2086)

Continued from page

An additional 1,565,662

June 3.
for by
Price

41
shares will be subscribed ;

American Telephone & Telegraph Co., the parent.
$45 per share. Proceeds
For expansion, etc.

—

Broadway, New York 7, N. Y.

Office—195

Underwriter

28,611 additional shares of capital stock (par $5)

the basis of

—$24.50

Rawlins, Wyo.

Nuclear Corp.,

Western

$400,000 of 5%% subordinated deben¬
tures, series B, and 440,000 shares of common stock (par
one cent) to be offered in units of $1,000 of debentures
filed

end 1,100 shares of stock. Price—$1,011 per unit. Pro¬
ceeds—For capital expenditures and operating purposes.

Underwriter—Bosworth, Sullivan & Co., Denver, Colo.

share.

per

increase

Proceeds—To

March 16 (letter of
stock

Birdsboro

capital and

Steel

was

additional

dends.
•

notification) 1,000,000 shares of com¬
to be offered as follows:

(par five cents)

200,000 shares to present stockholders on a basis of one
new
share for each share held and 800,000 shares to
the

public. Price — To stockholders, seven cents per
share; to public, 10 cents per share. Proceeds—For min¬
ing expenses. Office—139 N. Virginia St., Reno, Nev.
Underwriter—None.

if Westinghouse Electric Corp.
April 25 filed 400,000 snares of common stock (par
$12.50) to be offered for subscription by employees of
this company and its subsidiaries under the company s
Employee Stock Plan.
; Wilson & Co., Inc.
Aug. 28 filed $2U,UUU,000 of 20-year sinking fund de¬
bentures due 1976.
Price—To be supplied by amend¬
ment.
Proceeds — To
redeem
presently outstanding

Edison Co.

Feb.

first mortgage bonds, to repay bank

loans and for ex¬
pansion program.
Business—Meat packing firm.
Un¬
derwriters—Smith, Barney & Co.; Glore Forgan & Co.
and Hallgarten & Co., all of New York City. Offering—
Indefinitely postponed.

Co.

was

additional

common

reported

plans

company

stock

its

offering of

common

(A.

M.)

Co.

was
announced stockholders on May 7 will
authorizing a new class of 100,000 shares of
cumulative preference stock (par $100) and on increas¬
ing the authorized outstanding indebtedness to $15,000,000, in connection with its- proposed recapitalization
plan. There are no specific objectives involved. Control

Underwriter

General

Dillon,

Tire
Read

Rubber

Co. * in

Prospective Offerings

★ Central Hudson Gas & Electric Corp.

long-term financing in 1957. On Sept.
public offering of 400,000 shares of com¬
mon stock was made through Blyth & Co., Inc. and Mer¬
rill Lynch, Pierce, Fenner & Beane and associates.

Kidder, Peabody & Co., New York.

Advance Mortgage Corp., Chicago, III.
Dec. 4 it was reported this company (to be

mortgage bonds.

19, last

new

surviving
following merger of First Mortgage Corp.
and Irwin Jacobs & Co. of Chicago)
plans a public
offering of $1,000,000 class A 6% participating convert¬
ible stock (par $1). Underwriter—Baker, Simonds & Co.,
Detroit, Mich. Offering-nrExpected in May.
~

corporation

Air

was

sell

derwriter—Reynolds & Co., New York.
Alabama

Great Southern RR.
(6/4)
tentatively expected to be received by the com¬
pany on June 4 for the purchase from it of about $3,000,000 equipment trust certificates. Probable bidders: Hal¬
sey, Stuart & Co. Inc.; Salomon Bros. & Hutzler.
are

★

American European Securities Co.
April 24 stockholders approved a proposal

to increase
capitalization from 600,000 shares (con¬
sisting of 500,000 common shares and 100,000 preferred
shares) to 1,000,000 common shares, without par value.
It is probable that additional common stock will be

although

stockholders during the current year
offering is presently planned. Underwriters

common

—Dominick & Dominick in United
States; and Pictet &
Cie, in Switzerland. Latter owned of record, but not

beneficially,

March

1957,
shares outstanding.

common

380,532

the

★ Arizona Public Service Co.
April 26 it was reported company plans to issue
in late Summer or
early Fall an undetermined
of bonds.

Underwriter

—

done

459,379

amount
was

class A

common

was

announced

stock

125,000 shares of
(par $3) is planned the latter part

of April or early in
May. Of the total 50,000 shares will
be sold by
company and 75,000 shares by selling stock¬
holders. Price — $10
per share. Proceeds — For general
corporate purposes. Business—A short haul
motor com¬
mon carrier
operating over 3,000 miles or routes in Illi¬
nois, Indiana, Michigan and Ohio.

Mich.

Underwriter—Cruttenden,

cago, 111.

Baltimore & Ohio RR.

Office—Grand Rapids
Podesta & Co., Chi¬
'

(5/9)

Bids will be received
by the company up to noon (EDT)
May 9 for the purchase from it of

ment
15

trust

certificates

Probable

years.

★

Telephone Co.

?iriic?5

sell

due

$3,585,000 equip¬
annually in 1-to-

Halsey, Stuart & Co. Inc.;

Pennsylvania

(7/31)

was announced company plans to issue

$50,000,000 of

To redeem
—-To

bidders:

Salomon Bros. & Hutzler.

new

and

debentures due 1997.

$50,000,000 of 5%

Proceeds—
series C bonds. Underwriter

determined

by competitive bidding. Probable
bidders: Halsey, Stuart & Co.
Inc.; Morgan Stanley &
Co.; The First Boston Corp.; White, Weld & Co. and
Eastman Dillon, Union Securities & Co.
(jointly). Bids

Expected to be received

about

July 31.

$18,000,000

Proceeds—To

to $20,000,000 first
bank loans and for
be

determined

by
Halsey, Stuart
& Co. Inc.; Morgan Stanley & Co.; Kuhn, Loeb &
Co.;
Eastman Dillon, Union Securities & Co.; The First Bos¬
ton Corp.; Harriman Ripley & Co. Inc.; Merrill
Lynch,
Pierce, Fenner & Beane and Stone & Webster Securities
Corp. (jointly).
*
7

April 9 it

Illinois

Public

bidders:

Service Co.

reported company plans to issue and sell

was

777/77-;,

/,7';7.,7'777:'\

$50,000,000

(6/11)

plans to issue and sell
25-year

debentures

viz.: $25,000,000 in June and $25,000,000 in the
Underwriter
To be determined by competitive

Fall.

—

$40,000,000 of first mortgage bonds this Fall. Proceeds— ;
bank loans and for construction program. Un- ;
derwriter
To be determined by competitive biddings-

To repay

—

repay

Probable

finance

★ Consumers Power Co. 7
was reported company plans to issue and sell

plans to issue and

Underwriters—To

bidding.

April 22 it
,

Probable bidders: Halsey, Stuart & Co. Inc.; White, Weld-,
&

Co.

Shields

and

(jointly); Morgan Stanley &

Co.

Co.; The First Boston Corp. and Harriman Ripley & Co.
Inc.
-

7 .7 ' ■7.7 7

(jointly), -b 7''7

7,:v/7v777;..- 7'H:77777

Delaware Power &

Light Co. (6'25)
April 26 H. H. Plank, President, announced that com.-;,
pany plans to issue and sell $15,000,000 of first mortgage
collateral

and

due

bonds

trust

determined

1987.-

Underwriter—To.

competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Eastman Dillon, Union
Securities & Co.; Merrill Lynch, Pierce, Fenner & Beane
and Kidder, Peabody & Co. (jointly); Kuhn, Loeb & Co.,
by

fWood, Strutliers & Co.

$10,000,000 of 1st mtge. bonds.Proceeds—To reduce bank

Salomon

loans and for construction program. Underwriter—To be
determined by competitive bidding.
Probable bidders:

(jointly); White, Weld & Co. and Shields & Co. (jointly);

Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler;
Equitable Securities Corp.; Eastman Dillon, Union Secu¬
rities & Co.; Blyth & Co., Inc.; Kidder, Peabody & Co.;
and Merrill Lynch, Pierce, Fenner & Beane
(jointly);

Kuhn, Loeb & Co. and A. C. Allyn & Co., Inc. (jointly).
Offering—Expected late in 1957.
Central

Louisiana

Electric

Co., Inc.
plans to issue and

Francis

Bros.

duPont

Brothers.

Lehman

received

Hutzler

Co. and Reynolds &

Co.. (jointly);

Bids—Tentatively .scheduled

June 25.

and

Registration—Expected

May 9.

sell

Detroit Edison Co.
March

was

announced

company

plans

$60,000,000 of new securities. Proceeds—For
construction program (estimated to cost about $39,000,000
1957

about

convertible debentures to be placed privately, to be used

year). Underwriter—For bonds, to be determined
competitive bidding.
Probable bidders: The First
Boston Corp. and Halsey, Stuart & Co. Inc. (jointly);
Coffin & Burr, Inc., and Spencer Trask & Co. (jointly).
Bids
Now expected to be received in latter part of

June.

April 8 it
sell

late

company

this

Proceeds

repay

announced

was

year $6,000,000 of first mortgage bonds.
Together with $4,500,000 of 4%% 12-year

—

bank loans and for construction program. Un¬

derwriters—Kidder, Peabody & Co. and White, Weld &
Co. about

the

placement of

middle
an

of last year arranged the private
issue of $5,000,000 series G first mort¬

gage bonds.

licly

some

ceeds—To
gram.

Vermont

Public

Service

Co.

reported company expects to offer pub¬
additional common stock during 1957. Pro¬

was

reduce bank

Underwriter—To

loans

and

for construction pro¬

determined

by competitive
bidding. Probable bidders: W. C. Langley & Co.; Blyth
& Co., Inc.; Lee Higginson Corp.; Harriman
Ripley &
Co. Inc.

(5/6-10)

sale

between

construction.

competitive

Central

Previous bond financing

Associated Truck Lines, Inc.

Fall

April 15 it
and sell

privately through The First Boston Corp, and Blyth
& Co., Inc.
March

this

new

the authorized

offered to

order

bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
White, Weld & Co. and Paine, Webber, Jackson and
Curtis (jointly); Morgan, Stanley. & Cc. and the First
Boston Corp. (jointly)i Bids—To be received up to 11:30
a.m. (EDT) on June 11.
777.77 777 777: 7"77'77/-777 /

Illinois Light Co.
it was reported company

Central

reported company may offer to its com¬
some additional common shares. Un¬

stockholders

Bids

March

Products, Inc., Emmaus, Pa.

Feb. 26 it
mon

Central

year, a

this year,

proceeds of

Co.

debentures

announced company

was

total *' amount

April 9 it

was announced company plans to issue and sell
this year additional first mortgage bonds. Proceeds—To
finance construction program.
Underwriter—Probably

Steel

announced that it plans the issuance

additional

Consolidated Natural Gas Co.
Feb. 11 it

1956.-

March 22 the company announced that it plans to retire
bank loans
($15,000,000 at Dec. 31, 1956) out of the

Conn.; and Estabrook & Co., Boston, Mass.

& Co., Inc., New York,
stock financing, while Kid¬
der, Peabody & Co. underwrote General Tire & Rubber
Co. financing.
~ 777'
7V77 "7-.7'7 7
—

company

(6/6)

Light & Power Co.
7
Feb. 18, it was reported company plans to sell not less '
than $20,000,000 of first mortgage bonds, possibly this
Fall, depending upon market conditions. Proceeds—For
construction program.
Underwriter — Putnam & Co.,
Hartford, Conn.; Chas. W. Scranton & Co., New Haven,

—Acquired

company

-Connecticut

—

Byers

sale

000 to be sold in September.

stockholders

during the first half of this year. Proceeds—To pay off
bank loans
(amounting to $700,000 at Dec. 31, 1956).
Underwriters
Smith, Ramsay & Co. Inc., Bridgeport,
Conn.; and Chas. W. Scranton & Co., New Haven, Conn.

handled previous preferred

Acme

the

which is expected to cost
approximately $87,000,000, which will also be financed,
in part, through the offering of 1,675,415 shares of com¬
mon stock
to stockholders (see above).
Underwriter—
To be determined by competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.;
Merrill Lynch, Pierce, Fenner & Beane and White, Weld
& Co. (jointly). Bids—Expected to be received on June
6 for $20,000,000 debentures with an additional $25,0o0,-

Bids—Expected June 4.

April 8 it

reported

was

its 1957 construction program,

Bridgeport Gas Co.

vote

Transmission Corp.

18,

and

(6/4)

announced that company may issue and

was

$25,000,000 of first mortgage bonds. Stockholders to
vote
May 6 on approving proposed new financing.
Proceeds—For construction program. Underwriter—To
be determined by competitive bidding.
Probable bid¬
ders: Halsey, Stuart & Co. Inc.; The First Boston Corp.;
Lehman Brothers; Harriman Ripley & Co. Inc.; White,

Feb.

Columbia Gas System, Inc.

Boston

White,

Co.;

Forgan

Glore,

Brothers and Allen & Co., both of New York.

March 19 it

Weld

(jointly);

Co.

plans to offer
publicly $7,800,000 of interim notes and 678,900 shares
of $1 par stock in units. (Common stock not sold in units
would be purchased by Delhi-Taylor Oil Corp., or its
stockholders at an average price of $10 per share.) Pro¬
ceeds—Together with funds from private sale of $40,000.000, for construction program.
Underwriters—Lehman
March

Foundry & Machine Co.
announced company may have to obtain
financing, probably this year, to continue
building for the future and earning and paying divi¬
April 19 it

Co.

