Full text of Commercial and Financial Chronicle : May 23, 1957, Vol. 185, No. 5640

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ESTABLISHED 1S39

BUSINES^DMlWaTC*1**-

Volume 185

Number 5640

New York 7, N. Y.,
'i

Price 40 Cents

Thursday, May 23, 1957
•

•

■

•

Copy

EDITORIAL

Qaestions
We

It
Se

The consternation of the officials of the

A rumored

tioned in
tion.

matter how big and congested they

.are.

Funds from outside, too,
instances

some

are appor¬
the basis of popula¬

niinds

a
population no longer
stagnation. No one, ? therefore,
need be particularly surprised at complaints from
New Yorkers;.; and possibly charges of inaccu¬
racies or incompetence in the taking of the census.

growing

some

means

Yet it would not be

particularly surprising if
presently the final figures showed the population
of New York City no'larger, or even smaller than
a half a decade or so
ago. The same could be
said of a very considerable number of our other
larger cities throughout the land. As all students
of population movements are well aware there
has been a trend away from the large cities as
such to smaller surrounding places, either sub¬
urbs of the larger cities or what one might be
called satellite cities, and .even to more or less
open country in metropolitan areas. It has been
in evidence for several decades* arid is continuing
unabated so far as can be determined from some¬
what inadequate current statistics. ." • *
of - suburbanization has brought
vast economic consequences. It has beien the sub¬
ject of a great deal of study and analysis by mar¬
keting specialist?. With it is closely associated a
great growth in home ownership and mortgage
process

the second of July a bare 24 years ago
sent his famous message to

was on

President

Roosevelt

page

Citing advantages1 in stock market investment, market
economist urges diversion of iunds to industries inposition to grow: through nation's remarkable scientific
achievements. Lists ibsues^affontiug diversification and
in position to benefit from technological research. Urgeg
use of investment company or Dollar Cost Avenging
Plan. Offers permanent cnteria in company appnifal,
as management, resoarch, fiiiaiirial position, and
capital

expenditure.

picture may be available after Labor
Day, with floor- of 400-420 for the D. J. Average with
subsequent opportunity to sell stocks in 75480Q area.

that

haps

world

believed to. be

Careful

the

sary

the

As to - this "sensible^ market's future,

maintains clearer

plicitly put his finger upon what
many people in almost every spot in

thinking, planning, and imagination are neces¬
in achieving success- in investment programs. Per¬
the first question that' should be ^ answered is
.

whether

securities.

the most '-

first

number of years

individual

should

We feet that, you

buy

should

provide

adequate . insurance
of cash for
emergencies, ; and -suitable
living
quarters. After those needs are met

important and pressing economic
problem of their time. *•.
vs* Today the issue is: not how to *
elevate prices, but father; how an <
/inordinate rfse in prices can./he *
abated, if as a practical -matter it is7
possible, by using a variety of * dif- v
ferent devices; to achieve this purpose at all. Twenty-five years ago,
and for

protection,

•

reserve

it' is wise to; consider securities for

surplus

your

reasons—

funds

for

several

;

As protection from inflation
rising cost of -diving. The
dollar that was worth; 100 cents in
(1)

thereafter;;

the

1939 is worth

only 50 cents in terms
purchasing power today.As we
shall see later the stock market has

the

problem was not how to suppress
/ the rise in. prices, but how to stimulate:,
them to rise. The. issue? of the 30'g
was a complete contradiction of the

„

Lewi* W. Douglas

now

face,

.Ralph A. Rotnem
'

derive its definition from a particular mass of evidence

•An

address

National

particular moment in experience. Just as
Continued on page 37

by Mi*. Douglas before the 41st Annual Meeting of

Inaui
lustrial

Conference

Board,

York

New

City,

1957.

May

place whei^e a * person has
been able to protect his savings from
the ravages of inflation,
1
been

issue of today. The problem that we

■

almost everywhere in the world, does not

relevant to

16,

Age

Director of Research; Harris; Upham & Co.
Members New York Stock Exchange

Conference.In this message he im¬

London Economic

the

Continued

our age

This

Humphrey calls for

tion of government

much inclined to feel pleased when they are

already

to Treasurer

of inflation and accentuated insinua¬
in the economy. Former:Ambassador
Douglas questions Federal Reserve's total effectiveness
in deterring inflationary forces in view: of: ^1) eighteen
years of not being at peace; (2) fear of causing unem¬
ployment and of violating the employment mandate of
the government; (3) inflexible, unyielding factors in the
economy;
(4) changed internal, credit: structure; and
(5) complications and contradictions in fiscal "and credit
policies. Suggest! Federal budget expenditures and tax
structure be modified to permit greater savings. /
policies in

city in recent f years is understand¬
enough in some respects! Cities generally

growing,

successor

concerted attack upon continuous currency depreciation
after pinpointing dilemmatic fiscal and monetary-credit

tion of their

able

In This Scientific

Company of New York

By RALPH A. ROTNEM*

City
of New York over the apparent prospects that a
special census they had arranged will show no
increase, and possibly a decrease, in the popula¬

are

Stock Market Investing

Chairman of the Board,

Mutual Life Insurance
...

loflation

By HON. LEWIS W. DOUGLAS*

one

(2) More-intelligent investing is possible today than
was before the 1930'sbecause Of the- better-sources; of.
V
:
v
Continued on page 38
.

speech by Mr. Rotnem before the-New -Jersey-Section of the
Institute of Chemical "^Engineers,- Newark. vNew Jersey,

American

May 14, 1957.

•

SECURITIES NOW IN REGISTRATION—Underwriters, dealers and investors in corporate
securities

DEALERS

are

afforded

complete picture of issues now registered with the SEC and poten¬

tial undertakings in our

State, Municipal

"Securities in Registration" Section, starting oh page 44.

U. S. Government,
State and

Municipal

Securities

Pubfic Housing Agency
Bonds and Notes

COPIES OF OCR

and

■

telephone:

HAnover 2-3700

CHEMICAL
CORN EXCHANGE

bond department

Available

15 MOAD STREET,

NEW YORK 5, N. V.

•

W4-W00

TELETYPE NY 1-209*

OF NEW YORK

Members New York

Exchange

Stock

129 BROADWAY, NEW YORK

Bond Dept.

Teletype; NY 1-708

Active

Markets Maintained 4
and Brokers 1

Net

T.LWATSON&CO.

Commission

Orders Executed On

•

Markets Maintained

Municipal Bonds
for California's

Expanding
Economy

Rights

CANADIAN DEPARTMENT

American Stock Exchange

BANK

to coast

MONTREAL
AH

Exchangee At Regular Rates

coast

BANK OF

SECURITIES

Members

officos from

Chase Manhattan

The

Dealers, Banks

CANADIAN

ESTABLISHED 1832

New York Stock Exchange

the

Harris,Upham & C-

American stock exchanges

INSURANCE STOCKS

Teletype NY 1-2270

25 BROAD STREET

DIRECT VIRES

to MONTREAL AND TORONTO

Goodbody

NEW YORK 4, N. Y.
J

Co.

MEMBERS NEW YORK STOCK EXCHANGE

*
i

I flST

COM PA N Y

bridgeport

•

BOND DEPARTMENT

ON REQUEST

Request

Burnham and Company
mcmmimmcw vokk and

ARE NOT AVAILABLE

THE FIRST NITIOIUl CinMNK

CMUl COWRNIMM

BANK AND

■

REVIEW"
LETTER

FOREIGN

BANK
30 BROAD ST., N.Y.

"COMMON STOCK

perth amboy

115 BROADWAY
NEW YORK

1 NORTH LA SALLE ST.

CHICAGO

Doxhiom Securities
Grporatioti j

I MUNICIPAL BOND
DEPARTMENT

3&uttk of America
NATIONAL

Exchange Place, New York 5, N. Y

Teletype NY 1-702-3

WHitehall 4-8161

300

savings ASSOCIATION

Montgomery St., Son Francisco. Colif.

The Commercial and Financial Chronicle
2

Thursday, May 23, 1957

(2386)

For Banks,

The

Brokers, Dealers only

Try "HANSEATIC"
Because you can

sure

Security I Like Best

A continuous forum in which,
in the investment and

each week,

different

Experience

Nationwide Coverage

they to be regarded,

are

Partner, Courts & Co., Atlanta, Ga.
Southdown Sugars,

Inc.

Markets in

than 400 OTC Issues

his

the

area

Broadway,

120
WOrth

BOSTON

•

PHILADELPHIA
Private

Exchange

•

Wires

New York

FRANCISCO

Principal Cities

1930
Trust

Specialists in

Since 1917

oil

Memoers

York Stock

Government

Celotex

American Stock Exchange

IMmver 2-0700

„

Y.;

NY 1-1557

■

New Orleans, La. - Birmingham, Ala.

Mobile, Ala.
Direct wires to

branch offices

our

and Valen-v

ihcreasing ; importance

Southdown's oil

from oil and gas has

four

jast

the

STOCKS

and gas business

by the fact that

|s evidenced
come

IAPANESE

years.

ln-

after remaining
■

doubled
Certain

years ^
appear to be stirring.due
improved Japanese economy.'

now

and.inarr 'developments during this period"
the jn(jiqafe a vast potential may be

acreage

gu far Act sugar jeopardized forthcoming.
have operations.
Southdown s
John

For

allowable acreage to . be,

-;r

write

In addition to the

Yamaichi

ownecj jn fee Southdown holds a
fourth

information

current

Gall

4g^ggfacres of land in Louisiana

Ellis

practically

stationary levels for three

keting restrictions imposed by

substantial

company."

and

gas

sources

oil

and

Exchange

gas

od-

Oil and gas royadUes and
bonuses increased nearly 40% last

erathms.

TEL. REctor 2-7*1 P

will

down

ieSs

18%

only

have

Income from acres to sugar cane than in 1953.
has been ex- The problems of acreage restric-

Dortamf as^rofits^rom^suear

Exchange

Stock

BROADWAY, NEW YORK 5

120

manufacture.

18,000

planted to sugar cane by the comwhen
the
Canal
Bank
& pany was reduced almost -10% in
Co. of New Orleans, in liqui- 1954 from the 1953 amount. Sub-;,.

royalty

McpONNELL&fO.
American

'■

intprpst

thP mineral

*Th^ combanv

hS
wWaltvTfrom
vaiying royalty./interests (from

•

Securities Co., Ltd.
.

now

Home
>

Established

Office

Tokyo

1897

—

Branches '

Brokers <fe Investment Bankers

111 Broadway,

N.Y.6 COrtlandt 7-6680

come

New

bagasse

dation, transferred certain notes, sequent reductions were imposedmortgages, plantations and other s0 that 1956 allowable was about.'
properties to the new company. 28% below the 1953 acreage. As a ..one-eighth' to one-third)r in over
Southdown Sugars is a fully in- result of the 1956 Amendment: to 50 oil and gas wells.
"
rV' '
tegiated sugar producer and re- the Act, acreage allowables will.-r >phe oldest producing section of
finer and in recent years has be- be eased in 1957 so that South- '
•
;
,
.

SCRIP

and Coca-Cola.

in¬

corporated

*■

•

19 Rector St., N6w York 6, N.

molasses
Southdown realizes

blackstrap,
biaCkstrap

are

P^in-

busi¬

was

Steiner, Rouse & Co.
Members

essing

cipally in southern and central
freight rate territories to, such big
name customers as General Foods

o w n

This

Members New York Stock Exchange

Sugars, Inc. '
ness

RIGHTS

frefined, another one-fourth tine'Pulp and Paper; purchase all'
purchased from other Louisiana Qf Southdown's bagasse on longwhile the remaining one- ternl contracts. ' r,
half is imported from Cuba. Re-- v;
r;
....
•
: ;
fined
sugar
is sold under -the* ;
Oif and Gas :
brand name "Southdown"

velo p me n t s
and one in

Sout h d

/\V

growers

are

particular

(Page 2)

t ion

about

•

Bought—Sold—Quoted

ope-fourth ,of > the

about

•

Corp. — Robin L.
-Winkler, &PCo., tNew York City.
a r ner, Bernard,
Winkler

has

cane

from these de-

CHICAGO
SAN

a n

— i*«—
cultivationvWhich^

under

supply

benefiting

Teletype NY 1-40

4-2300

owners

Member

Stock

American

about 2,500,000 gallons of molasses
annuauy which is sold mainly for
cattle -feed, alcohol and vinegar

Southdown

Co.,

are

lr?1I.<u; *»• au>acres

Louisiana's

1920

nor

wMch fa W
New 'Orleansiv a the Old bpanisn

the

hav-

pirate's old
country. Many

Corporation
Associate

industrialization

are

ing a terrific
impact on the

New Yorit Hanseatic
Established

today

discovery of oil and gas

the

and

land

bayou

Louisiana

for

refinery

and

Lafitte wouldn't

Jean

;

Selections

Alabama &
Louisiana Securities

The main factory
located near

day.

sugar per

*
■

Ellis, .Partner, Courts
Atlanta, Ga. (page 2)

pacity of 7,400 tons of raw sugar
per day and a refinery which can
turn out 1,000,000 lbs. of refined

(Sweeter Than Sugar?)

5. Primary

be,

Sugars, Inc.—John B.

Southdown

offer to sell the securities discussed.)

as an

JOHN B. ELLIS

4. Reliable Executions

Week's

Participants and

Their

•

particular security.

participate and give their reasons for favoring a

Speed

of experts

group

This

advisory field from all sections of the country

(The articles contained in this forum are not intended to

Forum

™aL1?ciutlld?,wn realized over

$1,000,000 from these sources.

the' company s- property ls the
.Gibson Field which .is located
some-15 miles west of Houma.

;

o£ 3 433 aeres> leased to
Shell Oil with a one-eighth roy., tKlct

demand

for sugar

WALL

STREET

NEW YORK

5, N. Y.

alty, the company has an interest

in 28 producing oil and gas

During the last 12 months the
heavy

LAMBORN & CO., Inc.
99

tio?\and higher costs have been
S
herbicides and fertilizer.

do-

wells,

been

flow-

*some

which

have

SUGAR
Raw

—

Refined

—

Liquid

plantations ably. Current prices for raw sugar been holding up welband followcovering 46,168 acres of land in are up nearly 9% and prices for *ing the discovery of
good gas
the sugar bowl section of south- refined sugar have advanced'over; Producer
in
November
1955,
ern Louisiana. The company owns
5%.
_
,.J
A
'
dfl
3 factories with a combined ca' Two by-products of sugar..procrV
»
Continued on page *U

Trading Markets

Southdown

Air Control Products. Inc.

Bank of Virginia

owns

Exports—Imports—Futures

Dlgby 4-2727

Alabama-Tennessee Natural
Gas
First

Company

ROBIN L. WINKLER

Colony Life Insurance Co.

Partner, Bernard, Winkler & Co.

Lynchburg, Va.
LD 33

Tele. LY 62

Trading Markets

Applied Science
of Princeton
Eastern Industries

Radiation, Inc.

Stock

the potentials

and

them

the, com-;;

give

the

test

of the

1949

success
a

new

led by Roy T. Hurley
control
of
Curtiss Wright
time when the
company's
had declined from a peak in

offers

investor

oppor¬

t Nuclear
measurement systems
utilizing Beta rays have been de¬
took veloped for manufacturing plants

sales
1945

$1,200,000,000 to $112,000,000 in

1948 and the number of employees

tunity for {sus¬
growth

185,000 to 9,000. Rigid cost
control,
sharply
increased
ex¬
penditures for research and oper¬
ational efficiency have character¬
ized the company since 1949. Sales
have increased

the

from

dy¬

namic fields of

iS>

Pecos

Exploration

Acoustica Assoc.
Leon

Land & Cattle

Baruch-Kenilind

Oil

Herold Radio Pfd. & Com.
•

•

CAPPER & CO.
1 Exchange PI., Jersey City, N. J.
HEnderson

2-8570—Teletype JCY 119

Direct Wirt

Dlgby 9-3424

Robin

Winkler

continuing income from defense

than $571

from
sold to the government $2,750,000 to $43,153,518 and book
and its agencies. In addition, its value from
$13.22 to $22.68.
most
conservative
interest
in
Although Curtiss Wright is and
Studebaker-Packard via a man¬
will continue to be a major factor
agement contract and an option to in the aircraft
engine industry, in¬
purchase 5 million shares of the vestments in other
fields—prior
automotive
company's
common
to
the very recent Studebakerstock at
5
(currently selling at Packard and Daimler Benz
7Vi on the New York Stock Ex¬
developments — already are
change) provides Curtiss Wright
demonstrating signs of substantial
with a unique speculative appeal.
profit. Acquisition of the Columbia
Recently
the
management
an¬
Protektosite
Company
provided
nounced a three-way agreement
an interest in plastics. For an al¬
between Germany's Daimler Benz,
most
nominal
amount,
Curtis
Curtiss Wright and
StudebakerWright obtained sole rights to
Packard calling for an integration
Multiprin, an exciting new plastic
of engineering skills and produc¬
developed by a German scientist.
tion. These new relationships pro¬ Used as a soundproofing material,
million

1956,

earnings

products

Swan-Finch Oil

washedp

company.

plastics,

Tel. HAnover 2-4850

painted,

management

group

tained

37 Wall St., N. Y.

can

be made translucent or opaque.

In addition,

ultrasonics and electronics as well

1930

can

Without them

Curtiss

Wright

ESTABLISHED

plastic

Exchange

best.

Rosemarie Reid

&veetve<mdComp<mv^

the 20% waste thrown
interesting growth prospects.;'
Curtiss Wright has off in Multiprin's manufacture has
been utilized in the production of
demonstrated
an
impressive
and American Stock Exchange
growth record; with them, the sponges that look and feel like
natural sponges but sell at oneGurtiss Wright
company should become a major.
twentieth the price.
:
industrial empire.
It is rare that a common stock
During
1956
Curtiss
Wright
Today with competition through¬
sells with the doubly enhancing
firmly established itself in the
characteristics of growth and in¬ out industry so intense, manage¬
field of ultrasonics with the sale
ment represents the most signifi¬
come. The recent history of Curtiss
of
non-destructive
testing . and
cant aspect in the evaluation Of a«
Wright
has
cleaning equipment; to more than
company.
The product must be*
dramatically
60 major domestic manufacturers
i 11 u strated
good — but it is the manner in
among which are General Motors,
which
the
product is produced
both of these
Bethlehem
Steel
and
Kaiser
and distributed that is the ultimate
factors and
Aluminum & Chemical Company.
New York

unquestion¬
ably is the
security I like

Maule Industries

inherent
pany

New York City

Members:

Scott, Horner & Co.

diversification

vide Curtiss Wright with

unusual

carpeting,

furniture

cover,

this

cellulose,

the

building

ma¬

terials, paper and textile indus¬
tries.,! Advanced research is .going
ahead
in
the
field
of nuclear
energy

and

defense

and

its application for
industry at the vast

center
in
Quehanna,
Pennsylvania.
Curtiss Wright's operations are
now
divided among 17 divisions
all of which are headed by gen¬
research

eral

managers

substantial

with

supervisorypowers. Morale among
officers
and
employees
is ex¬
cellent
and
stockholders
have

eminently pleased with the

been

growth in dividend income from
$1.00 in 1949 to the current $3.00
and the price appreciation from
a

low

1949

the

1956

high of 49%.
Currently selling at 43 on the
New York Stock Exchange, pro¬
a
return of almost 7%
offering the investor excep¬

viding
and

tional

N. Q. B.
OVER-THE-COUNTER

INDUSTRIAL STOCK INDEX
18-Year Performance of
35 Industrial Stocks
ON

POLDER

REQUEST

/growth

potential
in the
electronics, air¬
craft, and the automotive indus¬
try, Curtiss Wright * well merits

fields of plastics,

investor

interest

common

value.

most

un¬

National Quotation Bureau
liKWUHited

46 Front Street

New York 4, It Y.

Volume 185

Number 5640

The Commercial and Financial Chronicle

(2387)

I N D EX

••

»"

J>'

•

./ ;

-'By SIDNEY BROWN
**'

" *

*"*

';:

Questions

Assistant

City

discerns

evasion

their

and

'Definite

flow

careful

Judge

salutary effects
capital-flows.
r
the-

encouragement

;

abroad

—

the

Court

Tax

United

the

States

nancial

The

volved

impor¬
of

this

uncover

bearing

Am erican

and

nancial

casual

.t i

"than

more
mere

rise,
'

and

Sidney Brown

e'"^

importance/

■

since it transeends the immediate

Our

tax

Company—Ira U.

Cobieigh

t,—__L—„
S.

WALL
STREET; NEW YORK
Telephone: WHitfehall 4-6551

Allsopp

We Trade and

*__

for

the

Business

Expansion

Order—Philip

Exchange

Control:

Bernstein

Securities

Kreps, Jr

Monetary

Ending
—E.

Cortney

Progress

OILS

13
14

Toward

& URANIUMS

Suez

•

Canal

Controversy—Burton

Andrews.

Industries Offering Best Investment
/ —Roger W. Babson

■

treaty with C an a d a
in effect -that. certain

ruled

follows:

sentatives

and

Canadian

agents

stockholders taxable. The Bureau

The

contended

repre-

for

their

was

entities

corporate

in its
scheme to

brief

J.F.ReiHy&Co.,Inc.

Members Salt

Growth

and,
thus/ were not liable personally
or
in their
individual
capacity;
If there were tax
liability then
the

of any income tax and that it was
a fanciful aberration induced by
the contemplation of the impact
of the Federal Income tax laws,

Canadian

corporate entities
taxable
parties; And

the

were

Premium,
tion

in-

the

were

was

the Canadian

which

Eaton

principal

Daley

stockholders,

held to be immune to taxation

by the United States

engage in trade or business

^the United

States ^and

establishment

permanent

The

did

since

these

The

-r

Crux

ai.

had no

was

agents

Exchange PI., Jersey City

DIgby 4-4970

No "Crusade" Without

,of-

investment

the

distinction

i tween tax avoidance and tax

sion
is

should

against

lawful

clear.

the

author's

Canada,"

Commercial

for

facts and

Financial Chron¬

1957, p. 3 for
description of the

;

upon

what

done.

Eaton

Daley

were

wide

experience'and

that

assume
summary

appeared

when

scious

before the Tax Court.
and
now,
the intent is to explore
of the economic
implications.

Then

wise

Business Man's

NSTA

Notes

the

The

Members New York Stock Exchange

TELEPHONE HAhover 24300

Albany

•

Nashville

Boston
.

•

Chicago

Schenectady.

•

Twice

' Worcester

Weekly

Park

DANA

Place,

ary

25,

1942,

President

Every

i,
<•'

{

Thursday

igeneral

and

every

Other

Offices:

Chicago 3, 111.

news and ad¬
Monday (com¬
quotation
clearings,

etc'),

135

South

the

post

Dana

matter

office

Salle "St.,

(Telephone STate 2-0613);

Lithium Corp.

Febru¬
at

New

Rates

United

Countries, $67,000
Other

Bank

and

$40,000 per

Note—On

States,

eign

rate

per

year.

exchange,

<5nhKrrlnMon«

be made in New

York

the

fluctuations

remittances

for

for¬

<"4,'*rtisements must
funds.

39 BROADWAY, NEW YORK S
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3-3960

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(Foreign postage extra.)
of

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year.

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account

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year..

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Eng-

Territories
and
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per year;
Dominion
of
Canada,
$63,000

the

Possessions,

Other

plete statistical- issue—market
records, corporation rjews, bank
sthte and city news,

per

Thursday, May 23, 1057

Vitro

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

Subscription

SEIBERT, Editor h Publisher

vertising issue)

London,

and

Smith.

second-class

Preferred

Warrants

Subscriptions
WILLIAM DANA SEIBERT,

Common,

COMPANY, Publishers
York

1
Diapers' Gardens,
land, c/o Edwards &

New

Resources, Inc.

Reentered

Metallurgical

/__1

(Florida)

REctor 2-9570 to 9576

Commonwealth Oil Co.

LJ,

FINANCIAL CHRONICLE

Dallas

United Western Minerals

Reg. U. S. Patent Office

1-51

Chicago

21
:_____z

Industry

■

Glens Fall*

and You—By Wallace Streete

Security I Like Best

HERBERT D.

—

The State of Trade and

TELETYPE N. Y.

•

—

Utility Securities

Washington and You—

Los Angeles

Prospective Security Offerings..

WILLIAM

25 BROAD ST., NEW YORK 4, N. Y.

Security Salesman's Coiner

Direct Wires

Philadelphia '

Securities Now in Registration!

II LI L ll H LU OIUUIlO

Exchange PI., N.Y.

__J_I____8

Railroad Securities

INC.

Bargefon____ 13

Public

Teletype NY 1-1825 & 1-4844

Mackie,

HA 2-0270

Possible Impact

;____.

con-

Spencer Trask & Co*

DDTCr!) DEI1 CTflPITC'
I

Franc and

Our Reporter on Governments.

Un¬

page

/___/

Investment Reconimendatidns_l'

some

Singer, Bean

Our Reporter's Report.

and..

advantages taxcorporate as dis¬

continued

Observations—A. Wilfred May.'

strong

were

Cover

Bookshelf

News About Banks and Bankers

Published

have specialized in

___r_._

The COMMERCIAL and

For many years we

Bank and Insurance Stocks././.

The Market

they

(Editorial)

Mutual Funds

of the
of

"(Boxed

businessmen with

aggressive personalities.

case

analysis of

From Washington Ahead of the
News—Carlisle

done, not what might V

been

Charles B. Harding

Indications of Current Business Activity____—

.■

ties incident to corporate procedure. It is not too much to

Conse¬

Funds

24,

doubtedly they were aware of
the nature, rights and liabili¬

tax.

"Serious

the"

depends

have

latter

reduce

article,

Ahead

Jan.

payable

quences

icle,

The

fact

eva¬

law, whereas tax
envisages the use off

means

amount
*See

bility

the

avoidance

* I.

It is axiomatic that tax lia-

be-

"Cause"!

Einzig: ^'Pressures Acting
on? Sterling"

tablishment" within this country..
The
Court
pointed
out in
its

"by the United States. The crucial
importance to the flow of capital

We have prepared an

fey

r"Coming Events in the Investment Field

in-/

whether the investments and in>vestors' actfyities were such as to
ov/>Indo
In
exclude tV,nwi from
them
being taxed

/ Dealer-Broker

dividuals in a personal capacity,.
and, two, as to when a foreign
corporation is a "permanent; es-

4 Y

Teletype: JCY 215

Regular Features
As We See

doing so4 careful
made as"to'the-

generally was the subof tax avoidance in foreign
■investments and promotions, and

dOCJSlOn:

Bt-S**!.'.

over-ruled: all

incorporated firms and act

At issue

Safeguards for Today's Investor Cited

«.

ject

HEnderson 4-8504

corporation,

representatives

♦

Lake City Stock Exeh.
Spokane Stock Exchange

ties a? to: one, when investors act
as

Case

claims.

parties involved and their activi-

here.'

the

Court

Tax

delineation

Irwru

such

one

Premium,
the
Governm ent
claimed that it engaged in trade
in the United - States and had a
"permanent establishment-'.here.;

corpora-

and

The Investor's Role in Preserving
America's Freedom
—Edwin
Vennard
*__^

that

this
escape payment

300

Lindley__-___ 19

People's Attitude Toward Banks and
Competing Institutions
>"—Charles A. Eaton, Jr.wi._-,—
America's

over

such issues
-

Hot Spots in the International
Picture—Ernest

transportation, end
'?■"

Maintaining markets in

Opportunities

•

Court

MINING

Convertibility

American investors acted

•

NATURAL GAS

Tax

;

Specialize in.

Natural Resource

Potential—Frank Rackley_______________ 26
clearly written and forth- Canadian corporate activities
right judgment reversing the- In- .could be set up to promote and 5 / Construction
Industry's Role in the National Economy
ternaL- Revenue- -Commissioner's finance this project and to1 sell-the ...
William F.
Butler_t.i_:_i„_:I_r__il_l_'___i_i_2_—_____/ 27
tax
levy against the American product,
and that-.-such an TarA New Approach to Economic
petitioners Cyrus S. Eaton, Wil- rangement was non-taxable in the
Aid and Mutual
Security
rl
liam R. Daley, and the Canadian U. S. However our Internal Reve^
Program—C. Douglas Dillon
r
28
corporation, - Consolidated PPre- nue Service sought in this case to T
The Long Range Need for Incentives
mium Iron Ores, Ltd.,
principally pierce these Canadian corporate«.
,—Crawford H. Greenewalt
owned by Eaton and
30
Daley,; the entities and to hold their principal
In

One dog.

Obsolete Securities Dept.
99

W. "Hanes__—J__—

Picture—Clifton

fi¬

services.

provided

Ahead—John

-Restore

•

countries concerned.

cat

The Stock and Bond Crop Has Never
Failed
'—Edward D. Jones

■

to provide a large sum ?

financing;

technical

Current Monetary Policy: Appraisals and
Prognosis •
O. Johnson.^
.J.

The Short-Term Outlook for
Money—Ernest

war

the formation

business day!

Economic and Financial Factors
Affecting the Business f

Canadian sales company (pertinent
to the tax case) which was
pre-;
of

■

Admission: One

Companies'
—L_5

Norris

rich-

assistance

Outlook for the Credit
Markets—Roy L. Reierson____.,_—___

Canadian

War

.......

Investments for Life Insurance

^Expected Capital Requirements

in---

;

governmental

World

Spared also

of '

FAIR
—Held here every

•

other

and

measure,

should

times

and

ore,

—

General Electric

entire lake to

American

part

the

This

extensive

Canadian

insuperable.

body

ente

draining

for

investors

—Harry B; Freeman,
Our

around

problems ' that

appeared

action

tax

Rock

last -month.
tance

*Decision—Sidney Brown
Common Stocks

Iron Mines, Ltd., a;
corporation, which had
been unsuccessful ih exploiting an
iron ore development until Eatonand others helped make it possible
to successfully solve
stupendous,
engineering, construction and fi¬

H. Van Fossan

7 ^

centered

case

Steep

given by

was

The

foreign ^

upon-

ANTIQUES

..Cover

Threat to U. S.-Canada Investments
Removed by Tax Court's

Canadian

Ernest

between

avoidance

tax

capital
existing billions of-dollars

invested

distinction

momentous

Rotnem

mMwjr.

WALL STREET

Investing in This Scientific Age

—Ralph A.

> •

rnmmm AMD CO MP Airy

.Cover

regarding tax vf V
The Economist i :X

capital abroad.

venture

the. decision's

of American private

-—and

;

/•.

U. S. Tax Court's reversal of tax assessments against Cyrus Si/
J, Eaton, Wm. R; Daley; and Canadian firm, is praised; by

treatment of

Inflation—Lewis W. Douglas

Stock Market

;

Professor; of: Economics

Professor Brown who; considers tbis decision as
and necessary reassurance to U. S. investors

; f ;*

Pace College, New York

Page

•

*Adjunct

a
t•

*"./•/';

LlCHT£HST£lfl

B.S.

Articles and News

Direct

PHILADELPHIA

wires
-

DENVER

SALT LAKE CITY

The Commercial and Financial Chronicle
4

Thursday, May 23, 1957

...

(2388)

<C-

'Jft'

*/-!■!

/*!'

.«»rt-fi

'*'7''* 4*i

ifietj '>

May. 15, just released by the New
York Stock Exchange.
Again a

■fciidi.

market rise has illogically

elicited

bearishness,

appar¬

,,Steel Production

decline

Electric Output

Carloadings

•

premise . that , the
higher prices go, the cheaper they
become. During the interval since
April 15, while the Dow Jones In¬
dustrial Average rose, from 485
to 500, the short position declined,
from 3,071,799 shares to 2,964,249
shares; and similarly illogical, the
ently

By A. WILFRED MAY
SHAREHOLDER AND THE NUMERICAL

MORE ON THE

HOLDING

SIZE OF HIS

finally
2-for-l

tent, the 1956 direct stock offering, no doubt stimulated ATT

with President Thomas
Watson, Jr., finding it necessary
to explain to
the annual

ownership, the breadth and character of the new holders shows

•

IBM

600-level

the

through"1

"comes

with

stock split;

meeting

greater.

not

held

vestment

management;
company,
I

split

a
A.

the fact that

for

years

and

one-quarter for 10 years or more.

Wilfred

Important

uie

family, possibly tied

the high-price, is

>ne-half of the holders have been
owners

of four-

for-one

have started with 10 shares
Women are the largest

hareholder

%'fy is"'';*#,,,

Services, rec-,
ommend

less.

jroup of owners at about 700,000
loubling that of the men. Mani¬
festing the
exceptionally longerm
investment attitude of this

stors ";

n v e

D i.versified

short interest

-7./

additional light is

Monthly Investment Plan closedend
investment company shares
a

investor

8.8%,

now

dent

the

'demands

put to make clear to
avid shareholder that the

hard

stock /dividend,

•

stock

the

split, merely changes the printed
ownership, that his former
100 shares have merely become 110
smaller shares with his proportionate interest in the property re-

form of

maining unchanged, and that the
additional ; paper /does not constitute income since if he sells
the dividend the remainder of his
holding represents

proportion-

public's

ally diluted share.: The

illusions
numercial change in the cer-

enchantment

with

and

ting Company, published in the
current issue of The Harvard

Business Review. Now reporting
his findings in the bull market of
1954 and 1955, this study up-dates
a previous analysis covering the
Side-wise markets of 1951-1953.
The earlier analysis, published in
the same publication's January-'
February 1956 issue, showed that,
contrary to general belief, stock
splits do not automatically produce
a lasting pmce gain; that dividend
increases are-a determining lacand that the achievement of
the worthwhile aim of broader
ownership thereby is dubious,

pur¬

plans

pany

13.6%, according

rose

"trust,"
the

value

come

to hand.

demonstrate anew that splits un-

accompanied by dividend ininvalidity of the low price-own- creases are actually followed by
ership-breadth thesis is found in relative price decline,
Empirical demonstration of the

the

experience of the American
Telephone and Telegraph Com¬

THE

of these
constantly been
many

HIGHER

available—in contrast to the asset
value plus "load" price at which
the popular open-end funds have

FEWER

fholder growth of 118% to a 1,492- etiological foible of following,
297 total, which number is over rather than countering, the market
double that of the second-ranking trend; of intensifying buying in*General- Motors, and which growth
rate is second only to that achieved

by Standard Oil of New Jersey.
While
repeated bond conver-

concurrently
bought.

been

The agency

last year, the total of

•

„•

sion and, to a somewhat lesser ex-

Street

proclivity is reaffirmed by the short interest position covering the month ended

cent record

crease

Industrial

quarter billion dollars under

offer

its

tors... and.... dealers

the

Boland,

are
.

one

"Tee

146%

Wm,

P. A "'

Current demand for- some steel

77./.

---Kf

in its

states

Members Midwest Stock Exchange

general Investment Business

"Here's

golf

score

are

chance

a
.

same

cut

and cut your

Continued

on page

We
'

are

-pleased to announce that

•

-J

;

time,"/ investors

advised.

AL A. HAIG
and

The New- York Stock Exchange

John J.

O'Brien

Co.

dis¬

withdraws

Bouton

have

joined

our

Trading Department

J. F. RFILLY &

CO., INC.

Murphy & Co., May 31.

St., Chicago 4, Illinois

bership of the late Leslie Harman
to James Morton-Smith will be

Teletype CG 2382

considered May 29.
Transfer of the Exchange mem-

.bfffhip °£ the lateOtartaEJfefrill to S. Robert
Weltz, Jr. will be

considered May 29.

FRANK I. McDERMOTT

Transfer of the Exchange mem¬

208 So. La Salle

7 /

;

solving May 31.
k
Jerome A.
Eaton, member of
the Exchange, retires from Batchker, Eaton & Co., May 31.
George C. Seifried retires from
McLaughlin, Cry an & Co., May 31.
from

Howard

with offices at

products is generating hard

ad¬

has announced the following firm

May 2t/ 1957 ""**

•

announcing the free

Exchange
Weekly Firm Changes

New York Stock

Cook Investment Co.

FRankiin 2-9700

■

This was 2 points belowr

average.

that it will be under $7 per

dozen of top quality

copy

changes:-

off

taxes at the

J. Sennott, Jr.

to conduct

companies, particularly in the Chicago area, it
already figured out the arithmetic and plumped

your

Announce the formation of

l.»*»

1947-49

of the

Morey D. Sachnoff

against high:. income
taxes with municipal bonds," the

1CT;.

points out,
for fatten¬
ing inventories as a hedge against the price boost. As a result,
steel shipments will go up a little next month.
••
The situation among steel users is their concern over just how
much prices will rise next July. They are trying to.get an inkling
from the mills on this, but nobody's talking for the record, this
trade paper declares. Some producers are thinking pretty big and
frequent reference is being made to the near-20^ wage cost in¬
crease coming up in July, but it adds, while there is some talk of
a price boost comparable to last year's average $8.50, the chances

municipal

»,*->

highs, the Federal Reserve Boaird reported. The de-1
output of durable goods and minerals. - * 7v *7
American industries turned out goods at the'

golf balls.

John P. Pollick

"""

•

are offering to £ach pur¬
of the tax-exempt munici¬

pal bonds

offer.
U

f'i

■

In the steel trade this week, "The Iron Age," national metalworking weekly, states that steel users are fighting the battle of
low inventories Versus next July's scheduled steel price increase.

Saffin & Co., 35 Wall Street, New
York City, underwriters, distribu¬

investment firm

Fred J. Cook

kind,

-■

believed

Against High
Taxes via Tax Exempts
what ~is

•-

•.

..Production of non-durafc>le goods advanced to a hew high,
/pn the other hand., The Board-Stated that output of textiles and
apparel changed Jiitle, ,in April,5 but-.production of other non¬
durable goods increased somewhat.• <
/.

Some

•.

production declined slightly in April from its re¬

;

first

2 points above April last year. '/
\
;
7
The production decline was a bit wider than is seasonally
normal for April, as a consequence; the Board's seasonally ad¬
justed index dropped to 145 in April from 146 in March. ;

existing shareholders,
channeling good values -to
■

- j,

the March level, but

fit of their

and,

;

centered in

rate

(as

fresh buyers.

222,900.7'

was

The Board said

several* types

grams

vertising
-

/•'

nearly half a million in¬
buying the openend funds at the annual aggregate
With

initial claims

The bureau further stated-that insured unemployment also
down, dropping by 31,000 to a total of 1,427,900 in the week
ended May 4. »
'■
7'V"
' • . /;;"•'

went

widely

vestors currently

terest as prices go up, instead of bonds,
chaser
d°wn toward greater value,
This

have

Tee Off

THE

the nation's most "populous"
Sophisticated observers know
corporation. With its stock selling
that the "insider" and professional,
in the "splittable"
140-190 area,
the giant corporation has never- no less than the amateur speculatheless since 1945 enjoyed share- tor and iqvester, commit the psy-

pany,

noted that seasonal drop-offs in the number of
initial claims were reported by 37 states. For the like week of

portfolios

have

from

asset

from

discounts

which

64,300,000 -persons

rose

situation in the week ended May 11, shows
that claims for unemployment insurance by newly Iaid-*off work¬
ers declined 13,700 to a total of 233,500, accordihg to the Bureau
of Employment Security.I
'
t

situation manifested in

sizable

employment

mid-April

63,900,000 in March, and compared with 64,000,000 in . April 1956.
Seasonal rises in agriculture, construction and food processing may

The employment

neglect of the closed-end

riod

representing his. ownership goes on undiminished!
,

;

push employment to a record 68,000,000 this Summer, exceeding
the previous high of 66,500,000 last August, according to Labor
Secretary James Mitchell.
/,
7':
:
r V

tificate

have

7'~7

1,000,000.

chases of closed-investment com¬

of * purchase pro¬
estimated by Arthur
Wiesenberger in his 1957 edition
"Stock of Investment Companies pub¬

to slightly under

1,100,000 units

■' In his current article,
Splits in a Bull Market," report- lished this week), it may be ex¬
ing on the definitely rising mar- pected that plans in addition to
Not to imply that they will be ket period of 1954 and-1955; Mr. MIP will be devised for the, pub¬
effective jrr.disabusing the public ^Barker finds that even in an ad- lic's similar accumulation* Hpfthe
of its persisting illusions, but we vancing
market increased divi- •closed-end companies;*; This will
note
some- important
additional dends are indispensable to a lasting afford the double-advantage of
items of realistic
evidence that increase in stock prices. His data closing up discounts for the bene¬

over

earlier estimates of

its

selling at 80.

for stock dividends:1 with the company's Presiorous'

output dropped

public housing dropped sharply. The FHA revised
1957 housing starts downward from about

month gain as

thrown on the market-place effect to information disclosed by the
And a good part of Philadelphia of the stock split through a new National Association of Investment
and Reading Co.'s annual meet- study by C. Austin Barker, man- Companies.
(
This investor selection marks an
ing, held in a hotel ballroom, is ager of Financial Research with
taken up with stockholders' vig- The Cleveland Electric Illumina- intelligent shift from the long pe¬
stock,

common

steel

week

last

fell 17% below last year and were at

rate higher than that
of all securities being bought un¬
der
that
technique.
While the
total number of plans in force in¬
creased

front

Index

Failures

;Although housing starts in April rose 11% over March, they
the lowest level for any April
since 1949.
Private housing accounted: for all of the month-to-

during the first

purchased

quarter at

industrial

the

Production

Business

prior period.
The average operating rate for the month of April was 89.5%, or
the lowest for any month since August of last year. Automotive
production continued to register a higher trend during the week
and the steel mills, as a consequence, benefited by-o slight rise in
orders for steel sheets. Further, the settlement of some labor trou¬
bles in the industry aided in raising automotive output 4% above
the week before and 17% over, that of the comparable level in
1956.
Electric power production also showed gains am the latest
week, rising fractionally from ,its 1957 low of the prior week and
4.4% above the level of a year ago.
-;v,
' v-'./v; ".■".VrY-.7

through news coming to hand .that
under
the
Stock
Exchange's

were

Industry

Price

84.2% of ingot capacity as compared to 86.7%.in the

Trade

Commodity Price Index
Auto

and

when the market

468.

Retail

Food

the lowest since

was

last February 15

stood .down

State of Trade

mechanics

owners

larger

publicly
i

;

directors,
a

the

have been
VALUE WILL OUT
minor factors. Totals of 10, 2, 5,
and 1 are the most popular share- 7 Our
long-time conviction that
foldings.
Holdings of half the value will in the long-run become
tockholders^ are riess
than *15
recognized in the market place de¬
shares
each.
Most of the new rives some additional.confirmation

these

why the "bon a n z a"
was V
The

Exchange Place, Jer*ey City

Dlgby 4-4970
'

^ *"•

HEnderson 4-8504

Teletype: JCY 215

v } 1J
j

Volume 185

Number 5640

The Commercial and Financial Chronicle

(2389)

Common Stocks

Companies

FREEMAN, JR.*

speeific- industries

.on

.7: 7-

Teachers

Insurance

Association.of America

•'*'

Annuity

;

and

stock

common

reserves.

■

7";

•;a

policyholders' funds have

forded

stocks.

Two

—

n ?

amendment

they

their

We
uy

can

years

fulfill

common
of

the

specifically de-

were

xxixtxabxutte

v,ui«u.u«c

previously.

One

these

the specific barring of stocks
of banks and insurance companies

proportionof;

o/ the pa^t

de„ds in each,

this

use

„7

ten
3

At^aeZ in;th<; bus*?®?s
te^^lp.sk>eks.quhlify
^

often-caused

ingi^changes

xitiuiuga

"ance company from purchasing
more than 2% of the
by in¬
outstanding
stock of a company.
creasing the
V
supply of sav- :
/
Maximum purchases of common
hreeman, Jr.
ings /-going ;
s^oc^s un(iGr the 1951 amendment'
into
eqtiity
7 *wete limited to the 1
capital. Before; these opportuni- Gf a
company's assets
ties can be fully achieved,- how- 0f' its
surplus.
This
ever, certain changes in the laws-stimulated
some stock buying and
relating to life insurance company / by the end of 1856 common
stocks;
economy

strong

valuations and selection of stocks

had

increased

foupd in. life insurance

years
an

io/u^

from

Accord-

r\„

following tto-

Yet

those might well be "the years of

com-1

^^jstics

W co^ae^ SfS;
considered.
Returns
will,
varv. of course,

riod used.

with any time

purchase
time

Virtually all studies in
indicate' that

'have

results

programs

companies

And

particularly Well

situated

benefit

from

AP.i;lsl«*

77's,at,ve <?han,rM Needed

uie

Most

the

life insurance company,
common stock purchasing is done
on some sort of dollar cost aver-.

best

cany ing

stocks.

common

Serreffateii

values

of for the life insurance industry in

the field of common stocks. As
trustees - of ; our 7. policyholders':

Reserves

funds» it is

our -responsibility to
take Jull. advantage, of our oppor-

A second"problem which needs

'But before the life companies

might-be

BiS

J_ /:

^ example would not have been
ttoited St«fa sto^-Cyrp,
for

common sense to recommend
a combination of these

year-to-year
:

;

•

invest"

^ Is n°t the aim here to recom- aglng basis ana any forcect. Stopmend a specific method, but to pmg of purchases.for a prolonged

The

life company's

ment in common stocks.

one or

dividends during the depres-

A1so,

this

situated.

oi me ieaa-

™ethod might also be suitable.
j? ^
Y^t=
Fo.r example, an approach which mT*ha8* of the stock
during the
entai*ed a capitalization of several b
would have tSmi ex^melv
£ear*'
or dividends would;
have

stock

lviost

ing stcel companies passed

:of course> :its

themselves'!answer.

find

very essence of any

accrued

common

me sieei siocks.

■£ /
11

qualification the life insur-approaches

ance

pe-

however,

long-term

,°f >«» fevprabte

average

S5ThKST WhSn''both'^idmS i

company portfolios.

commnv

annual return of 6.8%

importanceJ to/
fo%3HI
assets in the life insur-.

}4's.
'
Common;stocks ^Jiave^ been^ance

xur

through 1938 indicated

from

needed.

which would

stocks have1
in carrying value
been permitted for
many years.
Long-term trends in commonL ; in any one year are greatly modi^
u
f icd froiri the" Di'ewnt ^vsteiii of
stock prices and dividends have

the area,
; from eligibility.
The other was; favorable
the proviso restricting any insur-

sibility of
keeping
t h e

are

T"
of valuation to,devising a method
of preferred stocks

the

were

was

respon-

•

jwegentiaw

amount

Vears
going con7L '
savings cern concept, modifying the? vio- \
/ .'/r< lent
year-to-year
valuation
of

in .legislation

.
'.'Of selection.' The
pronumber of years a great
vides that stocks which are cur¬
of time
and effort has
chased must have paid cash divi-

necessary
into eqiuty capital.
\ v'v^:
The second reason for our inter-,
changes
est in common stocks is that
they in
should prove to be excellent
long- -' The

aiwii

provisions

stocks. In this J
also \

to do its

channeling

change

by in¬

comm.

third

investments

field

"which-appears desirable liere i«i
New York centers, oncthaproblem

n° matter What the

For

The life

economy

the

,IQni._onJ

Increase in Stock Purchases

limited

late

the

obli¬

of the oppor-'
tunities af-'

vestment

economy.

sufficient to offset any credit risk
in bond' portfolios might be entirely insufficient.
:
'V

concept
practice »of
.,

...

gation to their policyholders to take

advantage

until

underlies

markets

this

changes"underrprovisions It is only
interes?Stes
changes realistic to assume;however„that
method
currentlv
being there wiU ** ^ars in >the/future
term
investments
for
the
life
considered
for 'preferred
stocks when manY °f *he leading corncompanies and* their PoHcyfiold-;
provideS
im geimra!
that these vPanies
the county Will foirego
ers.
This has been true in the past
holdings be carried at values com ;a casb- dividend- for reasons of
as shown
by the very successful
Sfj asound financial .planning. jHWhen
records of companies domiciled in
average Of market Drices Accord
this is the case it will disqualify
states where common

•

Those ^charged with the
respon- ' rhained
constant
sibility for i the investment of 1940s. \V 'v: ; ' •

entire

ZlrtTto

aggressively fill'
7 the gap of permissible stock purchases from existing $1 billion
to allowable $4.8 billion. To help this come
about, Mr. Free- '
man
suggests several legislative changes are needed first—■
:
such as: better method of stock
valuation, stock selection,*
••

the

carrying virtually all assets with
fixed maturities at thew. "amor-

industries, but affect-.

siDility to the
share in the

investment officer proposes insurance firms

^' ;7v

'tlZ^

Based upon assumption of favorable results from
long-term
common stock
purchase program, and the economy's' need
for continuing supply -of
equity capital, teachers' insurance

•

Officer,

such-

depressed

needed.

which

fined to the

Investment

temporarily
* are

over-expansion of debt structures
has had devastating
consequences

For Life Insnzance
By HARRY B.

equity capital to remain balanced,
healthy and dynamic. In-the past,

Investments

portfolios
the first

few

tury, they r<
importance when/they

amounted
Mosf^' °^

Cesser of5%'
assets of one~half of surplus

ment° resides TSW^cover

a more reaMstic ^nationimethod,.

SL.rnrX3redsg1ndr elmonT moderate5 investment .In:common

as :

and;jS^d

tjme wereyhank, rdilroad,

public utiqty: StOCKS.^
-• !
ously specmcaiiy Dannea.
;
The Armstrong;, investigation in;
.,.Af this hoint the life insurance
New York
in
1905, resulted

verv

ranidlv in the nast few

1^' nriLri

paohH

n.t

W1U

VMM

nnnfrfhi,

P^ve -w

uie

west

w»-

our;

terests of /ourcompanies,

pol-.

i«>>comnanies^have "large amount S2
^i10n'
-®' Finns
ofJSs' icyholders and"ttieentire eoonumy.*.
stocks becoming
illegalgTuvi^g bbwei-^he ^mmon ^er-temppyanly market prices/vh
for the New York comnanies This
? ,yg power-in the common are of less importance than longer The other side of the coin is, of
A nrlrewx. Pn«nm* AJmitx,
l^isl^tion rented ^rom abused *stock area. For example, while range expected realizations. Since course, that these reserves might AlKireWf, rosner ACimUS
a

common

uncovered bv^the ^ifivestiffation

P^sent common stock holdings
tpt^;slightly, over $L billion, 5%
oI. the ^gets of all life insurance

uncovered

Insurance company stock holdings
m many cases had been used to

contfol.other

companies^some-

times for the financial gain of
si

After

stock

this

change in the law
holdings dropped in both
amount

to." total

assets.

reached

and

1928"

„'

••

; There

ac-

/ : r
addfres^- by Mrt w
Freeman beSociety, of 'LOMA Graduates
New
•

fore

York City, May 14? 1057. '.

,V"

just as fast as they
built up if stocks, receded to

depleted

Andrews, Posner & Rothschild,
Wall Street,- New York City, •
their prices of several years ago." on June 3 will admit Maurice J.;
Thus, reserves which now appear Cohn to partnership.
«

were

liquidate its assets at any one time,
write-downs during periods of

active

*
»

two

are

major

with

haxaI7

common stocks.
^

reasons

counted for only one-third of 1%;
why we in the life insurance comof assets. This general ratio repanies should concern ourselves
♦Frofn

Advantages of Stocks

they

their low point and

embarked

start in the field.

in relation:

have

companies al-

the write

common stock purchase programs,
others
have
made virtually
no

absolute

while many

rea^y

rs.
^

there is no expectation that a life
insurance company wiU have to

companies would equal $4.8 biU]ion>

The first

s.J

re-

i-«nul

lfttes to the economy. The economy needs a continuing supply of

f..

•"

.WE

tY *■

TAKE

PLEASURE

ANNOUNCING .THE

APPOINTMENT

' V

;

Si-

.I: '

•

/ERNEST, F; -JARVIS

f,'

'■

i\'E ARE PLEASED TO ANNOUNCE

J-

•

'■

THE FORXIATION OF

V -fV

•

-r

'' w"

* 'Si

♦.

(

'' ■"
v

•«*...

-r" .fk't-** •
—

-j *1 * 4 »

ii-ic-

;■-/ v:^?

'•-

7 "■ ■'

■"

.(w

^ .i Sk

DIRECTORS

;.v'

1
.

^.r,. v..

■*

/ *

/.;>^

;•7;/%;:'y

CLEVELAND 15, OHIO

Members, New1 York Stock Exchange/ *"

«*

-r

'v>

**'

•

*' "

•

'• •"'*•■"•■e.'/'v"

* t"

BoyBfori.Di'lili«rckr_'" //- Warren G. StefFcn

--r..

■_

•

^
,

fV*-f

***

ic-?v7:7=7wfSENEfrANaCOMI^Y/lJMtTED/:.

>.:-^/!
k'

■;?■/, r

"•;;;"

:u
"4

r r

votary

< •

«r

MEMBEWS'THE -TORONTO STOCK EXCHANGE
J

»•

,
•>-

hr:;7 <
.7.^; Jr'

Kt".

Jose|ftcF; Lcnnon vvjosqjlrlf. Tcm^^

,f-1

„

-i1
■

Edward L. Rickard

IV-*

M-.

"May 21r-iS)57'

? ">/ t'

—

7/<*' 'risr-^wAv-.'»9S7r-T':7
••/'rj;""r
■
^

•

"•
.

•

•'/

"j.

■

;

...

-i

.>■
'

;

.11

•

" '■

I..
,

*r'

^cktypc,CV;349v^

•

I
•

/•./•• •<

-t

.'fO

qf-oijir affiliated -companies
*'•"*''+»/ '*

•-

,y.

„

•/v

Financial Chronicle

The Commercial and
6

Thursday, May 23, 1957

...

(2390);

Our Current Monetary Policy:
City Bank of New York

Vice-President, The First National

—to extend

part of the national debt comes
due in too short a time.", 4 * ;* "f -

(2) cash budget's surplus

from the latter two;

;
•

changed into a deficit if one includes savings bond redemp¬
tions; and (3) the Treasury has failed to proceed with longterm financing in a modest way.
Offers cogent reasons for }

its

way

appreciate that monetary
policy is generally defined today
more
narrowly,
in the
special
sense
of
credit
policies admin¬
istered

a n

consciousness
the

the

dom

Re¬

System

serve

ments

security

institutions

many

'-i* f I

high, and Government

very

are

holdings have been reduced importantly

almost three years ago, and

the

over

years

months ago. />>*}'.&?■/
-

Current Investment Outlook

lengthening has formidabased on the in-,

led

brings in transactions through the
trust funds. If we went a step fur¬

sales

activity;
still firm, wages and costs are

demands for investment funds.

Public construction is in
tained

clear that

were ac-

Roy L. Reierson

companied by
a - r a p i d
,r>/
growth • of instalment- loans,
In

sus¬

uptrend which is likely to

persist for

t o mob iTe

still,

are

economic

Total

moving
upward,', and
the
is still in a tremendous
^investment boom.
The outlook,"
therefore* is for continued large

issue in./ mortgage debt,
background of the; andpeak-au-

the

require-^

1956

and

in; 1955

work..

economy

■

1953.

financing

huge

indi¬

seem

of the •forces which

still

bond

long-term

ments
at

groundwork for the/unpeg-^ led to a record *
ging of the bond market in 195.1>* i ri*e r e ase in
attacked the Treasury for offering
r eal, estate
3%%

thus

cate that many

laid

markets

ment

opposition,

prefer the cash consolidated ensuing mild recession of 1954, the
budget
over
the
administrative Administration is reluctant to take
budget as a measure of the infla¬ any action which might constrict
tionary or deflationary influence the supply of funds for the purof
Federal
fiscal
policy.
This chase of mortgages and state and

impor¬

tance of a free-

Federal

money

tionship of the public debt to the
Federal budget. Most economists

its

into

.
Present conditions in the invest¬

Debt

get into the rela¬

which

history.

of the Treasury continuously.

And here

had

has

tion

draining

and G series, are
out

genera¬

burnt

o¬

Re¬

Board.

Our

bonds/redeemable at the impressions in some quarters that, term./In 1955,./;fZ/f.*
option of the holder and assuredly price inflation is the means to booming resia cash equivalent. Redemptions of
/prosperity. Even Senator Douglas, dential. buiiu^;** JVv
savings bonds, particularly the F who more than anyone else had ing activity

Banks

serve

.v"

b u t/
the rest "of

billion debt has been get-*V

savings

by the

Federal

is the

Then there

'''

^ \'

Capital and credit market trends, the problems of the Treasury,
and tbe business climate, indicate to Economist and Banker A
Reierson no early easmg in bond yieldi, which may for some
time continue to-- fluctuate within
the fairly, high frange
established so far in 1957, and bank lending rates remaining /

brought witn
it tremendous
as terest cost that is required to
put: demands for
out long bonds, the injury to. the/credit5 both
$55 billion of ;; demand for home mortgages, and long and short

mature.

bills

the

York City >.*'x

the high marks reached some

ble

•

the Treasury

from

cash

ting shorter and shorter and that}/ The state of the credif, markets
Treasury
bill finance has been' today mirrors the vigorous ecoused more than ever before in our i'nomic
expansion'which . began

|f|

growth.
draw

' * "

•

accomplishments

remains that

fact

the $275

out from creeping
economic

' if'

j.: - \

bH-^.g around present levels in the months ahead. .The Economist
inr the "}/
points out that not only are demands for funds continuing
shape of savings notes have been / /
larger than the inflow of new savings, but outstanding commit-/
retired. These are by no means
the

inflation and spending, and
corollary of inadequate savings and stultified natural

there is

£■■

obligations;

demand

/negligible

spending and taxing, and asseverates that

revising Federal

Bankers Trust Company, New

y <

„

in the market. Meanwhile, $6

lion

can

bonds were, placed :

term Treasury

Vice-President and Economist .*

,
,

By ROY L. REIERSON*
J

billion long-*

In 1953 and 1955 $4

economic stability demands support from the inter-related
credit, budget, and debt management policies, Mr. Johnson
observes: (1) past eighteen months of creeping inflation has
come

part of the debt over

Distinguished banker examines some of the current critical
and fiscal problems. In pointing out that

;'_T //

put it

longer periods and gradually " to./ r
place
greater amounts
in "the
hands of long-term investors: "It
is clear," he said, "that too great
v

economic monetary

the President's -1953

State of the Union message

By NOKRIS O. JOHNSON*

Outlook for the Credit Markets

started

tration

piration—as

Appraisals and Prognosis

Eisenhower Adminisout with the as-

The

ment.
■

to come. It seems
long-term offerings

years

new

by state and local governments
will show- a sizable increase this

yeaO -;

Offerings .of corporate securi1956rthe sharp upsurge in busiT,T_
excessive
ness outlays on plant and equip- ties are expected to exceed their
ther and added savings bond re¬
monetary ex¬
exception of state pension funds,merit* was reflected in a substan- 1956 volume.Business, spending
demptions as an element of outgo, are urging the Treasury to supply tially higher volume of new cor- on plant and equipment in 1957
pansion. But
Norris Oliver Johnson
we
might see that the Federal more long-term bonds. In
we
are learn¬
the porate financing. Throughout as a whole is likely to be signifiGovernment
is
not enjoying
a
absence of a larger supply," yields bank loans soared to ever greater cantly above a year ago, and the
ing out of practical experience
that power to restrain credit crea¬ surplus on an inclusive basis but on long governments are out of Heights./}}.-// /;„/}•;}:./•//«..:higher outlays are unlikely to.be
restrain

tion

banks,

does

not

stable

For

one

there is

thing

in¬

creasing amount of money lending
outside the banks; people give up;
idle bank balances to get a rate
of
return on money substitutes.
Of

there

course

velocity

we can

these

But

limits

are

the

are

From the

policies have

power
effectiveness

the

mine

strictive credit policy. As a matter
of

fact, public debt management
directly on this money ve-

bears

locity business. When the Treas¬
concentrates

ury

short-dated

debt like Treasury bills,

it is in¬

viting holders of cash to

let the

Treasury turn their balances into
active

use.

The other way to

it is to note that the

issuing

look

Treasury

supply of highly liquid assets and

This

all

creeping

should

inflation.

term

have

power

instrument of undoubted

suffering from disuse.

policies/and longbond issues, we
two-year respite from

Reduction

for Debt

Need

Treasury

gained

chronic inflation. Over the last 18
months

credit

Reserve

modest large
here ;we' ment

long-term financing in
way,
recognizing that

1953-55, with a major surgical
operation on the Federal budget,
and dosages of restrictive Federal

One

could

meet

sustained ->re-

the

quirements for bank loans./ As a

/.'result,/ interest -rates in' recent
i / months, reached the highest levels
,: iria generation/
} —
.

that the need

argue

;fort

•:•••.*

for long-term Treasury

financing, / Recent M^et Fluctuations 1
is
increased by the lack, of.-any ^
+K "' /
:
# W
prospect of really sizable debt re-. ; Shortly after the start of this
tirement in periods of prosperity.": year, the credit markets evidenced
Certainly it would be hard to de- some relaxation of tensions. Con-

restrictive

turities due within
Can

the

Federal Reserve

one

year.

New

by Mr. Johnson before the
Conference
Board,
City, May 16, 1957.

Industrial

York

TRADING MARKETS

FLORIDA

SECURITIES
!

Bank, Insurance Companies,
i

policy itself is concerned, I believe

too

tive 'until

So far

index

Industrials

Treasury's

the

price

consumer

Bureau

become

Labor

restabilized.

for

surplus

optimistic. Revenues

seem

little behind esti-? demands resulting from large remates while military outlays are
demptions of Series F and G
running well ahead. The narrow-! savings bonds.
Also, the business
lagging

restraint

credit

after

the

fashion

leaning against

Federal

policy

of Federal

fluctuating

breeze.
But

Reserve

cannot

accomplish the
impractical to let
develop to a point where

the

other

are

cogent

Federal

and

pressure

J Florida's

Golden

Triangle

TRADING DEPARTMENT-

building. It would

the

,Treasury cannot

billions

COMPANY

the

Phone: Miami, FRanklin

3-7716

tnta]

Lme
Lf f e

dive«ity"be
.

-mak)r savin2s in_

may
approximate
oifhoiieh
here

stitutions

uses

sizabie

Likewise> the flow

these

insurance

last
too

expected

companies

and

;penglon funds may do slightly bet_
last

year,

and. time de-

/
about posits 0f , commercial banks will
some easIng m bond y,elds'
doubtless
show a
significantly

More r e c e n 11 y, however, the iarger rise this year.'Mutual savschool-!"011^ market has experienced re- -ings banks and savings and loan
volume of - associations, on the • other hand,
as well as,are likely to gain fewer funds

logical for inewe<? tightening. The
Government, .which;new issues, corporate

Federal

seem

give
of

the

escape

want

the time

can

the

rowing—by State

abso¬

shortage
that
precipitates
panic and depression. But we can¬
all

money

lute

err

credit. Of

money and

do not

the
from' absolute
economy

the

other

ernments.

eral

Treasury
keep rising.
Let

look

easy

that prices

ment

Instead the

that

and

the

should make

manage-

logic

borgov^

seems

Govern^
/

amends;,to the

str^ted surprising resilience, and therefore, • the total a m o u n t of
Ibusiness confidence has improved funds-flowing, from the major
At the same timer the rapid classes of savings institutions into
; worsening in
the Treasury's cash ^be :major long-term investment'
p raised complications.^^outiet^ may hot differ hrtportahfly
/Bond yields have adyaneed once
more

and

are

from 1956.
-

-generally close to
,

States and
.
_

debt

local

Federal

—

municipalities by dol..

ing Out gl antS-in-aid

available

tapped—through taxes

side and make access to the Fed¬

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

ma¬

not

IHVISTMMT SlCUflTllS

its

monthly maturities. And the
turities

shortage of

ALFRED D. LAURENCE

finance

o^f the year

and

course

monthly

outlays

means

TELETYPE MM51

®51

much'ter than

spending plans. One is:
of State and local '

urgency

government needs, as for

i^eit^ent^iSSor

coroo-

revievvi:////'.

reasons

whole task. It is

Invest in

the first few weeks

spending plans.

there

But
more

credit

eovern

new

assisted^ by s^^ni^tment ^

of
the margin of .surplus! news,-became more" mixed, bank
policy
will ing
between passive and active, would seem to call for a review loans
declined conspicuously in
that

assume

waver

Federal Reserve credit

Statistics

cash

Problem?

S ?ocat.

hangi^ts^nd larger net
^?e ^es Sbined demands^or

fiscal 1958 >as financing which had bfeerf^
forecast
in
the January budget} mg over the market at the turn
message
at $3 billion. It would of
the year was f accomplished
now seem
that this estimate was with considerable success, albeit

Ignore

man

and a moderate upturn in
housing activity is possible later
in the year. However, a resur-

The; rate, and the large volume of new

that it will continue to be restric¬

National

provement in the mortgage market,

®®tat|ansion ?h

...

gives the, community the right to
'An address

outstanding mortgage debt in 1957
is expected to be somewhat less
than in the "preceding year.. Scattered /signs, indicate some im-

creeping inflation has re¬
despite the resumption
g.
of th
residential building
credit policy. To
boom is hardly a reasonable exsee why, we have to look
at the
pectation
other
legs
of
our, tripod:
the •: fend,
from any standpoint of j trary to apprehensions prevailing - .F
.
*
,11^- inrrease in real
budget and public debt manage¬ practical convenience to the in the closing weeks of 1956, there
"™
ment.
Treasury, having $64 billion ma- ' was no increase in the discount >
the net

appeared
of

bills adds to the

disease.

the

sarily followed by the Federal Reserve in an inflationary environment; these poliices compelled the
commercial banks to/undertake

of monetary policy. Now
.' be attracted if another long issue
"prognosis" is a medical term that
is attempted. It would seem to
demands
prior identification of
me
appropriate to proceed with
the

know

re¬

financing or to adjust to levels
where broader buying power can

"prog¬

in the

created -v by

these pressures, finally, were the
policies of credit restraint neces-

give

nosis"

under-,

supposed

again, as we have in the past,
develop a tremendous boom on a
fairly stable money supply.
Fiscal
and
debt
management
can

title of my

pressures

debtedness into long-term_ obligatlons
improve their liquidity,
evep though .the additions.to..in-'
ventories and receivables are expected to be lower than in 1956.
Real estate mortgage credit rereductions in their govern-? mains the largest single outlet for
security portfolios in an ef- new savings, but the increase in

elastic.

plications to emphasize that i is fine for other borrowers but ;
credit, budget and debt manage¬ not so good from the standpoint of
ment
policies are inter-related. ,\a sound public debt structure and *
The analogy of a tripod suggests economic
stability,
r
.
*•*.,. V\ f
itself. Economic stability demands
At the moment, the government
support from the three points. The
bond
market
appears
ready to
economy cannot
hold ,steady; on
rally
briskly
if
the
Treasury'
one leg
very long.
-I /
again decides against long-term
remarks I
'

get out of money.

limits

fully offset by enhanced internal
financing. Furthermore, /another
boom in business were intensified substantial increas is in prospect
by rising costs, higher prices and in the plant programs of the pubdecreased
liquidity V of
business lic utilities, which tend to finance
and financial institutions in the a large portion of their capital ex-r
aggregate, and by a shortage of penditures in the securities marnew savings in the face of persist- t ket. In addition, some companies
ent demands for funds. Adding to *Pay desire to.fund short-term m-

dollar.
.

instead is running a deficit.
"line with the general structure ofV
Moreover, the
I mention these confusing com¬
bond yields and money rates/This
credit
markets

however

insure

the

among

vital,

bonds. Meanwhile, no
investor groups, with the possible

municipal

Continued

for purposes
on

page

'An address by Dr. Reierson before the
41st

22 cS',^

Annual Meeting

of the

'Bank Lending

National In-

Board',.'New York

While

demands

funds continue

bank ~ loans*

for

•

long-term

large, demands for
.shown
some

have

Volume

Number 5640

185

The Commercial and Financial Chronicle

(2391)
at The Treasury will not only haveLo
the: raise. substantial amounts of pew
strong upsurge a*year ago. Loans money irt the second' half..of the
to business registered a consider¬ year to cover its
"deficit, but, con¬
ably larger seaSohal decline in the " trary "to., earlier expectations, will
early weeks of 1957 than in thej„ have to come to market even be-..
comparable period of 1956, bor*- fore June 30.
Also, about $700
rowings over the March tax date million of Series F and G bonds
slackening in; recent

least

below

were

mands

months,

tinuing -impediments

comparison"., with

for

date

and

de¬

since

that

year,

trend

loans

been

have

this

last

bank

slower.

part,

to the sale standing commitments
of many
securities other than short-term institutions are very high, and
•Government ' - security ' holdings
obligations. 1
"
have
been
reduced
importantly
Implications for Interest Rates
over the years. All this
makes it
While trends in the capital and [reasonable to surmise that bond
credit markets, and the problems
jyields in the months immediately
of the Treasury, obviously have a
ahead
will
probably not move
crucial bearing upon the behavior below the levels
prevailing earlier
of interest rates, they cannot serve1 in
T957, when the outlook for

weeks. Thus bank managements in
months ahead will be
mo£p
interested in rebuilding;

•

mature in

May and June, and the
additional $10 billion of these se¬
curities ' outstanding, \ which
are

the

larger

repay¬

redeemable

m e

;

products,

petroleum* coal, chemicals, rubber,
public utilities and transportation.
On
to

balance, it. seems reasonable
conclude that the vigor, of de¬

mands

for

bank

credit

les¬

has

sened, reflecting presumably the
greater caution in inventory poli¬
cies -and the retirement of some
bank
of

loans

out

the

long-term issues.
Some

proceeds
v

further increase

bank

loans, but of smaller proportions
than

-1956,

seems

prospect'

maturing F and G .bonds a se¬
curity-, at terms - sufficiently at-,
tractive to encourage an
exchange- munity.
*
in lieu of cash redemptions. This
.Taking these intangibles into
expectation "has
contributed "-to account, it is difficult to foresee
some easing in the
prices of long- any important easing of interest
term Governments.; The
Treasury. rates in the months ahead. Defaces the. problem of devising .an "mands for investment funds are
exchange offering which will in¬ still pressing against a limited
duce holders,to convert, without
supply of savings,- the financing
,

at the same

time/contribufing to

greater, adjustment Jn
Government

prices

bonds than .may

calendar

ap-;

presages
a
reasonably
large and continuing flow of new

Uhe

balance

pear

-the.

the

debt

Credit

least

effect,
bond

to•

extent.

some

continue

fairly

high

fluctuate
range

credit

„

warrant

right

funds

ings

from
have

the

high

some

the

easy

pronounced

adoption of
credit^ policy
.

calendar year is normally a period '*
loan expansion, and demands '

Tills

will be augmented by the continu--

ing

acceleration
of
income
tax
payments.
seems

reasonable

loans

the

corporate

Thus,

expect

latter

to register at least
seasonal,advance.-. g...

Hutton

With Keller & Co.
BOSTON, Mass. — C. Bertram
Currier has become affiliated with
Keller & Co., 31 State Street. He
was

recent

previously with T, R. Alcock

Co.

picture-in
progressive

recent

solicitation of an offer to buy any of these Shares.
<

normal

a
-

1,050,223 Shares

months

deterioration

•

International Business Machines

is
of

the

Treasury's
.cash
position.
Heavy cash drains arising out of
the

Suez

growth

crisis

and

the

}7;V;\;■ jCapital Stock:

rapid

defense outlavs have
been compounded by
substantially
increased redemptions of savings
bonds

and

attrition

sharp

increase

•

>y;

{Without Par Value)

■

Fights, evidenced by subscription warrants, to subscribe for these shares are being issued
by the
Corporation to the holders of its Capital Stock, which rights will expire at 3:30 P.M. New York

maturing Treasury
obligations. Adding to these diffi¬

.yj

Time

June 10, 1957.

culties is the fact that the Federal-

budget is not showing
adequate ! to meet this
cash.

surplus

drain

Subscription

Net cash redemptions of savings
bonds in the first four months of

1957

totalled

about

twice

period

same

over
as

$l1/2

much

the

The several underwriters may offer shares of

Moreover,
in the latest
Treasury refinancing
operation, when 3V2% certificates
3%%

ana

notes

offered

were

02acirPShare
2$e

billion,

a year ago.

Capital,Stock at prices not less than the Subscription

Price set forth above (less, in the case of sales to dealers, the concession allowed to
dealers) and not
more than either the last sale or current
offering price on the New York Stock

is greater,

ever

plus

an amount

Exchange, whichequal to the applicable New York Stock Exchange commission.

"exchange
for
a
$4.2
billion
maturity, cash attrition soared to

a spectacular
$.1.2 billion, or 29%
pf the securities held outside the

Federal
an

18%

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

Reserve,

average

for

compared with
attrition rate of 16-

other

recent

refinancing

operations,

the
latest
attrition
would presumably have been even
•larger had not substantial pur-chases of the maturing issue been
made for the Treasury's invest¬
ment accounts.

Finally* to add to
Treasury's debt management
problems, most of the exchange
the

for

was

the

shorter-term

certifi¬

MORGANj.OC
STANLEY &

•

■
,

•
f

DILLON, READ & CO. INC.
SMITH, BARNEY & CO.

THE FIRST BOSTON CORPORA TION

WHITE, WELD & CO.