Coastal

share for each 20 shares neld. Price

new

one

Weld

sell

Uranium Corp.

Western

mon

for

liams

surplus.

—None.

March

Berks County Trust Co., Reading, Pa.
April 15 Bank offered to its stockholders of record April
8, 1957 the right to subscribe on or before May 15, lfc»57

Thursday, May 2, 1957

this

—

7'.

Chance

Vought Aircraft, Inc.
reported company plans to issue and sell
$12,000,000 of convertible securities (debentures of pre¬
was

ferred stock).

Underwriter—May be Harriman Ripley &
Co., Inc., New York.

Morgan Stanley & Co.; Stone & Webster
Securities Corp. Bids—Tentatively scheduled to be re¬
Corp.;

ceived

Sept. 10.

Eastern Gas & Fuel Associates

April 3 it

years.

termined

Eastern Utilities Associates

^ Chesapeake & Ohio Ry.

April
and

(5/15)
expected to be received by the company on May
15 for the purchase from it of $9,000,000 equipment trust

certificates.

Electric

it was announced company proposes to issue
$3,750,000 of 25-year collateral trust bonds.
For advances to Blackstone Valley Gas &

Proceeds

are

Probable bidders:

Halsey, Stuart & Co. Inc.;

Salomon Bros. & Hutzler.

are

(5/14)
expected to be received by this company up to
on May
14 for the purchase from it of

(CDT)

$3,000,000

equipment

trust

certificates, series R, dated
semi-annually Dec. 1, 1957 to
June 1, 1972, inclusive. Probable bidders: Halsey, Stuart
& Co. Inc.; Salomon Bros. & Hutzler.
June

1957

Cleveland

and

due

Electric

Illuminating Co.
company plans to issue and sell
$25,000,000 of first mortgage bonds in the Summer of
Nov. 12 it
1957.

was

reported

Proceeds—To repay bank

tion program.

loans and for construc¬

Underwriter—To be determined by com¬
bidding.
Probable bidders: Halsey, Stuart &
Co. Inc.; The First Boston Corp.; Blyth &
Co., Inc.; Dil¬
lon, Read & Co. Inc.; Blair & Co. Inc., and Baxter, Wil¬

petitive

sell

—

Underwriter—To be deter¬
Probable bidders: Hal¬
sey, Stuart & Co. Inc.; Kidder, Peabody & Co.; Blyth
& Co., Inc.; White, Weld & Co.; Stone & Webster Se¬
curities Corp. and Estabrook & Co. (jointly).
mined

Chicago, Rock Island & Pacific Ry.

noon

announced company may need additional

was

Underwriter—For any bonds to be de¬
competitive bidding. Probable bidders:,
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; White, Weld
& Co., and Kidder, Peabody & Co. (jointly).

next two

Bids

•

Halsey, Stuart & Co. Inc.; The First Bos¬

able bidders:
ton

capital of between $25,000,000 and $35,000,000 during the

April 15 it

Bids

if Duke Power Co. (9/10)
April 22 it was reported company plans to issue and sell
$50,000,000 of first refunding mortgage bonds. Proceeds
—To repay bank loans and for new construction. Underwriter—To be determined by competitive bidding. Prob¬

Erie

April
that

(par

Co.,

subsidiary.

Resistor

23,

by competitive bidding.

new

Corp., Erie, Pa.
Richard Fryling, President, announced
issue of 200,000 shares of preference stock

$12.50) has been authorized and that the 62,475
of outstanding convertible preferred stock (par

are expected to be
Underwriter
early date.
Cleveland, Ohio.

$20)

called for redemption at an
Fulton, Reid & Co., Inc.,

—

if General Telephone Co. of California (6/5)
was reported company plans to issue and sell
$20,000,000 of first mortgage bonds due 1987. Under¬
writer—To be determined by competitive bidding. ProbApril 22 it

Volume

able

185 "Number

bidders:

Jackson

5634.

The Commercial and Financial Chronicle

Halsey, Stuart & Co. Inc.; Paine, Webber,

& Curtis and

Iowa Power &

Stone. & Webster Securities Corp.

April

(jointly); White, Weld & Co. and Kidder, Peabody
Co.

(jointly).- Bids—Expected to be received

Jan. 21
suance

ceeds

To repay bank loans and for

new

& Co.;

—

issue

new

stock

of 50,000

(par $100).

Underwriter

—

Pro¬

Smith,

Iowa Southern- Utilities Co.
was announced company plans to issue and
$5,000,000 of first mortgage bonds later this year.
To repay bank loans and for construction
program.
Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.

sell

Proceeds

Blyth & Co.,

—

Inc.; Kidder, Peabody &
(jointly); Equitable SecuritiesDillon, -Union Securities & Co.
(jointly); Harriman Ripley & Co. Inc.- Bids—Tentatively

Inc.; Kuhn, Loeb & Co.; White, Weld & Co.; Lehman
Brothers, and Bear, Stearns & Co. (jointly) Equitable
Securities Corp..and Salomon Bros. & Hutzler (jointly);

expected to be received up to 11 a.m.

The

Co.

Shields

and

Corp.< and

Co/

Eastman

(EDT)

June 6.

Government Employees Corp. (6/3)
12 it was announced
company plans

March

in the

approximately $500,000 of convertible capital deben¬
1967. Underwriters—Johnston, Lemon &
Co.,
Washington, D. C*
■

sell

reported

plans

company

issue

and

$16,000,000 first mortgage bonds late in June. Pro¬
repay bank loans and for construction pro¬

ceeds—To

Underwriter—To

gram.

bidding.

Probable

Merrill

Lynch,

determined

bidders:

Pierce,

by competitive
Stuart & Co. Inc.;

Halsey,

Fenner

and

Beane and White,
(jointly); Salomon Bros. & Hutzler and
Eastman Dillon, Union Securities & Co.
(jointly); Kuhn,
Loeb & Co. and A. C. Allyn & Co. Inc.
(jointly); Stone
& Webster Securities Corp.; Lee
Higginson Corp.
Weld

•

Co.

Gulf States

April ;25

Utilities Co.

reported

was

bank

leans and

for

June

(6/18)
plans to

issue

Industries Corp;
E. E. Trefethen, Jr., Executive Vice-President,
that a portion of the funds
necessary to meet the $25,000,000 installment due April

and

Proceeds—To repay
Underwriter—To

determined by competitive bidding.
Probable bid¬
ders: Merrill Lynch, Pierce, Fenner & Beane and Leh¬
man
Brothers
(jointly); Stone & Webster Securities

-Corp.;-. Carl M. Loeb, Rhoades & Co.
be

received up

to 11

a.m.

(EDT)

securities
Kaiser

-Bids*—Expected

Co.,

the

companies owned
of certain other assets;

First Boston

June 18.

28,

1, 1957 on its 4%% term loan may have to be provided
by the creation of debt by, or the sale of equity securi¬
ties, of this corporation or Henry J. Kaiser Co., or
through the public or private sale of a portion of the

construction.

new

the

Henry

Underwriter—The

Corp., New York.

Kaiser Industries Corp. ,-.w.
March 13 it was reported registration is expected in near
future of 750,000 shares of common stock
(par $4).
Price—To be supplied by amendment.
Proceeds — To
<

Gulf States Utilities Co.

April

reported

was

company tentatively plans to
preferred stock this year. Proceeds
program.
Underwriter—To
be determined by competitive bidding. Probable bid¬
ders: Slong
Webster Securities Corp.; Lehman Bro¬
thers and Equitable Securities Corpr(jointly); Lee Hig¬

issue and sell

—To

some

finance-

construction-

selling stockholders. Underwriters —The First Boston
Corp., New York; Dean Witter & Co., San Francisco.
Calif.; and Carl M. Loeb, Rhoades & Co., New York.
Kentucky Jockey Corp* -v/'
April 15 it was reported corporation plans to issue and
sell within the next six months $2,500,000 to $3,000,000
of new securities (probably- debentures and common
stock to be offered in units). This offer is expected to

ginson Corp/ and Carl M. Loeb, Rhoades & Co. (jointly);
Kuhn, Loeb & Co.;. Glore, Forgan & Co. and W; C. Langley & Co. (jointly).
;V
. > »
y .
.

Manna Steel Co.,

April 8 it

Birmingham, Ala%
s
reported company plans to issue and sell

was

120,000 shares of class A

stock.

common

Price—$5

cago, 111.; and Odess,. Martin & Herzberg, Inc., Birming¬
ham, Ala.> Offering—Expected in May..' :- 2
>
,

★ Hawaii -(Territory of)

(5/14)

by the Treasurer of the Territory
Co., Room 1515, 14 Wall St., New
York City, up to 10 a.m. (EDT) on
May 14 for the pur¬
chase from the Territory of $14,000,000 public
improve¬
ment bonds dated May
15, 1957 and due $778,000 on May
1, i960.to 1976, inclusive, and $774,000 on May 15, 1977.
at the Bankers Trust

Houston
13

reported

company

$12,000,000 of series C bonds due
Jan. 1, 1958 and for construction program. Underwriter
--To be determined by competitive bidding. Probable
bidders:

offer

may

late

this

Halsey,- Stuart
Co. Inc.; The First Boston
(jointly); W. C. Langley &
Smith, Barney & Co. (jointly).

Corp. and Blyth & Co. Inc.
Co,

and

Louisville & Nashville

RR.

expected to be received by the company some

are

time in the Fall for the purchase

from it of $14,400,000
Halsey,
Stuart & Co. Inc.; Salomon Bros. & Hutzler.

Fall

equipment trust, certificates.

Underwriter—To be determined by competitive bidding,
Probable bidders:
Halsey; Stuart & Co. Inc.; Equitable

Jan. 29 it

.Securities

the

approximately $25,000,000 first mortgage bonds, but
exact amount, timing, etc: has not yet been determined,

Union

Corp.;

Lehman

Securities

Go.

Brothers,

Eastman

Salomon

and

Bros.

.(jointly); Lazard Freres & Co. and Blyth
.(jointly); Kidder* Peabody & Co.
Indiana Harbor
Bids

are

Belt RR.

tentatively

company up to

11:30

chase

from

(EDT)

$8,125,000

Hutzler

Co., Inc.

(6/5)

expected
a.m.

Dillon,

received

first

this

June 5 for the pur¬

mortgage

bonds

due

1982.

Proceeds—To refund bonds due July 1, 1957. Un¬
derwriter— To be determined
by competitive bidding.
Probable
Bros.

bidders:

Halsey, Stuart &
Hutzler; Kuhn, Loeb & Co.

Indianapolis

Power

Co.

Inc.;

Salomon

time

some

feasible, and

1957

market

loans

are

available

utilized, during at least part of
rities will need to
to

be sold

approximately $14,000,000.

loans

and

for

conditions

make

issue of $8,000,000 in bonds in 1958. Tem¬

bank

porary

new

and

probably will be
Additional

1957.

1959

and

secu¬

1960, amounting

Proceeds—To repay bank

construction.

Probable bidders:

Metropolitan Edison Co*
of

$19,000,000

Underwriter

1987.

tive

(6/10)

reported that company is

was

sale

bidding.

—

first

Probable

now

mortgage

determined

Underwriter—May be
& Co. and The First

considering

bonds
due
by competi¬

bidders:

Halsey, Stuart & Co.
Inc.; White, Weld & Co.; Blyth & Co., Inc.; Kidder, Pea¬
body & Co. and Drexel & Co. (jointly); The First Boston
Corp.
Bids—Expected to be received up to 11 a.m.
(EDT) on June 10.
•

Michigan Consolidated Gas

April 24 it

Co.

plans to issue and
$30,000,000 of first mortgage bonds. Proceeds — To
repay bank loans and for construction program. Under¬
was

announced

company

sell

writer—To be determined by competitive

Light Co.
Nov. 21, H. T. Prichard, President, announced that
pres¬
ent plans contemplate an issue of $6,000,000 of preferred
stock

•

able

bidding. Prob¬

bidders:

Halsey, Stuart & Co. Inc.; Smith, Barney
& Co. and Blyth & Co., Inc. (jointly); White, Weld &
Co. and Lehman Brothers
(jointly). Bids — Expected
early in June.
if Michigan Wisconsin Pipe Line Co.
April 24 it was announced company plans to issue and
sell $30,000,000 of first mortgage bonds.
Proceeds — To
bank loans and for construction program.

repay

Under¬

writer—To be determined

able bidders:

Lehman Brothers, Goldman, Sachs

Corp.;

Boston

Blyth

by competitive bidding. Prob¬
Halsey, Stuart & Co. Inc.; The First Boston
& Co., Inc.
Offering—Expected late in

June.

Corp., who underwrote last equity financing.

International
March

April

common

it
on

was

Utilities Corp.
announced stockholders

approving

increase

Missouri, Pacific RR.
were

the

vote

authorized

stock from 2,500,000 to

4,000,000 shares (par $5).
Sherrerd, Philadelphia, Pa.,
handled last eauitv financing.

-Underwriter

Iowa

Gas

—

Butcher

Electric

•for

new

bonds.

Proceeds—To

retire

bank

construction." Underwriter—To

-by competitive bidding.

loans

and

determined

Probable bidders: Halsey, Stu¬

art &

The

Co. Inc.; Kuhn, Loeb & Co.; Glore, Forgan & Co.;
First Boston Corp.; Harriman Ripley & Co.'Inc.;

Eastman

Dillon,

Union

Securities

Co., and White,
•Weld
&
Co.
(jointly); Dean Witter & Co.; Lehman
.Brothers; Equitable Securities Corp.; Blyth & Co., Inc.

expected

are

(5/8)

be received

by the

company

May 8 for the purchase from it of $4,200,000 equipment
trust

certificates.

Co. Inc.;

Probable

bidders:

Halsey, Stuart &

Salomon Bros. & Hutzler.

Montana-Dakota

Utilities Co.

plans to issue and
sell $10,000,000 of first mortgage bonds or convertible
debentures before June 30, 1957.
Underwriter—To be
determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc., Merrill
Lynch, Pierce, Fenner & Beane and Kidder, Peabody
& Co. (jointly); Blair & Co., Incorporated.
March

Co.

April 1 it was reported company now expects to issue
and sell in the second quarter of 1957 $11,000,000 of first
mortgage

Bids

New
Jan. 3,
its

was

reported

company

England Electric System
1956, it

was

announced company plans to merge

subsidiaries, Essex County Electric Co., Lowell Elec¬

tric Light

reported

tentatively plans to?

company

bidders: Halsey, Stuart & Co. Inc.; The First
Corp.; Morgan Stanley & Co.; Kuhn, Loeb & Co*
Eastman Dillon, Union Securities & Co. (jointly).

Boston

and

March 1 it
some

Co., Ltd.

reported company plans to issue and sell
notes and common stock in units.
Proceeds—About,
was

$10,500,000, together with private financing, to be used
for new construction.
Underwriters
Hemphill, Noye#
& Co. and Bear, Stearns & Co., both of New York,(
to head group in United States.
Offering—Expected in
May, 1957.
—

Northern Pacific

Ry. (5/16)
tentatively expected to be received by this:
May 16 for the purchase from it of between
$6,000,000 and $8,000,000 equipment trust certificates.
Probable bidders: Halsey, Stuart & Co. Inc.; Salomon
Bids

are

Bros. & Hutzler.-

Northern States Power Co.
March

was

reported

(Minn.)

plans

company

issue and

sell in the Fall of 1957 $15,000,000 first mortgage bonds;
Proceeds—For construction program.
Underwriter—To
be determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Merrill Lynch, Pierce, Fenner
and Beane, Kidder, Peabody & Co. and White, Weld &
Co. (jointly); Lehman Brothers and Riter & Co. (joint¬
ly); The First Boston Corp. and Blyth & Co., Inc.
(jointly); Equitable Securities Corp.; Kuhn, Loeb & Co.;

Harriman

Ripley & Co. Inc.

Northern

March

States

Power Co.

(6/4)

(Wis.)

plaris to issue and
sell $10,000,000 of first mortgage bonds due 1987. Pro¬
ceeds—For construction program.
Underwriter—To be
determined by competitive bidding. -Probable bidders?
Halsey, Stuart & Co. Inc.; Merrill Lynch, Pierce, Fenner
& Beane; Lehman Brothers and Riter & Co. (jointly);
Blyth & Co., Inc.; The First Boston Corp.; Kidder, Pea¬
body & Co. and White, Weld & Co. (jointly). BidsExpected to be received on June 4.
was

reported

company

Long Island Lighting Co.
April 16 it was announced company ,AphrnS to sell later
this year $40,000,000 of rist mortgage bonds, series J.

Bids

Lighting & Power Co.
was

Proceeds—To refund

•

Bids will be received

Feb.

be underwritten.

per

share.^Underwriters—Cruttenden, Podesta' & Co., Chi¬

was

and

company on

Kaiser

Nov.

issue

Northern Ontario Natural Gas

July, 1957.

it Niagara Mohawk Power Corp.
April 22 it

program.

stated that it is anticipated

company

sell 20C,C00 shares of common stock.

company plans
issue of convertible deben¬

Probable

Walte, Jr., announced

Jersey Central Power & Light Co.
Sept. 12, it was announced company plans to issue and
sell $8,000,000 of first mortgage bonds due 1987 (later
changed to $15,000,000). Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Kidder, Peabody & Co.; The First Boston
Corp.; White, Weld & Co.; Eastman Dillon, Union Secu¬
rities & Co., Salomon Bros. & Hutzler and Merrill Lynch,
Pierce, Fenner & Beane (jointly). Bids — Expected in

Utilities Co.

was

Lake Sulphur Co.

Proceeds—For expansion

tures.

Electric
Co.
Underwriter—May be
competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Company;
Salomon
Bros.
&
Hutzler,
Eastman
Dillon,
Union
Securities & Co. and Wood, Struthers & Co. (jointly);
Lehman Brothers; The First Boston Corp.; Equitable
Securities Corp.; Merrill Lynch, Pierce, Fenner & Beane,
Kidder, Peabody & Co. and White, Weld & Co. (jointly).
Offering—Expected in first half of 1957.
Marrimack-Essex

sell this fall about $40,000,000 of bonds. Un¬
derwriter—To be determined by competitive bidding.

Witter & Co.

Dean

future to sell

near

tures due

Gulf States

Corp.;

Dec. 27, Eugene H.

for

March

Boston

Jefferson

to offer to
stockholders about June 3 the right to subscribe

common

First

43"

Co. and Amesbury Electric Light Co., into one company.
This would be followed by a $20,000,000 first mortgage
bond issue by the resultant company, to be known as
determined

April 2 it

construction.

Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Morgan

Stanley

approved

cumulative preferred
To finance expansion.

Barney & Co., New York.

it was announced the company is planning is¬
and sale of $15,500,000 first mortgage bonds. Pro-:

•—

Light Co. *

stockholders

ceeds

16/6)

&
June 5/

Georgia Power Co.

(2087)

Corp., Lawrence Electric Co., Haverhill Electric

if OutboardMarine Corp.
*
April 22 it was announced company plans to offer addi¬
tional common stock (sufficient to raise about $10,000,000) first to stockholders and sell publicly $10,000,000 of
debentures or notes.
Underwriter—Morgan Stanley &
Co., New York. Meeting—Stockholders will vote May 24

approving financing proposals
split.
.• ?»
■ »

•

Pacific

Power

and

3-for-l

stock
-

Light Co.
April 17, Paul B. McKee, President, announced that
company
expects to raise about $30,000,000 between
now and the end of the year.
Stockholders on April Id
approved an increase in the authorized serial preferred
stock by 250,000 shares and the common stock by 1,200,000 shares.
The type of financing has not been deter¬
mined, but it is anticipated that about one-third of the
funds required will be raised around mid-year and the
balance in September or October.
Underwriter—To be
determined by competitive bidding.
Probable bidders:
(1) For bonds: Halsey, Stuart & Co. Inc.; Lehman Broth¬

Bear, Stearns & Co. and Salomon Bros. & Hutzler
(jointly); Eastman Dillon, Union Securities & Co. and
Kidder, Peabody & Co. (jointly).
(2) For preferred
stock: Kidder, Peabody & Co. and Eastman Dillon, Union
Securities & Co. (jointly); Blyth & Co., Inc., Salomon
ers,

Bros.

& Hutzler and

White, Weld & Co. (jointly).

Peninsular Telephone

Co.

March 28 it was announced company plans to
common
mon

stock

funds from proposed bond sale
finance

offer to its

189,844 additional shares of com¬
l-for-6 basis. Proceeds—Together with

stockholders

new

(probably privately), to
— Morgan Stan¬

construction. Underwriters

ley & Co., and Coggeshall & Hicks, both of

New York

City.

Pennsylvania Electric Co.
12 it was announced company plans to issue and
$6,000,000 of first mortgage bonds. Underwriter—
To be determined
by competitive bidding.
Probable
bidders: Halsey, Stuart & Co. Inc.; Merrill Lynch, Pierce,
Fenner & Beane, Eastman Dillon, Union Securities 8c
Co. and White, Weld & Co. (jointly); Equitable Securi¬
ties Corp.; The First Boston Corp.; Harriman Ripley &
Co. Inc.; Kuhn. Loeb & Co.
• Pennsylvania RR.
Bids are tentatively expected to be received by the com¬
Sept.

sell

pany some

time in May for the purchase from

it of $5,-

equipment trust certificates. Probable bidders:
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler.
490,000

Philadelphia Electric Co.
14 it was also announced company plans to issue
1957 additional first mort¬

Feb.

and sell in the second half of

gage bonds. Proceeds—For expansion program. Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey,

White, Weld &
Stanley & Co. and

Stuart & Co. Inc.;

Co.; The First Boston Corp.; Morgan
Drexel & Co. (jointly).

„

Continued

on page

The Commercial and Financial Chronicle

(2088)

Continued

from

page

The First Boston Corp. and Dean Witter &

Philadelphia Electric Co.

April

plans to offer about
stock to its stockholders about
on a basis of one new share for

the middle of the year
each 20 shares held.

Proceeds

Jan.

Dealer-Managers — Drexel & Co., Philadelphia,
Pa., and Morgan Stanley & Co., New York, N. Y. Offer¬
ing—Expected in June.

gram.

Portland Gas & Coke Co.

March 26 it

was

reported

plans offering to

of 225,976 shares of additional com¬
(par $9.50) about June 10 on a l-for-5 basis;
rights to expire about July 1. Underwriting—To be on a
negotiated basis. Registration—Expected late in May.

the

April 15 it
to its

about

two-thirds of issue.

Canada.

*1+

Balance to

reported company plans to issue and

was

;

Public Service Electric & Gas Co.

rill

was announced company plans to issue and
250,000 shares of cumulative preferred stock. Pro¬
About $25,000,000 for expansion program. Un¬
derwriters—May be Morgan Stanley & Co., Drexel &
Co. and Glore, Forgan & Co. (jointly).

Tennessee Gas Transmission

Puget Sound Power & Light Co. (6/25)
April 12, Frank McLaughlin, President, announced that
company plans to sell an issue of $20,000,000 first mort¬
gage bonds.
Proceeds—To retire bank loans.
Under¬
writer
May be determined by competitive bidding.

Co.

Probable

and

expected.]

Proceeds

Timken

April 16

—

Stockholders
authorized

able

Ferry,

was

Inc.

reported

corporation

considering

Dec. 27 it

Underwriter—Blyth

(5/7)

Trans World

Southern

20,

for the

California

Harold

Edison

balance of this year

for

that

total

$70,000,000

may

Unterberg, Towbin Go.

Midwestern

April 24 it

Light Co.

Offers Midwestern

tronic

Instruments Stock
-

Public

offering of 200,000 shares

Midwestern

common

Instruments,

stock at

was

made

price of $5

Inc.
per

yesterday (May 1)

Unterberg, Towbin Co.

and associates.

Net proceeds from the

financing

will be used by the
company for
plant additions, product develop¬
ment, repayment of loans, addi¬
tions to working capital and other

general corporate purposes.

electro

and

Oct.

200,000 shares

3,000,000 shares to 4,000,000 shares. Underwriter—

n c.,

design

industrial
-

and

tive

Hayden, Stone &
Co.

Oct.

Co.; Hettleman

and

Underwood,
& Co. Incorporated.

Neuhaus

bidding.

Probable

bidders: Merrill Lynch, Pierce,

Securities & Co. (jointly);'Kuhn, Loeb
C. Allyn & Co., Inc. (jointly); Kidder,
Peabody & Co.; The First Boston Corp.
(2) For any
common stock (probably first to stockholders), The First
Co.

Boston

Wisconsin Telephone

Co. (7/9)
announced company plans to issue and sell
$30,000,000 of 35-year debentures due 1992. Proceeds—
For construction program.
Underwriter—To be deter¬
mined by competitive bidding. Probable bidders: Halsey,
Stuart & Co.; Morgan Stanley & Co.; The First Boston
Corp. Bids—Expected to be received at 195 Broadway,
April 3 it

New

Royal Dutch

components.

Offered at $29

Its

recently merged
Division which pro¬

duces

magnetic tape equipment,
is located in Chicago, Illinois.
Upon completion of the current

held

headed

jointly by

April 11, Gilbert W. Chapman, President, stated that the
company plans some long-term financing.
Underwriter
—Morgan Stanley & Co.. New York.

($26.32)

the offer¬

Government

the

and

company's

made

available

Loeb, Rhoades &

Co.;

ninklijke
pij

Luchtvaart

V.)

common

Maatschapstock,

par

now

treasury
the

for sale on the Amster¬
Stock Exchange through the

This will be the first time since

the

war

that

has

offered

stock for

are

»
t

agency of a group of Netherlands
Smith, Barney & Co. and The First
banking institutions, headed joint¬
Boston Corp., yesterday (May 1)
ly by the firms of Heldring &
financing, the company will have offered publicly
250,000 shares of Pierson, Pierson & Co., and The
outstanding 947,555 shares of com¬ KLM
Royal Dutch Airlines (Ko- Netherlands Trading Society.
.*
mon stock.

Participating in the offering

July 9.

Manufacturing Co.

company

dam

syndicate

York, N. Y.,

Yale & Towne

Dutch guilders

Dutch

the

will

was

price of $29 per share.

Pierce, Fenner & Beane,
Co.(jointly).