KUHN, LOEB & CO.
BLYTH &

CO., INC.

cates; the market clearly indicated
-its lack of interest in the mediumterm notes.
.

Assuredly,
increased
redemp¬
tions of Treasury obligations have
helped provide funds for the large
volume of public offerings and di¬
rect placements so far this
year.

However,

growing share of the
burden created by sustained
high

cash

the

GOLDMAN, SACHS & CO.

HARRIMAN RIPLEY & CO.
Incorporated

GLORE,

&GRO
FCO.

KIDDER, PEABODY & CO.

•

LAZARD FRERES & CO.

LEHMAN BROTHERS

have

our

been

MERRILL LYNCH, PIERCE, FENNER & BEANE

Treasury, and recent develop¬
graphically illustrate the

difficulties confronting the Treas¬
ury in an investment boom, when
the*- Government

with

m u s

other

F. S. SMITHERS & CO.

economy
shifted to

STONE &

WEBSTER SECURITIES CORPORATION

ments

compete

CO.

requirements in

appears

EASTMAN DILLON, UNION SECURITIES &

actively

borrowers.

May S3,1957.

•

■

Company

(Special to The Financial Chronicle)

«-j.

*••; A new factor to enter the finan¬
the

nor a

the

South Spring Street.

the

Treasury's Dilemma

cial

offer to sell

ANGELES, Calif.—Walter
Lynch has been added to the

623

Reserve

bThe offer is made only by the Prospectus,

out¬

LOS
N.

staff of E.

bank

half, of

year

The

announcement is neither

■V'-.-'v:-'"'

•

prices," inventories, and ."
business activity in general. How-~.
ever,
the
second
half
of
the
of

moment,

evidence

course

the

sag

(Special to The Financial Chronicle)

assets..

and

E. F. Hutton Adds

the

the ratio

Federal

been

pressures

time

Moreover, member bank borrow¬
banks

the

months ahead.

expan¬

risk

capital

activity

ness

interest

at
hand to suggest a decline in busi¬

cies continue

rates.

however, there is

within

sharply, and loan

and

that'

established

sion has made inroads

markets

interest

the first four months of this year.

reduced

conditions

easing

could

-the guess here is
yields may for some

steady
of

climate.- Should business
prospects
take
a
more
bearish tufri, -this
would presumably be reflected in

bring
some
further adjustments
in
yields, particularly on Treasury
bonds, but the market appears to
have anticipated < such measures,
at

the

expenses

rates alike are, of
course, respon¬
sive to changes in the business

addition, bank lending poli¬
generally restrictive
Loans
offerings, business expectations are
are
near
record
levels,
generally favorable and credit bank holdings of short-term
policy - continues firm.
Treasury obligations have been

compatible. with the Treas¬
year. ~
Another round of tax borrowing ury's debt management objectives.
However, it seems ^evident * that,
may be anticipated in June,, but it
; i. Institutional
investment condi¬
until some easing occurs in busi¬
seems likely that, as was the case
tions also seems to argue against
ness sentiment and in the investin
any appreciable decline in* bond
March,} the volume of tax
borrowing will be smaller than it„ ment climate, the Treasurywill yields. Not
only are demands for
was last year. The
pattern of bank* continue-to face
large cash attri¬ funds continuing larger than the
lending in the second half of the
tion on maturing issues and con- r inflow of new*
savings, but out¬
year obviously depends upon the-'
for

lengthen

with

the operating

banks, may be ex¬
pected
to
operate
against
anyearly weakness in lending rates.

institutional investment practices,
and
the fluctuating
expectations
of the business and financial com¬

commercial

pects the Treasury to offer holders

embarking upon an ag^
lending policy. All thi^

combination

rise

metals " and

liquidity

than, in

gressive

basis for definite forecast. bond
prices was marked by ex¬
demand, pose a Even if demand and supply condi¬ cessive optimism.
ments this year by seasonal bor¬ further threat to the
Treasury's tions in the credit markets could ; At the same time, there is little
rowers, such as the food, liquor cash position.
Finally, next Aug¬ be -appraised within reasonably prospect over the near-term of a
and tobacco companies and com¬ ust and October the
Treasury5 accurate margins,
their
impact resurgence of inflation that would
modity :dealers. However, • some faces the refinancing of $9 billion upon Security prices and interest contribute to increased credit
pres¬
lessening of borrowing pressure- of
maturing
marketable -issues rates, as recent developments have sure arid to the advances of interest
seems
evident also in so widely, held outside the Federal Reserve- shown, may
vary
greatly with, rates to new high levels. Aggres¬
The
diversified a list of industries as
financial
community ex* "credit policies, bank lending and sive efforts by the Treasury to
reflects

DEAN

WITTER & CO.

The Commercial and

Co.—Memorandum—Milwaukee Co., 207 East
Milwaukee 2, Wis. Also available are
memoranda on Kellogg Co. and Nekoosa Edwards Paper Co.
Atlantic Refining Company—Analysis—Gude, Winmill & Co.,
1 Wall Street, New York 5, N. Y.
Chemical

Ansul

C □ M I N G

Street,

Michigan

Dealer-Broker Investment

1957

...Thursday, May 23.

Financial Chronicle

(2392)

EVENTS
Investment Field

Company—Report—Loewi & Co. Incorporated,
Street, Milwaukee 2, Wis. Also available are
of Nekoosa Edwards Paper Co. and Mountain Fuel

Bergstrom Paper

225 East Mason

Recommendations & Literature
It is understood that
to send interested

Are

Mutual Funds A

firms mentioned

the

analyses

Supply Company.

parties the following literature:

industry

Investment

Good

—

area

served—Utah Power

Salt Lake

(No. 26)

—

View

Canadian OU

Monthly investment letter

pany,

Fisher

North

study

and three hold¬

;

•

;

■

.Parker & Redpath, 729

Data

—

Cement—Bulletin—Joseph Faroll & Co., 29 Broad-

are

Oaks

—

Report

;-j"■

;

annual

outing at

;

Investment Dealers' Association
of Canada Convention at Jasper

Alberta, Canada.

Park Lodge,

•'

Ohio)
Cincinnati

Municipal
Bond
Group annual: spring

Dealers

(Cincinnati,

1957

13-14,

June

4'/party at Sheraton Gibson and
the Maketewah Country Club. '

the

June 14, 1957
*

(New:York City)

Municipal Bond -Club of New
York annual field day at West-

Country Club and Beach

Chester

Club, Rye, N. .Y.

June

14, 1957

(Philadelphia, Pa.)

* '

V; of

same

issue are data

favorably situated stocks.

C-

Analysis

—

June 18,

Peabody &

June 19-29, 1957

•

Singer, Bean & Mackie, Inc.,

:•/

(Minneapolis-

St. Paul)

!
•

Club annual
outing and picnic with cocktail
party at Hotel-Nicollet June 19

Twin
r

i ]
— Merrill Lynch,
Pierce, Fenner & Beane, 70 Pine Stwct, New York 5, N. Y.

Analysts, Inc. annual outing at
Westchester Codntry Club. '
''1

•

■

•

1957 (New York, N. Y.)

York Society of Security

New

'40 Exchange Place, New York 5, N. Y.
Sangamo Electric Company—Analysis—Harris, Upham & Co.,

delphia annual outing at" PhilaCricket Club. - - ; v , / (

X" delphia

„

-120 Broadway, New York 5, N. Y.
Scott Paper Company — Analytical brochure

—

Street, New York 5, N. Y.
White Motor Co. and a list

Co., 17 Wall Street, New York 5, N, Y. ■«.'
Permutit Company

Investment Association of Phila-

Corporation—Analysis—Western Securi-

Francis I. du Pont & Co., 1 Wall
Also in the

and

«•

City

Bond

all day sports

program

the White Bear Yacht Club,

White Bear Lake,

•

Minn. June 20.

(Philadelphia, Pa.)
/. Investment Traders Association
i:. of. Philadelphia, summer outing
June 21,; 1957

Fifteenth Street, N. W., Washington
a memorandum on General Fire-

NSTA Notes

•

OF NEW YORK

ASSOCIATION

SECURITY TRADERS

.The STANY Glee Club

Friday/June 7, at the Belmont Plaza Hotel.
reservation should be made as soon as
possible with Murray Barysh, Ernst & Co.
annual dinner dance

SAN FRANCISCO SECURITY TRADERS

■

June 28,

ASSOCIATION5
;

the Carmel Valley Inn.
charged $25, which will help pay

Annual Spring Outing on June 7, 8 and 9, at

Below is the schedule of events

;

planned for the party.

Club, Ithan, Pa.

1957 (New York City)

York annual outing at Apawa-

mis Club, Rye, N. Y.

June 28,

Club,

Investment Association of New

part of the expenses.

V;\ :t'

1957 (Philadelphia, Pa.)
Philadelphia Securities Association annual outing at the Overbrook Golf

•

.The San Francisco Security Traders Association is having its
Each attending member will be

Country

June 21,

that it will hold its third

announces

Whitemarsh

Whitemarsh, Pa.

As attendance is limited,

Royal Dutch Airlines

Detroit

Club

11-14, 1957

June

;

—

American Marietta

"KLM

.* v

(Detroit. Mich.)

the Orchard
Lake Country Club. •

bulletin

ties, 1 Exchange Place, Jersey City 2,. N. J. i.;, „ t
Elevator Co. — Data in current issue of "Gleanings"

5/D. C. Also available is
! proofing Co.
•-'*

Banks, Brokers, Traders—

Plaza,:

summer

in the same bulletin are data

Pacific Power & Light Co.—Memorandum—Kidder,

Whipple & Co.; 135

Company—Report—Hubert J. Soher & Co.,
1,155 Montgomery Street, San Francisco 4, Calif.

■

11, 1957

Bond
*'

Wall

Herbert E. Stern & Co., 52

Otis

Williston & Co., 115 Broadway,
.v jNew York R, N. Y.
X/v;.
.■»;/
, ■■+'* •"
American Machine & Metals Inc.—Memorandum—Auchincloss,

—

! /
Company—Analysis—Boenning & Co.,
1529 Walnut Street, Philadelphia 2, Pa. Z ./ v r: Z;'; v
Northern Pacific—Bulletin—Bache & Co., 36 Wall Street, New
Yoi-k 5, N. Y. Also available are bulletins on Atlantic Refining and Emerson Electric and an analysis of the Canadian

American Can—Analysis—J. R.

an-

•

1: Market.
/
/ •
Northwest Production

General Telephone

third

% / v

June

Missouri Public Service

invest¬
Co.,* 120 Broadway, New York 5, N. Y.

Mickle & Company, Bank of
Southwest Building, Houston 2, Tex.
/ •
I

•

Somebody Wins.—A positive approach to capitalistic

Abbott Laboratories— Analysis — Bacon,
-South-La Salle Street, Chicago 3, 111.

mont

—

New York 6, N. Y. Also available in the same
data on Giant Portland Cement Company.

'Memorial

'investors—Harris, Upham & Co., 120 Broadway, New York
5, N.
Also available are reports on Stone & Webster, Inc.,
The Texas Company, and Vick Chemical. Company. •

way,

■

Tex.'

Lone Star

V/'jthe petroleum industry — Distributors Group, Incorporated,
:63 Wall Street, New York 5, N. Y.
;
Pocket Guide—Discusses 20 stocks most favored by institutional

New York Glee Club

Eppler,
Fidelity Union Life Building, Dallas

Services, Inc.— Memorandum

Street, New York 5, N. Y. Also
Combustion Engineering.

•.

Seattle Golf and
...

/ nual dinner dance at the Bel-

showing an up-to-date com¬
parison between the listed industrial stocks used in the DowJones Averages and the 35 over-the-counter industrial stocks
used in the National Quotation Bureau Averages, both as to
yield and market performance over a 13-year period —
National Quotation Bureau, Inc., 46 Front Street, New York
4, N. Y
Petroleum Investor—Bulletin covering recent developments in

Security Traders Association of

Co.

Diversified

Kaiser Aluminum

Over-the-counter Index—Folder

Corporation.
/

It. Grace

Guerin & Turner, Inc.,

—

■

Investors

Kinnon, 11 Wall Street, New York 5, N. Y. , Also available
is a report on International Harvester Company.
Outlook for 1957
Market outlook —Dean Witter & Co., 45

wasnj
spring

1957 (New York* N. Y.)

June 7,

Co.—Memorandum—Glore, Forgan & Co., 135 South
Street, Chicago 3, III.
^
Ilurd Lock & Manufacturing Co. — Memorandum — Wm. C,
Roney & Co., Buhl Building, Detroit 26, Mich.

City bank stocks—Laird, Bissell & Meeds, 120 Broad¬
way, New York 5, N. Y.
Oil Industry—=Survey with particular reference to Continental
Oil, Ohio Oil, Phillips Petroleum, Sinclair Oil, Standard Oil
of New Jersey and Standard Oil of Ohio—Thomson & Mc-

card memorandum

—

Analysis

La Salle

York

Wash )

June 7,1957 (Chicago, Dl.) - ^ v!
Bond Club of* Chicago 44th annual Field Day at the Knoll/ wood Club, Lake Forest, 111; ; ;

Corporation.

—

at the

party

MacinS

International Telephone & Telegraph—Bulletin—Purcell & Co.,
§? 50 Broadway, New York 4, N. Y. Also available is an analysis

Yamaichi Securities

Shoe

•

Seattle Bond Chibr annual

Corporation—Analysis—Muir Investment Corp., 101;
Marys'/San Antonio 5, Tex. Also available is a
of the outlook for Automotive Air Conditioning and

Service Company

1957 i Seattle

Mav 24

Ilubinger

Co., Ltd., Ill Broadway, New York 7, N. Y.
New York City Bank Stocks—First quarter analysis of 13 New

". '

■

Lamont, .26 -

Analysis ^-H. Hentz & Co., 72 Wall.
Y.
*•
— J.
C. Bradford & Co., 418 Union
Street, Nashville 3, Tenn.^ '
,
,;
Hertz Corp. — Analysis — McManus & Walker, 120 Broadway*
New York 5, N. Y. Also available in the same bulletin is ail
analysis of Hycon Manufacturing Co.
-"vw,/

Street, West,

Montgomery Street, San Francisco 6, Calif.

Street, New York 5, N.

i "
—

;

Jesup

N. Y.

St.

General

ing companies—First Boston Corporation, 15 Broad Street,
New York 5, N. Y.
Fire & Casualty Stocks—Bulletin—Laird, Bissell & Meeds, 120
Broadway, New York 5, N. Y.
v ;
Japanese Stocks — Current information

Inc. and Pacific Coast Company.
Co. — Memorandum —

the Frigikar
Gas

& Co., 20 Broad Street, New York 5, N. Y.

ment—McDonnell &

VX,

■

Governor

Frigikar
r

Indexes—Bulletin—Smith, Bar¬

Commercial Bank Stocks-^Analysis of 39 banks

Also available.is

Collier^Publishing

Broadway, New York 26,

Burnham and

—

50 King

Young, Weir & Company, Limited,
Toronto, Ont., Canada.

;

Statler. 1

(Baltimore, Md.)

_ _

Companies^—Analysis of Imperial Oil, B. A. Oil,
and Canadian Oil Companies — McLeod,

Chemical & Ethical Drug Price

■

May 24,'1957

...

Comments on Atomic Fund's stock

McColl-Frontenac

ney

Analysts at the Hotel

'i Bond Club of Baltimore annual
Co.—Memorandum—Oppenheimcr
Outing at the Elkridge Club. ; f
& Co., 25 Broad Street, New York 4, N. Y.
,V v , -K
L. A. Darling Co.—Memorandum—Aetna Securities Corpora¬
May 24, 1957 <Columbus. Ohio)
tion, 111 Broadway, New York 6, N. Y. '
'■/
Columbus Stock and" Bond Club
Diebold Incorporated —Bulletin —De Witt Conklin Organize;
tion, 100 Broadway, New York 5, N. Y. Also available are ;
' • annual golf; ohtmg . at , the Co^
1% bulletins, on Eastern Industries, Inc., Strong, Cobb & Com-_ | ;/lpmbus Courttr^ Club. ^^
: ;-

Company,:15i Broad; Street, New York 5, N. Y. Also avail¬
able- is -current Foreign Letter.. /" *
: *" - '" '
'

;

1957 (Cleveland, Ohio)
National Federation of Financial

•

dividend, British buying of Canadian uranium, Metal Hy¬
drides, Inc., Kerr-McGee Oil Industries,, Inc., General Tire
and Rubber Co., Dominion Magnesium, Ltd., and Lindsay
Chemical Company.. Revised Reactor Diagrams now avail¬
able—Atomic Development Mutual Fund, Inc., Dept. C., 1038
30th Street, N. W.,v Washington 7, D. C.
Rurnham

Chicago 4, 111.

Analysts Societies.

May 20-23,

Inc.—Memorandum—Richard Bruce & Co., 26
N. Y.
, '
'

Broadway, New York 18,

Crow ell

forth industrial opportunities
& Light Co., Dept. K, Box 899,

City 10, Utah.r

Atomic Letter

Systems

Craig

Booklet- setting

Area Resources

Lit Salle Street,

South

Analysis of mutual

—

ment

(Cleveland, Ohio)

Convention of Invest¬

National

Blaw-Knox

Foresight Investment Advisory Service, 70
Wall Street, New York 5, N. Y.—Paper—$1 per copy.-

fund

May 19-23, 1957

■

Corporation—Bulletin—Mellott, Thomsen, Pitney
& Co., 29 Broadway, New York 6, N. Y. Also available is a
memorandum on Basic Inc.
i>;-A.'XX:
Cities Service Co.—Memorandum—The Illinois Company, 231

he pleased

will

•

;* ' /:

1957 (New York City)

Syndicats annual -outing at the
Country 1 Club,
Glen

Nassau
*

Midwestern Instruments

FRIDAY, JUNE 7:

with

7:00-8:30 P.M.—Dinner will be served in the main dining room.
*

9:00-????
Prospectus

—-You

are

request

your own.

;

DEPENDABLE MARKETS

SATURDAY, JUNE 8:
7:30-8:30 A.M.—Fizz Party in
*

Bought

—

Sold

the main bar, followed by breakfast
convenience.
will depart for the Pebble Beach; Golf

at your own

9:00 A.M.—Golfers
Course.

1:00-2:30 P.M.—Barbecue luncheon

and

free

beer will be

adjacent to the pool.

TROSTER,SINGER & CO.
Members: N.

...

served
...

2:00-5:00 P.M.—Siesta for those who can't stand the pace.

7:00-8:00 P.M.—Cocktail party

Security Dealers Association

in the main bar.

8:00 P.M.—Dinner.

74 Trinity Place, New York 6, N. Y.

Cove, Long Island, Hew York.

depart from the Russ Building equipped
bar for those who wish a little libation.

2:00 P.M.—Buses will

SUNDAYrJUNE 9:
r

--"V*

8:30 A.M.—Breakfast at your

-t

convenience.

•

1:30 P.M.—Buses will return to San Francisco.

185

Volume

Number 5640

The Commercial and Financial Chronicle

(2393)

able to earq 19.2% on
$1,071,- and maintained by a steady ad¬ have entered the equity market.
OOO'jOOO of "capital erftployed." Ttot vance in employee* earnings and % From theforegoing you. will
1956, however, -; the comparable the' benefits of the company's
perceive that General Electric has
By IRA V. COBLEIGH
percentage was $15.3% on $1,451,- "Better f Living
ProgramFor been advancing steadily in the
900,000.
(Of this, $300 million example, in 1939 the average GE best tradition of
'! Enterprise Economist
enterprise capi¬
represented new capital injected employee earned .(with benefits) talism.. It has
invested over $1.4
in May 1956 via public sale Of about;;
-f.!
Profit is its most important by-product.
$2,026 per year. ^ In 1956, billion
in
new
facilities
since
debentures.) For 25 other major the average position at GE was World War
II, and will spend $185
-One (Of the best-known, and search and production. The com¬ electrical manufacturers, however, worth over 2 Vt times as much per million more this year on
plant
this return on capital
employed year including a broad package of addition and improvement. It not
jDest run, of the giant corporations pany is presently at work on
of
America is General
Electric. nuclear propulsion of aircraft and averaged only 7.3%. Which indi¬ pension, insurance, vacation and
only supplies about 25% of the
By all the customary criteria of submarines; radar defenses against cates that, while there was a nar¬ economic security benefits. There's total output of electric
equipment
/
or
corporate ex¬ aircraft
missile; and missile rowing of the profit margin in also a stock purchase plan for key manufacturers in the U. S..
but,
the industry, GE was
cellence
in¬ guidance
and
At the end of 1956, t h r o u g h International General
doing better personnel.
gunfire
control
than
its
competitors.
Now
the 18,000 retired employees were re¬ Electric ' and
telligent
e xequipment.
Canadian
General
was

—

pansion

For

and

the

growth, rising

oped

earning

900

power,
a i n e d

timing,

sus-

high

solvency, div¬

future, GE

motor that

has

can

devel¬

operate at

degrees

vices

Fahrenheit; controls,
circuit and switching de¬

for

zon"

automation, and "bora(developed
in
1956), the

idend durabil¬ hardest

man-made material, that
quality! can withstand a temperature! of
diversity 3500 degrees Fahrenheit (a dia¬
of products^, mond will "burn" at 2000 degrees
sound engi-' Fahrenheit). In addition, company

ity,;,

and

and is developing a lot of other com¬
maginative ponents which can withstand heat

neering
i
U.

ira

Cobleigh

research, mer¬ and atomic radiation, and thus
chandising and serve in missiles, rockets, satellites
V- \:f
know-how,- effective and reactors.

advertising

•

This

customer,'[public and labor rela¬

swift

and

sketchy attempt

tions, consistently competent and to catalog GE activities and prod¬
patriotic presiding officers leading ucts will serve to show both the
effective echelons of management variety of the fields in which the
through the years—by all of these company is at work, and the mag¬
criteria
General
nitude and importance of its end
is
Electric
an
eminent company, and its common products.
From Snorkel tube to
stock

elite equity.

Perhaps the best approach to

swift portrait of GE is an historical
Of the 5.600 companies now

one.

engaged in electrical manufactur¬

ing in

the

United

States, GE is,
of course, by far the
largest. It
was
among the earliest, too, and
its rising fortunes have followed

Stratosphere,
pitching.
And
of

the

now

having viewed

there
some

merchandise, let's turn to

earning

statement.
18% to

sales moved up

For

1956,

all
time, high of $4,'090,000,000. They
are
moving ahead. still further
a

new,

this year, and bid fair to advance
amazing fidelity the sales of by roughly 15%^ That would car¬
energy by electric utilities in the ry sales above $4,6 billion.
with

United

States.

the

past eight

sales of electric energy have

years,

doubled—and
General
;

have

sales

Electric.

Beginning

for

with

dynamos

This
gross

report
leads

and

projection

logically

some

comments about profitability. For
the
year
1954, General Electric

management of GE is acutely con¬
scious of this earning-on-capital

ratio, and because intense atten¬
tion

ceiving

Electric, it is

neered in

the

pensions.
GE has pio¬
on-job training, as well
grants of university scholar¬
ships ; to
encourage
top
grade
as

is being given it, all along
line, some improvement may scientific training.
be expected for 1957.
If, for ex¬
Stockholders in General Electric
ample, the 19.2% ratio (of 1954)
have, year after year, found their
were
achieved
on
the
existing investment a
rewarding one. Divi¬
invested capital base, then 1957
dends
have
been

the

;

net

would

paid

advance \ over

30%

without

free

major supplier to

world.

coincidence that prog¬

at General Electric

ress

ership of

series of most compe¬

tent and public spirited men who

best be described

may

statesmen

Young,

—

hydro electrically, elec¬
run trolley
cars, or
plants, and bulbs for
commercial and industrial

interruption since 1899—58.

years.

years,

ure

of sustained corporate success
been due to effective person¬

common

stock

was

the

sole capitalization at GE. In
1956, however, $300 million
of
nel
relationships. - This has not 3%% debentures due May 1, 1976
been easy, for GE has to deal with were
publicly sold and this debt
90
separate unions;
and
other .now precedes the 87,162,264 com¬
companies in electric manufacture mon shares now listed on NYSE
has

amount of investment in

research,
expansion, and modernization: (1)
by earning customer acceptance
of improved product values and
of

price levels adequate to main¬
growth and progress; (2) by
improving methods of operation;
and (3) by
minimizing the dis¬
tain

have,
on
occasion,
experienced ;and selling currently at 67. The
long and costly strikes and work present dividend is $2 affording
traction and temporary costs in¬
stoppages. At GE, however, un¬ a yield of 3%. For the past five
cidental
to
expansion and im¬
der the shepherding of Mr. Lemuel years the cash
payout has aver¬
provement."
R.
Boulware, Vice-President in aged 68% of net. GE is widely
charge of Public and Employee owned, not only by individuals,

Relations, labor problems
have

been

handled

with

seem

wisdom,

but is found in most portfolios

investment trusts,

endowed insti¬
Friendly and tutions, fire and casualty insurance

vision, and fairness.
cooperative
relationships
with companies, and such savings banks
personnel have been, developed and life insurance companies as

Lewis W. Poole

SALT
Lewis

LAKE

Poole

This announcement is neither

-home,
lighting, the GE product list has
and

where

diversified

includes

Utah —
conducting a

securities business from offices at
2479

Glenmare Street.

any

of these Bonds.

$70,000,000

liquid cooled generator

260,000

nor a solicitation of an offer to buy
offer is made only by the Prospectus.

offer to sell

almost

everything that makes electricity,
and almost everything that elec¬
tricity runs. For instance, it now
turns out

The

kw.
capacity — big
supply the residential

enough

needs

power

of almost

million

people. General Electric also has
a leading position in atomic
power
installations. GE circuit breakers,
,transformers, high tension trans¬
mission lines

juice

into

cables

tens

American

pliances

and

take

where

over.

Refunding Mortgage 4V2% Bonds, Series J

the

millions

homes

send

Dated May 15,

of
ap¬

Due May 15, 1091

1057
Interest

electric

payable May 15, and November 15, in New Torlc City

"Snooz-alarm" clock to wake you

radio to bring you eye-open¬
electric toasters, coffee

up, a

ing

news,

makers

and

stoves

—

breakfast

refrigerator-freezers to bring

you;

Price 101.755% and Accrued Interest

cold milk and orange

juice, meats,
vegetables; fluoresceins
double
light
output,
"All

fruits and
that

Weather"
that

air

room

either heat

conditioners

cool; "Disposall" garbage destroyers, "Mobil
Maid" portable dishwashers, Fil¬
Flo

ter
>

can

clothes

sorted

amuse

you,

inch

washers, and

sets

weighing

be obtained from only such of the undersigned as may legally offer
compliance with the securities laws of the respective States.

may

these Bonds in

as-

educate

starting with

portable

Cojiies of the Prospectus

and

nine

but

13 lk

MORGAN STANLEY &

pounds.
In

boats,

locomotives, tug

subways and, in 1956, GE
great strides in gas turbine

made

power.

unit

A single company-designed

YTH& CO.,INC.

DREXEL & CO.

GLORE, FORGAN & CO.

the

EASTMAN DILLON, UNION SECURITIES & CO.

GOLDMAN, SACHS & CO.

in a Liberty Ship,
Sergeant,"
increased
speed of this vessel by 80%

and made it
cient

cargo

one

KIDDER, PEABODY & CO.

LAZARD FRERES & CO.

General

MERRILL LYNCH, PIERCE, FENNER & BEANE

powered the world's fastest bom¬
er;

and

the world's fastest fight¬

STONE &

WEBSTER SECURITIES CORPORATION

and will soon jog commercial

planes
In

along at

the

playing

LEHMAN BROTHERS

of the most effi¬

ships afloat.

Electric's latest jet engine, in 1956,
ber

HARRIMAN RIPLEY & CO.
Incorporated

installed

"John

the

CO.

transportation, General Elec¬

tric motors drive

above

defense

600

effort

mph.

major part in both

is
re-

May 22, 1957.

Opens

CITY,

broadened

D.*

tric motors to

point

Owen

Gerard

Swope, Philip D.
This record relates to caslii pay¬ Reed (now Chairman), and Ralph
$3.30 per share,'; If 'the market ments
J. Cordiner, President.
but there have been gen¬
responded in a like manner, then erous stock
If the past at General Electric
dividends as well—
GE
common
would v be
selling a 4-for-l split in 1930 and d 3- has been a distinguished
one;the
above 90. All of which, you real¬
for-1 split in June of 1954.
The future should prove equalty so,
ize, is pure conjecture, based on 1956
predicated on the program out¬
report listed/362,122 share¬
possible
improvement in profit holders of record
lined by Mr. Cordiner in the 1956
plus some 94,000
margins.!;;_
Vi. ■■ more whose shares are registered report: "General Electric:"is en¬
1
Now let's talk about personnel. in the names of brokers or nom¬ deavoring in three principal ways
to assure that
Over 280,000 employees make up inees.
earnings will sup¬
port
and
warrant
the
the GE family, and a great meas¬
proper
For

above last year's figure to around

industrial

men

generate electricity, whether ther¬

mally

has been

continuously inspired by the lead¬

SMITH, BARNEY & CO.
WHITE, WELD & CO.

The Commercial and Financial Chronicle

Thursday, May 23, 1957

...

(2394)

porarily affected interest rates of
the more sensitive

The Shoit-

L These

By ERNEST S.

technical

Vice-President, Prudential Insurance Company
Newark, New Jersey

of America,

day-by-day changes in yields, but
capital mar¬

backlog of loan commitments
Prudential executive that we're facing last year's

depends

Demand for funds and heavy

mental factors.

indicate to

term

further credit tightening;
expects banks to be kept in negative reserve position despite
the supplying of some additional reserves by the Federal
Reserve; and warns against turning on the easy money spigot,
and of being insensitive to deflation, too. ;Mr. Allsopp antici¬
pates $21 billion GNP increase for 1957 and believes it will
keep our economy fully employed and advancing at a good rate
There is

strong enough to cause

doubt that my sub¬

the importance
strength of that old economic
of supply and demand.
exemplifies

and
law

Where is all

the

money

coming from
to satisfy the
tremendous
need for

invest¬

term

which

ment
we

long-

hear-

are

about?
That brings up
the thought—
ing

what

these

Ernest

two

Allsopp

whether

lies

I'm

answer
see

decided

any

during

field

this

the

months.

the

shall

change

and

businessman,

attend

ease

General

over-all

business.!

have had more than the

crop

not

lacking funds
he v has

of discouraging statistics and

Now my

money,

But

Home

-S"

ther.

talk

•

building
Since

about

fell

off still fur¬

then, there has been
the "approaching re¬

cession."

*■';

inventory

accumulation '

has slowed down appreciably from

that* which

to spend—
$16 billion

and

1955

characterized

both

This reduction

1956.

buying is a main factor which has
ago,,.and imparted a certain sluggishness to
he is fully employed,. with wage pver-all activity. But it's a healthy
rates holding steady or increasing, correction and goes a long way to
I could
say
wage rates are not ensure no inventory recession in
taxes,

above the rate of

year

falling, but, like the optimist, it is
better put to say that the flask is
half full—not half empty. Perhaps
Mr.

has

Consumer

recovered

not

half of the

the last

Never-

year.

since current spending is

theless,

somewhat below last year, ft must
be counted as a minus factor, or

fully from his '55 buying splurge,

about $1 billion less than 1956.
'
be resisting rising •
\
prices to some degree—yet, ^retail
Government Spending ;
•
sales
are- gradually
creeping ': And - now for the J last -major
ahead. It is true that part of the buyer—the Government. And by
$16 billion increase in consumer Government, I mean all branches
income will be put aside into sav- —F e d e r a 1,- S t a t e and Local;
he

and

may

beginning of the, year,
ings, and consumers this year are
usual,
not borrowing as much as they did

the

Since
we

those with business
experience and news reports,
know of specific examples of lay-T¬
offs here and cut-backs there, and

questions

probably

^Business
Now

•However,

market? With¬

will

in the United States. This year,

after

business

^rtd'dddouhts for al-

two-thirds of total spending

Through

countrywide

everyone

knows

publicity,
that federal
last
year;
Nevertheless,, studies spending for 1957 is headed up-smade in this important field indi- .ward.
In the first quarter of the
cate that the increase in consumer year,
it has been . running 10%

product, or long-term gloomy predictions. Perhaps there
today is limited, or "tight." is some cause for concern. There
probably in some of our have been some real elements in
minds there is a growing doubt our economy which have not done spending for; goods and services
about the future.
Perhaps you'd as well this year as expected. To this year, over last year, will
amount to as much as $12 billion,
like to wait or defer the use of start the year off, employment in
As ^ sub-heading to consumer
this money if the price is going January fell more than usual for
down, for I presume those, repre¬ that
month.
Construction' con¬ spending,we must consider the
segment, of/ housing.
senting all forms of business, re¬ tracts dropped. Freight car load¬ important
This is ever on. our minds—and it
quire this product — money — at ings were down from a year ago.
some time or another. In borrow¬
Auto sales were not measuring up ought to be, as far as my,business
is concerned.
It's so competitive
ing short-term funds, the matter to the predictions of the leaders in
for use of funds in the long-term
of rate is not so vitally important, this field.
The stock market and
because each 60 or 90 days at ma¬ bond yields weakened markedly. market. This is another field that

ket.

state
of the capital

market

turity, the cost may change with
short-term mar¬

the

Whether the long-

ate.

the whims of the

present

capital

much more funda¬

during the remainder of the year
depends basically on what is going
to happen to the level of business
activity, as well as Government
action, namely, what policy the
Federal Reserve deems appropri¬

savings-deficiency situation again, and that interest rates in
the main will hold to current levels. Doubts, however, that

ject

are

the real trend of the
ket

pressures are

influences

important to security dealers and
do affect, as well as explain, the

ALLSOPP*

and ser\dciesf;
most

securities.

higher;,, than 'in

."Ola Man
rolling along!
We

hear

deal'about

great

•

cutting the Eisenhower budget for
fiscal-year beginning this July,
Although I suppose most of us
here

about the business outlook. Hous-

starts
have been declining
steadily for over two years,

ing

period

same

spending* is like
River"—it just keeps

cal ^government

contributed to current doubts

has

the

last year.* Of course, state and lo-

rather

such an action—in
fiscal policy makes
such a move imperative when theeconomy is booming
and price?
are
rising — I must admit I'm
skeptical that any major cuts will
approve

fact,

sound

past March, an eight-year result. Even if there are — the
probably not
low; of 880,000 units was estab- effect will be small during this
two-thirds of
lished., Nevertheless, I'm not tak- calendar year. It's probable that
the
businessmen today,
that is,
ing a position that a further de- total
Government
purchases, of
they are asking tnemselves the men 45 years of age or younger,
cline is inevitable. I think we may goods and services will rise about
$64
question—is tight money have never experienced one. But
have reached the end of it, and $6 billion and add this impetus toabout over? Well, Filagree with I shall not try to minimize these
perhaps there may be even a mild business activity,
them, there has been some news factors. They are important areas
which supports a bearish attitude in our society. It is also true that recovery later oh in the year. If
$21 Billion GNP Increase
;
I'm right, total spending on hous¬
regarding future business condi¬ what people have to say has an
To summarize, this all adds up
ing will fall not more than $1 bil¬
tions, and I further agree, if busi¬ important effect on business psy¬
lion below 1956.
•'
to an increase of about $21 billion
ness
shows any appreciable de¬ chology.
But may I remind you
in gross national product, that is,,
cline during the coming months, that there is
no
time when all
Capital Outlays
the value of all goods and services
a
tight money situation will be business indices are headed up¬
Next, is the Businessman.
No produced in our country. Last
over—at least for a while.
ward. Temporary adjustments are
area has given rise to more douot
year, this gross national product
always in the picture. So rather
and discussion recently than the amounted to $412 billion, which
Technical Factors
than being satisfied with a few
spending on plant and equipment, means that this year's total will
Money and capital markets are isolated statistics, let's try to get because
during the past two years range around $433 billion. The aninfluenced by what is called-tech- an over-all view as to where we
it has provided the main drive be- nual rate, of output in the first
nical conditions, which Tange all are headed the rest of the year.
hind our economy. With some eviquarter of this year was $427 bilthe way from the volume of un¬ The major segments of our econ¬
dence of slackening, it's natural
ii0n. So consequently, my analysis
marketed
securities
in
dealers' omy are consumers' buying, busi¬
there should be speculation as to leads to the conclusion that busihands
to
whether the Treasury ness capital investment, inventory
whether we can keep going with- ness activity during the rest of
Government pur¬
plans to offer a refunding issue spending and
^out this
dynamic force. While the year will advance steadily at
in the near future.
A couple of chases. On these points, what con¬
businessmen expect to spend less a sufficiently good rate to keep
weeks ago the strike of the Rail¬ clusion can we reach?
in the last half of this year com- our economy fully employed,
way
Express Company affected
Consumer Spending
pared to the first half, yet the rate
Having
indicated
the
strong
the
clearing of checks
by the
will be higher than in any quarter level of business activity and the
First, the Consumer. He is the
banks. This temporarily increased
in
1956.
And, as the year pro- consequent likely strong demand
the banks' reserve funas and tem¬ most
important buyer of goods
gresses, plans may be raised above
for funds, let's now turn to the
current expectations. Even though
supply side of. the market. One
heavy construction awards in Jan- guide to the probable future tone
uary and
February of this year 0f our capital market is provided
not an offer to sell or a solicitation of an offer to buy these securities.
were
down from
last year, the by the present commitment posiThe offering 'is made only by the Prospectus.
most recent figures indicate a tretion Gf the life insurance industry,
mendous
upsurge
in new con- j say this because the life industry*
tracts.
Also, smaller manufactur- furnishes about 16% of long-term

"Depression"

.This

.is

mentioned, because

to my

particular job day by day—
yet—as a
lender of long-term
funds, I must try to judge where
my product is coming from,
whether the market will continue

it, and in what amounts.
most of you can con¬
output by heeding the
listening posts of your sales force.
Individual lenders'of money have

to require
In

one

trol

sense,

your

such control over the source of

their
upon

product, but are dependent
the state of over-all business
action. This re¬

and Government

quires

entrance into the field

of economics.

before the

*An address by Mr. Allsopp

9th
gers

Annual

Business

School

May 16,

Conference

Rut¬

Administration,

Business

1957.

This

announcement

$8,000,000

-f-.

ing and commercial contracts are
substantially higher than last year,
and are still rising. McGraw Hill s

completed last month, in-

survey,

Washington Gas Light Company

dicates that plant

12%

over-all

increase

over

Due May 15, 1982

exceeding

new

shipments

orders,

this

industry still has more than a five-

current produc-

month backlog at

Yes,

tion

rates.

ness

Price 100% and accrued interest

is far from

the^ capital busi-

dead.

From what

capital spending at the end of the year will be
at
least
as
high as at present,

can

see

institutional
committed

and judge,

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

such

from

qUite
able

obvious
in

are

sible,

paying

BLAIR &, COMPANY

WM. E. POLLOCK

THOMAS &

& CO., INC.

COMPANY

FRANCIS

GREGORY &. SONS

I. duPONT & CO.

THE ROBINSON-HUMPHREY COMPANY, INC.

F. S. YANT1S & CO.

MULLANEY, WELLS &. COMPANY

INCORPORATED

reason

for crepe

hanging.

May 17, 1957

We're
short

our

avail-

trying
supply

to
as

pos-

attention,

particular

fining aii demands at
Furthermore, we see no
in

offerings

the

near

present,
drop in
future,

all I can learn,
clear there's no
danger here. Inventory sales ratios
it

seems

quite

irl
vfi

int<? a^serious
Our

first

therp

evi—

weakening in the rate
If and when money does

of prepayment will weaken first,
deiaying somewhat the fall in
rate Qur prokiem now is definitely
one
of
£ying to ration scarce
funds t0 the most productive uses.
While
and

the

ments

the

demand

for

backlog of loan

heavy,

are

some

funds

commit¬
of this

iia°H Jnextra demand will be taken care
\ g
?fn
of through an increase in savings
th
f ,
id
A
ronntrv

expected, are still in a
position than last year. I

idly than

this

become more plentiful, the terms
..

another

mg-differs so widely that it s difficult to generalize about this type

WALTER STOKES & CO.

PENINGTON, COLKET &. CO.

applica-

loan

erate size business. But we are not

structure.

better

FAUSET, STEELE &. CO.

to the needs of small and mod-

parallelin?

of spending. From
WILLIAM

dence of any

important kind of business spend-

BROS. & HUTZLER

SALOMON

months

broadly over the market

1956-certainly no

invpntorips

HALSEY, STUART & CO. INC.
MERLE-SMITH

our

this

distribute

1957 total of about

means

Inventory purchases

largest

six

excess

flow.

cash

DICK

the

supplier

ahead. We're not out of the
iending business, but I think it's

$5 billion over

which

The

year

tions

tool

machine

While
are

May 15, 1957

may

last year.

Refunding Mortgage Bonds, 5% Series Due 1982
Dated

expansion

down, but replacement and
modernization will be stepped up

slow

single
of savings,
-phe Prudential, as well as most
other companies in the industry, is
and

money,

rnnnfnff

inventory

quarter rate

problem®
of

total

^velops

SaTe

there

course

of funds 'into
savinSs institutions, such as, life
Continued on page 22
in

ttefloW

Number 5640

Volume 185

The Commercial and Financial Chronicle

and

<2395)

well-established countries

Europe;

By JOHN W. HANES*

;

seemed,

for

while to

have

feared

by many econ-*
businessmen,
and
had finally caught up with invest^ politicians that we could ^ ho
ment needs.
longer count on the rapid growth

-1

reached the stage fwhere

was

savings omists,

and

Even
in
the
twenties, when
American capital began to flow
abroad, there was certainly no
You will recall that many 'ob¬ that we had experienced in the
surplus of loanable funds relative servers - concludedv; at' that time
■past;" -'? v-'": *••
,!
to
investment
opportunities
at that the American
economy had?
Possibilities for new products,
home, as evidenced; by the high reached the
/stage of economic
interest rates then prevailing.
new
processes*
and
improved
maturity, or > economic Stagnation
During, the thirties,, it is true, "as some called it.,:-/
Continued on page 33
\ *
,

Chairman of the Finance Committee

Oliii Mathieson Chemical Corporation, New York City

Former Treasury official estimates current year's long-term'

capital market demands w|l] be $2 billion higher than in 1956 4
and, unless capital supply increases, concludes tight money's*
end is still not in sight. Mr/ Hanes comments on nur' return

;

historical capital-savings relationship and

|'/« This is hot an offering ofsuch debentures. for s/ile, or an offer to buy; or a
,these debentures
'/./■
The

;

recent

years

been

has

efficient way.

This

of capital investment on
The news-

the

record.

been

full

The

expect,

modernization

existing facilities,
and

t i

o n

"■

new

ized

equip-

ment.

IHHMm)

Business

john W. Hanes

recently

the beginning
1955, has now jumped upward
to a $50
billion rate.
In the short space of years since
the end of World War II, capital
outlays have moved up from $19
billion a year, to almost $50 bil¬
as

capital-expenditure

pro¬

grams today are more than four
times as large as they were during

the

twenties, and about ten times
as large as at the beginning of this
century.
/
There are more things new
about this

capital boom than the
size of the expenditures.
Not

only is -there a great inten¬
sification of capital spending by

of the economy, such
as
manufacturing and minin.g,
which have .always made exten-,
sive use of heavy equipment;
there-- is also a significant rise in
the number of real capital users.
those parts

encourage,

The

ters

service

and

criticism

old

new

tition into

ity

knows

attitudes and devel¬

of capital

longer are capital

tremendous

the

•Without
would of

not

course

anything

standard of living.
4
All of us realize

appropri¬

en¬

physical, -exertion

physical

less

Republic Company
(Incorporated)

Hornblower & Weeks

Dean Witter & Co.

May 22,1957.

This is not
,

offering of these shares for sale^qr an offer to buy, or a solicitation of an offer to buy,
shares. The offering is made only by the prospectus.

any

of such

the part of

than

effort

396,079 Shares

Week

which

1900.

customary

was

Acme Steel Company

/
v;
;
Rising, productivity ^and the re suiting rise' in our - standard of
living/have come about because
'

•

■

•

Common Stock

/..

•

' ($10 Par Value)

■

$7,000.
Today, it takes

There

which
as

are

over

$1? 500 in
a

job for

require

much

$20,000 per worker.
While this growth in our capi¬
as

progress,

our

Copies of the prospectus may be obtained from any of the several under¬
writers only in states in which such underwriters are qualified to act as
dealers in securities and in which the prospectus may legally be distributed.

eco¬

problems.

twenty,

.and

constantly innovate, in¬

products and proc¬
constantly review its line to
discard:those products which no
longer serve the. needs of the con¬
sumer, and be ever alert for new
ways in which, to bring the best
esses,

has

also

pre¬

Problem of Obtaining Capital

Heading the list of these prob¬
has
been
the
question
is
the
money
coming

lems

A. G. Becker & Co.

from?"
This is a question which
has
special significance for us today,
of

the
But

much

discussion

a question which busi¬
/pondered
long
before

time.

In fact* throughout the history
our country -there, has f been
basic shortage of 6avipgs.

address by Mr. Hanes before the
During the
Ninth Annual Business Conference, Rut¬
Business Ad-. we depended
gers University -School! of
_

Glore, Forgan & Co.

'•

Harriman Ripley & Co.

Incorporated

F. S.

Kidder, Peabody & Co.

White, Weld & Co.

Moseley & Co.

problem of tight money..
it is

nessmen
our

•An

Merrill Lynch, Pierce, Fenner & Beane

Blyth & Co., Inc.

"Where

new

agreed, subject to certain conditions, to purchase
unsubscribed (shares and, during and after the subscription period, may offer
shares of Common Stock as set forth in the Prospectus.

industries
investment of

tal has been essential

1957

any

many

sented

growing realiza¬
competitive world
cannot stand

16,

Rights,,evidenced by Subscription Warrants/to subscribe for these Shares at
$29.50 per Share have been issued by the Company to holders of its Common
Stock of record May 21,1957, which rights expire June 5, 1957, as more fully set
forth in the Prospectus.
The several Underwriters have

about

concern

ministration,. May

Central

The average job today

when there is

It must

Company

White, Weld A Co.

-■

requires
at the
turn of the century, and the aver¬
age manufacturing worker today
puts in only about 40 hours-a
week
compared to the 59-hour
■

Ripley & Co.

force.

the labor

nomic

still.

troduce

.*■

rise

the

that

F. S. Moseley & Co.

Pauie, Webber/Jackson & Curtis

enjoying
our current

longer hours or greater

result of

current

There is also a

business

Incorporated

Equitable Securities Corporation

Harriman

Incorporated

ih our standard of living is not the

attention to

increased

tion that in this

A. C. Allyn and

the average worker.

forecasts

term

planning
for ten,
thirty years ahead.

Lynch, Pierce, Fenner & Beane

Glore, Forgan & Co.

Kidder, Peabody & Co.

largement in our capital plant, we

expected sales.
is

•.

legally be distributed.

Incorporated

productivity can come
only from capital investment.

programs.

ations related primarily to

short

A. G. Becker & Co.

stepping up productiv¬
that appreciable ad¬

capital goods to supply

is, furthermore, an en¬
tirely new attitude on the part of
businessmen
toward
the whole

There

••

other advanced machine

;

Due June 1, 1977

industries,. for ex-

New Business Attitude

sales

Merrill

Blyth & Co., Inc<

vances

There

dealers in securities and in which the
prospectus may

methods

by the relentless force pf compe- ;

applications.

question

■

Copies of the prospectus may be obtained from any of the several under¬
writers only in states in which such underwriters are
qualified to act as

steady

the worker ef today is provided
wjth *- much more/capital equips
ample, which have tradltipnaiiv dient,- ahd more efficient capital
been
relatively small ^oisers •pf equipment, than his counterpart
heavy capital- .installations, have 0f 5q y^ars ag0. /'
in recent-years increased their ef¬
In the mid-twenties, investment
forts to improve productivity ih t; plant" and
equipment - per
.through giant electronic compu¬ worker
in
today's, prices
was
.

/K j;

Price 99% and accrued interest

ously stimulated America's invest¬
ment in capital goods.
Y; \
The businessman who is pushed

today

lion.
Our

which

opments have of course tremend¬

and producers'
equipment, which was
running at a $36 billion annual
as

durable

rate

;

products.

These

construction

new

■

spending.,

.v.t,

///</■•//,/':

'
; :• t.
It welcomes suggestions for new
ways to keep ahead of competition
by providing what the customer
'wants.
:.Y
-Y'Y

modern-

1, 1957

was

and

flow
and

the introduc-

and

characteristic of
only a few leading corporations,
today has become an integral part
of typical corporate organization.
Top management has come to

new

=.<

Dated June

development,

department,

ago

years

plant con¬
struction, en¬
largement and

research

research,

planning

announce¬

ments

emphasis

American business.

'/-;"

have

papers

4%% Sinking Fund Debentures Due 1977

/-Y

attitude is typified by

new

Acme Steel Company

product to the market in the most

the Americah
experiencing

of the most remarkable surges

to buy, any of

$22,000,000 Y

...increase.:>YY"

economy
one

corporate borrowing to run ahead of 1956 by $1 billion; the
Treasury to again.be a net supplier of -funds, though less tbhn -</ '
in 1956; mortgages to decrease^ but only as a -result of lack
of capital and not demand; and state-local borrowings to

solicitation of an offer

offering is made mly tbyfhe, prospectus.,

the erronepiis t v
fears of the mature-economy school, in referring to our cohtin- A i
uing problem of satisfying • capital: needs.; Expects:./ 1957
<

nineteenth., century,

heavily on the im¬
portation of capital from-the older

A. C.

Allyn and Company
Incorporated

Central

Equitable Securities Corporation

Paine, Webber, Jackson & Curtis
May 22,1957.%

;

Republic Company
-

•

- -

(Incorporated)

Hornblower & Weeks
Dean Witter & Co.

-■

The Commercial and Financial Chronicle

...

(2396)

happens, in the long run is simply
the
cumulative
result
of
what

Economic and Financial Factors

Affecting the Easiness Future
:n
:

By CLIFTON H.

u;>-

••

Carolina

frV

••

;

business

The

•

future

has

short

run,

the

;

two
the

for example; and
long run, the next decade or

rest of the year,

the

quarter-century,

say.

any discussion
of economic,

financial, or
other

the

business fu¬

ture, we must
recognize

for

goods; and services-+-eonsumer,

business, and Gbvernment spend¬

ing—two,

business
deficient at

and

consumer

spending, would be

System—with increasing in^ anything, li^;e; a full employmeht
since -3955.
Without this level of 'output that the markejts
containment, all the aforemen¬ would be flooded with goods, un¬

serve

tensity

tioned "all-time

highs" might have

Government

less

spending filled

higher, because of higher up the gap in demand. '
and fdong ,,runs f are -inextricably prices. As it was, Gross National
We could not have been1-more
Product (output valued at current
intertwined and ^interrelated. So
wrong! Peace came, reconversion
T can perhaps justify a certain prices)
rose
about 5% between came, and prosperity continued. It
emphasis on long-run develop¬ 1955 and 19567 and - price rises has continued to this: day.1 Con¬
ments
in
our
discussion
even
averaged 2 to 3%. So the increase sumers, their financial 'position
And

Clearly; the* short

been

I strongly suspect your in output (productivity) jwas on
interest is in short-term the order of 2 to 3% also, or no
probabilities, which I shall also more than the annual rate of in¬
try to deal with.
77/4/ !//777 crease that we have come to ex¬
In my discussion, then, I want pect.
7
7*
7;j."7./'/'-"77*:
at some point to lay stress on
So much for the situation at the

buttressed
cumulated

•

those long-run

end

for vague¬

by!- liquid

assets

ac-

during thej war, ' and
enjoying prosperity-level jncomes,
spent,

and spent, and spent,'for
goods and services, Businessjnen,!. faced ..with consumer de¬

new

currents that help
the financial and eco¬
nomic future and that continue to

is far enough away

run

shape

■■

despite the ebb and flow of

run

the

1956.

bring

down

stand.

To review economic and fi¬

(2)1

mands.

thaH could

not

met

date, employment, output, in¬ with existing fcroductidn facilities,
come, and prices did not change spent,
and spent, and spent, for
materially, except in a normal, new plants and new equipment.
seasonal
way,
in
January
and And
Government,
faced
with
February of this year (1957). But

and
tension^ armed conflict in
Korea/and a growing awareness
of Russian aims in the world, also

continued to spend at high levels,
for

defense

and

defense-support¬

ing activities.

7:7 7

Throughout the postwar period,
however, some prophets of gloom
and doom have kept insisting that
Few busi¬ our
prosperous levels of activity

noticeable decline.

prophets now seem to be could not be
'continuously sus¬
forecasting even a continuance of
tained/that we must expect, on
cent past briefly, in order to show present activity levels, and fewer
the
basis
of
history alone,) an
(3) It's also much less risky to us where we have come
from, and still are predicting/any further
eventual, substantial, downward
talk about the long run than about
how we have gotten where we expansion in activity.
r.
•
>
in discussing it to seem rea¬

sonable.

dimen¬

sions.

discussing

If you predict

the short run,

short run,

the

central bank—the Federal Re¬

cyclical tides of business ac¬
what the audience wants to hear, tivity.. J,Tb talk about the future
meaningfully, though, we need there has been a noticeable shift
and professors seldom do. Instead,
some reference point in the pres¬
of
sentiment
and
expectations,
they talk about what they want
ent! And to understand the pres¬
especially,* among
businessmen.
the audience to hear, or what they
think it will be good for them to ent jwe must, of course, look to Businessmen are not so optimistic
the past./So I should like to try- as
hear.
This habit is very hard to
they were last year, and the
to do these four things:
7)/
7- 77' visions they seem to see in the
break.
/
/
(l):;To review the present Eco¬ cloudy, crystal ball are visions of
(2) Talking about the long run
nomic
and
financial ' situation at least a slacking-off in activity
is much easier than talking about
quickly, in order to show us where rates in the economy, if not visions
the short run, because the long
talk

ness

these two dif¬

ferent

policy pursued by

factors

affecting

our

year

though

audiences. One needn't
captive audience about

captive

"tight money"

contained
within -, a

were

the

major

disposable personal income as potential limitations on
growth and element of instability.

dimensions:

oc¬

these

Profe«sojr Kreps emphasizes

and

but

•

■*.?.Mi*,.*

can

and shape short-run

color

curences.

need to differentiate between long
"i and fhort run business forecasts, with particular significance
; of the former.
Asserts we stand on a prosperity peak, but with
| recent decline in confidence; that current situation is essenH tially sound; from here on, over shorter term growth rates will
be 'slower;' iong.run prospects are excellent, but ;with trend
7 toward larger proportion of services to goods, and rising pro7
portion of consumer instalment and residential mortgage debt
;/;

influences

sihee long-run

of Banking,

Administration, University of North

••

KREPS, JR.*

Wachovia Associate Professor,

School of Business

happens in the series of short runs
that make up the long run.
The whole is sometimes greater
than the sum of its parts, however,

isted,

throughout

Thursday, May 23, 1957

will

talking
about the

we are

H. Kreps, Jr.

Clifton

business

cycle.
In discussing the long run, we are

what

happen tomorrow, tomorr.ow

will

you right or wrong.
predict what will hap¬
pen ten years from now, no one
will remember, when the time
prove

But if you

nancial

developments

are.-.

.7./h"/;

the

re¬

adjustment.

7/:/ •.,77-

near-term
future—the rest of this year—in
terms of what now seems likelyto happen and why, in order to
see where
we are
going.
V
(4) To look at the .long-run
(3)

look

the

ness

You have heard them

then, vis

where; we find chanting /; dolorously «ach year:
of current "What goes up must come down."
prosperity, but with grave doubts And then, when it didn't happen,
about the future. It may help to chorusing,
like; Dodger * fans at
resolve thbse doubts if we look at Ebbets
Field, "Wait ?til next year!"
the past,utoHsee where we have
Well,
we
have -1 waited,
and
come from; and how we got where
waited and waited—and
This,

ourselves—on

peak

secular trends in
comes, what you said. Also, in a
a speaker on this
long-enough long run (as the late, future—the next decade to the
prosper¬
Hi
subject were to operate on the
we are.
ity has continued, the economy
theory of
giving the audience great economist, Lord Keynes, next quarter century—in terms of
once stated), we are all dead. And
has expanded, and each year has
what they want to hear, he would
the long-run forces at work to II. Where Have We Come From?
dead men tell no tales.
seen new peaks of activity record¬
undoubtedly; concentrate on the
shape that future, and in terms of
Looking back from our present ed. We suffered a minor setback
short run. People are more inter¬
what the shape of that future will
V Significance of Long Run
peak of prosperity, it seems hard in
1949,
another
in
1954 — an
ested in the short run than they
talking

about

the economy.

likely be. \;7_
7'7'".',.7:j; <
,./■ to realize that only 25
Since bankers seem to prefer
years ago
because the
our nation was
in the depths of
! 7 the long run, and professors cer¬ I. Where Do We Stand?!:
the deepest depression in our his¬
tainly do, it should be perfectly
In 1956, for the first time ever,
An old justification for the pay¬
clear what a professor of,banking
our
Gross National Product—the tory.
.

in the long

are

short

run

ment of

run,

is closer at hand.

•

interest, the so-called time

preference

states that most

cfr y "of ihtefest;
people (including

talk

would

want

discussion, I

dwell

about.

And

tend

may

the influence of certain

nation's total output of goods and

services, valued at current prices
—e xceeded
$400
billion.
It

businessmen) prefer present goods economic and financial factors on
amounted, in fact, to, $412.4 bil¬
to future goods. But some people,
the
long-run
business
future.
lion, and our rate of output rose
including bankers, prefer future
There are some other better rea¬
each quarter of the year.; If the
goods to present goods. In fact,
sons for this, too.
fourth quarter rate Qf production
bankers

business

their

base

First, the long run is simply a
And other people,
series of short runs, strung
to¬
including
professors, prefer
to
talk about the long run rather than gether, so if long-run influences
are
correctly analyzed, a great
the short run, because:
deal of light can be cast on the
(1) Professors usually talk to outlook for
particular, short-run,
this preference.

•An address

by Prof. Kreps before the
Charlotte, N. C., Small Business Manage¬
ment Conference, The Charlotte Chamber
of

situations.

since the long run is
series of short runs, what

been

the

year,

throughout
example, G. N. P.
would have amounted to $424 bil¬
lion for 1956.
.7
In

National

had

come

v\* *•

1 7'-

7 777

offer to sell nor a solicitation oj an offer to buy any of these securities.
The offering is made only by the Prospectus* c » 7
:
•
'■
7'V'v v;/"1';■■•/ \:"vl

$1,150,000

--7

6% Convertible Subordinated Debentures "

7.,.7

Due May 1,1967

save

total personal in¬

billion,! and

$20.9 billion out of

the

so-called "rolling
readjustment" in the second. But
these were hardly noticeable or

pared

with

was

were
as

now.

$400

over

billion in our continued prosperity —y its
as great. price.
For it does have a price,

hbout one-eighth

1956, or
And

prices
then

high

nation's

the

one

economic

mood

desperation.

We have come

long

and

high one—inflation.

'We

since

way

this
price
through
prices for the things we[

pay

higher

then/ and our path has been al¬
most continuously upward. A re¬
cession in 1937, the exact causes
of which are still debated, slowed

buy/through a lower value, or
purchasing power, Tew each dollar
we get for spending or saving, in
ill, all-time record highs.,
other
words.
We
pay
it also
In terms of source, our 1956 our recovery in,the late '3Q's. But
through the resulting distortions
Iross National Product jof $412.4 by the end 'oi 1941, all our eco¬
in income and asset distribution
ncome

(after taxes) personal
$286.7 billion. These are

came from
personal conumption expenditures of $265.7
jillion,- as noted, from 'private
nvestment (new capital outlays)
>f $66.8 billion, and from Governlent expenditures of $79.9 billion.
These, too, are all, all-time highs.

nomic

indicators .showed

levels

in our economy. The price, as we
higher than those have said, is high. The value of
reached in 1929, the last pre-demoney (its purchasing power) is
pression year. Then came World less than half what it was 25 years

equal

.Warn,
fc

The

war

turned

ago,
recovery

into

boom," and brought a need for
employment, also, n)assive taxes and direct controls
ve
had * another all-time high-— —price land wage controls,
and
lmost 65 million—in people em- rationing:. taxes,
to permit the
In

terms

Joyed

at the end of 1956, with
nemployment of but roughly 2.5
lillion
(less
than 4%
of
the

Price 100%
Plul acttued intcrct from May 1,1957

adjustment"
a

case,

" f
! 74 •
less than noticed, v
Can prosperity continue, then?
Em¬
ployment was less than half as Will it continue?> And for how
great and unemployment was soar¬ long? These are not merely $64,000
ing.
Industrial
production
was questions (or even $143,000 ques¬
about
one-fifth
of
the
present tions, as Mr. Van Doren's got to
level.
Reflecting
these ; lower be), but $400 billion questions, at
prices, output,, and employment least.
levels, as well as a much lower
Before we consider these ques¬
level of output per worker (pro¬
tions, and try to find answers for
ductivity), Gross National Product them, let's look for a minute at
was only $56 billion in 1933, com¬
the major unpleasant
aspect of

Consumer

•

half

spend $265.7 billion

oillion

Supercrete Ltd.
(A Manitoba Corporation)

$325.2

able

Product,

national income of

$342.4 billion,

lisposable

I NEW ISSUE

distribution

Gross

and

the

terms

this

were

This advertisement is neither

maintained

for

1956

•

Second,

simply

Commerce.

had

"inventory
first

ivilian

labor force).

And in in-

diversion of resources from peace

in terms of consumer prices.

In other

words, prices have more
doubled.; Half of this price
rise has come since 1945, the end
of
the -war,' and
the value of
money has fallen a third in that
period. In the last five years, the
than

war-time, uses, by diverting pace has slowed somewhat, but
spending power from the people the steady erosion of purchasing
to
the
Government; and direct power and savings still continues.
to

ustrial

Copies of the Prospectus may be obtained in any state from such of the several Underwriters,
including the undersigned, as may lawfully offer the securities in such state.

Straus, Blosser & McDowell
H. M.

Byilesby and Company

Dempsey-Tegeler & Co.

Bache & Co.

(Incorporated)

Brush, Sloeum & Co. Inc.

Crutlenden, Podesta & Co.

Loewi & Co.
r

Reinholdt & Gardner

Incorporated

Irving J. Rice & Company
Incorporated

Saunders, Stiver & Co.

Campbell, McCarty & Company
Incorporated

Mason & Lee, Inc.

Lenlz, Newton & Co.
-i ~4

May 21,1957

3-7^

•

production, the index for controls, to ration scarce supplies
yhich stood at about 143 for 1956 of peacetime goods (automobiles,
Jon a base of 1947-49 equals 100), liquor, sugar, meat, clothing, etc.)
'e set a new
and to limit the effect of scarcities
record, too.
and of rising
Moreover, these output, income, on price levels,

Can't

have

out

but

prosperity with¬
Possibly, we can,

inflation?

tered

don't

seem

the trick yet.

have

mas¬

if
had, I suspect we should be
to try it.
Our fear of de¬
igs peaks were reached in a year
During the war, many econo¬ pression, based on our experience
f relatively stable prices, commists, after looking backward to of the '30s, is still so strong that
ared with the recent past. Con- the
'30s, concluded that the com¬ most of us seem to feel safer with
amer prices rose
something over ing of peace would mean another a little head of inflationary steam
%, and wholesale prices went up depression,
to overcome
which in the economic boiler. That way,
bout 3%. This price stability did would require continued, massive,
we
think we have a margin to

•mployment,

.ot reflect

spending,

balanced

and

sav-

prices on wage levels.

supply and Government spending. For it had
situation, however, nor
become fashionable to believe that
ny absence of inflationary forces
7t work In the Economy. Rather, of the three components of spend¬
strong inflationary pressures ex¬ ing making up our total demand
lemand

And

even

afraid

compensate for

errors

in economic

judgment that might lead to
cession

the .relation

Continued

re¬

between

page

Volume

Number 5640

185

.The Commercial and Financial Chronicle'

(2397)

tr;,.

Current Assets

The Stock and Bond Crop
Has Never Failed

"Tpp

r rom

:'t.t

It.i"

lli'i

•»

t-.j >

Wasnmgton

Ahead

i.'U;

•* f"

TFT"".:

of the News

By CARLISLE BARGERON
•.

J, In

government of checks and

balances,j

three

equal

branphes, as ours is supposed;to
be, President Eisenhower is truly
getting some ,*•-'* •
.'i
ad-r}

from

segment of the
in

his most

use

cogent ar¬
This argument heard pri¬
in Administration circles

assets tidies current

few

countering

In " the

his

nounced in the

one

have

not

following

the

last

i d ent's

r e s

campaign

made

leadership, in
short, for not "
doing what He "
says, a n cf l

inroads

usually
' . ■
•
" \
thought tnis silly in view of the
fact that Congress is made
up of

tion

seeking to

represent those who elected them
tremendous amount of

collective wisdom and experience.
this

But

time the

attack

not

much against Congress as it is
against the President for not whip¬

ping it into line, for not browbeat¬
ing it, for not withholding patron¬
age from those who won't follow
him.

This

what

other

strong

the

argument1

scare

head

run

rate,

will

that will make

result

would

President to

strong President.

•'

Aside

from

be for reduc¬

influential
him
it

has

segment

get rough,

for this

But
that

wants

wonder if

you

2;7.

U.. S. Gypsum

2.5.

U, S.

4.5«,

Walgreen

a n

American

d<b

The

completely lost its Concept

the

American

Government.

You wonder, too, if it has com¬

pletely lost its
There

of proportion.

sense

simply not enough
jobs available
for

are

tronage
President

offer

one

pa¬

the

every

member of

Congress who will sup¬
him in his budget fight and
thereby risk defeat for reelection.
port

This

be done when

can

closer and

few votes

mine the outcome
other.

can

and

rank

one

file

way

done

the budget out,of dislike
of the President. The Democrats,

true,

realize
tends

they

have

deflate

him.

But what is

really motivating them
is the heat that is being
applied
„from home. No President can win
that.

over

probably

forgotten

that

after his -unsuccessful purge camr

<paign in 1938, the great-Roosevelt
with*

patronage and more
to throw around than any

money

President

we've

had, com¬
Congress

ever

pletely lost control
on

over

domestic affairs and.never got
back.
y

retained
war

the

'.<>>.■.

for

ending

1929

1955

He turned to

war and
and through his
he was able to con¬

tinue to work

not

some

of his do¬

reforms, but indirectly and

through vote by Congress. In¬

stead,
on

Congress kept

him.iL-

1 -,

wary

eye

The fact is that Mr.

Eisenhower,

regardless of his nature; is

carry¬

ing his fight to preserve the budget
in just about the only way avail¬

*.
:n

must

around

Congress certainly has
bility in government.

Janeway Consultant

respond.

(It is-doubtful.- though., that he
,

date

and

one of the reasons is that he would

2.7

6.8

2.3

5.1

2.9*

Frg^port Sulphur____
General Amer. Trans.

3.4*

Eliot

Janeway

General Motors

,fpr

National

Corp., it
Henry J. Simonson,
J r
National

EM,, Jr.

LOUIS,; Mo.—Hill Brothers,
Security Building, membprs of the
New York Stock
Exchange, on
June 1 will admit Ernest A. Eddy,
Jr.; to partnership. Mr. Eddy has
been associated with. G. H Walker

2.3*

1.5*

1,8%

2.0

4.0

Co,

„

2.8

13.8

shoe_;

4.2

Liggett & Myers—10.3;
P. Lorillard Co
.1.5 41.6

analyst.,

Jains Homblower & Weeks
1

8.1

Intemational

2.6*
2.2

9S—7

ST.

16.8-

Inland Steel-

(Special to The Financial Chronicle)

BOSTON, Mass.

3.8

Windle

3.5

William W.

—

With

now

Honiblower

new

has

been

Securities
was

Sinking Fund Debentures is being sold to •"

issue of 5 'A %

general public by

<;%v.
'**■"
-•

fhe offering/is made only by means Qfjb&,officipLPcdspeCtuiy *

•

.v.y

:rttf

.'/•of.-v.v.-?'

•

'J H

of investment dealers, including the undersigned,

a group

'W'iJt» "ii

W;-T '5

W
Otic

-4-

'1."5
r,,AtTHV.l'i't

$5,000,000

'■j

Producing Company

5V*% Sinking Fund Debentures due 1977
r\'

ap¬

Warrants entitle the holder to

Re¬

#.;v%.

announced by

:)<;'/■

•}■.*

purchase

common

stock at

the rate of 60 shares for each $1,000 principal amount of

Debentures at $7.50

the

tached at any

/Se¬

shareto Ond including June 1,1967,

expiration date. One-half of the warrants may be

time and one-half

may

be detached

de¬
and

after June 1, 1959.

•

Corp.,

Broadway,

New

and

)► Price 100% Per Unit

York

City,

sponsor

(Plus accrued interest from May

manager

15, 1957 to date of delivery),

of the National

Securities

Se¬

ries of mutual
i

n v e

You

stfrient

ore

invited to ask for

Prospectus

describing these Debentures and the Company's business.

funds.*

Any underwriter qualified to do business in this state
will be glad to give you a copy.

Mr. Janeway
Eliot

is President of

Janeway

Janeway Publishing and Research Corpo¬
ration, publisher of J
Analysis
and
Applications Service.
Trend

years,

Time,

Inc.

Time
for

was

a n e w a

y's

Janeway's
For many

associated

Paine/Webber, Jackson & Curtis
'

with

Business Editor

and

Fortune.

widely

the influence of de¬

Scott, Horner & Co.

Rausther, Pierce & Co., Inc.

determining domestic business

trends.

was

educated

nell. .University and the
School of Economics.., ,

Cor¬

May 23/1957

London
^

L-'t-a hi,

Incorporated

Spencer Trask & Co.

Kidder, Peabody & Co.

Jane¬

Mr.

recognized

Blair & Co.

magazine and special writer

Life

Weeks, 75 Federal Street.
"i

curities & Re¬
search

Goodyear_'_-_-„__l;; 8.5l;*
W. T. Grant_---_-l_-.! 6.0* ;

.,,

President

Admit E.«.

3.1-*

Gillette'Co.

1956,

pointed Business Trends Consult¬
ant

J*'-

ratios. "*

Hill Brothers to

2.3*

4.2

cur-

and

3.1*,

With Common Stock Purchase Warrants

..
,

'■
•

For Nat'l Sees, Res.

8.1

Morse

Coastal States Gas

international conditions

Congress will

this at this late

2.3

year-end

blindly.

11"

responsi¬

authority

;

2.7*

6.2

—

1955

him, and

followed

fense and

.can

.»ioh

is President, and

turn

;

the

able to-under¬

way

around,

7.0

^2:, ,i 44%

3.4*

•

have
always
-deserving of
additional honors.

able to him, that is, appealing to
the American people.
If he can

them

5.1"

1.5*
;

show-

and

4.8

Federated Dept.Store;

prominent

who

man

10.5

Fairbanks

This

of.

were

small group

they

power,

powers

mestic

the

120

hands

stand that school of thought which
holds that all the wisdom resides
in the

2J2
-8, $" 6.0*
6.'2-a' 4.2JL
6.5
3.pj
,

6.3

•■>

the

bers of Congress are not voting to

the

i r.':

Co._-._I.-4-T<r ? ^

Win.c -Wrigley Jr.„-a

Eastman Kodak

but to work

own

been

never

2.9*

,1.6

2.7 (V

Continental Oil_—

There

ever.

lessening in the

following table clearly indi-

not

reduce
it

I'have

the

are

deeply concerned in the issue.
However, the budget fight is
close to every home. The mem¬

issue: that

President.

3.4*;

deter¬

when

voters

fight is

can

the

thought they
contempt, not

2.4*

8.4

to exercise any

never

promotion

2.7*

Westinghouse Elec.
Wilsop & Co..;
r-.r
F. WiLWoolworth Co. 46.81 ..;,.L2:7y

Endicott Johnson.

than
no

some

years

3.0

Steelv^^t-™1.4.6

4.9

Colgate-Palmolive-—

fent, liabilities
the

2.2

3.2;

Hiram Walker._1_

Coca-Cola Co.—----

Jones

capital.

.....

8.3

Co,_u_l

3.1*1

Chrysler Corp.-^-^-

to be

1.9*

3.8

Burroughs Corp
Edward

ing the current assets times
..r

2.4*

7.9

3,1::

6.3,;

;

3.0*

'•>

Bethlehem Steel-*-4.7v

companies in this country

of the

13.5

2.2*
f

69 f.3.1*

Calif

Beatrice Foodsf 6.2,v

;

and

greater

Tobacco

;•

4;1

Babcock & Wilcox Co.

We recently prepared a balance
sheet

Can

American

likely

for

Shoe

Amen Smelt; & RefL

this

—_

Beech*-Nut Pa eking--,'12.3;

i J believe the i

need

•

If.1Texas
l%\Cart>ide & Carbon ;

4.0

the

for

Coiij^.42li-i-A

appears

the

judgment of their

2.8*'

United Biscuits——

termination

Times

22*

view

2.5*

4.5*

8.8

tion of the budget.

-'Sinclair Oil Corp^i.

Current Assets

mind disgusting on. a moral basis.
cates that there is an urgent deIt is a plain fact that men in Con¬
for
financing ., or
moro
Indeed, one of Mr. Ei¬ gress have often voted with the mand
senhower's
problems, and very President against their judgment current assets, in. many of our
probably one of the reasons he is on the
promise of judgeships and leading companies.
.•
not, attempting the strong man
other jobs.
Some of them Lliave
stuff, is that the great majority of even come to
Congress with a de¬
seems

Swift &

3.7

Si} ^fian?,L f'fl
Standard 0" N" J
46
•36

Amcr. Brake

••

The press as a whole is not do¬

press

Standard Oil Calif.-l 10.5

1955-6

vs.

Union Oil

1.9*

•

ing this.

the

3.2

3;lt

Sherwin-Williams Co. V 6 4

4.5* :

being

8-5

2.0
.

Shell Oil--.:-.---.,-. >5

2.5*

year

unsoundness of
%giy£n to the
get tougft,;if is to my

advice

Remington. Rand^i-^

2.2*

10.4

6.6

thing he

part

»t

'•

•

v «.

utter

6.1

5.6

depression

-t':

r e

funds

would

the

2.6

J. C. Penney.,,
Procter & Gamble

Ratios:

A-

floods

private longterm capital

statement

8.6

Alum. Co. of America

i 1u

publ i

hair curl. The

our

likely

bewilderment

'public.

into

run

3.8*

Owens 111. Glass;--*-

are;, en¬

demand for

Secretary
of
the
Treasury
Humphrey that if the government
keeps on spending at its present

the

do if he is to be

the

7.2

Allied ChemicaLu_ii,^ 9.5>

the

use

now,

into

3.4*

Otis Elevator—.

Amerada_____

Presidents have done, Mr. Eisen¬
hower is being told, and it is some¬
must

chance

2.2*

8.»f

* 6.7
Standard Brands—; 1Q.3

bond crop has L
never failed. "
=dr|

subject.-If the Administra¬

were

Sheet

1929

serious

'serious

some*

crops:1 But

baked' eye
but the Republicans
had a lot of convincing statistics

grown men and women

7.2

iiL j i lJ

predict the f

that the field of business
not dependent; upon government
spending had been greatly.,en¬
larged. It is not perceptible to the

Carlisle. Bargeron

—i-i-

qncy,

have

and with

had
we

farmers

some

had
depend-^

this

upon

This; of £
course; makes

that they

was

Lead

Oil

Air Reduction.7.4

now

areas.

the

for

2.7*
2.1*

Abbou-.Laboratories;,^ jf 2.5

have

apd

in- certain

things* which the Re¬
publicans-bragged about in the

years

Balance

the*;)past

argument

seen";.
Congress .de-

budget fight. I

past

liabilities for 1929 and 1955-1956.

'■

admittedly has a lot of merit but
it, is. doubtful if any AdministratfoiCwould want to go to the peo¬
ple with it.7 As a matter of fact,

press

Middle'West

droughts

serious

any

4.5

4.1

National

;

freely around
political Washington: is that the
American - economy
has become
too dependent upon government
an

Cash Reg.-..

Ohio
"

leading

our

< 1929) <l&»5-6)

and discussed rather

budget cutting. Such

assets

Company

Current Lisb.

: *

-■

% ,,i:>

companies is revealed in Mr. Jones' comparison of current

gument.

vately

current

•

An-urgent demand for

<">.

an \

influential

dare

spending to permit of

amazing
vice

not

■*

May Dept. Store

j i

I-iu

^ ^

By EDWARD D. J^ONES

*•*!

National

Partner, Edward D. Jones & Co., St. Louis, Mo.."

;
=

Times
*

,p.

•*:*

The Commercial and Financial Chronicle

...

Thursday, May 23, 1957

(2398)

•

■

yond the savings of people. In his
report to the ECOSOC on
the activities of the
Per

Restoration oi Monetary Order

Jacobsson warned against recourse

Corlney

Called for by Philip

and

U. S. Council

the

international

Restoration of the

dress

offered

only alterna¬
tives
ent

pres¬

monetary pol¬

icies by Philip

the

what

{

Congress

Italy

Naples

Corf-

A summary of Mr

lley's remark™

tree
can

follows
neys remarks follows.
state

outset

Monetary
than

General

its

of the InFund?
It

Fund

unrealistic

ex-

affairs will prove to

Director

Re-

outstand-

"I agree

"IT)
A1)

two
'

any

increase

private

credit

expen-

inadequate

frozen. V

when

savings are
meet
investment

demand.'

•

j"i also agree that most of the
great trading currencies have acquired a high degree of de facto
convertibility.
This progress
is
due to a large extent to the aid
and

large

American

expenditures
Government

and

over,

process,

the

that

suspect

the

world

the

the monetary situation of

the United States has been under¬

main

'My

disagreement

Bernstein has to

results

of; the

and monetary
conducted

vuuuu,kfcu

with

present

policies

they are
all great countries.

LPitfs

41l

that

true

budgetary

was

careful

'ultimate results'will be attained'"

havoc

auite

convinced

the

that

rent™™

the

nresent

monetary and credit policies will

rnnv^rtihiiitv
ve tibi ity

nf
of

i "

currencies.

The

obtammg concurrently
cies,

the

with

and

domestic

JES
Great

Depression

years

thereafter:

and

exchange standard is
an inflationary
device.

for a few
The goldessentially
.

monetary order has become

the

beyond

human

wits

a
—

'by1

„

non-discriminatory,

multilateral trade, are nil as long
as
each one of the great trading
countries

practices

arbitrary,, not be too late to do what is right
policy. It for the preservation of the free
is also simply absurd to envisage
enterprise
system
and - human
nationalistic

common

monetary

European market with-

freedom.

rencies of the countries involved,

time to stop
inflation, the root causes of "which
are the monetizing of government

debt

and

ary

credits,

out the free

was

convertibility of

happy

Wolff

make

marks

hear

some

Mr.

pertinent

his request

in this

cur-

Otto
re-

coun-

em-

can

labor

capi-

tton> which involved the accumu-

greater

efficiency and in which
are high. Second, imports

ance

country with the goods
can produce
with relatively greater efficiency,

supply

cost

production

throughout

difficult.^*.,

cially

rv.'This

was

insati-

,..,v

environment

the

Postwar exchang6 con-

Neatest

restrictions were on doljar paymentSj jn order to conserve

tionaliy, these restrictions

the

iorm

duties

customs

limited

tde

de-

the

to provide protection for
domestic industry against the com-

petition

of, efficient

abroad.

"•

Unfortunately,

trading

closely knit

Western Europe,

area

re-

payments were governed by bilatrise to vested inter— eraj agreements between trading
estsf'seeking -greater ;protection partners with some flexibility prothrough higher tariffs.

The adop- vided by swing credits: In these
higher tariffs was arrangements, trade tended to be
marked after-the de- restricted to the amount that could

tion of new and

especially

pression of 1929.:

„

be financed by

the exports of the

deficit country to ..its -.bilateral
creditor. With such restrictions, it
is not surprising that international
trade was far below the level
place, several countries abandoned suited to a prosperous world econ—
controls

were

their exchange controls. With

omy.

outbreak

„

the
complete contransactions was

war,

of exchange

trol

Brothers, formerly located at 205 adopted in nearly all belligerent
Equitable Building, have recently countries. It was generally recognized that their continued
the

ter4

war

restrict

use

af-

current

transactions would impede the re-

world trade. The exNew perience of the 1930's had shown

with

the firm.
include Cecil Murrow,

that

the

with

best

exchange

means

and

dealing

stitution such

in-

•

Enormous

resources

into the reconstruction

come

but

the

ernization
omy.

have gone
and mod-

European econ-

Most of these resources have
out of their own savings;

aid

from

the

United

States,

other countries, and
institutions, has

Canada, and

from international

By 1948, produc-

tion had reached and exceeded

the

level in nearly all of Euj-ope. Trade still lagged, hampered
prewar

of the Fund' by high costs and inflated demand,
assist in maintaining fairtex- In 1949, devaluations by countries

One of the

is to

the International

Monetary Fund.

■

Bec®very °f Production and Trade

payments- been invaluable.

problems would be through

partnership,

covery

Decorah, Iowa.
a

such

within

Even

introduced as an emergency device to
deal with the payments crisis of
the 1930's.
When recovery took

Iowa —Conway

Conway Brothers,

and

reserves

stnetions give

Excheuige

MOINES,

such

gold

the mo3t essential imports,

producers

earnings

dollar

dwindling

signed

Add to Staff

created

prices and costs made ex¬
ports to the dollar countries espe¬

kinds. were in
Tradi-

«««

league.

personnel
associates

production
available*

been

inflated

?LCg"nofritheib extoiS forethtR

Conway Brothers
DES

have

able demand for imports; and the

Although it is in the interest of

League.

the

higher prices

should

that

Exchange Impediments to Trade

banquet of the

much

for export and

the world.

Seattle, at the

National Navy

deficits, but also
and costs."

of payments

The inflation absorbed

that each country benefits from

low

only in large bal-

fested itself not

which other countries

;,re~ lation of large liquid assets, was
the(fiejds in which they activated and intensified after the"
produce jWith relatively war. The postwar inflation man!-*
.'

mcomes

Witter

ad-* bank

the

credits

high

abuses

inflation-

formed

1951.

maintained

Offices

are

Mason

& Company, members of the New
Yor^ Stock Exchange. "
■

purposes

fronted with shortages

—foodstuffs,

(Special to The Financial Chronicle)

fuel,
<

MIAMI, Fla.—Paul M. Soupart

bas become connected with Savard
& Hart of New York and Montreal.

investment

exchange

ting

raw

of all kinds

materials

*nS international payments.

consumer

The extent to which the world

and
,

With Savard & Hart

be-

which

for

and in eliminarestrictions which

change practices

hamper the growth of world trade,

mean

was

presently

unhampered,

The
monetary reserves that
might have enabled countries to",
maintain imports until production
and
exports were restored had
been seriously depleted during ther
war
and -their purchasing power
greatiy . reciuced by the postwar

y s.

exports

the

from

imports

.on

accounting for about two-thirds of
world trade helped to restore their
competitive position. The revival
City and Rolfe, Iowa, in addition
•
Pessimism Decried
At the end of the war, most coun- of . monetary policy in 1951 and
refuse to be so pessimistic to the Des Moines office. The firm
tries, and particularly those of Eu- 1952 was a major factor in modbecause while it is late
it may is a-correspondent of E. F. Hutton rope and the Far East, were con- erating inflation and strengthen-

f ^onvertlblllty of curren- iati0n and expansion of credit."
exchange rates and

stable

trate

■I.dfci.'i'Vj

sources

A kins, who will represent the Hop^oines:,lowa.\,Also: Ken.ne.:h firm

sentially the further monetizing of
government debt and the manipu-

„

Edward M.

management

4w a

countries

North America.'

Service

Co.

be-

/ Its
ployment - o f rise in prices. The wartime infla-

Politics -beinS what they Conrad Kouri, Schiller Frazier
are\ Therefore, argue the pes- and Thomas Seymour, all of Des
money»' by which they mean es-

all

department of
&

connections

trade

the

again

bo™

freely

try to concen-

"Some people take the view moved to new and larger quarters
tbat the monetary situation, na- at 509 Equitable Building,
tjonalty and internationally, is so
The new offices will accommodeteriorated that the restoration date the expansion of registered
task

Convertibility Obstructed
"Yet

other,

™s is the famous gold-exchange
standard which has played much

■6

each

not to mention the year when the

from

borrowing

w o

First,

Easter, head
0f t h e bond
Dean

normal

tween Europe and the rest of the

high level of

enable

balances or sterling balances are Mr Easterj .<■.
a sound substitute for gold re- wb0 was nomF. Kenneth Easter
serves. It seems to me a dangerous inated by Rear
fallacy that the separate countries Admiral A
M
Bledsoe,
comcan cover their lack ol liquidity mandant 0f 'the'13th Naval Diswith debts from some countries or trie, j
national Vice-President

with the

profession of faith in the ultimate

real income in

annual-'

disagree
for
many
reasons
with Mr. Ed Bernstein
that reserves in form of dollar
also

international economic situation of

mined.

Mr.

banks

pating countries, I am afraid that
with
its
present
policies,
the
resources
of the I.M.F. will get

diture and to restrain the creation
bank

reserves of all
of the partici-

ultimate

central

t h i s

ability -1o world increased the dependence of

of the fr?e society of men.
am confident it will not
•V

and public

contributes

Navy Civilian Honor

credit-institution, but a common
the

government spending when there
an

gold

pool

reserve

pool

"(2)'The test of economic statesmanship is a willingness to reduce

„

spread destruction, these shortages

eco-

objective. The
,trade

help support the

amount of reserves.'

precise

extending
manner as the

credits in the same

mon

primarily
payment position rather than

ment
.

ronvprtihilitv
currencies,
r Award,
was
convertibility ^ree
convertibility of currencies.«g i v e n
F
on
a
strong The j M R was not meant to be Kenneth

'Currenrv
currency

depends

doing,
SEATTLE, Wash.—The Navy's
Bernstein par- while I submit that their re- highest civilian honor, the Navy
statements he sources should constitute a com- Distinguished

with Ed
on

made:
•

XI_

for

could be met only by imports, primarily from the United States andCanada, the two countries whose
of
trade are productive c a p a c i t y had been
a
barrier ft o greatly expanded during the war.
the
achieve-'At the same time, the disruption'

large commercial banks are

ticularly

objectives

Obstacles to the free flow

income.

be. Presently

I.M.F.

the

witness

subject to political contingen-

are

the

policy in every country is
maintain a high level of real

F. K. Easier Given

but we must recognize that the policies of the I.M.F.
cies.

despair

one

technicians,

its

It is indeed

search.

nomic

J ^.C. should fail in this mission,
for
would
I

ing and capable team of monetary

Bernstein

improving their financial policies, payments position,

:t and relaxation of trade-exchange restrictions.

in'favor

was

The author praises anti-infla-

reserves.

;

which we mean essentially to stop
inflation and restore the free convertibility of currencies. If the

semblance

policies of the participants' gov- f1**,1
ernments will' be, the less the'fai1IMF. will have to do, and the
better the management of its own

to those

realistic solutions to the problems'
of restoring monetary order by,

the I.M.F.
at the time it was created, but I
maintained that the sounder the

and

give

and

strong payment position rather than any

tionary monetary-credit policies and offers the fund's resources

entitled to
I.M.F. beThe maintenance

convertibility of currencies
only create serious maladjust-

Jacobsson

Per

Director

five years

already made in removing
Supporting this

progress

suggestion, Mr. Bernstein emphasizes that convertibility depends primarily on
precise amount of

One

...»

help accelerate the

exchange obstacles to the free flow of trade.

was

justification
to
change rates.

get two better men for its

management

mobilize the knowledge and
talents in the I.C.C. to recommend
the means by which the world can
hope to attain the aims we profess
to believe in. I fully realize that
it is a difficult job, but I submit
that only a body of men like this

But

standard.

everyone

ments

the

short speech that I doubt the

could

order to

The problem is

expect at the time the

Philip Cortney

the Chamber's

International

vrtnch comprises the elite - of
independent businessmen from all
gan to operate.
free countries, can have the: am°f stable exchange rates without bition to come forth with sensible,
ago

future than
international

by the by-laws
ternational
Monetary

the

should have been ended

national

"Let

means, or sometimes are mutually;
prejudices conflicting. It is high time that:

vided

of the Intelr-

16th

avers most of the great
high degree of de facto V
convertibility, and suggests sterling be made convertible in

trading currencies have acquired

;

not

waiting for to termitransitional period pro-

are

nate

Council

May 9

restoration

Leading international economist, in reviewing the improved
growth and redirection of world trade,

its

devote '

should

and

energies in the near

prepossessions

gold

the

against

■■Mhr

Chamber

There are deeply

intellectual

and

Commerce,

could

Fund

entrenched, unjustified

Chairmanof

there

portant

the

International Monetary

'«:'

that,
no more urgent and
im¬
job to which the I.C.C.

Monetary Fund.

ident of Coty,

respect.
V
^
strongly the view

hold

Cortney, Pres¬

in this

Research and Statistics Department,

arbitrary

Elect

ever

—

nationalistic

Inc.,

"I may be wrong but I do

the

By E. M. BERNSTEIN*

mounting budg¬
rightly,
singled out the United States
against

believe that the coordination of
the national monetary policies is

were

Fund

Monetary

cover

>» intricate and difficult, because of
; ,
political considerations and because people have been led to .
expect too much from their govI say too much, bepossible—politics being what they ernments
;;;
are
without either the restora- cause they cannot deliver.
tion
of
the
international
gold
"We have taken the habit-of
standard or without the rigorous recommending
goals which are }
discipline
of
the
International either unattainable by the present

rigorous
national

ets—and courageously and

the European common monetary order

market.

standard or the exercises of
"nterdiscipline by the Inter¬

gold

system

banking

the

part of government expenditures, t

of the International
Chamber of Commerce, at a meeting in Naples, discussing
International Monetary Fund, maintains present monetary and
credit policies wiH not permit restoration of free convertibility.
States Fund's problem's difficulties have been accentuated by
political considerations and people's dependence on their gov¬
ernments.
Terms international gold standard a remedy.
of

Chairman-elect

Ending Exchange Control:
Progress Toward Convertibility

recent

goods, and capital-

economy

has recovered from the
is indicated by

effects q{ the war

equipment," Because'of the wide-

the

—TT—'

trade.: In

-*An

tke

xvi

Mr. Bernstein - before
Congress, of tke international

address-by

SrM ^mew- V—rItali''

growth
:

the
,

Canada, the

" :

production and
United States and
.v,

rapid expansion Of

Volume

185

Number

5640

...

The Commercial arid Financial
Chronicle
•

»<

;

(2399)

NIAGARA

MOHAWK

New Issue

200,000 Shares

Preferred Stock, 5.25% Series
>

($100

par

value)

Price $100 per
(Plus accrued dividends, if

This announcement is neither

offer to sell

any,

nor

;

from May 28, 1957)

solicitation of

offer to buy securities,

The offer is made only by the Prospectus. Copies of the Prospectus are obtainable
from only such of the undersigned and such other dealers as may
■

■

offer these securities in the respective States.

Harriman

lawfully
.1

>
^

Ripley & Co.

Incorporated

The First Boston Corporation

Goldman, Sachs & Co.

Carl M. Loeb, Rhoades & Co.

Smith, Barney & Co.
May 22, 1957.

Blyth & Co., Inc.

Lehman Brothers

Kidder, Peabody & Co.
Merrill

Lynch, Pierce, Fenner & Beane

Stone & Webster Securities Corporation
•

White, Weld & Co.
"

)

The Commercial and Financial Chronicle ,*.i
16

Thursday, May 23/ 1957

(2400).

Expectations of New Oil
«

interest

sistance

the way to

the allpeak set more than 13
months ago. But again what
progress was made this week
was
almost entirely without
on

time

help from the long-lag-

any

gard rails.
—

has

Standard
little for so
long that ? a rather spirited
debate is underway currently
whether to concentrate on the
- neglected and deflated issues,
awaiting the day when they
will come into popularity, or
to pinpoint investment atten-

heavy overhead re- Brands, done so

the

*»■

the

been

•

'■

case

-f

■

present laws and regulations elimi¬

says

belief that the

Allen & Go.

today

Getty Oil, Skelly Oil, Mission

make

tical

Development/

vic° is offering holders of outstand-

for :^a>

{

v i

A better

emerged in considerable discussion of the "hot weather"

re-

being encountered is stocks — soft drinks, air conthat during eight ditioning, and the leisure

sistance

fact"

the

industrial

the

five

times

showed

cameras,

was more pronounced in
last two weeks than in

the earlier

ones.

highs con-

new

sistently outpaced the new
lows, mostly by a margin of
3-to-l or so, with the help of
assorted oils, utilities, a cou-

1.16

Drawing

traced the developments that

only $36.50. This 17% dis¬

occurred

'presumably would be

count

eliminated in

!, '

%/.,.,.

the leisure

days

have
the

subscription price,
.

associates

are

Net proceeds from the sale of
the additional shares to the stockholders and to employees, to the
extent that employees subcribe fox;
the 15,000 shares, are estimated at
approximately $2,400,000 and will
be applied by the company to the
costs of new construction in 1957.

pools and bucket shops and contrasted
today's
elaborate
prospectuses, containing complete in-

the

very

about new issues,

with

information of-

meager

'20s.

It is estimated that construction

circulars
for securities
pre-Securities and Exchange. Commission
days were
shown to the group to illustrate
how little an investor was told

costs to meet the increasing electrical power needs of the cornmunities served by the company,
will total around $9,197,000 in

fercd

time issues,;

investors

the

Sample

realignment has taken

bit of

the

from

formation

common

same

A1,

'20s" with their stock

"crazy

corporate

simplification.;

the

fercd

ex-

June

additidhalr l5,000
are: being ofcompany employees at

30>, W57
shares

Time

N; y

;So/al/:rihebegrroat£ changes°a'nd ^Taddli Ss'lo^old!
pTc™Tnhf?inancLlhwoerld!a He ers'of outstanding common stock,

Development share produced!
a market value on the latter
of

;

ire at 3:30

his 35 years' ex-

upon

May 20,

Subscription rights will

perience in Wall Street, Mr. Hard-

each /Mission-

Tidewater,

Steel, among the is-

last year place with Brunswick-Balke [
and early this year showed a
buying the half interest of
determination to forge higher Murray Corp. in their bowl¬
against any and all other mar- ing pinsetter business. It•
ket interests, was down to oc- helped more than double first
casional flips mar ket wise, but quarter sales for Brunswick;
the persistence with which it and converted a loss for last
ploughed ahead relentlessly year's first quarter into a net
that

SUes

side

constructive

that the

resented

jq shares held of record

bankthghtfsmess.

recent

levels, the indicated $44 rep¬

Bowling Boom Beneficiaries

*
Lukens

the

and

Corp.

lower than the ad- Marine, Carrier
of plus Fedders Quigan.

signs

was

Outboard

issues

This sparsity

vances.

the

motors,
this
Pepsi-Cola

etc. Included in

weekly score lineup are such as
un- and
Canada Dry,

the

changed

average,

outboard

advances fields

weeks

straight
for

Tidewater.

of the

measure

' ;

seasonal influence

The

Divergence Marked

'Issues

•

„

shares fights

common

^"J9currei?CYi subscribe for 166,997 shares at the
5
/ ny"?ia ^subscription- price of $13.50 per
t
?^are» on-the, basis of one share of
Harding r.-, ^
!\0
additional common stock for each
practiced by

long, the-test work was donje their ability to forge ahead , qrieV^p^iahy,
;ar|^
by issues outside the group-even in desultory markets, usually discounted a bit-in:: Charles B.
used in computing most of the Little conclusive has emerged market value. Specifically
insuii
ana
averages, so the painful prog- from the argument, however, Mission Development,\ior In-;
Kreuger,-The;, investment.. Assoress
which the averages hW
i
;
' stance, has as its; dominant - ciahon of New York: is comprised
Thermometer-Conscious
dicated wasn't entirely typical
asset some 5.7 million shares
of the over-all market. :

Offering

'•

holdings .of ^

matter, the

^bi t

a prac- r

Public Service Co. of New Mex-

...

Group

Underwrite

it;' al.

safe¬
guards pro¬

many

■

invest

Oil; As

tor's

Mission

" '}

provided

mendous

vided

and Tidewater

he recognizes
Partner of Smith, Barney & Co.,
his ethical duties and responsibilNew York City, speaking on May -ities
for
useful service to the
21 at a luncheon meeting of the .economy, Mr. Harding said, j Wall
Investment Street will progress and prosper
Association of as
it
justifies its "existence- in
New York, meeting, the needs of the nation
expressed the
honestly and completely, he said,
Senior

companies involved are

Corp.,

Harding,

The

tion

the possibilities
getting them all forged to¬
gether into a single, new oil
colossus following' the death
of one of the principals who
once
blocked
just
such- a
move.
i
■
>

Safeguards for Today's Investor

Harding

possibility of financial manipulations practiced in the
"crazy 'twenties."

Charles

com¬

only on those stocks that
for already
have- demonstrated
■

nate

hydra-

Getty

Skelly and

Charles

panies, plus

laboriously, inching sues have, like

ahead
into

So many of the quality is-

worked

Stresses

center

the

was

■*"

headed mixture and blends of

STREETE

the

Industrial

Colossus

In the oils section

THE MARKET... AND YOU
By WALLACE

;

through

sold

the

1957, and will aggregate $34,300,000 through 1960.
.
*

emptor" was the rule

how *'caveat

day.

Public Service Co. of New Mex-

ico is a general public utility
velopments, Mr. Harding said, engaged principally in the generahas
been
the
development
of tion, purchase, distribution and
sound
research and
investment; sale of electricity and in supplyOne of the most

impressive de-

;

counselling facilities.
Today in- ing
various communities
with
pie of glass issues and Gen- seems to have evaporated to a profit of an even larger vestors enjoy the benefits of ex- water. The company's operations
chip great degree. It is nearly a amount, Brunswickj appar¬ tensive research departments to are wholly within the State of
section.
month now since it posted its ently, is about to turn some¬ provide them with judgment and 'New Mexico where it serves «
*
*
*
knowledge for better
investing large area of the north central
peak above $110 and this fig- thing of a corner.
;'

eral Electric in the blue

ure

the

sales
than
tern

rilT,

^improvement of less Union Bagj for instance,
10%. The general pat-

quite

was

the

reverse,

than

was

third under last

expanded well. Standard, despite projections of earnings
of around $4 this year against

did
suffer a shade profitwise in
the first quarter but projections of 1957 profit approaching $3 still covers the divi-

slightly less than $3.50

dend

profits pinched although sales

year

last
which would also make

^ndi.date. f°r dividf"d
V .!,. !
?° f^hl?
in a range of half a

dozen,

fact,
held

points

16-point range dethe market gyrations

spite

around 40
In
1954 it has

since

ever

is one

of the

quality issues that still has to
go back to the
946 bull mar-.
ket for the

about

and

over

company

over,

peak

shares.

price on

the

makes

rities

good

available

a case

the

section of the list.

of inertia

investment
-

and

Exchange Commission,

this

views

[The
article

not

coincide

time

"Chronicle "
as

those

the

;
this

necessarily at any

with those of the
They are presented

of the author only.]

o£

the

in
member of the Spc-

Stock .Exchange

York

1940-41 and

cial

;

developed

Governors

Board

New

expressed in

been

HardCewhothwas^ha;rmanM«'f

$17 million from

source.

have

safeguards

AMF last year is

estimated at

Vegas,

in
southwestern
New
Total population of the

Deming
,

cigar making machinery was Surprise audits, capital requirethe mainstay. The difference ments, examinations for registered
representatives and other similar
between the two bowling sup¬

income

Los

and

by invest-

Albuquerque, Santa Fe
and the city of

cities

Particularly important, Mr.

profit to the company
once
its cigaret and

Mexico.

served

area

with

electricity

Committee charged with the

line broker or dealer.-

operating
and
net

equal

$2,040,138,
dividends

revenues
<

income

after

$1.14

of
of

preferred

per

common

Associated with Allen & Co. in
underwriting the offering to stockholders are: Quinn & Co.; Rau5^ ® ' oei£e ^ Sf '
Rogeis & Tracy Inc.

re-organiation of the New York
Stock Exchange in 1938, described
how the financial community had
developed its, own self-iegulatoiy
machinery to curtail the bordei-

total

had

$12,006,355

Taylor,

Joins McCariey Maff
ASHEVILLE,
^

C.-McCarley

Inc., members New
York Stock Exchange, announce
fhat Frank H. Woodson has joined
company,

them as a registered representative
in their Greenville. S. C. office in
the South Carolina National Bank
Lowenstein has been able
WASHINGTON, D.
Building. Mr. Woodson was forto post more comforting re- First Washington Corp. has been ment of the professional attitude merly with Investors Diversified
suits in the textile section formed with offices at-1300 Con¬ in the
handling of investment ac- Services for over seven years,

First Washington

than

of the

most

even

Qthers and
the

this

?eCOTd

management is on

statin|

the

trend8was reverse|
first
the

ter

c^rpet

are

down.

earni

the

Executive

Richard

with

Vice-Presi¬

Secretary.

and

previously

Bige.

and

Williams,
dent

botyh

Officers
Don F. Widmayer, President
Treasurer,

Both

Sade,

were

Kristeller

Co.

low-Sanford and James Lees

With Kostman, Inc.

& Sons last year showed earn-

ings
times
ment.

that

ran

the
•

two

dividend
.

require-

(Special to The Financial Chronicle)

LOS

ANGELES, Calif.—Howard

Pace

now

with

Kostman,

Inc., 215 West Seventh Street.

told

the

counts.

who

members of the Associa-

are

that

tion

they

had

young

men

ol
a

profession.
He emphasized the
great advantages they have today
oecause
they are more caiefully
selected
more
rigorously supervised and far better educated and
trained than the old-timers were.
As

long

make

States

is
will

believed
continue

Belljn Securities Corp. has

j,een

with

formed

wmiam

engage

officers

are

offices

City,
securities business,

street,

New York

Arthur

BeUin>

president, and Norman Holtzberg,
Secretary-Treasurer.
Both were
prevjousiy wlth Benjamin Zwaog

the
to

Eli S. Newburger

economic advances, the re¬

and
opportunities
the "Wall Strieeter" are tre-

sponsibilities
for

A. G. Bellin Sees,

their

power to complete the change
the
investment
business
into

United
W.

improvements have

made, Mr. Harding said the
financial
community must conC.—The. tinue to work toward full achieve-

securities business.

and

f ms

groupi

While many

been

Corp.

necticut Avenue, N. W., to engage

dis-

development of

the

with

complete

Harding added, was the careful estimate^ at around 300,000, and
supervision of firms by stock ex- that served with water at around
changes, the National Association 42,500.
of Securities Dealers and the Secu-/
For the year 1956, the company

where

elsewhere and it

present

year's high. The

professional attitudes
ment firms, he said.

well deflated are the textiles,
A Un-Squeezed Profit Ma er
carpe|. makers and, lately,
Standard Brands, for one, ^he
paper
shares where - a
pliers is that AMF leases its
was able to add nearly 20%
dividend * cut by
St.' Regis machines while those of
to
first quarter results
on paper was the chilling note,
Brunswick are sold. The lease
*

principle

closure

profit potential without, as year.
yet, too much market recogni*
*
*
tion of the fact.
Among the groups that are

of ■ part of the state, embracing the

and there has been acceptance

hasn't been in any jeopardy on moments of strength
American
Machine &
since. Such a stalemate is the Foundry; the prime competi¬
first since it tacked on 300% tor in the
pinsetter field, now
around for outfits that had last year and more than 100%
has run its bowling equip¬
materially improved their from the 1957 low earlier this ment into the largest source
results were so
thoroughly scrambled for the
first quarter of the year that
there
was
much searching
Earnings

Eli

Newburger,

partner

Vercoe & Co., passed away

May 10.

Volume

Number 5640

185

The Commercial and Financial Chronicle

(2401)

William H.Qore With

it.""
1

Public

Gurtiss, House & Co.
members

York

;

Idaho

changes,

and

have

a n n o u

need

with

firm

The company's

William H. Dore

been
for

the

who

has

„

Gordon
of J.

been

dent

Trustees

the

Board

College,

increase

nard
serve

Mr.

term

seven-year

25-member

Board

stockholders:

year.

"The

by the

1966

year

and

are

will

required to meet anticipated
planning accordingly."

in the follow¬

•'

1946

$131

$300

it '
Agriculture
Lumber

Mining

Manufacturing
Tourists, etc.

Trustees.

sources:

112

203

105

200
210

Morgan

since

President

1934,

since

and

Before

joining J. P. Morgan he was with
Guaranty Co. of New York from
1928

1934.

been

Previously he had

writer with the New York

"Herald

Tribune*'

the

and

New

Haven "Register" and an associate
editor

Current

Opinion.

graduated

from

School

Journalism

where he

was

Columbia

the

awarded

in
a

1920,

Pulitzer

Traveling Scholarship.

Lentz, Newton Branch
VICTORIA,
ton

office

Tex.—Lentz, New¬

has

Co.

114

opened

While

$250

________

to that of eastern Idaho and the
trends
of the entire service area.

$925

shown

are

Baseball:

Jr.,

William

arid

Donald Searles, Blyth & Co.,

Inc.

Edgar Grimm, F. S. Moseley

& Co. will be official scorer.

Noonan,

Two With

Continental
&

Illinois National
Trust
Co.,
Chairman;

game

the

vs.
the Municipals under
Joseph
Corbus, Brown Brothers Harriman
&
Co. Umpires will be Walter
Fitzgerald, Blunt Ellis & Simmons

.V'V

Stevens, White

(Special to The Financial Chronicle)

TAMPA, Fla.—Michael J. Lyons
and Clifford O. Turnbull

Hutzler.

are

now

associated with Stevens, White &

Robert

McClure, Inc., 617 Madison Street,

San¬

members

Co.,
Feeley,

the

Midwest

Stock

Exchange.

This

announcement

is neither

to sell nor a solicitation of an offer to buy
offering is made only by the Prospectus.

offer

The

representative

of these securities.

any

May 22.1957

318,000 Shares

The Grolier

Inc.

Society

Common Stock
Y
($1 par value)

residents.

The

company's detailed forecast for 10

Price $15.50 Per Share

ahead is about

years

follows:
Percent

Holm, Jr.

Increase

KWH

Sales—Domestic

183

KWH Sales—Industrial

KWH

Funds,

Copies of the Prospectus may be obtained in any State in which this announcement is
circulated from only such of the underwriters, including the undersigned, as may
legally offer these securities in compliance with the securities laws of such States.

177

Revenues

ATLANTA, Ga.—The firm name
Great Southern Mutual

V,'

baseball

New Issue

Plant Investment

Irrigation in Idaho makes farm productivity high—crops and
being almost equal in importance. Lumbering, on a
basis of sustained forest
yield, provides a steady income. Phos¬
phate extraction and processing are a major new part of the
mining industry, using large amounts of electric power. Income
from manufacturing is
only 22% of the state total, but is growing
rapidly; new industries are based largely on the
availability of
national
resources
and
climatic
and
recreational
advantages.
AEC activities in the state are
important and growing. Many
sportsmen and tourists, having discovered Idaho, decided to be¬

Great Southern Sees.
.

& Co.

Preston

is scheduled
Corporates under
George Wahlquist, Weeden & Co.,

Co.,!: Chairman;
William
N.
Murray, Jr., Illinois
Company;
Joseph P. Condon, McDougal &
Condon; and Willis L* Roberts,
Eastman Dillon, Union Securities

livestock

Golf: Clarke J. Robertson, Bache

Incorporated;

between

&•

Co.

52%

come

McNurlen, F. S. Moseley & Co.

these

Street, under the management of
Dion R.

$608

Dividends: Matthew J. Hickey,
III, Hickey & Co., Inc., Chairman;
Thomas A. Lewis, Stifel Nicolaus

Hemphill, Noyes
Chairman;
William
O.

figures are for the state of Idaho—instead of the
company's service area—the economy of eastern Oregon is similar

branch

Constitution

East

Total

vice-

1943.

ders,

Mr. Wasson has been with J. P.

Witter,
Chairman;

Ellis &

Lunch-Dinner:

George K. Hendrick, Jr., Blunt
Simmons; Burton J. Vin¬
cent, Burton J. Vincent & Co.

Fabian
&

Allyn
&
Co.;
Donald
T.
Fletcher, William Blair & Co.;
Bernard
J.
Cunningham, Blunt
Ellis & Simons; John J. Markham,
Hornblower & Weeks; Edward W.
Liphardt, R. S. Dickson & Co.;
and John F,
Detmer, Hemphill,
Noyes & Co,

Salomon Bros.

122

-r

Robert

Investments: William M.
Witter & Co.,

My¬
ers, Stone & Webster Securities
Corp., Chairman; Gordon Bent,
Bacon, Whipple & Co.; Blair A.

Walter A. Hintz, Stone & Webster
Securities Corp.; Justin T. Ottens,

$333
.

Co.,
Snyder, A.

Bank

27 .•!

___

James

1946-56

1956

••

Entertainment:

% Incr.

1916

Weeks.

Dean

Presi¬

reasonably be expected to continue
durjng the next 10 years. In terms of the
generating capacity, We ; believe a! four-fold

Harriman

growth

ing figures, for millions of dollars income from different

the

rapid increase to $2.18 last

Leonard,

Phillips, Jr., Baxter & Co.

Chairman;

can

will

Wasson

the;report

Lake

Chairman of the event

Arrangements: G.
Brewer,
William
Blair

company's hydro plant.

The growth of the state's
economy is reflected

by Samuel
R. •'
Chairman of the Bar- s

Board.

electric

customer needs

announced

was

Milbank,

stated

Ripley & Co., Inc.; Joseph. T. Fuller, William A. Fuller & Co.; O.
H.
Heighway,
Hornblower
&

George B. Torrey, McCormick
Co., assisted by Robert I. Kelley,

•

accelerated pace

company's

College

Barnard

Roach

Club,

Chairman;

Richard

373,000 kw is

irrigation

the

Bond Club

Members of the field
day com¬
mittee are:

enjoyed remarkable

during the past decade

Wasson, Vice-Presi¬
Morgan & Co., has

elected

for

Knollwood

Co.; Donald €.
Nuveen & Co.

Harriman Ripley & Co.,
Inc., Carl
H. Oilman, Dean Witter &
Co.,
and Milton S. Emrich, Julien Col¬
lins & Co., Vice-Chairmen.

domestic, 13% farm,

industrial, and 9% miscel-

are

that time there has been

dent

30%

were

18%

growth, present reve¬
being between three and four times the
prewar level Share
earnings were irregular during 1946-52—the
$1.38 earned'in the
latter year being almost the same
as six years
earlier—but since

R. G. W ass on, Trustee

Of Barnard

Pocatello, Twin Falls, Nampa

present generating capacity of

Power has

The

nues

Cleveland

■"

Nevada.

sufficient

are

Idaho

Singer, Deane & Scribner,
Columbus, Ohio,
for Stranahan, Harris

manager

northern

the

Forest, 111.

reliability Of the Snake

Niagara,

water

for¬

was

In the past he was

Co.

than

business

years

of the

manager

office of

Dore

investment

than

merly

Boise,

and

•:

350,000

standby steam plants being necessary because
River. The Shoshone
Falls, higher
located in the south central
part of the state.
Some distance upstream
nearly all1 the waters are diverted to
irrigation during summer months, at which time the
Falls dimin¬
ish; however, spring water and the return flow of
of the

departM

are

Revenues in 1956

entirely hydro,

the

ent.

served

Oregon

The average residential electric rate of 1.680 per kwh
compared with the U. S. average of
2.580, and the annual usage
over twice the national
figure.

municipal*
bond
s

eastern

lanjbous.

man¬

ager

cities

Caldwell.

their

Idaho,

population

Trophies: Robert G.
Berry,
Hornblower & Weeks,

Chicago will hold its 44th an¬
nual field day on
Friday June 7

of 5,995 kwh was

associated

now

Annual Field Day
CHICAGO, HI.—The

Witter

Malmquist, John

electricity to

9%| irrigation, 21% commercial,

or e

supplies

that William
H.

southern

principal

x¬

Power

Dean

Chicago Bond Club

111A \

Idaho Power Company*

ji d
Midwest
S t

)t v * .«
T
7
*

By OWEN ELY

the New

Build¬

merce

ing^

Utility: Securities

CLEVELAND, Ohio — Curtiss,
House & Company, Union Comt"

Sales—Agriculture

Dominick & Dominick

Inc., William Oliver Building, has
been

Great Southern

changed to

Inc.

Securities,

The firm maintains

branch of¬

fice at 238!2 Pine Avenue, Albany,

Ga.,

under

the

management

Paul J. Lewis.

Now Riviere,
firm

Co.,

name

Inc.,

Marsh

C. — The
of Colson, Marsh and

WASHINGTON,

1852 M. Street, North¬

west, has I been changed to Riviere,
March &

Co., Inc.

AREA RESOURCES BOOK
explains why the
area

offers

serve

much

opportunity
to

industry.

Write for

FREE
COPY
Box 899,

Dept. K
Salt lake

City 10,
Utah

Idaho Power has been in the limelight over the
past year or
two because of the issue over "Hells
Canyon." There has been a

long drawn-out fight between the advocates of public and private
power over the question of further development of power on the
Snake River, important tributary of the Columbia. Advocates of
public power are anxious to build a single large dam at Hells

Canyon, while Idaho Power proposed instead to build three smaller
developments (Brownlee, Oxbow and Hells Canyon) at a combined
cost considerably less than that of the
government project.
Idaho

view the decision of the Court of
Appeals

upholding the Federal
license, and affirming the commission's finding that the three
projects are best adapted to a comprehensive plan for developing
this section of the Snake. After
receiving a license Idaho Power
immediately proceeded with the construction of Brownlee, which
will be the second highest rock-fill dam in the
world—missing the
record held
will

Kidder, Peabody & Co.

Corporation

Incorporated

Lehman Brothers

Ball, Burge&Kraus

Smith, Barney & Co.

George D. B. Bonbright & Co.

Hemphill, Noyes & Co.

Foster & Marshall

Schwabacher & Co.

Reynolds & Co., Inc.

Power

finally received an FPC license and the U. S.
Supreme Court recently denied a petition (filed by the National
Hells Canyon Association and other
public power groups) to re¬

dam

The First Boston

Japan by, just

"on

the

line"

one

with

foot.

This

announcement

out

offer to sell nor a solicitation of an offer to buy
offering is made only by the Prospectus.

of these securistts.

New Issue

May 22.1957

$2,500,000

The Grolier

the

ultimate 1,175,000 kw over-all development.
The three dams will be extremely
cheap to construct as com¬
pared with many others where the terrain is less favorable—the
cost will average only about $168 per kw—not much more
than

any

The

Sometime next year the

360,000 kw capacity

is neither

Society Inc.

5% Convertible Subordinated Debentures
Dated

Due May 1, 1967

May 1, 1957

modern steam

plant. (Oxbow is estimated at $142 and the other
two at $176 each). Work is
proceeding on schedule with 2,600,000
cubic yards already moved. Meantime public power advocates are
making a last-ditch effort to pass a law for construction of a Fed¬
eral dam at Hells Canyon, but it seems
highly unlikely that the
measure can pass both houses
(it passed only the Senate last year)
and survive a probable veto. Idaho Power has a favorable
regu¬
latory set-up and enjoys strong support in the state of Idaho from

in states in which the

farm and other local organizations.

securities and in which the Prospectus may

The stock has been
this

Price 100%

and accrued interest

Copies of the Prospectus may be obtained from the undersigned only
undersigned is qualified to act as a dealer in

legally be distributed.

selling recently around 38 (up from 29 V\

year), having joined in the substantial recent advance of other

growth utilities.

Paying $1.40, the yield is 3.7%

earnings ratio is 17.3.
$2.25 for 1957 and

President Roach

equity ratio of 34%

ings will include 620 credit for interest

and

has forecast

the

at the year end.

price-

earnings of

construction.

Earn¬

Dominick

The Commercial and Financial Chronicle
18

Thursday, May 23, 1957

...

(2402)

Best
Opportunities

Industries Offering
Investment
K

defends

Furthermore,
although
automation
reduces greatly the
number of employees needed, yet

spare

Among these,

opportunities.

best

the

following

the

the lead¬

needed

ers.

The Oil

graded.

Automation for many
years will barely offset the possi¬
ble shortage of labor under pres¬

Industry, rep¬
resented

•

Chemical

si d

Irt-

slowly creep

r y,

which

the

American

Agricultural
Co.,

looking

one

best.

the

conservative

and

Na¬

in both the Navy and
Army. This should offset any in¬
crease
arising from the growth
of bureaucratic government.

S. Radiator perhaps the
speculation. Electronics and
Thermodynamics, with Westing-

best

Iiouse Air Brake perhaps the best

speculation.
the

most

conservative

most

Microwave

The
which

will be

but they must work harder
by having double

ries,

to earn the same

Products of Los Angeles
and the Motorola Co., of Chicago,
Hughes

of
television, and by proper grading.
are
atnong the leaders.
Greeting
Anytime there may be discovered
Cards, with a Gibson, Hallmark,
a
completely new revolutionary
or
Norcross trademark.
The
system of education. Colleges will
Broadcasting of Power for small
kitchen utensils may be

the

Reasons for the
There
which I

and

Shortage.

retirement

65,

This will

growth.
the

strengthen

This will further
power
of Labor

but

under

securities
any

unemployment,

for sale,

circumstances
or as an

formal

creeds

and

religious dogmas. Denom¬
inations are meaning less to the
coming

but automation will be so expen¬

This

people are giving less

young

attention

cause

automobiles.

the old

(2) Automation. At first glance
should

facilities

(3) Community Churches. The
Church is the hope of America,

Unions.

this

parking

providing

generation.

he construed

offer to buy,

or as a

I forecast

offering of these

solicitation of

offer to buy,

of such securities. The offer is made only by means of the Offering Circular.

and

could

Telephone

4 Vz %

mortgage

and

50,000 Shares

Tilmore

May 21

its bid

the indicated

which

banks

are

expected

on the
puzzlement.

side lines was one of

$163,500,000

its

stock

common

Telegraph

the proceeds to repay

use

lar

borrowings

simi¬

with

connection

had

extensively by the company

used

its

construc¬

1956.

have

will
outstanding funded debt
the

bonds

company

$550,000,000.
All of the com¬
pany's outstanding 10,113,000
shares of $100 par value common
stock are held by American Tele¬
phone and Telegraph Company.
The new bonds are redeemable

15, 1959,
May 15, 1961
thereafter at prices decreas¬

105.75%

before May

106.755%

and

Issues

before

May 15, 1986.
The company's service territory
covers
New
York
State
and
a
area

March

in Connecticut, and

1957, it had 7,143,947
in service, of which
70% were in the New York

31,
telephones

area.

Operating
revenues
for
1956
$822,309,740 compared with
$752,068,405 for 1955.
Total in¬
before

interest

deductions

$94,865,005 for 1956 and $84,-

722,006

the

preceding

appeal-decision
the petitioners

tion

and not

activities

are

do¬

frequently

maintained

has

The Govern¬

investments.

the

are

they necessarily

to foreign

ment

that

nor

new

apply
mestic

corpora¬

the activities of its share¬

holders; i. e., an alter ego.
The
implication of this case should
mean
that
Americans
through

in¬
vest, organize and do business in

Canadian

corporations

may

Canada without United States tax

It should

reassure

the taxpayer

of organized for¬
eign corporations he can select
the better legal way to insulate
himself in a limited, legitimate

that

means

in
pursuing risk-taking investments.
American

from

degree

Since

1951

there

has

taxes

been

tendency for Canadian blue chip
stocks to sell at a lower yield and

higher price-to-earnings ratio
than
comparable stocks in the
United
States
due
to
investors'

Canada's remarkable

potential economic growth
Consequently, such equities

come, on
on

the

the whole. The premium

Canadian

discourage
dian bonds

STOCK

EXCHANGE

STOCK

EXCHANGE

can

dollar

serves

investments in Cana¬
so long as the Ameri¬
at a discount

remains

(Special to The Financial Chronicle)

AMERICAN

LOS ANGELES, Calif.—William
Bradford
is
engaging
in
a

—since it does cut into the actual

yield.
tection

To remove lawful tax pro¬

might

securities business from offices at

discouraging

639 South

tal

Spring Street.

Canadian

National

Gross

billion

$4.5

was

1936,

about $30 billion at pres-:

grew to

ent, and is expected to reach $76
billion

Our neighbor to

by 1960.

the north

the fourth-

now

largest trading nation in the world
and the sixth greatest industrial
in

nation

output

terms

manufacturing

certainly

and

—

has

not

stopped developing.
ore

1956

Mines,

bought
Steep

million

Iron

not

was

to the United States

but

1937,

around

Rock

iron

item

tons.

of the two

one

Canadian corporate entities in the
tax

and

tons

United

the

dozen

Canada

States.

Barely

the mine lay
beneath the bed of
ago,

years

buried

mills

steel

the

ore

shipped over 3
high-grade iron

controversy,

million

deep

wilderness lake. The production

of oil

about 7 million barrels

was

and

1936

creased

been

has

now

million

170

in¬

barrels,

years

formed with offices at 294 Wash¬

YORK

rising

living.

achieving first place in Canadian

require an investment for the longterm rather than for current in¬

MEMBERS
NEW

Product

minerals

rate.

W. D. Bradford Opens

1980, has enjoyed

standard

The

esti-

subterfuge to hold one's in¬
vestments in other companies.
not

BOSTON, Mass.—Investment
Company of Boston, Inc. has been

Co.

and

repercussions, provided, of course,
these activities are bonafide and

response

today,

likely to reach 26.7 mil¬

lion by

year.

Joseph Furst is

million

export

New

tries, Canada's population, which
grew from 11 million in 1935 to

Canadian

Not

Are

of the issues decided

Some
not

Upon completion of the sale of
new

acted

have

the

lost

been

program

the

(It is probable that

in the Tax Court.)

which has involved
expenditures totaling $928,000,000
during the five-year period 1952-

tion

forcefully

Canadian

the

assess

would

Canada

been

have

efforts

firm involved.

borrowings.

Bank

his Ambassador to our
State Department,
that Canada
did
not
support the Treasury's
through

Co., parent company, at $100 per
share' on or about June 28 and

ington Street.
principal.

Maltz, Greenwald

reac¬

Canada's standing

tion

The

stood.

Canada

and

resources

develop their associated indus-

16.5

matters as

clear

help

proceeds are received.
pany

mated

not

where

were

be obtained from the undersigned.

bilat¬

to unlock abundant

did

Investment Co. of Boston

may

tax

the

permits

which

agreement

special

development ventures. By helping

openly

eral discussions of disputed points

and

Copies of the Offering Circular

provisions

acted

smelting, refining, forest and other

protest via the con¬

directly

These

States-

United

the

when the
Prime Minister Louis St. Laurent
The com¬
did, however, protest indirectly,
also expects to sell 1,400,000
to

amount

in¬

convention.

tax

sultation

toward
repayment of borrowings from

the

Numerous

did, too, such as the
capital gains tax in

incentives and encouraged invest-l
ments in the more risky mining,

pro¬

Canadian firm is

The refusal of Canada to
and

coupon.

metropolitan

per

ownership and

under

Canada

be applied by the company

was

volved

proceeds from the sale will

The

come

Price

101.113 for

countries.

interest

yield approximately 4.40% to
maturity. The issue was awarded
to the group at competitive sale

about

(£1 Par Value)

absence

yield differential between the two

investments

motion

in¬
cludes all of the larger New York
State cities except Rochester. On

Common Stock

and

development.

other factors

small

Corporation

status

Canada, and the interest rate and

where

ing annually to 100% on and after
May 23, 1957

New Issue

investors'

in
tax

fi¬

priced

are

accrued

the

nomic

conceivably

country has the right to levy taxes

refunding
bonds, series J,
Co.

bonds

The

1991.

101.755%

re¬

doubts

understanding of
laws, which until this case
was
not
in
such danger of
re-'
versal, has assisted Canada's eco¬
tax

our

the

effect,

raise

long

Development

nancing, particularly as to which

public sale yesterday (May 22)
new
issue of $70,000,000 New

York

tax

international

for
a

minds

offered

underwriters

associated

mained

Canadian

The customary

Internal

assessment

control.

Revenue

Telephone Go.

significant changes in foreign
risk-taking activities.

of the Govern¬
to interfere

unintended

case.

tax
treaty would be re¬
quired in order to avert probable

attempt

and

seen

lane"

than in the sale of

factors which will offset the pop¬
ulation

soon

ing off. There will be more money

other

and

accidents

with greatly in¬

highways, the
automobile industry will be level¬

of education and for

years

downward,

creasing

industries:

continue due to the desire for four
more

national

this

tional

subject private inter¬
capital-flow 1 to unfore¬

and

made

individuals

the

international tax conven¬

tion,

Offers Bonds of New

arm

would

incorrect

being

was

contention, then changes in the
statutory law
and
the
interna¬

circles, and remove
an
administrative-

that

adjudicatory
ment

Morgan Stanley Group

American Telephone &

automobile

turn

factors

considering in select¬

Labor

day schools with elaborate

(2) Automobiles and Parking.
Unless the * trend for larger cars

Selections

basic

and

parking facilities.

Above

four

are
am

ing these
(1)

use

schools

residence

become

Corporation

Radio

America.

cease

further

the

sessions,

developed

fear

indicated

Had the Tax Court accepted the
Internal Revenue Commissioner's

^pronouncement should
to have a salutary effect

in investment

with

necessity. Not only
will teachers receive higher sala¬
considered

purchase.

Industry,

Watch

Education

Higher

(1)

speculative and Inter¬
Harvester
perhaps
the

national

This

all cities.

& Co.

not

the least tax lia¬

bility.

devel¬

that

other

any

as*
involved
incorporate
their
Own
portfolios.
This the
Court emphatically ^showed
was

penalized for electing the
or legitimate procedure

that carries

dispute

attempting

Were

legal

the

due

Other Trends to

Earthmoving Ma¬
with Caterpillar Tractor

though

taxwise
procedure as against
another. Nor is a taxpayer to
one

■s

tax

writer

the

advantages

■

Stanley

This

relative

variety stores, and the up-to-date
"dime store" in the dense down¬

Morgan

deal

business

any

violations

legal

kind.

evaluation

prove

York

account

into

here, of course,'
illegitimate tax havens,

the incidence of taxes and the

oped, there will always be a field
for self-service speciality stores,

town districts of

taken

almost

appeal more to men who have not
the time to visit shopping centers.

bar¬

expenses

tional U.

Government's

War III, should hold
fairly steady.
The development
of missiles should reduce defense

Radiator & Standard Sanitary

chinery,

metropolitan cities will gradually

this

anything

for

In the present day,
of the first considerations

one

population
grows
and
working hours lessen, the time
given to sports will increase; in
fact, the sale of sporting goods
will increase. Stores in downtown

self-service properly

No brief is made
in favor of

liability.

{

working

ring World

Heating by uranium, with Ameri¬
most

resulting

(4) Government Expenses,

Household

the

firms, architects, etc. The
population
definitely
will increase, attracting churches,
YWCA's and other organizations,
as
well as retail stores.
As the

With

by Tax Court's Decision

tinguished from individual

now.

Florida,

can

us,

Chemical
Roger W. Babson

gradual increase in the cost
of
living.
Of course, if World
War III should come, the value
of the dollar will drop from 50
cents to 25 cents, but I am not
in

•

con-

e r

(3) Inflation. We ought to fight
inflation in any form, but it will

The

panies.

conditions.

ent

the

any

large com¬

the
employees
will be considerably up¬
of

quality

seem

•m'..

only

slowly.

time trying to
decide what industries have the
used

that it will come about

sive

the past winter I have

During

Removed

companies,

insurance

for

suburban

shopping centers.

automobiles, churches and

Threat to U.S.-Canada Investments

legal

suggestions of industries possessing best investment oppor¬
tunities. Other trends commented on by Mr. Babson include
future

will

Shopping Centers for retail
will be followed by brain

centers

his

the

Churches

municipal
playgrounds, lakes, rivers, etc.
(4)

England business analyst offers and

adjacent

page

large
different-

people

denominations.
located

stores

Well known New

number

BABSON

By ROGER W.

attended

churches

Continued from

community

growth

great

away

and

tantamount
directing

from Canada.

capi¬

terms

value.

Ten

Canada produced 7% of

ago

its oil needs, now it produces

80%

despite a tremendously increased
consumption.
The major

part of non-resident
has

investment

direct

the United States.
War

from

come

Prior to World

II, United States investment
was almost $3 billion;

Canada

in 1945 it

and

close to $5 billion;

came

but in 1955 it

(the

was

over

1956 data
should

available)

$10 billion

still

un¬

over

$11

are

reach

little prospect for
change in pace and volume for
1957—particularly in view of the
Court's
April
decision
which
billion,

with

should

overcome

hesitancy
oped

that

the

since

any

may

investor

have

initiation

devel¬

the

original tax claim in the dispute.
share

Canada's
can

of total Ameri¬

capital invested abroad is the

largest for
Canadians

any

single country. The
invested

have

75%

their capital needs which together
with the foreign in-flow amounted
in

the

quarter

past

year

their

Product. This is

nearly

one

one-

National
of the largest,

Gross

Volume 185

Number 5640

The Commercial and Financial Chronicle

(2403)

the

not

largest, capital invest¬

ment rates

Another

At the end

toleration

Hot

free country.

any

Consideration

appraisal

ana

under

case

intangible

fluence
icies.

tax

our

Thus,

that

our

in other countries.

tax decisions

The American

Canadian

effort and money in our

in¬

reality of possible

repercussions of
stake

should

securities

had

have

could

have

foreseen

invite

could

retaliation.

create

most

for

prospect

All

this

nist

I up

speed

Canada's

eco¬

nomic growth just as British and
other European capital helped
•

speed

our

growth

own

rate,

particularly in the 19th century.
The present complicated structure

of tax laws, however, does provide
one
marked difference;
i.e., the
intentional
fects

and

unintentional

ef¬

the flow of capital did hot
into
international
invest¬

enter

decisions

ment

specialization

international

and

then.

that

dif¬

ference international development
was not as impeded as it is today.

Today's

key

man

war

was

pealed

not

will

case

known

The Government's

sion

whether

must

made

three-month
cision
of

the

will

within

appeal

the

usual

period after the de¬

entered.

prerequisite

entry of the Court's deci¬

facts

the

case,

Saud's

now

our

most

visit

should be appealed

why the

case

by the Government.

has reestablished investor tax

cer-

be allowed to serve

government

useful

the

steps

one

diplomatic

home, heads and
him.

see

true—con¬

Middle

not

ample .is

key

East

^Generally,

Allyn

effort—and

money—into

Soviets have launched

an¬

their primary purpose is
probably to drive a wedge be¬
tween

Western

and the
The internal reor¬

which they

barking is

Europe

one

the

are em¬

im¬

most

portant changes since the Bolshe¬
vik revolution. It is reasonable to
that this

suppose

his

father..

occupies

now

winning acceptance for it.
same

prime objectives—we have

Arabia against

decision

his
to

own

bury

time—and that is

one

made progress in isolating Nasser.

Despite his substantial victory in
Suez dispute, his influence in

the

key

the

Arab

That is

states

has

gain for

influence

us.

can

diminished.

If Egyptian
confined

Egypt, it will not make

an
address "by Mr. Liadriey at
Anniversary'Meeting of "News¬
week," Dayton, Ohio.

prize,

25th

//''

spots

dustry

will

course,

and

thesis

•rjEW

V' V

fabulous

threatened; by

infiltration

7his announcement is neither

ISSUE-

and

was

of education than
the
Germans when Hitler took power
them

over

measure

and

the

offer to sell

Realistically, I
in

the

and

6% Convertible

Due

QUINCY, 111.—Louis B. Craft
has joined the staff of Hess Invest¬
Company, 721 Maine Street.

Miss Craft

was

PLUS

Copies of the prospectus

may

ACCRUED

ally

into

evolve

tolerable

something

least

less

Now With F. I. du Pont
(Special to The Financial Chronicle)

DIEGO, Calif.—Ralph W.

Olson has become connected with
Francis I.
du Pont &
Co., San

ment

while

still

had

monopoly.

atomic

But the evolution which has
curred

sufficient

not

far in the Soviet Union

to relax.

cause

oc¬

give

just
against

are up

28.

'Di^go Trust & Savings Building.
He'

was

11th

Parker

Jr.,
of Shearson,
Co.,
will
include
lunch, dinner, a tennis tournament
and
a
golf tournament with a
&

permanent trophy to be presented
for the first time to the winner
of the

low gross. There will also
other special events to be an¬

nounced

adversary, who is
growing in industrial power and
modern

weapons.

the day of the

that

wrote

regardless of the

(Special to The Financial Chronicle)

SAN

FRANCISCO, Calif.

Wendell

future of Communism—and many

Co.,

thoqght fhen that it would evolve

Hutchinson

—the

investment

rise

of Russia

indus¬

trial state would alter the balance

years

historian-journalist foresaw
struggle for control of the globe

between

States.

Russia
He

same

it:

vik

that

saw

the

struggle

terms in which

United

May

or more

even

1957,

Kidder &

before t

Karl Marx wrote Das Kapital.
We hear much about the rising

nor a

solicitation of

offer to

with

Co.

Harry

FROM

MAY

brokers

are

May M

other dealers
as

brokers only

dealers in securities, and

be legally distributed.

formerly with Walston &

Co.

Gregory & Sons
Rauscher, Pierce & Co., Inc.

Loewi & Co.

Straus, Blosser & McDowell
'

lrv,n9 J-

,R;C.iiCompany

Incorporated

Lester, Ryons & Co.

Incorporated

Fairman & Co.

C. F. Cassell & Co., Inc.

Lentz, Newton

Mid-South Securities Co.

—

Harry

was

Maisel

Effective

Barton,
the

Co.

appointed Co-

office,
Myles,

buy these securities.

1957

qualified to act

the

many

Appoints

Fla.

presently classified

Debentures

of the undersigned

Mr.

Manager of that

May 1,1957

any

—

be¬

Bradenton, Florida office of A. M.

before the Bolshe¬
and

for

with

recently

was

been

has

business

Registered Representative in

now

between tyranny and
And he wrote that 80

Revolution

who

BRADENTON,

as one

freedom.
years

and

Building.

Russ

A. M. Kidder

eral
a

Inc.,

has

Waldron

with

Investment Co.

world power.
A century and
quarter ago a great French lib¬

of
a

Hutchinson

associated

come

Cruttenden, Podesta & Co.

„

outing.

Now With Waldron Co.
V-

When I visited

A. G. Edwards & Sons

...

York

Hall,

Hammill

Hooker & Fay

■

New

annual

The entertainment and sports
to
be
arranged
by> A.

William R. Staats & Co.

Outing

events

formidable

the

Dempsey-Tegeler & Company

outing will
Apawamis Country
Club, Rye, N. Y., on Friday, June

danger¬

That is the basis of the policy
of containment—which continues5
to be our official policy. Had we

Association

that

ous.

Higginson Corporation

Blewer, Glynn & Co.

de¬

be held at the

previously with A.
Lee

now

jljams of W. C. Langley &
Company, President of the Invest¬

tion, that the Communist regime
in the Soviet Union would
gradu¬

INTEREST

in states in which such underwriters, dealers or
in which the prospectus may

are

It has been announced by Mait^
land I.

Our policy for 10 years has been
based on the hope, and supposi¬

May 1, 1977

be obtained from

G. Edwards & Sons.

SAN

Annual

Our Supposition About U.S.S.R.

(Special to The Financial Chronicle)

ment

than

Invest. Assn. of NY

followed, in due
further decentraliza¬

Price 100%

will

V:.,

Arthur M. Krensky & Co., Inc.

Joins Hess Inv. Co.

our

ment.

Subordinated
Dated

with

prospect

that

de¬

to Staff

previously

see

defense—including
foreign aid, diplomacy,
intelli¬
gence, and overseas information,
as well as our
military establish¬

with

Reynolds & Co;, 39 South La Salle

to devote less effort

money

voting to

$2,750,000

CHICAGO, 111.—Joseph P. Dal-

sec¬

sort

same

visible future

be safe for

is made,-only by the-prosptciui.

ton has been added to the staff of

was

The

Conclusion

INDUSTRIES. INC.

launched the

Union.

•

(Special to The Financial Chronicle)

Street.

and
war.

thing could happen in the Soviet

Hallgarten & Co.

Reynolds Adds

striking refutation of the

that

Company,

formerly

government.

in very recent

are

Incorporated, 122 South La Salle
Street.

self

had

average

see

Indonesia

are

Indonesia is

Communist

much

East, two of the most

troublesome
and Laos.

history

have

tion of political power.

the
The Far East
In the Far

old

difference who rules that country.

re¬

So¬

centralization in the control of in¬

and

our

the

pliant tool of

•From

the

Syria hnd

At the
no

ples

tension, al-(

though

the Soviet Union years ago, during
the first Five Year Plan, I thought

progress

experience
And

ond world

and in

position. He is unlikely to go with
all the way. But he has long
been disturbed by the growth of
Communist
influence
in
Egypt

His

ex¬

hearten the

have made good
in explaining the Eisen¬

gime.

CHICAGO, HI.—Martin Ar' McDevitt, Jr. has become associated
C.

South

are putting a good

hower doctrine in the Middle East

man

diplomacy.
He
is
a
—
although perhaps

shrewd

succeeds, his

likely

perhaps also in Egypt.
-

man

knows that he

are

refu¬

part -of his
resettled elsewhere.

if Hussein

growing class
of industrial managers.
But " the
Russians are a people with little

(Specialto The Financial Chronicle)

Is¬

threat

new

to relax international

western

•

with

deter

Palestinian

represent pro-western elements in

King Saud is
American

country

They recognize

that he has become

the

But

tatives of other Arab states have

gees

have recently taken. It is
signifi¬
cant: that
since
King Saud re¬
turned

the

education

;r-

•:

With A. C. AHyn & Co. - ^

not

sent to

guide for

as a

f American investors.

despatches—that the

was

unless

can

The decision

tainty for bonafide investment in
a
foreign corporation. It should

war

impartial observers think that he

Washington

Saud

rael.
Washington was confident
that Israel would not take the ini¬
tiative in provoking another war

regarded by high officials

valid

reason

Com-f

their foot¬

other of their recurrent peace of¬
fensives. Undoubtedly they want

struggle
unpredictable con¬

some

Fleet

partitioned

—although Israel could hardly be
expected to stay put if Syria, Iraq,
and
other nations grabbed por¬

and
Syria, and he is aware of
Egyptian-inspired machinations in I

Sixth

the

the author be¬

lieves there is

The

free-for-all

with

trary to

little

f Several—-why

King
is

dec!-, shrewd

sion will be the approval of a Rule
50 computation.
In view of the

least

risk.

thijs

not

The

not seen some hope for evolution
the support of King Saud of
Saudis tions of Jordan.
the
Communist system,
Arabia. This is one of the reasons
Whether Hussein can stabilize ,in
we
-—but only one of
Jordan is an open question. Few should have come to grips with

ap¬

this

writing.

acceptable

hand,

<!:ould

sequences.

in¬

The

loyal and moved just
in time to frustrate the
coup.
He
was greatly assisted
of course bV

The

other

locally,

long

favorite

the situation.

this

Jordan

leadership and
Saud
suddenly

Jordan

the

—at

not

is without

Whether

manipulation.

was

the

tion of

King's, General Nuwar. The King
finally came to realize that Nu¬

gone

own

ago.

process

international investment
climate in most trading nations of
the world is difficult enough as it

introducing, on our
initiative, tax impediments.

backing

was

But Hus¬

country

LincUey

filtration and

Our p r i vate investment lias

helped

display

that

apart.

at the present time without

was

Ernest

international
•

fall

ago,

weeks

•

public

his

months

had been
planned fbr

castigate Socialist economies
for doing directly when in pursuit
of their doctrines they outlaw pri-

Mediterranean, and

expected

soon

made

camp

growth and bring about that which

undertake

generally
would

sein's

o m m u

ganization

Syriangyptian-

economic

outlays.

the

vate initiative and investment and

pose

United States.

few

viet Union and the

weak and ob¬

country.

Only

standard

do about

we can

have retained

by offering Jordan financial aid.

coup

definitely

unhealthy

world

"vital," by sending the Sixth Fleet

would

Laos. r'v.

impor¬

helped

to the Eastern

Jordan

put

abroad is quite likely
discourage American investors

and

which

support

Hussein by three
declaring the integrity
independence of Jordan to be

and

critical

hour.

private in¬

vestments
to

the

decisive

measures:

demonstrated
at

was

Communist threat in

Vietnam.1; We

and

skill which he

close to $600 million; and for

our

and

tance.

young

strength

all foreign areas our earnings were
about $3 billion. Unreasonable tax

disparagement of

that

Hussein

King Hussein would act with the

considerables Our earnings in 1955
were

defense.

dynastic rivalries and

unexpectedly

highly educated peo¬
automatically democrat¬
it, they would arrive at the bor¬ ic and peaceful. Few if
any peo¬
ders
of Thailand and Cambodia.:
ples 4n the world had a higher

deal

favorable "break" in Jordan. No one

hold in its northern part. If they
should succeed in taking all of

Director of the Washington Bureau of "Newsweek"

Mr. Lindley discusses some of the "hot spots" in the world
today and concludes that it would not he safe to devote less

discussion, it

concepts and pol¬
should be aware

of the economic

munists

infiltration

Laos is

little

scure

By ERNEST K. LINDLEY*V

;

"l:

pot mentioned at any time at

all in the
is

Indonesia.

Whil£ this eco¬

nomic consideration
was

that

clear what

means

International

Canada's oil and natural gas, one-;
half (of mining and over two-fifths'

manufacturing.

Sukarno.

the internal

of 1955 Uqited States

investors owned three-quarters of

President

Spots in the

1957

together

who

Manager.

Financial Chronicle

The Commercial and

Thursday, May 23, 1957

(2404)

doubt, it would be followed by a

And

Acting

inflation

\ the conditions surrounding the

held

point of view

sult

relaxation

the

long

Dealers, In<&-LV.V-.^

in
re¬

instal¬

restrictions has gone

ment credit

over-confidence rather than from market-pessimism.

Street, Chicago, will engage in $ general
They will hold membership in tnei,
National Association of Security |

security business.

Midwest Stock Exchange and the

check.

of activity
industry as a

the automobile

South* La Salld

investment

revival

the

ready

Stirling1—though it tod
additional wage-inflation. Sees
greater. danger to sterling coming from British authorities'

208

Cook Investment Co. by

relaxa¬
tion of the credit squeeze would
be ill-timed'if it were to coincide
with a French devaluationj Al¬

become -unbearable with

could

From this

explains why the burden is still less bh
U

reinforced
by recently obtained dollar facilities, the British authorities would
be in a position to face such a
pressure,'provided that domestic

possible devaluation of the French franc and the likely impact ,
upon British sterling. The British writer compares tha similar /
and dissimilar pressures operating on these currencies and
may

is made of the formation of <
Frederick J. Cook, John P. Pollick, Morey J
Sachnoff and William J. Sgnnott, Jr. The new firm with offices,I
CHICAGO, 111.—Announcement

stantial gold resources,

ill

\£coQO)nist writes

Noted

Cook investment Co. Formed in Chicago

speculation against

But in possession of sub¬

sterling.

PAUL EINZIG

burst of

fresh

the Franc
Possible Impact on Sterling

Pressures

towards bringing back

way

inflationary overfull, employment.
though thd domestic political situ¬
ation in Britain is not as unstable
as

verse

re-

pressure

'20s

time

this

because the discontented elements

unlikely to
sufficiently

the

heav-

are

f~nHers 0f the

During the inter-war pe¬
riod the French Governments that
followed each other in rapid suc¬

franc.

Government.

endless

devaluations. Internal

stability

political in¬

the main

was

the

weakness

cause

been overshadowed

of the
the

that the fears of

has

constitute

has

by two major

heavy

military

expenditure on the de¬

fense of

Indo-China and

later of

Algeria, and the strength of Com¬
munist: influence
trade unions.

•

French

the

'•4

;

•

■

long as the heavy military
requirements continue, all efforts
at balancing the budget have failed
to produce the desired result. And
the
pressure
of Communists in
wages disputes has made it impos¬
sible to moderate wages inflation.
As
a
result, the price level in
France is decidedly too high. The
balance of payments situation is
unsatisfactory, and the French au¬
thorities have to support the franc
scale

extensive

adverse

against

aggravated

pressure

speculative anticipation of its de¬
valuation.
the

such

possibility

circumstances

Government

ranted
the

Although the

fully deserves to be

successful in

valuation,

devaluation

cannot be ruled out.

its resistance

optimism

sacrifices

would

to*

made

in the absence

ling position.

weakness—the

•sources

And

factor

operate, but

continued

to de¬
unwar¬

assume

that

their criticisms
endanger the

that
end

necessarily produce the de¬

sired result.

Impact Upon SterlingThe

question that interests fi¬

nancial
other

and

circles

London

and

Co.

tures of

Murch & Co., Inc.

debentures, due May 1, 1977

and at 15 to

maturity.

Topp

expenditure

which

;

factor.

decisive

Is there any reason to be¬

lieve that the psychological effect
of

franc devaluation

would

sterling

equally decisive?

sufficiently large number of peo¬

believe this to be the
case, the devaluation of the franc
would greatly aggravate the ad¬
verse
pressure on sterling.
It is
important, therefore, to examine
in
advance the position
that is
ple should

liable to develop after a devalua¬
tion

of the

British

the

Government has undertaken

continue to press

sterling.

But

this burden is not nearly as trou¬
blesome for Britain as it is for
France.

wHling-.

Britain than in France to

ness

There

face realities by giving

over¬

tion

There

degree

many

ways

high

of similarity between the

Calif.,, is

Opens in Cleveland

May 21 at 330 Hanna Building in Cleveland.

ness

elec¬

active

On the other

hand, from the point of view of
the

industrial

situation, Britain's

position is about
France.
cal

proportion

British

bad

that of

Even though the numeri¬

Communists

trade unions is

their influence

negligible,

wages

Haller, Raymond and Brown is
the technical center of the corpo¬

ration.