Corp., Merrill Lynch,

Simultaneously with

mechanical

KLM

Robert W. Baird & Co. and William Blair &

value 100
at

and

ing by the United States underwriter s, an additional
150,630
common shares
repurchased from

Airlines Common Stock

stock

Dillon, Union

nometers and magnetic structures,
amplifiers and automatic control

—Carl

common

Fenner & Beane, Salomon Bros. & Hutzler and Eastman

elec¬

equipment: primarily, recording
oscillographs, recording galva¬

Magnecord

and the authorized

For preferred stock, to be determined by competi¬

(1)

Fenner

tivelv scheduled to be received

the

manufacture

announced stockholders will vote May 28

from

(10/1)

Kidder, Peabody & Co. and Merrill Lynch,
& Beane
(jointly); Eastman Dillon,
Union Securities & Co. and Smith, Barney & Co. (joint¬
ly); Lehman Brothers; Blyth & Co., Inc. Bids—Tenta-

Pierce,

Instruments,

was

increasing the authorized preferred to 300,000 shares

able bidders:

located in Tulsa, Okla., is engaged

principally

construction.. Underwriter—To

^-Wisconsin Public Service Co.

Utah Power & Light Co. (10/1)
March 12 it was also announced company plans to offer
to the public 400,000 shares of common stock.
Under¬
writer—To be determined by competitive bidding. Prob¬

February,
be raised in 1957, in¬
cluding 1,200,000 shares of $25 par preferred stock early
in June.
Underwriters—(1) For any bonds, to be de¬
termined by competitive
bidding. Probable bidders may
include: Halsey, Stuart & Co.
Inc.; Blyth & Co. Inc.;
A

new

from

scheduled to be received

the company's present in¬

tention is to issue additional bonds and
probably a pre¬
ferred stock.
He added that the
company will require
more than $180,000,000 of new
money in 1957 and 1958,
in audition to the
$37,500,000 bond issue of
1957.

securities, probably about $20,000,000
Proceeds — To repay

—

Co.

Quinton, President, announced

> f

(7/30)

by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Eastman Dillon, Union Secu¬
rities & Co.; Kidder, Peabody & Co. and. White; Weld
& Co, ..(jointly); Lehman^Brothers; The First Boston
Corp.; W. C. Langley & Co.; Harriman Ripley & Co. Inc.
Bids—Tentatively scheduled for July 30. ;
:

was announced company plans to issue and
$15,000,000 of first mortgage bonds due 1987.
Proceeds
To repay bank loans and for construction
program.
Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; The First Boston Corp. and Blyth & Co., Inc.
(jointly); Salomon Bros. & Hutzler; Eastman Dillon,
Union Securities & Co. and Smith, Barney & Co. (joint¬
ly); Lehman Brothers and Bear, Stearns & Co. (jointly);
White, Weld & Co. and Stone & Webster Securities Corp.
(jointly); Kidder, Peabody & Co. Bids — Tentatively

Bids—Expected

•

Corp. (jointly).

be determined

sell about

latter part of May.

March

announced company plans to issue some

senior

bank loans and for

None.

mined by competitive bidding. Probable bidders:
Halsey,
Stuart & Co. Inc.; Morgan
Stanley & Co.

Registration—Planned

.;•

of first mortgage bonds due 1987..

Hutzler, New York.

Airlines, Inc.

Utah Power &

18.

$6,615,000 equipment trust certificates. Prob¬
Halsey, Stuart & Co. Inc.; Salomon Bros.

was

additional

March 12 it

June

the

bidders:

West Penn Power Co.

was announced early registration is expected
3,337,036 shares of common stock which are to be
offered for subscription by common stockholders on a
share-for-share basis. Hughes Tool Co., owner of 74.2%
of the TWA outstanding common stock will purchase
any securities not subscribed for by minority stock¬
holders. Proceeds—To pay in part the conditional sales
contract covering 33 Lockheed aircraft. Underwriter—

Telephone & Telegraph Co. (6/18)!

received by

Underwriter—To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;

Feb. 25 directors authorized the issue and sale of
$70,000,000 of 29-year debentures due June 1, 1986. Proceeds
'—For construction program. Underwriter—To be deter¬

received

May 28 for the purchase

Eastman

Inc.;

gram.

from

April 25 it

Salomon Bros. & Hutzler.

'■

Washington Water Power Co.
April 1, K. M. Robinson, President, stated that the com¬
pany will probably market an issue of first mortgage
bonds by June 30 (sale of up to $30,000,000 bonds is
planned). Proceeds—To carry out 1957 expansion pro¬

Adviser—Salomon Bros. &

Bids will be received by the
company on May 7 for the
purchase from it of $4,650,000 equipment trust certficates.
Probable bidders: Halsey Stuart &
Co.

Southern Bell

(EDT)

Hutzler.

(5/28)

tentatively scheduled

are

from it of

public financing of about $4,000,000 convertible deben¬
tures through Ira Haupt & Co., New York.
Financial

ir San Diego Gas & Electric Co.
April 23, E. D. Sherwin, President, announced that com¬
pany will probably raise about $7,500,000 late this fall

•

;•

company up to noon

vote on increasing the
2,500,000 to 6,000,000

will

stock

Co.; Stone & Webster Securities Corp.; White,

Co. and The First Boston

•

& Co.

Wabash RR.

improvements and expansion,

.7*7

late this

Dillon, Union Securities & Co.; and Lehman
Brothers (jointly); Blyth & Co., Inc.; Smith, Barney &
Co., and White, Weld & Co. (jointly); W. C. Langley &

March

certificates, due semi-annually, from July 1, 1957,
to Jan.
1, 1972, inclusive.
Probable bidders:
Halsey,
Stuart & Co. Inc.; Salomon Bros. & Hutzler.

RR.

Weld

Bearing Co.

common

TMT Trailer

trust

through the sale of preferred stock.
Co., Inc., San Francisco, Calif.

rities

announced that it plans to raise ad¬

May

Co<\7"7

announced company; in addition to pro¬

was

York.

(5/23)
•
Bids are expected to be received by this
company on
May 23 for the purchase from it of $2,550,000 equipment

Air Line

7777"i:l7\. 7''' 7..-'

shares, one new share to be issued for each outstanding
share. Underwriter—May be Hornblower & Weeks, New

Reading Co.

Seaboard

Roller

company

—

(5/27-29)

Bids

ditional funds for capital

Spring $22,000,000 through the
sale of additional common stock, plans also to sell in
the Fall $20,000,000 of debt securities. Probable bidders
for bonds may include: Halsey, Stuart & Co. Inc.; Kuhn,
Loeb & Co. and American Securities Corp.. (jointly);
Salomon Bros. & Hutzler; Eastman Dillon, Union Secu¬

during 1957. Price—Of preferred, $102 per share. Pro^
ceeds—For working capital and general corporate pur¬
poses. Underwriters—Emch & Co. and The Marshall Co.,
both of Milwaukee, Wis.

acquire a
Tulsa, Okla. Underwriters
—Hulme, Applegate & Humphrey, Inc.; The Milwaukee
Co.; The Ohio Company; and Stroud & Co., Inc. Offer¬
ing—Expected in May.
Office

June

posal to raise

10,000 additional shares of 5% preferred stock
sell generally some additional common stock

locally

Halsey, Stuart & Co. Inc.; The First
Bids—To be received on June 25.

Reading & Bates Offshore Drilling Co.
April 118 it was announced company plans to do about
$2,000,000 additional financing, which will include an
issue of debentures not to exceed
$1,700,000 and 500,000
shares of common stock.
[Early registration of deben¬
tures (with stock purchase warrants) and about
170,000
common

March 8 it

stock in
Dealer-

reported company plans to issue and sell

was

Corp.; Merrill Lynch,
Bias—Tentatively expected to
;

Virginia Electric & Power

(jointly).

Halsey, Stuart & Co. Inc.

'>7.7 "r7

(6/4)

$22,000,000 for new construction. Underwriters—
by competitive bidding. Probable bid¬

received

Thorp Finance Corp.

bidders:

third offshore unit.

and

Jan. 30 it

—

Boston Corp.

Co.

Utilities

stockholders of

common

was

Pierce, Fenner & Beane„

it was

Stone & Webster Securities

ders:

reported company plans to issue and
sell $50,000,000 of first mortgage pipeline bonds due
1977.
Proceeds—For expansion program. Underwriters
—Stone & Webster Securities
Corp., White, Weld &
April

and

To be determined

Manager—Goldman, Sachs & Co., New York.

—

parent)

latter

About

reported company plans to issue and

was

sell about 217,000 additional shares of common
1957 (probably first to common stockholders).

April 15 it

ceeds

18 it

its

reported company plans to issue and sell
1,000,000 shares of common stock (par $8). Proceeds—

Lynch, Pierce, Fenner & Beane. Bids—Expected to
some time in July.
;;v..V-

March

sell

stockholders (other than Eastern

common

Feb. 15 it

& Tampa Electric Co.

paragraph.

Virginia Electric & Power Co.

be received

(6/18)

in this

$18,000,000 of first mortgage bonds. Proceeds
repay bank loans and for new construction.
Un¬
derwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Goldman,
Sachs & Co.; Stone & Webster Securities Corp.; Kuhn,
Loeb & Co. and A. C. Allyn & Co. Inc. (jointly); Mer¬

underwritten

mentioned

the $2,500,000 of common- stock of Valley
Co., it is to receive as part payment of certain
Dealer-Manager—May be Kinder,
Peabody & Co., New York.
,
^

—To

—

subsidiary of

Blackstone properties.

sell about

Principal Retail Plazas of Canada, Ltd. (Canada)
28 it was reported that early registration is ex¬
pected of an issue of $15,000,000 of subordinated deben¬
tures due 1932 and 1,500,000 shares common stock to
be sold in units of $50 of debentures and five shares of
stock.
Proceeds—For expansion! and working capital.!
Business
Operates shopping centers. Underwriter —
Eastman Dillon, Union Securities & Co., New York, for

company,

Electric

also announced Blackstone plans to offer

was

Associates

;

Tampa Electric Co.

Feb.

Gas

March

announced

was

Valley

securities

new

to be received on June 26.

com¬

stock

mon

plans to issue and

company

Halsey, Stuart & Co. Inc.; Blyth &
Co., Inc. and Merrill Lynch, Pierce, Fenner & Beane
(jointly); White, Weld & Co. and Eastman Dillon, Union
Securities & Co. (jointly). Bids—Tentatively expected

stockholders

mon

(6/26)

Gas Co.

announced

was

bidders:

Probable

(6/10)

company

Co., plans to issue,
within one year, $4,000,000 of bonds, $1,100,000 of notes
and $900,000 of preferred stock to its parent in ex¬
change for $6,000,000 of notes to be issued in exchange
for certain assets of Blackstone.
The latter, in turn,
proposes to dispose by negotiated sale the first three

sell about $35,000,000 of first mortgage bonds. Proceeds
—To repay bank loans and for new construction.
Un¬
derwriter—To be determined by competitive bidding.

For construction pro¬

—

California

Southern

common

Blackstone

Feb. 14 it was announced company

600,000 shares of

Thursday, May 2, 1957

Valley Gas Co.

Co. (jointly);

Kuhn, Loeb & Co. (2) For preferred stock: May be The
First Boston Corp. and Dean Witter & Co. (jointly).

„

...

European company

is
a

capital

its

public sale in the United

The sale of the

States.

new

being made primarily to create
broad public
market for the

company's

stock

here

and

Europe.
Proceeds from the sale will be¬
come

general

period
capital

part

funds.

company's

the

In the five-year-

1952-56, KLM made gross

expenditures

approxi¬

mately $88,000,000, of which $75,000,000 represented investment in

flight

equipment and

investment Jn: .ground

$13,000,000
facilities.

Volume

Number

185

Continued

from

5634

The Commercial and Financial Chronicle

in the United

page

(2089)

week

and

States.

21,954

Last week's

This compared

'.'■++

year ago;

output

car

rose

with 23,366 in the previous
*

British Columbia

above that of the previous week

Guaranteed Debens.

by 2,670 cars, while truck output increased by 2,371 vehicles dur¬
ing the week. In the corresponding week last year 127,189 cars
and 21,954 trucks were assembled.
•„
'
1

rolling

schedules on a * more efficient basis.
Maintenance and
are coming in for more attention, it notes.
I
i.
; Some mills, too, apparently are building inventories of ingots
and semi-finished steel.
This strategy t would put them into a
position to make a quick turnabout should market demand pick
i-up suddenly. But it would ^also mean that the operating rates
repair also

and

products, however, the
steel outlook for the year is considered good." There has been no
let-up in demand for heavy plates, structurals and pipe for the oil
and gas industries.
•++-av+. '
V;

Commercial

•

industrial failures fell

and

263

the

week

or more declined to 228
but exceeded the 207 of this size recorded

week ago,

Sharply

Lower Trend in Latest Week

are

reported by nine

compared with a year ago,;
manufacturers listed in the weekly

of 30

magazine and by seven of 18 steelmakers. The
pason, it adds,
are rising costs and special
problems.
:
The profit situation is extremely bright in the aircraft and
electrical

industries

which

have

substantial

increases

the

over

last year.