Its

than

330

engi¬

scientists and related perv In
^ the
fields
of

neers,

sonhel ' work

•

systems analysis,

for

ment..

■

V-v-

team

nard H. Murch & Co.,

chief product of

The

line

has much larger easily realizable
overseas investments as a second

the

Britain's balance

of payments position is also much
sounder than that of France.
i

new

Gammack.

for

need

Inc.,
was

lock

Compares Export Prices
and

above

lock

wiring, with resultant savings in
weight and cost.
Sales for the firm

Over

and

974

the

for

were

fiscal

year

$5,050,ended

store

equilibrium

between

the

price levels in France and in other

countries, the

same

cannot be said

^o be true about sterling. Of

course,
rising trend in wages should
oroceed
much
further, Britain

if the

would find herself

the

sooner

later

position as exists in
France today. But at the moment

the

Laidley Joins
McDougal& Condon

same

level

costs

British

does not call for

prices
a

("Special to The Financial Chronicle)

has

with
208

McDougal
South

Laidley

has

Rodman

was

associated

become

Condon,

Salle

partner

Mr.

been

with

In the

past

recently

Renshaw.

Inc.,

Street.

Hicks

Price.

tion.

(Special to The Financial Chronicle)

cal effect of

franc

psychologi¬

devaluation

deserves attention.

of the

Beyond

LOS

ANGELES, Calif. —Chris
Co.,
Spring Street.

in the securities business in Cleveland since 1936.

He is

securities business

Vice-President and also sales manager and re¬

joining the new concern, Mr. Lemon was for 12 years with the
U. S. Securities and Exchange Commission.
v
Registered representatives of Murch & Co., Inc., are
Lennon, Joseph H. Ternes and Edward L.- Rickard.
Helen C. Sherlock is Assistant Cashier.

Joseph F.

Sachs & Com¬
Thomas N. Flournoy, First
City Bank of Jersey
City; Dale Y. Freed, The Hanover
Bank;
Ramsey E. Josiin, New

J. Verdu, Goldman

Bank Credit Assoc.

pany;

National

Elects
At

regular

Bank

Officers

meeting

Associates

Credit

of
of

the

Trust

York

Company.

New

Yprk, held May 16, 1957, the fol¬

lowing

were

elected as officers
for the years 1957.

and governors

With Marache, Dofflemyre
(Special to The Financial Chronicle)

1958:

LOS

President

—

William

Smith,

—

Francis

Irving Trust Company.
•

Vice-President

First

ANGELES,

••

Calif.—Fred¬

erick G. Kimball has become con¬
nected with

Weeks, Marine Midland Trust

Co.

634

Co.,

members

Marache, Dofflemyre
South Spring Street,

Pacific

the

Coast

Mr. Kimball was
previously with Kostman, Inc. and
Stock Exchange.

;

Second Vice-President—John J.

Battista, Swiss Credit Bank, New

Samuel B. Franklin & Co.

York Agency.

Join Mitchum, Jones

Treasurer—Justin F. McCarthy,

(Special to The Financial Chronicle)

Industrial Bank of Commerce.

lough,

With Dean Witter

search director of Murch & Co., Inc.
Elliot B. Lemon is Cashier and Assistant Treasurer. TMor to

Secretary

and

devalua¬

.»

until recently associated with L. B. Schwinn & Co. He
time with Cleveland's North American Bank and has

since 1945.

DETROIT, Mich. —Forrest
Laidlev

-J

one

all, while the

be necessary in order to re¬

may

was

....Warren G. Steffen has been engaged in the

extent

nuts

been engaged

which

large

Cleveland investment securities house.

Leustig, Vice-President and Secretary of Murch & Co.,

Fred F.

Heli-Coil

insert

lock

screw

formed by Boynton D, Murch, who is
F. Leustig, Vice-President and

his career in the brokerage business in 1947 with his
father's firm, and for the past two years has been Cleveland
branch manager of the New York house of Cosgrove, Whitehead &

eliminate

will

Ueuatig

He began

patented, precisionformed coils, which act as a liner
Having said all this it is neces¬
for pre-drilled and tapped holes.sary: to draw attention to the im¬
This coil imparts 2%; times 7the
portant differences between the
position of sterling and that of the strength of the original thread,
franc.
Britain's gold and dollar and, as'a result, is finding wide
industrial and military acceptance.
reserves
are
much stronger than
those of France. Moreover, Britain /.Recently the firm has designed ,
a

Fred

produces specific engineer¬

ing and research on products to
be manufactured by either Topp
Industries or Heli-Coil, Inc., the
firm's third subsidiary.

demands

is fully as strong as in France.

Steffen

Fred

Treasurer;

and

Secretary; and Warren G. Steffen, Vice-President.
Mr. Murch is the son of Maynard H. Murch, founder of May-

State College, Pa.,
developed technical

highly

Murch & Co., Inc., was

President

Located
this

Warren

Boynton D. Murch

technical intelli¬

and equipment develop-'!
industry and govern¬

gence,
ment

possessions,'retention of which

seas

would be too costly.

and

dustrial automation.

in¬

tends to undertake, that item re¬
mains unduly heavy, and it will

The question of the

franc.

tronics

Forrest

CLEVELAND, Ohio.—Murch & Co., Inc., the first investment
securities firm to be organized in Cleveland in over twenty years
as members of the New York Stock Exchange, commenced busi¬

1, 1962, at 12 through May 1, 1977,

April 30, 1956, while present pro¬
devalued, pressure on sterling franc is distinctly overvalued at its jections
indicate
sales
through
would increase to such extent as present parities, the same cannot
April 30, 1957, at approximately
to become irresistible. There could be said to be true about sterling.
$9,200,000. Backlog as of Feb. 28,
be no doubt that, should sterling In spite of recent wages increases
1957, amounted to $6,175,000.
be devalued first, the franc could and the prospects of further in¬
not survive on its present parities creases,
British
exports remain
for 24 hours.
The psychological competitive
in many spheres.
effect of a sterling devaluation on While a devaluation of the l'ranc
the franc would become

subsystems, instruhienta-' f.
controls; and precision
electronic components for guided
\t Giving Up Colonies
/
missiles and military andr com¬
In spite of the cuts in military mercial aircraft, as well as in in- *,
a

banking centers is whether,
when the franc should be

individuals

specializing in over-the-counter securities.

convertible at 10 through May

political changes geles,

real factor in the ster¬

prior to that

The
are

Mr. Pollick with Swift, Henke & Co.

associated with the New York Stock Exchange

was

Straus, Blosser & McDowell.
Business will be conducted with banks, dealers and

by Dempsey-Tegeler

Co.

Sachnoff

with

Topp Industries, Inc., was
(May 23) by a syndi¬

headed

cate

for the past few years,

Mr.

house of A. M. Krensky & Co., and for many years

made today

line of defense.

will

field, having had many years experience on La Salle Street. Mr.
Cook and Mr. Sennott have been associated with H. M. Byllesby &

Topp industries Debs.
Public offering Of $2,750,000 i6%
convertible subordinated
deben¬

well known in the investment

four principals are

All of the

Bempsey-Tegeler Offer.

defeat in the House of Com¬

franc.

period that

postwar

series

franc

the

Industries,
consists
of
three operating divisions, cover¬
mons there is no reason why there
should be a general election for ing the fields of electronics, avi¬
another three years.
But these onics and automation. The parent.
facts are hot generally realized, so organization, located in Los Ari-

cession had largely themselves to

the

most

are

They will only ab¬
stain from supporting the Govern¬
ment so long as they are satisfied
that they can make this, danger
without risking a defeat of the

1y loaded
against the
staunch

Party

Government.

Einzig

carry

far

tion

quarters

in the Conservative

unfortunately

capacity to resist after

re¬

know
that this uneasiness is unjustified,

Reynaud in
the '30s.
But

dice

Informed

gime.

and

for

the

and

elections

local

the future of the Conservative

the

care

blame

Socialist gains

the

France,

against the of the Suei'Canal have caused a
franc by Poin- certain amount of uneasiness about

Paul

recent

It S6ems, therefore, that exces¬
on the part of the
British
authorities
in
sterling's

sive confidence

devalua¬
may become a
''rebellion" of a number of Con¬ Source of graver danger than exservatives as a result of the Gov¬ cessive pessimism on the part of
ernment's decision to: submit to the foreign exchange markets.
Nasser's terms concerning the use

sistance to ad¬
4

the

recalls

successful

Al¬

French position.

British and

Eng.—The determi¬
nation w.ith which the French
Government
isv. defending the
franc against devaluation compels
V:
aamiration. It
LONDON,

—

Thomas E. McCul-

Chemical Corn

Exchange

Bank.

neth

Governors

for

Two

B. Mitchell,

MeadNational Bank; Everett

Burton

Musun is with Dean Witter &

owbrook

632 South

Estes. Bank of New York: Richard

South
the

ANGELES,

chum,

Board
Years:

LOS

Griffin is

Jones

Calif. —Ken¬

now

with Mit¬

Templeton,

650

Spring Street, members of

New

York

and

Stock Exchanges.

Pacific Coast

Volume

Number 5640

185

The Commercial and Financial Chronicle

(2405)

Equitable Security Trust Company,
.*

CONSOLIDATIONS

','V

died

BRANCHES

OFFICERS, ETC,

REVISED '

■

Bankers

and

CAPITALIZATIONS

Mr.

JL,."V\::

Graham

•VJi ,tu

the

He/ had

Jprst National City Bank of Manufacturers

York announced the declara¬
tion

oft

May

dividend of 75 cents per share on
the shares presently outstanding

Company
the two; banks
! appointed ; a
Manager in 1947.-"

branch

payable; Aug. »;i, to;*holders of
record Judy 9.
This action ; in¬

signed

; At

present,; Mr. Cassetta is

1928 it

office

Road

Boston

Eastchester Road in

cial

Chair¬

chants

ham

near

Bank

ttrie

when

National

Bank

;v' ;

director

Savings Bank,
"•••;•

•• ;

-f

■.'***

■

ii-4\

: *

v"r.A"

The

Donald

sale of 2,000,000 additional shares
of capital stock at $60 per share, a
total

'■

.* '« ' "■

Atkin

Clement

arid

$120,000,000. The number
Co., Incorporated, New York. Carl
par value would
W.
Klein me
was
appointed ' an
increased from 10,000,000 to*
Assistant
Secretary.
;Mr. Atkin
12,000,000, He said a special meet-;
and Mr. Gile have been assigned
ing of stockholders will be held

$1,$00,000 by tkq s$le of

effective May «7 (12,000

June

24, to vote
posed increase.
.
Upon

approval,

the pro¬

arid

Mr.

Klemme

-r

will

offered

basis of

held

June

record

five

future

the, Board,

earnings,

$3.00 rate
of

subject

the increased

num¬

shares.

poration for the purchase of
unsubscribed

the

scription price of $60)

proceeds of the

additional

any

sale

capital of
$80,000,000 to sur¬
plus. With these changes, the capi¬
the

Bank

tal

and

the

Mr.

Bank

would

Bank

stock

provides for

Hitchcock

Brooklyn,

.!it

.si;.

■

Southern

National

the basis of

•

i--,'

charter

office

of; the

Currency
National

issued

the

Comptroller

The

President

Magnus' many activities in¬
directorship in the Under¬
New York.

$125,000.

Falls,
of

been

total

does

capital

not

include

funds

either

allocated

reserves

represented

Bank

than

have

the

$100,000,000.
Capital funds as proposed would

and 10.3% of

31,

1,957,

18.3%

deposits

compared

loans

of March

with

'■'}■

approved

of$250,000,

of o.Eastern

with

$175,000,

were

N. Y., and the

14.

May

meetings
on

the

are

Idaho, under the charter of Con¬

tinental

Bank;- and

State

$50,000,000
;

The book value of the combined

capital funds of the Bank and of

City

Bank

pany

Farmers

$60.56

was

March

31.

Trust

per

After

Com¬

the

foregoing
changes it would
be
approxi¬
mately $60.47 per share.
If the capital stock increase is
authorized, warrants covering the
subscription rights will be issued
and

mailed

about

shareholders
The

exercised
:

with

York

of business April

June

terminate

24.
not

Public Service

❖ '

•

New

York.-

Board.

W. G. Semisch, President
Second

Bank

National

delphia,

Pa.

Mr.

announces

the

of the

as¬

surplus

issue

page

•

burg,

Pa.,

Subscription Price $13.^0

Pa.,

merged
of

Flanigan also announced

:appointment of Louis Cassetta

the

Assistant Secretary.
Cassetta began his banking
with the Chatham Phenix

Mr.

1916 arid joined

iVt

During the subscription period and after its expiration, the several Underwriters may offer
■jCommon Stock at the prices and pursuant to the terms and conditions set forth in the Prospectus.

effective

Trust

Equitable

Security

Wilmington,

National

qAllen

May 6.
if

Bank

may

be obtained from the undersigned.

Harrisburg,

charter and
Company,

under

pany,

Copies of the Prospectus

Allison-East

Company,

Central

career,

per

the

and

title

/•'./

(#5 Par Value)

$1,625,000,

"Chronicle"

the
if

Department, 67 Broad Street, New

Co/

',y,~

1959.

York.

National Bank in

$1,000,000.

Trust

Franklin

spectus.

com¬

pletion of the Said'of 12,500 shares
capital stock
at $28.00 per
The capital will amount to

End

signed to the bank's Personal Loan

Mr.

ing 15,000 shares of Common Stock to its employees on such terms as are set forth in the Pro¬
The Subscription Warrants will expire at 3:30 P.M., New York Time, on June 12, 1957. '

Phila¬

Central Trust Company, Ilarris-

Patchett

The Bank
•'•t

share.

Assistant Manager of the Bank
present

Fewel

appointed

December 1954.
At

Company is offering to the holders of its outstanding Common Stock the right to subscribe,
through transferable Subscription Warrants, for 166,997 additional shares of Common Stock
at the rate of one share for each ten shares of Common Stock held of record on May 20/
1957, all on the terms more fully set forth in the Prospectus. The Company is also offer¬

:•/

This brings Second
National's total capital funds; to
of Manufacturers Trust
Company, approximately $4,000,000. The ap¬
New York, is announced
by Hor¬ proval by the stockholders to issue
ace C.
Flanigan, Chairman of the the stock was given in the April

staff

30.

The

•
if

$1,375,000;

was

Calif.—Willis
joined the
& Co./ 453 South

Company

Trust

Com¬

Del.* and The
Smyrna,

Del.,.

merged under charter and title of

0 j

;

ANGELES,

;■

First Trust and
of
Syracuse,

Deposit

■*

Doetschman has

Company of New Mexico
''

and undivided profits and reserves

appointment of James R.
Patchett as an Assistant Secretary

Patchett

i..'

■

Common Stock

ward, care of the liquidating bank.
Absorbed by: The

before July 22.

The

Mr.

LOS

181,997 Shares

common

«■

June

record

rights will

under

is neither an offer to sell nor a solicitation- of an ojjcr to buy
of these Shares. The offer is made only by the Prospectus'.

capital stock of $50,000 went into
voluntary
liquidation effective
April 30.
Liquidating . agents or
committee: Hugh T; Davis, Langdon Smith and DeBanks M. Hen-

New

Joins Fewel Staff ."

merged with and

:■ >(Special to The Financial Chronvxe)

Special stockholder
being called to act

National Bank of Morris-

First

stock

common

NEW ISSUE

proposal.

ville,

Idaho; Hemphill, Noyes & Co.

Idaho,

Miss

formerly.with

was

15.1%

8.6%, respectively, on that
legal lending limit (10%
capital and surplus) would be

$62,000,000.

Stock Exchange.

Coast

announcement

any

First National Bank

„

This

Currency

merger of the
Bank of Sparkill.

date. The

from

cific

Childress

Spring Valley, it was announced

and

increased

and

Spring Street, members of the Pa¬
cific Coast Stock Exchange; Mr.
Elliott McAllister Chairman of Doetschman was previously with
the Board, announced May 16 that Kostman, Inc, and Samuel B.

National

First

-of;

The Controller of the
has

Bank

LOS . ANGELES,, Calif. — Mar-

jo rie C., Childress is now with
Crowell, Weedon & Co., 650 South
Spring Street; members of the Pa¬

effected. ^

r*».>!;'1

National

Idaho,

.•

the

City
Bank
Farmers Trust Company, of ap¬
proximately $33,000,000, or un¬

bank.

the

^Special to The Financial Chronicle)
.

title "Bank of Idaho,'r effective as

Effective

T h i

Crowell, Weedon

Caldwell/ Idaho, L with
stock

of the close

will :be issued

into Continental State Bank, Boise,

■

The * First

Bank

C, Doll and the Cashier is
George E. Elms. The bank has a
capital of $150,000 and a surplus

writers Trust Company,

general partnership and Louise
Stephaich to limited
in the firm..

share for every

has

stock

v:.

common

Ernest

Caldwell,

May 3 to the Florida
Bank
at
Vero
Beach,

;on

Vero Beach, Indian River County,
Florida.

new

was,

one

15 shares owned afterr.fhe sale of
the

the

■

The stock dividend

record

day that the Comptroller of the^ partnership
Currency issues a certificate of
approval for the capital increase.
With

director, succeeding the
late Judge W. W. Douglas.

County

Kings

stock. 'Effective

new

The Lynbrook National Bank &May 8 the Fidelity
from " $200,000,000
to Trust
Co., Lynbrook, N. Y., offi¬ National Bank of Baton Rouge,
$240,000,000 and the surplus from
Louisiana, increased its common
cially launched its golden anni¬
$300,000,000 to $¥80,000,000:*^^
capital stock from $1,375,000 to the board of directors of
versary celebration oft May 14 at
Including approximately $73,'i
i*.,.
a* dinner attended by officers, di¬
000,000, ofj undivided profits, total, rectors and the entire personnel -m.rj v
TTTTP V
capital funds of the Bank would

$693,000,000.

New York City, members of

stockholders

increased

approximate

way,

dividend

capital stock

$1,514,500 to $1,652,181.80 by

sale

Mr.

Admit partners
McManus & Walker, 39 Broad¬
the New York Stock Exchange, on
June 1 will admit James H. Sheils

common

Bank, Atlanta, Ga., elected Henry

York.

clude

McManus & Walker to

000
to
surplus, and $400,000- to
undivided profits. --./wVinf
-.ri;,',,

J. Miller

Magnus is a trustee of the
River
Savings Bank, New

East

shares, $40,000,000

would be. added to the

the

National

■

of stock

$2,400,000 and will

The resolution also

common

capital stock from/ $300,000 to
$400,000 by a stock dividend, ef¬
fective May 6 (8,000 shares, par
value $50).,
'*'*

be allocated in the following man¬
ner: $1,000,000 to capital, $1J)00,-

;?l i,

;

s_8;.

of $500,000 out
profits. This stock
dividend will be payable pro-rata

'v.

member of the. Board of

Company,

Trust
;

Trustees

sub-1

share.

per

will amount to

stock,
shares,' par

r;;.*

The First National Bank of On¬

undivided

Citizens

has-been

Magnus

Percy

elected

headed by The First Boston Cor¬

additional shares

Arrangements have been comj,Ue?tod With investment bankers

First

May 13.

Banking Department of the State
of
New
York
for
approval of
change of name from Trust Com¬
pany of North America to Bank of
North America.;

to
the

;

tario, Calif., increased its!

the

plication dated April 25 with the

24.

continue

Amer¬

ica, New York, N. Y., filed an ap¬

these

basis

South Carolina of Columbia, S. C.,

fornia/effective April 12.

;-;/A

ac¬

adoption of the resolution.

the

for

•'

increased its

■

from

Sheperd stated it is the in¬

tention

ber

live;

bank's
;

Trust Company of North

one

per

purchase
on

"tlie

share¬

holders pro rata on a
new
share for each

Mr.

the

stockholders

Proceeds received from the sale

general banking department

operations department.

additional

the

* to

share for every six and
one-half shares owned at the tirne

'■

Farmers and Merchants Bank of

the

of the

called

'■

;

one; new

Bank

: j if

in-

will/be

'*■

Lodi, California, Lodi. Calif., has
changed its title to; Farmers and
Merchants Bank of Central Cali¬

corded rights to
additional shares

new

!lue)

the merger.

4,.

stock of the

will

increased from

of shares'of $20

approve

common

share.; Stockholders

$1,000,000 to $1,100,000 by a stock
dividend and from $1,100,000 to

Vice-Presidents of J. P. Morgan &

to the

stock

Cosmopolitan National

of Chicago, III., was

D. Gile have been named Assistant

capital

common

June

100,000 additional, shares of
$10 par value stock at $24

California: and

$6j500,000 to $7,500,000

the-* sale

porated, McKcnuey, Virginia, has

proposal to increase the capital
funds of'the Bank/ through
the

Jr.,

first to

in the

bank from

Maurice Zimmerman, 54, senior
Howard C.
changed its title, effective April 4,
Sheperd,
Chairman,
announced analyst in the tryst Invest Ifteftf di¬
to The Bank of McKenhey Iiic. j
that *theH Board of Directors'! is vision of Guaranty, Tiiist. Co: df
*
"v 1:i fi'
recommending to the shareholders New York- died on'May. 15.
J*/ »
a

held

Johnson,

asked

crease

the

'■Thd' Bank of Dinwiddie, Ipcor-

Simultaneously,

;;

meeting
Lee

According fo a resolution passed C
by the board, the stockholders will - July i.

Baltimore, Mr. Gra¬

also

the'-'Bank

shareholders

become

Nationally

was

■■

Placer County Bank's directors
President,
announced ; following
a
regular will meet to take similar action.
meeting of the, bank's board ox Upon ?their approval-a special
director^ft 1^4;,
uw ;ri
t; meeting of Placer County Bank
J.

Bank.

merged with the Mer¬

was

Eutaw Place

the Bronx.:;

President

been

A native of

as¬

National

the First

officer in charge of the

bank's

fi'pm.

,the : dividend j:ate
S2.80 to $3;00 per annum. ; l

creases;

Trust

with the merger of
in
1932. * ; He
was

quarterly

Board

was

First

of California, San
Francisco, Calif,
has ratified the merger
agreement

Stocktiolders of ^The First Nji?*. Placer County Bank, Auburn. A
tional Bank of Fort Worth, Texas, special meeting of The Bank of
will be asked to increase the capi-. California shareholders has been
tal accounts of the bank at a spe¬ set for July .2, when
they will vote

.;j

prominent bankers,
May 17. He was 87 years

Citizens
The

most

.old.

man
■

Albert D. Graham, one of Balti¬
more's

NEW

News About Banks
NEW

$1,750,000 by the sale of new stock
(70,000 shares, par value $25).

effective May 6.

<f»

May 23, ,1957s
; >

•

v> i'i;

Company

1957

Thursday, May 23,

The Commercial and Financial Chronicle...

(2406)
.;V

Continued from page

Bank and Insurance Stocks

The Short-Term Outlook for Money

By ARTHUR B. WALLACE

This Week

magnitude of the underwriting losses of the fire-casualty
realized when the figures for statutory
losses are set out. These are among the worst for the industry in
The

figures:

about from

comes

one

possible offsets to
possible increase in the
tax credit or, it may be, a tax

There are, of course, two

number of years.

these

premium reserve; the other as a
refund.

premium reserve is
concerned, where a company's premium reserve increases in a
given period, the usual practice is to assign an equity in this
increase to the shareholder. If a fire company, the custom is to
make the equity 40% of the increase in the unearned premium
reserve.
If a casualty company, the general practice is to make
the equity 35%. However, for some casualty units this varies
far

the

the unearned

change

Surety Company in 1956 had about
premiums in surety and fidelity lines, and

of its total net

general casualty lines were written in addition to these were
largely an outgrowth of its principal lines. But its experience
in these principal lines has been so favorable generally that one
of the statistical services assigns an equity of 40% to the change
in this reserve. The same service gives Fidelity & Deposit Co. a
what

the
and
burglary and theft, nearly 90%. -Of course, if the change in a
given year is minys rather than plus, the equity in the change is
also
minus, and ^so reduces the adjusted underwriting figure
like

equity in the change in the reserve, it, too, concentrating
in three lines, surety and fidelity bonds,

bulk of its writings

correspondingly.
Federal

■

insurance

affect

(excluding
the change in the
subject to
regular corporation tax rates. However, because most companies
hold tax-free bonds in greater or lesser amounts, the total effective
rate is usually somewhat less than that on statutory results. The
1956 underwriting results were so poor for the industry that not
only was little tax collected on this portion of the business, but
differently.

likely to be numerous sizable refunds.
So we find that government which, generally

there

are

STATUTORY

ESTIMATED

Casualty
Insure.ncc________.

Aetna

Agricultural

speaking, is

American

Surety

Insurance

Continental

_—

Casualty
Insurance

Federal

Fidelity
Fire

___^__

—

Hanover

1,829,000

—22,470,000

•—

2,455,000

______________

Ins.

Fire

7,440,000
1,128,000
2,575,000
4,619,000

—

Insurance

American

Great

2,596,000
6,120,000

—

Fund
Insurance

Falls

675,000

-___

Firemen's

Glens

7,325,000

Fireman's

General Re

1,34^,<500
124,000
5,220,000

Phenix

Association

951,000

-i'— 5,200,000

Insurance

Fidelity & Deposit

Insurance

___—.——.

+ $700,000
—17,680,000

^.,936,000 Ins. Co. of No. Amer._^_^_

—

Continental

Home

.__—.___

«•

Shippers./.

Bankers &
Boston

5,960,000

1956

—

—14,922,000
—
160,000

American Insurance1
American

—

RESULTS,

Hartford Fire.

—

Insurance_____

Equitable^..:

American

$500,000

—

-v1*

'•

repay¬

outstanding loans. This

Massachusetts. Bond.

——,—

320,000
+
405,000
—11,345,000

National Fire 4———
National Union Fire
;— — 3,942,fljb0
New Amsterdam Cas.___.— -—.4,375,000
New Hampsh^e Fii)e_L..—— —-■£,588,000
Northern Insurance
-—
— * 212,000
North River
—
872,000
Pacific Fire
;——
142,000
Phoenix

Insurance

—

Providence Washington
St. Paul Fire & Marine

—

Seaboard Surety _
+
Insurance
—
Springfield Fire
—
Standard Accident
1 —
United States Fid. & Gty
—
United States Fire
—
Westchester Fire
—
—
Security

6,880,(100
1,596,000
64,000
1,688,000
2,725,000
4,963,000
2,662,000
5,082,000
2,016,000
1,060,000

•" *•••

•;

■

first

■

;

:•

>■

this looks like

glance,

stand-off and that money might

would

conclusion

this

But

ease.

ignore the fact that in 1956, sav¬

ings fell short by $2 billion of
meeting market demand. At that
time,
the; 1 lack was made up
through expansion in commercial
bank credit; It appears, therefore,
that we're facing the same situa¬
tion as last
year—that pressure
will build up for bank credit to
make up the difference.

You

lend

need.

have

lenders,

especially

money

at these
when our
society is fully employed with
prices inching up, it's quite clear
that credit expansion, not based
on
savings, will fail to increase
our real prosperity and only feed
—

attractive

But

prices.

the

without putting up¬

economy

ward pressure on

bet that we, as

can

would

This

brings

the

have

Right

mercial

you

will

know, the credit policy of the
Reserve
is
designed to

Federal
secure

high

our

of growth
consistent

rate

economy

with stable

turn

spigot. Our com¬
in a negative

are

position

that is, their

—

borrowings at the Federal Reserve
their

exceed

reserves.

remainder

excess

believe that for the

capital markets
coming months. As

the

mistake

banks

reserve

the money and

during

the easy money

important influence

now

would

final

factor—Government—which
also

as unemployment.
doubt that upward
pressures
are
strong enough to
cause
any
further tightening of
money
by the Federal Reserve
Board. But, by like token, it ap¬
pears to me our business world is
sufficiently
strong,
so
that
it

conditions, such

Credit

Easy

From

Away

Keep

niggardly with adequate premium rates, in a year such as 1956
must share in the industry's losses; the policyholder is the one
who derives the chief benefit from the inadequate rates.
Following are the statutory gain or loss (mostly loss, it will
be evident) figures for a list of companies whose stocks are among
the more actively traded insurance issues:

Aetna

capital

all

borrow

mand for savings.

and

over

the

above

funds

new

businessmen, would like

of us, as

.There is a widening recognition
that a one-quarter or one-third
tax take is not healthy for the
dollar.
Government
has
never
been able to take so much out of

Neither

prices.

for : the

healthy

private enterprise economy, which
provides the goods and services
that people want enough to"pay
for them with their own precious
disposable incomes. Senator Byrd
Treas¬

when he asked

this

noted

private savings
probably
ury
Secretary Humphrey in
will be $1 billion larger than last
March: "How long do you think
the fires of inflation, which robs
year. Government trust funds may
we
can preserve our
free enter¬
add one-half billion dollars.
The us all.
Tne
Federal Reserve must be prise system and make progress
supply of savings this year is,
when we take more than 33% in
sensitive
to
deflation
too, and
therefore, likely to rise by almost
cash
of individual
income
each
as
much as the $2 billion in de¬ guard against a policy so tight as
year?" Secretary Humphrey's re¬
to result in unfavorable business

companies

Any profits in underwriting
unearned premium reserve) are

somewhat

net

ments

■

usually

taxes

income

market

considerably.
For example, Seaboard
80%

and
time
deposits
of
commercial
banks.
Last
year,
these savings
supplied slightly over $18 billion

year,

associations, private pension

funds, mutual savings banks

insurance stocks in 1956 is

savings and

insurance companies,
loan

Insurance Stocks

—

Taxes

of High

Failure

supply
amount
banks

enable

reserves

make

will
additional

small

some

our

the

some

banks in

negative

reserve

posi¬

lic

expenditures
too

are

And

considering

now,

discussed—the

factors I've

the

all

course

that

the

interest

for

rates

the

rest

will hold at current
achieve them, even though it may,, levels,
with
minor
movements
above or below, due to technical
at
times, subject« us« to curbs1
or
temporary conditions, rather
which, at the moment, we may
than
to
any
fundamental
or
not like
Now that's hard to do
underlying changes in the credit
when it hits us individually. All situation.

the

from

this

pub¬

country

America

cannot

present

that

take

and

that

with

tinue

high.

think

people

money

maintain

and

the land

con¬

programs

amount

of opportu¬

nity-—as the land of competitive
enterprise. Individual f r e e d d m
arid competitive enterprise go to¬

gether."
is

impressive

that

fact

trade union leaders omit govern¬

benefits

the
They in¬

evaluating

welfare of the workman.
dicate

concern

the slackened

over

rise—if not decline—in the buying

of
the
average
factory
earnings after tax. This

power

tion.

to)

likely

most

procedure

"I firmly believe that our pres¬
ent tax rates and our present

ment

shortage of savings, but with suf¬
ficient restraint to still keep the

characteristically' forth¬

was

right:

the year, the Federal Reserve

prices. In other words, of business in the
coming months
prosperity and price stability are
—the expected deficiency of sav¬
the twin goals. Because of the im¬
ings relative to demand for funds
portance of these objectives to all
—and the probable Federal Re¬
of us, I think you'll agree that
serve Board action—my best guess
the Federal Reserve should adopt;
the

ply

worker's
is

high

private

complimqnt to

enterprise. But if the government
crowds in on the national product
how

much

have

chance

will

industry

give the people higher
real buying power for their dis¬
posable incomes?

year

Budget

Tax

Finally, thus,

Reform

have the need

for reconsideration of the Federal

budget from the standpoint of tax
reliefs

reforms.

and

The

income

from

page

is quite

almost

Continued

tax structure

student of the sub¬

every

mess—as

ject agrees. Yet in a budget di¬
rected toward a strong and ex¬

panding

Our Current Monetary Policy:

problem

this

economy,

passed over in favor of more

was

spending

almost every front.

The omission of tax concessions
the

from

Appraisals and Prognosis

budget

not

was

un¬

noticed

by the people. They still

possess

the

sovereignty

and

are

bringing considerable pressure to
expenditures would auto¬
bear on the Congress and Admin¬
It does seem
that upward rate adjustments have become
to
be
desirable
for
local
com¬
matically
decline
in prosperity
istration
to
curtail. Federal ex¬
essential if somb of the smaller units in the industry are to avoid
munities.
and increase in depression. They
f >
trouble. Fire losses continue to run high; and tornados are working
penditures and taxes.
overlooked that Congressmen and
This involves waste of time and
overtime.
Conditions point to another bad underwriting year.
Getting back to my prognosis,
are
money.
Funds gathered in the government ~ administrators
there are dangers in a situation
local community shrink as they human beings and feel a natural
inclination to spend up to the limit of this kind that action may be
pass
through
the
bureaucratic
Now With Lackner
directed by impulse rather than
Dempsey-Tegeler Adds
turnstiles
on
the
Washington of revenues if not beyond. Now
(Special to The Financial Chronicle)
the emerging policy is to put Fed¬ thoughtful consideration. An illus¬
(Special to The Financial Chronicle)
detour to
pay for the wrapping
LOS ANGELES, Calif.—James
DENVER, Colo.—Joe Davis has as gift packages. The taxes we eral expenditures on an escalator, tration would be a cutback in
essential mail services in order to
A. Taylor is now with Dempsey- joined
the staff of Lackner & pay are so neatly concealed or programmed to follow rising price,
initiate
programs
of Federal
First National
Bank withheld that there is no wonder revenue, and GNP curves. This
Tegeler & Co., 210 West Seventh Company,
seem
a
dubious
to
help build public
course, grants
Street.
Mr. Taylor was formerly Building. He was formerly with heads of government departments would
—

adjudged

distant

Washington

ernment

with

First California Company.

Carroll & Co.

those

With Wagenseller, Durst

Coe With Hayden, Stone

(Special to The Financial Chronicle)

LOS ANGELES, Calif.—Richard
Salamida
is now
connected

with

Wagenseller

626 South
of

the

change.

Durst,

Inc.,

Spring Street, members

Pacific

Mr.

Coast

Salamida

Stock
was

viously with Kostman, Inc.

Ex¬
pre¬

WORCESTER, Mass.

—

Francis

L. Coe has become associated with

Hayden,
Street.

Stone
He

was

Co., 332
formerly

Main
with

prior

thereto

in Gibbs & Coe.

was

partner

luscious

for

needs

Federal

serious

funds.

vein

must

In
not

neglect to mention the loss of local
autonomy and the misdirection of
economic

I have

resources.

liked

President

favorite

Lincoln

-'The

Paine, Webber, Jackson & Curtis
and

astronomical

report

always

Eisenhower's

quotation:

legitimate

most

particularly- from

object of

income

gov¬

GNP.
There

are

much

well

their

separate

capacities.

And

for

themselves

and' individual

all

that

the

people can individually do as well
themselves, government ought not
to

shortage

may

They

their

and create

with

disturbed
by the possibility that people left
power.

have done, but cannot do at all, or
cannot

economists who

some

concerned

are

too

above

and

community
of people whatever they need to

ernment is to do for

of the national
25%
of the

taking above 30%

buying

point

where Government at all levels is

are

free

own

will

decide at times not to spend
a

recession. Thus, they

high percentage of gov¬
outlays' to the national
income or gross national product
is an economic stabilizer. On the

argue,

ernment

record

such

line of policy leads

to social discontent from resultant

interfere."

upward
Compensatory Principle Breaks

pressures

excessive

prices

taxation.

There

and
dis¬

Down

illusionment
Another

reason

for

ation of Federal budget outlays

the .creeping
which

fiscal

inflation disease of
spoke. If compensatory
-

policy is to have

any

mean¬

ing, government expenditures,
need

theorists

be
held

stabilized.
that

the

standard .of

reconsider¬

Federal

Some
Gov¬

living

provided

generous

gross

nominally

income

and

im¬

schools.

The

essential

service

mail

Federal

education

responsibility;
essentially a local

responsibility and has been since
the nation was founded. But, with
an

the

to such risks,

eye

wholesome.

budget
it

review

bring

reduction in corporate as

well

budget,
needs

can

the

from

have some relief
of corporate

pressure

funds

for

further

the

will

money

have

some

increase
price increase. With the
help from a limitation of
to

without

tax

overbalanced

market; Business

ability

income

individual

within

rates

can

Federal

cost

absorb

demands

Government

the markets, the cost of liv¬
ing can. be steadied and the esca¬
upon

lator

part of pay increases elimi¬

nated.
can

Individual

add

tax

reductions

disposable

income,

pulse is given to borrowing—and

supplant government procurement

still-

:pressure

.-prices—

the

markets, and

brighten the

enterprise seek¬

from the effort to obtain the kind

outlook for every

ing to satisfy the desires of peo¬

living

the

gross

posed to afford.

wage

sup¬

ple to improve their living stand-

Volume

5640>.

185 V Number

The Commercial and Financial

Chronicle

ards and meet the personal budget

announced

presoures of growing

were

iamilies.

that;

Kilburn, Greenshields & Co.;
McCuaig, McCuaig Bros. &
Co. Ltd.; E. H. McAteer, Graham

following,

the

elected members of the Gov¬

erning Committee of the ensuing
A

Way

Here

;

Out Must

disease.

the

You

check

feel

may

compatriot,
spending,

Feund

way

cally that creeping
its

year

the

fatalisti¬

inflation, and

creeping

govern¬

in addition to the officers:

Governors

(regular

With Powell, Johnson
•

are

firmly

em¬

Nesbitt,

bedded that we might as well ad¬
just ourselves to it. In that event

Stuart,

you can also look for controls and

F. G.

chrome shortages of saving which
will stultify our natural economic

development. But theie is

out and I

Thomson i &

PASADENA, Calif.—Charles J.

Co.;

Brunner

has

become

with

Powell, Johnson

McArthur, A. E. Ames & Co.

Inc.,

Security

Governors

(advisory members):

David
ated

(Special to The Financial Chronicle)

Mackenzie;

Kingstone

FRANCISCO,

Bullen

Powell

Building.

was

formerly with McCormick & Co.

has

Calif.—

become

(Special to The Financial

Brush, Slocumb & Co.
Inc., 465 California Street, mem¬
bers

the

Pacific

Coast

Stock

Exchange.
Mr. Bullen was for¬
merly Sales Manager for Walter
C. Gorey Co. and .prior thereto
was

with Elworthy & Co.

Mass.

Cordingiej

Chronicle)*

—

Ronald

Ralph

Joslin

associ¬

with

connected

•

BOSTON,

(Special to The Financial Chronicle)

SAN

W. L. S. O'Brien, O'Brien & Wil-<
liams; J. R. Hughes, Royal Secu¬
rities
Company; H. E. Murray,

Two With Paine, Webber

Brush, Slocumb & Co.

members):

ment

David Bullen Joins

& Co.

(2407)

have

become

connected

with

Paine, Webber, Jackson & Curtis,
24 Federal Street.
was

formerly

Litchard.

Mr.-

Mr.

with
Joslin

Cordingley
Donald
was

with

Chapman & Co., Inc.

it and

seize

hope

can

see

way

it.

Dominick & Dominick

Group Selis Grolier
Society Securities
An underwriting
group headed
by Dominick & Dominick offered

publicly yesterday (May 22) 3i8,000

the

of The Grolier

lishers

edge,

The

Book

Knowl¬

Encyclopedia

The
and

cana

stock

common

Society, Inc., pub¬
Ameri¬

other

encyclopedias and

reference

books.

Dominick

offered

time

the

same

$2,500,000 of 5% convertible

subordinated debentures due May

1, 1967.
The

convertible

nated

debentures

100%

and

$15.50

18,000

account

holder..

•

the

being sold for

are

stock

common

share.

per

offered,
the

the

Subordi¬

priced

were

J/.

selling • stock-*

■

;;

The debentures will be convert¬
'

ible into
share

stock at $17 per

common

before

May

1960, at $20thereafter and before May 1, 1963,
and at $23 thereafter. >
'v
The
sinking fund- will retire
$250,000 of the debentures in each
year beginning 1959, at the prin¬
cipal amount plus accrued inter¬
est; other, redemption prices range
*

from 105 % for those called in the
12

months

to,

100% ! for

prior to

May

those

1958
in

redeemed

the 12 months prior to due date.

The

proceeds

from

the

and i

sale

300,000

stock

will

capital
"

able.

added

sales

* \"y'.

The

company

debentures

shares " of

;/.* Among
are:

the

generally

stallment

the

common

'■t

to working
finance in¬

receiv¬

contracts

'v.';/

the other- underwriters
First Boston

Corp.; Kid¬
Co.;
Lehman,
Smith, Barney &

Peabodyi &

der,

Brothers;

and

Co.

•

v'.*::."'*:

Montreal Stock Exch.

Governing Committee
MONTREAL,
K. Crabtree
of

the

Governing

Montreal

acclamation,
tree

firm of

General

Exchange by

16.

Crab-

Mr.

Partner

changes

of the

member

and

Canadian

the

term

Ex¬

This

will
first

1948.

new

office.

previously

Vice-Chairman

Mont¬

Stock

Chairman's

since

mark

served

Committee

Stock

May

Baker, Weeks & Co., and

has been
real

Canada—Herbert
elected Chairman

was

Canadian Stock Exchange in 19531954.
J.

Herdt, of L. G. Beaubien

& Co., was elected Vice-Chairman

acclamation.

re-elected
real

Stock

had

1921

Exchange in
to

been

1946,

Vice-Chairman
Committee

Herdt

was

member of the Mont¬

previously

from

Mr.

during

1951, but
member

and

acted

the

Governing
the 1938-1940

Chaput, of Brault & Chaput, was elected Secretary-Treas¬
urer by
acclamation. Mr. Chaput
has
real
and

been

Stock
has

member of the Mont¬

Exchange

served

the

since

1933,

Governing

Committee for the past 11 years. J.
R.
Donaldson,
of
Hickey,
Donaldson

Trustee of
a

Co., was elected athe Gratuity Fund for

period of three
The

The

.newly

years.

elected

SCHOOLS IN THE WASTELAND

jungle yields to the

Chairman

power

chinery. In the wasteland skilled

man

men

armed with modern science and

of Middle and North America

are

ma¬

together

creating banana plantations and thriving communities. Well-equipped, airy
schools

bring the full benefits of education to the children of the workers, mold¬

ing the good citizens of tomorrow.
This

practical guidance will fit these youngsters for the tasks ahead, operating

farms, railroads and docks that their fathers carved from the jungle. They will
inherit

terms.
J.

MODERN

the

strong economy, linking the rich lands of the Americas with

kets of the world. The crops
tures to

The

make that

the

mar¬

of today bring the dollars, machines and manufac¬

bright future

reality.

...

Living Circle of trade and communication guards the prosperity of the

Americas. This free way

aggression. >

of life offers the only true security against communist
"

...

United Fruit Company
General Offices:

80 Federal Street, Boston

10, Mass.

THIS

LIVING

CIRCLE

STRENGTHENS THE AMERICAS

United Fruit

Company has been serving

the Americas usefully for 56 years—re¬

claiming wasteland, stamping out dis¬
ease, developing human skills, helping
by research, new techniques and trans¬
portation, to increase the production and.
sale of bananas, sugar and other crops,
and expediting communications.

'■

The Commercial and Financial Chronicle

(2408)

ent who are

People's Attitude Toward Banks
And Competing Institutions

banks. The

that

and

savings

attorney
C.P.A.

Fur¬

thermore, a
good contact

personality
more

tees

and efficient use

the most telling

Until very

rela¬

ing

had

what

recently,
real

does

any

field.

rela¬

The

tions

not

completed

study

just

the

American

Bankers Association is

reported to

for

art
nracticed on

be the first

Dale Carne°i«

Charles A. Eaton, Jr.

now

time.

first

motivation

new

industry

only

are

this for the

learning

Public

gentle

whole.

in bank¬

American public

image the

had of us—at least of our

of knowing

way

tions than it

other

no
in

study of its kind made
our industry

national level in

principles by men of good will,
preferably in cocktail bars. At the

steps ever made in banking.

risk of

one

over-simplifying, I would

note that what it takes to succeed

public

nothing

It is
valuable services

of the many

performed

by this great national
organization on behalf of its mem¬
bership. The aim of the research

good

was

than

realism,

common

meas¬

imagination
This

sense.

and

the hard

fact.

First Things First
It is axiomatic in

profession

our

today that the key to successful
public relations is
reflected

little

The study was based on a sample
chosen to approximate the charac¬
of

cross-section

attention

has

been

drawing

paid to

up a pro**

est

and

sion

frankest

possible7,expres¬

opinion

unhampered

personal reticence and the

ques¬

gram.

tions

lic

in mind. The study was conducted

Many of the pitfalls of pub¬
relations could in my opinion

be avoided by one
sense

step

basic,

which

common-

not

always

of the most expert tech¬

means

well

worth

conference

searching

held

top-level management
and define

sible

just

with

discuss

specifically

as pos¬

this

what

certainly

are

pondering.

material

This

which

of light in

ray

casts
a

business

that

How has

man's bank, the highest
of the respond¬ .only
that

We must ask management to do
some careful
thinking. What are

ularity and prestige? In some re¬
spects very well. The cross-sec¬

the

tion

goals

program?

its

public

What

are

relations

its

various

audiences and what image or im¬
ages of itself as

institution does

the bank hone to build in the
pub¬
lic mind? This is the kind of basic

Americans

interviewed

overwhelmingly think of banks

honest, sound, safe, reliable insti¬
tutions.

There

false

to be corrected in this

image

area.

Most

people, according to the study, also

planning, followed by scheduling,

think of

that is everyday practice in

to go to save, borrow or
get finan¬

facturing industry and

manu¬

we are

used

this kind of precision in bank
operation.
Too often, however,
public relations omits these things.
We all know that

only

program fired

'kind of hit and miss
opportunism is likely to run off
a

bank

cial advice.

which

This
may

tion.

the best place

finding is one in
all take satisfac¬

By
these

means,

however,

people necessarily

will
to

bank for such financial needs. The

study indicates that despite their
high opinion of banks, people may
There is a further common-sense be led
by other factors, including
step which should be taken in psychological
reactions, to patron¬
formulating a public relations pro- ize rival institutions instead.
It
the track.

•

and

gram,

this

step that I
want to emphasize today. It is not
enough to define desired images

also suggests

and goals.

not

How

can

institution

build

a
successful
program
for
better relations with the public if
it does not know what is on the

public's mind? Suppose the public
mind is dominated by false
images
of banking
or of your bank or
...

mine?
tasks

Clearly
is to

of our first
dispel these false im¬
in order to do so we
one

ages, and
must know exectly what

they

are.

*An address by Mr. Eaton before the

Financial

Coast

Public

Relations

Conference

and

not

sure

This
to

what

Rela¬

tions
Seminar
of
New
Jersey Bankers
Association, Atlantic City, N. J.

are

bank is and does.

important, if
exactly pleasing, for bankers

know.

the

that many people

uncertainty is
Some

the

results

A.B.A.

study are as startling
and disturbing for bankers, to dis¬
cover
as
they are valuable for
bankers

learn.

Other

results

will be

disturbing to finance com¬
panies or savings and loans, but I
think it will be most fruitful if I
stress those that

apply directly to
most of financial public relations
people.
Semantics

Association
Public

Let

cite

concrete example
of direct interest to all those pres¬
me

the

first

"it

was

with extra money

put it in

would do* with

it, most of them "said they would

Bankers

Only one out of

bank.

people said the couple would

seven

what opinion

out and spend it.
The study
indicated in particular a strong
traditional, moral attitude.rthat

saving is

virtue and, having to

borrow is in general bad.

Savings and Morals

Knowledge of this psychological
fact

sometimes stuffy and

prove

may

useful

very

in the development

the most part knows

Another person said, "The

;

So
the $10 I

of savings

campaigns,-but caution is indicated. As it relates to us the psychology is tricky.
A moralistic

banker to

age

And he would

of expanding savings business for

aver-

stuffed shirt,

banks.

like those peoin with a lot of

.,...

those

interviewed
replied- .that
did not know.. Almost? as
many,
32%, said that a mutual
savings bank is like a "regular"

they

bank.

savings bank
dends and

pays

said

as; coop¬

interest

divi¬

approximately the same
replied that it

of people

handles loans.

One

the

tion

that

most disconcerting
study is the revela¬

the

American

confused

very

between

ences

public is

the

differ¬

financial

institu¬

tions.^ It is astonishing how wide¬
spread this confusion apparently is.

Judging from the study's results,
it is not impossible that some bank

institutional promotion

tually be promoting

Other

for

banks

themselves.

apparently under the impression
that savings and loan associations
are

banks.

In fact, when those interviewed

asked to

ferent

kinds

name

dif¬
they

many
banks as

could, the distribution of

replies
showed savings banks, mutual not
being mentioned, in first place,
named by 50% of the sample. Sav¬
ings and loans were in second

place, named toy some 40%. It is
noteworthy that Federal Reserve
next, named by 38%. Com¬
mercial banks were fourth, named
by 35%. In general people think

the study

"Did

are

society" and banks as places .of

pie apparently feel some embarrassment if not guilt about bor-

one

said.

person

me."

kind."

banker

person

thought

"on the whole, rather

It is gratifying to note that

rated

were

than

less

"That's

Another

of bankers

you

helpful

than

helplawyers, if

as more

and

men

insurance

men.

rowing instead of saving, the study
suggests that
they often avoid
banks for loans and seek to borelsewhere—even though they
think of banks as offering lower
interest rates on loans... Other facrow

also at work, but this psy-

They

tors

than

chological reaction is apparently
strong. To quote the study, "the
bank seems to get charged with

were also rated as friendlier
lawyers. On the whole, however,
to quote the study: "The

banker is

figure

seen

rather austere

respected, conservative,
competent and distant. The public
feels

—

little

emotional

industry. The public does not think
the

teller's chance of rising
top is very good, and many
people feel that his pay leaves
to the

desired.

One

person

defined

a
teller as "a low paid
fellow. Doesn't know what

young

he's

working

time

for.

He's

jealous

makes a deposit because he's underpaid and

every

can't

anyone

save."

Another

about 45 years, wears

said:

"He's

glasses, has

white immaculate shirt, uses
Parker pen. He's a melancholy

Loan Sources

onother aspect of the study of ob¬
vious interest to everyone in our

typical statement says a "I'd
to a bank for a mortgage. For

I'd go to

car,

bank

place in

which to put savings.
Actual replies cited in the
are

well

worth

study
attention, if

our

not to be recommended

ing

bedtime

reading.

sooth¬

said.

"They are the only
"places I know.
Well, for banks
you have your savings and loan
banks,
and
regular
checking
banks, and commercial banks."
Another

remarkable:

was

"All

even

know

the

savings and loan bank—you know,
the
usual
savings banks — they
have

window.

savings
And

and

there

loan
are

the

to human qualities, however, the teller
emerges from the study quite farating

W«"hSnfiS^nlf
ested
than
anvthTne else"
A

the

he wan.ts
he

pleasant and polite.

Only

frac¬

the

com¬

mercial banks, you know, that my
husband
deals
with.
Of
course

I've heard about personal finance

corporations and that kind of
thing, but t h e y'r e not savings
banks, they're loan companies. The
personal financing places, the reg¬

telleis

tained from

special emphasis
banks are toputting on campaigns to attract savings, the study's- results
day

in this
Time

area

does

are

of special interest,

not

permit a detailed
analysis and I must limit myself

some

the

pects

revealed.

cates

that

general

as-

The

long

get our
ob¬

bank: "I don't know

but j was sort of nervous
asking for their loan. It's
the bank's business to lend money,

why

abou't

of uneaSy about it.

but j felt sort

There

the thought

was

turn

w0uld

that maybe
down

soraething"

why
finance

Another: "The only reason
would

c0^

prefer

is that these people

the

money

readily

available for them there and that

very

I
think they would ever have

little security is required.

bank for fear that
and say

approached

the

would laugh

banker

now
...

isn't this ridiculousCoupled
.

...

with this uneasiness is a belief on
.

In view of the

Let him do what

car..

money back."
a4:, . !
Another one says of a loan

which many of our

wants

haughty, oi as cold and
the part
stern.
This opinion is encouraging, based as it doubtless is for the business
come in
most part on actual experience.
as

bank

would say well he thinks

company

a s

know tion of those interviewed spoke of

banks and finance companies," one
person

finance company.

might feel that I
don't need the car and not grant
the
loan.
Whereas
the finance
Well

sort of feiiow because he's under-

paid."

own con¬

Tellers Are Friendly

person's

science."

How people feel about tellers is

the views of the

rapport

with him."

that

are

came

first of all of

Because

assets.

great integrity, and because peo-

much
were

main

our

people regard bankers as "pillars

replies

one

what is otherwise

handicap

ever

new

suggest this arresting possibility
a great
many people are

in
on

favorable.

ac¬

business
prestige for savings and loans

well

could

believes

one

hear the expression firm but fair?"

bankers

results of the

who

hell and 100 cents

the dollar."

ful

Widespread Confusion

"He

God,

one

18% defined them

because

this unprecedented test of its pop¬

"In
him,

about what he's doing and. feeling about savings* is not enlittle about anything else."
• tirely
a positive factor in terms

very-

bank

commercial

told

Moral feelings do not pre-.
vent people from 'going into debt
pie who came
or spending all their income.t If
money.
I mean, he wouldn't pay they do so they often feel uneasy
: savings .and; deposits are commer¬
cial bank services.
16% said that any mind to the average guy who and embarrassed about their cona
commercial
bank
has lots of came in without too much dough, duct, and this embarrassment, the
services, hardly a high proportion, Those bankers—well, I mean the study suggests, may keep them
either.
"The word commercial," average guy with his few dollars from going to a bank for advice
never
even
see
the
the A.B.A. study counsels, "obvi¬ would
big about saving.
•
a
•
The part of the study that deals
ously misleads a lot of people and cheese."
Here I am reminded of a com- with loans and borrowing suggests
is to be avoided."
ment I vividly remember, the de- such a psychological reaction more
As for public recognition of mu¬
tual savings banks, the results are scription of a banker an elderly strongly, it indicates that people
lady gave me following the bank- have a mixed attitude toward
no less surprising.
Asked what a
ing "reformation" of the '30's. She banks that may sometimes make
mutual savings bank is, 34%
of

industry fared in

our

us now see

too much so,

handles loans and,finances homes.

and

of information that has hith¬

area

Reaction

proportion, 29%

vital

erto been shrouded in darkness.

particular

management hopes to prove.

framed with this

niques and its results
fresh

should

also

were

taken by any means. Before a
pro¬
for action is formulated, a

gram

Let

usually for

ents said

the

adult American population.
An
well-planned
effort was made to secure the jfrefe-*
always

practice and far too

the method of

East

said

number

teristics

eratives. 7% replied that a mutual

program. This axiom is not

those who

from

the fundamental
people toward bank¬
ers, banks and competing institu¬

to study "..

attitudes

case,

tions."

work combined with
ure

of the most progressive

one

basically
plain hard

relations

and is

gem

extreme

away.

she

Actually,, you see,* it! didn't
a cent."-/* 'a"-,H'••••*'"
When survey respondents were
asked what a hypothetical couple

cost

a
erably more formal. Asked to give
people who his image of bankers, one person
replied: "Pillars of the commuwere asked to define a commercial
.bank are also worth citing. Apart nity, very conservative, sometimes

replies

hadn't

bought the hat with

be such.

Other

anything.

hat

new

husband

saved.

of misconceptions is an
but the study certainly suggests that confusion, is
in general definitely widespread,

Only 20% said that a commercial
bank handles checking .accounts
and only 19% said that handling

and time.

Public's View of Banking

guaran¬

success

public

audience effectively and make

of money

international

Confusion, confusion; confusion!

so?

ered

pinpoint the problem
while distinctly an asset,
is no areas, the areas of negative opin¬
more essential to a successful pub¬
ion, for special attention. By the
lic relations man than it is to a same token we need to pinpoint
successful the areas of positive opinion. Only
business man, in this way can Ave set out to reach
our

banks—the

place,"

the
public has of bankers. According
to this study, rated in comparison
mately half of those interviewed
thought so. In fact only one out with lawyers, insurance men and
of five people identified a com¬ TV
repairmen, bankers are remercial bank as a "regular" bank, garded
as
more
honest, richer,
although more may have consid¬ harder to know, older and consid¬

reed to

customers

new

bank.

her

with

home

her

For the simple reason
that many people are under the
impression that a commercial bank
is a business man's bank. Approxi¬

good contact personality,

keep

Why

associations;

loan

commercial

came

told

cost

or a sav-

banks."

likely that such publicity

will

commercial bank is a businessman's bank withservices to individuals; and did not know what a
mutual savings bank is.

varied

out

and

banks

who

and

marked down from $20 to $10.

This

by publicizing it¬

checking account

mercial

use

other services to in¬

many

customers

savings and loan banks that
savings banks where you can

ings account, or I guess you can
go for a loan, and the big com-

loans,

self

use of recent motivation
intensive public education campaign
to inform a very confused American public about the differ¬
ences between financial institutions.
Mr. Eaton points out that
a sizable number of those interviewed did not know the differ¬

between

small

are

have

which

bank

its

just

Jersey Bankers' head makes

thought that

dividuals will not necessarily gain
new

research study to urge an

ence

its

Association
Fidelity Union Trust Company, Newark

President, New Jersey Bankers

New

increase

savings deposits, and further

':Jl-r"H^':,;ByiCHARLES A. EATON, JR.*
Vice-President,

call commercial

study strongly suggests

commercial

seeks

ular

handling public rela¬

tions for what

Thursday, May 23, 1957

...

of
.

the

public that the
„rQl

borrower• j. more welbank and more apt to

Set a loan than a man pr, woman
borrowing for personal reasons
,T f study makes a professio
observation of enormous lntei est
for everyone engaged in the bankpublic relations field. Noting
^at people tend to regard banks,
^ general, as stable, honest, reliable, conservative and rather
"cool," the study suggests that this
image is desirable for the prospec-

study indithe unprecedented level of consumer spending
today people still feel quite tive saver but not necessarily so
strongly that it is wise and good for prospective borrowers.
The
to save.
bank," it says, "is in the unusual
I

despite

reminded

the

woman

and difficult position or having to

Volume

185

Number 5640

The Commercial and Financial Chronicle

play dual and seemingly incompatible roles."- In fact we have
different

two

customer

here—borrowers and

perhaps

our

•
•

savers—and

should

programs

funds

Washington Gas Light

audiences;

the

be used for

company and
general corporate

will

were:

the

current

construction

Dick &

Merle-Smith; Salo-<
Hutzler; William
Co.; Francis I. duPont &

mon

Bros.

Blair

pur¬

including providing for part

poses,

Co. 5% Bonds at Par

•

(2409)

Co.;

pro¬

Two With Keller Bros.

Gregory

Wm.

Sons;

(Special to The Financial Chronicle)

BOSTON,

gram and to retire $205,000 prin¬
Pollock & Co., Inc.; The Robin¬
underwriting group man¬
cipal amount of long-term debt son-Humphrey Co., Inc.; Thomas
aged by Halsey, Stuart & Co. Inc.
have to date.:The existing popu-;
by Dec. 1, 1957.
&
'
c
Co.; Mullaney, Wells & Co.;
on
May 17 offered $8,000,000 of
lar
image of
banks, the study
F. S. Yantis & Co., Inc.; Fauset,
Washington Gas Light Co. refund¬ ►/ Washington Gas Light Co. is
points out, needs to be "softened"
Steele & Co.; 'Penington, Colket
ing mortgage bonds, 5% series ■engaged in the business of pur¬
to attract borrowers.'
::
1
& Co.; and Walter Stokes & Co.
due May
15, 1982, at 100% and chasing,. distributing and

flect

this

fact

than

re¬

Lorenzo

they "

have

'■•x-f ■;C --v'S

■

Summary

Summing

the

results, " the
study finds that historical stereo¬
types still characterize the bank
up

and the banker in the
The

image

public mtrtd.

bankers

still

accrued

writers

interest.
won

competitive sale
bid

The

May 16

a •within

99.11%. / .-;y; y.
bonds will be redeem¬

new

able at regular redemption prices

rather austere and remote.
The ' receding from .105 %": to par, and
at a special redemption price of
image of banks is still rather tbbl, "
100%, > plus accrued interest in
format, lacking ' in friendliness, -

there

is]a very definiteanxiety bn:
the part of many people .about do-. '
ing business with banks, particu¬
larly in borrowing transactions. In
other
words,
public
awareness
simply has not kept pace with the.
vast change that our industry has
undergone in the last 20

natural

under¬

each

case.

gas

•

and

other

ing will be added to the general

area

For the year

formerly

Mr.

that

made

Participating

CLEVELAND", Ohio
L.

revenues

income

Knight has

with

become

Russell

Adelbert

ST.

affiliated

the

communicated.

bers

the

west Stock

■ of

New

York

and

with

Street,

members

the

Miss Rothe

previously

Slayton

inc.

with

-.'y'ii

y,y

Public

The ghost of

century banking image
prowls to haunt our modern

industry.
prising

—■-

banking

This is not perhaps sur¬
the transformation in'

has

basic—but

been-

there

big job
relations still

the

move

false

are

image,

19th

banking public
be accomplished if
meddlesome

and

swift

re¬

lay

the

century specter

low.
I
.

cited

have

A.B.A.

study

consider it

parts

at length

the

new

because

unusually challeng¬
document and
feel
that
it

ing

should

cussed

widely noted

and

dis¬

those engaged in our
specialized trade. I hope that more
such

studies may

future.

near

be made in the

I have not mentioned

specific techniques that this study
suggests
but

lines for

use,

guide¬

action

banking public
guide-lines can
much value to everyone of

own

new

effective

relations.
be

offers

phases

many

for

clearly

These

drawing

that,

programs

soundlyand

are

realistically

WWM.

based.

Objective

•

evident

that

one

major assignments must be
tensive

our

in¬

public education campaign
straight on the dif¬

to set people

g§^l§l§lllg§j§

ferences between various financial
institutions.

people's
best

How

financial

served

know

can

the

expect

interests

they

difference

not

even

between

the

M
*

various financial institutions

serv¬

ing them?
In
we

mmm

I®

wWm

l§§ |
WM.

closing I

that

public relations

also build

urge

pro-

want

£///*/''''"'

•

that

grams

with

the

big enough to deal

are

situation

hand.

•

lar

easier to scale

ambitious
add

late

that

project

than

the game to

flimsy

"Make

down

and

over-

try

to
a

project

^WMM

inadequate.

;

"they have
blood.

about

going

realism

which

Wmm

MILLION

Energy,,
imagination
are
Off California

to succeed in the

are

jointly face.

the

ocean

geologist-frogman dives deep

floor in search of

petroleum-bearing

'.
;

Montgomery, Scott

PHILADELPHIA, Pa.
Scott

gomery,

Hunter

them

announce
now

associated"

richer

South

of leading

that John G.

registered

successful, America's oil

reserves

may

Mont-

Co.,. 123

Broad Street, members

Exchanges,

—

with

and other methods to locate
the

by millions of barrels.

On five continents Texaco oil

•

aerial surveys,

explorers

are

using

artificial earthquakes, soil analysis

THE
Fahnestock
the

New

York

Co., members of
Stock

Exchange,"

produce

and finer

petrochemicals and plastics industries... an invest¬
ment in

the future.

representa¬

has opened a branch office in the
Palais St. James, Monte Carlo.

satisfy

petroleum products for the transportation, rubber,

TEXAS

COMPANY

New Fahnestock Branch

•

oil to

phase of Texaco's multi-

million dollar program to

tive.

ever-increasing world demand.

This work is just one

rock for Texaco.

With

DIVE

DOLLAR

backward

forward?

and

needed if

task

;;

magic to stir men's
big plans aim high in

work." To put the matter

bluntly—why

Make

life and

little plans," a leading
American architect one counseled,
no

Progress

at your service

Midwest

Stock Exchange.

Saunders,

Stiver & Co.

offering

LOUIS, Mo.—Bonnie

feld, Moss & Hartnett, 721 ? Olive

Mid¬

Exchanges. Mr. Knight

previously

Morfeld, Moss

19th

still

Rothe is now connected with Mor¬

Co., Inc.,
Union Commerce Building, mem¬

was

the

—

public relations, the change
in banking has not yet been suf¬
opinion has lagged.

Lo¬

(Special to The Financial Chronicle)

bank

ficiently

Co.,

Co.

years.

have

with
Di

with

We must face it: Despite all the
progress

Reevea

Securities

was

affiliated

Brothers

With

/Special to The Financial Chronicle)

1956, the company

total

With J. N. Russell

purposes

metropolitan

operating
$48,360,000 and - net
$4,494,000.
\ ■ /

/ Net proceeds from the-financ¬

become

Street.

Rensis

Carmen

—

'Abbott

Court

renzo

Washington,- comprising the Dis¬
trict of Columbia and adjoining
areas
in. the states of Maryland
and Virginia.
■,
had

•

the

Zero

Mass.

and

.for cooking, heating,

of the issue at •'refrigeration

award

•,

Keller

selling

was

Co.,

..v-:.

The Commercial and Financial Chronicle

(2410)

million

America's Growth Potential

nounced

145

million

Now,

an¬

industry has doubled since 1937.

steel

will

are

Net earnings-per. dollar, are not as

casion.

which

second industrial revolution are
along with the steel indus¬

outlined by 40 year old steel head

tons

technology will restore sales earning competitive with other

industries; notes seasonal dips

longer deter capital

them.

expen¬

entering into, I firmly do a good job. What shall I talk
believe, what might be typified as about?" His father said: "Well,
industrial

revolution,
which will make the indus-

don't talk about the past because there
will be men in the
who will be older than you

trial revolu¬

room

tion

tory

they will know more
about it; and don't talk about the
present because there will be men

19th

recog¬

nized

his-

and

in the
Century,
small by com¬
parison. Why?

know

to the

living in

America of

siles

where

witnessing
and
experi¬
encing the in¬

Rackley

This is the first time
that two such great
have come into being si-

earjy

1959

history

multaneously.

experienced a change

ical age, and

^w we a^£?^™
from mechanical

one
one

fxnerience
experience

Automation is a
It wasn't so ten

automatic.

familiar

term.

Automics and the
a familiar term—
change and growth in America, if
ago.

years

atomic

will

worth

And

will.
Today we rip apart the basic
elements of the earjth, and we re-

fissionable majqri^js, and we

utilizing values heretofore unascertained.
No experience, no

are

two

must be an indication that we
not dreaming too much,

its capmight be too
expansive, I would like to show
or
attempt to
explain actually

steel mills of

our

part of it,
some
are
complaining
about business being bad.

The growth is just
in the field of elec-

startling

t r o n i c s. The development
transistors to replace radio tubes
represents a radical change in the
thinking of our communications

f»

w.--r-—~

ence

this growing

America.

Education.

the

informed

are

able that they expect to produce

writ- more in the next 10 years than in
today out of all the previous 75 years of their

physics textbooks

prior to 1940 are
date.
Also we understand

ten

from

leading engineering universities of these States that an elec-

existence.

the

Thi

has a very difficult time comprehending or understanding the
new
developments in electronics,
because "the precepts are so different since the days of his formal

trical

engineer - over 37

years

age

education.

Changing
•

■o

Briefly, the whole character ol
our civilization is and will change,
with or without you and I. We
must learn to adjust and change

•

temperaturl/ rt

■

J™

wrn

fields today are only capable.

degrees

Fahrenheit.

metals to hold up under

that.to a
it will be possible to take a

need

temperl-

range of 2500

toP5000

are

years

in*'wastefiss?oLblerm?teriritanut

all

types reflects

Now, let

the

ing.

3 Part °f the be- 1 industlT
proud to steel
Mr-

replenishing your fuel supply.
We know from the Atomic En¬

the

Commission, and its real sig¬
nificant interest in regard to in¬
dustry is un-ending, that electric
heat from a central plant, powered
ergy

duce

atomic

awav£
in
away

energy

is only

year

home
nome.

your
your

this subject, I am
about the son of this

In discussing

reminded

prominent Philadelphia attorney,
a
great speaker who said to his
dad: "I am privileged to speak to
a very prominent group, dad, and
I would like to pick a subject and
♦

Fv^m

fore

address hv

Mr. Rackley be-

the Central States Group

vestment Bankers

proud to be

and

°f thls year you read that the m"
dustry is now capable of turnin*
out n5 miUion tons of steel

year,
than

five

million

tons

three

steel

the

our
capacity
for
1956.
The industry has informed you
that we have added nearly 42
million tons capacity since the end

omatic,
so

Why?

The

prevailing
records

show

and

watched

discussed

have

the

National

taken

top

are

10%

wage

The

the Relets of

energy

and electronics.
1900

population

our

The

has

steel

making ca¬
pacity has multiplied six times.
We
now
produce
about
three
much steel per person as

did at the start of the century.

Chemical Corn Opens
New Downtown Office
Chemical Corn Exchange Bank
has

opened its newest branch of¬
at Rector & Greenwich
Streets New York City, Harold H.

fice

.pnairman,

The' ftew

and

announces.

quarters,

air-conditioned,
basement

completely
the street

occupy

floors

the

new

10-story additibn' to thb 19 Rector
Street

Building.

th* air
the Allied

Since May, 1922

been ]ocated in

Chemical & Dye Build¬

at Rector & Washington
Streets.
Charles A. Bernard
is

Manager
zanec

and

Raymond

Assistant

Ma-

Manager.

Chemical Corn Exchange Bank
which was founded in 1824, main¬
more

than

offices

all

five

boroughs of New York City
with headquarters at 165 Board-

time in

Hill, Darlington Branch
BOSTON, Mass.—Hill, Darling-

!"o, S;have opened an office
31 Milk Street under the di¬

history, too,-

rection of Don P.

1936,1

can

(Special to The Financial Chronicle)

KEY

remember,

was

Johnston, Jr.

Burns With Sutro

That is

WEST, Fla.

—

Robert

Burns has become associated with

J?
Blair

pany
were

•

for their purchases. These
customers and they were

essential

produced

steel.

there for?

tinplate

the

What

could

wasn't very long
40.

companies

Bros
<>

Co., • La

Concha

past be was witb

& Co., Inc., in N. Y. City.

were

ago.

get.

Joins

they
That

I am only

;

Glaser, Vogel

(Special to The Financial

that

To find, out how much

they

Ohronicle)

^ T. LOUIS, Mo.—Robert E.
Henske is now with
r

Glaser, Vogel
Co., Boatmen's Bank Building.

&
He

formerly with E. L. Zoer& Co. and A. G. Edwards &

was

Sons.

Expansion
Steel

such

basic nature to

our

nature

demand.

Replying to this
dustry,

the

(Special to The Financial Chronicle)
'

CINCINNATI, Ohio—Henry M.

Falke has become connected with

Westheimer
new

economic

postwar steel in¬
lead the way in-the
path to prosperity. The

Now With Westheimer

and

economy that

industry is confident that
supply at the right price will cre¬

nation's

are now at

our history,
investment in

and

ore

American Sheet & Tin Plate Com¬

the

capital

domestic de¬

uth5*',?f course> again we
atomic

have

Sutro

our

The

beneficiating

our

the

highest level in

posits of low grade iron

Sees No Curtailment in Steel

3ust get where cost of living-, and

invested

ing

that

Safety

Bureau of Labor Statistics

ore

plants to convert

around, and I was an office boy,
people waiting in the halls of the

steel's

earners.

develop foreign sources
in Canada, Venezuela,
Liberia, and other millions are be¬
of iron

all changed

past

yefrs

but
active part.

precept of

are right now. The next two
years will add another

develop,

the demand required.
far from true today.

con¬

there, rank among the
of the manufacturing

dollars to

way.

this revolution

was a

Our wages, heaven forbid, but

they

spending hundreds of millions of

self to produce only as much steel

its

Council.
>

grows,

and not too many years ago, when
the
steel
industry equipped it¬

dustries

industry has not sat
idly by in this growing America,

degree of
the
daily
that

Somebody said: "Well, this raw
getting to be
problem,."
The
industry is

material situation is

steel

As late

accident rate is among the lowest
recorded
for
manufacturing in¬

areas is steel, and
industry is committed to

furnish that steel.

tains

the nation.

ate

three

1955.

metal working

grows

The

the best of all in¬

are

commoaity for development

ing

that it is almost axi¬

say

of World War II. We spent over (indicates that earnings have ad58 billion in the industry in the vanced far
more-rapidly than the

Even if it is

bit

uct sales in

that the employees

industry work under

dustries.

work

are

1955—

over

you want to project a lit¬
further:
1975, 20 years
'55, will show metal working
sales up to
$372 billion, or as
much as the gross national prod¬

pro¬

increase

Now,

tle

growth has not overlooked human
facts

the

undeveloped

of- the

lrom

com¬

working sales $193 billion.

before U. S. Steel

industry

go¬

increase

market

Growing America.
wrong, it is good.

States.

largest

are

five years.

values.' We face the facts of life.

safety

part of it.

I think the steel
industry is fac¬
ing the facts oi: life. In January

of the in-

Association of America,

United

States^ and the increase in

That is 50%

54%.

ditions that

consuming

•metal

com¬

panies in the industry only

American way of life,

the

where

million

steel

oasic

this in¬

take

look at the facts

see

Today

population by 1960 will have the

produced over half the steel

consumed

can

our

one

just

and

There
ago

years

steel

forecasts

under-developed areas of this na¬
tion, and of the world. And the

doubled.

classifications

We project the

the

year.

The

office boy, I think the
industry typifies the Ameri¬
way of life. I think it is basic

products:

$23 billion.

and let

United

tween 1939 and 1956, 11 new steel

Fairless'

without

home for several decades

coal

ratio to the growing population in

tech-

Ana mere is competition in the
steel industry. There are cornpanics today producing steel in
118 communities in 27 states. Be-

half

economic

range

Since

five

of life

one of tbese highly specialized
steels for one or more of its es-

over

capacity will
production. So we are not
so
frightened by these seasonal
dips, because today we have a
long-range plan based on longgo into

times

crease

revolution in growing America,
tba* can be made without using

capacities of

million tons of steel

the

cimi.zed steels in recent years,
There is hardly a machine
used today in bis Progress, this

Yet

and

they

coal into usable materials.

billion, as compared with
working of $128 billion, and
thus metal working is larger than

?xie. AfaA cviuwiw ux uic iwu-

Steel Expansion
and 1

industry

what

$126

in the total production

economy as a whole.
The real evidence of the

pany

billion

metal

our

$128
of

American industry.

Fifty

the

based

By the end of 1957 another five

Add them all up and you have

dynamic trend of the industry and

tons

working of

successful

one

'54.

Textiles: $13 billion.

Competition and Decentralization

on any sort of efficiency rating
to withstand temperatures of 1650

one-third

classifications

Chemicals:

companies, stee* producers, ingot

Lumber and furniture: $13 bil¬
lion.

solved. producers took the field, and sevblades, Td the^rotors6used^'in ^ °f lheS6
rank
among the top 30 companies with

It wj11

$28 billion.

sential parts,
-I

Uv' ?n
,
Yat ,yery
Whl? w I
Wff ^an
.
y•We a+,,?. u"

'V or ^ ;tures in the

w,!1'not survive™
VWe
Xmed

and the }et Propul-

Civilization
u

4-u

mPntjnnArj

about

Petroleum

monopoly,

rise

'56

and

Food and beverage: $49 billion.

General Electric. According to
a publicized statement, electronics
and atomic energy are so profit-

economy,

shows the following:

therefore,, we must experia readjustment of values in

And,

that

rxr~

—a—

our

compared with the next five larg¬

industry in this,pra. Now the rush '^lOipcal program emerges when
background. We discuss neutrons is on to develop sending and re- txle x0|:a:s are broken down to
~vQ/iioi'miiKj
ceivine
sets
larger
than
show the notable increase ih outand protons.
We are reclaiming ceiving sets no larger than a snuw uie nuiauiexnucasc m uuithose materials that I mentioned, wristwatch.
put of alloy, stainless, and spe-1

metal

national product.

est

birth, and consumption is increasing.
'■••'3

steel

seg¬

1956

are

Metal

point today. The government is
preaching it (from the security
standpoint. We are trying to get
closer to our given markets and

The

gross

Many are aware of the fact that
decentralization is an important

Tne

dealt

did

the steel

sales

are

nation.

Electronics.
as

there wasn't

over

there

aggressive steel
company that curtailed its pro¬
gram.
They took their profits in

figures are not
out yet, but in 1955, gross metal
working sales totaled $128 billion.
In relation to our gross national
product in '55, it was $387 bil¬
lion. Historically, metal working

the conservative side,

Some

off 27%, and

were

steel company, or

relation

whole?

yearg

to the electric furnaces of

power

the

again

metal-working
industry.

fundamental

industry

who live in Chicago;
people who are part of the Midwest can see
growth on I every
side: New school buildings, roads,
—growth.
and still

has

that

Company

any

1n!,canL remember as recently as
19d4 when the steel

working.
They are parallel.
Now, how big is metal working

People

right now is
However, I do not

any curtailment of its
capital expenditure program.

this?

metal

must

all sales

technology.

they

of the

Steel

requirements

And

by the

ment

longer, and more children survive

the

about

with

expansion program with

that it is

talk

metals.

steel, for example, is now prowe will experience pocket atomic duced in 27 states, and you can
reactorg which will supply the remember, most of you, when the
power or be capable of supplying Pittsburgh District had almost a
within

accent is

you

So for those who think that this
ital

steel market

know

How

Metal Working

are

power

already on

are

man¬

working*
because they are synonymous, and
when you talk about electronics
and atomics you are talking about
metal working: steel, copper, lead,
aluminum, uranium—they are all

nuclear

the

All

We can't talk about steel unless

years
be $8

there
of

will

between

1975

The

the consumption areas. The population
is moving out into
the
hinterland.
People
are
living

announced programs.

you

ceive

1960s;
an^

billion

age

com-

reactor plant

plants built. These

manual to the '™echan-

from« the

darn

bea billion-dollar business by the

........

and atomics.

have

business,

but is

large,

1956

informed that the

are

ponents for

....

outline

Guided mis-

business.

billion-dollar

not

We
Frank

electron ics

forces

exciting beginning.

troduction

item

new

was

are

and they will

are

called "Missiles."

ours

intel-

about it; but give hell
future, son, because no one
anything about that."

The

in this
growing

you

are

knows

day

who

room

ligent than

e c a use

are

the

percentage of only

three

son,

are

the sales dollar.

will stop? Or will it level
off?
No, not necessarily. But it
means
simply this: The steel in¬
dustry has announced its program
for more, and they have made ap¬
propriations for the next two or
three
years,
and that certainly

are

second

show

ufacturing average is 5.9.
are
we
going to overcome

We will do it.

tioned

plans; and avers the industry no longer equips itself to
produce as much steel as the demand required, for it is con¬
fident that supply at the right price will create demand.

one

sales

exceed

oc¬

announced

Now, does this mean that this
expansion program that I men¬

diture

lot

The

somewhat soft.

5.6

years

takes

our
challenge. The steel indus¬
try's 16-year average earnings on

take much to reach known poten¬
tials.

Nine other manu-'

in 1940.

industry will rise to the

facturing industries show a higher
profit on sales. And therein lies

year.

try's expansion plans for a "growing America." The 115
million ton steel production of 1956, Mr. Rackley states,
should reach 145 million in 2 or 3 years, and the present
$1*28 billion metal working industry is expected to attain $193
billion in sales in 1957 and $372 billion by 1975. Hopes that

the

high

some

analysts have heard
me say
115 million tons was our
capacity. Their reply has been:
"Well, you produced 115 million
last year."
Of course, it doesn't

President, Jessop Steel Company

Propellent factors causing

These

bring the capacity announced up
to

By FRANK RACKLEY*
v

tons.

programs,

Thursday, May 23, 1957

...

Walnut
New

Company,
members of

and

Street,

York

and

Exphanges, He

Cincinnati
was

322
the

Stock

formerly with

W. D, Gradison & Co,'

}

Volume

185

Number 5640

The Commercial and Financial
Chronicle

(2411)

Constiuction Industry's Role
In the National Economy
By WILLIAM F. BUTLER*

York City

distort?™" in6our

Warns
T)

V;\'.'vdangers of inflation.
24

questions
and I propose to answer most of
these

questions.

probably
fellow

doing

so,

one

I'll
my

plained

ex¬

never

business

tion

doubt."

tial

construc¬

tion for

the

nation
whole

it's

have

decade.
first

glance

they look dangerously high.
However, construction costs
have gone up—a fact that I take
it

something short of

revelation
If

heavy

compare

with

divine

some.

adjust for rising prices

you

and

construction

total economy, you note
non-residential construction
our

that

accounted

for about

6M>% of the
nation's total output in the 1920's.
Despite the very high level of act i

i t y
recently,
construction's
share
in
the
total
economy
is
v

lower than in the late
Now

the

what

does

future?

ject, and

1920'srn

this

That's

mean

large

to devote the rest of my

give

clusion

first.

look

for

general

you my

remarks.

over-all

con¬

be]ieve the

construction

out¬

and

for

business

activity is most
favorable if we can keep our feet
on solid ground as we move ahead.
Now

hind

let's

this

startling to realize that

look

what

than

belief that

period of de¬

be¬

do lit¬

can

personal

avoid

can

the

sort

deep and prolonged business
slumps that have characterized
past history. Our economy is
basically different now than in
the past — we have an amazing

our

population

growth,

consumer

market that is broader and deeper

before, the revolution¬
factor of large-scale, sys¬
research, and we have

ary new

tematic

given government the responsibil¬
ity and the power to combat both
inflation

and

First,

Axiomtic

believe

shows that
will

Think

of what the

the

evidence

growing economy
expanding volume

need

construction.

need

roads,

schools, office and apart¬
ment buildings, water systems, in¬
dustrial buildings and other con¬
struction products to support the
continued growth of our economy.
than

nation's

three-fifths

wealth

consists

government

prosper.

Such

able

studies

have

been

show that need# in

make

the New York Area for construc¬

tion, outside the one-family hous¬
ing field,
tinue

vast and will con¬

are

Neighborhood

grow.

shopping centers may possibly be
an
exception in the near future.
But the continued growth of New
York

center

the

for

Head¬

quarters of the nation's business
and

finance

should

sustain

demand for new office
To

the

buildings.

put it in its most elemental

terms, a growing corporation must
have a New York office to enter¬
tain

properly in these

customers

days of a 52% tax rate. And the
New York office has to be air
conditioned

—

American business

couldn't operate

each

year—almost

amount of

century

new

taxes

ago.

20 times

quarter of

slumps wisely,
move

ahead

these

use

against

weapons

and

inflation

believe
fine

fashion

address

without secretar-

Butier

before

Congress,

(Charts

the

omitted)

New

New York City,

York

by Mr.
Building

May 6,

1957.

kcep

all

(Iclinitlon

of inflation is that it
result of too much
money and
credit chasing around
after too
few goods.
Thus, tight money is
one of the
standard antidotes for
in nation.

the

economy

strangulation.

the

point

Rather,

the

most

the

all

things to all

misused

language—they

this will be
As

ness.

have

very

good year for busi¬

things look
leveling or

downward
But

many

now, we may
a

moderate

adjustment next

The
we

reasonably
- problems.

these

confident

that

we'll

||b

■

can

;

roads,

—

would

the

seem

New

York

Of Fewel & Go.
a*™™™

IViOSeley - rSrancn

**•

LEWISTON, Me.—F. S. Moseley
& Co. has opened a branch office
at 110 Pettengill Street, with Raymond H. Cole

area

least

■

LOS ANGELES, 4Calif. - M. F.
Jacksan> Jr., has been»elected a
I
T & Go.,
5 5
J} Sprmg Street members
:0~ the Pacific Coast Stock Exchange.
l
r
c
i
0
:. V '

The outlook for heavy con-

struction

■

llaCKSOIl) lllif

r«

representative,

•*

■

are

terms

can

mean

men.

problem

were

trying

1956

NOTICE OF REDEMPTION

that

was

than the

invest more
amount which could be

financed

out of

all

savings.

businesses

were

and

trying to

Individ-

these

demands

borrow

economy

pacity

was

wise policies.

Thus, easy
have merely
given

flation.

Having made that glowing state¬
me proceed rapidly to
qualify it by explaining what I
mean by
saying that we can main¬
tain prosperity if we act
wisely.
Wisdom in this
when

sense

involves the

restraint

inflation

threatens

times
and

boldness when the business
turns down

The fact

Political

Problems

reason

why

contain inflation may prove to be
the more difficult.
The general
trend of consumer prices has been
18 years.

prices

was

mid-1951

until the

gradual

prices
of

have

living has

3.7%.
has

been

inflation

necessary

for

about

infla¬

argued that a
in prices may

prosperity.
In
my opinion that's not only a mis¬
guided view but one that is posi-

shore. Such

surplus

the

con¬

credit

means

chiefly
definition,

that

some

time

on or

assure

Stock will be converted, the

that

maximum number of shares of 1954 Preferred

Corporation has orronged for Harrimon Ripley & Co.,

Incorporated and certain firms associated with it to offer to purchase ot ony time
before the close of business on June 18, 1957 oil shares of 1954 Preferred Stock
which

ing

speeches

inflation, and

transmittal at

price of $52.25 per share, and to convert the stock so

purchased into shares of Common Stock. This price, after deducting stock transfer
taxes

paid by the seller, is slightly more thon the amount the holder would '*

receive

the

redemption of

Ripley

1954 Preferred Stock. The Corporation is paying,

Co., Incorporated ond

In this

mine

All certificates

tight

nome

requests

representing shores of 1954 Preferred Stock registered in your t

should be forwarded to United States Corporation

New York 4, N. Y. A letter

That's why

connection,

If,

move

upward

growth,
tended

ahead

course

we are

the.

future.

opinion of
on

1954 Pre-

Ripley & Co., Incorporoted ond its ossociotes,

our

redemption price.

counsel,

gain

•

loss will be realized for Federal income tax

conversion of your 1954 Preferred Stock into Common

purposes.

No dividends will
which has
>

now

accrue

been called

after June 18, 1957

for redemption. Such

Into Common Stock after June

the 1954 Preferred Stock, alt of

shares cannot ba converted

II, 1957.

I; '

TUNG-SOL ELECTRIC INC.
*•

ex¬

inflationary

gen¬

economic

Company, 50 Brood Street,

in forwording your 1954 Pre¬

Stock prior to
June 18, 1957, but, if you do not elect to convert, ony goin or loss which you may
realize on sale or redemption will be taken into account for Federal income tax

principle."
can

desire to receive the
In the

friend

likely to have

periods

pressures

your use

from United States Corporation Company.!

important that you indicate on it whether you desire to convert your

purposes

"Politics

believe, the nation

continue to
eral

that

above

of transmittal for

ferred Stock, desire to sell it to Harrimon

inveighing against
then voting for tax

remarked

its associates o commission for their-

undertaking.

po¬

cuts, or more snending or for an
investigation of the Federal Re¬
serve.

•

duly tendered for sale to it in the manner set forth in the accompanying

are

letter of

politicians mak¬

many

...

It is

$60.85.

indicating your desire to convert, must be received by United

for

budget surplus.

(except that scrip wlH be issued i» lieu of

price multiplied by 1.83 shares equals

ferred Stock certificates may be obtoined

be converted into shores of

may

before June 48, >1*957. The last sole price of the
16, 1957 was $33.25 per

for loans
go begging. And no one
likes to pay the
high taxes needed
you see

Stock

Corporation Company not later than June 18, 1957,
converted into Common

Harriman

1954 Preferred Stock

poration's cash. In order to

government

savings.
one.

share (which price includes an amount equivalent

Preferred

Stock, the redemption of the 1954 Preferred Stock will require the use of the Cor¬

rise each year—but
only at
rate that could be
financed out

problem

amended, will redeem

To the extent that shares of 1954 Preferred Stock are not

savings.
Heavy
construction and other investment

The

Moy 17, 1957, end in

1954 Preferred Stock is convertible, you determine to convert
1954 Preferred Stock, the certificates therefor, together with o letter

States

could

adopted

Company, 50 Brood Street, New York 4,

the New York Stock Exchange on May

of transmittal

budget.
Such policies can
keep
the rise in investment in line
with
the growth of

which your

com¬

and

money

cash

If, after taking into consideration the value of the Common Stock Into

keep

pressures under

frequently rises

Well, why worry
It

middle of last

then

moved up—the cost

advanced

period

The general average of
reasonably stable from

Since

year.

1940—a

Common Stock

such

We could do this bv
bination of tight

per

1954

that

fractional shares) at any

Credit

we cannot

Tung-Sol Electric Inc. at the rate of 1.83 shares of Commoo Stock

each share of

for

In strictly economic
terms, there
no

advised

are

Common Stock of

in¬

dividend accrued to such date).

You

did

18, 1957 all of the outstanding shares of its Cumulative Preferred

redemption price of $51,896
to the

physical

-'v

4.3% Series of 1954:

4.3% Series of 1954 (hereinafter colled "1954 Preferred Stock") at the

Stock,

ca¬

NEWARK 4, N. J.

r'>

hereby given that TUNG-SOL ELECTRIC INC., o Delaware corporation,

N. Y., on June

been

prices

AVENUE,
;

office of United States Corporation

at the

Restraint

curve

Of the two, the
problem of ex¬
ercising the restraint necessary to

Notice

money would

that

EIGHTH
"'•>>•/■•

accordance with the terms of its Certificate of Incorporation, as

in face of tight money shows
the strength of
inflationary forces.

bit.

since

.V- ■«»

pursuant to resolutions of its Board of Directors

go up

litical

upwards

have

trol.

Boldness

ment, let

exercise

could

increase

inflationary
Restraint and

working at its

there

—

i!'

To the Holders of Cumulative Preferred Sfock,

volume.

year.

pursue

met,
we
would have had a
sharp increase
in the
money supply.
But our

next year, and for

years,

TUNG-SOL ELECTRIC INC.

government

all

avoid anything like a

can

serious slump

tion?

fields

many

(3)

the

Now, savings and investments
in

all

"head.

our economy moving ahead

margin.

goal
should be to keep the
increase in
the nation's total
investment in
line with the increase
in savings.

two

are the

wisely,

schools,
office buildings, waterworks, hospitals—needs are still outrunning
construction volume by a wide

The objective of a
tight money
policy should not be to
squeeze

little

sharp and spe¬
cific statement, it is my view that

be
•-»An

relationship between increases

mone/ supply (i.

with

our

enough, and

cope

n*->j

Federal Reserve
system had pro¬
vided the reserves to
enable

now

lion
the

crxn

p0^s If have act to make.
I
tried
(1)

con-

general

takes in almost $80 bil¬

ment

the

products of the construction in¬
dustry. Thus, if the nation pros¬
pers, construction as a whole must

well

W,, step
up ..their i investment
in
autos, houses, plant and
equip¬
ment, roads and schools. If the

to stimulate

the

wise

Now, by way of summing up, enjoy general prosperity and reif T'xro
4markahlr*
frnwfh
let's see if I've answered the im- markable growth in th*» years
in the vhars

purchasing
power by cutting taxes if business
slumped.
The Federal Govern¬

could

To make

our

There is

will

lucky enough, to

con-

done to

can

uals,

slumps.

for many years.

Growth

Well, what

nation

Thus,

the^Sl pri^lev^ P°!'tf t questions^ Here
be

WCU as In

It is my personal belief that

keep

Summing Up
I'e

tain inflation?

**
rate

ever

can

lies

broad conclusion.

state

purl

personal

sub¬

to which I propose

one

But I'll

for

working to

(2) The continued growth of
our economy would mean steadily
expanding needs for construction.

For lack of space,

than

are

popular, and reasonably accurate,

experience with
pression.
tle

who

economy stable as it advances,

c.oul(^ double our over-aH production by 1975.

move

population have had
William F. Butler

our

rency in circulation plus bank
cleposits) and increases in prices. A

75 million persons or 45%

really soared ;
in the p a s't

those

it did

be most

~~7

skoak* be held down to the
of ^crease m savings. \

ft!iving ful1 and active-:support to

ahead

brings

old enough to have vivid
of the 1930's — though

bit

slump,

Thus, the construc¬

industry should

the

major depression? Many

are

the 1920's.

our

This

memories

na¬

large subject: Can the

continue

without

tion

0,1 a stronS growth trend, one that

second

might start down in advance
business

control.

u
V
^ In the short run, tight
mone.V holds down the increase in

(7) The construction industry
tjon costs is the chief threat to should support measures to conyour prosperity in the next few tain inflation. In the long run, inyears. For very practical reasons, Nation will lead to a boom and
therefore, the industry should be bust in construction.- /

conin^fim?1^?!j •+"
?
activity

event

under

cur-

and advance.

nation

tno

the

industry if

011

residen

good

whole continues to pros¬

per

ex¬

penditures

should

construction

•

general

...

the nation, and youT'i"?
must bring the rise in

e?" C°"tam ,nflatlonary Pres"

out pre-

past' construction has been one
of the leading casualties in periods
had 111 of boom and bust. What's more,
a more the recent inflation, in-construe-

•;n

that

money and a Federal cash surplus,

pointed

as I

a very considerable
helping the nation keen

vnnre

trends1

Avoiding Depressions

Now, I've made the point that

wrong

Dollar

resource.

And
they're probably the best
salespeople the air conditioning

fre¬

quently

scarcest

our

they're

—

/4\

bv^

inflation

stenographers

perhaps

that:.

"He's

non

and

and construction industries have.

econo¬

mists who

but

sound

ies

stake

ijef
brought
nfri,S ;canst^uctl°n costs
trenric
i ?.rIces- }£ these
iril lhnlr S continue,
there is
ho
'thf that construction Will
r-min

1 hm.i

the industry out of its market; and
must learn to live with tight money due to ever present

business is

viously, it has

that for the nation

1955 wis ZZ and cof under control.
constfuctto? poUde^in thHteldf oTCm
intimnfr>iJ poilcies lp tne helcls of tight

incurred to finance
this
so

whole.

Indiistrv

vlttoT ha£f

recent

struction costs may price

Construction

inflate

favorable
a

end'of

rtanding at the

important role in the 1929 crash,

Mr. Butler opines: (1) serious slumps can
by wise use of new weapons providing they are em¬
ployed with timely restraint and boldness; (2) general price
inflation "is positively dangerous" and continued
upward con¬

before

excesse

played

with
avoid

AU ?f tWs p°ses s"edal Prob" fut«re,
aT /if.A6 buiIdin? i"dustlY- durtry.

t(?0~ll5eral

rrertit

are

pattern.

point where

h?
ciedit—which

nf
of

bust

others- Yet,

be averted

have

these

to'the

and

aU'ected

use
use

justment in 1958.

build

""if

economy

carried far enough

boom

^d~t^^0?mS^hiclJ

the construction industry of the perils
bright prospects, Chase Manhattan Banker
and Economist predicts a good business
year for the economy
in 1957, and envisions a
leveling, or moderate downward ad¬

tignt money, if
a

stomnbrThns0nita ""to" J3"5'""?5

of inflation to its

(3)

have to.learh to live

building industry.

slump. -Thus, it was the boom 111
the
stock
market
and
in
real

of warning

course

the

can

Vice-President, Chase Manhattan Bank, New
In the

.lif?Ifjrtda?^er0US'+-LbclleYe
inflation
particular threat to

.May 17, 1957.

ty LOUIS RieiEN,
President,

r
'

Thus,

The Commercial and Financial Chronicle... Thursday,

(2412)

proposal to the Congress later this
month. I would like to give a brief

Approach to Economic Aid
And Mutual Security Program

A New

review of
.

and to further more effectively our
national interests, State Department's economic head reviews
proposal which would allocate properly $3 of the $4 billion
a year Mutual Security Program to the Defense Department,
and create an Economic Development Fund to utilize even¬
economic

abroad.

assistance

;

largely

adminis¬

budgetary responsibility, place;

During the past year our pro¬
of Mutual Security have
been going through a (period of

lesser

1 exi t

grams

made

s*;

There
grown

its

has

e s s

o n

States/ in
attempt to

approximately
out of

taken

billion

the Mutual

Security

appropriation bill and be added to
the

funds which

the Defense De¬

strong forces, is an in¬ partment has already requested
tegral part of the defense of the for the armed forces of the Unit¬

funds

are

free world and serves the purpose

divisions

.are

such

maintaining the-

Korean
an

joint defense

our

troopss

important part

against the

Chinese Communist threat.

States.

jchir alliances do not

there

common sense

own

gress,

The

fense
a

not included, in the Der

Department budget is more

for the Defense De¬

to /justify

partment

;,l

:$2 billion, or half of the
present Mutual Security appropri¬
ation, goes for military hardware.
Just under a billion dollars a year

differ in pur¬

and objective from our
military expenditures . ,
fact that this part of our pro¬

pose, scope

gram was

Conclusions

Communist

deterring

and

Con¬

the

to the American peo¬

ple, the cost of equipping
maintaining these divisions.
On the

and

otherv hand; th6 Defense

matter of procedure and admin-; Department is not organized to dp

istration than of substance."

the actual

day-to-day administer-

program

for

MAKES/

WHA T

CHE

present form, challenging our

existence, either by direct
threats or by economic
penetration and subversion; so
long as the explosive demands for
economic progress in the under¬
developed countries threaten the
very existence of free and demo¬

that the Unit¬
ed

We will recommend that this sum

military

mistaken

impr

eign military assistance in the De¬
fense Department
budget where
they can be recognized for what
they really are, part of the United
States military security program.

very

long time to come. So long as in¬
ternational Communism exists in

quarters

many

the

such

maintain

un-

is to

and that we will have to

States,

American '

now

in the best interests of the United

for

people to

kind

second

About

First and most important,

maintaining
military forces larger than they
themselves can support. Thus we
see that approximately
$3 billion
a
year, or three quarters of our
Mutual Security Program, goes for
military purposes.
All of this military assistance,
whatever
it takes to equip and
are

intend to do

change the procedure. Henceforth,
we wish to place all funds for for¬

is agreement that the continuation
of a Mutual Security program is

them{'

difficult
the

they are always

Two General

but

Chinese,
military

who

which

present.

critical re-examination. The com-

these, p r o-

vigor

other

our

Korea to assist in

on a

grams

hard¬
tanks,

NATO allies in West¬

our

allies who

our

What

support.

dollar figure

It is the pefense Department
attack.maintain, for our com¬
Admiral Radford, Chairman of the that must make the military deci¬
mon
security, mi 1 i t a r y forces Joint Chiefs of
Staff, put the mat¬ sion .as to how many\ divisions|
larger than they could otherwise
ter plainly'last year when he said,! equipped with American arms are
support. This second form of aid "The
military aid program is part needed to defend the Republic of
is called defense support. A good
and parcel of the U. S. Defense Korea and other places where we
example of defense support is the
Department program.
The ex-v and our Allies are facing Com¬
economic assistance we provide to
penditures abroad in support of munist troops..It seems only plain

loan basis, and clearly show "our people
just what their money is being spent for and why."

aid

Nationalist

and

defense

billion

Europe. All of it goes to those

ern

for

of this

maintain

The

expense,

grants. Claims this will achieye

guns,

those required to help those coun¬

tries

Point IV, and our share of International
Children's Fund, Aid to Refugees, and limited emergency
trative

military

allies.

The remainder of the Mutual

Security funds would be used, Mr. Dillon states, for

kinds of funds.

for

actual

the

namese,

the Turks

basis for rendering

new

on a

planes', etc., which we put into the
hands of the Koreans, the Viet¬

To lessen public confusion

tually $750 million, in loans,

first

ware—the

Department of State

includes two
The

required

goes

First, let us look at the military
portion of the Mutual Security
Program. It is by far the largest.
It

By HON. C. DOUGLAS DILLON*
Deputy Under-Secretary for Economic Affairs

;

current thinking.

our

None

May 23, 1957

please foreign

Douglas Dillon

institutions

cratic

those

coun¬

must m a i n t a i n some
without adequate thought for its form of Mutual Security program.
The second general conclusion
own best interests, has been busy
of all the studies is that there is
giving away some four billion dol¬
need for greater clarity in defin¬
lars
a
year
of our taxpayers'
ing what the Mutual Security Pro¬
money.
Of course nothing could be fur¬ gram actually is. Both the objec¬
ther from the truth, but there is tives of the program and the wayscountries

and

tries,

„

denying that this is what for¬
eign aid means to many Amer¬

icans.

some

aid

been

move

achieve

objectives must be widely
understood by the American peo¬

these

up
in ple or the program itself will not
feeling that our be supported.
What is the reason fair all this
programs may not

also

quarters

economic

have

has

There

which

grown

administered

the

confusion

about

the

Mutual

effective

All this has led to

widespread

Program?

curity

manner

and

thorough-going review of our
programs
for
Mutual
Security.
This is as it should be, for these
are complex and costly programs.
have

diverse

with

Se¬

The answer is
possible,
halve in' the' past
that there may have been unnec¬ simple. We
essary waste in the use of govern¬ lumped together under the head¬
ment funds abroad.
ing of Mutual Security, a bundle
most

addition to

many

outside purchases,

of its freight

In Railroad YA1CA at

C&O builds

Here Shop

cars.

Superin¬

Russell, Ky., Shareowner Price (right) talks with

employee-shareowners,

Freight

Conductor Arnold M.^ Smith j( left )

tendent J. G. Rdyburn shows Mrs. Loutseh the
•

Transportation Clerk Bert .W. Harris.. Many. G&.0

final

pate in employee

stenciling step.

;

men

stock purchase plan.y

and
...

women

twl

tarl

partic|

a
package
variety of contents.

programs,

broad

example, during Fne last six
Mutual Security has meant
artillery pieces, 40,000
tanks and
combat vehicles, , and
For

years

44,000

been made by: a
7,000 aircraft for the military
Commission, a Pres¬ forces of our Allies.
1 >
idential Advisory Board, the
It has meant/loans to build
Foreign Affairs Committee of the
dams, roads, and harbors.
House,, a Special Senate Commit¬
It has also meant technical astee, and by the interested execu¬
sistance, suchv as telling people
tive agencies of the government.
how to plow, or how: to I kill mos¬
Universities, business groups, and
quitoes so as to avoid malaria. 1
Studies

Presidential

institutions

research

have

been

studying and debating the subject.
The meeting of the American As¬
sembly" is but one of many serious
attempts by groups of private citi¬
zens
to find the right answer to
this question which is so impor¬
tant to the future of the American

All of these things, involving an
expenditure of approximately $4
billion, have been lumped together
in our budget. It has been diffi¬

cult,

not

American

impossible,
to

fori the

just
funds were go¬
for military purposes, what
part for long term capital devel¬
opment, and what part for tech¬
nical assistance or for meeting un¬
foreseeable emergencies.
people

know

what part of these

ing

people.
In
short, this effort at reap¬
praisal has involved not only of¬
ficials in Washington, but also a
great many of our most distin¬
guished private citizens.

Shareowner Loutseh,
tracks to

located

serve

near

Flint, Micli., looks

gigantic auto body plant. 98

C&O in 1956,

over

new

over

new

industries

1,000 in the last ten

years.

the

Newport News, Va., C&O's Atlantic port, Mr. Price

export

inspecl

completed. Almost half of overscf
coal is handled here. He also saw the new $8 million pi|

new

coal export pier, just

designed to unload 60 tons of import

ore per

minute.

mmmtzmxsBBi

$ Tfc "i ¥
Present Efforts to Untangle Public

Confusion
hope that as a result
^
interest, both public and
In view of the complexities of
private, the way can be found to this program, it is easy to under¬
redefine, clarify and simplify the stand why there is public confu¬
program so that all our people can sion.
Our major efforts are now
is

our

of all this

have confidence that

are

pur¬

being devoted to finding a better
to present the program so as
to clearly explain its purposes to
Are
there
any
general guide the American people, while at the
lines that we can draw from all same time assigning major respon¬
this study and thought? Is there sibility for the various parts of the
to the agencies which
any real consensus? The answer program
is certainly yes. Two general con¬ should have that responsibility.
suing the right objectives in the
right way.

way

clusions

are

found

all

the

re¬

ports and studies; they are some¬
times expressed with greater or

The general lines of this new
approach were first announced by
Secretary of State Dulles on April
8th

*An

11th

address

by Mr. Dillon before the
International

American Assembly on

Stability

and

Progress,

Arden

House,

Special

his

testimony before the
Senate Committee.
The

President will send the

completed

At The

Greenbrier, Chesapeake and

Ohio's magnificent

In the Cleveland

the

resort

hotel in

see

West Virginia, Mrs. Price

(center)

which,

joins her husband and Airs. Loutseh.

out

new

among

thefts

headquarters they

electronic

computer

other things, makes

and 90,000 other quar¬

terly dividend checksJn half

day..

At the end of their trip
vations with

Cyrus Eaton
Walter

they talk

over

(second from left)

Tuohy.

obsej
Chairm.j
Preside}

their

Chesapeake & Ohio Board

and

Volume

185

Number 5640

The Commercial and Financial Chronicle

(2413)
ing of the defense support funds
required to maintain these allied

troops.

Although their purpose is
purely military, these funds are a
form of economic assistance.
assistance

can

best

This

forms

economic

presently

end

abroad.
*

administers

Program

which

•/

All of the

studies which

been made during

them

one

since

in an effort to achieve
the goals of the State. This is the
solution
offered throughout the

underdeveloped
regions
by the
Communists. They say that their
system, and only their system, can
bring about the rapid economic
improvement
so
much
desired.

the

And

from

and

they

are

accompanying this
propaganda attack by an active
campaign of economic penetra¬
tion

and

subversion

which

poses

continuing threat to the stability
and peace of these vast and
highly
populated regions of the world.

backward

conditions, but modern
haye

forcibly deprived of goods and

freedom

considers

brought

thev

seems

clear that the national

knowledge that other
their planet live in far
greater comfort and happiness. So
these peoples are pressing their

interest
of
the
United
States
would be best protected in a world
in which. free institutions
pre¬
dominate, and in which popular

governments to- bring them eco¬
nomic improvement, and to do it

people

have

the past year

toward

the

fulfillment

free

opment of these countries^ wheth.-

there

all, including the United States.

believe

velopment

that

best

de¬

-Therefore, it. is, in
to

what

can

our

interest

help the
underdeveloped peoples along,
and

to make it easier for them

time

private capital

increasing

people

One

of a series telling what Chesapeake and Ohio
doing to make this a bigger, better railroad.

and

resources

the

take over. This, how¬
only be a long haul
proposition. Good ibusiness de¬
ever,

can

mands that

adopt the methods

long-term

ment

the

within

nomic

opera¬

the

the establish¬

ICA

Eco¬

Fund

which

agency of the United
similar to the Export-Im¬

the

present

dollar

figures

setting
to

ing

the

over

as¬

world,

foreign

govern¬

sound

projects

ments

themselves, and to apply for loans

for themselves

the costs of these projects.
We would have the time
carefully

■M

cover

to consider and examine the

plans

for each project because we would

to C&O

management

through letters expressing interest in "their" railroad's, affairs, recently
,

owners.

all

would expect
to develop

for

each

construction

Two Chessie shareowners

method

country every
in advance, instead of creat¬
projects in Washington for

year

invited to tour the 5,100 mile
system and make
Here

few

are a

longer be operating on only a
year-to-year basis. After thorough

ex¬

were

study,

report to Chessie's 90,000 share-

where

there

was

assurance

that the project would be carried
out

competently and where there
reasonable promise
that it

was

would contribute directly or in¬
directly toward the growth of the
productive capacity of the recip¬
ient country.
The

Economic

Development

Fund would not compete with the
World Bank, the Export-Import

Bank, or with private sources of
capital. Indeed, we contemplate
that it would make

had

assurance

loans until

been

received

that

the

projects
could
not ; obtain
financing either from other pub¬
lic

institutions

sources.

The

from

private

Economic Development
in

Bank

that

projects would not
necessarily have to develop the
foreign
exchange
required
for
prompt repayment in dollars. It
is probable that many of the loans
and

owner

Loutsch,

Chicago office

manager

of 50 shares, hears about electronic

railroading from John Charters, Trainmaster
Grand

Rapids. She

says:

"As

shareowner, I

confident my investment is secure in the hands
of these forward-looking specialists who

manage

the

Chesapeake and Ohio Railway".

C. Grattan Price, Jr.

agent and

owner

of Harrisonburg, Va., an insurance
of 100 shares, rides in locomotive cab

of fast merchandise

freight train with Engineer Ott
Foster. Shareowner Price writes: "My
trip has been an
eye-opener. I have seen a magnificent property, superb¬

ly maintained, and efficiently operated. I
convinced that 'Chessie's'

brightest

years

absolutely

lie ahead".

from

the

Development

Fund

would be repayable

largely in the
of the borrowing coun¬
try. For example, a loan to India
might be repaid in rupees.
currency

But this repayment in local cur¬

would not rule out possible
repayment
in
dollars.

rency

eventual

For

instance,

makes

loan

the

suppose
to

Fund

underdevel¬

oped
A 24 page
went

and

holders

pictorial report of where these
what

along

they

saw

has been mailed

with the annual

Chessie's Best Year. If

you

two shareholders

report

would like

for

a copy

all share¬

1956 — again

of both, write

to:

country repayable in local
currency over a period of,
say,
15 or 20 years. After the loan has
been
repaid this money might

well

have
be
to

Rai I way

lars.
of

1, OHIO

loaned again

to the

Fund

new

would

World

that

country
improved that it

such

this

would
would

way

foreign

eventually

the

The

vital

and

would

the

em¬

maker subordinated

support projects favored
institutions.

Secretary Dulles has said, it
view that loans by the nevy

our

Fund

may eventually amount to
$750 million a year. During

some

the

fiscal year, however, as
the Fund gets into operation
they
next

could be expected to be consider¬
ably smaller.

itary purposes and for economic
development, there remains some¬
thing less than $500 million out of
the $4
billion Mutual Security
Program total. These funds would
be

used

administrative

cover

expenses, the costs of the Tech-i
nical Assistance Program, and our

contributions to international
tivities

such

the

Children's

ac¬

International

Fund

and

Aid

Refugees. They would also

cover

such

emergency grants as might
be found necessary and a
strictly

limited

amount

for

ance

those

capital assist-*

countries

needing
help and unable to contract fur¬
ther loans of any sort. *
The important point in all this
is that the American
people

should

know

that

proposing to

what

nical

assistance
where

are

both for tech¬

use,

and

all

will

grants

other

still

necessary, comes te> something less
than $500 million a year, a small

percentage

the

amounts involved in

over-all

By this
outlines

national

our

budget.

'V.'

the basic
just
hope to accomplish

new program,

which

described, we
things.

have

three

First,

centering budgetary'
responsibility
for
the
military
portion of the program in the Dei
fense Department where it
be^i
longs, we will ensure that our
military programs are as economi
ical

possible consistent with the
security.

national

Second, by putting our eco¬
development largely on a
loan basis, administered in a busi¬
ness-like

term,

currency

feature

Development
ferentiating it from

manner

tive and
funds

economical

longi
effec¬

use

of these

that the American people

be satisfied that

can

the

over

will provide

they

are not

being wasted.

•*

Third, and most important, we
will clearly show to all our people
just what their money is being
spent for and why.

By such methods
in my

these—and

belief only by such meth¬

ods—can

hope to continue, at
usefulness, a reasonable
of Mutual Security. In

maximum
program

closing I would like to leave
final reminder:

one

this program is

vital
of

ingredient of the platform
security from which true peace

will

some

day come.

Grimm Opens Branch
CLEARWATER, Fla.—Grimm &
Co.

has

opened

branch

office

at 533 Cleveland Street under the

direction of Ferris W. Schnedler.

great bulk

loans

repaid

dollars.

nomic

Bank.

same

possible for this second loan
be repaid at least partly in dol¬

could

3809 TERMINAL TOWER, CLEVELAND

The

Export-Import Bank,

government, but we could rea¬
sonably hope that the economic
situation

and Ohio!

dollars.

nomic

Fund would differ from the World

Mrs. Genevieve

can

complement the operations of the

cases

case

Loans would be granted only in
-cases

highlights of their trips:

would decide each

its merits.

Bank

Aside from these funds for mil¬

Administration

Development

would be

sistance

cept

•

intends to propose

Chesapeake and Ohio shareowners, unknown

Export-Import

the

Two typical

The

such

Instead

;

efficient

of United States

use

only make loans for the specific
purpose of promoting U. S. ex¬
ports. Its loans must be repayable

means.

port Bank.

■

and effective

by these two

States

over

funds.

ments without recourse to forceful

'X~*

way
now

can

loans to

but we can help to
stimulate the growth process until

Therefore,

have

university president,
plan ahead. This

farmer

themselves,

tions.

see

all

same

Bank

not

should result in far

through private
capital, domestic and foreign. But
within the regions we are
talking
about there is simply not
enough
private capital available to do the
basic things that must be done.
Tephnical skills are also lacking. >

most suitable for

would

compared to those of the countries

aspirations under
and democratic
conditions,
is real danger of their fall¬

A IL R O A D

banker,

a
or

flourish.

the

Export-Import

again each
year. Thus, it could plan ahead in
the same way that a
businessman,

free and dem¬

comes

world-wide basis in the

authorized

lightened self-interest by helping
maintain a peacefully advanc¬
can

operation, is that it
continuing and flexi¬
authority to operate on a

ble

does.

ocratic institutions

would have

the

However, our main motive in ex¬
tending this sort of assistance is,
I think, to further our own
en¬

ing world in which

method

powered

their economic

.and assist in. the economic deveL

help them to participate increas¬
ingly in world trade to the benefit

Our part is to supplement this
dearth of capital and know-how.
Our effort is bound to be small

these underdeveloped coun¬
find themselves unable to

move

to resist the Communist
drive. At
same time their advance
will

the

aspirations for material improve¬
ment and social
change can be met
by free and democratic govern¬

rapidly.

for; the United States to cooperate

•

why this

interest of the

being

primitive

economic

that it is Vitally importarit tries

•agree

War II,

communications

United States,/ bexopcerned. with
.their economic progress. ;

World

under

marily to help the iinderdeveloped countries of the world. One
may
ask why. should
we,
the
.

•

Most of these people, and millions
older countries, exist

pri¬

goes

see

ing into some form of totalitarian¬
ism under which the
people would

of others in

■

Now

curity

to
;

ranging in
India, with
nearly 400 million, to Libya with
slightly more than one million.

let us\turn to the purely
economic side of the Mutual Se¬

into

come

population

all
United States economic assistance

hard

the national

have

defense

support funds be carried out in
the field by the ICA, the Interna¬
tional Cooperation Administration,
which

today. There are 700 million peo¬
ple in the 19 new nations which

assistance.

these

not

allied

are

lt.

revolutionary changes that are
taking place in Asia and Africa

Therefore, it is proposed that the
of

the

by the same or¬
which
handles
other

administration

they

United States when

adminis¬

tered in the field

ganization

not

militarily.

the

Eco¬

Fund,
dif¬
the present

New Baird Branch
SHEBOYGAN, Wis.—Robert W.
Baird & Co. has opened a branch
office
in
the
Security National
Bank Building under the manage¬
ment nf

William R.

Sachse.

The Commercial and Financial Chronicle
30

will they say that
failed to do, in the
middle years of the 20th century
that would affect the future for
importantly

Range
Need for Incentives
By CRAWFORD

better

& Company

blithe

With

disregard of
the rules of

one

ness.

guishes
C.

to talk

Greenewalt

eras.

have

busi¬
Mr.
Eisenhower, for

form of society from
and other
is. as wrong for us to

to have

ex-

government, as
labor government, or a

best

effort,

worthy objectives could be
Within the four walls of conif government expend— stitutional principle there is ample
ituies
were
examined
with a room for experiment, and for the
somewhat mortf-Jaundiced eye.
development
of
a
government
As a demonstration of my own
which
fits
the
times ? and
the
cached

lhcy
-^be

Teen
uiite

feeling

security, and

so,

in the acceptance of its thesis,
in the attitude that somehow we
cari attain progress by making

now proposed is one more step—
perhaps a decisive step—toward
that philosophical ob 1 ivion in
which the burdens of accomplishment begin to outweigh the rewaivjc

warmth

and

lems+u m afraid
i3!}011!
Pharma-

™°rrA0m.e

•

enough for

Ar/f-?

to recommend Mil-

tdown as a substitute loiMnctm^
f
as an
na^e *°
vement.
+

masse;

group

against

the

penalty

and

that,

less

personal
the

same

successful

income.
kind

same

ity-to-pay"

than

and

ness

all

live

other's

each

pocket.

The financial

stability of governclearly depends on the sue-

ment

cessful

operation of our industrial
and on the other hand

economy,

can

doubt that the climate

established

by government has a
effect
on
the

one

may

increase

boundaries

these

whether

make,

mands

electorate

decrease

fear

the

that we, too,

seem

de¬

the

ple which brought us to greatness:
The
principle which
in other
lands at other periods brought a

influence,

Federal

forsaking

simple

the

princi¬

the size of the Federal budget
This after all is the essence of people to great achievement, then

democracy—a willingness to sub¬

cast them to ruin when it was

particular desire in the
common
interest, a recognition
that there are many aspirations
besides our own,, each pf which
must be sustained by the hope of

—the

merge

lost

simple principle of encour¬

aging

men

give of their best

with

gue,

based

reasoning

"abil-

which

equal

logic,

might'
that

you

out

ing

form, under oath, while doOr that parking meters

so.

should be fitted with slots of dilferent

denominations

make of

coun¬

expectations.

beyond

in-

moroVus^Lvl

LTfssUy;

+s?mewhat more personal objectlves- ^^qua
+L?
course, differ with different peo?or?e 4?re attr?cted most

for

J1?6*
arc;
interested in
leisur?A time' to *ollow .sch°larIy
commune

with

their

™?Jy
souls.

people, public notice or out¬
ward signs of rank and impor-

some

ar¬

should pay a dollar to ride
in the subway, presumably filling

this

While many people are moved
Profoundly by the good of mank*nd and all people are motivated

the

even

premise to

tortured

through

little

,.r,

immoral

application of the

things

lamiliar mold.

the surface,
this can be made to appear quite
a reasonable approach.
Certainlv
suppose

critical

most

centive is lacking is to cast hurnan nature into a new and un-

handicap invoked

large

the

expect that extra effort when

of the corporate

have

opinion, diminishing

try have always been the result
of an extra effort, of something

beCaUS£ " " Ial'ge a"d

successful
I

size

worthwhile

ruma

Problem

Chronic

serious when I say

long-range problem of • business
today, and by corollary, of the
nation itself. The big things, the

MmfnrLfi proposed that this
?
ciplc of taxation be applied to corporations calibrating
Here

very

that; in

unit.

incentive

}ye.have come to a point

the rate to the

Critical

Most

to have become well estab¬

informed

that we can

progress unprofitable,

forget all ol these

lished

The

danger and the fallacy alike lie

achievement unattractive. What is

seems

demands

endless

The dangerous fallacy inherent

Perhaps we should all take to
the new tranquilizing drugs, re-

complete impartiality, let me say changing needs of our people. So
jn our 0Vvn case, we are confionce
that
both
suggestions long as constitutional limits, nre dent that we have done better—
to have considerable merit.
observed, in spirit as welk«s
too, are young.
And if
Perhaps all of this is merely an fact, I am quite willing to see there is anything on the national
government respond to whatever scene today which disturbs me, it
indication of the close relation¬
exist between busi¬
government. We do after

even

cends Its immediate effects.

1S tf1

now

perhaps

and

further achievement by rendering

seem

ships that

slowing down
and a

progress

ture.

the

technological

jn this legislation, however, trans-

ihn

swept away.

were

obviously

will

trip to those bright horizons that
technology has to offer.

thev mav

aneUtefew

group,

{•j?
iaxe? kas,
iiifirnaS'v^^v!
1 endured and
7i^e-T^ra
regardless of
thl!l it poses regardless
ot the threat ""ai30563' to the fu-

to give of
unhampered by

limited

un-

♦

have come to a ciose when
it
opportunities
for personal

achievement

the

°,£.America rep-

good

status

given

/ r+nr0up

safeguarding the rights and priv- ^"^0"8 ot clasb' status' or
ileges of each element of our so- 1 M ,
hri?hf nprjod<, of
spiral, in which we are now re- ciety regardless of its numerical ,. .
.
,
short-lived selvolving, could easily be cured, weight in the balance, that our ^^^eeding a hundred years,
Businessmen respond by suggest- democracy acquires
and mam- and many of them have ended jn
mg to Mr. Eisenhower that the tams its st e gt .
turmoil and retrogression.
And
same

been

ciir.riComi
rPCAnf 1

numbers of

It is only by d!!tinctions'"'of' class*''

farm government.

ample, suggests that if business
people and their employees did
what they should, the price-wage

has

v? am, afraid that the
S/nSufr W00 °ftei;
finil {SSn^lf31! *poraJ

had the encouragement
his

safely be abroafraid that too little

ing the opportunities for each of
us
to
achieve,
and
we
have
achieved because each man has

business

could

seem

age—whether Golden, or Silver,
or merely Tarnished—in
provid¬

our

the

man.s earnin&s so that

artificial and unnatural restraints,
We haye cQme far beyond any

that of other countries

so,

onc/a\'TPiica^0»nS °f *axing away

imaginations of men are freed of

be
be

rationalized

bracket,

have to turn our backs on much
we
are
now
doing. This is
not a gap that can be filled by
smaller enterprises, and the result

longer

lax

to the greatest

years

somehow

tax

will inevitably be

before

the greatest

that

world

people when the energies and

everybody's government. Indeed
it is this concept which distin¬

peo¬

ple—present
company al¬
ways excepted
—seem

democracy
of national

necessarily
necessaniy

be profitable in spite of the high

successful

much to so many

demonstrated

have

the

comes

suppose

direct our research into channels
where the commercial results can

Consideration

ral

dozen

mercial ventures, whether they be
large of small. If we and our industrial associates are forced to

strange thesis that minority rights
applicable to the talented and the

own.

our

if it i«? to fulfill that

must
must

it
it

brought

ever

for

mirror

anH

Son'
-function,

ment, and gov¬

about

For

have

highly born or otherwise blessed,
but tne fact is that no society has

pro¬

Government
should

'thinldm*

satisfactory case could be made
for each of these provided we
were
fortunate
enough
to
be

self-appraisal.

talk

lifetimes of Did¬

Rousseau.

and

erot

whether
that

the

honest

about govern¬
ernment

Paris during the

framework

best

vides

way

another,

of course

well intentioned or not,

oratory, busi¬
nessmen,

ing to have lived.
They usually cite the Greece of
Pericles, Rome under
the socalled Good Emperors, Florence
at the time of the Renaissance, or

people

criticism,

for

ess,

taught to

students

speculate upon those intervals and
those occasions of history when it
would have been most
reward¬

healthy and, in fact, an indispen¬
sable facet of the democratic proc¬

qualification
■once

issues

in which historians

proper

national

fascinating exercises
indulge is to

One of the

but

of the gated. I
fulfilled thought

potentialities.

our

tween

standards

day, as on how well we

relationship be¬
government and each of the
economic groups represented in
the country is a delicate and an
important question. Public debate
The

are

the

appear

problem of business today and, by corollary
of the nation itself." Mr. Greenewalt refers to the high standards
of achievement we set and observes that when the rewards
of achievement are won, we tax most of them away; thus, we
admire success but penalize the successful, and so forth.
Advises we not apply progressive taxes to corporations and
that we create an environment which will encourage people to
give their best effort, even though successful, talented
are a minority group with few champions.

sets

perspective

the

successful; we admire talent,
.penalize the talented; we admire initiative, yet penalize the
initiator; we admire philanthropy,
yet penalize the philanthropist;
we
admire
leadership, yet we
penalize and harass our leaders,

ing fundamentals. History is less
likely to appraise us on our ac¬
complishments, great as they may

critical long-range

public speeches made in
recent years by businessmen and
by people in government appear
to be following a curious pattern.

for worse?

pretty difficult
to meet.
For one thing, the de¬
ciduous values which change with
the times must be carefully win¬
nowed out from the more endur¬

The

criteria which

existing dichotomy resulting from government's
relationship to business which discourages men from giving
their best efforts, and to the moral implications involved, E. 1.
du Pont head declares that "diminishing incentive is the most
Pointing to

—

Historical

II. GREENE WALT*

President, E. I. du Pont de Nemours

did,

The Long

Thursday, May 23, 1957

...

(2414)

each

car.

But, putting the moral issue
aside, a discriminatory tax on industry and business must, in the
end, penalize the country's devel-

tance are alJuri"g &als- F(* m<^;
however, the strongest and most
^esirable incentive is financial
rewara*
It is not my purpose to debate
the relative nobility of these inducements, although I see no rea-

to believe that financial gain
is any less desirable than prestige

son
or

recognition, and it is certainly

less stultifying than the lust for
opment far more drastically than power or of mere social distinchealth
and
tranquility of our
it would the corporations'.
*V. Removing Incentives
Vmsiness system.
tion. The question of worthiness
ultimate realization.
is not germane to the discussion.
j
take no occasion to quarrel
However true this may be, there
Burden of Taxes and Research
The important thing is that peoI suppose that if we were to atwith government in performing
is no excuse for each side blaming
Whatever the rate of progres- pie be encouraged to give that
its appointed tasks.
But I do
the other for its own difficulties. tempt to state in a short sentence
sion of the tax levied on corpora- extra effort, for routine and perIt may
be an easy, but it is the principle to which our society take issue, not for the present but
scarcely a responsible pastime for has been dedicated, we would say for the future, with those pat- tions, no one is going to give up functory performance brings routhose products which,
by their tine and perfunctory results,
anyone
to assume the role of that here we have encouraged the terns of thought which seem deAnd let no one think himself
master-minding the other fellow's maximum in personal achieve- termined to abandon the very very nature, can be produced only
game.
1
ment by every citizen, regardless drive which has placed us on the by a large enterprise. Progressive immune. As rewards in the mamost

important

of
master-minding,
sympathies are all with Mr.
Benson, for I suspect strongly that
lie has had enough outside masterminding of his
three

game to last

own

accomplishment,

Men are turned aside from
v individual Effort Encouraged,
their resolve to achieve in various
It was this concept which ways. Sometimes it has been the
brought our form of government dungeon and the guillotine; some;

into being and which has enabled

four lifetimes.

race or creed or national origin, road to great

Speaking

effort.

function

well.

The

175-

times it has been the suffocation
of the spirit as applied by a Stalin
or
a
Hitler.
Sometimes, as with
us, it can be the simple matter of

tax

or no, we will have automobiles, and the tax that comes with

them
the

will

consumer

tion.

penalty paid

for

put in

his

transporta-

commercial,
we will certainly continue to have
cellophane, whatever the tax cona

terial

sense

become subject to at-

it is my guess that, in
time, those non-monetary incentives which now compensate in
some fields will be subject to the
same
kind of attack, for this is
not an economic question but a
trition,

and the added cost will
paid, not by Du Pont, but by

philosophical question, a state of
mind.
Who can say that a nathe housewife as she buys her tional attitude which will couneminent and business is of course productive period in history.
Un- removing the incentives toward
achievement.
cellophane-wrapped loaf of bread, tenance the confiscation of reward
nothing new, either in our coun- der principles which have encourTo the extent that small enter- in one area will not, in time, be
try or elsewhere. When visiting aged human effort and achieveSo, I often wonder how that fu¬
prises elect to stay small in order reflected in others, to the end
Argentina some months ago
I ment,
we
have observed
a ture historian, looking back at
to
avoid the next tax
bracket, that the prize will lack its former
found businessmen
complaining fantastic succession of technical this age of ours with the erudition
here also the penalty will be paid
luster, the rank and the titles lose
bitterly about the new govern- developments, a prodigious 0f hindsight, will see us. And I
ment, a rather surprising devel- growth and expansion, a vast en- must conclude that no people ever by the consumer, in foregoing the their prestige, the acclaim ring
benefits of a more economically hollow?
opment in view of the Peron largement of our horizons for the presented their biographer with
regime which it replaced. Yet I future. I cannot believe that any so much confusion or complexity. sized unit.
Ag j noted earlier, I make no
historian appraising the first cen¬
was prompted to comment that I
There is, moreover, a far more claims to wizardry in statecraft
What
an
astonishing paradox
beard nothing said that has not tury and
three-quarters of the we
consequence
in
the and would not dream of lecturing
present: We set high standards important
been said with equal vehemence American experiment could do so
of
achievement, yet, when the realm of industrial research. Re- government as to what it should
about our own government, the with anything but admiration.
..
t,, ®
rewards of achievement are won, search, and here I can speak with or should not do. But, in a broad
nrnODnf orlminicfroflr\r-i
ttmll
Ti
1 l
'
1
~*
i? >
present administration as well as
:
It remains to be seen how the. we reclaim most of them in the some authority, is at its very best and very general way, it seems to
Mutual Finger Pointing

Mutual

its

finger-pointing by

predecessors.

*An address

the

York

Economic

gov-

„

been beyond question the

most

its

•

by Mr. Greenewalt before
Club of New York, New
r

•

that, aqhieve-

aPPeaJ Jo a Gibbon, ov a ment becomes not only financially

Macaulay of the future. What Willi' unattractive but
they

say

then?

sequences,
be

second century and three-quarters guise of taxation

have

years

r»£i

City.

existence

odd

What—most

admire

actual burden.

success,

but penalize

of government,

chancy business. We in Du Pont
justify our large research
ex-

penditures

analogous to that of management

the expectation that

will profit through new com-

that

the role

the economic

area

at least, is

large and diversified opera-

Volume 185

Number 5640

The Commercial and Financial
Chronicle

(2415)
tion.
of

And in this
here

ognize

are

that,

home,

most

our

The Investor's Role in

rec¬

compelling

duty is to create that kind of en¬
vironment in which people can
and will give their best
effort.

Preserving

So, if I have any word of ad¬
vice to offer in the national
arena,
it is that the maintenance
of such

sand

Vice-President
Edison

offering publicly
000.000

nine-month

group

security

dealers.

fered

debentures

are

at par and bear

41,8% per
able

being

of¬

interest at

Interest is pay¬

annum.

with the

principal at matur¬

and

educate

themselves

c o n

used

to redeem the

debentures
for

will

$38,000,000 of

the

Central

Cooperatives due June

1, to repay short-term, borrowings,
and

for

our

the

are

loss

operate under the supervision of
the Farm Credit
Administration.
The banks make and service loans
to

these

leads to

na¬

pany

Vennard

major

civilization

the
Egyptian,
Greek, the Roman—without
supremacy for

then

internal

Bowery Savings Bank
Elects Gierke, Strung
The

Board

Trustees

Bowery Savings Bank has
Paul

B.'Clerke

Strung

Clerke joined The Bowery
in 1914 and has been Assistant
Vice-President since 1939. In 1950,
Fifth

Manager of the bank's

Avenge office and since that

time that office has shown
of

crease

14,000

deposit growth of

accounts
more

in¬

and

than $100

million.

the
in

Strung began his career at
Bowery in 1928. He joined

bank's

mortgage department
1940, was appointed a deputy

mortgage officer in 1951 and
in

1954.

Graduate

School

ting

the

declared

America

has

civilization the
known because

than

budget
one-half

son,

bers

lion

the
next

years the

Exchanges.

Car¬

public
that

knowledge

those

about

our

who

and
opinion
knew the least

economic system were,

public
desire
security threatens his

with

for
com¬

new

Why has the
a

government shown

strong tendency to expand?

other

about
the

expansion.

hand, the
the

free

the

people knew
enterprise system

they

tended

since the root of

our

problems

lies in the public's lack of knowledge of basic economic facts, there
is

obvious

communicate

mation

need

this

for

ways

needed

infor¬

kind

MILWAUKEE, Wis. —James F.

Investor

history

discovered

that he

plish

work with

could

them.

know

aid of

tools.
of

We began with tools made
wood, stone and animal sinew.

Later
of

progressed

the

that

and

make
were

the

made

less

was

these

copper and other
Since the manufacture of
tools
took
time, he was

forced to refrain from doing other
things which he made then, or
to bartering

something

for

tool

than

three

About the

same

situation exists

today, people build up savings by
foregoing pleasure or consumption
of some sort.
Having amassed sav¬
ings, they can put them to work
our

economy as tools.

Very simply stated, an!investor
the person who supplies the
tools, or the money used to pur¬
is

chase
to

tool.

receive

The investor expects

reasonable

Continued

that

compensa-

page

THE

lVNunor isms imvs
X

ijs,

C0MIN6

WATCH
FOR

than $70 bil¬
the past 30

Federal Government has
its responsibilities and

has

and

Milwaukee

and

power

been

again,
of

man¬

demonstrated,

that

the

size

government

in¬

Company, 207
East
Michigan Street, members of the
Midwest Stock Exchange. In the

creased, the freedom of the indi¬

past he

of other

vidual citizen

haps

with Robert W. Baird

& Co.

the

was

curtailed.

Per¬

we can learn from the
record

civilizations how to avoid

ultimate loss of

our

freedom.

It is

important to us now because
Americans are more dependent on
a
strong central government today

W. A. Faoro Opens
•'

(Special to The Financial
Chronicle)

than

LOS

they have ever been. When
become completely

dependent

*An

the

address

Mr.

Vennard

before

Philadelphia Invest-in-America-Week
Philadelphia.

Luncheon,

WORLD-WIDE

Government

year.

value

made by someone else.

us.

billion; in compari¬

use

iron, bronze,

metals.

lose this

can

man

accom¬

the

become

can

oppression

Federal

time

Eckrich is now affiliated with the

ANGELES, Calif. — Ward
A. Faoro has opened offices at
730
South Western Avenue to
engage
in a securities
business.'

econ¬

;•

tlie

Before the dawn of

favor of it.

free

investors.

people,

Throughout the history of

(Special to The Financial Chronicle)

knowledge of

/ ;yv;:

ever

powers enormously.

Milwaukee Co. Adds

story

•

our

its proper

the

plans to spend

Mid¬

increased

was

lack of

we had but had
failed to pass on to the public. We
found
in
our
measurements
of

"Time"

We need

omy.
,;r

increasing the

personal stake in

thus far

require one dollar
out of every three
spent in the
United States. In
1930, the Fed¬

Merrill, Turben & Co., Inc.,
Union Commerce Building, mem¬

•

a cover

We should look

citizens who have

our

Role

encouraged government expansion
into the power business could be
traced to

means

governments

with

;

But

mistakes

eral

west Stock

allow

from

and

issue

number of

We in the electric
power indus¬

been made easier.
for

system will be in danger;

try discovered some time ago that
virtually all the attitudes which

greatest

has

have

servant

connected

New York

Through
monthly invest¬
plans, stock ownership has

medium

Losing Freedom Gradually
Today local, state and Federal

(Special to The Financial Chronicle)!

the

world

by those who preceded

CLEVELAND, Ohio—Richard L.

built

our government in

same

Merrill, Turben
become

part in business
free enterprise

our

the

ment

decay which followed.

domination;

re¬

for

peared to be in its greatest
glory,
it the germ of the

freedom,

need

carried within

sponsible for many improvements
operations.

has

stronger central government. This
period, when Rome outwardly ap¬

Whitmer

meas¬

active

industry

investment will result in a
greater number of people with a
personal interest in preserving our
free enterprise system.

time,

complicated, oversized
corrupt.
The citizens, once
proud and free, had little by little
given up their liberty by submit¬

their master.

University,

Joins

eco¬

expanded government to

ownership

and

decay followed

and

rather

graduate of the

partment where he has been

short

same

offices necessary to govern it had
larger and more powerful
until the government became ex¬

role

was

Banking at
Mr. Strung
will continue in the
mortgage de¬

Rutgers

take

social security and other Federal
welfare programs."
such

the

grown

kept

promoted to Assistant Vice-Presi¬
dent

suffered

by
a
rapid
decline.
For
example,
about 2,000 years
ago the Roman
Empire had reached the height of

Mr.
The

plants.

great deal to promote inter¬
on the part of
the public. A
broader base of stock
a

est

cessively

Mr.

he became

has

Empire
had
expanded, the institutions and

The

August
Vice-Pr6sidents.' ***

ception,

the
ex¬

its power and controlled
most
the known world. As the

elected

and

the

—

Babylonian,

tives

to their needs.

want

competitor far
stronger than any within the industry; the U. S. Government itself, which is steadily expanding

that

were

large numbers of people

government

History has
shown

"Growing

down¬

every

the part of

An organization such as the "Invest-in-America" Committee can

that:

fate:

terms particularly suited

electricity

investor-owned

Shanks, President of Pru¬ in the
main, those who were in
dential
Insurance
Co., reported favor of
collectivist programs and

farmers'
marketing, purchas¬
ing, and business service coopera¬
on

long

roll M.

that
a

March

magazine, in

fall.

chartered under the provisions of
the Farm Credit Act of 1933.
They

The

liberties

tion's

banks

have lost

freedom left to
predecessors.

The Widening Role
Government

these
freedoms.
11

for

The

the

facts—facts that

gress, we must

obligations of
Cooperatives.

Banks

our

that

percent of ;the citizens
questioned didn't think it mattered one way or the other. As

now

are

keep

for

reported

survey

Sixteen

and

dependent,

t i nue to

These consolidated, secured de¬
bentures are the joint and several

the

favor

people to bring

government

the

terest in these facts
the public.

recent

duction

security and advancement,
will have lost all our freedom.
the extent that we are

ure

grow and pro¬

the

pondering

exactly the same number of peo¬
ple (36%) were in favor of gov¬
ernment
owned
and
operated
atomic energy plants for the
pro¬

wished.

such

lending operations.

nomic

without

from.

come

superiority. Inade¬
by Mr. Vennard as an invitation
adopt Russian methods of forced
open door to eventual nation-wide owner¬

industries, to question and inves¬
tigate, to train

Proceeds from the sale of these

debentures

must

seen

America has progressed because
its people have been free to work

merely making the facts available
is not enough.
This information
has been available for
years, but
it has not been
assimilated.
We
have failed to simulate much in¬

or-

question of where the money will

they

about socialism.

they

consolidated

that

savings;
savings would be used to buy more tools to
permit
production and jobs; and points out that
apathy about
the welfare-state trend
permits a handful of

ity^ They are dated June 3, 1957,
and will mature March
3, 1958.

Bank

Government

our

and save, to found businesses
and

nationwide
The

Americans

warns

benefits,

consoli¬

dated collateral trust debentures,
through John T. Knox, their fis¬
cal agent, with the assistance of
a

Managing Director, Edison Electric Institute

executive

is that
an

of the people have been
persuaded to vote for government
welfare programs and "free"

asserts tax

Cooperatives
May 21 $46,-

Electric

answer

essentially

portion

investment; i.e., an
ship under the pretext of maintaining economic
superiority.
Singles out present taxes as the principal deterrent to

Offer New Debentures
Banks for

and

quate private capital is
to

Cooperatives Banks
13

Freedom

ganization committed to carry out
the will of the
people, and a large

supply necessary capital to keep our nation
strong or suffer
the consequences of U. S. S.
R. economic

years hence, how well
or
carelessly it was discharged.

The

Perhaps part of the
government

By EDWIN VENNARD*

an
atmosphere for the country
generally represents a prime re¬
sponsibility. Only history will be
able to say, a hundred or a thou¬

how

where most

area

NEWS
BLITZ

Financial Chronicle

The Commercial and

Thursday, May 23, 1957

...

(2416)

for the

its use and

for

It is by this means

involved.

risk
that

supplying tools to
our
economy is placed on those
willing to assume it. The supply¬
ing of tools is a large burden and
burden of

important
one.
Every
society—Democratic, So¬
cialist or Communist—must have
a large investment in tools.
Throughout history, man's prog¬
ress
has depended on the effi¬
ciency, quality and number of his
tools. Our standard of living ehas
most

civilized

it has because we
consistently improved old
tools and developed new ones. Our
risen at the rate

Its job is

produce anything.

not

protect our liberty. Sometimes
our
people need to be reminded

capital—the money used to buy
tools. Russia also gets its capital
from investors. However, there is

for

significant difference, in the
Russia obtains the captal it
needs and the way we in America

way

example, it was estimated

Russia, people are forced

investment

importance,

free

choice

know it is im¬

government enterprises and the
way
the Soviet government, or
any
other
government,
raises

productive
United States.

the

surpass,

capacity

the

Should Russia

succeed in this at¬

tempt she will simultaneously ac¬
quire military as well as economic
superiority over us.
If American savers fail to sup¬
ply the capital necessary to pro¬
vide tools in the years to come,
our

government will be forced to

the same methods Russia
uses, in order to guarantee that
the Soviet Union does not achieve
adopt

should

ever

tually

find

necessary,

herself

vir¬

the gov¬
its way to¬

socialist state;

ernment would

ownership

wards

financing

become

would

America

There is

and

are

in¬
of them¬ people.

alert to every

ready to

are

every

take

question.

Congressmen

their

write

They
reli¬

They send letters to edi¬
talk to their friends.
They knock on doors and make
They

phone calls in support of certain
items of legislation. In short, they
constitute a highly vocal minority.
is

result, our legislative policy
than slightly influenced

by this group.

American indus¬
last generation.
and the way the
The reason they have been suc¬
Russians or any other Socialistic
cessful is that the rest of us have,
society get the capital for their
tools. The American way involves by and large, remained silent. Un¬
freedom of choice for the indivi¬ fortunately, we have no fear that
dual involved; people are free to our country will ultimately turn
Communist or Socialist; we have
invest or not to invest as they see
fit.
Once having invested, they confidence and an abiding faith in
are
free to sell their interest at the judgment of millions of fellow
any
time.
The Russian system Americans, each of whom is just
way

try is financed

permits

freedom

reached

the

choice

whatever.

have

point

where, as a nation, we must de¬
cide
which
of
these
economic
use to fi¬
America's future needs for

philosophies

will

silent

the subject as we are.

got the feeling
that we are holding the fort, and
that, like the ostrich with head in
Somehow we have

sand, we are secure

in our passive

faith in democracy.

We are com¬

tools, machines and factories. Con¬
tinued refusal of
the American

placent about freedom and the
rights of the individual. Nobody
has oppressed us. We are still free.

people to take a consistent stand
against "creeping socialism" will
result in the continued expansion

whether

industry and business. This
inevitably means control of more
and more of the wealth of our
control over more
jobs and occupational

and

The

reason

for this is that those

who

aim to socialize America are

not

likely

means

advertise
every
by which they intend to
to

not

become

few extra sacks

ment

ing

the

collectivize

country.

be tricked into

approving

so-

them

with

ple with savings to invest and an
economic situation in which a rea¬

piece

worthwhile

These

are

the

one

time, usually

fore

to come, America
will need large numbers of peo¬

held

Cleve¬

are

rules

things that can

many

before

ever

coating of some sort,
hidden in the fine print of a
sugar

means

legislation.

by which the

wheeling government

our

ment for financial

aid.

freedom

political football. This can oper¬
ate to cause apparent discredit to
our economic system.
By keeping
advised of these developments, the
investor can call them to the at¬
tention
of
lawmakers
and
the
public.

domination.

and

dis¬

Let

fence government

hold
misun¬
the part of his

investor

the

Third,

boundaries
which
in and prevent
it from encroaching on the rights
which
the
people reserved for
themselves. They believed that the
source of all power is the people,
and
they have tried to keep it

can

Do?

about America's busi¬

nature

free

know

from

people

the freedoms

less

determination
and

about

the

system

and

the

Make

any

present world

our

thing that the investor
a sharp eye on the
management of American indus¬
Another
do is

keep

Adoption of unwise corporate

practices

can

cripple

business

and render it less able to serve
customers

loss

well.

The

producing

result

its
a

which

power

deprives the customer of addi¬
tional products, and at the same

our

downfall

before

all

the

us.

Exchange

Offering"

The Bond Club Stock

which

free

dependency which

"Annual

;

grant us
duty, the

it out, and the
keep ourselves

Bond Club

not

leadership.

try.

the

civilizations

your

sure

acquaintances

contributions to

can

been

God

fellow-citizens

our

has

about it, the
inclined to favor

mistaken ideas about
American free market and its

harbor

see

domination and

which it is found¬

are

collectivism.
friends

carry

they know

they

the

that

ed, the more strongly they are in¬
clined to support our present sys¬
tem.
The converse is also true:,
the

wisdom

May

economy.

know
on

the

task.

courage

experience

economic

American

the

to take

Now it is our turn

there.

the

associates

and

friends

the

taining

himself ready to clear up

possible sources of danger to
freedom and individual rights.
I

learn

well

Harsh, discriminatory taxes, for
pray that he has the wisdom and
example, can penalize one com¬
the courage to do it well.
modity while the absence of such
Past generations of Americans
taxes encourages another.
Exces¬
sive
government supervision or have jealously guarded their free¬
control can make an industry a dom. They have insisted on main¬

policies and

What Can the Investor

passed

cannot

How

others.

practices that advertise benefits
and disguise detriments. With our
dulled senses we find it hard to
see

which

sibility

which

watchful for developments

As
the supplier
of the tools
return on investment is socialists gained control of Eng¬
to manufacture
land a few years ago. Americans which are used
possible.
commodity
and provide
The
present tax structure is must learn to recognize socialism, every
every service used by the Ameri¬
such that saving is becoming in¬ however it may be disguised.
can people, the investor is an es¬
creasingly difficult. Our present
sential part of America's economic
The Need for Speaking Up
high taxes are, of course, a direct
By definition, the term
result of a high level of govern¬
Those of us who are interested system.
"investor" does not apply only to
ment expenditure. If a portion of
in preserving American freedom
the large sums which the govern¬ as we know it now must speak up the professional coupon-clipper or
financial tycoon; every one of us
ment obtains by taxation could be
every
time we
spot a
leftist
saved and used to buy more tools, power-play. We must be quick to who has savings in anj/ form is an
we
would enjoy the benefits of refute the claims of the social investor. The average stockholder
increased production—more jobs, planners, the welfare-state people, is not a wealthy man; the bene¬
ficial owners of a large proportion
more and better products, a higher
the socialists, the collectivists, the
standard of living and so on— government-ownership advocates. of bonds are the policyholders of
insurance
companies, bank de¬
without forming a dangerous and
We must point out to the public
contributors
to
union
habit-forming dependence on a the steps that governments, here positors,
trust and welfare funds, those who
fickle government largesse.
and abroad, have taken in the past
are providing for their retirement
Senator Frank Lausche, former which have resulted in a loss of
through pension funds, and many
Ohio
We
governor,
has set an ex¬ liberty for the individual.
others.
These investors can do
ample in working for a lower must convince individual citizens,
many things to safeguard Ameri¬
budget. He recently opposed a $5- corporations, and local and state
can freedom.
million Federal appropriation to governments that they should stop
First of all, the investor can
help finance the 1959 Pan Ameri¬ looking to the Federal Govern¬

Games

the

impair the ability of oyr free en-,
charges this responsibility could
terprise system to continue to .
well mean the difference between
meet
the needs
of the people.

sonable

can

There

plenty of steel.