On the minus side of the ledger, aluminum and copper
generally showed first quarter declines, this trade weekly noted.
The
earnings outlook for the other three quarters looks

bright, although the profit
The
■

shapes, at the warehouse level; cold-finished bars, at the

mills; drawn wire at warehouses and mills;, hot-rolled sheets,
at warehouses; cold-rolled sheets and hot-rolled
strip, at ware¬
houses and

mills

and

cold-rolled

strip at warehouse.
easing is seen at mills and warehouses
are heavy plates, structural
shapes, tubular goods (including line
pipe and oil country goods) and stainless steel. Buyers foresee an
Products in which

easing in tin plate at the mills.

upturn in demand

comes

in the third

quarter, it likely will be near the end of the period,
is, in September. By that time, the needs for 1958 model

that
'

automobiles should begin to be
felt, this trade magazine observed.v
The long awaited spring tidal wave of car sales has turned
out to be a small ripple, the
metalworking publication said. To¬

day's most optimistic forecasts peg sales at 6,100,000 and output
slightly higher, in contrast to earlier predictions of about 6,500,000
•*

c-3

The

ished

•

;•

publication's arithmetical base

steel

remained- at

$139.71

net

••

price composite of fin¬
tori for the week

April 24.
gross

Its price composite on steelmaking scrap
ton, dropped 17 cents from the previous week.

The

American

Iron

and

Steel

tons

ingot and

steel

Institute

$42.50

for

castings,

The

industry's ingot

production

rate

for

that

compared

week

the

with

ago.

weeks

higher
are

tons.

year

placed at 2,373,000 tons
The

the

Dun

operating
than

based

rate

capacity
an

annual

ago

the actual weekly production

comparable because capacity is
percentage figures for 1956

The

capacity of 128,363,090 tons

of Jan. 1,

Electric Output Held to Downward Trend the Past Week
The amount of electric energy distributed by the electric light

Wholesale

industry for the week ended Saturday, April 27, 1957,
at
11,310,000,000 kwh., according to the Edison

Electric

Institute.

This

represented

further decline

below

the

Past Week

Car

Loadings Advanced 1.9% Above Prior Week But
Were 10% Lower Than Like 1956 Period

Loadings of revenue
1957, advanced by 12,986

freight for the week ended April 20,
1.9% above the preceding week,
the Association of American Railroads reports.
Loadings for the week ended April 20, 1957, totaled 686,950
cars, a decline of 76,487 cars, or 10% under the corresponding
1956 week, and a decrease of 14,482 cars, or 2.1% below the cor¬
responding week in 1955.
cars or

level

Automotive

Automotive output for the latest week

according to "Ward's Automotive Reports," displayed
above the level of the preceding week.

Last

week

the

industry assembled

estimated 120,997 cars,

compared with 118,327 (revised) in the previous week. The past
production total of cars and trucks amounted to 146,734

week's

units, or a gain of 5.041 units above that of the preceding week's
output, states "Ward's."
'
.

Last week the agency

reported there were 25,737 trucks made

will

issues

Province

...

British

was
was

cocoa

help

growers

raise

Santos 4s

the

coffee

market

and

province

mixed.

were

The

buying

narrow range

and

the

similar

trade in

ended

Regional esti¬

comparable 1956 levels by the following

New England and East North Central +9 to
13;
Middle Atlantic +10 to
+14; West North Central and Pacific
Coast +7 to +11; South Atlantic, East South Central and Moun¬
tain +4 to +8; West South Central +6 to +10%.
Department store sales on a country-wide basis as taken
from the Federal Reserve Board's index for the week ended
April 20, 1957, advanced 13% from the like period last year. In
the preceding week, April 13, 1957, an increase of 7% (revised)
was reported.
For the four weeks ended April 20, 1957, an in¬
crease of 5% was recorded.
For the period Jan. 1, 1957 to April

the

year

in New York

post-Easter lull, dipped 6 to

ago,

of 1956.

City last week, in keeping

8% below the like period

trade observers report.

last

The

proceeds

used

which

gram

two

sale

with

provides
three

over

the

for the

years

pacity, which would nearly double
the commission's present capacity.
The commission, which proposes
>

,to spend about $38,000,000 for

cap¬
ital expenditures in the fiscal year

ending
power

cept

March 31, 1958, supplies
to most of the province ex¬

the

densely populated
including the cities of

Vancouver and Victoria.

will
of

use

Great

Eastern

Railway

the proceeds from the sale

its

debentures for payment of
short-term indebtedness incurred
for

capital expenditure purposes.
railway is now engaged in
another major construction pro¬
gram, the Peace River Extension.
The

This line will extend the northern
end

of the railway
George 194 miles to

from
a

will

run

and
the

Prince

junction at

Little Prairie from which

one

line

65 miles to Dawson Creek

another

line

approximately

distance to Fort St. John.

same

It is expected that the extension,
when completed in

1958, will

ma¬

terially increase the railway's vol¬
of traffic and will be

George.

major

the development of the

extensive

4% above that of the cor¬

the

connection

addition of approximately 194,650
kw of additional generating ca¬

1957 rose 11% above that of the like period of last year.
preceding week, April 13, 1957, an increase of 11% (re¬
vised) was reported. For the four weeks ending April 20, 1957 a
gain of 5% was registered. For the period of Jan. 1, 1957 to April
the

the commission's construction pro¬

factor in

20,

from

the Power Commission debentures

ume

According to the Federal Reserve Board's index, department
in New York City for the weekly period ended April

20, 1957 the index recorded a rise of
responding period in 1956.

the

net direct Provincial debt by 1962.

store sales

The

Pacific

the period

percentages:

Retail sales volume

both

31,
provincial government
is carrying out its announced ob¬
jective of full repayment of all

Wednesday of last week was 8 to 12% higher than a year ago,
varied from

third

Canada

population.

according to estimates by Dun & Bradstreet, Inc.
mates

population; and is the
rapidly growing of the prov¬

1957.

Sharp Rise In Consumer

volume of retail

maturity.
the

fiscal years

will

Spending In the Latest Week
dollar

and

sections,

The total

in the fiscal year ended March

indications

against 1,338,000 bales in the

the ;fis,ca+;year > ended Marclv 31,
'*1953, to an estimated $63,000,000

exports last week were estimated by the New York Cotton

Trade Volume Reflected

Each

the Province has
reported a surplus of revenues
over expenditures for current ac¬
count ranging from $14,000,000 in

of the Brazilian

their prices

entirety
Columbia

inces ~in

futures prices last week.

Exchange Service Bureau at 194,000 bales, compared with 105,0Q0
bales in the prior week and 97,000 bales in the corresponding
week last year. For the current season through April 15 exports
as

offered.

Prices of cotton futures moved within

bales

its

area

six

Thursday were slightly higher than those of the preceding week.

5,933,000
1956 period.

most

expanded somewhat following reports that the Brazilian

totaled

were

issues being offered has

supply is dwindling and prices continued at the levels of the
previous week. In contrast, prices on Milds slipped, as demand

Cotton

the

largest

from Russia will increase.

was

British

Activity in family flour markets also slack¬

noticeable rise in

payable

in June,
1956, when
sinking fund debentures of three instrumentalities of

sue

last year. '

stimulated by the reported move

Government

Trends

Columbia.
are

specific sinking fund which is de¬
signed to retire the particular is¬

ened.

Trade

uncondi¬

$40,000,000
--

needs, trading of bakery flours was sluggish a week ago. Increased
improved weather conditions in the winter wheat belt

There

ap-

The most recent previous public

the Province

Except for some scattered small lot inquiries for immediate

discouraged buying.

96V2%

sale of obligations of the Province
of British Columbia in the United

States

;

294.86.

was

week earlier and 67,000,000

modest

progess

priced

tionally guaranteed as to payment
of principal and interest by the

64,658,000 bushels in the preceding week. This compared with
151,611,000 bushels in the comparable week a year ago. On the
Chicago BoaM'of *Tr&cl&** average daily purchases of grains and
soybeans were estimated at 35,000,000 bushels a$ against 40,000,000

with

ended April 26, 1957,

.Both

Reports of favorable growing conditions somewhat discour¬
aged grain trading the past week and prices weakened slightly.
Although transactions in cash wheat were sluggish, prices were
steady. Wheat futures prices slipped below those of the prior
week. Local wheat supplies were moderately reduced, but stocks
of red winter wheat in store in Chicago were expected to be
shipped out last week. Despite an increased call for corn, prices dipped moderately.
There were slight price declines in oats, barley and soybeans. Jn
Chicago purchases of soybeans dropped to 49,376,000 bushels from

Output Showed Modest Gains In

Latest Week Above That of Prior Period

1982,

accrued interest to yield

prOvimately 4.61% to maturity.

20, 1957, an increase of 2% was registered above that

and

" ;

gains

in some basic commodities lifted the general
commodity price level slightly above that of the preceding week.
The index stood at 286.98 on April 22, compared with 286.64 a
week ago, the 1957 low. On the corresponding date last year the

the

preceding week.
The past week's output dropped 175,000,000 kwh. under that
of the previous week; it increased 443,000,000 kwh. or 4.1% above
the comparable 1956 week and 1,611,000,000 kwh. over the week
ended April 30, 1955.

April1 15,
"

Commodity Price Index Rose Slightly

estimated

was

$20,000,000 Pacific Great EastRailway Company 4%% sinking fund debentures, series C, due
ern

in New York in U. S. dollars.

weakened.

1956.

and power

Principal and interest

that demand

96.4%.

not

1956.

Bradstreet

;

duction 2,319,000
was

drop

on the corresponding date last year, the year-to-year gain,
being narrowed to 1.2%.
Higher in wholesale cost last week were wheat, bellies, but— ;
ter, coffee and cocoa. On the down side were flour, corn, rye,
oats, barley, lard, cottonseed oil, tea, eggs, hogs and lambs.
The index represents the sum total of the price per pound of
31 raw foodstuffs and meats in general use and its chief function
is to show the general trend of food prices at the wholesale level.

1957

annual capacity of 133,459,150 tons as of Jan. 1, 1957.
For the like week a month ago the rate was 90.6% and pro¬

sharp

stocks and

announced

88.7% of capacity, and 2,269,000 tons (revised)
is based

rather

April 15, 1987, priced at 98% and
I.~, accrued: interest to yield approximately 4.50% to maturity;

$6.04

ended

operating rate of steel companies, having 96.1% of the steelmak¬
ing capacity for the entire industry will be an average of 89.0%
of capacity for the week beginning April 29, 1957, equivalent to
2,278,000

was

Price

said

steel buyers are looking for the third
bring about heavier demand for hot-rolled bars and

quarter to

light

publication

There

wholesale food price index the past week. The index for April 23
C
fell to $6.11, from the previous level of $6.19. It compared with,

will get rougher going into

squeeze

next year.

ag¬

...

Wholesale Food Price Index Reacts to

profits,

Columbia

There was a slight dip among small failures with liabil- "
/Incr., and Burns Bros. & Denton,
ities under $5,000, to 35 from 38 in the previous week. They con¬
Inc. The issues are: 1
;
< ■
+
tinued above the 29 occurring in the.similar week of 1956. Twenty-; ;
•+ ,$25,000,000
British
Columbia
three businesses failed with liabilities in excess of $100,000 as
Power Commission 4%% sinking
against 30 in the preceding week. /.
-fund
debentures, series L, due

■

Smaller first quarter net

British

last year.

First quarter earnings of most metalworking companies are
higher than they were a year ago and profits may reach an alltime high in 1957 if producers can keep
earnings in step with
sales, "Steel" magazine stated on Monday last.
j
/
/,

Bond issues of two instrumen-

„

talities

■

$20,000,000 Pacific
Ry. Debentures.

Eastern

gregating $45,000,000 are being of¬
fered for public sale by a nation¬
wide group of 76 investment firms
headed jointly by Morgan Stanley
+& Co.; Harris & Partners Limited,

Casualties with liabilities of $5,000

from 264

Fractionally Higher
89.0% of Ingot Capacity This Week
;

Trend to

Show

and

Great

■

Bradstreet, Inc.

Construction,. shipbuilding,

Steel Output Expected to

British Columbia Power Commis¬

preceding week, according to Dun
Despite this; decrease, the toll remained above
the 236 last year and the 212 in 1955. Failures were 12% below
those of the comparable week of pre-war 1939 when 326 occurred.

some

and

Financing Includes $25,000,000

11,045 cars

ended April 25 from 302 in the

freight cars, capital equipment
petroleum will be: the mainstays of the market until aucomo-;
live production catches its expected second wind in third and *
fourth quarters; Appliances also are showing signs of strength
and the emphasis on inventory reduction should diminish toward
end of the year, concludes "The Iron Age."
•
•
•
•
V

cars

sion

where they want them.

Despite the current easiness in

1956 week,

Offered to Investors

1,846

Business Failures Decline Further the Past Week

likely to drop sharply when inventories get to
/■
- .^
'

are

1,514 trucks, and for the comparable
2,948 .trucks.
'' '++

and

of these mills

Canadian output last week was placed at 9,900 cars and
In the previous week Dominion
plants built 8,151

trucks.

...

area

north' of

Prince

The cost of this construc¬

tion is estimated at about $49,000,-

000, of which $21,535,000 had been

expended to Dec. 31, 1956.

The Commercial and Financial Chronicle

(2090)

The

Indications of Current

week

Business Activity
Latest

Indicated

STEEL

AND

IRON

AMERICAN

May

oil

§2,278,000

2,373,000

2,319,000

*2,269,000

117,690,000

Apr. 19

output

output
fuel oil

output

Residual fuel oil output (bbls.)