The

called "welfare" measures put be¬

years

lives within

set for the

has

exposing
situations
of possible
danger that we can hope to pre¬
serve a: free society.

and cloth¬
in short supply, but there is

why Russia finds shoes

from our pay
see it, so we are

can

Taxes and Capital

not produce
want. Its only

people

requirement is that it produce
the planners want. That is

deducted

They know, however, that people

the

people

the

people,' are not
inclined to oppose such plans vig¬
orously, if those plans are ade¬
quately camouflaged and
sugar
coated.
It is only by continually

what

Washington, but is soon forgotten.
Our share of the cost of govern¬

will have been lost.

that

seen

ment itself

may

the

what

of mail to

nity and freedom of the individual

pursuits. Whether or not a man
is permitted to hold a job might
then depend on how he voted. We
saw this happen in Germany un¬
der Hitler.
When this has hap¬

tal.

alarmed at derstandings

pened in America, the rights, dig¬

to^ it

stimuli of supply
and demand is purely coinciden¬

largely unaware of our tax bur¬
We
American public will not be given den; it is relatively painless.
the
opportunity to vote for or hardly realize that one dollar out
of every three we earn goes to
against socialism as such in one
We don't
election, because those who favor support government.
associate that with socialism. We
a
welfare state know that this
have been lulled to sleep by free¬
would result in their sure defeat.

and

responds

not

natural

those

new

sions

welfare government.

appropriations,

and

budgets

developments
in
a
new
world. A $72 billion budget occa¬

have

who favor government encroach¬
The flow of capital into ment in the -civilian economy are
natural stim¬ ready to speak out for their cause.
uli arising in the market place.
The great majority of the people
Where capital is allocated by any
who wish to continue to live in :a
other
system, including Federal! free
country, where the govern¬

giously.

"competition."
We

power

this cannot truly be called

Although they are
only be done by the investor. Only
only a minority, they swing the
he can do a competent job of the
Should Call Attention
the
same
purposes.
weight of a majority. They have
things mentioned. Since this work
taxes, the world over.
Secondly,
the
investor
can.
demonstrated their ability to do
is peculiarly his, he has a respon¬
a major difference be¬
so
time and time again over the guard his own interest by being

the

tween

country

for

funds

Taxes are

nance

this superiority.
If these methods

and
in

important differ¬

They

issue,

between

such

with

clothed

organization

desires of the

meet the needs and

the sparkplugs of so- -

are

stand

the way our Fed¬
eral Government raises money for

attempt to match, and ulti¬

There
ence

sia, since the end of World War II,
has invested billions in new tools
mately

These

Question of Free Choice

themselves

industry responds to

cialism.

tors.

they select
the market

which

benefits

those

for

selves.

grants.

possible;
but
the
government,
through taxation or confiscation,
still must turn to the individual
for the funds necessary to supply
the nation with tools. Soviet Rus¬

that

tide
dogood-

consider

capable of taking care

it costs the gov¬
ernment
about
39c
to
collect,
handle
and
distribute $1.00 in

Since the State
all business and industry of

invest in industry.

any

and

system,

our

selfish standpoint, it is to

have an obliga¬ place. In other words, it makes
the welfare of the free economy work well to

they

whom

those

in some instances

obtain ours.

owns

many

lot of well-meaning

ers, who feel they
tion to supervise

"Reader's Digest,"

article in

cent

is dependent

Federal

the

that

and better tools.

along with this red

Carried
are a

Government is
not a
Fairy Godmother with a
bottomless purse, but a piper who
future growth depends upon our
must be paid and whose prices
continued development of more
are usually quite high.
In a re¬
have

Soviet Russia, too,

ob¬
that the trend toward the
state
which has taken
feeling

the

America's Freedom

Preserving
the

heart

the

very

his ad¬ what makes the American econ¬
vantage to ; keep advised of the omy so responsive to the needs of
servers
the people;;vOur American -"effi¬
progress of various industries, the
welfare
demand for their products,
and ciency, famous all over the world,
place in our country in the last
their competitive position, just for is the product of competition.
generation has been sparked by the sake of
protecting his invest¬
When we talk of government
only a comparative handful of ment.
In
turn, this knowledge competition,
however,
we
are
people.
The principal protago¬
will lead him to invest his money
speaking of an entirely different
nists are, of course, the Commu¬
where it is needed most—which
concept, which is not really com¬
land.
In an explanatory letter to nists, who are guided from Mos¬
is where it is likely to produce
petition as we know it, in which
Cleveland's mayor he wrote: "The cow. They seek a peaceful purpose,
the greatest return commensurate
everyone follows the same rules.
Federal Budget must be cut. I to eliminate a clash of philoso¬
with the risk involved.
This
is
an
insidious
operation
cannot suport for Ohio something phies by eliminating one of the
This is a factor of great im¬ capable of giving itself the most
which I would oppose for another philosophies—ours.
Associated
state."
Since that time, the citi¬ with them in this effort are the portance to our economic system. outlandish of competitive advan¬
Through
taxation < and
zens
of Chicago have offered to Socialists, who want to establish It insures that, according to the tages.
a society
assume this expense, and the proj¬
in which a man's rank law of supply and demand, capital through the establishment of ar¬
will flow where it is needed. This
bitrary and one-sided rules and
ect is thus being financed with¬ is decreed by the state or a po¬
regulations, the government can
out calling on the U. S. taxpayer. litical machine rather than by his advances the building of a sound
economy based on producing what bring any industry to its knees, if
We must keep in mind that the
own initiative and willingness to
government does not and should work hard for what he wants. the people want, and gives! them the people allow it to. do so. An
It

The Investor's Role

tion

From

enterprises.

ness

Enemy

Apathy Our Greatest

Continued from page 31

Exchange,

trading once a
year at
the club's annual Field
Day, has announced its 1957 of¬
fering of 2,500 shares of capital
stock in a prospectus being dis¬
opens

for

tributed to members.
which

lucky

will

pay

traders,

The shares,

big dividends to

are

priced

at $10

each.
-

•

Trading in the shares will take

place in the Sleepy Hollow Stock
Exchange tent on the grounds of
Sleepy Hollow Country Club
11 a.m. to 5 p.m. on June 7.

the

from

Subscription books on the of¬
a waste of in¬
fering will open today and close
which might be at 4
p.m., May 28. more
productive in our economy
if invested elsewhere. The stock¬

time

operates

vested

capital,

holder,

through his

directors, has the

both

so,

to con¬
and he should

protect

his

interest and to protect the

own

nation's

board of

power

trail these practices,
do

and his

proxy

election of the corporate

Watkins Opens

(Special to The Financial Chronicle)

SANTA BARBARA, Calif.

—

conducting a securi¬
ties business from offices at 1018

J. Watkins is

State

Street.

interest.
Private Activities

Form Blue

Finally, the investor can keep a
the activities of gov¬

wary eye on

ernment
some

which
the

tend

duties

which

assume

should

private hands. The
American industry thrives on true

left

competition.

Competition

forms

Ridge Assoc.

been

Ridge Associates, Inc. has
formed with offices at 116

John

Street,

Blue

Milan
the

New

York

City, to

in - a securities business.
D. Popovic is a principal of

engage

firm.

Volume

185

Number

5640

The Commercial and Financial Chronicle

(2417)

Continued from page 11

that the Federal Government will
do no

Expected Capital Requirements
For the Business Expansion Ahead
-J

■

' 1

" ■'

ited. -j

Economic

Theiv geographic
been

•

Is it

ing months?.

Theory

■:

slowing down, and
widespread fear that

was

certificates.

There

also

;

order to make up

year

long-term

: was

some

three issues

are

bonds

which

conditions of the thirties.
? Since
then, population

and processes
boundless than at

appear

history.
^'.
\, ' * * *' t;
\ Capital
requirements are far
outstripping savings.
: "
;
.

remains
may
a

decade

constituted

has

return

ings-capital

again,

the

sav¬

our

the

history.

problem

corporations
low

ital

Nor

state

always

been

individual savings and investment.

the

total

cents

the

which

what

seriously
risk

tax,

individual
take

man

limited

in¬

have

earns,

this

source

you

may

be interested in

a study just
pub¬
lished May 13, by the Tax Foun¬

dation, entitled, "Are High Surtax
Rates

Worthwhile?"

The

Foundation's

emphatic "NO" and
sons

concerns

of its

ments..

rea¬

from the

profits of corporations
biggest source of funds for
plant and equipment.

great barrier.

tax,

accumulation

funds

has

been

paying
of

and

often made at the expense of divi¬
dend payments.

For

example, dividends were
only 26% of corporate profits be¬
fore tax in 1955, compared to 60%
in 1929.
;
.

The

problem

continued

aggravated

inflation

which

makes

replacement of obsolescent plants
and
equipment
financially im¬
possible for many companies un¬
der

present

depreciation

sider

therefore

must

the major

each

funds
the

allow¬

plant

and

the

basic

how to

problem
the

secure

financing for our rapid
growth, and although money to¬
day is still tight, there has been
increasing comment recently that
necessary

perhaps
of

end

have

the

now

tight

are

reached the

to the present.
'

the

question

point

out

funds

which

the

are redeemable ir\
whole or part at any time, at the

option of the

company, at $107.50
share through April 30, 1962 anc!

a
.

there.after at reduced prices, de-,
.pending upon the date of rectemp->
.

I see no
prospect of a lessening
Operating revenues of the coinin the need for capital.
,• urn...
...
PahY during the 12 months^ ended
Tfrnless there is a substantial increase
during the coming months
in the supply of capital, I would
..

conclude

that
is

the

the past,

tight

aPd..net income $27,630,000,
Mohawk rendersjelec-r

Niagara
Niagara

trie

—

means

thing

with First Cal¬
_

Coast Stock Exchange.;'

Co., 63 Wall Street,
City, members of the

York

June

Coffey

Stock

will

Exchange

admit

dustrial customers. Electric energy
is also sold to other utilities and

municipal distribution systems.

MINNEAPOLIS, Minn. — Lee
Higginson Corporation has opened
branch office in the Northwest¬

Bank

ern

rection of Frank A; Warner. .Mr.

Warner

Building under the di¬

was

formerly with White,
7

principal of the firm.

(Special to THe Financial Chronicle)

CORONADO,

Calif.—Louise P.
Conger and Sheltoq C. Zern have
become

associated

Overton & Co.,

with

cannot conveniently
deferred, and rising demands
the

state

and

local

1957 EDITION

But

over

and above these inter¬

corporations
steady borrowers both

created funds,

nally

governments

OVER-THE-COUNTER

been

State

from the commercial banks and in

long-term capital market.

1956, for example, net cor¬
porate borrowings through secu¬
rity issues (i.e., borrowings over
and above
repayments on out¬

will

term

funds

is the

cash

run

and

ap¬

govern¬

security holdings to

very

low

level, they will not be able to
rely on this source, as they did in
1956, to postpone long-term bor¬
rowing.
;
In fact, as I have already indi¬
cated, corporations are likely to
do some long-term borrowing to
restore a more liquid position.

Total

On Which

than

CONSECUTIVE

1956

than

new

residential

running quite a bit
1956, and with a

5 to 173 Years

decline

the

turnover

demand

by corporations
in the long-term capital market
in 1957 is, therefore, likely to be
higher than in 1956—perhaps as
much as a billion dollars higher.

likely

take

—

Even

here,

tial

easing in the supply of funds,
is no question that activity,

there

the

mortgage
rapidly.

rise

market

Hence, the lesser

it is

use

of funds

of securing the funds

15 cents each

orders

printed
Of"

above

100

the
it

front

more,

cover

without

further

than

Commercial
Wm.

Dana

25 Park

Financial

firm's

your

with

the

words

name

■}
will

"Compliments

charge.

Chronicle

Co., Publishers

Place, New York 7, N. Y.

lack of demands for funds.

Now,
have

20 cents each

200 UP

would

in the mortgage market this year
is more a function of the diffi¬

culty

—

is very strong.

to get any substan¬

were

BOOKLET

COST OF THESE BOOKLETS

portant to note that the potential
we

PAGE

1 to 199

however, it is im¬

in this market

half

billion dollars less than it did last

let

said

rowers

Government Position

year.

DIVIDENDS

mortgage market.

market

CASH

Have Been Paid From

equip¬ existing homes, the 1957 mortgage

plant and

preciably above the 1956 total.
Since corporations have already
their

1957

With the rate of

small

1957,

construction

billion.

expenditures' will

Common Stocks

borrowing

only major market which
probably absorb less long-

lower

During

net

The

standing issues) amounted to $6.5

ment

local

and

in 1957 is likely to be about half a
billion dollars higher than in 1956.

market in

sum

about
the

what

the

major bor¬
long-term capital

1957.

Please

enter

Counter
Business

our

Market

order

—

Growth"

for

booklets

"Over-the-

Indispensable to Investors and Nation's
and

some

one

rest

year.

this

accounted for as much
the total demand for

years

20%

funds

of
in

the

long-term

capital

market.
In

1.957,

however,

Government will be
rather

than

This

does

the

Federal

net supplier,

borrower.

not

mean,

of course,

Summing Up the Demands

accompanying

Corporations, with plant and
equipment expenditures appreci¬
ably
higher than in 1956 and

liquidity reduced to
are

likely to

term

market

dollars

come

dividend

tables.

—

minimum,

into the longfor a billion

1957

than in

Firm Name

Address

1956.

Date

J£34 Orange Ave.

however,: the

cases,

> t

Two With J. A. Overton

EVERYTHING COMPLETELY REVISED

most

Steiner

Syracuse,

dential, farm, commercial and in¬

Weld & Co.

Andrew

Utica, Schenectady,Ni¬
Falls and
Troy.
Electric

Andel Co. Formed

business.

JJew

Thomas

partnership.

—

Lee Higginson Branch

To Be Carreau Partner
Carreau

of7 Buffalo,

cities

agara

ifornia Company, 300 Montgomery
members of the Pacific

New

area

operations include service to resi¬

FRANCISCO, Calif.—Rob¬

Street,

New

Albany,

(Special to The Financial Chronicle)

now

York State having a total popula¬
tion of about 3,200,000, including
the

SAN

—5

—

Service

money

.With First California

beep satisfied during to provide schools, sewage sys¬
period through inter¬ tems,
municipal
buildings
and
generated funds — through roads are forcing these govern¬
depreciation and amortization and ments to come into the market
plowing back of earnings.
despite its current tightness.

least

facing us in the cap¬
by discussing the need

over

,p7.,.

The Federal Government has in

important determinants

ital market

nally

the

are

Program.

The shares

longthus like-

the postwar

have

the

than in

projects

corporate

and to finance in part its construc-

ition

have

period
period of sub¬

the situation

for

portion

good

needs

£4'

From the. standpoint
of.demand
for funds, the situation looks
very
tight to me.
5
^

future.

•

money

tackling currently.

Let
of

year.

projects such as toll roads have
been set aside for the foreseeable

less funds than has

case

Corporate Borrowing
A

and are entering a
stantially greater ease.
This

tighter

because these agencies have been

types of

Will Money Demand Drop Off?
been

last

the

NORTH MASSAPEQUA, N. Y.
—The Andel Company has been
;
formed with offices at 128 North
We have had many
postpone¬
Drive to engage in a securities
ments of state and
local issues

con¬

First, what about corporate bor¬

ment

Although

create

existed

estimate whether reluctant to accept rising interest
are
likely to need costs, and in some cases capital

types

been

A sharp reduction in both in¬
dividual and corporate income tax
rates would help solve the prob¬

has thus

than

borrowers, and

reduced

new

factor

the shares will be used by Niagara
Mohawk to reimburse its treasury

about

below

1956.

total

months

ances.

lem of financing
equipment.

1956,

other

deficiency the net

also be heavier this
year

the

estimate

capital during the coming

52%

necessary

difficult,

Municipal and State Borrowing

housing market.

order

-V.

With corporations

situation

did

some

this

by Harriman Ripley & Co., Inc. at
.r 7
Net proceeds from the sale of

ly to be at least $2 billion greater
than in 1956,..:, 77 7.-

ert R. Birr is

public debt.

than

effect will

the World

need for

are

But here again, taxes have been
a

Treasury paid off $4

unless

makes

are

■

retained
the

State'
and
local
semi-public institutions.
government
very important de¬ borrowing, and borrowing by va¬
mand for long-term capital cqmes rious
semi-public agencies, will

The high surtax rates on in¬
dividual income have helped make

new

much

unfortu¬
tighter capi¬
1956, because

further

discussing today—capital require- rowing?
i

that

and

the subject

indicate

market,

than

the

'> par ($100-a.share).V.v

market

year

dollars

level.:V

other

these

answer

one

are

market

1956

less funds

the Federal Land Banks,
various housing
authorities, and

In
many

also

billion

term capital market

the Treasury will
be a supplier of funds instead of
a borrower in
1957, it will supply

governments,

junds

Even though

Government,

local

and

billion of the

borrowers in the long-term capital

capital.

Incidentally,

Federal

The

capital

tal

corpora¬
.

free

Bank,

Unfortunately, the outrageously
rates

seem

for

confined

capital
borrowing

supplier

will

nately it indicates

cap¬

demand

term

business

market, and

Effect of High Taxes

come

that; it

easier

short-term liquid positions.

money

high

therefore

would

postwar

this year to shore

market

long

has

during

being a;'net" bor¬
1957, the Treasury

capital
this

j
Total net demands

borrowing in the long-term

for

tions.

plant

present

•'

the

reduced

previously used to hold its debt.
situation
Although at first glance, this

There is thus likely to be some

demand for plant and
equipment?"
The traditional source of

point for the

period.

"Where is the money
coming from
to finance
the almost insatiable

new

whole.

than

funda. in

govern¬
ments to current liabilities of all

therefore

characterized most of
Once

rower

will

Cash and

The ratio of

situation which has

Rather

moved
ahead year after year at the limit
of its productive
capacity.
past

tight, mortgage borrowing

half

1956

fact, the outstanding -public
debt is likely to be reduced
during
1957 by about $3 billion./V
•

the'"economy has

The

year

Public offering of 200,000 shares
Niagara Mohawk Power Corp.
.

the 1956

over

•

Finally,

time

any

the

-v;

security holdings to help finance
long term projects as well as tax
liabilities., ■
*
?
v1"

our

During 1956, many corporations
dipped into cash and government

siew^p

ucts

work¬

ing capital.

growth
has resumed its upward climb. '
\f74Thfe-^ possibilities

And

half billion dollars

figure..

could

The state and local
governments,

of the

we were

porations are very low

mar¬

did last year and will
thus have the effect of
tightening
the 1957 market
compared to the
1956 market."
'-Mv'-""v

Fihally, there

capital

Ripley Group

Offers Niagara Mohawk
Power 5.25% Pfd. Sfk,

5.25% preferred stock was made
despite some deferrals, will prob- yesterday (May 22) by a
of
Treasury
group of
ably increase their net borrowings investment banking-firms headed
7 J; v':yK

for

heavy
redemption
savings bonds;
of

Harriman

rather than a net
borrower,
will nevertheless
supply $1 billion
less to the long-term

be called by the
Treasury this
over-saving, and
Corporations
need
funds
for September.;:f r;l.'.y
All of these
this
tendency would
refundings neces¬
keep the other purposes, and even though
sitate new borrowings.
economy perpetually in a state of these needs
may be short term,
The
partial employment.
important 'point for the
^
4
they,
are
sometimes
satisfied
capital market is, however, that
i
Fortunately, the postwar period through the long term,, capital
although the Treasury will be
has shown us that the mature market.
*'.
borrowing for refunding purposes,
economy thesis was riot a valid £ At
present, for example, cor¬ it will
need no net new funds for
generalization; of the' particular

there

perhaps

Government, though
supplier1 on bal¬

net

ance

talk

some

long-term issue this

new

The total demand for long-term
capital is, of course, not confined
to
demands
arising from plant
and equipment; expenditures.

had

-population

The Federal
it will be

over

and

likely that the demand for
will drop off in the com¬

money

4 '

outstanding issues in the
bill
market, and it periodically
must also,refund
maturing notes ket than it

•

lim¬

frontier

exhausted,

growth

>i.

seemed

'7;7 VV7:V

Changed

ing

capital' installations

borrowing 'in 1957. "

The Treasury is
constantly roll¬

;—I

Financial Chronicle

The Commercial and

Thursday, May 23, 1957

...

(2418)

first page

lutely decline to be drawn into the expensive folderol
so
many of them have caught from New Deal',
reformers. The process would doubtless be painful to the

which

residents of areas surround¬

debt. Home ownership among

struction for

decade

or more

past has been

concentrated

dwellings.
More Durables

Demanded

Living in the suburbs has also greatly stimulated the
demand for a long list of durable goods. Automobiles

privately owned often become a family necessity. Resi¬
dents of these areas are much more likely to want and to
things as washing machines, lawn mowers,
small tractors, and other labor saving devices for use in
and around the house. All this has given rise to a sharp
rise in the demand for consumer credit without which
much of this type
occurred.

Thus

their

counterparts in negative changes elsewhere. People
have to have transportation, probably more of it

than
facilities
in a degree not known in previous decades. Street cars
have vanished from the scene for the most part. Employ¬
ment opportunities are in larger degree now found in out¬
lying regions, and as older housing deteriorates, blighted
areas
appear. Tax collections become more difficult in
before, but it is now supplied by owner-user

the cities where real estate values

decline

do not keep

with the times.
of change has become in many respects far
more
significant than changes in the ratio of rural to
urban population. We used to hear a great deal about
"treks" from the farm to the city — or vice versa; the

pace

This type

Where Are We Going?

III.

taken

have

around

looked

have

quick

where

stand,

briefly

look
and
our

over

shoulders at where we have been.
Now

must

to look

try

The debt

position of consumers
thing in a longcontext, and we shall look
at it a little later in that context.
In the short-run, though, at least
is

the minds of consumers them¬

stand

our

significant deterrent

ahead

income, as
The profits
squeeze on corporations might be
expected to work itself out in a
reduced level of

phenomenon will continue in the future. Accurate knowl¬
edge of future trends could and would mean millions,
even billions, to
many industries. It would provide valu¬
able clues to the future of demand for automobiles, wash¬
ing machines, and dozens of other litems, production of
which has now become big, big business. The volume of
sales financing either by companies organized for the
purpose or by commercial banks likely to be done in
future years turns in considerable part upon what takes
place in this matter of population migration.

the

current

situation,

have contributed to the

toward

less

view of the immediate
y

least

may

rapid shift

business fore¬
optimistic,

of sentiment among
casters

that

future/}^v

elements ~ of

' seven

weakness have been mentioned in
various

situation:

the

analyses,

■

•:

current -

g ^ -:>:p

■■

(1)

Recent stock-price declines.

(2)

Slackening of inventory
build-ups. -'A. '*
V

dex

the

Bureau

of Labor Sta¬

of business * and

move up .or

ment."

Decline in housing starts.

Changed

Fiscal Problems

funds is often

outlook

real

one.

"Central cities" have all too often

bureaucracies

fortably

which

are

permitted the rise
they can com¬

than

Of course, these costs have always been
greater than should have been tolerated, but it is one
thing to be tolerant of waste and extravagant when funds
are relatively
easy to obtain; it is quite another when
carry.

times are not so good and
give no great promise of be¬
coming what they used to be. We find something of this
sort in the New York
City situation now, and that ex¬
plains in part the consternation of the officials at the

poorer

prospects of getting

help from outside.

Situation Not Hopeless

There is, of course, no reason

why the financial plight
of either the central cities or the outlying areas should be
regarded as hopeless. The problems of both would be
manageable enough if approached as they should be. The
V

(5) "Watch and wait" monetary

policy.
;

;

(1) The spending plans of busi¬
ness, or new

plant and equipment,
change in busi¬

do not refit ct the

(4) The' "dacline
ne>v Jbdus^ ness expectations that has" been
ing starts is clearly related to the noticed.' These
spendingplans
effectiveness of "tight money." As
may, of course, be scaled cown,
credit
conditions * alternate- be¬ but as
yet there -is no evidence
tween extremes of restraint and that
they will be. If carried out at
ease, the mortgage market is the currently expected levels
(about
first place where credit tightens,
$39 billion, compared ** with $35
and the first, place it loosens up. billion in
1956), they would con¬
This, in turn, directly affects new stitute a substantial element of
housing starts. They were down strength to t.;C economy. L '
last year by about a sixth from
Similarly,
consumer
spending
their
near-record
peak in 1955.
plans, as indicated by preliminary
They'are
rate

far

19a7.

still lower" this

credit conditions do

that's

about

running

1956
may

the

results

of the 1957 survey

They

sumer

finances,

tinued

high

year,

not ease. But

level

cf con¬
a

con¬

for

outlays

goods L and
services. Consumers
seem not yet to have been affected

and anyway a
further reduction might or might
big

a.,

envision

"if,"

(4)

for

questionable

certain

indus¬

Heavy debt position of con¬

(6)

sumers.

Squeeze on business profits
and reduced corporate liq¬

(7)

uidity.
Now for

are,

stock-price de¬

I think, without much

significance. I have never viewed
stock market activity as any sort
of indicator of underlying business

conditions.

The stock market

panics easily, and enthuses easily,
in a manic-depressive sort of way,
and never seems to reflect much
more

industries,

(2)

at any time than

what some

other people are
the people
may
think differently tomorrow, more¬

people
think
thinking.
All
over.

(2) Evidence of slackening in¬
build-up is slight.
The
First
National
City
Bank's
ventory

Our governments—Federal,
local—have committed

and

themselves to tremendous outlays

either hold their
their position.

This

the

improve

essence

industrial

sectors

end

nesses

other

trial sectors

—

to ' see

extent

important indus¬
automobiles, steel,

textiles, and
for example.
and steel seem
most critical, from the standpoint
of the general business outlook.
Of-these,

metals,

autos

Auto Makers

Optimistic

In spite of the

prevailing gloom
in other quarters, automobile pro¬
ducers still seem optimistic about
meeting

exceeding last year's

output of almost six million cars.
And in terms of consumer spend¬

ing plans

optimism

that

(discussed below), this
seems
justified. Close
of the steel situation,

over

they

may

even

than now contemplated.
The principal Federal outlays will
be for defense purposes, of course,
and in the present, uncertain state
of the world, any decline in de¬
fense
spending seems most un¬
likely.
Declines in non-defeqse
spending are bound to be minor.
State and local spending, for such
larger

weak¬

household appliances,
non-ferrous

(totaling

by cancelling out. Some observers,

profess

1957

billion,

"rolling

for March, for observers
example, notes that purchasing moreover, appear to believe that,
agents are in some instances short¬ while some cutback in production
ening commitments. This may re¬ of lighter steels may occur (asso¬
flect inventory accumulation, but ciated in part with a lower level
it may also reflect simply shorter of household
appliance output),
"Monthly Letter"

State

estimated $85
$5 billion from
1956),
and these outlays seem
readjustment," where changes in
subject to revision only to the
own

however,
The recent

(1)

accordingly.

ing starts can be taken in stride,
example so long as other basic
industries, or significant groups
of

their spending plans

to be making

A further decline in hous¬

(5)

various

brief look at each of

these:

clines

economy.

for

tries.

These

:V\''

pect -for "rolling readjust•

wage

Possible over-emphasis, on
specific "weak spots"; pros¬

(4)

^meaning, not change at

wide"

all."

increases.

quaintly

put it,! prices, may also move "side-

spend-

V .ing commitments.
(3) Prospects of further

down. As

business analysts so

some

consumers.

government

(2) Heavy

plans

spendi.-g

Announced

(1)

tistics

by the (real or imagined) decline
not be very significant in the to¬ in
business
confidence.
Instead,
(3) Easing of basic commodity tal outcome, depending on what they seem to be looking forward
prices.
~ *'
: happens in other segments of the to another prosperous year, and

(5)

migrations of the past two or three decades
have brought difficult problems of public finance at the
local level. These have not been alleviated by the more
rapid increase in total population which has taken place
at the same time. Localities, suddenly grown to double
their former size need, indeed often must have,
sewage
systems, improved roads and streets, more school facilities
and much more. Many of them are too new to have established tested credit ratings. The problem of
finding needed

spending for n6w

plant and equipment.

strongly that the movement has not abated since the
last census taking occurred.
The real problem is whether and how long this

their

expectations

they still seem to be.

becoming more stable.

peak of prices must

significant "trek" for a decade or two now has been from; prosperity. And we "wooden 'Will
the* road immediately ahead re^ one sort of urban community to another—and. this is not
main straight arvd level? -; Willitfully revealed in the old distinction between rural and
climb
to
a
further inflationary
urban residence. Unfortunately, statistics by s means of
height? Or will iT suddenly drop,
which it would be possible to keep fully current track of
and carry us down into the valley
of recession?
what is going on in this area are not available. What is
V One way to seek answers to
now
being revealed in New York City,, as well as other
these questions is to try to iden¬
indications 'here and there, seems, however, to suggest
tify "elements of weakness" ; in
very

spending, so long as
are optimistic in their

consumers

(for 22 basic commodities)
year^-the * has .been declining, since late last
short run.
And after that, we'll year.; This ig not necessarily an
try to guess what the longer-run undesirable occurrence, however.
future—the next quarter century It may reflect only the bite of the
—may have in store tpv us. *■
"tight money" policy, and may
presage a new stability in whole¬
(A) F a c t o r s Affecting the sale and consumer prices. There
Short-Run Economic Future is certainly no law stating that
we

it does not seem particu¬
burdensome nor likely 'to

consumer

first at the rest of this

Here

worrisome

run

But it Las
(3) The easing of basic com¬ not, at least not yet.
modity prices may have contrib¬
n
Elements of Strength
uted to this feeling.
Consumer
Against these elements of weak¬
and wholesale prices have held
firm or risen, but the more sen¬ ness we can set the following ele¬
u
^
sitive basic commodity price in¬ ments of strength:

Let's look;

at where we are going.

internallv-fir.anced,

tions.

feeling that the price situation

faster

rising

(costs

plant and equipment acquisi¬

new

Affecting the Business Future

still

profits

selling prices) and a reduc¬
liquidity caused

larly

element,

in corporate

selves,

spending and output were more
finely balanced.

weakening

by this profits squeeze, by accel¬
erated
tax
payments,
and
by

Economic and Financial Factors

and the growing volume of con-commercial banks.

mortgage oebt po¬
is also cited

large-scale,

page

and

discernible squeeze on busi¬

than

act

of development probably could not have
have the rise of institutions such as

these positive developments have had

tion

loans by

Of course,

from

•

consumers

further

ness

Continued

sales finance companies
sumer

ever

such

have

sition

Suburban communities may or may

oped burdensone political hierarchies. They are too often
possessed of New Dealish ideas about the functions of
government at all levels. If they will resolutely insist upon
the application of common sense to their affairs, and pro¬
ceed with financial prudence, theirs should not be an imr
possible task.
?

addition

stallment

will continue to be rough.
not have devel¬

not, then the road ahead

regions and has consisted much more largely than
former times of the building of one to four family

in these

specific in¬
dustry weaknesses, the heavy in¬
(6)

political powers that be, but that is a matter of no great
importance. The question is whether the people can bring
themselves to the task with determination. If they can

ing "central cities" is, of course, much more prevalent
than in the "central cities" themselves. Residential con¬

continue

will

pipe)

throughout the year. V ,'V

costs of necessary

tAs We See It

and

plates,

larger centers must simply clean house, get the
services down within reason and reso¬

older and

Continued from

things

schools, hospitals, roads,

and the other civic appurtenances,
are

based

and must

count of the needs

take

ac¬

expand¬

ing population. So there seems no
chance for much decrease here,
either.

(3)

addition, there

appears

substan¬
tial
further
wage
increases in
broad industrial segments of the
to

real prospect of

economy,

tracts

are

For example, wage con¬
to be renegotiated this

the textile, petroleum,
chemical,
lumber,
and
delivery times (a better-balanced shortages—and capacity outputr- paper industries. In all likelihood,
supply and demand picture), and of heavy steels (structural steel, as in the recent past, the wage
year

rubber,,

Volume 185

Number 5640

The Commercial and Financial Chronicle

(2419)
increases

negotiated

contracts

will

crease

last

exceed

contracts

real

possibility

in¬

seems

over-emphasis

(

other

sectors

the

economy outweighed
weak¬
in new
housing starts, and
during part of the year, in auto¬
ness

mobile

things

production.

We have had

good for

long, that it
forget what a
wonderfully dynamic and flexible
is

for

easy

thing our economy is, and how
easily it actually adjusts, to chang¬
ing circumstances. But we should
not

forget that in 1956, substantial

increases
tures

for

plants and equip¬
rising consumer out¬
than

offset

million in

sales., and

car

expendi¬

new

ment, and
lays, more
of *1.5

business

new

decline

passenger-

fall in

hous¬

new

ing starts from 1.3

million to 1.1
million units. Our 1956
experience
stands as strong evidence that an
economy as big and

significant

and

production

ours

shifts

adjust

can

demand

ground.

again,

climb back to
Let's change our
me

and

talk

about

the

run.

spots'', in the economy, and a
consequent,
concurrent .lack
of
emphasis on our prospects for
achieving another "rolling read¬
justment," as in 1956. Then, strong
performances

safer

long

discussion of specific "weak

our

dangerously, let

the- focus

since

executed.

were

there

these

labor's

productivity

(4) Also,
in

under

diversified

without

any over-all setback.
(5)
Finally, the role of our
flexible
monetary policy looms
large in my own thinking about

the current business outlook. Thus
far this year, the

great

economy
than we

Factors Affecting the
Long-Run Economic Out-

the

—

business

creases

the

to have occurred in

seem

prices of services.

cycle—

(2) The rise in consumer in¬
to; and we know stallment
and residential mortgage
about limiting the effects of
debt

(B)

deal more, about what
cyclical fluctuations in the

causes

these

the

should

also

long-run

weigh
and

the

are

elements

weakness

each

how

other?

against

for himself" kind

man

strength

mentioned
This

"every

of game to

play, and the judgment each
must

form

man

not

find

ourselves in.
really want to eliminate it en¬ well seriously intensify the initial proximately $231,000,000 in new
equity capital.
\
greatly
improved tirely. Our free enterprise econ¬ decline in activity.
The offering is being underwrit¬
knowledge of how to limit omy must be kept
As a proportion of
flexible, and
disposable ten
by a nationwide group of 255
cyclical fluctuations.
free to adjust
continuously, if its personal income, consumer in¬ investment firms
headed by Mor¬
(1) We have mentioned our na¬ great potentialities for growth are stallment and residential
mortgage gan Stanley & Co.
tional
preference, based on our to be realized. Cyclical variations debt together have increased from
The funds from the sale of the
fear of depression, - for
"just a in economic activity are a prin¬ 27% in 1941, to 30% in 1951, to
1,050,223 additional shares will be
little bit" of inflation, to make cipal avenue of such
adjustment. 44% in 1956. This rise, too, seems
we

(4)

Our

we're

sure

the safe side of the

business cycle.

We have also

ferred, in passing, to

re¬

tendency

for wage increases to outrun
pro¬

ductivity

increases

Both

omy.

these

our

econ¬

factors

are

What

do want to do is to

still

added to the corporation's general

continuing.
Whether funds and will be available for an¬
a
danger point ticipated capital
expenditures and
and prevent extremes either of in¬ yet I do not
know, but I strongly for- working capital.
During the
flation or depression from occur¬ suspect that we
may have. In any five
years
ended Dec. 31, 1956,
ring. With what we know now, event, as this proportion continues IBM
spent $686,882,000 for acqui¬
I think our chances of
doing this to rise, our economy will become sition and replacement of prop¬
over the next several
decades are increasingly
vulnerable, in the erty, plant, equipment and rental
sense
that potentially small de¬
reasonably good.
equipment of which $208,443,000
So our long-run
prospects are clines in activity and incomes may was spent in 1956. It is estimated
good. Not quite so good as what be
greatly magnified,
and the that capital expenditures for 1957
I've said might make them
ap¬ amplitude of cyclical down-swings will
substantially exceed' those
pear, though. For there are some thereby increased.
made in 1956. The proposed
capi¬
these

variations

within

keep

bounds,

have

reached

tal

IV.

Summary

the

color

be successfully discussed ex¬
cept by reference to the present,
can

and the

past.

(2) We have come far in the
last quarter century, and we stand
now

spite of

peak of prosperity.

our

fered

sharp,

confidence

recent

about

and present

progress

prosperitythough,

the

have

suf¬

decline
future

out¬

look for business.

gas-turbine

propulsion

clear

seems

being misled

are

that

by the fact

rate of progress seems to

our

declining.

In a full-employ¬
capacity-output
economy,

ment,

though,

our

real

each

limited

year

productivity.

gain
to

must

our

gain in

This is bound to be

small—2 to

3%—compared to our
output. Any larger gain is
illusory, however, and only re¬

total

flects
and

inflation.

the

money."

This

was

justification for "tight

economy,"

itself

the

major

factor

de¬

early 1957.
On

tions,

the

living
are

standards

rise,

consumed

in relation

goods

consumed, and the na¬
tion's productive facilities and la¬
bor force

ingly.

are

redistributed accord¬

In the last

example,

the

seven

for

years,

proportion

our

labor force

basis

judge

these

the

observa¬

prospects

to1

steady

present

for

be f or high,

ucts.

After completion of IBM's of¬
fering of capital stock to the pub¬
lic in 1925, its total capitalization
(long-term debt, capital stock and
earned surplus)
was
$29,552,673.
At March 31, 1957. the corpora¬
tion's total capitalization was
$685,158,$77, the increase having
been
effected by retained earn¬
ings and long-term borrowings.
At April 30, 1957, the outstanding
long-term debt was $350,000,000,
all
of
which
is
privately held.
Giving effect to the sale of the
I,050,223 additional
shares,
the
corporation will have outstanding
II,552,460 shares of capital stock.

International Business Machines

have

new

economy

sion,

frontier

old

levels

government

could

more
ever

to be

Our

is young in a new dimen¬
the
possibilities
for

shift

standards.
in

shift

our

con¬

and rising liv¬

The

danger

the fact that it

of. workers

installment

consumer

and

residential

reflects

tinued prosperity,

ing

tion

continuing.

Such

exciting lies
be.

and

growth

services

from

involves

it
a

industries

mortgage debt to dis¬
personal income.
The one

posal
will

limit

growth,
duces

our

while
new

long-run rate of
the other intro¬

element of

instability

into the economy.

where productivity is high and
rising to industries where produc¬

staggering. New jobs, tivity is low and not increasing
plants new products, new so fast.
The net effect is a re¬
demands, new satisfactions, all lie duction in our rate of productivity
just over the technical horizon. increase.
Whether

will find them all

SALT

Business
been

LAKE

CITY,

Investment

formed with

Service

—

has

foreign countries.

The latest dividend declared on
IBM

capital stock was a quarterly
of 60c per share voted
April 30, 1957 and payable June
10 to shareholders of record May
payment

the

Utah

serv¬

organizations at 270 locations

in 84

21.

Form Business In v.

are

in 14 countries and sales and

ice

will be issued after
date, the additional
being offered will not

they

record

now

receive

this

dividend.

offices here to

This, in turn, limits the rate at engage in a securities business.
Pac. Coast Exch. Member
our
living standards may Leonard W. McDonald is a prin¬
to rise, and our rate of cipal.
SAN FRANCISCO, Calif.—
The firm may be reached
we
have now.- To quantify this premiums on technical imagina¬
Ronald
E.
Kaehler,
President,
saving (new- capital formation). at P. O. Box 1623.
tion and daring investment. I think
estimate, I would expect for 1957
It may also prove highly infla¬
announced the election of Hamila
Gross National Product of at the last ten years have
shown, tionary, if wages in service indus¬
tion D. Schwarz to membership
least $425. billion, which would though, that we have both
quali¬ tries,
With Josephthal Co.
in the San Francisco Division of
keyed
to
wages
in
the
be up about 3% from
19§i6, as a ties in abundance.
Pacific Coast Stock Exchange.
higher-productivity primary and
Josephthal & Co., 120 Broad¬
result of
productivity increases, or
(4) Along with our great ad¬ secondary industries, rise faster
Mr. Schwarz is a general part¬
way, New York City, members of
price increases, or both. And with vances
in
technical,
scientific than service-industry productiv¬ the New York Stock Exchange, ner in the firm of F. S. Smithers
any sort of luck, our G. N. P. in
knowledge have come improve¬ ity. This is very likely to happen. announced that Richard I. Graham & Co., with offices in New York
1957 snould be at least $430 billion.
ments
in
our
technical, social In fact, a good part, if not most, is now associated with the firm as City and in the Russ Building in
Having had my fling at living knowledge.
San
TTranrisro.
amount executive.
Specifically, we know of our recent consumer price in¬
or

activity,

levels

slightly

above

levels

those

not remains to
This

kind

be seen, of course.

growth places great

which

continue

•

expected

Corporation is the largest manu¬
already long
facturer of business machines in
since achieved
full employment
the world. It produces and leases
and capacity output, and;
(2) we or sells
machines and systems for
have now succeeded in
containing
processing business and scientific
most of the
inflationary pressure
data, including punched card ac¬
that in the past sometimes created
counting machines and electronic
the illusion that our real gains
computers, as well as special com¬
were larger than in fact
they were. puters and other devices for the

(1)

new

the rest of this year

This loss of confidence does

since:

could not sustain

employment

spending.
Now we have rapid
population growth again, and we
than

one

Staggering

massive

have

bcen

that

full

without

Its effectiveness in 1956

stabilizing business confidence in

services

are

engaged in producing
(4) Our long-run prospects are armed forces, electric typewriters,
(transportation, trade, fi¬
excellent for continued real time recording systems, and re¬
Expansion of geographic fron¬ nance, and "service") has risen
growth and expansion. Two long- lated supply items.
tiers, along with rapid population from 44% in 1949 to 53% in 1956.
term trends will bear close scru¬
All business outside the United
growth, used to be the main ave¬ Employment in primary (agricul¬
tiny, however: (1) the trend to¬ States is conducted by IBM World
nue of economic
mining)
and
secondary
progress. In the ture,
ward a larger proportion of serv¬ Trade
Corporation, a wholly'30s we had neither, and we de¬ (manufacturing, construction) in¬
ices to goods in our consumption owned but independently opera¬
veloped the notion of the "mature dustries fell from 56 to 47% in the
pattern; and (2) the rising propor¬ ted subsidiary which has plants
same period.
This shift seems still
Growth Possibilities

limiting our progress to some¬
thing like its real proportions may

have

produced and consumed.

essentially qualita¬

nature.

(3)

television

TV,

expenditures

primarily for additional rental

(1) The business future has two equipment and for increased pro¬
duction facilities required by
dimensions:
the
short-run; and
the long-run.
Neither dimension growing demands for IBM prod¬

not
seem
justified in either a
industry now. nance, service) industry. And one short- or long-term context. The
Plastics, synthetic fibers, residen¬ measure of a highly developed and current situation seems essentially
tial air conditioning, are all rela¬ developing economy is a high and
sound, and our short-run prospects
tively recent innovations. Jet air rising proportion of services in good. From here on in, though,
the
total
of goods and
services our growth rates should be
transport, electronic calculators,
slower,
at

for automobiles, are not so far
along, but are developing rapidly.
me, however, that there has been
The harnessing of atomic energy
a
tendency toward over-stress on for
peace, as well as for war-time
elements of weakness, and a con¬
use, has opened a whole new tech¬
sequent under-emphasis on ele¬ nical
frontier, soon to be crossed
ments of strength that underlie a in force.
basically sound situation. Possibly

tive

a
subject of
Consumer in¬

concern.

■

And

Underwrite IBM Offer

International Business Machines
economic stability.
Corp. yesterday (May 22) launched
stallment debt and
It
mortgage debt one of the
;;'• look
seems
fair to say that we
largest industrial com¬
constitute fixed charges on dis¬
know more about
mon stock
limiting the ef¬ posable
offerings to stockhold¬
When we come to look at the
personal income, and re¬
fects
that
we
ers
know
when it mailed
about
the
subscription
flect purchases of
long run, the clouds lift in the causes
prior periods. warrants to its
themselves. This is not an
34,000 stockholders.
The higher the
crystal ball, and we are able to
proportion these The
unusual situation.
corporation is offering to its
My physician
see much more
charges constitute of disposable
clearly. There are friends tell
me it's true in medi¬
stockholders the right to subscribe
no certainties in these
income, the greater the risk that at
matters, of cine as
$220 per share for 1,050,223
well, for example.
Our not
course, but there is surely a pre¬
enough spending power will shares of
economic
additional capital stock
prescription for high- be left to
ponderance
of
factors
maintain a current, full- at the
favoring level
rate of one share for each
stability includes compen¬
continued economic expansion and
employment level of demand.
ten shares held of record on
satory fiscal policy and compensa¬
May
growth. The long-run trend runs
More important, in the event 21, 1957. The
tory monetary policy, properly
rights to subscribe
clearly upward.
of any decline in business
will expire at 3:30
timed and coordinated.
p.m. (EDT) on
This pre¬
activity
The maj or elements of strength
and
decrease in incomes, these June 10, 1957. Stockholders must
scription will not cure the "dis¬
leading to this conclusion are at ease" of
fixed charges could
act
with respect to their
cyclical fluctuations, but
overhang the
rights
least four:
before that time or the rights lose
market in a serious way. The
it
will
temper the fluctuations,
high
fixed charges must then come out all value.
(1) Our built-in inflationary and limit the
The offering which is
range of their varia¬
of a smaller
bias, already mentioned.
income, and even less the first public financing under¬
tion. This is aU)we want to do, I would
be
(2) Population growth.
left for current con¬ taken by International Business
think. The business
cycle is not
(3) .The "technical revolution" really a disease and we
sumption expenditures. This could Machines since 1925 will raise ap¬

interests

working
and
will
continue
to
principal effect work in the direction of
giving
of the more pessimistic
tinge to the economy "lift"—more lift than
business expectations has been a it
may need, possibly, in view of
subtle shifting of last year's
"tight other expansionary forces at work.
money" policy, from one of active¬
(2) Population growth may be
ly turning the screws in the di¬
expected to continue at a sub¬ elements of weakness in the longrection of more tightness in the
stantial rate.
Nothing, especially run picture — some unstabilizing
money and credit markets to one in an
economy that's prosperous possibilities—that we have got to
of playing a
"waiting game." The to begin with, creates demand and watch and take account of. Two
Fed is now "taking
soundings," as stimulates production better than seem especially worth
mentioning:
it
were, and standing
ready to population
growth. It
increases (1) The long-run shift toward a
loosen the screws—to ease off its
the demand for everything:
greater consumption of services;
capi¬
restrictive policy — if develop¬
and (2) The
tal goods—housing, schools,
long-run increase in
roads,
ments should
indicate that that
hospitals; and consumer goods— consumer installment and resi¬
course
of action seems appropri¬
dential mortgage debt in relation
food, clothing, services—alike.
ate.
It has not seemed appropri¬
(3) Our rate of "innovation," to disposable income.
ate yet.
In fact, the official gov¬
growing out of business imagina¬
ernment line still holds that the
Two Weak Spots
tion and the technical revolution
predominant
pressures \ in
our
we are
(1) As an economy grows and
undergoing, has been truly
economy today are inflationary in
amazing in the postwar period, develops, productive activity ex¬
nature. -':o
'
-\£'r
and should be even more amaz¬ pands
beyond primary (extrac¬
ing in the future. Ten years ago, tive) industries, through second¬
Weaknesses Overstressed
television was just becoming a ary
(processing)
industries,
to
How are we to assess this mixed
commercial possibility.
But look tertiary (transportation, trade, fi¬
situation?

Morgan Stanley Group

used

causes,

The Commercial and Financial Chronicle
36

extended

Continued from page

all

practically

dollar countries.

non¬

Other important

the liquidity of the Fund
automatically be restored in

sources,

will

Control^
Toward Convertibility

Ending Exchange

Progress

apparent to the

not always

production that began during the
has continued with only minor
interruption. In Western Europe,
including the United Kingdom,
industrial production in 1956 was
more
than 80% higher than immediately before the war. Some
of the countries in Latin America
have also
increased production
considerably.
In
the underde¬
veloped countries of the Far East
and the Middle East, the growth in
production has unfortunately been
much slower, although a few of

casual

equivalence to U. S. dollars in free
exchange markets. For example,
since February, 1955 transferable
account sterling has been traded
against U. S. dollars at a discount
of only about 1 or 2% in the free
exchange markets in Zurich, New

tion,

observer.

countries the exchange

In many

that

them

war

•

Thursday, May 23, 1957

Blyth-Merrill Lynch

currencies have equal one, two and three years.
The
or nearly equal transferability. 'At
promptness with which aid has
the same time, these currencies been given to its members in the
have been steadily approaching recent difficulties should .assure
European

...

(2420)

the

Fund

ready

support every effort they make
to improve their financial policies,

strengthen their payments posi¬

relax exchange

and

re¬

strictions and discriminations. Any

country ready to take these steps
confer
far-reaching
York and elsewhere.
can count on the help of the Fund
the authorities. The
Progress has also been made in carrying out a comprehensive
restrictive significance of these
regulations, however, depends on toward reducing discrimination program designed to make its cur¬
\[,u.
the manner in which they are against
dollar imports in prac¬ rency convertible.
exercised. Even when the regula¬ tically all countries.
This is in¬
Role of the Fund v- '
*
tions have remained formally un¬ evitable once currencies become
The International Monetary Fund
changed, they have in practice more nearly equivalent to dollars.
been extensively modified by per¬ No country would find it worth¬ has played a quiet but effective
mitting
many
transactions that while to discriminate on a cur¬ role in the progress that has been
were previously restricted. In most rency
basis,
paying
excessive made. The improvement in inter¬
national payments and the relaxa¬
for its imports, if the
these countries are beginning to Western European countries, for prices
example,
the elaborate
frame¬ currency with which it pays can tion of exchange controls is to a
make encouraging progress.
large extent due to the revival of
An even greater recovery has work of exchange control now has be easily sold for dollars. In some
monetary and fiscal policy and
taken place in world trade.
In little restrictive effect, and even countries of Western Europe, for
transactions with the dollar area example, dollar discrimination is the establishment of realistic ex¬
1956, the value of world trade out¬
change rates that enable countries
side the Soviet bloc was $93 bil¬ have become a good deal easier. now negligible or nonexistent. In
The growth of world trade, and the United Kingdom,
most raw to compete in world markets. The
lion, measured by exports, and
the considerable increase in the materials and foodstuffs may be Fund has been insistent that the
S93 billion, measured by imports.
without discrimination elimination of exchange controls
Most of the growth in trade has exports of the United States and imported
that hamper world trade is essen¬
taken place since 1948, and much Canada since 1950, are concrete either from dollar or non-dollar
of it is accounted for by the in¬ evidence of the progress that has countries; and
in other 'sterling tial to a prosperous world econ¬
omy.
Beyond that, the Fund has
area countries,
a substantial part
creased exports of Western Europe been made in the past five years. J
urged on its members the im¬
In most countries there is no of imports is bought on a com¬
and the Middle East and Far East.
portance of avoiding inflation as
While the dollar value of total difficulty in transferring all pay¬ petitive price basis.

regulations
powers

increased by 70% ments for current transactions. In
1956, the dollar a few countries, however, im¬
value of the exports of Western porters who have been licensed to
Europe increased by more than purchase goods abroad may be
100%, and of the Middle East and unable to obtain official exchange
Far East by about 85%. A very to pay for such imports. Similarly,
substantial part of the increase in foreign investors may be unable
trade took the form of exports to (p transfer the current earnings of
their investment. The failure to
the United States and Canada.
foreign
exchange
to
The consequence of the growth provide
and redirection of world trade has transfer such payments is equiva¬
lent to blocking the proceeds of
been the emergence of a surplus

world

the

exports

Reserves and

between 1948 and

Convertibility

national

reserves are

not adequate

enable the great trading coun¬

tries to

exchange controls

remove

and to establish currency conver¬

It should be emphasized

tibility.
that

convertibility

currency

de¬

pressures

possible
economy

The test of

greater

have

such

had

test

recent

months. The losses from the clos¬

ing of the Suez Canal have been
heavy, but they have not caused
♦an economic crisis in Europe, nor
have they resulted in a breakdown
of world payments. In fact, the
burden has been
for

Asia,

whose

relatively greater

larger

trade

proportion of
through

moves

the

high-income
greater

Canal... The

Suez

countries of Europe have

flexibility in absorbing such losses
than the underdeveloped countries
of Asia whose economic margin is
so narrow.

of the

the

A constructive solution

Suez

way

States

establishment

problem would open
new
gains in the

for

had

converti¬

have

the

than
Fund.

increased

total

There

resources

are

some

jointly by Blyth & Co., Inc.
Lynch, Pierce, Fenner
&hBeane, will purchase alny un¬

and Merrill

subscribed shares.

tional common

general funds where they will
initially to repay all
of Acme's outstanding debt which
$17,000,000 of notes in¬
The
with
other internally-generated funds,
to the construction of additional
consists of

rely

curred for various purposes.

balance will be applied, along

steel-making facilities at an esti¬
mated cost of $23,000,000. a
Acme

111., was established
verter

more
of the

countries

prices and avoid recurrent dif¬
in
international
pay¬
*

in 1885 and
been a con¬
steel into

steel strap¬

the largest makers of

ping and strapping equipment and
other associated steel products. On

14, 1956, when Acme ac¬
quired substantially all the assets
of Newport Steel Corp.] Newport,

Sept.

Ky., it became a producer of steel
ingots from scrap and pig iron and
a
manufacturer of various types

years

strip. The company is one of

steel

of sheet steel.

underestimate

should

many

of semi-finished

hot-rolled and cold-rolled carbon

They are ready to sup¬

one

for

has

restraints.

principal

Steel, whose

plant and offices are at Riverdale,

ficulties

'''■

from
addi¬
stock will be added

be available

port their governments in policies
that will halt the persistent rise

ments.

and

support from the public. The
fact is that people are tired of in¬
flation and resentful of exchange

•*

The net proceeds to Acme

the sale of debentures

this, governments have
surprisingly large measure

controls.

p.m.

headed

in
a

share for each six held;

June 5, at which time
second underwriting group, also

(CDT)

placed

credit

and

new

the offer will expire at 2:30

then, the gold and dollar reserves
of countries outside
the United

Convertibility of Currencies

one

be entitled to subscribe for

yvill

marked intensifica¬
tion of exchange controls. Instead,
was

Acme Steel is

Stockholders \of record on May

any

reliance

mqV

♦

issuing to the holders of its $10
par value common stock rights to
subscribe at $29.50 per share for
an
additional .396,079
shares.

closing of the Suez Canal did not

taxation

The

now

At the same time

payments in order. Even the dif¬
and uncertainties of the

precise amount of reserves.* Even

countries.

tprity.

ficulties

result in

adversity. We bility of currencies for all current

its capacity to meet

countries

which

And

strong economy is

4T4% sinking

yjeld approximately 4-95%. to

monetary and fiscal policies to re¬
strain inflation and to keep their

tion of this type

persist, it is
to say that the world
is prosperous and strong.

000 Acme Steel Co.

fund debentures, dueM977. The
debentures are priced at 99% to

gratifying to see the extent

current transactions.

seem

It is

pends primarily on a strong pay¬
ments
position rather than any

The elimina¬ very large reserves can be dissiof restriction on pated all too soon if the under¬
economic
position *;of
a
with the United States. Since 1950, transfers would be of great prac¬ lying
On the other
the
free
countries
outside the tical importance to the countries country is weak.
United States have added about with large payments arrears and hand, a strong currency will en¬
to their trading partners. A policy able a country to sustain any tem¬
$10 billion to their gold and dol¬
lar reserves. Of course, not all of remitting promptly all current porary adversity in international
countries have shared equally in payments is an essential part of payments and gradually to accu¬
world
trading system under mulate reserves.
this growth in reserves. In fact, a
which each country can use the
some important trading countries
Only a few years ago, a number
have not yet succeeded in build¬ proceeds of its exports to pay . lor of countries made their first great
its imports. It is gratifying to note
strides toward relaxing exchange
ing up an adequate level of re¬
that a prompt remittance system
serves. Despite the fact that pay¬
restrictions, depending upon the
ments difficulties dp;,recur: from has been successfully established International Monetary Fund to
;in a number of Latin American
time
to
time, that inflationary
help them in time of need. Since

includ¬
ing aid, of the rest of the world
over-all payments,

in the

lor

An underwriting group headed
jointly by Blyth & Co., Inc. and
Merrill Lynch, Pierce," Fenner $c
Beane offered publicly yesterday
(May 22) a new issue of $22,000,-

strong payments position.

It is sometimes said that inter¬
to

condition

necessary

Group Underwrites
Acme Steel Offerings

Total

revenues

and

Acme

of \constant vigi¬
inflation. Every
country with a high level of em¬
ployment and a high level of in¬
vestment is exposed to inflation¬

$134,430,507, on which its net in¬
come was $6,855,938, equal to $3.28

of eco¬

standing during the year. For 1955,

the

importance

subsidiaries

lance in avoiding

pressures.

ary

The

test

1956 amounted

share; based on the
number of shares out¬

common

per

average

willing¬ total revenues were $110,861,392;
government spend¬ net income amounted to $6,172,119,
ing when there is an increase in or $3.11 per share.
exchange
should
not
prevent
them from private expenditure and to re¬
Debenture call prices start at
flow of trade. When currencies are
moving toward convertibility if strain the creation of bank credit
105.50% for the first five years,
convertible each country can use their
payments position becomes when savings are inadequate to
drop to 104.50% for the sixth to
the proceeds of its exports, and
strong. More than ever, the Fund meet investment demand. Nothing
the eleventh years and thereafter
other current receipts, to pay for
is ready to use its resources to could be more dangerous than the
decline V2 of 1% each year until
its
imports,
regardless
of
the help countries that are relaxing
view that mild inflation can do no
maturity.
country with which or the cur¬ exchange
controls
and moving harm. It is especially dangerous
Cash dividends, which have
rency in which it trades. It is for toward the establishment of con¬
for countries to assume that a rise been
paid on the common stock
this reason that the International
vertible currencies. If world trade in their prices and costs will not
since 1901, are currently at the
Monetary Fund attaches so much continues to
grow, if currencies result in payments difficulties be¬
quarterly rate of 50 cents per
importance to the convertibility of continue to be strong, the steady
cause of
a
similar rise in dollar share.
currencies.
progress toward the elimination of prices.
The dollar countries, in
The
establishment of general restrictions
and
discriminations
particular the United States and
convertibility for current inter¬ will not be impeded by a lack of
Charles Prince Opens
Canada, have shown a determina¬
national
payments
is
centered reserves.
tion and a capacity to deal with
(Special to The Financial Chronicle) upon the currencies widely used
In its ten years of operation, the
problem
of
inflation that
LOS ANGELES, Calif.—Charles
in world trade—in the first in¬
the Fund has placed at the dis¬ should inspire similar action in Prince has opened offices in the
stance the U. S. dollar and sterling,
posal of its members about $3.3 other countries.
Statler
Center > to- engage
in a
/
'
.
and secondarily the currencies of
billion of resources—largely in the
securities business. He was for¬
The growth in production, the
other great trading countries. The
form of drawings, partly in the determination to eradicate infla¬ merly with First California Com¬
convertibility of the U. S. dollar form of
stand-by agreements still tion, the expansion of world trade, pany.
•
:
international

payments is

es¬

in
removing
all
obstacles to the free

sential

step

that have not shared in this gen¬
eral

increase

reserves.

nomic statesmanship is a
to reduce

ness

That

■

world economy.
Relaxation of Exchange Controls

While
members

the

countries
the

Monetary Fund

change controls

that

are

International

maintain ex¬
current trans¬

may
on

actions, they have undertaken in
the
Articles
of
Agreement
to

has

sound

base

world payments

system in the postwar period. The
convertibility of sterling is neces¬

in force.

Nearly all of these trans¬

all

give hope that the exchange

actions have taken place in three

obstacles

and
1956-57. That is not surprising, as
Fund resources are equivalent to

payments will in time be elim¬
inated and the convertibility of

periods

—

1947-48,

1952-53,

international

trade

Bache Adds to Staff

and'

(Special to The Financial Chronicle)

strengthen
withdraw them as soon as they are
BEVERLY HILLS, Calif. —
all the
great trading currencies
able to do so without weakening this base. Furthermore, if sterling
reserves, and reserves, by their will
ulitmately \ be
established. Leonard Vandervelde is now con¬
were
made convertible, most of
their
payments
position.
It
is
nature, are used
intermittently There
may
be
no
spectacular nected with Bache & Co.,. 445
reasonable to ask whether coun¬ the other great trading countries
when payments difficulties occur. movement in this
direction, but North Roxbury Drive. He was
tries
have, in fact, relaxed ex¬ would promptly follow the lead Nor is it surprising that over $700
gradual and steady progress will formerly with H. Hentz & Co.
change restrictions with the of the United Kingdom.
million of the drawings and over
be
made.
With
good - will and
Notable progress toward
improvement in international pay¬
con¬
$1,000 million of the stand-bys
ments. Since 1951, the Fund has vertibility has been made in the
Now With T. R. Peirsol
mutual understanding among the
were arranged in the few months
made
an
annual
report
on
past few years. While only 10 since Oct.
(Special to The Financial Chronicle)
1, 1956, when there was great trading countries, with lead¬
exchange restrictions still in force members of the Fund, all in the
BEVERLY HILLS,,Calif.—Wil¬
so much fear of the disruption of
ership and strength provided by
among member countries.
These dollar area, have made their cur¬
the International Monetary Fund, liam E. Donovan has become con¬
reports show that a good deal has rencies formally- convertible
in trade and payments because of
accordance with the Articles of the closing of the Suez Canal.
with
the
support of influential nected with T. R. Peirsol & Co.,
sary

provided

which to build

broaden

and

been done toward eliminating the

foreign

exchange
controls
that
hamper world trade. The advance
has not been without interruption;
but despite occasional lapses, real
progress

has

been

made.

This

Agreement,

Irading
a
high

most

currencies
degree

of
the
great
have acquired
de

The Fund remains well

with

reserves

facto con¬
vertibility. The transferability of ; vertible

sterling has

been

for

some

time

gold

currencies.

the revolving

business groups,

supplied

and

con-

Because. of

character of its re¬

gress

such

9645 Santa Monica

the Con-

was

of the International Cham¬

ber of. Commerce,

reached,,,;

with

Boulevard. He
Investors

Realty Fund, Inc. and

I am confident

that this goal, will be

formerly

to with

pricr there¬

Francis I. dp Pont &

Co,.

Volume

185

Number 5640

The Commercial and Financial Chronicle

(2421)
Continued

from first

page

ferently

from

the extension of forces. We have had full
employThe capital market ment; we have been
going through
Each na- a period of
substantially higher,
lion also over the course of the
interest rates and restriction of
last 25 years has
developed rig- credit, x employment rises-unem-r
iCiities and inflexibilities
wtych it ployment falls,! yet' there Seems %6\
does not,seem likely that the force be no
abatement in the tendency
of circumstances or the
voluntary of prices to rise. Indeed,* in the
decisions
of
constituencies
will New York
credit

Questions
what

was

known

was

the

''Great Depression" which started
in the fall? of
'29
and
became

uniqiie in ferocity and magnitude
when Britain abandoned gold in
September,'
1931
and
which
stretched

over a

span

Inflation

of more than

not

been

war

except

nasty affairs in Korea.
V

and

convulsion

history, feo the
jprices to rise more Rapidly

minor deviations from
the general trend. This
period is
very

perhaps

aopropriately

"Great Inflation."

called

the

It is only by

economic

which
in

exist,

Inflation expresses itself in
many
it has many causes.
It is

fair to say that inflation

of countries

scale

which

society

is many

seems

common

experience of mankind,
with only a few exceptional inter¬
vals of time, since the dawn of

history. The task is too compli¬
cated, the phenomena are too slip¬
pery and too numerous. Professor
A.

J. Brown, in his recent
book,
The Great Inflation published un¬
der the auspices of the
Royal In¬

stitute of International Affairs
by
the Oxford
his

two

University Press, com¬
discussion by saying:

world

aftermaths
familiar
countries

their

and

wars

inflation

has

become

the

people of most
threat or an actual¬

as a

ity. .Yet, despite the volume of
experience so accumulated and the
amount of. attention

it,

that. there is

cannot

one

say

directed to

general
can

agreement as to how it
best- be
defined, how the

threat

how

the

proceeded

can

extent

assessed,
which

point of view,
elusive and

; Although
inflation is

an
an

I shall quite

can

correctly,

bewildering variety

of phenomena."

ers,

elusive phenom¬

perhaps

enon—or,

attempt to define
undertaking which

"frankly leave to oth¬

be said with reasonable

accuracy that the outward mani¬
festation of inflation which con¬
cerns

people

and

governments

perhaps than all other out¬

ward

evidences

processes, is
the general

inflationary

continuous rise in

price level.

It is this

economic spectacle which has his¬

torically taken, so it is thought,
the greatest toll of society. Yet I
would not want to be thought indifferent to what has been called
the inflation of the '29's and to the

devastating

aftermath

.which

many

-people

boom

of that particular decade.

associate

with

the

It is perhaps not wholly irrele¬
vant to suggest that
throughout
the

19th

Century

both

here

and

Perhaps
some

I can best deal with
of, these complications and

our

general discussion to sug¬

gest that, if since 1945 when open
and
large-scale
employment of

military forces

end, we
have not, so far, experienced a
compensating liquidation of war¬
time

came

inflation,

the

last

not

have

years

because
been

exception to the general rule, but
rather
the

because

historical

been

have

been

sense

and

other

either

the

vaster fron¬

than
the

any

history of

human

front
war;

years

war

over

not, in
word,

the

horizons,

occasion

For

peace.

largest scale and
tiers

have

race; or,
on
a
wide
have been preparing for
or we have been arming to
we

prevent the

recurrence

have been not at

war

and

war.

have

the general level of
prices.

Derhans

the

rice

groups

apprehen¬
prices

within the

ex-

allay .the

the international environment in
which we live and I fear will continue to live for a lon* time® bud«et be clearly in
a
be®P°w^riul

nrirec

erlater if the
ha| not initiated

might have been
Federal Reserve

and pursued its
present
-

Contradictions

.■

policy.

couiagement to inflation?^ Cannot

an unbalanced budget be less in-

and Complications

^2
are made?

'
am, not ^gestmg that our
national defense should be weak¬
ened. I am merely asking whether

come7h^

many

total public

government's hunger for commod-

absorbing the;, atten¬
consequent rise in inter- the
reverse
annearc
tn hivJ hp
politicians,
of
central est rates can in practice actually
bankers and commercial bankers, arrest an
inflationary movement to have risen and
nrices nhriort
of

con-

time al-

same

penditure is devoted

must

questions: The question sug- f In
jgttf centtoy ahd up! 'to
1
fhe Fed lteslrve
it. seems to
strict credit is rfcht nVunmnc but
aV- bee" true that prices tended
whether thVLstfktion of
credK! the'Tourse Slhe £s?Ten v°ems
with the

series

pressure of this huge volume

com¬

immediately followed. Does this
level, until it has
introduceintotheeconmnir cv«- in, ?h,e ??arke.t place conrimodities
been
applied so rigorously that tern
an
Can Credit Act as an Economic
inflexibilitv
which
no
™h.lch.the. Private segment of sothe spectacle and fear of
signifiRegulator?
cant
which
unemployment
begins
to more
elastic
without
creating results of
Approximately 30 years ago the appear on the horizon and to inrelatively wide-scale unemployview became generally
interest rates
accepted duce men to abandon demands for ment or thp fpar
if /n
?nr
of
unmrmw
518ner, interest rates, it in fact
in many quarters that the
cyclical annual increases in pay that bear ment9
these two weapons can be effecmovement
of
economic -activity no relation to the business situaH
'
■
„
^ ..
; i'
.4.
^ Vse?
can
be arrested, if not levelled lion or to
productivity. The reason
+1,0+
questions Is it
These are only a few of the
out, by a deliberate policy of re¬ fort putting the question in this P°sslDie
^at on®.
°t the gov- questions which a re-examination
stricting or augmenting the avail¬ form is that there seems to be a
credit a»d of our situation ought to raise. I
able
volume
of
credit
in
the relatively ; universal
coincidence
fu
£
fi? \° nse> can do not advance them because I
banking system—with a resulting between the rapidity with which y3"1136!1 the *orces that are push- know the answers. I advance
them
munity.

general

;

price

^moStte™ake

c^n'well'nuZv'fhl
^

restriXd

richer

„

rise

This

fall in the rates of interest.

idea

its

had

ceptance in

birth

and

international

wages

rise

and

ployment* ie

ac¬

the

state

em-

the fuller the state

of Employment the more
rapid the
increase in labor costs. If infla-

eco¬

nomic environment

quite different
from, or if not quite different, at tionary forces cannot be crested,
least far more simple and less unless 'the
policy of ' restricting
complicated than the environment credit is vigorously pursued until
in which

live today.

Throughout the

world,
more

was

30 years ago.

case

not,

it is

now,

and

engage

whole

government

3»46 throws

Employment Act of
considerable amount

light on this question. One lias
only to read the first section of
"law
law

the

xo
to

seem

^ilhon^for

conciuae
conclude

xnax
that

been

given

hundre!ds ?f wei#5* whi^h they

the

deserve ir\

„

iTnnn

beed made

°ver the course of the

with the

P®.seems to be in accord
that

view

continuous

five or six years to replace depreciation of the currency takes
Antiquated plants with the most a cruel toll of many groups withm
modern equipment and thereby to society; In this country great progcompensate, by the introduction
bea"
vI machinery for the increased

oi 1fbof. In many industries
n Is only through technological cessfulnot tte
improvements installed by very accumulated deterioiation of cursu^stantial t-ctpiidi ixivesimeiiL xnai rency create m due course a new
capital investment that

anv
any
variety of private or quasi-private
undertakings; to intervene in eco¬ agency which undertakes to arrest
an
upward movement 01 nrices uy
nomic activities; even to enter the an unward movement of prices bv ^creased labor costs have been at
j
t
tl
neutralized and
acmarket place as a buyer and seller producing
unemployment °n
a
cordingiy,
the price rise in
—perhaps the largest single buyer substantial scale, will be contia- tl
instances has been wholly
or
seller' the
dieting a policy which the Conworld
has
ever

^hat

This policy is not only gress solemnly declares to be a
fundamental noliev of the Federal
generally accepted, it is almost lunaamentai policy ot tne reaerai
universally demanded by the con¬ Government. And this, I suggest,
will be the policy of governments
stituencies of many countries. ;
It was not 30 years ago, as it js for a long time to come, no matter

not often enough

:^e PulP°se of elevat- any discussion of the inflation, of
£rroducJs \his Period; I advance them also
cricipfv? t7
^ to emphasize a general proposition.
diction?
n[y
? * » Cftea"
Calls for Concerted Attack
'■

PUbll\last

Employment

The Public

^ri1^P11t^upwafrds' whlle of the ; because they do
a^
same time another arm
the
to
have

uublic

V ;
Mandate

Full

appearance

^ cannot lie wholly denied that
society,~}ar£e capital investments .have

tolerate it'

of governments to use their
power

large-scale unernputs in its unpleasant

the

oi"inion

Then

■

purposes;

tragic

would

the policy

to spend to support certain groups
of prices; to tax for social reasons;
to lend public funds for private

ghost

ployment

civilized

bank deposits are much
the symbol of money than

the

was

the

01.

known.-

May

not this effect of techno-

abated

imDrovement

lmprovemenx

nunifwi

nuiiiiieci

restriction of credit which

4mnfMWrich0/i

group of impoverished people?^ It
^ against the possibility of this
consequence that what appear to
be contradictions in public policy
should be re-examined and, if
,

neeH

f!
limited
,

eliminated

that

ovder

enminaT:ea in oiaer xnax

may successfully
deterioration of currency

powers

whicb ig

rapid that the his-

1I10re

whether the Democratic Party or

makes unavailable the credi t wmch « more rapid tnat Uie his
which it .requires? It appears to
lc

than 20 years, the

the
ine

be true that the demand for

ernments

executive

and

now

it has

been

for

policy of gov¬
to encourage the intro¬
duction of what in practice though

Renublican Partv controls the
rtepuDiican^ai xy conxrois xne
the

the

legislative

povprnmpntal

arms

machinerv

be.1?Hthon,t'fs

trade

union

movement

was

not

then what it is today. The inter¬
national
monetary
system
was

SS1Fun1^mblolment
rcZwtit veEcoSv-

Fr
rree competitive economy
is tne
is the
title of the report. The conception

currencies

generally

freely

were

convertible and the money bf one

country could be transferred into
of another country On the
flash
of an eye in almost
any
hotel, bank, cashier's cage, or even
money

While

the

Federal

Reserve

vested with certain limited
power,
it is implicitly enjoined from in-

terfering with

certain

basic

pol-

icies.

It is interesting at this point
to take a detour for a moment to

retail

merchandising establish¬ indicate how rapidly we change
without awaiting the de¬ the meaning of the words we use.
cision of some distant janissariat Lord
Beveridge once defined subsitting behind a desk in some re¬ stantial unemployment as an

ment,

mote

treasury

central bank.

amount

excess

the

The internal credit structure of

employable force. This was not so
has experienced long ago—indeed, it was slightly
far-reaching changes—none more more than ten years ago. Yet a
every

country

far-reaching than we have ex¬
perienced here.
Thirty
years
ago
installment
credit

was

in its relative infancy,

volume
vuiume
cess

uxieiiir>iu,yiiitiiL ill
CAunemployment in exof 5% is today viewed with
UI

alarm.

Fanny May was non-existent, sav¬
ings and loan associations were

relatively

restriction

sion

unknown.

of credit

panies

was

The

exten¬

by insurance
effected quite

com¬

HhflXll budge^Tnd till

fax features of

credit

and

higher

interest rates may not be an effec-

dif¬ tive deterrent

the

inflationary

our

Internal Rev-

Ac^s

determine how, if at
^ax structure can be modi-

sup¬

infer from what I have

ci,«tfActinc#

ihaf

fhA

said that I am suggesting that the
powers of the Federal or state
finvprnmpntc

should

extended

that savings

be the contradictions of policy that
may

impede, if they do not frus-

trate, effectiveness of control
credit

over

anti-inflationary device- I do mean to suegest, however, that in view of the complias an

satisfy the appetite for capital investment? At this point it would

cated nature of societv as it is
today, and the apparently contradictory policies which have been
initiated, formulated and put into

be fair to ask whether there is not

effect, the time has

can

actually

be accumulated rapidly enough to

quality

well as a quantity of
money.
To put the matter in its
most simple form—does $10,000 in
a

the hand of

one

person, as a gen-

cral rule, play the same economic

role in society as $10,000 distributed among 10,000 people?
The

come

sort of

concerted attack upon the

evils of inflation as it was m the
Employment Act of 1946 to try to
establish a unified assault
evils of unemployment,

Can

restriction

spending

and

(Soecial to The Financial Chronicle)

BEVERLY HILLS,
Tin-

tively check the inflationary forces
long as agencies of the govern-

Calif.—RobfTTiiVi+a qrp

]

ert Blltz and
now

credit effec-

on the

Two Wi*h Daniel Reeves

U1D-

tinction between
investing.

when it

is as important to establish some

Quantity is the same—is the quality likewise identical? It may be
justified to put the question in this
vcij
Iiarxcu
ivim
ID
very naked form to draw the disUiaw
nic

Our

experience of the last 15
months,
perhaps
too
limited,
rather suggests that a deliberate

au-

tbor:+:es examine the exnenditure

fied

P°se

faithless governmenti should be an effort
over a broader front m ^tended
these cir"
~mPen(sat« f?.r what ^Ppeor to

to restlict credit- Under
cumstances should not public

enue

I would not have anyone

capi-

j PQiiinnient and

xai cqujpincin dim canital expenq
capiiai exnendlture ls greater than the volume

l
4-u
r*
xt' of savings can satisfy Accordingly
necessarily in theory are in¬ The report of the Senate Commit- Jr
® ""J:■ J ^1
flexible, unyielding factors into tee, Sept. 18, 1945 silhouettes this:
,w?uld be
the general economic system. The conclusion even more sharnlv— to their public duty were they not

not

abroad,
practically
all
of
the
major and seemingly protracted firmly attached to gold and, al¬ of full or maximum emp oyment
economic "fluctuations in the level though economic nationalism had is woven into the fabric of the
of economic
activity were pro¬ manifested itself in a host of dif¬ legislation and the legislative fnSduced by the wartime inflations ferent forms of national subsidies, toiy of the law.
and the postwar liauidations. And
it might not be without relevance

of the

intol-

can

most 50%

an.

dinbmployment,

quered, when at the

told

July 1

|bf

forces

Steel

But

has

For,
despite its painful familiarity,, in¬
flation is, from
the economist's

feet

to be

tion

be measured.

can

Ire-examination of the complicating if not contradictory policies
which governments pursue?
v

presents

sion

I shall not attempt to.de¬
economic
phenomenon
which has, on the whole been the
this

steel.

contradictions by putting

At the moment, the
of a
further rise

things.

i-'Jjj'rf

appropriate that there should

are

creating

burden

inflationary

the finan-

without

erabl&

whole and to the pub¬

lic authorities,

expect

Is it possible that
by restricting

.credit

increase in the price of ities, of which there are limited
is such a
ubiquitous supplies? Is there not a quality of
":L
commodity that touches so many expenditure as well as a
quantity
Against this brief and superficial
industrial,,and even agricultural of expenditure? Possibly this is
survey of the penetrating changes
operations, that a further rise in a phenomenon of post-World War
that have taken.'place, is it .-not the
price of steel may have an „ef- 11 which is made unavoidable
by

prospect

inflation

as a

the

once more that

■

-:i..

ntal Co:nttaaictory
Policies
..

be¬

never

"Times,"
.during the bal- cial page,; May 13,

lifetime;

en¬

can
begin to understand—I con¬
fess that X, have not even reached
this stage myself—the perplexing

fine

"In

elastic

of my

ance

fore contemplated in times which
were not
periods of .war, that we

deflation

forms*

mences

through

been'passing and

Still

different market.

make

understanding the

environment
have

which

dilemma

The Age of Inflation

Certainly
^ d

than at the historic
rate, has been
with us for almost 17
years with
but

the

vironment " characterized
by
a
larger volume of government ex¬
of penditure and the insinuation of
tendency governments into the economies

devastating

ttioderh

for

have not known peace.

until, the world was
{jluftimeted into the most violent
years

<JA':

into the economic system to subsidize various activities or to guarantee quasi-private obligations?

today.

was

thef-e

}!,

associated with Daniel Reeve?

Co., 398 South Beverly Drive,

members

the

New

York

and

ment continue to do
over

the

course

they have

of the last 12 years

more—pump

money

credit

Pacjfic

Coast

Stock

Exchanges,

«7,"+v.

were
& Co.

t nr*an

The Commercial and Financial Chronicle...

Continued from

information, desirable regulations

and the higher
analytical work.

quality

(3) The stock market is a place
profits are possible.

where large
To

points,

these

illustrate

I'm

going to tell you a story. It is not
a
real one.
It is one I made up.
But

taken

based

actual figures

stock market records

from

41 years. It is both
ridiculous and impossible because
it assumes a perfect score in judg¬
over

of older

tury.

the past

vaccine.

cal discoveries have added

industry

ate

that was going to appreci¬
the most in value, his $1,000

interested

selection

his

the

to our lives

years

years.

are

lems faster and

were

ings.

Several
years
of
rising
earnings
had
made
people so enthusiastic that they

data
speed

will

chemical

cheaper.

nearly

There

selection

The

the

fundamentals.

$1,000

The

other

they

to be worth (hold your than our grandparents were ank nical, or the study of price be¬
$26,000,000,000. This gave newspapers today are filled with havior and volume. If someone is
of
the
advances
him a purchasing power of $9,- articles
being buying or selling a stock it is apt
620,000,000 instead of the $1,000 he made in fusion power, the earth to show ^up in the price and in
had in 1915. (The above calcula¬ satellite and the intercontinental the volume of trading in the issue.
tions are based on the study "A missile. We know from past ex¬ Ic is difficult to accumulate or dis¬
Thirty
Year
Bull
Market" by perience that science can revolu¬ tribute large quantities of securi¬
Hugh Long and Company which tionize our lives within a short ties without having it show up
covered the period from 1915 to period
of
time.
We
are
also in such figures. Often a stock will
1945.
We have brought it up to conscious of the fact that there is show better than average action

stocks

these

$9,100

was

into consideration the

better, and cheaper products that
will improve our health, homes,

living he had clothing, foods, defenses and means
of transportation. Gone is the fear
a purchasing power that was over
three and a third times as large that some day the world will be
as
he would have had with his starved for power, thanks to the
change in the cost of

original $1,000 in 1915.
The third brother was a

such things

were

harder

that

decided

worker.

there

business cy¬

cles, that there were bull and bear
trends in the stock market, and

benefit from
them.
He did the impossible. He
sold
at the peak of every bull
market, kept his money in cash
during the bear markets and re¬
invested his original capital and

that he would try to

found

$1,000 had grown, in the nine bull
markets since 1915, to a value of

$1,910,000

after

which,

allowing

decline in the value

for the 63%

energy

machines,

business

petro¬

drugs,

chemicals, plastics, metallurgkrals,
ceramics, rare earths, etc. These
should be the most rapidly ex¬

scientific

You

are

men

enviable

position to judge the
future developments in the amaz¬
ing world of tomorrow and should

him a purchas¬ share in the capital gains oppor¬
tunities that you are helping to
ing power in 1956 of $707,000 as
create. There has been no period
compared with only $1,000 in 1915.
He realized that some in¬

harder.

dustries

make

others and

than

greater progress
he believed that

he would not have to worry

business

cycles

market trends

invest
that

the

bull and

about

bear

if he could always

particular industry

benefiting the most from
economic
conditions of the

was

day.

always

stayed invested

original in¬
vestment in automobile shares in
but

shifted

1915

into

from

the

his

steels in

to the automobiles

1916, back

in 1917, to the

history that is

the

present

perhaps

has

that

and

the

made

being made in
Today
the
not geo¬

scientific,

economists

this

scientific
even

dustrial
back

down

sharply.

By doing the im¬

possible and always being correct

likely to refer

are
a

technological

revolution

similar

and

important than the in¬

The

preciated 44% during the period
when
the general market went

scientific

States.

are

England

century.

which ap¬

graphic, and when the history of
this period is written the historians

making 24 shifts of his funds
in the 41-year period. Even in the
severe bear market from
1929 to
1932 he made money because he
invested in gold shares

dynamic

there
is
country in the world

United

frontiers

one

that

progress

the

department stores in 1919 and so
on,

other,

mates

entire

these

scientific

that

started

the

18th

fields

hand

are

fuels,

pass

those

100.000
years

years

should

the
and

% "

see

the

sur¬

even

greater

the

Cincinnati Milling
IntT Business Machines

; •

will

tical

uses

' /V

from the

this

does

affect huf

could
year

contribution of earnings

show

higher earnings this
Union Carbide, Dupont,

are

mid,

Air

Reduction
Particular

Powder.

placed
from

and

Atlas

emphasis

those that will benefit

the

fuels

demand

for

guided

chemical

for

mis

i 1

e s, for
titanium, flourine, polyurethane,
acetylene and boron. / - r;
s

Pertinent Factors in the

n,-;:

Perhaps
in

the many questions
investment research

have to ask when

men

•

of
as

•

interested,^

will be

you

few

that

Appraisal

Company

analyze

and its securities. V

company

Management—One

important

of the

factors.

most

want

an
aggressive and
intelligent plan of growth through *
carefully thought
out
research,
marketing,
personnel,
financial
and labor policies. Very important
is the question of whether younger
men are
being trained to fill the
important executive positions. A
test of management' is its ability
to show a good ratio of profits to
sales and a satisfactory return on

fol¬

the

invested. Its reputa¬
both competitors and
customers is important. It should
maintain a strong financial condi¬
tion and satisfactory relations
capital

tion among

"
">;

v; '

with bankers

capital
sion

can

should

faith

stockholders

necessary-.The ^directors
capable of helping the
indicate their

should

the

by *being

company

•

owners-of the stock. The.jnanage-

should

business
of

help to iron out the

cycle. The great

research

tends

larger companies that
the

leisure

time

sary

the

can

greater

the

provide

effort

for

needs

our

plants
when
are

equipment

and

products

new

developed.

The

created

demand

for

scientifically trained people is in¬
creased

and

the

demand

for

un¬

skilled labor decreases. The world
is

smaller

speed
tion.
ness

The

because

travel

and

lightness

the

and compact¬

of atomic fuels will

development of
power

greater

communica¬
mean

the

of the world
costs
have
been

areas

machinery

and

equipment from
are prepared to

Research—Of

growing

import¬

Cross Co.*

ance—We like to know what per¬

Foote

processes

Consolidated Electrodynamics

Corning Glass

neces¬

lessened. A larger demand for new,

profits-. Any contemplated changes
in management that would alter
the outlook are important.

v-.• - f

Ampex*■

Beckman Instruments
'>■'

finance

should create

cost.

favor

•"'

expense

cent

Minerals*

dollar

sales

the

Haloid^

cated to research.

Photon*

not

only

cant

way

allo¬

And, of course,

quantity but the
Reynolds Metals
quality of this work is important.
U. S. Borax*
Has the research program devel¬
*Traded Over-the-Counter.
oped new products? What per¬
It would take a brave man to centage of sales come from prod¬
ucts or processes developed by the
invade the field in which you are
department? Have production
experts and to give you advice
costs been reduced in any signifi¬
on
your

the

own

there

knew,

industry.

are

chemical

many

business

and

firm

a
chemical
Certainly the
rubber and the oil companies are
partly in your business. But, per¬
haps, you would like to know how
the
chemical
analysts
in
Wall
Street look at your own industry.
company

primarily
not.

chemical

the countries that

The

supply it. The conquest of diseases
will change the age patterns so

rises

from

lows.

Last

stocks

their
year

1949

they

had
and

had

the

you

phases

sometimes difficult to tell whether
a

officers end

.W&y

and

be raised when expan¬

economy?

This

if it has

know

:Scott -Paper v
;:"/>•/ ••
It develops new
ment- should be profit conscious
Union .Carbide ...
' > X
industries to give -our economy _.*r *
and carefully study the potential
greater diversification and less r Among- the newer
companies markets to make sure the product
dependence on a few major ones. that have promise are:
will meet demand
and produce
y '

eral

•

-Radio: Cerpv--444

gen¬

Others

year.

special demand

Diamond Alkali, American Cyana-

Minnesota Mining

Smoetlringthe .Business Cycie^
How

from

by new plants. Among those that

IntT Nickel

/." Parke Davis «
Pfizer. --'

companies this
benefit

for certain types of chemicals and

Minneapolis Honeywell

speed-in making prac¬ ^
of technical discoveries. i

efficiently, .«and
higher
will adversely affect

costs

some

in¬

new

operate

Babcock & Wilcox

growth of atomic

rare

labor

Aluminium Ltd.

and greater

where

preceding

but

and

cutting, the cost of building new
plants and of getting them to

benefit
There
could be

that

list

this

economy.

products

continue. Competition, some price

the others.
Favorable is the fact that indus-." lowing dozen are representative:

applications of high. This will particularly bene¬
scientific knowledge stagger the fit the underdeveloped sections of
imagination. The nature and speed the world. The improved stand¬
of changes have no precedent in ards of living in such areas will
human
history.
Scientific
dis¬ in turn create a larger demand for
of the last 50 years

general

drugs, new chemical
metals, plastics and
many
other
rapidly
expanding
fields. So a high investment re¬
gard for chemicals is likely to
energy,

should

issues

many

included

hand with progress in

with

to produce many new

you

improved

benefit from the

from technological research.

one

peacetime

coveries

that

companies

industries.

Usually the advances in

growth

between how
a rate of

year

our

expect
and

also be interested
following well established

the

for

the

that it will expand at a

are

of 7%

;

r; j,

conservative

industry. Esti¬

1960 compared

and

Gamble

Company

are

you

lack of faith

the future of the

rate

vestor you may

The wise investor has
unusual
opportunities
in
such try, the government, and educa¬
growth industries as the chemi¬ tional institutions are cooperating
cals, electronics, automation, in the solution of many .scientific"
guided missiles, chemical fuels, problems and projects;* There is
atomic and solar energy, electronic an accelerated
pace of research
practical.

of the dollar, gave

The fourth brother worked even

Texas

industries. We must
be alert to coming changes which
can
help or retard companies or

market.

1956

thermonuclear

make

bottom of every
panding sections of our economy
the .summer of
over the
next decade.
that his original

his profits at the
bear

development of
nuclear energy
and to the progress being made

will have the atomic age. New

discoveries have helped some, but
hurt

value

realistic levels. Surely there

before a split or an increase in $
by making the calculations
market and there is no from 1945 to 1956.)
tific
and
human
progress.
Our 'dividend is voted. Some people
human
being who ever has, or
well-run corporations
know too know the good news before it is
Perhaps these sums will not
who ever will, achieve a perfect
seem
as
ridiculous if we realize that they must keep up with this made public. So if you have the
record in the stock market. That
that if a man starts with $1,000 progress or they will be like the time it is wise to make a chart of
is fortunate because in time the
dinosaurs
that
dominated
the the price and volume character¬
and doubles his money ten times
perfect man would accumulate too
earth 60 million years ago. They istics of the stocks you are inter¬
it amounts to over $1,000,000.
much money. The figures do not
could
not adjust
themselves to ested in.
Impossible and ridiculous as the
take into consideration taxes, com¬
changing conditions so they van¬
For people
who do not have
missions, or dividends.
But the story is, and inexact as the fig¬ ished from the earth.
the time or inclination to devote
ures
are
because taxes, commis¬
story is of use in illustrating not
A great deal of the time and
to
studies of
selection there
is
sions and dividends are not in¬
only tl^e inflation protection and
effort in Wall Street is being de¬ much to be said for the purchase
the profit opportunities but also cluded, it does illustrate several
voted
to the
study of scientific of stocks of investment companies.
the
different approaches to in¬ important things. First is the in¬
let
flation protection that has been advances. Today we have to ex¬ You
professional investment
vesting.
our
horizons and our managers decide which industries
obtained in the stock market over pand
Divergent Investing Media
the longer term.
Second is the research staffs to include men who and companies have the most
understand
what
scientific
de- favorable possibilities. If in addi¬
Back in 1915 a father left $1,000 fact that perfection in stock mar¬
to each of his four sons to invest. ket transactions is not necessary v^opments will do to industries, tion you see the Monthly Invest¬
tdi individual companies, and to ment Plan or any
Last summer these four sons met to obtain substantial profits. Third
Dollar Cost
our
economy as a whole. In our Averaging
to compare their results. The first is that the rewards of investing
Plan, which will be
one
had been very conservative. are directly related to the effort own office we have consultants on discussed later, all you have to
He had invested his $1,000 in high put into the job.
The ability to atomic energy and on ethical worry about is where to get the
grade corporate bonds in 1915 and determine the effects of the ups drugs. We have to have specialists money to pay for the periodic
the purchases.
had held them throughout the 41 and downs of the business cycle who cover developments in
years.
In that time the value of on investments is important but chemical and other scientific re¬
Diversification
of
holding
is
search industries. Investors know
his bonds had increased to $1,220. the ability to select the right in¬
important in this ever changing
But, in the meantime, the value dustries is even more profitable. they cannot sit back and weigli scientific world. And it can- be
of the dollar had gone down so Perhaps such figures explain why investment possibilities from the obtained
simply. without spread¬
his $1,220 would buy only 45% of the market has become more se¬ past records. They have to have
ing your interests or studies over
the items that go to make up the lective and why there has been imagination
to judge the rapid too
large a list of securities. By
cost of living that he could have more rotation of industry group progress that is being made; "They
buying
only
seven • issues
you
bought with his original $1,000 leadership and strength recently realize that the world changed would get representation in at
with the invention of the steahi
back in 1915.
than there has been in the past.
least 25 industries:
engine which
made
mechanical
The
second
brother was also
Allied Chemical & Dye
Selection of Securities
power practical and led to the in¬
lazy but he had shown better
du Pont
T ;
•
The
Amazing
World
of To¬ dustrial revolution in the 18th
judgment thaii the first one by in¬
General Electric
morrow is shaping up in our re¬
century. The coming of the com-,
vesting his $1,000 in the stocks
Goodrich
^
■; \1
bustion
motor
and
electricity
making up the Dow Jones Indus¬ search laboratories of today. From
Pittsburgh Plate: Glass
broadened
the
gains. Tomorrow
trial Average. By last summer the them is coming a steady of new,
and taking

in the general market. As
result, the chemicals declined to

ing the

Procter and

were

power

close relationship between scien¬

of thfe lead¬

some

these chemicals than
for the same Earning

power

the

is tech¬

hats)

a year

ing companies. They were paying
70% to 110% more to buy earning

study

approaches to the

securities.

important

progress

two

are

Approaches

had grown

date

paying $25,000 to S30,000 to
annual
earning
power-of

were

buy
Basic

Two

in the past
much more

scientific

computers

machines

corrections.
The
declines
largely due to lower earn¬

good

larger percentage

research and solve business prob¬

of the Salk
People realize that medi¬

group

electronic

is the ready acceptance

Age

people in the world. New

processing

by most of the world. In contrast

In This Scientific
of trading,

there will

than the past half cen¬
We are quicker to take
advantage of scientific discoveries
too. It took 60 years before the
smallpox
vaccine was accepted

progress

first page

Stock Market Investing

Thursday, May 23, 1957

(2422)

sharp
1942
some

result of research?

Has research resulted in good
ent

protection

how

which

will

Financial
balance

gress

Position

sheet

statements
a

competi¬

retard

tion?

pat¬

valuable know-

and

—

Both

the

income

give valuable clues as

company's position and pro¬
and as to the

the

management's

know

that

efficiency of
pol'"4 s.
ther.

We
ade-

(

Volume

185

•» f -

Number

^ •
5640

.
.

•<

»
^
•
*
*
■ •
^ ''
'
The Commercial and Financial Chronicle

i t

(2423)
/' -t
because the
•;

working capital and that
the capitalization is conservative
without too large a percentage of

imperfect record

debt.

portunities for profit are so large
that even partly correct judgment
should produce adequate results.

,What is the trend of profits

op¬

this

ratio

similar

compare

companies

with those
of

industry? Are the unit,
the

dpHar,

sales

well

The

general

increasing at

Reporter

Present

been

sensible

very

and

hesitating

from its 1949 low and

be-done?. Is the

strong

its September 1953 level. Investors

to promote its

have not been lax in recognizing
the uptrend of - our economy or.

company

enough financially

Are depreciation poli¬

products?

reacting

over

460%

it has done for
It had advanced

year.

from

its

1942

low, '225%
105% from

What is the effect the rise in earnings and dividends
since 1942.. As a result we pay
amortization
on
current and future earnings?
% twice as much today to buy earn¬
Capital Expenditures —A good ing power and we get about half
the yield that we got in 1949. '
test, as
to
whether management
cies adequate?
of

.accelerated

policies in this respect have been
wise is
vested

the

■

capital.

expansion

increase,

in¬

has
or

decrease, this rate of

least not

return

should

wise

been

rate

return when the

plants and equip¬
What
the future plans for these ex¬

ment are in working order.
are

penditures? How long will it take
facilities

before

the

pected

to contribute to earnings?

new

are

ex¬

These, of course, are just a few
the many questions that we

must consider in our appraisal work.

Actually, one company that stud¬
ies 'management has a list of 300

questions that it wants answered
before making its decision. The
important thing to remember is
while the record

that

of the past

the security analyst
greater stress on what
is likely to happen in the future.
We are
especially interested in
is

helpful,

must place

projections of sales, earnings and
dividends.

Timing of Security Purchases—

Question

The

how

handle

individual

you

this

question

depends on the amount of time
have to study the market and
your sources of information. Many
of you do not have much time to
devote to this but there is a plan
you

purchasing that is simple and
that should be workable for you.
This is the interesting program
of

-systematic purchases called
Cost Averaging which
works well if one has a schedule
of

Dollar

Fortunately, the market has not.
had

speculative ad¬
vance in the marginal type stocks
which has been the signal of the
careless,

trading

and if it

some year

occurs

smart

in the future

I hope we will all

enough

take

some

profits.
Business activity in 1957 is still

although

good,

making

not

the progress that it did in recent

This is largely due to the

years.

decline
auto

construction and

home

sales, and to the reluctance to
Sensitive

expand inventories.
indices

business

which

generally
move
up or down in advance of
the general business cycle are not

healthy at the present time.
Capital expenditures for new

plants

and

equipment are still
high, but the new appropriations
have not been as large as they
were
a
year ago so the backlog
has

declined.

the

attempt to
inflation, the Federal Reserve

halt

six

rate

the

has increased

Board

times

the

discount

two

past

and has not yet seen fit to
ease money conditions.
The market has had profitable

years

trading moves during the past 15
months, or since President Eisen¬
it has
checked the sharp rate of advance
of the preceding two years, which

investing

is selling.
well in a
country like this which has an
expanding economy and mud in¬
flation.
Standard & Poor s has

less of where the market

especially

works

the

summarized

resu^ of a pro¬

of investing

gram

28 years.

tal of

$1,000 each July

1929 to date, or for a to¬

1st from

During that time

would have put in $28,000 in
cash.
Had you also reinvested all
dividends received each year-the
total value of the fund would have
you

$206,440 by last July and the
income received from divi¬

been

total

last year

dends

would have been

$8,000. The program worked
in spite of the fact that it
started in the high year of 1929
Those
who
can
devote more
over

well

time

study

the

much

but

market

of the

find it not oniy profitable

should

engineer or

scien¬

get

the same result each time.
security business we have
with very dirty test tube.,
cannot isolate the effect of

to get

In the

and

single influences. There are hun¬
of factors affecting stock

dreds

prices

there are millions of
who may come to dif¬
conclusions based on the

and

reviewing the situa¬
Labor

around

Day. If

conditions are still
decline of the market to

money

tight,

around

the

its

level

400-420

industrial

Jones

Dow

would be

Federal

will

Reserve

reverse

policies quickly if the
inflationary threat subsides and if
unemployment
increases.
As
a
guess,
I should say that there
would
be good
support for the

particular information they
using
There is also a great deal
of emotion which is difficult to
measure
as
an
influence. Fore
casting is not an exact science and
never
can be.
If any one knew
the correct answers

accumulate

he would soon

all the money

in the

market

the

business

the

400-420

activity

area

even

and
there will
opportunity to sell stocks in

that in

some

750-800

declines

future year

area.

That is why my earlier

to get cash in order to
provide funds for current needs.
attrition in the
refunding of the

cash-ins
small

Bradeson

and

Webber,
South

Jackson

Paine,

Curtis,

626

Spring Street.

Joins Shearson, Hammill
(Special to The Financial Chronicle)

LOS

ANGELES,

occasion

The

heavy

responsible in

were

Hammill

Co.,

Treasury into this

Black,
has

Kolb

been

and

formed

Cal.—Baron,

with

this

much

way

the

needed

new

money

obtained.

could

have

been

New Tax Bills Well Received

253 North Canon Drive to engage
in
are

securities
Hal

business.

Baron,
Litchtenberg,

Officers

President;

been

appointed

re¬

time.

some

payable by

Treasury tax and loan accounts
new
borrowing is the second time

the

crediting the

commercial

banks.

This

Treasury has offered securi¬

ties for cash this spring, about
$3,400,000,000
last March. It is believed that this cash

Government

through the present

billion of

having been obtained
operation will carry the
fiscal year, but some $3 to $4

new money may have to be borrowed for
July needs and
tnis may be offered
during the latter part of next month.

Treasury's Decision

announcement by the
Treasury that its plans to refund
maturing Series F and G Savings Bonds with a long-term

marketable bond had been abandoned was a
very important piece
of news as far as the
money market was concerned. To be
sure, a

new
money raising venture by the Treasury was
expected, even
though it came sooner than many had anticipated. On the other
hand, the decision by the Government to make no offer to the

F and G Savings Bond owners
was not entirely
expected. It was
indicated that many money market
specialists believed that a longterm bond exchange would be
made, even though the conversions
into a new obligation
might not be very large.

publicly

change

advisable to give up the idea of
making an
offer to the holders of the maturing F

ex¬

ajnd G Savings Bonds.

There

have

been

reports

many

that

around

issue would have been
very much smaller than it
if it were not for the
heavy takings by

the

priced

The

100%

debentures

deemed

and

ac¬

re¬

may

prices

scaled

from

106% to 101. They are convertible
into

common

stock

$5.75

per

share to May 1, 1960; at $6 there¬
after until May 1, 1962; at $6.25
thereafter until May 1, 1964; and
at $6.50 thereafter and until ma¬

turity.
The company will use the pro¬
to reduce bank loans, for

ceeds

capital

and

acquire,

additional equipment and produc¬
tion facilities/
i-lW

Supercrete Ltd/ is

Canada,

corporation

Manitoba,

with

head¬

quarters in St. Boniface, a suburb
of

Winnipeg.
Incorporated
in
1946, the company manufactures
concrete building blocks, concrete
pipe, pre-cast and pre-stressed
concreted building products,
-

ready-mix

and

concrete,

light¬

weight aggregate products.

Walston Adds
(Special to The Financial Chronicle)

LOS
Da

ANGELES,

Vinci
of

South

offered

May 21 $1,150,000 of

1967,

staff

Investors Not Attracted to 3%% Note Issue

McDowell

crued interest.

Evidently, the Treasury decided after the complete figures on
refunding were available, especially those for the 3%%
was

which

group

Supercrete Ltd. 6% convertible
subordinated debentures, due May

the recent

note, that it

Blosser

working

"F" and "G" Bonds Welcome

The

the

Straus,

Evidently, the Treasury could not or did not choose to wait
but decided to raise the new
money all at one time. The 119-day
tax anticipation bills were well
received not only because
they
met the needs of those who wanted
them for Sept. 15th income tax
purposes, but also because they were

has

Calif.—Elena
added

been

Walston

the

Co., Inc., 550;

Spring Street.

note

is, $647,000,000,

Treasury Trust accounts.
This would appear to indicate that the
public did not go very well
for the 1962 note with the
3%% rate. This most likely suggested
to officials that the
Treasury would have to make a

Specialists in

long-term

bond offered at this time
competitive with corporates and tax-free
bonds. This would have meant a
coupon rate much

which

ones

were

being guessed at by not

The Treasury admitted that the
bonds at attractive

ment

U. S. GOVERNMENT

few money market

receptive to

large offerings of non-Govern¬

yields would not make investors too
long-term Treasury obligation at this time. Also,
Savings Bonds should desire to make an

federal agency

if holders of the F and G

exchange into other Government bonds, there is a very
ample
supply of marketable issues that are available, some at sizable
discounts, even though the yields are not as good as those on the
corporate and tax-exempt obligations.

Joins Schirmer, Atherton
(Special to The Financial Chronicle)

Securities

Schirmer, Atherton & Co., 50
Congress Street, members of the
New

York and

Boston

Stock Ex¬

Weinress

Vice-President;

Admit

CHICAGO, 111. — Weinress &
Co., 231 South La Salle Street,
members

Exchange,
Morton

the

Midwest

May

Weinress

Stock

admitted
to

limited

Aubrey G. Lanston

partnership.

changes.

Form Univ. Investments
WASHINGTON, D. C.—Lorayne

INCORPORATED

(Special to The Financial Chronicle)

BEVERLY HILLS, Calif.
Stolee has become

C. Geer is engaging in a securities

Chester

business from offices at 4545 Con¬

iated

viously with California Investors.

vestments.

the

Avenue, Northwest, under

firm

pany,
was

name

Universal

In¬

8c Co.

Joins E. F. Hutton

Inc.,

offices

has

and investment manager.
Both have been with the firm for

un¬

past, and

with

Coast

Lawrence,

Chester
search

headed

—

Chester

new

BOSTON, Mass.
William B.
Burford, Jr. has become affiliated

Baron, Black, Kolb and
BEVERLY HILLS,

Paul

important amount of opinion around that the
weekly offering of
Treasury bills would be increased, as has been true in the

520

South Grand Avenue.

Lawrence Formed

Brown

Supercrele Debentures
Offered by Bankers

shouldn't be disappointed over an

the

Building, members of the
Detroit Stock Exchange. Faul P.

raising operation.

necticut

ridiculous.

bonds,

rush

William

Calif.—Stuart

Mason has become associated with

Shearson,

Co.,

and

G. Morgan

Ray

sales

It had been believed in
many quarters of the money market
that the Treasury would have to
raise some cash before the end
of the present fiscal
year.
However, it had not been generally
expected that it would be done so
fast, and there was not

Solly Black Secretary; and Harry
Kolb, Treasurer.
All were pre¬

was

sudden

followers.

ANGELES, Calif.—Harley

have become affiliated with

named

Buhl

May 15th, l%s, along with the

Government savings

for the

way

money

(Special to The Financial Chronicle)

LOS

William P.

—

been

raising

money

The Treasury did not lose much time after
the recent refund¬
ing operation to enter the money market
again, on this

One

story

new

Treasury Makes Quick Appeal to Market

the

Webber

has

manager of Baker, Simonds &

slowed somewhat by

higher than

Two With Paine,

country.

was

offering of the tax-anticipation bills for

purposes.
Nonetheless, because of the caution and
uncertainty
which continues to
overhang the money market, the demand for
the most liquid
Treasury issues is expected to remain very sizable.

the

average

It is likely that

possible.

investors
ferent

The short-term Government market

the

money

to deal
and

for

comes

by that time business is declining

exciting
than
It is perhaps dif¬

used to the idea that
two and two do not always make
four in the market.
If you mix
two chemicals together you expec.
tist

tion

poker or bridge.
ficult for

time

ter

Brown

out.

if continued would have made the

DETROIT, Mich.

JR.

holders of the maturing F and G
Savings Bonds took some of the
pressure away from the capital market. Prices of
the intermediate
and longer-term Goveriiment
bonds were quoted
up and then run
down again without too much
being gained because these obliga¬
tions are not yet
competitive with new offerings of corporate and
tax-exempt bonds. This news, however, did have a
favorable
effect on some of the non-Government
bonds, because certain of
these syndicate
offerings which were not doing too well moved

hower's heart attack. In that time
it has advanced only 3%

CHIPPENDALE,

Treasury's recent announcement that it was
indefinitely
postponing its plan to make an offer of marketable bonds
to the

too

certain amount of market vulnerable.
Usually the
money
at regular time intervals market does not make
up its mind
and keeps up the program regard¬
during the summer months. A bet¬
of

By JOHN T.

Baker, Simonds Co.

The

end of other bull markets that we

have been able to study. It is pos¬
sible that we will have that kind
of

Governments

Market

opinion of the market
at the present time is that it has
own

satisfactory rate? Does the com¬
pany have enough cash resources
to take care of maturing obliga¬
tions? Will new financing have to

Brown Sales Mgr. of

Our

relation to sales and how does

:.L..

quate

with

Hutton

—

♦

affil¬

Co.

and

gerald & Co., Inc.

NEW YORK

Com¬

463 North Rodeo Drive. He
formerly
with
Daniel
D.

Weston

20 BROAD STREET

Cantor, Fitz¬

☆

CHICAGO

☆

•

☆

BOSTON

The Commercial and
40

Financial Chronicle

...

Thursday, May 23, 1957

(2424)

,v'

Securities Salesman's Corner

the music if they have a bad
ation

DUTTON

by any other form of
incompetence. Try and
catch your mistakes as soon as you
can—but also remember although
or

everybody
is

There

along for several years and that
don't show much signs of immedi¬

formula for

tested

investment account
ate recovery, than to let them stay
which goes, "Sell your weak stocks
in the account.
Try and uncover
in which you have losses and hold
a
good "switch" and go to your
your strong stocks."
Many ama¬ customer. Tell him frankly that
teur investors do just the opposite.
you think it's time to either fish
They take short profits on good
or
cut bait.
The sooner you get
stocks that are acting well and
that lemon out of his account and
they hang onto weak ones that
put the money into something that
they hope someday will recover.
has some signs of life in it the
Their thinking is perfectly natural
better he will feel about his in¬
but unsound. They say, "I don't
vestments and also about continu¬
want to take the loss." They al¬
ing his business relationship with
ready have it and they may have
you.
Otherwise, every time he
a bigger one if they hold on to the
picks up the paper and sees that
j?ick ones in the hope that somebooboo you made, he'll think of
<fav there may be a recovery. Yet
you, and that, my friends, isn't the
they feel that if they don't sell at
fi loss, they haven't taken the loss.
The loss is there nevertheless..
Continued from page 2
Over the years you are going
to make some recommendations to
your clients that will turn out not
too happily.
This is also a very
managing

them it's the
nips them in

makes

smart salesman who

them and sometimes buy

more;

When stocks go up they hold them
and not

often buy more;

But when stocks sit and sit and

sit;

they

and

don't move

whpn

u°Qnrf»pt!sfiil

\chip

and

nroner

relation-

with your customers

human weaknesses.

hold

must

stock

it will recover,

customer

think

you

then give him the

facts and resell it
can.

If
and

No customer

often

take

can

neglect.

has been developed that should be

Not All Customers Will Agree

periodic reviews,

When I talk of

advisor, I am speaking
customer-advisor relation-

ideal

i?hip. These cases are m the minority as far as the average salesroan
is concerned.
Some people

only occasion-

will trade with you

ally,

wont

some

tell

even

their age, let alone
the securities they

you

inform you o±

Others
just want to make a turn. Some
buy advisory services and follow
the tips. They call you and give
you orders and since you are in
business

own

orders

execute

you

coming

the near

appearto becapable of commcr-

ciai production and the
Southdown Sand" series found at about
14,000 feet show promise of being

quite^ deep._ Tidew^r has an ap-

pliration pending before the Federal Power Commission foi approval of a new 20 year contract
with United Gas Corp. at a substantiallv higher price than that
called for by the three-year contract made in 1953. The Hollywood Field is most promising and

it appears that future income from
tors
this field alone could double the
be temperamentally suited to such present Southdown royalties,
aren't

going to try to make invesout of them. They wouldn't

Next door

role.
I have

have

account with whom

one

business

done

down's
nected

10% to 15% profit, she sells.

has

She keeps those in which she

selling the good stocks,
she has missed long-term profits

losses. By

that

some

her

double

doesn't

cases

purchase

seem

«he sells.

have

been

She

price.

to mind this.

Cerent stocks have

wells

gas

If she

She owns about 20 stocks.
bas

As dif-

market move,

At the end

of the year

are

producing,on South-

All

property.
to

Arkansas

are conGas pipeline,

United

Fuel

with

Oil

one-

fourth royalty lease of 2,552 acres

John W. Mecom

and

forty-eighth
are

lease

seven

of 3,373 acres
Tidewater

the lessees although

and Mecom jointly completed one
well

and

are

presently

drilling

another about one-half mile away

round

out

the

which

companies

hoJd ether leases from-Southdown.

Speaking,

Lanrt Values
accelerated

of tho

DacG

in_

Unless
ways are

dustriaiization of southern Louisithe

and

ana

valuG

recognitlon

land

adiaf.Gnf

water £acilities
.imn1

naturG

Bat°n

dGGn

reduced

nvaji.,hi0

fhic

iand

th'e

between New Orleans and

S?n 2
in ownina ha

one-half

havJe

the

ot
tn

excess

miles

of tour

Mississippi

frontaee which has substan

in value.

tially appreciated
The

rapid

growth

has added considerable value to
the company's extensive prop¬
erty in this area while possibili¬
ties

cial

residential

development

and

also

Southdown's acreage
north of Thibodaux.
Similar potentials
to Avoca, Inc.,

are

commer¬

exist

slightly
available

company

which

17,000 acres of land slightly
south of thriving Morgan City.
Southdown owns 6.3% of Avoca's

owns

ing

(in 000's)

stocks, and

some

sold

variety

Royalties

After

per

Sugar, etc.

& Leases

Income Taxes

SI.09

an every¬

1957

$1,316

$1,055

$1,274

investor
still do¬

1956

1,221

761

1.042

0.89

you are

1955

858

769

869

0.74

1954

1,082

732

781

0.67

THE

1953

1,234

550

674

0.58

1952

746

506

594

0.51

with

ONE

LIST

WEED

TWO

DOGS

THEM

OUT.

dragging

■►On 1.161,GOO shares

another

rose

record

high in April,

the

reported. Higher wages
benefits were featured in the gain.
The department said Americans earned at a seasonally-ad¬
justed annual rate of $339,300,000,000 last month. This compared
with annual rates of $338,100,000,000 in March and $331,500,000,States Department of Commerce

and increased old-age

000 in

April of last

year.

first four months of this year,

For the

the agency reported

personal income reached an annual rate of $337,300,000,000—up
$18,700,000,000 from the annual rate during the like period of
last year.

Nearly half of the April increase in personal income stemmed
from

the department's report noted.

higher old-age benefits,

explained that farm operators and certain other groups who were
covered by Social Security for the first time in 1955 are now
becoming eligible in large numbers to receive benefit payments.
In

addition, the report added, old-age payments to women have

increased in the past few months because of a change in the
effective last November, which permits women to retire at

law,
age

62 instead of 65.

the

automotive

uled little change in

tive

industry last week

manufacturers

sched¬

production the past week, "Ward's Automo¬

Reports," stated
Plans

trucks

the

Friday last.

last week called for

output

of 126,223 cars and 23,577

compared to totals of 125,924 and 23,198 the week before.

majority of manufacturing plants. "Ward's" said exceptions
Plymouth workshops in Detroit and Los Angeles and Chrys¬
Imperial in Detroit, where six-day sessions prevailed the

ler and

past week and Mercury factories in Los Angeles,

currently outstanding.

Metuchen, N. J.,

Louis, plus Ford's St. Paul, Minn., unit, where operations
were
limited to four days.
General Motors Corporation's Oldsmobile and Buick factories
St.

and

in Michigan returned to five-daj'

scheduling last week after sev¬

eral weeks of four-day output.

vehicle of the year was
United States. By Saturday, the
reach 3,104,143 units, comprised of 2,662,633 cars and

"Ward's"
turned out

total

vehicles

that the 3,000,000th

noted

the past week in the

was

had

Through the

been

same

built, made

date in 1956, a total of 3,066,311
of 2,593,111 cars and 473,200

trucks.

Although holding below the year-ago level for the third
cessive-month, corporate activity continued to rise in April,
& Bradstreet, Inc., reports. New stock corporations formed
ing the month numbered 12,078. This was an increase of
above the 11,815 for March, but it was a decrease of 3.2%
the

suc¬

Dun
dur¬
2.2%
from

12,475 in April last year.
New businesses chartered

totaled 48,071.

during the first four months of 1957
a drop of 6.0% from the record

This represented

high number of 50,163 filed during the corresponding 1956 period.
Total

April
April

dollar

volume

building

permits for

the

month of

8% over March to reach the highest level for any
record, according to Dun & Bradstreet, Inc. The aggre¬

rose

gate for 217 cities, including New York, came to $588,231,693, up
12.2% over April 1956.
The most noticeable year-to-year gains
occurred in the Middle Atlantic region, up

gion,

declined

58.8%; the Pacific

re¬

35.4% and the South Atlantic region, up 20.3%; values
31.5%

in New England.

For New York

City alone, permits for April totaled $83,437,-

287, compared with $33,453,589 last year, for a rise of 149.4% and
with $81,243,150 in the preceding month, for an increase of 2.7%.

Steel Ingot Output

This Week Estimated at 86.7%
Capacity
v.

of
The

outlook

the

steel

industry the current week, accord¬

ing to "Steel" magazine, metalworking weekly, is that steel pro¬
duction may continue its gradual decline through May. Steel mill
operations continued to slip last week to 86.5% of capacity, down
one-half

point from the previous week with output at 2,213,959

net tons.

During
tons,

better to sell out depressed, weak

that have been

income

Personal

United

^Earnings

business from time to
him, IF THERE ARE

time

stocks,

Xet Profits

Oil and Gas

Profit from

Year Ended Feb. 28;

National Product compared with annual
in the final quarter of 1956.

of $423,800,000,000

441,510 trucks.

Houma

Net Operating

have clients whose
set, it is good to remem¬

garden

some

you

ber that if you have

day

Here's

year.

were

their

Rule

Last year's Gross National
compared with $390,900,000,000 in

for the full
$412,400,000,000

was

Reflecting this steady pace was "straight time" scheduling at

Summary of Operations
Good

select Business Ad¬

Secretary Weeks'

property.

producer.
common stock.
inventory of her actual
Additional
potentials exist at
After the payment of a 100%
profits but she conveniently ig- several other Southdown planta- stock dividend last Fall and a
rores her paper losses,
I tried to tions.
Union Oil
of California.
10% stock dividend this Spring,
talk it out with her one day but Superior
Oil of California and Southdown has 1,161,600 shares of
I saw it was useless. Her husband Standard of Indiana individually common
stock outstanding with
did it that way for 20 years before have one-sixth royalty leases on no long-term debt ahead. During
be died and she is still worshiping a large area southwest of Houma. the past six months the market
bis dead image—-so you go do Combined these leases cover has
substantially raised its apsomething!
•
from

Commerce

week

First quarter Gross

.she takes

Generally

Last

rates

QU & Retining> Union ou and Gas
and Howell Holloway and Howell

to Hollywood is the

Crescent Farms Field where eight

take profits,

She likes to

years.

several

for

ci0W11

by the President's Council of

visory Council, meeting in Hot Springs, Va., predicted the nation's
total output would continue to edge up slightly in each of the
final three quarters of
1957, to total something higher than

Sunray-Mid-Continent, Humble

future. At
of the least three different sand fctratas

by the. salesman

all

holdings

production may be forth-

knowledge and

confidence,

complete
of

rate previously estimated

000,000

Economic Advisers.

1955.

the United States Department of Commerce reported.
that final tabulations put the Gross National Prod¬
this year at a seasonally adjusted an¬
nual rate of $427,100,000,000, slightly higher than the $427,000,It added

Product

Two other promising situations
are
North Thibodaux acreage
where J. R. Frankel has an imthe job of managing an invest- drilled.
Two of the ,w ,® "ave portant gas discovery and the
rnent portfolio the way it should been closed
in due to the ex- Vacherie area where J. Ray Mcbe done.
tremely high pressures encoun- Dermott has completed six suctered. After one year's work pipe cessful oil and gas wells on South.

uct for the first quarter of

$427,000,000,000

what is believed to be a "giant" barrels and 220 barrels per day)
and one gas well are producing
on Southdown';? Nora Plantation,

not

you

in
us?" It is
doing better than

They are saying

paying off. That is why some steel firms are
others, concludes "The Iron Age."

you

their complete confi- &as
(*n excess of 500 billion
<3cnee
their list of investments, cubic feet).
The first wildcat
but also the acceptance of the idea weU wus brought in during 1953
on their part that a periodic reanc* since then Tidewater has
viev/ of their account is I part of completed
nine of ten wells
have

only

tight.

creases,

Human nature being what it is,

try to make allowances for these

eighth royalty lease of 2,500 acres, skirts of the Valentine Field. Two
Tidewater Oil has
discovered oil wells (which potentialled 197

havp established

was

Roughly two-thirds of the rise in the dollar amount of the
total output over the past year stemmed from price in¬

vnn

market

of you; what are you doing for

care

nation's

The brightest news concerning lmity to the Orange Grove and
them intelligently in weeding out Southdown's oil and gas poten- Lake
Hatch Fields. South of
the bad apples from time to time. "al «.the Hollywood Field, lo- Lockport on
Bayou Lafourche,
Here is where the matter of ohcated in the eastern section of The Texas Co. has a one-eighth
taining
an
understanding with the company's largest tract of land royalty lease of. 1,535 acres on two
vour accounts comes to the fore
Just out of Houma On a one- tracts of land situated on the outfflonin

"We took

up,

restless and want to sell.

work with

this realitv and vou can

effect;

Industry

They have been on the

reminding their customers how they took

when the

them

care

down, that is when they get

The State of Trade and
road for weeks and are

hold

When stocks go down people

Ject'in™ securitiesTran1 bat 100%". United Gas Corp. laid a pipeline slightly over 9,000 acres and are
clients will accept
-"eld.
interesting because of their prox-

Many of vour

Continued from page

selling by the old-timers in steel sales.

the bud.

The Security I Like Best

thing'.

expected

and

normal

situ¬

than

neglect

Laggard Stocks

Take Out the

want him to remember

you

you.

By JOHN

cember to a recent high of $34.
As one proud Southdown stockholder remarked, "There's no synthetic substitute for land!"

praisal of the company's stock
(traded Over-the-Counter). The
More accounts are lost by sales¬ price has advanced from a low
of around $20 per share in Demen who are afraid to face up to

way

April

bringing

steelmaking furnaces produced 9,814,000 net
for the first four months of the year to

output

41,399,042 net tons, or about 1,000,000 tons below the figure for

Volume

the

185

same

Number 5640

period last

The Commercial and
Financial Chronicle

April ingot operations

year.

averaged 89.5%.
The average for fhd
firstffour ?hionths Was'94.4%."
Third quarter
orders, this trade weekly notes, are
coming to
the mills at a much slower
pace than had been
expected. Only
plate, structural and tin plate schedules
appear
to
be
filled

earlier.

increase,

before

late

third

quarter

when

auto

builders

cents

ton.

at $140.24

The

base price composite
net ton, concludes "Steel"

f The
American Iron and Steel
operating rate of steel companies,

will

below

with

tons

ingot and

steel

for

prime steelincrease of 67

castings,

compared

the

month ago'the rate'Was

year

index

■

...

Association

American

Loadings for the

Hose

Fractionally Above

week

Railroads

ended

reports.

May

1957, totaled 723,392
below the
corresponding

the Past

week's

Higher Trend
ended

Reports,"

trend of past weeks.

May

continued

17, 1957,
the

up¬

car

20,902

a year

ago.
T
output rose above that of the previous week
by 299 cars, while truck output increased
by 379 vehicles during
the week.- In the
corresponding week last year 105,763 cars and
20,902 trucks were assembled.'

the

was

week

placed at 10,100 cars and 2,016
plants built 9,118 cars

Dominion

1,861 trucks, and for the comparable 1956
week,
2,333 trucks.

and

11,465

cars

Business failures dipped
from 267 in the
preceding

to 264 in the week ended
May 16
week, Dun & Bradstreet, Inc., reports.

At the lowest level in three
weeks the toll was
slightly below
the 279 a year ago,
although remaining above the 226 in 1955. Fail¬
ures were down 9% from the
prewar level of 289 in the similar
week of 1939.

Retailing and wholesaling accounted entirely for the decrease
during the week with the toll
142 and

among wholesalers
turing casualties climbed to

among

retailers down to

to 25 from
45 from

31.

135 from

contrast, manufac¬
39, construction edged to 41

from 38 and commercial service to 18
from 17.
Fewer businesses failed than last
year

construction

which

held

rose

above

its

1956

in all functions except

level

and

commercial

steady.

April Failures Drop 12% from March's Postwar
High
Down 12%

from the previous month's
postwar high, business
failures totaled 1,175 in April.
However, casualties continued 14%
above the comparable month a
year ago; they were the heaviest
for any April since 1940 when

1,291 occurred.
Businesses failed at a rate of 43.2
per 10,000 enterprises listed
in the Dun & Bradstreet Reference
Book, according to Dun's Fail¬
Index which extends

groups

among very

than in

March, with the sharpest decline oc¬
small cases involving liabilities under $5,000.

In the million dollar class one less
business failed than in March,
but their aggregate liabilities bulked
considerably larger and ac¬
counted principally for the month-to-month
rise in losses.
Tolls
exceeded the 1956 level in all
sizes; the rate of increase varied from
among

casualties

under

$5,000 to

19%

and

21%

in middle-

firms, and reaching 30% in the $100,000 class.

Wholesale Food Price Index
Registered New Low
<

•

the

week,

ti'noticeable week-to-week" drop" in purchase's
mained well above' a year ago.
Average daily

For Year in Latest Week

A further slight

dip in the Dun & Bradstreet wholesale food
price index brought the May 14 figure to
$6.08, from $6.09 a week

ration date.

There
week

was

moderate

decrease

flour

prices

during

trading lagged.
Export demand slackened and
reported. Flour receipts at New York railroad

stocks

;

were

J
,

.Net^ proceeds. from: the,, sale, o£;
part to pay bank indebtedness o£"

the capital, stock of Gas

Gathering.
Co., the Duval County Ranch Co.
and

Reports

coffee

would probably hit

The

ing.

that

the

1956-57

City,

the
high

pro-'

balance

ceeds, together with
the

record level.

The
at

year ago.

debentures

the

prices
to

The

week's improvement in

;

100%

prior
if

Exchange,

Coastal

doubts that

exports two

comparable

1956

week.

slight rise in the buying of cotton priqt cloths occurred
and prices held at the levels of the prior week. Wool top prices
in Boston were steady, despite a moderate decline in sales volume.

after

States

Gas

Producing

directly and through

day of last week.

equipment.

In contrast to sales increases in cotton dresses,

volume

While the buying of air conditioners
other

rose

somewhat,

electrical

appliances, linens, draperies and car¬
peting lagged. Automobile dealers reported a slight pick-up in
sales and volume equalled that of last year.
The total dollar volume of retail trade in the period ended, on
Wednesday of the past week was unchanged to 4% higher than a
year ago, according to estimates by Dun & Bradstreet, Inc.
Re¬
gional estimates varied from the comparable 1956 levels by the
following percentages: New England and East South Central —1
to -f-3; Middle Atlantic and West North Central +2 to +6; East
Central

Mountain

and

-f-4; South Atlantic —3 to +1

West South Central and Pacific Coast +1

Department
the

store

Federal

sales

Reserve

to +5%.

country-wide

Board's

index

lor

basis

the

recorded.
of

Retail trade
tered

gains

trade

observers

volume

for

reason

registered above that of
to

in New York

estimated.
the

above

the

Favorable

week

taken
ended

increase

period

weather

was

Nov.

year

given

ago,

the

sales.

According to the Federal Reserve Board's index, department
sales in New York City for the weekly period ended May
11, 1957, rose 7% above that of the like period of last year. In the
preceding week, May 4, 1957, an increase of 6% was reported.
four weeks

ending May 11, 1957 a gain of 5% was regis¬
period of Jan. 1, 1957 to May 11, 1957 the Index
rise of 4% above that of the corresponding period in

For the

recorded

eight-month period from
1955, when the company

commenced

business, to June 30,
1956, net income was $3,828 and,
six-month period July 1,
1956
to
Dec.
31,
1966,' it was

for the

$168,754.

Based

unaudited fig¬

ures,
the company's
for January and

net

income

February
amounted to $172,886.

1957

New Members of Midwest

Stock Exchange
CHICAGO, 111.—The Executive
Committee

the

Midwest Stock

Exchange has elected to member¬
ship in the Exchange:
M.
Baker,
Geo.
M.
Co., Chicago, 111.
Doerge,
Saunders,
Stiver & Co., Cleveland, Ohio.
M. B. Pilcher, Mid-South Secu¬
rities Co., Nashville, Tenn.

Baker

John

Bunn, Stifel, Nicolaut*

Co., Inc., St. Louis, Mo.
Paul H. Gaither, Gaither & Co.,
Inc., Cleveland, Ohio.
Erwin
R.
Schweickhardt,
Schweickhardt & Co., New Or¬
leans, La.

store

For the

gas

1956.

City the past week regis¬
similar

sells

For the
,

For the period Jan. 1, 1957 to May 11, 1957, an

was

finally

George

May 11, 1957, rose 3% from the like period last year. In the pre¬
ceding week, May 4, 1957, an increase of 6% (revised) was re¬
ported. For the four weeks ended May 11, 1957, an increase of
was

and

gas

users.

sportswear and bathing suits, volume in fashion accessories, toi¬
letries and lingerie was slightly below a year ago. Sales of men's
apparel fell slightly below the comparable 1956 levels.
Best¬
sellers in household goods were summer furniture and barbecue

1956.

1958,

gas, then collects, processes
where
necessary
and transports

the

Unchanged to 4% Higher Than Year Ago

tered.

1,
or

long-term sales contracts to largo
pipeline companies and industrial

Numerous sales promotions and warm weather encouraged in¬
terest in women's summer clothing in the period ended on Wednes¬

main

ural

Trade Volume in Latest Week Ranged From

June

at
i£

from individual producers of nat¬

North

for

subsidiary
corporations
20
gas
gathering systems and produces
sells natural gas, crude oil
and
condensate' from
properties
located
principally in southern
Texas. In its gas gathering opera¬
tions, the company purchases gas
on
long-term purchase contracts

weeks ago amounted to about 126,000 bales against 240,000 bales
in the preceding week and 74,000 bales in the

and

prices resulted from

Cotton

gas

redeemable

are

redeemed

Co. operates

change in next year's price-support levels.

According to the New York

construction

additional

June 1, 1976. They are redeemable
for the sinking fund at par and
accrued interest.
r
■■

Friday.

there would be any

receive

option of the company
ranging from 105y2%

redeemed

noticeably during most of the week, but

rose

the

additional properties
working capital.

prices

for

acquisition

from the prior week.

proceeds

may

gathering systems, the develop¬
ment of existing oil and gas
leases,
the acquisition and development

There

Cotton

the

any

company

available

and

trading at the end of the week boosted hog prices
was a slight rise in prices on dressed beef last
week.
Receipts of live steers in Chicago climbed considerably
and prices continued at the levels of the
preceding week. Lamb
prices advanced substantially as trading mounted'. Lard futures

sagged

from the exercise of the warrants,
will be added to general funds to

Mexico

prices fluctuated widely, but closed the week with slight decreases
Export demand for lard is expected to pick
up in the next few weeks.
\„.ti

The

which

Cocoa markets reported a moderate rise in trade and prices
unchanged. Warehouse stocks of cocoa were below both

somewhat.

sys¬

tems.

ter¬

political situation in Columbia noticeably curtailed buy¬

pf the Texas
Midway,' 4 Carancahua

the

Bay and other gas gathering

futures prices con¬

crop

John C. Robbins Field leases,

and the construction

-'.V

and

Which;

incurred in, the acquisition of >

was

tinued

indicated

th$ Aebpptures. will ,be ,psed in.
a£>proximately r $2,4&5,006*

on
Friday, two weeks ago, amounted to 27,936 sacks, with
16,921 for export and 11,015 for domestic use. Sugar futures prices
fell at the beginning of the
week, but picked up at the end of the
period as buying strengthened.
~

Coffee transactions fell in the Week
close to those of the prior Week.

One-half. pf the waiv

detacli^d •&£

rye,

ago.

attached* priced at

rants
may be
-any,
time and one-half may be detachedi
on and after June
1, 1959. : .
iT

■

volume re¬
purchases of grain
and soybean futures on the Chicago Board of Trade were approxi¬
mately 42,000,000 bushels, compared with 52,000,000 bushels in
the prior week and 66,000^000 bushels in the
comparable period
year

Jdebentures,

common stock pur¬

$1,000 principal amount of debehtures at $7.50 per share to and'
including June 1, 1967,' the expi-

oats was steady

■

increase

buyingband prices were close to those of the pre¬
ceding week.
\
'
'
'
't
;
.Soybean trading in Chicago declined moderately, "from a week
ago and was sharply below that of last
year. Although there was

Producing Co.

fund

100%.
The warrants .entitle the
holder: ,tO; purchase common stock
at'the rate of 60 shares .for each

■

rubber, lead arid

com¬

what curtailed

were

sized

•

13,

However,

■

from

curring

price declines
'

May

year ago.

monthly mortality to an annual basis and
adjusts for seasonal fluctuations. The rate
dipped from 54.9 in
March, but exceeded the 42.2 of April last year.
Contrasting with the dip in the number of
casualties, their
liabilities edged up 2% to $57,103,000. Failures
in| all size
numerous

sinking
due 1977, with

publicly1

$5,600,000 oZ

;

reduced,; oats prices increased

Business Failures Registered Mild Decline the
Past Week

less

286.27

week's

Canadian output last week

ure

Increased

Last week the agency
reported there were 23,577 trucks made
in the United States. This
compared with 23,198 in the previous

service

were
.

those of last week and

output totaled 126,223 units and
compared
with 125,924
(revised) in the previous week. The past week's
pro¬
duction total of cars and trucks
amounted to 149,800
units, or a
gain of 678 units above that of the
preceding week's output,
states "Ward's."
1
'

and

closed

Gas

5i2%

chase warrants

moderately..: Continued unfavorable weather conditions in much
of the corn belt encouraged
trading, and corn: prices advanced
fractionally. Sales by government agencies of cash wheat some¬

cor¬

Week^-S^-:

Automotive output for the latest week
according to "Ward's Automotive

and

...

were

U. S. Automotive
Output Holds to

trucks.

index

week earlier and 293.34

prices advanced slightly. The buying of
farm stocks were sorftewhat

31,

a decrease of 54,214
cars, or 7%
week, and a decrease of 29,253
cars, or 3.9% under the
responding week in 1955.
'

cars,
1956

The
a

offered

(May 22)

Coastal States

■

minals

Loadings Last Week

Loadings of revenue freight for the week ended
May 11,
1957, increased by 4,468 cars or 0.6% abdve the
preceding week
the

Last

week.

investment bank¬

that

yesterday

livestock and steel scrap
Bradstreet daily wholesale commodity

some

■■

Prior Week

week and

Paine, Webber, Jackson & Curtis
Blair & .Co. Inc. are joint

and

managers of

grains,

Although trading in grain futures slackened

The amount of electric
energy distributed by the electric
light
and power industry for the week
ended Saturday, May
18, 1657,
was
estimated at 11,519,000,000<
kwh., according to the Edison
Electric Institute. This was a
greater increase than the gains
made the week before.
;;'
The past week's
output advanced 208,000,000 kwh. above that
of the previous week; it
increased 644,000,000 kwh. or
5.9% above
the comparable 1956 week
and
1,789,000,000 kwh. over the week
ended May 21, 1955.

Last

increases

during the week there

Electric; Output Showed Further Expansion Last Week-»•

Car

last

lard.

88.7% and pi^Of;

price

pared with 285.68

with

ago the actual weekly
production?
placed at 2,396,900 tons or
97.3%. V\
£
2 /*.
The operating rate is not
comparable because capacity.
fcK
higher than capacity in 1956. The
percentage figures for 1956 H
are based on an annual
capacity of 128,363,090 tons as of Jan.;
-

ing' group

helped boost the Dun

was

1956.

States Gas Debentures
'

•

Some

84.2% of capacity, and 2,155,000 tons
(revised) a week ago.
The industry's ingot production
rate for the weeks in 1957
on annual
capacity of 133,459,150 tons as of Jan.
1, 1957.
a

Group Offers Coastal

Commodity Price Index in Latest Week
Moderately Extended Jts Gains of Prior Week

magazine.
that

drop of 1.0%.

or a

Paine, Webber-Blair

level for the first time this year, comparing

year-ago

Wholesale

is based

For the like week
duction 2,269,000 tons.

the

$6.14,

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.

announced

low for the year and the lowest
The current index is

new

The index

ton, an
finished steel remained

Institute

13;'1956, when it stood at $6.01.

Higher in wholesale cost last week were corn, rye, oats, barley,
hams, cocoa, potatoes, rice and lambs. Lower in price were flour,
wheat, lard, butter, sugar, cottonseed oil, eggs,, prunes and hogs.

having 96.1% of the steelmaking capacity for the entire industry will be an
average of 86.7%
of capacity for the week
beginning May 20, 1957, equivalent to
2,220,000

This represented

since Nov.

through July. Indications are that there won't be
much new buy¬
ing, except for some protective
covering at midyear against a price
actively seeking tonnage for 1958 models.
^ '
i fii In the week ended May
15, the price composite
making grades of scrap was at $45 a gross

(2425)

Baxter Adds to Staff
(Special to The Financial Chronicle)

CHICAGO, 111.—Daniel F. Sul¬
Jr. has been added to the

livan

staff
South

Baxter

Dearborn

Company,

Street.

,33

The

CnntimipH irnm ' nanp

P®£r

Chronicle

...

Thursday, May 23, 1957

«ivisl
of

fifths

rAlllvAlfAVCVf

V QUvLft

QWSL

VwilUvV CIwY

employed defense of Egypt and

workmen

the

the main-

tenance of public order." The
"rights of Turkey as the territorial
Egypt agreed to pay the Company power are reserved" and "with
38,000,000 francs as compensation, the exception of the obligations
these works shall be Egyptian"
was
abolished for
which

upon

expressly provided by the clauses
of the present Treaty, the sovereign rights" of the Sultan and the
taining only 3,000 hectares for the Khedive "resulting from the Firrequirements of the Canal and for mans, are in no way affected,"
this reclamation the Company was and that "the engagements resultpaid 30,000,000 francs. The Gov- ing from the present Treaty shall
ernment also took over the posses- not be limited by the duration of
sion and maintenance of the fresh the Acts of Concession of the Uniwater canals with the obligation
versal Suez Canal Company."
receded to the

Also the Company

Egyptian Government 60,000 hectares of the prior land grants, re-

the Company its water

to furnish

nationalities

tian Government of the interests have arbitration by a foreign sov- representation of
on
ereign of a dispute between itself the Board * of Directors of , the
Canal in the administration of the and the State of New York. Con- Company, yet it* had not been
operations of the Canal and was a sequently this involved recogni- limited to this means as shown
limitation upon the proprietary lion by the Egyptian Government by the Tonnage Conference s of
right of the shareholders as to of an interest in other nations in 1873, and the Convention of 1888
choice of personnel of the Board the operations of the Canal Com- expressly provided that £the enof Directors.
pany.
gagements resulting from the
<phe international aspect of the
Recognition of such an interest present Treaty shall not* be. limCanal is als0 apparent from the or right in a more significant de- ited by the duration of the Acts
long delay from 1854 to 1866 by gree occurred in 1873 when dele- of Concession of the Universal
t^e gultan before approving the gates of the principal maritime Suez Canal Company,
which, it
of those nations as users of the

: 'W

"'"W

Commercial and Financial

(3426*1

clear that the free and
equal navigation of the Canal by
the users of the Canal expressed
unilaterally by Egypt in the FirIt

seems

concession granted by the Viceroy
to de Lesseps which must be understood in relation to the issues
Gf ^he Crimean War. Great Britain>s support of the Ottoman Empire against Russia broke into hostilities that were adjusted by the
Peace of Paris in 1856, at which
jjme by separate treaty of April
15,
1856, Austria, France and
Great Britain guaranteed the integrity of the Ottoman Empire,
Because Britain was the strongest
supporter throughout this period
of the Ottoman Empire, the Suitan gave great heed to the attitude
of the British Government which
from 1854, when the concession
was publicly announced, actively

powers,

reasonably means tnat the
servitude exists and is^to con¬
tinue independently of the Canal
Company as the instrumentality
of administration of the operation
of the Canal. How the servitude
is to be implemented without the
Canal Company or after expiration of the Concession was not
stated but left for adjustment" in

including France, Great seems,

Britain and Russia met at Con-

stantinople at the invitation of the
Sultan. This conference was called
for the purpose of devising a satisfactory system of calculating
tonnage of ships passing through
the Canal for the imposition of
tolls to be charged. After .some
weeks of negotiations, this Ton-

adopted the Brit- the future.
.The servitude described in the
foregoing discussion does not
seem to have been in any major
-way modified or changed in development, either by the British
military occupaion of Egypt beginning in 1882 or by the treaties
after ^ World" War I, whereby
Germany, Austria" and> Turkey
consented "to the transfer to his
Brittanic Majesty's Government
of the powers conferred on His
imperial Majesty the Sultan by
joint stock Law though in a particular in-, the Cape of Good:HOpe. Thd.de- administration °f the operation of the 'Convention" of/1883. ™> The
*lgr* stance its scope and effect is not velopment of-.a' sea-router throiush' the Canal-;-.; :
■/„ ^y.
V/* •: purpose of Britain throughout the

supply.

nage Conference

ish system of determining tonnage
and the Sultan'instructed the Vicemans was
confirmed and given
roy in Egypt to put it into effect
Article 16:
multilateral status by this Treaty
within three months. De Lesseps
"Since the Universal Company and
that thereby
rights were
strongly objected to the new sysof the Maritime Suez Canal is an granted to them by Egypt and
tern, but when the Viceroy preEgyptian
Company,
it remains Turkey as a restriction upon terpared to send troops to the Canal
subject to the laws and usages of ritorial jurisdiction, characterized
zone, de Lesseps accepted the dethe country.
However, regarding as a servitude for navigation opposed ratification by the Sultan, cision of the Tonnage Conference
its constitution as a Company and
through the Canal, somewhat in
The purpose of such opposition and adopted the system.
It can
the relation of shareholders among
the nature of an easement 6
A Was to maintain-Britain's domi- hardly be denied that this was a
themselves, it is—in virtue of a legal interest as a servitude is nanCe as to control "of the sea recognition of an interest in the
special convention —governed by well recognized in International route to India and-the East around users
of the Canal as . to the
Egyptian
Government's right to police the
Canal area, the Firman stated in
After

the

providing

the

Win

regulating

laws

Sflnpp fn ir^mpnt nd w-th
rL11 Kifrfr-i
r!JJ?5 nL," ?

hpfm?

in
Qn

TnHhriH,,oic

Ff/vntian

rediire

law

snhieet

are

may

that

between the Company

arise

and

s?p
,

disputes

the

regards

irn

Fevntian

their

treaties

and

nsaees

«a

he referred

and

enurts

Gnm

m.f«t

these

natinnalitv

that

Hi*nntp*

thp

h^etw^n ^p

Favnt

n9nv

^in^rarhitpr

rp^arrf*

"As

arise

Pari*

the Suez Canal would naturaUy% " Consequently, by the foregoing period after 1882, as to the se^vigive some power-to other states'" international negotiations, settle- .tude seems to have been to mainover the sea' route to: India and ments,.agreements and precedents tain the status quo as to its ob-/
the East. The opposition of Brit- it does not seem too much to say servance'e x c e p t i n g debatable
ain was finally worn down to two that what, was in certain aspects infractions during f: World Wars
principal objections: objection to conceived in the beginning a*, a i and II. That Britain's role was
the use of conscript labor in the domestic company was at least in.that *>f guarantor of observance
building of the Canal/which was part lifted out of the realm of Mu- 0f the -servitude primarily for
regarded as a type of slavery and nicipal law and put into , the herself,, of course,' but also ,for
objection to the -large land, grants realm of Public International Law, the .benefit of all users of the
by the Viceroy to the Canal Com- at least to the extent of the rec- 'Canal, is apparent from the terms
legal right of the Egyptian Gov- pany in the area of the .Canal zone ignition by the Khedive of Egypt
thethe Anglo-Egyptian Treaty :
unilateral Proclamation of
ernment. The issue then is whether which it was thought France might and the Sultan of the Ottoman 1922

tlfhmittpwestn^h-fprcTn always clear-

the

Government,

Egyptian

these must

like manner be re-

Iff". in E£ypban Judiciary
0 accordance with

Egypt does not seem to have
denied the existence of this servitude for the free and equal navigation of the Canal by all nations,
but has denied that it includes any
right as to the continuation of the
Suez Canal Company as the instrumentality Qf administration of
the °Peration of the ..Canal. and
consequently nationalization is a

the

users

rights

any

the Canal

re-

spect to the instrumentality of ad-

Presumably the bur-

tun law.

nal.

unilaterally declared in
Egypt Succeeds Turkey•
the Firmans for, the benefit of the - Finding herself at war with
users of the Canal.
/ . • ' < - ■ Turkey Britain declared on Dec.
Napoleon m Arbitrates j- r r . -r
.
V
s 18 "1914; that the Sultan's auNegotiations on these-points andNavigation
thoritv in Egypt was terminated :
certain lesser ones between the
" /" V- Rlgrhts *
:
and was succeeded by>a temCompany and the Egyptian-:Gov- * What, then,^was- the legal effect porary Protectorate.- The Proclaernment reached an .agreement of the purchase by Great Britain {nation^^ of 1922 rissued to allay
between them, to which the Sul- on Nov. 24, 1876, of 176,602s shares friction with- the Egyptian- Na-

that

opposition

t o t h~e

project servitude

den of proof or argument that the might subside.8
"Workers and other individuals servitude includes such a right is
,

and thus .acquire
too Empire of a right in the users of Df Alliance of 1936, and the Ana position astride the Ca-. the Canal as to the administration
glo-Eeyptian Evacuation AgreeWhen'these -two objections Pf-the Operation of the Canal ment of 1954. *

colonize
strong

and ministration of, the ooeration of should be obviated it was .possible which was and is a part of the
the Canal.

Egyp-

settled

includes

servitude

the

the users of the Canal.

administration of
tried before
Egyptian courts and in accordance
with Egyptian laws and treaties.
This applies to all contraventions
and disputes where either or both
parties concerned would be Egyptian. Should all parties to the dispute be foreigners, the case will
be subject to the established pro-

From the beginning the Suez
Canal Company had an international aspect. The Articles of Association drafted as for a French
joint stock company provided an
allotment of shares for subscript

tan's Ambassador to Egypt did
not object, to submit the ;controversy to Napoleon III for arbitration. On July 6, 1864, Napoleon

cedure.,

tion according to nations believed

III announced his decision in the

to be primarily interested in the

arbitration proceedings.

subject

the

upon

the Company Avill be

"All

addressed

notifications

the Company by any of the parties
interested in Egypt will be valid
when

dispatched to the Company's

Office at Alexandria."

The Case for the Users of the
Canal

of the three Firmans would seem

Egyptian Govt.__

Turkey
ESYPt

of Egypt

including the right of the

Government of Egypt to national,

ize the properties
but it is

pany,

of that Com-

also necessary

consider the legal effect of other
significant aspects of the history

France
Great Britain
Austria
Russia-Wallachia
Denmark
Netherlands
Spain

Portugal
Italy
United States
Others

___

of the Canal and the Company.