;

7,819,000
7,976,000

26,322,000

25,060,000

24,599,000

2,156,000

2,134,000

2,265,000

2,044,000

11,942,000

12,451,000

12,855,000

11,982,000

8,345,000

7,828,000

8,385,000

Steel

201,945,000
19,779,000

19,823,000

19,978,000

72,801,000

74,156,000

77,603,000

61,926,000

Residual fuel oil

Apr. 19

36,943,000

36,758,000

36,886,000

32,829,000

(bbls.) at

202,904,000

205,521,000

CONSTRUCTION

G86.950

673,964

613,805

612,180

685,833

763,437

646,840

Refined

$394,532,000

$358,987,000

227,801,000

133,498,000

347,686,000

Apr. 25

180,907,000

166,731,000

225,489,000

140,284,000

141,245,000

163,676,000

26,447,000

84,244,000

anthracite

14,620,000

10,200,000
v

Apr. 20

9,900,000

10,340,000
407,000

122

128

Apr. 27

AND

INDUSTRIAL)

—

DUN

BRADSTREET, INC

Finisned

steel

11,485,000

METAL PRICES

(E.

Export

(New York)

(St.

263

302

290

(delivered) at_.
(East St. Louis) at
Aluminum (primary pig. 99% ) at
JZinc

Zinc

(New York)

tin

and

18,526,000

/19,137,000

321.406,000

312,004.000

21,315,000

13,842,000

5,104,831

4,861,219

5.670c

253,108,000

INC.

transported

355

.'1

—x——:

MINES)—Month

4,745,394

—_

(net

6,211,653

6,857,640

6,482.738 *

—y

5,967,098

6,604,384

6,234.670

244,555

253 256

248,068

2,013,208

2,096,373

1,634,689

tons)

(net tons)—xxx_x—__X
of

end

month

tons)

(net

$64.56

$60.29

Crude

(tons

March:

Month

$42.17

$45.83

$55.50

31.550c

31.525c

31.500c

46.075c

29.500c

29.725c

28.900c

16.000c

15.800c

24
24
24
24
24
24

15.800c
14.000c

25.000c

15.800c

13.500c

100.000c

•

fabricators—

100.000c

99.500c

98.500c

89.50

91.33

93.20

96.69

2,000 pounds)
stocks at end of period

> i

Adjusted

March:

seasonal

Without

INSTITUTE

_i__—

■;i*:

STEEL

Public

Utilities

Industrials
MOODY'S
U.

96.54

104.83

Contracts

101.47

107.44

Shipments (tonnage)—estimated

99.36 *

99.36

106.92

96.54

96.69

104.83

Apr. 30

89.09

89.51

89.92

100.65

94.56

95.16

95.32

103.64

96.69

96.85

97.00

97.31

97.47

97.94

Apr. 30
-Apr. jo

Group

Group
DAILY AVERAGES:

YIELD

BOND

Apr. 30

corporate

3.37

3.38

3.99

3.97

-X

3.71

3.69

3.66

3.31

3.81

3.79

3.34

3.97

3.96

3.46

APr. 30

4.48

4.45

4.42

3.71

Railroad~G_roup
Public

Utilities

4.10

4.06

4.05

3.53

3.96

3.95

3.94

3.45

j-Industrials

*pr. 30
Apr. 30
Apr. 30
Apr. 30

Group

COMMODITY INDEX

MOODY'S

AVERAGE

241,807

Silver,

288,866

281,098

Sterling

403,901

463,194

408,010

557,227

110.61

Apr. 26

110.97

110.72

109.06

Apr.

1,249,660

1,119,610

1,138,740

1,881,630

219,350

169,320

212,910

403,300

sales

Apr.

Total sales
Other

transactions Initiated

Total

1,863,350

283,670

199,310

237;000

31,300

14,400

29,900

39,990

Apr.

283,310

223,350

301,400

409,510

Apr.

314,610

237,750

331,300

449,500

the floor—

Apr.

purchases

559,720

383,380

496,296

93,720

128,840

104,330

Apr.

567,932

501,480

492,390

806,002

Apr.

730,402

630,320

596,720

899,722

Apr.

2,093,050

1,702,300

1,872,036

2,921,828

Apr.

413,120

312,560

347,140

537,010

Apr.

1,829,132

1,653,810

1,780,610

2,675,562

Apr.

sales

2,242,252

1,966,370

2,127,750

3,212,572

Total round-lot transactions for account of members—

Total

purchases

Short

Other

sales

Total sales

LOT

DEALERS

AND

SPECIALISTS

331.497

297,629

262,177:;.

235,380 ;

32.576c

46.728c

30.553c

48.532c?

£245,556

£239,548/

Not Avail..

£239,137

..£244,100

Not Avail.J

16.000c

(per

15.800c

£113,150

£121,125

£112.345

ton)

£112.344

£118.696

refined
(per

SCadmium

(per

£96.613

—

*'•"

78.982d'

S2.80494

100.506c

100.616c

'$35,000

$35,000
$255,000

36.590c

33.000c

33.500c

$93,000

$258,778-

••

36.470c

33.000c

33.500c

33,000c-

33.500c

$98,000

$103,000'

$1.70000

S1.70C00

$1.70000

$2.00000

$2.60000

27.100c

24.621c

25.000c

Net Avail.

35.250c

_•

$1.70000

SI.70000

$1.70000

—_

—

.—

$1.70000'

SI.70000

pound)——.—

primary pig
—
pound)____—.——

grade
(per

35.250c

32.500c

74.000c

64.500c

$2.25

$30,575,000

$30,614,000

$30,163,000

...—

—...

$2.25

74.000c

pound)

(per

79.888d

$2.79806

$35,000

•

Eismuth

•"

79.744d

$255,000

bulk

(per

ingot

•♦Nickel

circulation—treasury dept.

Feb.

omitted)——

(000's

—

association,
February:
"
.♦

manufacturers

inc.—Month

(Number of)—

Passenger Tires
Production

Tires

Bus

6,396,214

8,047,177

8,296,362

17,37Eg929

15,977,616

17,T01,211".

•1,064.571

1.076.597-

——,

—,

and"

♦7,809.691

7.538,015

Shipments

Truck

91.143c

grade ingot weighted aver-.

99%

Magnesium

£93.696

91.375C

£101.560-

99.577c

pound)

(per

Aluminum,

rubber

£29.444
£96.850

$2.79305

—.—

....

grade

97%

13.500c,
14.000c

£94.789

price)—

pound)..
pound)

Aluminum,,39%

money

13.500c
14.000c

91.375C

ounce)———

pound),

(per

(Cadmium,

age

13.500c
14.000c

ounce)—.—

(check).:
U.

ounce,

(Cadmium

Cobalt,

16.000c

15.800c

Quicksilver (per flask of 76 pounds)—:
flAntimony, New York boxed
:X

29.555c

7,571,033

(Number of)—

STOCK

£113,104

Inventory

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODD-

'16.000c

(per pound)

York Straits.

New

Gold

633,258

162,470
Other

Total sales

Tin,

406,940

sales

transactions initiated off

Total

1,460,050

-—Apr.

Total sales

Other

986,820

1,199,730

the floor—

sales

Other

928,980

1,098,300

Apr.

purchases

Short

977,890
1,197,240

6
6

31.452c

Laredo
Antimony (per pound), boxed Laredo..
Platinum, refined (per ounce)J.

Apr.
Apr.

-Pi-

278,453

pound)___—!

(per

Exchange

Antimony

FOR

sales

Other

Ydrk

London

257,167

100

iaii.

Sterling Exchange—

New

purchases

Short

and

284,442

Apr. 20

122

.»

/-..v,

(per pound)—East St, Louis

Zinc

259,607

INDEX—

HZinc, Prime Western, delivered (per pound)
ttZinc, London, prompt (per long ton)—___
ttZinc. London, three months (per long ton)

ACCOUNT OF MEM¬
BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which registered—
Total

East St. Louis

282,574

at end of period

TRANSACTIONS

ROUND-LOT

Common,

229,036

activity

Unfilled orders (tons)

■(

265,894

————
.

((Prompt, London (per long ton).
ttThree months, London (per long

Apr. 20
Apr. 20

OIL, PAINT AND DRUG REPORTER PRICE
1949

3.40

421.7

New

—Apr. 20

(tons)
of

3.88
410.6

York

Common,

Silver,

Orders received (tons)

Percentage

3.91

407.3

*124
•'*97

107

March:

Silver

ASSOCIATION:

NATIONAL PAPERBOARD
Production

3.92

405.6

129

J. QUOTATIONS)—

•

Lead—

"III Apr.

(E.

3.46

3.96

Apr

3.03

105.00

Copper—"* \
Domestic refinery (per pound)——X
Export refinery (per pound)—_k.——:
f1 London, prompt (per long ton)——
t(Three months, London (per long ton)——

105.86

3.23

.Apr. 30

Government Bonds

Average

'v" 1

(tonnage)—estimated..!—_x>

closed

PRICES

(AMERI¬

CONSTRUE-f

100.93

METAL

53,263

RE¬

of February:

TION)—Month

99.04

Group

139,453;

•

-y">:

STEEL

..,.*136,502

Average^] 00-

Apr. 30

Railroad

143,558

101,565

140,191

adjustment——

STRUCTURAL

FABRICATED

113,571

seasonal Variations—.

for

96.23

Z—III

Baa

115,055

(tons

SALES—FEDERAL

STORE

100.65

Apr. 30
———

♦134,291

;

—-—Apr. 30
Apr. 30

corporate
—

*101,449

SYSTEM—1947-49

SERVE
Month

13.500c

24.000c

■

;

—

(tons of

copper

CAN
89.65

■

105,987
143,961

pounds)_x.

14.000c
"

25.000c

of 2,000

(tons

DEPARTMENT

16:000c

14.000c

13.500c

;

of 2,000 pounds)

46.375c

15.800c

14.000c
-13.500c

•:

pounds);

Aaa

Refined
Deliveries

$42.17

of 2,000

•

Average

Feb.:

■'

Apr. 30

S. Government Bonds

51,409,000

l.:-

ASSOCIATIONS,

INSTITUTE—For

COPPER

5.179c

AVERAGES:

BOND PRICES DAILY

MOODY'S

67.ooo

;

export

'XX.,—x—

(barrels)

freight

coke stock

Oven

236

5.670c

Apr.
Apr.
—Apr.
.-Apr.
—Apr.
Apr.

Louis)

domestic

24,944.000

19,24?,000*

(barrels)——X—'

27,071,000

Apr. 24
-Apr. 24

Lead

imports

29,000

24,941,000

(net tons).

coke

Refined

refinery

Lead

24,854,000

24,000

tons)

Beehive coke

J. QUOTATIONS):

223.160.000

25,781,000

Copper production in U. Sx A.—

Electrolytic copper—
Domestic refinery at

243,081,000

228,684,000

25,611,000

—

February:

(in

(BUREAU

Oven

10,867,000

11,604,000

Apr. 23
Apr. 23
Apr. 23

Pig iron (per gross ton)
Scrap steel (per gross ton)

Straits

11,310,000

Apr. 25

(per lb.)

254,494,000

231,880.000

(barrels)_x
(barrels)——

output

(barrels)

general

Production

113 kMrM 113

COMPOSITE PRICES:

IRON AGE

Month

COKE

ELECTRIC

(COMMERCIAL

553,000

-I

INSTITUTE:
Electric output (in 000 kwh.)

257,515.000

oil

9,785,000

498,000

482,000

SALES INDEX—FEDERAL RESERVE
SYSTEM—1947-40 AVERAGE — 100
Apr. 20

FAILURES

7,468,393

Month

—

/;/..-J:

TRUCKING

AMERICAN

DEPARTMENT STORE

EDISON

INSTITUTE

consumption

carriers

Apr. 20

(tons)

crude

products

Intercity

(U. S. BUREAU OF MINES):
coal and lignite (tons)

Pennsylvania

10,924,788

7,809,451

Decrease all stocks

COAL OUTPUT
Bituminous

*9,987,206

tons)—,

178,296,000

136,704,000

(net

/(barrelst'_Jxlx.—x

$525,982,000

258,720,000

Apr. 25

municipal

and

$439,627,000

44,203,000

State

19,816

production (barrels of 42 gal-

imports

Indicated

Apr. 25

construction

Public

140,394

102,789

10,591,000

for castings produced
of March.
ixx———

products

gasoline output
output (barrels

oil

Crude

674,968

■;

Apr. 25

construction

Private

147,029

of Jan.

INSTITUTE:

■

domestic

Ions each)

■

Benzol

ENGINEERING

—

construction

end

tons)

STEEL

February

Domestic

NEWS-RECORD:
U.

Natural

freight loaded (number of cars)
Apr. 20
freight received from connections (no. of cars)—Apr. 20

ENGINEERING

steel

January:

Total

ASSOCIATION OF AMERICAN RAILROADS:

Total

steel

and

tons)—Month

Month

17,867,000

Apr. 19

CIVIL

ingots

(net

Shipments

192,933,000

—Apr. 19
Apr. 19

Revenue

AND

AMERICAN PETROLEUM

Distillate fuel oil (bbls.) at

Revenue

148,391

145,131

7,066,732

(short

8,182,000

lines—

(bbls.) at

IRON

AMERICAN

7,436,000

26,370,000

Apr. 19

(bbls.)

Stocks at refineries, bulk terminals, in transit, in pipe
Finished and unfinished gasoline (bbls.) at
Kerosene

Ago

7,129,900

7,441,950
7,899,000

Apr. 19

(bbls.)

Distillate

7,550,850

Apr. 19

(bbls.)

Kerosene

■

Year

Month

MINES):

of primary aluminum in the U. S.
(in short tons)—Month of January

Stocks of aluminum

Gasoline

condensate

and

output—dally average (bbls. of
42 gallons each)
_,_Apr. 19
Crude runs to stills—daily average (bbls.)
Apr. 19

(BUREAU

ALUMINUM

96.4

90.6

of that date?'

are as

Month

*88.7

AMERICAN PETROLEUM INSTITUTE:
Crude

of quotations,

cases

Production

May

(net tons)

or,

either for the

are

Latest

"v/. vx//' ///, //v

Equivalent to—
Steel ingots and castings

that date,

Year

Wf"

§89.0

Month

production and other figures for the

cover

Dates shown in first column

month available.

month ended

Wpek

INSTITUTE:

operations (percent of capacity)

steel

following statistical tabulations

latest week

Thursday, May 2,1957

....

1.000,789

EXCHANGE
Odd-lot

sales

Number

—

SECURITIES

dealers

EXCHANGE

(customers'

COMMISSION:

purchases)—t
1,130,815

Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales

1,177,300

1,711,897

$44,658,718

$55,432,432

$90,602,135

946,835

Dollar value

964,343

$52,823,642

Apr

855,302

857,273

1,389,593

short

sales

Apr.

12.817

9,809

8,728

8,609

Customers'

other sales

Apr.

934,018

845,493

848,545

Shipments " ——

1,380,984

Apr.

$44,008,703

$38,786,084

$40,190,410

$70,967,466

Apr.

233,340

226,880

Dollar value
Round-lot sales by dealers—
Number of shares—Total sales

Other

sales

197,50011

342,490

Apr.

233,340

22(6,880

197,500

Apr.

417,490

343,330

501,530

THE N.

Short sales

2,920.554

3,364.259

2.968,804

5.788,703

6,546,703

35.417.000

25,314.000

(Camelback)—

Rubber

3,828.811

28.902,000

—

—_——

3.361,557

5,959,580

1,—---———

——

:—

37,518.000

27,330 000

28,977,000

28,900.000

$1,583,000

$1,537,300

*$1,361,500

1,004,000

1,118,500

*1,051.200

—

DEPT.

$275,108,008
7,673,283

$276,377,955

$276,403,742

3,849,243

7,071,786

$267,434,725

$272,528,712

$269,331,956

2.726%

2.7197c

(000's

453,720

481,960

661,650

9,599,560

8,408,770

9,486,490

14,101,860

10,194,070

8,862,490

9,968,450

113.

Apr

117.3

117.2

117.0

90.7

89.1

Apr

104.8

88.0

_~~I

exports

and

census—Month

omitted):

imports

of February

Exports

'——*

-—I

STATES

GROSS

GUARANTEED—(000's

Apr

86.6

84.7

77.

Apr. 23

125.4

125.3

»125.3

121.

Meats

foods

(pounds)

Imports*
UNITED

commodities

and

——

14,763,510

594,510

products
Processed foods

(pounds)

states

Bureau

100):

Farm

*104.6

104.1

March

General

DEBT

DIRECT

AND

omitted):

funds

balances

—

88.6

101.

Net

debt

Computed

•Revised figure.
Ulncludes 892,000 barrels of foreign crude runs.
SBased on new annual capacity of 133,459,150 tons as
of Jan. 1, 1957, as against Jan.
1, 1956 basis of 128,363,090 tons.
fNumber of orders not reported since introduction of
Monthly Investment Plan. tPrime Western Zinc sold on delivered basis at centers where freight from East St. Louis exceeds
one-half cent a pound.
—

annual

rate

2.533%

(Eased on the producers' quotation. tBased on the average of the
platers' quotations.
§Average of quotation on special shares to plater.
(Domestic five tons or more but less than carload lot bcxed.
!§Delivered where freight
from East St. Louis exceeds 0.5c.
**F.o.b. Fort Colburne, U. S. duty included.
t+Aver♦Revised

producers'

Bus Inner

Truck and

30,545.000

Apr.

commodities other then farm

3,291,161

351,273'

31,047,000

Commodity Group—

All

876,576

301.005
-

of)—
——

Inventory

united

Apr.

780,080

Inventory

"Apr.

sales

PRICES, NEW SERIES

285 825

STOCK

Total sales

LABOR—(1947-49

—

Shipments

EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS
ACCOUNT OF MEMBERS (SHARES):
round-lot sales—

All

*280,244

342~490

FOR

WHOLESALE

Motorcycle,
fNumber

Shipments

Total

Other

3.232,246*

287.908

653,300

dealers—
SALES

Tubes'

Tread

Apr.

Round-lot purchases by
Number of shares

1.326 262

Production, (pounds)

;

YOTAL HOUND-LOT STOCK

Passenger,

I——

.-Production

sales

..——

3,632,540

292,135

—_—

(Number of)—
———x—i_—-----—-

Tractor-Implement Tires
Production

Apr.

Customers'

Short

_x_—_

1.207,524
3,512,054

787,334

Inventory

1,122,243

——1-———...—-——

Production

figure.

and

age of daily
Exchange.

mean

and
'

bid
'

and

ask quotation
\"

at morning session

of London Metal

185

Volume

Number 5634

The-Commercial and Financial Chronicle

...

(2091)

Continued

Forms* Abbott &Co.

from

page

fore .in

America's history for close
study of what foreign manufac¬

/Special to The Financial Chronicle)

CLEVELAND, Ohio

Gardner

—

turers have to offer in

Industrialization's

Impact

some for less than
$1,000, are now being processed
by the Bank for financing of
completed export sales. Required

of Abbott & Co.

name

U. S. Exports

the plication forms,

under

Building

Williamson
firm

MEETING NOTICE

credit

sentatives

Notice of

May 8,

NOTICE IS HEREBY GIVEN, that
the Annual Meeting of stockholders of
ALLIS-CHALMERS MANUFAC¬
TURING COMPANY,
a
Delaware

themselves

To consider and transact any

...

;

i
-

Board

other

the large

products

available European and

tain

Japanese
competitive product to his many
lines.

the

tJ.

familiar

with

sales

the

comes

selling tech¬

niques, he does not sit back and
his

say

"All

Venezuelan

right,

the

customer,

Germans

will

give

you
five years' credit, go
ahead and get it from them." In¬

stead,

cannot

sell

the

resort, he
terms,
price, to re¬

satisfied customer.

(Special to Thb Financial Chronicli)

KANSAS CITY, Mo. — Con¬
tinental Securities Corp. is
engag¬
ing in a securities business from
offices in the V. F. W.

Officers

(Special to The Financial Chronicle)

Management Services,

per, President and Treasurer and

E.
Abbett,
Secretary.

needless

rapidly

Vice-President

DIVIDEND NOTICES
United States Pipe and Foundry Company
Burlihgton, N. J., April 25, 1957
The Board of Directors this day declared a
oua-terly dividend of thirty cents (30tf) per
share On the outstanding Common Stock of
tUis Company, payable June
15, 1957, to

storkholdere of reortf

NOTICES

United States Pipe

dustrialization of

Directors,

Company

directors

Inc.

away

The Singer Manufacturing

1 inc

have

Berkshire

declared

of 10 cents per share

the

Hath¬

The

dividend

Board

Directors

has

stock, payable June 1, 1957 to hold¬
of record May 7, 1957.

holders

record

the

ers

May

10,

business

NATIONAL DISTILLERS

1957.
D.

MALCOLM G. CHACE, JR.

April 25, 1957

declared

quarterly dividend of fifty-five cents per
payable on June 13, 1957 to stock¬

common

ALEXANDER

Secretary

President

April 25,

CORPORATION

1957.

overseas

the

that

PlI»V'
DIVIDEND

LOEW'S INCORPORATED

The

1950's

Greater need

todav than

clared

in¬

ever

New York 20, N. Y.

NOTICES

Common Stock,

June

May 10, 1957. The transfer

books will not close.
PAUL C. JAMESON

payable

1,1957, to stockholders of record

June

follows:

have been declared

quarterly dividend of

Vice Pres. 6* Treasurer

DIVIDENDS

CHARLES C. M0SK0WITZ

;

be-

QUARTERLY
DIVIDEND

of record at the close of business
14, 1957. Checks will be mailed.

Directors has de¬

25t per share on the outstanding

share on the outstanding
Common Stock of the Company
payable on June 30, 1957, to stockholders

THE fUNTKOTE COMPANY

NOTICE

Board of

clared ,a

quarterly dividend of 25c

per

both

the small and large U. S. exporter

Dated: March 21, 1957

(^5^ The Board of Directors has de¬

with

world

has had to cope with a new kind
cf foreign competition. There is

Vice President

Foundry Company

and

JOHN W. BRENNAN, Secretary & Treasurer

BERKSHIRE

established
known

say

May 31, 1957.

The transfer books will remain
open.

DIVIDEND NOTICES

are

spreading

Building.
C.

Inc.

is engaging in a securities business
from offices at 430 North Camden
Drive. Officers are Karl C. Ves¬

Cecil

Robert

are

Allen,
President; Edward B. White, VicePresident and A. D. Allen, Sec¬
retary and Treasurer.

BEVERLY HILLS, Calif.—EastWest

and

DIVIDEND

last

East-West Management

deficiencies and advantages of his
competitor's goods as his own.
When it

today. As

Continental Sees. Formed

April 30, 1957.

HAWKINSON,
and Secretary

distributed

from

the

;

can¬

from

whose

and

will compromise on
longer
and sometimes even

in every corner of the globe.

holders entitled to notice of and to vote
at-this annual meeting or any adjourn¬

By order of the Board of

profit

advertising

magazines
firms

March 21, 1957, as the record date for
the determination of the common stock-

ment thereof.

comes

fixed

has

Directors

of world industrializa¬

pace

bulk

ment thereof.

The

sales

tion unless he is prepared to pro¬
mote his goods abroad. By far the

business that may properly come
before the meeting or any adjourn-

-j.,

better

exporter located in New England
on display in his office
every

The

expect

rapid

Board of Directors;

reduced

jifbdCict, hfc then explores

has

handling of collection

I Sixth, the small exporter
not

House), West Allis, Wisconsin, on
Wednesday, May 8,1957, at 11:00 A.M.
(Central Standard Time), for the follow¬
ing purposes, or any thereof:
I." To: elect

payments.

"Company"), will be held at the gen¬
eral offices of the Company, 1115 South
70th Street (Allis-Chalmers Club

•,

for

inefficient

the

called

(hereinafter

abroad

they
are
falling down on the job. A recent
McGraw-Hill survey of New York
exporters shows that 90% put the
blame on economic or political
conditions instead of the agents

ANNUAL MEETING OF STOCKHOLDERS

corporation

bor¬

Fifth, do not be lax in making
changes in your agents or repre¬

Milwaukee, Wisconsin

the

durable

every one of the several available
methods
of
financing
overseas

-MFG. CO.

to he held

and

purchaser have been
limited and the commission charge
abandoned.
V

ALUS-CHALMERS

information

rower

strength

prod¬
ucts and in selling techniques. One
astute
medium-sized automotive

Abbott, Jr. is engaging in a secu¬
rities business from offices in the

new

April 25,1957.

Treasurer

Common Stock*

sixty cents ($.60)
& FOREIGN

AMERICAN

two

rector

POWER COMPANY INC.

street,

n£w york

«.

^COMMON STOCK

DIVIDEND

;

„

)

;

one

this

ord

the

payment

the

meeting held

day, declared

dividend

for

quarterly

25; cents *"
Common

June

shareholders
close

the

per

Stock

1957 •

10,
of

■

15,

rec¬

business

dividend will

Preferred
of

the

have

for the

those

new

Stocks

until

been

($1)

dividends

per

payable June
1957 to stockholders of record
close of business May 31,
are

WILLIAM FEICK, Jr., Treasurer

May 1, 1957

*11 Cth consecutive
11J

GUARANTEE

O'okiep Copper Company

• and Trust Company
DIVIDEND

J
•

\
j

NOTICE

Limited

Trustees of Title Guarantee

Dividend No. 42

and Trust Company have de¬
clared a dividend of 30 cents

{

1957.

such

today declared a
share on
Shares of the Company pay¬
able May 31,1957.
'
.

The Board of Directors

dividend of fifteen shillings per

share designated

as the second regu¬
quarter-annual dividend for 1957,
payable May 24, 1957 to stockholders

per

lar

of record

the Ordinary

May 7, 1957.

tion of the said

President

Company, which became

holders of record at the close

issued

the

the old stock

are

ALUMINIUM LIMITED

President

and

NOTICE

DIVIDEND

Secretary

Directors
of

has

declared

June

ending

ONE

30,

for

New York, New

May^ 31.

of 6,9% will be

Board of Directors,
SCHECK, Secretary.

F. A.

quarter

change

exchange

Africa non-resident

1957. Union of South

shareholders tax at the rate
deducted.

Board

H. W. Balgooyen,
Vice

approximately $2.09

share, subject, however, to any

DIVIDEND

urged to communicate with the Company.

Executive

1946. The divi¬

Agreement dated June 24,
per

By Order of the

Holders of

of the_Deposit

terms

which may occur in the rate of
for South Africa funds prior to

February 29, 1952.

of busi¬
shares

June 4, 1957 of American
under

dend will amount to

un¬

Reorganization

to the
ness

dividend

authorized the distribu¬
dividend on June 11. 1957

Directors

The

WILLIAM H. DEATLY

exchanged
entitled

are

der the Plan of
of the

be dis-

dollar

TITLE

securities to which

holders

effective

May 10, 1957.

Common

and

Company

not

holders of the old

,tributed To

the

This
The Board of Directors of the

Company,

IMPORTANT

per

$4 Cumulative Preferred Stock

n. v,

Both
.

York, April 25, 1957.

1957

ONE-HALF

and

(lt/2%) PER CENT or $1.50 per share
PREFERRED STOCK, payable July
20, 1957 to shareholders of record
July 5, 1957.
on

April 27, 1957.
A quarterly dividend of 67 Vi cents

share in U.S.

per

clared

this

the

currency was

par

de¬

value shares of

Company, (present capitalization

Also declared
share

tional

prior to the three-for-one subdivision

1957

effective

STOCK

May 4th), payable June 5,

DIVIDEND of 45c per

COMMON

effect

the

April 25, 1957

COMMON

payable

split,

CORPORATION

May 21,

for 1

No.

DIVIDEND

June 1, 1957
May 2, 1957.

The Board of Directors has

G. F. Cronmiller, Jr.

May 3, 1957.
JAMES A. DULLEA

Montreal

outstand¬

issued

to shareholders of record

1957 to shareholders of record at the
close of business

STOCK

ing at May 2, 1957 and on the addi¬

Secretary

declared

Vice President and Secretary

dividend of Twenty-five cents

($0.25)

Pittsburgh, April 25, 1957

regular quarterly-

share and

an extra

dividend of Twenty-five cents

($0.25)
-Stock
to

on common

payable May 17,1957,

stockholders

of record

May 8,1957.
M. J.

FOX, Jr.

BloomfiM, N. J.

Vice President

April IS, 1957.

end Treasurer

DIVIDEND

§
Quarterly dividend No.
145 of $.75 per share has

The Board of Directors of

mon

Stock of

Delta Air Lines, Inc. has

Allied Chemical & Dye

declared

Corporation

payable
207TH COMMON DIVIDEND

regular dividend of One Dollar ($1.00)

Tobacco

share has

the Common Stock of The American

Company, payable in cash on June

stockholders of record
1957.

per

June

to stockholders
at

been declared upon

the

10,

1957,

of record

of business

quarterly divi¬

dend of 30c per
the

Secretary

Harry

April 30, 1957

Hilyard

Vice President and Treasurer

Hove Been Paid Since

INC.

payable June 3
stockholders of record

the

Dividend No. 185

company,

of business

May 10.

Checks will be mailed.
Continuous Cosh Dividends

MOBIL

OIL COMPANY

Richard F. Hansen

April 30, 1957

SOCONY

capital stock of the

May 17, 1957.

1, 1957, to

the close of business May

Mobil

CASH DIVIDEND No. 39

the Com¬

been declared

DELTA AIR

LINES, INC.

General Offices: Atlanta, Ga.

The Board of Directors on

April

quarterly divi¬
dend of 501 pur share on the out¬
standing capital stock of this
Company, payable June 10,1957,
23,1957, declared

stockholders of record

close of business May 3,

at the

1957.

A. M. Shekwood, Secretary

Organization in 1920

The Commercial and Financial Chronicle

Thursday, May 2, 1957

....

(2092)

Eisenhower.

BUSINESS BUZZ

With the enormous

development
staff

;

personal

the

President

the

White House Establishment, the

members

BeVind-the-Scene Interpretations
from the Nation's

yj -*/%

%/d~h1 i

jLjL m i/lMs

Capital

Cabinet

the

come

and

they

ally

the President.. The Presi¬

from

dent is surrounded by a
of

WASHINGTON, D. C.—George
Humphrey has indicated that he

While he might
leave any day, most observers
would expect him to postpone
his departure until it suits the

is ready to go.

convenience of the President.

Humphrey probably
will not leave until some time
Mr.

adjourns for the

after Congress

Congress

While

summer.

forum

from

will

session

mains

the

which

re¬

be a
Presi¬

subjected
criticism.
Humphrey himself

dent's budget will be

continuous

Mr.

Since

public

last January about
of the budget
as
it

complained
size

the

for

political

to take his leave of this

circus while it

still grinding

was

budget,
Humphrey

out the criticisms of the

this would look like a

demonstrate his disa¬
greement with the President.
to

step

the 1958

matic

the

hold

operate to

Secretary

present

the Treasury in office for may¬

Sena¬

months longer.

three

through
his
Finance Committee is going to

tor

Byrd

Harry

(while
simultaneously "liberals" on the
committee will be flaying "tight
policy

fiscal

investigate

As to why George

Should

Humphrey

Secretary

it might look
like he was running out on the
inquiry as well as letting Mr.

depart too

soon,

Eisenhower

the

that

personality

Humphrey

the

facets

apparently he definitely wants
to avoid embarrassing the Pres¬
His

ident.

friends

even

state

that the Secretary is

NOT quit¬
ting because he disagrees with
the President

the size of the

the big

Everything."

If there is any area
in

which

Treasury

because

signing
the

disagrees

White

House

the

budget, is taken with great res¬
ervation by political observers.
is

That

Mr.

because, they report,

Humphrey in the last sev¬
months has in his private

conversations with his compara¬

tively few intimates in certain

been

circles,
the way

things

has

fore
was

been

believe

dissatisfaction

keen

sonal

disclosing
are

per¬

with

difficult

that

such

hereto¬

personal zealot for

econ¬

omy.

It has been difficult be¬

cause

for

some

time public sta¬

tistics available to persons out¬

sense

found he

not, in

was

of speaking,

that Mr. Eisenhower
no

ward

high spending.

has been evident
death

that

moving

The trend

ever

since the

Senator Taft

removed

restraining

Federal

Self-Entrapment

for

was

if he is the
" advocate
his
he is — to evaluate

long

friends say
his
actual

—

influence

the

Eisenhower

Administration, is
explained as being the conse¬
quence of some of Mr. Humph¬
rey's own concepts of how to
play his role in government.

that

Continuing Interest in

winsome

of these

One

the

the Treas¬

was

Secretary's relations with
other
figures
of
government,

particularly in the Congress.
A

man

of outstanding accom¬

him

to
be
Secretary of the
Treasury, Mr. Humphrey acted
as though he abhorred wasting

with

time

scores

supposedly

unimportant people in this
litical town.

po¬

his outstandingly

personality

he would seek out the
with

the

power

that

apparent

Simultaneously, how¬

he would ignore the sev¬
in

reaching

the

very

real

New York 6,

CO 7-1200

N. Y.

Philadelphia 2, Pa.

LO 8-0900
ATT Teletype PH 30

love

great

under-

power

anything else which

to seek top positions
public life. Hence, they view

practice actually
smooths the way for Adminis¬
a

■

that

natural

real

staff

has

this

love

and

large
power
should
be
acquired by these
comparatively unknown
and
anonymous staff men. When that
fidence

the

complete

con¬

President, when

important members of the

even

Senate

cannot

the President

Press Relations

the private

that staff becomes

Secretary ig¬
nored all but the "very impor¬
tant people" in the press; * He
rarely held press conferences.

Likewise,

the

cultivated

TV and radio

news

commen¬

tators with national shows.

That is

invited them to dinners.
how

Mr.

who

Humphrey,

the

charm,
often
Every¬

to be written up so

came

"Secretary

thing."
Congressional Advocates
Another
omissions

Mr.

Humphrey's
failure

his

was

cultivate continuously and as¬
siduously
those
members
of
1, Congressional committees which
handled legislation

affecting the

Treasury.
have

done

this,

but

the

ones
have
theory the
a
Cabinet is, as it
hired hand of the

smarter
legal

White

the

Congress.

House

and

ful to

Cabinet member in the

Administration,

Eisenhower
where

legislators

called

made

and

told

are

usually

are

decisions

after

what

the

other

even

if he
the press
and
Congress, it may be doubted
that despite his
outstandingly
forceful personality,
he could
have achieved a great deal for
bound

hower Cabinet is the

the

which

taken

limit

the

under

Administration
with

the

staff,

deprecia¬

Cabinet

the

The depreciation of the Cabi¬

member

However,

personally
with

the

continuously

and

members

the

Con¬

net's status is

not

Humphrey

policy,

merely

fronting

pretation from the nation's Capitc
and may or may not coincide wit
the "Chronicle's" own views.]

American Nat'l

Planning

(Special to T*e Financial Chronicle)

BEVERLY HILLS,

American National

poration

has

Calif.

Planning Cor
formed

been

offices at 430 North Camden Driv
to engage

are

ident and

securities business

Cecil E. Abbett, Pres

Karl C.

tary-Treasurer

Vesper, Secre
Vice-Presi

and

dent.

Birkenmayer Adds
(Special to The Financial Chronicle)

comparison

President's

past has kept up good relations

President.

Mr.

it.

has

personal
White House Estab¬
lishment, or "politbureau."

the

forceful

finds himself, instead of making

Eisenhower

many
a
Cabinet in the

were,

Officers

cleverest member of the Eisen¬

tion

personality

even

economy.

the

opposes

Under those cir¬

even

for

had

and

who

man

cumstances,

fiscal

tended
to his fiscal knitting and had
not dispersed his influence by
taking a hand in affairs outside
his jurisdiction,
had 'cultivated

the

Welfare State.

[This column is intended to re
fleet the "behind the
inter

hand,

Humphrey

That White House staff is no

the

Cabinet Depreciated

George

through

the phone, then
a formidable

lover of economy and no friend

are

Administration wants.

get

thing.

This would be especially help¬

What

so.

member

between

Not all members of the Cabi¬
net

cer¬

tainly made personal advocates
of these writers with his

pitch of the thinking
legislators, and he can
help in brokering things

the

writers

syndicated news columns,
ibig magazines, chiefs of Wash¬
ington bureaus of newspapers,

DENVER,

Colo.

—

Evelyn

Bakke has been added to the st_

Birkenmayer

Club

Co.,

Denv

Building.

qualitatively

but quantitatively new with Mr.

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The member of the Cabinet gets

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and

decision

Grinnell Corp.

Established

disloyalty of the Cabinet mem¬
bers who do this to their Presi¬

tration

John B. Stetson Pfd.

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his

and

ignore them.

man

of decision, and cultivate

man.

eral others who had

the

one

primary

than

very

gressional committees important
to their department's work.
This
reflects
no
particular

dent.

done
In his Congressional relations

ines¬

causes men

sales¬
manship, Mr. Humphrey should
charm

undisputed

politically

Fischer & Porter Inc.

International Textbook Co.

Secretary

them. Many regret¬

with

ury

hand

felt

that

with

eeconomy

r u

that

ultimately
ted

Instead

ever,

influence

extravagance.

Therefore

was

particular slowness to¬

the Secretary of the *

Treasury.

got around to these other people
had ignored

manner

side the government have shown
with

of trends that he only belatedly

before Mr. Eisenhower recruited

Humphrey

;;

that after being billed as
of Everything," !
lulled into
imperception

that

"Secretary

was

compelled

stand

sup- :

plishment in the industrial world

going.

his broker!"

Humphrey

"So THATS what he means bv going down to see

dominant voice, .1
it is fiscal policy. Thus, it would J

Mr.

govern¬

Practical
;!

the

tradition

posed to have

purported intelligence
Mr. Humphrey is not re¬

eral

of policy

Secretary

billion
system

patently off the job such

area.

/ ;

$70

deal of the time.

as/:'.;

staff

the

House

popular observation that George
Humphrey was the "Secretary
of

few

greater and greater load of de¬
cision because the President is

This led to the widely accepted

fail

The

with

fiscal

the

outside

than

important decisions.

having a hand in all sorts of
major Administration policy de¬
cisions

the

However, Mr. Eisen¬
hower has emphasized the staff
system for its own sake, hav¬
ing inherited a love of it from
the Army. He openly glories in
-letting staff men make deci¬
sions.: Apart from that, how¬
ever,
the staff of the White

explana-

Treasury

the

capable.

That George Humphrey could

Does Disagree

'Under

affairs offer

the

impos¬

with

discuss

ment

national media of news '
portray the
of

physical

Staff System

information to

Secretary

budget.

that

It had been the custom of

tion.

the

One

these

Humphrey

human

and

simple

appear

down.

President

observers of fiscal

and

Cabinet

the member

long to give up hope
that he could reverse the trend,

and high interest rates").

money

sibility for

home finally the drift of

waited

foreclose

practical

Cabinet,

brought
things.

indelibly

size,

President,

tne

they

BROKER

$71.8 billion which, by its dra¬

and
Another thing may

„

figure

understandable

that

These

made in the

are

members from making policy.

the announcement of
fiscal year budget and

ing with

who

thousands.

the

name

PAWN

came to give up the hope
reversal against big spend¬

only

initial decisions

often

•

sions

Honest Harry

Thus, to all appearances, Mr.
Humphrey, like the great bulk
of the uninformed population,

out, if Mr. Humphrey were

came

Secretary of Everything

the timing,

motivates

this

If
then

net.

coterie

assistants

personal

anonymously make initial deci¬

has un¬
doubtedly known the drift of
things, he must at least be ac¬
cepting it because he was stay¬
ing in Mr. Eisenhower's Cabi¬
Humphrey

Mr.

since

Usu¬

arm's-length

are

branch

Canada.

plant in Texas or

managers

have

Samuel K. Phillips & Co.
Members Phila.-Balt.

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Telephone
v-v.

.J *

i.-.j'.-.

•'.-ji-'r"'jiv'•"/*•*•'

• ]•

•'

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Boston 9, Mass.
Teletype
BS 69