The Convention

1888,

of October

Hungary'
Great Britain!

between

Austria

France,

Germany,
Italy, Netherlands, Russia, Spain,
and Turkey, in part supports the
case

for

Egypt.

that

the

Canal

free

and

open,

time

commerce

After
"shall

war

to every vessel
war, without

peace,

distinctions

providing
always

in time of
of

flag"

and

stating

conditions and limitation to effectuate this purpose,

it reads: "The
Egyptian Government shall, within the limit of its powers

from the Firmans,

conditions

for

the

present treaty, take the necessary
measures
tuuon
cution

oi
of

also that

for

insuring

xne
the

saia
said

the

Treatv"
ireaty

the limitations and

exe-

and
ana
con-

ditions shall not interfere with the
ewecution

nf
01

fhp
tne

Tmatv

nnr

ireaty nor

"tVio

tne

indemnity to the Company of 38,-

The Articles

750
998
207,160
nil
163
174

also

nrovide

that

nationals of those nations
interested in the enterprise." The Articles were subject
to approval by the Viceroy and
were so approved.
Consequently,
this allotment and distribution of

chiefly

tation

of stock

the Com-

this method of

pany and

the

Board

represen-

Directors

elected by the shareholders, was
nascent recognition by the Egyp-

(1934e)"wiC3oi [ntt.ernational Law' ad ed-»
that

while the'Suei 'canri^ema^s 1 "i-

vate undertaking whether subject to the

|®rritoriai. controlI of Great Britain or of
•
new 'ndePende"* state of Egypt, it
nevertheless
subject to a servitude
1S

common

use

the part

of all

na-

*"
?^^aPte,J- fi*om_ Schonfield, The 35.
Suez
World Affairs, mss)- p.
.

Canal in

„

Drotection of minorities; (4)
Soudan Pending the conclution of the operation of the Canal .
f
' h agreements the'
which would support, though it *fat1ik *auo in all these matters
would still be separate from, the ^11 rpmain intact"
' '
Public International Law right ac- sna
'
1Q99 , ..

Jhe Company should recede to the
Egyptian Government 60,000 hectares of land in the Canal zone
upon compensation therefor to the
Company of 30,000,000 francs also corded by the Sultan and Viceroy
7 to be paid by the Government of to users of. the Canal , as to the
2,615 Egypt.
administration of the operation of
4,161
On the basis of the award the Canal. Consequently the pur20,000
5 further negotiations occurred be- chase made no change in the legal
2,719 tween the Egyptian Government nature of the servitude.
20,000
nil and the Company as to the details
But when the Convention of 1888
3,606 of settlement, and final agreement Save multilateral status to the
was reached on Feb. 22, 1866, servitude for the users of the Ca400,000 400,000 which was then submitted to the nal theretofore unilaterally de-

42,000
80,000
80,000
40,000
24,000
30,000

th^BoardBir!ctorSPtf SfshoSfd

the shares

of the capital stock of the' Suez Uonalists* ended the Protectorate:
Canal Company for 4,000,000 Engd deciared Egypt to be an in'Jish pounds from the Khedive of dpDendent state but reserved to
Egypt? As a general rule, the Britain's discretion until future
ownership of shares of stock in a agreement* -4<(1) The -security of
domestic corporation by a foreign t^e communications of the British
government is a matter of Mu- i^nire hi" Egypt* (2) The"defense
nicipal Law and does not change 0f-Egypt against all foreign hgthe private or domestic status of gressfon br interference, direct
the corporation.- The proprietary °r jndirecf (3) The protection
interest through .ownership of f foreigrv interests in Egypt and

His deci- shares gave Britain a Municipal th
sion as to the land grants was that Law right as to the administra- Th

177,642 Government of Egypt.

64,000

resulting

and under the

provided

if they were all that may be considered, the Company would today
be subject to the Municipal Law

His de-

Allotted purchased 000,000 francs to be-paid by the

provisions

support the theory that it was
originally contemplated that the
Suez Canal Company was in general a domestic corporation so that

project. The table? states- the cision as to the use of conscript
shares allotted and purchased in labor was to annul the provision
tbe various nations:
in the Charter of Concession uoon

—

Certain aspects of the

¥T

Sultan who ratified it on March clared by the Khedive in the Fir19- 1866:
manS, of free and equal navigation
.

The significance of the arbitra- through the Canal, the right theretion proceeding is in the recogni- toibre accorded to the users of the
tion by the Egyptian Government Janal by the Sultan and the Khethat the Canal Company had a !vve aS
administration of
status quite different from that of the. operation of the Canal was
an ordinary domestic corporation a s.° ^ven multilateral status, it
*n Egypt. In view of the interest beinS a Part
of various nations in the project,; - The scope

of the servitude.
and implementation

Tbe Proclamation of lyzz fgiiNationalists, t
was superseded^by the ireaty. ot
Alliance of 1936 which m Article
VIII stated:
"In view of- the fact that the
Suez Canal, whilst being .an
integral part of Egypt, is a universal means of communication
between the different parts of
the British Empire, His Majesty
the King of Egypt, unt11 such
time as the High Contracting
Parties agree that the Egyptian
Army is in a position to insure
by its own resources the liberty
and entire security of | navigation
0f the Canal, authorizes His
Majesty the King and Emperor
to station forces in Egyptian ter.

inS to satisfy the

servitude including the ritory in the vicinity of the Canal,
the users of the Canal .
zQne specjfjed in the Annex
an arbitration proceeding before as to administration of the oper■
H
*•
a sovereign power as arbitrator, a ation of the Canal, is not, how- to this Article, witn a view xo .enstanding ordinarily accorded by a ever, sufficiently clear to avoid .suring in cooperation with the
sovereign power to another sov- all difficulties. While exercise of Egyptian forces the defense of the
ereign power. It is inconceivable the right - was in part through r.0„ol
. . Th. nrPcPnrp nf these
that any domestic corporation of
•
*'
.....
*
t\tpw rorK State .e.g., a nnhlir in 9 This was about 40% of the outstand- forces shall not constitute in any
^ew York btaxe, "p a
a puonc
hare
ital ^ the c
More
<
utility company; would be able to than so% of the outstanding shares had manner any occupation and will
■
.
-v*
- * been bought by 21,229 parties in France
.
8 Hallberg, The Suez Canal,- Ch. XIII upon thenote 7, atissue in 1853.p.Hailberg, Affairs, (1953), The Suez Canal p. 161.
original p. 158 and
_ 10 Schonfield,
in World
<1931).
.
op. ciU
240.
p. 73 an|l note
Company was accorded a of the
standing as one of the parties to right of
the

•

Volume

185

Number 5640

in no way prejudice the
sovereign
rights cl Egypt. ;
v,%
.

under tne

This

Agreement

another

was

recognition by the Egyptian Gov¬

of this

terms

Treaty," ernment of the status of the Suez*
Canal Company as being some¬
Egypt
oc¬
curred during World War
II, but thing defferent from that of an
the Treaty and the
reoccupation ordinary
domestic
company
in
were terminated under the Evac¬
Egypt.
While there is a partial
uation Agreement of 1954,
pro¬
compliance
with
the
Egyptian
viding
that
all
British
forces Corporations Statute yet there is
would be withdrawn from
Egyp¬ also continued election by share¬
tian territory within 20
months, holders to represent the nations
the

reoccupation

that

the

Suez

Canal

Base

should

maintained on a war footing
by Egyptian and English civilian
personnel so that British forces

chiefly interested in the enter¬
prise and thus a continued rec¬
ognition of an interest or right
in

the

through

return upon an attack by
odtside power but would with¬

immediately
hostilities; the

terminate after
Britain

Agreement

seven

would

cessation

upon

when

years

take

away or dis¬
of her property then remain¬
in the Base.
Article VIII

pose

ing

the

two Contracting Govern¬
recognize that
the
Suez

Maritime

Canal, which

the

had

adminis¬

operation

been

true

British
June

later,

way
and

part of Egypt, is a water¬
economically, commercially
strategically of international
importance, and express the de¬
termination to uphold the Con¬

guaranteeing the freedom
navigation of the Canal signed

Constantinople
October, 1888."
This

last

soil

1954,

of
to

and

operating

and

the

Egyptian

The

Throughout
the

the

entire

the

occupation

Government

likewise

the status ajio as to

excepting

observed

the servitude

for the benefit of the
Canal

period

users

only

of the

minor

the

modification

resulting from the
1947 Statute of Corporations

adopted

general law by

the

•

At least 40%

(1)

receive

least

with

payroll
Minister

dustry

discretion

Negotiations
of

Company
startled

with

between
and

Egypt

were

In¬

law

the gov¬
the Canal

immediately
the

how

Company sould comply with this
tions

lengthy negotia¬
agreement or convention
After

stature.
an

reached

was

Com¬

the"

between

and the government and on

pany

March

1949, this convention
ratified
by
theEgyptian

was

Parliament.

convention

This

modifications

three

:;v'.r

statute:

the

with

this

:v;

(1) The company was to Egyptianize
so

its

gradually
the
1947

'personnel
conform

.'as : to

statute before the end of the Con¬

cession in 1969, except as to

pilots

maritime personnel.

and

The

(2)
which

consisting

been 32 in

French¬

1G 3ritons, 1 Dutchman, and
Egyptians was changed so that

men,

the

future

there

would

Dutch¬
man, 1 American and 4 Egyptians
immediately with three more to
be added by 1964. Thus the Board
Frenchmen,

Directors

in number."

10 Britons,

was

au-'

administrative

Govern¬

Corpora¬

properties

Egypt

began

and

administration of the operation of
the Canal.

increased

is submitted

left

question

The decree does not

interfere
the

from

that this decree

important

with

of the

users

Canal

right which they theretofore
enjoyed
but
to
take
over
the
any

"money, rights and obligations of
the
c o m p a n y."
Consequently
there would

with

enjoyed by the
—the

of the Canal
includes

representa¬

some

administration

the

servitude

which

have

intent

the

users

servitude

tion

to be

seem

interfere

the

operation of the Canal. The
instrumentality through which the
servitude
taken

implemented being
possibility con¬

was

away,

the

templated
not

Convention

the

"limited

Acts

Universal

the

that

tude includes any such

III

servi¬

proceedings
before
is denied, the sig¬

nificance of the Tonnage
of

ence

1873

and

Government

000

Egyptian pounds per year and
Canal
was
to
be
exempt
from .-toll

small scale shipping on the

charges.
use

the

This
small

made it possible
Egyptian boats to

the Canal with

eration

agreement

the

under

words

Public

action,

International

clear

that

such

Cor¬

nor

annual

sav¬

ing of 50,000 Egyptian pounds
year to Egypt.

per

recognition
in

the

users

legal

the

Canal

in¬

Canal
of

would

party

logue.
users

utility

well -recognized, ana¬

The
of

the

legal

istration-of

interest

service

company

the

op¬

judgment

the

operation

the

public
admin¬
of

the

Eisenhower

fres.

which the

a program

body begins to act on
the country and our people will be the
poorer."—President Dwight D. Eisenhower.
it

soon,

The

President, having no real "cause" for which
willing to "crusade," is finding it difficult to
transform his great personal
popularity into active
support in Congress.

he is

be
invoked
against
refusing to obey
a
of
the
International

Court of Justice.11 Such processes
seem
to constitute a pos¬

dis¬

given

being

many

"To date, this program has made little
progress
in the Congress. Unless that

How different

might be

he leading

were

movement back to real Americanism!

".-ii"

would

sible implementation, as a substi¬
for the Canal Company, of

tute

the servitude

the

Canal

enjoyed by the users
including the right

administration of the

oper¬

ation of the Canal.

Frohlich Co.

Maltz, Greenwald & Co.

Forming

Frohlich & Co., members of the

Offers Tilmore Shares

New

York

Stock

being formed

Exchange,
of May

are

29 with

Maltz, Greenwald & Co., of New offices at 135
foregoing, it seems
Broadway, New
reasonable to conclude that if it York City today (May 23) are of¬ York
City. -Members of the firm
should be granted that the pro¬ fering 50,000 shares of Tilmore will be Edward
Frohlich, general
prietary interests of the share¬ Corp. common stock at a price of partner, who will acquire a mem¬
holders of the Suez Canal Com¬ $5 per share.
bership in the New York Stock
Net proceeds from the sale of
pany
and the franchise of the
Exchange, and Max Corwin and
Company were legally subject to the common shares will be added Beulah Corwin limited partners.
the nationalization, yet the users to the company's general funds
of

the

Canal

continue

have

their legal interest as to the servi¬
for navigation of the Canal

and

will

be available for

corporate purposes,

tude

general

Silberberg Partner

.f::K\.,

Tilmore

Corp. is engaged in the
Silberberg & Co., 40 Wall Street,
business of. acquiring and operat¬ New York
City, members- of the
servitude to share in some effec¬
ing furniture businesses and
New
York
Stock
Exchange on
tive way in the administration of
through its Ohringer Home Furni¬
the operation of the Canal and
May 29 will admit Robert C. Pe¬
ture Division and its wholly owned
tersen to partnership. Mr. Peter¬
that such servitude by unilateral
subsidiaries, The Kobacker Fur¬ sen will become a member of the
action is
not legally subject to
niture Co. and A. Victor & Co.,
New York Stock Exchange.
nationalization.
Inc., operates a chain of eight
including

right

11 Marguerite
Higgins,
Tribune, Dec. 12, 1956.

part

the

Herald

Besser

has

added

staff of R. J. Steichen &

Roanoke

the

Company,

Building.

ANTONIO,

offices

wood.

Leon

Texas—Texas

West

510

Wild-

Schumacher

principal of the firm.

toys

and

dise.

furniture

time

ladies'

ANGELES, Calif.—Donald
has become connected

Co., 210 West

favorable

forma basis, the

pro

com¬

for

consolidated

net

income

Upon completion of the

rent

financing,
of

outstanding

the

value

company

ANGELES, Calif.

—

stock

common

5%%

vertible

and

par

Co.,
was

preferred stock.

of cancer?

future
You

Rosy? Free

hope! But

hoping isn't enough. Of every 6

Martin Stout With

3115 Wilshire Boulevard.
formerly with J. Logan &

your

How does it look?

con¬

Fred

Dillon, Union Securities

is looking into

capi¬
will

55,800

cumulative

man

cur¬

Colton has become affiliated with
Eastman

This

$709,-

251.

(Special to The Financial Chronicle)

LOS

the

months ended Jan. 31, 1957 had

consist of 522,000 shares of $1

With Eastman Dillon

presented.

are

and its subsidiaries

talization

Seventh Street.

intends

acquisitions from

whenever

opportunities
a

and

stores

make additional

Botzum

merchan¬

and

Tilmore is currently negotiating
the acquisition of other retail

(Special to The Financial Chronicle)

similar

clothing

also sold at the Buf¬

are

for

other

Men's

pany

Fernow

New

method, furniture, ap¬
pliances, radio and television sets,
furnishings,

With C. A. Botzum
LOS

Common¬

falo, N. Y. Victor stores.

State Investment has been formed
with

the States

floor coverings, home

apparel

Texas State Inv. Formed
SAN

instalment

Minn.—Daniel

been

stores

wealth of Pennsylvania. These re¬
tail outlets sell, primarily on the

(Special to The Financial Chronicle)

MINNEAPOLIS,

retail

York and Ohio and the

With R. J. Steichen

Americans who get cancer

Dempsey-Tegeler & Co.

year,

this

3 will die because science

(Special to The Financial Chronicle)

still has
LOS

Two With Coburn Firm

the

not

legal anomaly. <In Municipal Law
there

proposals, and

Administration believes to be in the best interests
of America.
"...
''-.7,',

inter¬

should

eventually,
postal deficit.

are now

gress

for

concerning

Canal

•

I submitted them to the Con¬

have

Nations

class- "

school children.

pending before
Congress. Early this year

the

Co.

administration

the

operation

the

any

Summary

terest

issues

that

The

United

our

among

eliminate,

"These

provision for automatic sanctions

matter

Law;

intends

Egypt

position.

other

the

others,

states
that
hand and Britain

arbitration

sideration

enjoyed

management
and
the
principal
users of the Canal and that con¬

by the users of the
Canal
cannot
subsequently
be
taken away by a unilateral denial
by

and

putes arise between the Egyptian

with

minimum of not less than 350,-

for

referral

1949

for

the annual

implementation.

one

the

national

adminis¬

the

poration Statute, is denied. Rights
once
multilaterally
recognized

Seven percent of the gross
annual profit was to be paid to

Egyptian

the

(3)

the

eral

possible

working out separate nego¬
tiations with the Secretary Gen¬

tration of the Canal, including the

and

such

building

pledged,

prosperous states catch up on

"The urge the
Congress to
adjust postal rates to reduce

World

Confer¬

denied,

nationalities

set

been

right then

denied, the significance of the

arbitration

report

France

and

the

significance of the 1858 allot¬
ment of shares in the Company

Napoleon

recent

Egypt

the

to be exercised?

now

denied

without

Canal

by our¬
legisla¬
other things:

"To support the
simple and
logical civil rights program we
now have
pending before the
Congress.
v

method of implementa¬
tion could be devised.

Canal

Company,"
through what instrumentality is
that represenative right as to the
administration
of
the
operation
If

the

are

help the less

rooms

;

some

by the duration,

Concession

Suez

the

Utility Com¬

users

possible

1888, providing that the servitude
was

take

the

From

has

Com¬

proposals. We

"To

exactly parallel method

not

significance of the representation

Directors

Board

had theretofore

number

compen¬

and

ately took possession of the Canal

of the Canal

promised

attached
to
the
Egyptian
Ministry of Commerce. The
Egyptian Government immedi¬

introduced

compliance

company's

V-

dis¬

are

right

the

determine

the

and

within three years.

must be made

ernment

total

or¬

now

tion

take

exceptions.

allow

Compliance

(3)

the

Commerce

65%

are

All

company

Authority

purport

(2) Seventy-five percent of the
personnel must be Egyptian and

State.

the creation of

of the Board

company

committees

r the

unanswered.

be Egyptians.

of Directors must

na¬

applying
all corporations operating
Egypt, providing as follows:
Parliament

Egyptian

Canal

rights and

shareholders,

thorized

mental

Egyptian

the

;

agency

Position

Former

the

decree

sation

13, 1956.

Egypt's

the

solved. ..."

forces

Suez

money,

transferred

troops -left

June

All

obligations

reaffirma¬

British

August,

British

The

—

Company, S.A.E., is

tionalized.

servitude.

Withdrawal

began

the 29th

obviously

the

ganizations

tion

Maritime

vention
of

decree:

"Article

Service

Public

or
is presently
exactly parallel

July

the

utility service
the instrumen¬

Public

implementing the legal inter¬

and

through

tive

Implementa¬

interest

mission, to regulate the operations
of the public utility companies.

complete
then six

was

"At home, our work has been outlined
our 1956
platform translated into

selves in

regulatory body on a World scale,
yet no necessity probably exists

26, 1956,
without notice or negotiation the
Egyptian Government announced

tegral

mission

legal
public

made

But

1956,

the

tality- of

the withdrawal

forces

13,

monopoly

the

from

No "Crusade" Without a "Cause"!

rea¬

Government

Unilateral Decision

Canal.

recog¬

Such

the

inception of the project.

above

been

years.

natural

Suez

users

est

weeks

in¬

tion

the

part" While

has

many

nature of the business, a reason
clearly applicable to the operation

Company

instrumentality

Canal

son

the

Canal

utility
for

legal interest is justified by

implemented

As noted

"The

Canal

public

r. ;9

(2421)

nized

servitude,

tration

stated:

ments

of the

users

might
draw

(

The Commercial and Financial Chronicle

become

associated

burn& Middlebrook,

with

no cure

Co-

has

become

associated

take lots of research to find that

Pitch in and

cure.

West

generous

who

for them. It will

ANGELES, Calif.—Martin

Stout

with Dempsey-Tegeler & Co., 210

(Special to The Financial Chronicle)

WORCESTER, Mass. — Francis
S. Kelly and Peter L. Mavraides
have

Seventh
has

been

Street.
in

the

Mr.

Stout,

investment

"Cancer'* in

care

business in Los Angeles for many

Incorporated,
390 Main Street.
Mr. Kelly was
formerly with Hemphill, Noyes &

years,

Co.

joined Dempsey-Tegeler's staff.

son,

was

formerly with

Shear-

Hammill & Co.

Arthur

Benson

has

also

help. Send

check right

now

of your

local Post Office.

American Cancer Society

I
I
T

The Commercial and Financial

Apache Oil Corp., Minneapolis, Minn.
25 filed 50,000 shares of common

March

Co.,

Philadelphia, Pa.
class B common stock (par
10 cents). Price—$2.25 per share.■ Proceeds—For work¬
ing capital. Underwriter—J. A. Winston & Co., Inc., New

York.

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 shares held. Price—$3.50 per share. Pro¬

of common
Proceeds—
equipment,
inventory material, etc.; and for additional working
capital. Office — 4142 Howard Ave., Kensington, Md.
Underwriter—Williams, Widmayer & Co., Washington,
C.

,.t>

Office—107-109 South Willow,
Underwriters—Stevens, White & McClure,
Inc., Tampa, Fla.; French & Crawford, Inc., Atlanta, Ga.;
First Florida Investors, Inc., Orlando, Fla.; Pierce, Carrison, Wulbern, Inc., Jacksonville, Fla.; and J. Herbert
Evans & Co., St. Petersburg, Fla.
>
expansion.

ceeds—For

Tampa, Fla.

;•

Agricultural Equipment Corp.
1 (letter of notification) 500,000 shares of com¬
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.,

April 25 (letter of notification) 19,854 shares of common
stock (par $5) to be offered to stockholders of record
May 30, 1957 on a basis of two new shares for each 11
shares held; rights to expire July 30, 1957. Price—$11

Denver, Colo.

per

Air

Products,

Inc., Allentown,

April

—

Underwriter—The First Trust Co.

Offering—Expected this
Allied

Products

week,

of Lincoln, Neb.

American Fire &

Casualty Co.
May 1 (letter of notification) 12,060 shares of capital
stock (par $5) being offered to stockholders of record
May 17

the basis of

one new

share for each 15 shares

held

(with an oversubscription privilege); rights to expire June 3, 1957. Price—To stockholders, $23 per share;
to public, $24 per share.
Proceeds—To increase capital
and paid-in surplus.
Office—307 S. Orange Ave., Or¬
lando, Fla. Underwriter—Goodbody & Co., New York,
N.

American Hardware Corp.
April 8 filed 118,000 shares of common stock (par $12.50)
being offered in exchange for common stock and class B
common stock of Kwikset
Locks, Inc., at the rate of one

chare of American Hardware for each two Kwikset
mon

and

55,500

chares for

150,000

ctock. The

offer

American

Hardware
of Kwikset class B

com¬

common
common

conditioned upon its acceptance of
of the issued and outstanding Kwikset
common and class B common shares
by June 28.
Under¬
writer—None.
not less than 85%

Oil

Bonanza

Feb. 11

* Bonded Contracts &

•

Ames (W. R.) Co., San Francisco, Calif. (6/4)
May 13 filed 50,000 shares of capital stock (par $2). Price
To be supplied-by amendment. • Proceeds
Together

—

funds, from

insurance

private

sale

$500,000

notes

firm, to retire bank loan; for expansion and

'(\ :/.//;

Boston

Edison

(6/4)

Co.

r>-

present facilities and other corporate purposes.

Under¬

writer—None.

Mines, Inc., Kings Mountain, N. C.
679,469 shares of common stock, of which
283,676 shares .are to ,be offered for subscription by
stockholders at the rate of five additional shares for each
Carolina

March 29 filed

held; and the remainder will be offered to
Price—At par ($1 per share).
Proceeds—

four shares
the public.
To

loans, for exploration and development work,
capital. Underwriter — None.

repay

construction and working

A. S. MacCulloch of Vancouver,
dent and

B. C., Canada, is Presi¬

principal stockholder.
Public

Vermont

Service Corp.

(5/27)

••

(par $6).
Price—To be supplied by amendment. Proceeds—To re¬
pay short-term borrowings and for construction program.
Underwriter—Hallgarten & Co., New York.
125,000 shares of common stock

ir Chess Uranium Corp.
\
.
May 14 (letter of notification) 600,000 shares pf common
stock (par $1—Canadian).
Price—50 cents per share.
funds). Proceeds—For exploration costs, etc. Of-

iiJce-T-5616 Park Ave., Montreal, Canada. UnderwriterJean R.

stock

$20

Veditz Co., Inc., New York.

Corp.

(letter of notification) 5,000 shares of common

(par $1). Price

—

At market (estimated at about

share). Proceeds—To Emory T. Clark, President
Office—8530 W. National Ave., West AJlis,
Underwriter—Loewi & Co., Inc., Milwaukee, Wis.

per

of company.

Wis.

Yazoo City, Miss.

series

F, due 1987. Proceeds—To retire bank loans and for con¬
struction

program.

Underwriter—To be determined by

competitive bidding. Probable bidders: Halsey, Stuart &
Co. Inc.; The First Boston
riman Ripley & Co. Inc.;

pected to be received up

Corp.; Lehman Brothers; HarWhite, Weld & Co. Bids—Ex¬
to noon (EDT) on June 4.

April 8 (letter of notification) 21,818 shares of common
stock (par 50 cents). Price—$13.75 per share. Proceeds
—For
working capital.
Office—24 Maplewood Ave.,

Philadelphia 44, Pa. Underwriter—Drexel & Co., Phila¬
delphia, Pa. No public offering expected.
tAt Brevilana, Inc.
May 3 (letter of notification) 30,000 shares of common
stock. Price—At par ($10 per share). Proceeds—To pro¬
duce and film three screen plays.
Office—9121 Sunset

Blvd., Los Angeles 46, Calif. Underwriter—None.

^Ar Bridgeport (Conn.)
May

17 filed
offered

the basis of

Proceeds—To re¬
tire bank loans (presently outstanding $600,000) and for
general corporate purposes. Underwriters—Smith Ram¬
say & Co., Inc., Bridgeport, Conn.; and Chas. W. Scranton & Co., New Haven, Conn.

Price—To be supplied by amendment..

^ Brown Fund of Hawaii, Ltd., Honolulu, Hawaii
May 20 filed (by amendment) 100,000 additional shares
of common stock (par $1). Price—At market. Proceeds
investment.

Co., Corsicana, Tex.

ir Brunswig Drug Co.
(par $1)

offered to

officers and key em¬
Price—For 15,150

ployees pursuant to stock option plan.

shares, $15.52 per share.. Office—4701 S. Santa Fe Ave.,
Vernon, Calif. Underwriter—None.
C & D Batteries, Inc.

(letter of notification)

14,000 shares of com¬

(par $10) to be offered for subscription by
stockholders and employees.
Price—$12.50 per share.
mon

per

share).

Cedar Rapids, Iowa
April 17 filed $7,917,000 5% convertible subordinated de¬
bentures due June 1, 1977, being offered for subscription
Radio Co.,

Collins

by class A and class B

common

stockholders of record

May 14, 1957 on the basis of $100 of debentures for each
19 shares of common stock held; rights to expire on May
Price—At par.

28.

Proceeds—To reduce bank loans of

and subsidiaries and for working capital. Un¬
derwriters—Kidder, Peabody & Co., and White, Weld &
Co., both of New York.
Colonial Aircraft Corp.,

Sanford, Me.

shares of common stock (par 10£),
to be issued upon exercise of warrants to purchase the
following number of shares and held as follows: Glick
March 29 filed 250,000

Co., Inc., underwriters

of original offering, 140,000

shares; and by three individuals 110,000 shares. Price—
Shares to be offered at market. Warrants are exercisable
at 10 cents per

warrant.

Proceeds—From sale of shares
Underwriter—None.

Columbia Gas System,

Inc.

(6/6)

May 8 filed $20,000,000 of debentures,
Proceeds—For construction program.
determined

ders:

series H, due 1982,
Underwriter—-To

by competitive bidding.

Probable bid¬

Morgan Stanley & Co.;
Pierce, Fenner & Beane and White, Weld
(jointly). Bids—To be received up to noon (EDT)

Halsey* Stuart & Co. Inc.;

Merrill Lynch,
& Co.
on

June 6.

yjst.

Comanche Creek

Oil Co.

(letter of notification) 75,000 shares of common
Price—^At par ($1 per share). Proceeds—For oil

March 14

stock.

Office—1848 South Elena Ave., Re-

Beach, Calif. Underwriter—Samuel B.
Co., Los Angeles, Calif. Offering—Postponed.

Franklin

one

April 29 (letter of notification) 16,350 shares of common

March 28

($25

dondo

cent). Price—At market. Total offering
to exceed $300,000. Proceeds—To selling stockhold¬
Office—1400 East Jefferson Ave., Dallas, Tex. Un¬

stock

par

operate facilities for manufacture

drilling expenses.

Manufacturing Co.

April 10 (letter of notification) 82,500 shares of common

(par

and

to sellers of warrants.

Gas Co.

34,572 shares of common stock (no par)
for subscription by common stockholders
one new share for each seven shares held.

Browne Window

construct

company

Corp.

Brantly Helicopter

Price—At

materials.

May 7 filed $25,000,000 of first mortgage bonds,

stock

it:vv v;

v
-

•

Inc., Topeka, Kan. ; .
March 25 filed $1,000,000 of five-year 4% first mortgage
bonds," series six, and $3,000,000 of 10-year 5% first
mortgage bonds, series seven. Price—At par. Proceeds—
To redeem outstanding bonds and for improvement of
Capper Publications,

Coastal Chemical Corp.,

Bldg., Spokane 4, Wash. Underwriter

derwriter—Wm. B. Robinson &

Houston, three of the 22 directors, are
Chairman, Vice-Chairman and President, respectively.

of this Massachusetts

the general partners

are

Proceeds—
of
anhydrous ammonia. Underwriter—Mississippi Chemical
Corp.; Yazoo City, Miss.
/
/ ! / • ;
; r
■ r
/

par.r

Office—400 Hutton

cent). Price—$2 per share.' Proceeds
capital and general corporate purposes.

with

Mass.,

Proceeds—For working capital.

Price—At

$100).

not

the rfite of

May 1 filed 150,000 shares of class C common stock to
be offered for sale to farmers and other users of fertilizer'

ers.

Edmonds,

present ,limited partners at

•

$1,000 unit for each $51,000 of his present investment;
Price—$1,000 per unit. Proceeds —#0
construct plant; to purchase machinery and equipment;
and to reduce outstanding demand notes. Business—Pro¬
duces electro-dynamic shaker and other vibration test
equipment. Underwriter—None. Robert C. Lewis, Philip
C. Efromson and Thomas Gouzoula, all of Winchester,

Investments, Inc.

Feb. 15 filed 50,000,000 shares of common stock

Office—Dallas,
Co., J. D. Grey
Dallas, and C. L.

Mass.

(letter of notification) $225,000 of 6% 10-year
class A debentures and 750 shares of common stock (par

April 26

stock

Tex.' Underwriter—Peoples Securities
of New Orleans, John S.
Tanner, of

be offered first to

March 22

Co., Inc., New York, N. Y.

then to public.

Clark Oil & Refining

(letter of notification) 71,710 shares of common

Underwriter—None.

one

Corp., Sutherlin, Ore.

Mine

.•

(par 10 cents). Price — 75 cents per share.
Pro¬
ceeds—To go to selling stockholder. Underwriter—L. D.

Plan.

—

25,000 shares of

stock

—For

(par one
For working

Offer¬

York.

Co., Inc.

ing—Expected this week.

A American Petrofina, Inc., New York
May 17 filed 15,000 shares of class A common stock, to
be offered under the
corporation's Employees' Stock
American Provident Investors
Corp.

stock (par $1).

—None.

Price—At market, (estimated at
$8 per share). Proceeds — To four selling stockholders.
Underwriter—Ralph E. Samuel & Co., New York. Offer¬

Florida, Inc. (6/3-15)
May 1 filed 130,000 shares of class A common stock (par
$1) to be offered to stockholders of record about June 3,
1957; rights to expire about June 18. Price—$11.50 per
share.
Proceeds—To retire bank loans, for expansion,
inventory purchases, to pay current accounts payable
and for working capital. Business—Manufactures build¬
ing materials and electrical appliances. Office — St.
Petersburg, Fla. Underwriter—AtwiLl & Co., Inc., Miami
Beach, Fla.
•

Friedman

Allied Finance Co., Dallas, Texas
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¬
ital.

&"■

and
Sts.,
^r^

machinery, equipment, inventories
Office — Washington and Cherry

/ Calidyne Corp., Winchester,

Central

-C
(two letters of notification)

common

For

May 7 filed

Proceeds—To three selling stockholders.

Benrus Watch

common

President.

Ala.

Co., Inc.

ing—Expected this week.

Corp., Pasadena, Calif.

shares of

184,000

To increase capital and surplus

Underwriter—L. F. Rothschild & Co., New

stock, of which
92,000 shares are to be offered to public and 92,000 shares
issued to promoters. Price—To public, $1 per share; no
proceeds from sale to promoters. Proceeds—For general
corporate purposes.
Business—Purchase and resale of
oil fruits grown in Brazil and other countries. Under¬
writer—None. LeRoy R. Haynes, of Pasadena, Calif., is
May 3 filed

—

312 N. 23rd St., Birmingham 3,

April 29 (three letters of notification) 12,500 shares of
common stock (par $1).
Price—At market (estimated at

New York; Drexel & Co., Philadelphia, Pa.;
and Laurence M. Marks & Co., New York.
/.
All America Expansion

—

Benrus Watch

Inc.,

Co.,

Office

$8 per share).

—

REVISED

ITEMS

May 1 filed $1,250,000 of Limited Partnership Interests

Underwriter—None.

subscription by common stockholders of
record May 24, 1957 on the basis of one new share for
each six shares held; rights to expire on June 10. Price
—To be supplied by amendment. Proceeds—For general
corporate purposes, including retirement of bank loans
and for capital expenditures. Underwriters—Reynolds &
offered for

Proceeds

share.

accounts.

Pa. (5/24)
May 1 filed 170,160 shares of common stock (par $1) to
•

Marine Insurance CoJ>

Fire &

Bankers

March

mon

•

Thursday, May 23, 1957

Limited Partnership. -;>«/

Inc., Tampa, Fla.

Merchandising,

Automatic

April 4 (letter of notification) 100,000 shares
stock (par 10 cents). Price—$1 per share.
For
leasehold
improvements; purchase of

Credit Corp.,

Atlas

May 3 filed 680,000 shares of

Engineering Corp.

Acme Tool &

Underwriter—APA,
Minneapolis, Minn.

general corporate purposes.

Inc., another subsidiary,

Riverdale, III.
May 1 filed 396,079 shares of common stock (par $10)
being offered for subscription by common stockholders
of record May 21, 1957 on the basis of one new share for
each six shares held; rights to expire on June 5. Price—
$29.50 per share. Proceeds—For expansion program. Un¬
derwriters—Blyth & Co., Inc. and Merrill Lynch, Pierce,
Fenner & Bcane, both of New York.
Steel

Acme

and future drilling programs;

tory of leases for present

two months.

(par

stock

Price—$6 per share. Proceeds—For investment
stock of APAF Co., a subsidiary; to carry an inven¬

and for

Proceeds

Conshohocken, Pa.

$2.50).

Offering—Expected in about

Underwriter—None.

•

working capital.

Francisco, Calif.

April 18 filed 750,000 shares of common stock (par 50
cents) to be offered for subscription by military, Na¬
tional Guard, active, retired or reserves, personnel and
not to the public at large. Price—$1 per share. Proceeds
—For operating capital.
Office — Colorado Springs,
Colo.

Underwriter—Dean Witter & Co., San

working capital.

Insurance Co.

Life

Academy

...

* INDICATES ADDITIONS
.SINCE PREVIOUS issue

v£'V-:■*

Securities Now in 'Registration

•

Chronicle

(2428)

—.......

—

.'>,•»

Comico

Corp., Memphis, Tenn.

May 2 filed 750,000 shares of common

stock; Price—$2

share. Proceeds—To construct mill; for payment on
mining leases and royalty agreement. Underwriter—
Southeastern Securities Corp., New York.

per

Community Public Service Co.

(5/28)

April 25 filed $3,000,000 first mortgage bonds, series E,
due 1987. Proceeds—To refund bank loans and for con¬

struction

program.

Underwriter—To be determined by

competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Salomon Bros. & Hutzler; Blair & Co. In-?
corporated. Bids—To be received up to ll a.m:.'(EDT)
on May 28 at 90 Broad Street. New York, N. Y.

Volume

185

Number 5640

The Commercial and Financial Chronicle

(2429)
v».

•<£.;•

Consolidated Natural Gas Co. (6/11)
May 9 filed $25,000,000 of debentures due June 1, 1982.
Proceeds—For
—To

1957

construction program.

•

*•"

■*><*

'it*

■

''*-1

||»£

>| 0

SUE

Underwriter

determined

by competitive bidding. Probable
Halsey, Stuart & Co. Inc.; White, Weld & Co.
and Paine, Webber, Jackson & Curtis (xointly)j Morgan,

May

Reading Co.

Stanley & Co. and the First Boston Corp. <jointly); Bids
be received.; at Room 3000,a30 Rockefellers
Plaza,

'tVfctcV*

(EDT)

>>»>

June 11.

'cConticca International Corp., Chicago, III.
March 13 filed 558,100 shares of class A common stock
(par $1). Price—$5 per share. Proceeds — To discharge
current notes payable, including bank loans, and long
term debt in the total sum of approximately $1,030,000;
for new equipment; and for working capital.
Under¬
writers
Allen Shaw & Co., 405 Lexington Ave., New

Air

June

Equip^Trust
EDT)

noon

$2,465,000

■

Ctfs.

and

Laurence

Marks &

& Co.;
170,160 shares

Co.)

1
-t

VP)S>- HHulme,., Applegate & .Humphrey,

(Offering

to stockholders—no

Consolidated

•

^ May 27 (Monday)
(Hallgarten &

Co.)

125,000

(Landrum Alien

May 29, 1957 at the rate of one additional
held; rights to expire on or about
June 20.' Price—-$30 per share. Proceeds—For expansion
program and machinery and equipment. Underwriter—
Courts & Co., Atlanta, Ga.

Gulf, Mobile & Ohio RR.__/

share for each share

(Bids

Quinta Corp.
(Frederic

Hatch

M. Lister & Co., Boston, Mass.
v.

National Fuel

;

'..-/v "ii

"'vV-

•;

(Bids

".V*"

(A.

Tennessee

31, 1957 to be offered in denom¬
inations of $100 to present stockholders, officers and
employees of the corporation at rate of 3/10ths of a share
new

stock

for

each

held

and

$300

EDT)

a.m.

11:30

Gas

Wabash RR.

struction

purposes

in Shamrock, Fla.

Office

—

EDT)

a.m.

$15,000,000

Maplewood, N. J.

»j

Bonds

•

(A.

•

189,600

Ogle Telephone Co.
April 25 (letter of notification) 22,025 shares of common
stock to be offered to stockholders of record May 1, 1957
on

the basis of

one new

share for each

rights to expire June 14, 1957.
share).

Proceeds—For

112 W. Elm

seven

Price—At

(Offering
,«

Gas

com.

($10 per
construction program. Office—

St., Sycamore, 111.

•<"

mon

shares held and

one

share for each three preferred

shares held; rights to expire on June 12, 1957.

Price—To
supplied by amendment. Proceeds—For corporate
purposes.
Underwriter—Dominick & Dominick, New

York.

each

three shares held

May 27.

subscribe.)

May 31

pay

agreement

portion of the cash requirements under the
to purchase WNEW.
Underwriters—Kuhn,

Loeb & Co. and Carl M. Loeb,
New

Rhoades & Co., both of

York, for 231,012 shares.

Continued

page

(Bids

Co.)

•■•/ V

$250,000

Debentures
■/,'
'77

...

Allyn & Co.,

Inc.) $15,000,000

EST)

a.m.

Bonds

$30,000,000

Co.

Debentures

invited) $10,000,000

(Tuesday)

EDT)

a.m.

200,000

Common
'

Preferred

(May be Morgan Stanley & Co.;.Drexel & Co.; and
Glore, Forgan & Co.) $25,000,000

Southern Bell Telephone &
Telegraph Co
7

(Bids to be Invited)

June 24

.//.,'/•

(Offering

.Common

(Monday)
Bonds

stockholders—underwritten by
'I,.'.

Courts

June 3

'■"> >**>><<

The

!»(»•>

<"-* t

Atwill

(Bids

Stirines

(Hugo)

Co., '^

(Bids

noon

^Debentures

p.m.

Southern California

$2,400,000

Co.)

50,000

Securities

stockholders—underwritten

Corp.

and

First

Southwest

Heritage Petroleum Corp..
(Kuhn,

Loeb

Co.

Corp.)

$2,400,000

agent)

$4,181,250 *

100,000 shares

(Wis.)

CDT)

a.m.

EDT)

a.m.

June 5

(Bids

act

(Bids

Southern California Edison
First

Co.

Boston

Corp.

and

Morgan
shaxes

Co..

Stanley

Bell

Co.)

invited)

Columbia

Gas

General

noon

(Thursday)
Equip. Trust Ctfs.

about $9,000,000

(Wednesday)

(Bids

invited)

Precision
to

(Wednesday)

Louisville Gas & Electric Co
(Bids

Goldman,

invited)

Georgia Power Co
'Bids

Duke

194,200

invited)

September 11

(Bids

$15,500,000

$50,000,000

Trane Co.

Common
150,000 shares

(Wednesday)

to be invited)

October

..Debs. & Stk.

(Bear, Stearns & Co. and Hemphill, Noyes & Co.) $8,000,000

Barney & Co.)

Bonds
be

New Jersey Bell Telephone Co

Bonds

Northern Ontario Natural Gas Co

(Smith,

(Tuesday)

(Bids to

Corp.___Preference

stockholders)

EDT*

Power

Debentures

:
a.m

Bonds
$15,000,000

$20,000,000

Equipment

common

Debentures

$50,000,000

(Thursday)
EDTl

$4,965,000

Bonds

September 4

System, Inc

(Bids

to be invited) $18,000,000

September 10
June 6

V "

Co.)

Common

51,000

Telephone Co. of Pennsylvania

Preferred
&

Witter

stockholders—underwritten
Sachs

...Bonds

$15,000,000

Equip. Trust Ctfs.

July 31

'
\

1,200,000 shares

Z5''

(Wednesday)

July 25

Vanadium-Alloys Steel Co
(Offering

EDT)

a.m.

(Bids to be invited)

609,815

Dean

Southern Pacific Co

$8,125,000

Bonds

$20,000,000

underwriters)

Common

stockholders—Drexel

Co.

(Tuesday)

Tampa Electric Co

Philadelphia Electric Co
(Offering

Bonds
about $20,000,000

Great Northern Ry

Bonds

CDT)

(Bids

noon

Jersey Central Power & Light Co

Commas

1,000,000 shares

EDT)

a.m.

$30,000,000

(Wednesday)

July 17

(Wednesday)

Belt

Debentures

invited)

/' 7

$10,000,000

General Telephone Co. of California
(Bids

July 16

Indiana Harbor

(Tuesday)

(Bids to be invited)

Bonds

Virginia Electric & Power Co.
(Bids

217,286 shares

'•

Northern States Power Co.

(Friday)

West Penn Power Co

Common

Bonds
$35,000,000

Common

July 10

Union

Debentures & Stock

act

Common

Dallas

(Hemphill, Noyes & Co. and Parrlsh & Co.)

(Bids

Gas Co
be invited)

Wisconsin Telephone Co.

$25,000,000

(Bids

July 9
Bonds

EDT)

noon

Tampa Electric Co.

First National Bank of Fort Worth__._
(Offering

530,712

(Thursday)

(Offering to stockholders—may be underwritten)

Common
&

Boston Edison Co
(Bids

EDT)

June 28

Equip. Trust Ctfs.

EDT)

Co
Witter

!.„.^4.-T-,Coramon

Corp..

June

Bonds

$20,000,000

(Tuesday)

Alabama Great Southern RR

(W. R.)

EDT),

3:45

(Bids

Ames

noon

"'v.: 7

(Johnston, Lemon & Co.) about $500,000

(Bids

(Tuesday!-*

Puget Sound Power & Light Co

Government Employees Corp,.J.„-«

June 4

$120,000,000

■

(Monday)

stockholders—underwritten
Inc.) 130,000 shares

Corp.)

June 25
'

Allied Products of Florida, Inc.—CIass A Common
(Offering

Boston

■

;

First

Co.)

/■; v-//

Common

(Offering to stockholders—may be underwritten by

Common

■'143,298
I

$15,000,000

First National City Bank of New York

900,000 shares

■' i

.Debs.

$70,000,000

Delaware Power & Light Co

(Friday)

(Offering to stockholders—no underwriting)

(Offering

^Emerald Oil Co., Inc., Wartburg, Tenn.
May 13 (letter of notification) 500 shares of capital
stock.
Price—At par ($100 per share).
Proceeds—For
working capital. Address—c/o Vincent Robert Lorffler,
President, Route 1,-Wartburg, Tenn. Underwriter—None.

Preferred

Milwaukee

(Bids

)

Continental Gin Co._.

(The

if Duquesne Light Co.
May 22 filed 265,000 shares of common stock (par $10).
Proceeds—To Standard Shares, Inc. Underwriter—To be
determined by competitive bidding.
Probable bidders:
Blyth & Co., Inc., and Merrill Lynch, Pierce, Fenner &
Bean (jointly); Kuhn, Loeb & Co. and Smith, Barney &
C. (jointly); The First Boston Corp. and Lehman Broth¬
ers
(jointly); Kidder, Peabody & Co., Stone & Webster
Securities Corp. and White, Weld & Co. (jointly).

(Monday)

(Bids to be invited)

Du Mont shares to which it is entitled to

the* remaining 281,889 shares, 270,147
shares, together with $2,932,087.25 cash, were used to
purchase all the common stock of WNEW Broadcasting,
Inc. and 11,742 shares were issued to discharge certain
of WNEW's liabilities.
Price—$7 per share. Proceeds—

/)E quip. Trust Ctfs.

$6,450,000

Public Service Electric & Gas Co

Bank of Montreal

Gulf States Utilities Co
7

(Steven Rgndall & Co.,,Inc.) $300,000

May 10; rights to expire on
(Paramount Pictures Corp. has agreed to pur¬

chase 83,800

..Common

Moore Products Co

/Du Mont Broadcasting Corp., New York
April 18 filed 596,701 shares of capital stock (par $1),
of which 314,812 shares are being offered for subscrip¬
tion by stockholders at the rate of one new share for

v
,

employees—underwritten

White, Weld & Co.) 58,067 shares

(Dean

Dorr-Oliver, Inc. (5/29)
May 7 filed 173,970 shares of common stock (par $7.50)
to be offered for subscription by stockholders of record
May 29, 1657 on the basis of one share for each six com¬

June 18

Common
and

Lake Lauzon Mines, Ltd

Underwriter—None.

^ Dominion Resources Development Co. (5/27)
May 10 (letter of notification) 298,000 shares of com¬
mon stock (par 10 cents).
Price—$1 per share. Proceeds
—For exploration and development; road improvement;
general corporate purposes and working capital. Office
—1129 Vermont Ave., N. W., Washington 5, D. C. Under¬
writer—Landrum Allen & Co., Inc., Washington, D. C.

stockholders

shares held;

par

invited)

Montana-Dakota Utilities
:

•

•,,,

Debentures & Common
and

Hornblowcr

■

Intermountain

May 7 filed 631,925 shares of

DeKalb &

Common
by

Michigan Consolidated Gas Co

$3,160,000 debs,

underwritten

Fairbanks, Morse & Co

Common

Intermountain Gas Co
Weld & Co.)

(The

(Bids

(Wednesday)

Water

t.\

$6,615,000

—

484,276

Ryil^

June

Consolidated

(Offering to stockholders—underwritten by Dominick
Dominick) 173,970 shares ,,

(White,

Weeks)

(Bids

Common

Equip. Trust Ctfs.
EDT)

noon

/May 29

Daybreak Uranium, Inc., Opportunity, Wash.
/
common stock
(par 10
cents). Price —At market (approximately 53 cents per
share). Proceeds—To selling stockholders. Underwriter
Herrin Co., Seattle, Wash.

Bonds

June 13 (Thursday)
/

—

Underwriter—Roth & Co.,

(Wednesday)

.—

Dorr-Oliver Inc.

Cougar Mine Development Corp.
•
(letter of notification) 560,000 shares of com•mon stock (par one cent).
Price — 50 cents per share.
Proceeds
For diamond drilling on company's land?,
prospecting expenses, working capital and other corpor¬
ate purposes. Office—83 Campfield St., Irvington, N. J.

191,660 shares

Transmission

Laurel,

March 15

$3,000,000

Underwriter—None.

■

u^iiI./..^Debentnwi

Allyn & Co.)

(Bids

Price—Of stock, $15 per share;
of debentures at face amount.
Proceeds—For con¬

Miss.

and Carl M. Loeb. v
,

(Offering to stockholders—co

(Stone & Webster Securities
Corp.; White, Weld & Co.;
and Halsey, Stuart & Co. Inc.)
$50,000,000

debentures

Corp.; .Dean Witter & Co.;

'
v/'>, ;
;• (Bids 11 a.m. EDT) $30,000,000
Timken Roller Bearing Co

7-iit^

...Debentures

Norfolk & Western

for each 100 shares held.

and

Bonds

New York Shipbuilding
Corp.™:

debentures dated March

Gas Co..

(Bids

Turpentine & Rosin Corp.
(letter of notification) 11,400 shares of capital
(par $5) and $125,000 of 20-year 5% subordinate

stock

Co..^

Michigan Wisconsin Pipe Lfne Co
:

Continental

March 12

Gas

-L7k:;7

(Tuesday)

Community Public Service

" !r:

« (Tuesday).

Natural

...

May 28

April 24 filed 400,000 shares of common stock (par 10
cents). Price—$1 per share. Proceeds—^For exploration
and development of properties. Underwriter —- Leward
.-j*-

Co.,
& Co., Inc.) $1,700,000 of
.../':
shares of common stock

Stroud

170,000

June

Common

,\-i

shares;
& Stk..

-■/

$298,000.

Co.; Iric.; Clark, Landstreet &
Kirkpatrick, Inc.; and Minor, Mee & Co.) $350,000

Corp., Paterson, N.J.

225.976

Milwauke

.7)^Bids 11:30 a.m. EDT) $25,000,000 Vf) y . 7^, ;•
Industries Corp.__^i_.>.__^i_._/.^_Common
,

/..Equip,. Trust Ctfs;
$3,030,000
*
"r

invited)

and
and

Inc.;, The

Rhoades & Co.) 900,000 shares:j. ; '
'
New York Central RR
...^...Equip. Trust Ctfs.
7
./•: ;;7'- ;'7 "
(Bids lioon EDT) $6,450,000
' -7/,.. ;/7;

____

(The First Boston

Co., Inc.)

Kaiser

Dominion Resources' Development' Co.'/

of record about

Central Vermont Public Service
Corp.___Common

• Continental Gin
Co., Birmingham, Ala. (5/31)
April 30 filed 143,298 shares of common stock (no par)
to be offered for subscription by Common stockholders

Continental Mines & Metals

—

Y(9rk f17, N". Y.; and Shaw & Co., San Marino, Calif.

Co.

WMWM-Jurt«

Debentures
$2,017,300 {

(Offering to stockholders—no underwriting)

Ohio

debentures

' •
.••WU'

underwriting) 6,105 shares

Spalding (A. G.) & Bros., Inc.

The

''Hartford Special Machinery Co/i/ZiL/ii/i.Commori:-

Common

Reading & Bates Offshore Drilling Co._iDebs.

stockholders—underwritten'by Reynolds

Co.;

-r' >»♦

(Offering to stockholders—may be negotiated)

Products, Inc.—

(Offering to
''Drexel

(Monday)

,f
(Bids noon EDT) $19,000,000
Portland Gas & Coke Co.^.i___

kit

-V.W\

(Friday)':

Metropolitan Edison Co.^_j_L—j:^_.^I.i./..Bonds

■'.■•"Hy

May 24

j!*, y
KM.*'.

CALENDAR

(Thursday)

—

(Bids
■

—To

New York 20, N. Y., up to 11:30 a.m.

•

*>'»>

•

bidders:

a 5'B

Debentures

$30,000,000

(Tuesday)

Utah Power & Light Co
(Bids

Utah Power
'7

(Bids

Bonds

invited)

$15,000,000

Common

Light Co
to

Invited)

400.000

The Commercial and Financial Chronicle

Thursday, May 23, 1957

...

(2430)

Continued from page

.....

....

„

Engelberg Huller Co., Inc.
6 (letter of notification) 4,084 shares of common
(par $10) to be offered for subscription by stock¬
holders of record May 15, 1957 on a 3-for-10 basis; rights
May

stock

Price—$25 per share. Proceeds—For
expansion of belt grinder division. Office—831 West Fa¬
yette St., Syracuse, N. Y. Underwriter—None.
expire June 15.

America, Philadelphia, Pa.
May 14 filed $375,000 of 10-year 6% debentures due
March 1, 1967; 3,750 shares of 7% cumulative preferred
stock (par $100); and 7,500 shares of common stock (par
$1) to be offered in units of $500 of debenture, five
shares of preferred stock and 10 shares of common stock.
Price—$1,010 per unit. Proceeds—Together with other
funds, to purchase, directly or through subsidiaries,
drive-in theatres; to acquire othen properties, etc.; and
for working capital. Underwriter—None*
if Eric Corp. of

Famous

Virginia Foods Corp., Lynchburg, Va.

April 29 (letter of notification) 12,640 shares of common
stock (par $5) and $100,000 of convertible 6% deben¬
tures due 1967 of which 7,000 shares of common stock
and $70,000

debentures are to be offered in units of $500
and 50 shares of common stock; the re¬

debentures

maining common stock and debentures are reserved for
rescission offer, etc. Price—$1,000 per unit. Proceeds—To
buy equipment and for general corporate purposes. Of¬
fice—922 Jefferson St., Lynchburg, Va.
Underwriter—

Whitney & Co., Inc., Washington, D.
First Mississippi Corp.,

Jackson, Miss.

April 10 filed 10,000,000 shares of common

be granted to directors,
Proceeds — For industrial and

served for exercise of options to

development

business

Mississippi

South.

the

and

Underwriter—None.

National Mutual Fund, Inc.
May 20 filed (by amendment) 400,000 additional shares
of common stock (par $1). Price—At market. Proceeds
if First

—For investment.

Florida

Corp.

Power

April 19 filed 255,813 shares of common stock (par $7.50)
being offered for subscription by common stockholders
of record May 14, 1957 on the basis of one share for each
10
shares held
(with an oversubscription privilege);
rights to expire on June 3.
ceeds

Price—$51 per share.

For construction program.

—

der, Peabody & Co. and Merrill
& Beane, both of New York.

Underwriters

—

Pro¬
Kid¬

Lynch, Pierce, Fenner

Pompano Beach, Fla.
certificates of beneficial interest in
Price—$1,000 per certificate,- Proceeds—To

Florida Trust,
March
the

filed. .850

Trust.

lease or otherwise, and to hold,
mortgage, exchange, bargain, sell
every character of real property.

by purchase,

acquire

own, subdivide, lease,
and convey lands and

if Gas Industries Fund, Inc., Boston, Mass.

—For investment.

General Aniline & Film Corp.,

New York
Jan. 14 filed 426,988 shares of common A stock (no par)
and 1,537,500 shares of common B stock (par $1). Pro¬
ceeds—To the Attorney General of the United States.
Underwriter.—To be determined by competitive bidding
Probable bidders: Blyth & Co., Inc., and The First Bos¬
ton Corp. (jointly); Kuhn, Loeb & Co., Lehman Brothers
and

Glore,

Forgan

Co.

(jointly).

Bids — Had been
(EDT) on May

scheduled to be received up to 3:45 p.m.
13 at Room
D.

on the basis of one new share for each 10
rights to expire on June 10, 1957. Price—
Proceeds—For working capital. Under¬
writer—Morgan Stanley & Co., New York.

$220 per snare.
•

(6/6)
May 10 filed $15,500,000 first mortgage bonds due June
1, 1987. Proceeds — For construction program and for y
purchase of shares of capital stock of Southern Electric
Generating Co.
Underwriter — To be determined by
competitive bidding. Probable bidders: Halsey, Stuart_ 6^
Co. Inc.; Morgan Stanley & Co.; Blyth & Co., Inc.; Kid- ;
der, Peabody & Co. and Shields & Co. (jointly); Equit¬
able Securities Corp. and Eastman Dillon, Union Securi¬
ties & Co* (jointly); Harriman, Ripley & Co. inc. Bids—
Tentatively expected to be received up to 11 a.m. (EDT)
on June 6 at office of Southern Services, Inc., Room 1600,
250 Park Ave., New York 17, N. Y.

654, 101 Indiana Ave., N. W., Washington 25,

C., but bidding has been postponed.

International Capital Corp., Des

cial

Inc.

common

the

withdrawn.

(5/24)

Price—$1

common stock (par one
Proceeds—To' equip and
launderettes and for working cap¬

establish

five

share.

per

super

Underwriters—Names

ital.

Homestead Ave.,

incentive wage plan.

Hartford, Conn.

Interstate Fire &
March 29

April 1,
per

the basis of two new shares for each
June 10. Price — $21

share. Proceeds—For working capital. Underwriter
•
i
'

Investors Variable

Underwriter—None.

Payment Fund, Inc.

Manager

—

Investors

Diversified

Services,

Inc.,

Minneapolis, Minn., which will also act as distributor.
American

Israel

Industrial

Development

Bank,

Ltd.
Feb. 13 filed $2,500,000 of

perpetual 6% debenture stock.
Proceeds—/To be converted into
Israel pounds and will be used as working capital to
extend the medium and long-term credits to enterprises
in Israel.
Office—Tel Aviv, Israel. Underwriter—Israel
Price

110%

—

par.

Securities Corp., New York.

•

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

$1,000 of debentures and 40 shares of stock. Price—$1,008

Proceeds — To be loaned to subsidiaries and
them as working capital. Of total, $5,000,000
will be advanced to Janaf Shopping Center, Inc. for its

unit.

per

used

406,638 shares of Mount Vernon

preferred stock and 2^2 shares of Holly common stock
for each of the 305,204.52 shares of Mount Vernon com¬

shopping center
second

the

being

1957,

March 25 filed 10,000 shares of common stock. Price—At
market. Proceeds—For investment. Sponsor and Invest¬

Office—287

stock, series A (par $5) and 2,476,116 shares of
stock (par 60 cents), of which all of the pre¬
ferred and 763,011.3 shares of common stock are being
offered in exchange for Mount Vernon Co. preferred
and common stock on the basis of one Holly series A

are

(Ell.)
stock to be of¬
stockholders of record

common

—None.

common

Casualty Co.

filed 20,000 shares of

five shares held; rights expire on

Co., New York.

Price

shares held.

Proceeds—For work¬

sljajes and 18.75 common shares. Price — $1,018.75 per
unit. Proceeds—To acquire, own pnd operate interests
in producing oil and gas properties. Agent—Kuhn, Loeb

of the

seven

fered for subscription by common

$10); and 56,250 shares of common stock (par $1) to be
offered in units of $750 of debentures,^ 25
preferred

stock.

share for each

new

Underwriter—Franklin Securities Co.,

1972; 75,000 shares of 6% series A preferred stock (par

each

for

by amendment.

ment

for

one

Insurance Co., Dallas, Tex.

100,000 shares of common stock (no par)
subscriotion bv stockholders at the

offered

Dallas, Texas.

if Heritage Petroleum Corp., Dallas, Tex. (6/4)
May 16 filed $2,250,000 of 5% income debentures due

amend¬

ing capital, etc.

Price—At par ($20
Proceeds—For construction and equipment
an

rate of

held; rights to expire June 21, 1957.
installation of

—To be supplied

April 30 (letter of notification) 6,105 shares of common
stock to be offered to stockholders of record May 24,
1957 on the basis of one new share for each eight shares

share).

supplied

March 28 filed
to

ment.

Bids—

•

Corp.

Dec. 21 filed 500,000 shares of

cent).

(jointly); Stone & Webster

Special Machinery Co.

Equity and Finan¬

International Duplex Corp., San Francisco, Calif.

Expected to be received up to 11 a.m. (EDT) on June 18.
Hartford

stock.

185,000 shares each of Interna¬

stock in exchange for all the outstand¬

common

International Fidelity

M. Loeb, Rhoades & Co.

(par; 10

Equities, Inc. International has been informed
that 142,uOO shares of Equity common owned by Fre¬
mont Corp. will be tendered in acceptance of the Eauity
exchange offer. Underwriter — None. Statement to be

Utilities Co. (6/1S)
May 17 filed 200,000 shares of common stock (no par).
Proceeds—To repay a portion of outstanding bank loans.
Underwriter—To be determined by competitive bidding.
Probable
bidders:
Merrill Lynch,
Pierce, Fenner &
Securities Corp.; Carl

si.'ck

and Group

if Gulf States

Beane and Lehman Brothers

Moines, Iowa

common

ing shares of common stock of Investors Financial

Underwriter—Bruns, Nordeman & Co., New York,

mon

receive

are

tional

N. Y.

370,000

share of Financial

one

operation; to increase the number of stores; and
working capital. Office—41 Stukely St., Providence,

and

filed

Equity Corp. on a share-for-share basis in exchange for
Equity Corp. common stock, and the remaining 135,000
shares by Financial. General Corp. on a basis of. 1%
shares of International common stock in exchange for

(letter of notification) 240,000 shares of common
stock (par 30 cents) of which 86,610 shares are being
sold pursuant to outstanding warrants. Price—$1.25 per
share. Proceeds — For additional discount department

per

iNov.

?ents), of which 185,000 shares are to be offemd by The

Jan. 21

R. I.

Corp.

May 21, 1957

Georgia Power Co.

for

Machines

Business

shares held;

—

Shops of America,

International

May 1 filed 1,050,223 shares of capital stock (nonpar)
being offered for subscription by siocKnoiders of record

ferred

(par $1). Price—At market. Proceeds

stock

•

Co. '
notification) 10,000 shares of common
stock (par $5) to be offered first to stockholders and
agents, then to the public. Price—$30 per share. Pro¬
ceeds
To expand and finance the company's regular
line of business.
Office—70 Fairlie St., N. W., Atlanta,
Ga. Underwriter—None. Dan D. Dominey is President.
^Georgia Casualty & Surety

Holly Corp., New York
Jan. 25 filed 406,638 shares of 50-cent convertible pre¬

May 16 filed (by amendment) 2,000,000 additional shares
common

For working capital.
Underwriter—Johnston, Lemon &
Co., Washington, D. C. ■

May 10 (letter of

Gob

Sept. 28 filed $1,000,000 of time certificates, series B, C
and D. Price—At 100% of principal amount. Proceeds—

•

Underwriter—None.

in and temporary advances to

subsidiaries and for general corporate purposes.

store

stock (par

to be offered publicly
at $4 per share prior to Nov. 30, 1957, each purchaser of
one
share to receive an option to purchase two addi¬
tional shares at any time prior to Nov. 30, 1959 at $4.50
per share.
The price of the remaining 2,500,000 shares
will be $5 each, of which 500,000 shares are to be re¬

$1), of which 2,500,000 shares are

officers and employees.

International Bank of Washington, D.

telephone
Under¬
writers—Paine, Webber, Jackson & Curtis and Stone &
Webster Securities Corp., both of New York; and Mitchum, Jones & Templeton, of Los Angeles, Calif.
; :

For investment

remainder, 210,000 ' Holly common
offered to certain*/holders of 35,000

deed

near

trust

Norfolk, Va., and $500,000 to pay
on
the shopping center land and

•leases; $600,000 to Janaf Motor Hotels, Inc., for its Ad¬
miralty motor hotel adjacent to the shopping/ center;

shares of Van Dorn Iron Works Co. common stock on a

$200,000 to Janaf Homes, Inc.; $2,050,000 for acquisition
38,333 Holly
common
shares are
of land and/or new development (new ventures); $750,finders, 60,000 shares to certain ven¬
000 to retire present preferred shares; and $100,000 for
dors
of property;
1,016,595 shares will be: reserved /
expenses. Underwriter—Name to be supplied by amendagainst conversion of preferred .stock; and-the remain- " /ment. Statement withdrawn May. 10.
/:>
/
ing 388,176 are to be reserved for possible issuance at a
if Kaiser Industries Corp. (6/11)
✓
V
future date in exchange for 64,696 shares of Van Dorn
May 21 filed 900,000 shares of common stock (par $4).
Iron Works common stock.
The offers will expire on
Price
To be supplied by amendment. Proceeds —^ To
July 10. Underwriter—None. Statement effective April
selling stockholders. Underwriters — The First Boston
24.
; ;y
Corp., New York; Dean Witter & Co., San Francisco,
Holy Land Import Corp., Houston, Texas :
Calif.; and Carl M. Loeb, Rhoades & Co., New York..
Feb. 27 (letter of notification) 100,000 shares of common
• Lake Lauzon Mines Ltd.,
Toronto, Can.. (5/29)
stock. Price—At par ($3 per share). Proceeds—For in¬
March 18 filed 750,000 shares of common stock (par $1).
ventory, working capital, etc.
Underwriter—Benjamin
Price—40 cents per share.
Proceeds—For drilling ex¬
& Co., Houston, Tex.
penses, equipment, working capital and other corporate

six-for-one

basis;

offered to certain

General Credit,

Inc., Washington, D. C.

Aug. 17, 1956 filed $2,000,000 of 6% subordinated sink¬
ing fund debentures, due Sept. 1, 1971, with detachable
warrants to purchase
160,000 shares of participating
preference stock, to be offered in units of $500 of deben¬
tures and 40 warrants. Price—$500 per unit. Proceeds—
For expansion

and working capital. Underwriter—None
Offering to be made through selected dealers.
Application is still pending with SEC.
named.

if General

May

Precision

filed

Equipment Corp.
shares

194,200

preference stock

(6/6)

cumulative

convertible

($50

liquidating value) to be offered
for subscription by common stockholders of record June
on a l-for-6 basis and by holders of $1.60 cumu¬
lative preference stock on a l-for-9 basis; rights to ex¬

5, 1957

pire

June 24, 1957.

Price—To be supplied by amend¬
working capital.
Under¬
Corp. and Tucker, Anthony
& R. L. Day, both of New York.
on

ment.

Proceeds—To

writers—The

First

increase

Boston

General Telephone Co. of California

(6/5)

May 3 filed $20,000,000 of first mortgage bonds, series K,
due June 1, 1987. Proceeds—To repay bank loans and for
construction

program.

Underwriter—To

determined

by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Paine, Webber, Jackson & Curtis and Stone
& Webster Securities Corp.
(jointly); White, Weld &
Co. and Kidder, Peabody & Co. (jointly).
Bids—Ex¬
pected to be received
•

to 11

a.m.

General Telephone Corp.,

April 26 filed $44,520,600 of
due

(EDT)

debentures for

rights to expire

May 16, 1957

each
on

New York
convertible debentures

common

stock¬

the basis of $100 of

of- common

June 10.- Price—At

June 5.

4^%

1977, being offered for subscription by

holders of record

par.

stock

held;
Proceeds—

—

if Ignacio Oil & Gas Co.,

purposes.

Denver, Colo.

May 20 filed 650,000 shares of common stock (par 50
cents). Price—$1 per share. Proceeds—For drilling and
completion of test wells; for acquisition and exploration

May 15

of additional

Underwriter—Steven Randall & Co., Inc., New

York.

• Levingston

properties; and for working capital. Under¬
writer—None. W. Clay Merideth is President.
Intermountain

Gas

Co.

company

holders.

(5/29)

—To

May 6 filed $3,160,000 of 6% subordinate debentures due
1982 and 189,600 shares of common stock (par $1)' to be
offered in units of $100 of debentures and six shares of
stock which

will

not

separately transferable for

and

ap¬

Underwriter—White, Weld & Co., New York.

Intermountain

Gas

Co.

expire

one

June 12.

be offered to

for

each

six

held; rights to
The remaining 12,917 shares are to

employees and others.

Price—To be sup¬

plied by amendment. Proceeds — For construction
gram. Underwriter—White, Weld & Co., New York.

pro¬
-

Price—To be

construct

for

working

supplied by amendment. Proceeds
floating drydock and two oil barges
capital. Underwriters — Underwood,

if Macco Chemical Co.
(letter of notification) - 2,465 shares of common
stock (no par). Price — $58 per share.
Proceeds — For
working capital. Office — 6600 Union Ave., Cleveland,
May 6

Underwriter—None.

Ohio.

(5/29)

May 6 filed 58,067 shares of common stock (par $1), of
which 45,150 shares are to be offered for subscription..
by common stockholders of record May 24, 1957, on the.
basis

100,000 shares of

Neuhaus & Co., Inc., Houston, Tex.

proximately three months from date of issue. Price—To
be supplied by amendment.
Proceeds—For construction
program.

Shipbuilding Co., Orange, Texas '
common stock (par $6),
are to be offered for account of
and 33,334 shares for account for selling stock¬

filed

which 66,666 shares

Marion

March

Finance Corp.,

28 filed

Ardmore, Pa. ~
$250,000 of 6% renewable subordinated

debentures, due upon demand May 1, 1967, without de¬
mand May 1, 1972. Price—At par (in units of $100 and
$500

each).

Proceeds—For working capita*. Office—17
Underwrite-Walnut

W. Lancaster Ave„ Ardmore, Pa.
Securities Corp.,
New York; and

Philadelphia, Pa.; B. Ray'
Berry & Co., Plainfield, N. J

uns

135

Volume

Number 5640

The Commercial and Financial Chronicle

(2431)

McCormick Armstrong Co.,

unpaid

Inc. <
1 v
I
(letter of notification) 31,940 shares of com¬
stock (par $5).-Price—$6.50 per share. Proceeds—

mon

For working capital.

Office—1501 East Douglas, Wichita
Underwriters — Small-Milburn Co., Inc.; MidContinent Securities Co., Inc.; First Securities Co. of
Kansas, Inc.; Ranson & Co., Inc.,- and Brooks & Co., all
of Wichita, Kan.
•»
r
•
7, Kan.

McFaul

tion program.

(6/10)

Blyth

Co.;

mon

Co.,

Inc.;

Kidder,

^ Michigan Consolidated Gas Co. (6/17)
May 22 filed $30,000,000 of 25-year first mortgage bonds
due 1982.
Proceeds—To repay bank loans and for con¬
struction program.
Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; The First Boston Corp.; Blyth & Co., Inc.;
•White, Weld & Co. and Lehman Brothers (jointly). Bids
—To be received up to 11 a.m. (EST) on June 17 at 415
Clifford St., Detroit 26, Mich.
-

market.

March

stock

mon

offered

basis

for

six

each

cent).
tion

—None.
Mid-State Commercial

March 29

tered debenture

•

area

one

acquisi¬

ore

Associates, Inc.
$7,500,000 of convertible

subordinated

capital

and

other corporate

Brunswick

(Province

Under¬

purposes.

Offering—Temporarily

tures due Jan.

of)

Inc.

Price—At par

($1 per share). Proceeds — For
capital expenditures, including construction of motel,
roadside restaurant and gas station. Business—Has been
processing and selling of gravel. Office—203 Broadway,
Monticello. N. Y. Underwriter—Walnut Securities Corp.,
Philadelphia, Pa.

r;,

wick

Electric

advanced

Commission

Power

The

to
to

New

repay

Bruns¬

loans.

bank

Underwriter—Halsey, Stuart & Co. Inc., New York and
Chicago. Offering—Indefinitely postponed.
Dec.

England Electric System
819,000 shares of common
offered in exchange for capital

filed

being
Gas

Electric

for each

Co.

the

basis

stock

two

(par $1)
of Lynn

NEES

Lynn share.

This offer will expire on May 29.
Dealer-Managers—Paine, Webber, Jackson & Curtis and
F. S. Moseley & Co., both of Boston, Mass.

it Northern Ontario Natural Gas Co., Ltd. (6/6)
W;
May 14 filed $8,000,000 of 5%% subordinated deben¬
tures due 1982 and 400,000 shares of common stock (no
par) to be offered in units of $20 of debentures and one
share of stock.
Units aggregating $3,940,000 of deben¬
tures and 197,000 shares of stock will be offered in the
United States; the remainder in Canada.
Price—To be
supplied by amendment. Proceeds—Together with funds
from private sale of $12,000,000 of first mortgage bonds,
for construction program. Office—Toronto, Canada. Un¬
derwriters—In

United

States:

Bear, Stearns

—

New York.
Moore

Products Co.,

Philadelphia, Pa.

April 30 filed 41,204 shares of common stock (par $1) to
be offered for subscription by certain employees and
of company.

officers

Hemphill, Noyes & Co., both of New York. In Canada:
McLeod, Young, Weir & Co. and Bankers Bond Co.
Northern States Power Co. (Wis.)
(6/4)
May 2 filed $10,000,000 of first mortgage bonds due June

1987. Proceeds—To repay $5,750,000 bank loans and
$1,000,000 advanced by parent, Northern States Power
Co. (Minn.) and for construction program. Underwriter
—To be determined by competitive bidding. Probable
bidders: Halsey, Stuart & Co. Inc.; Merrill Lynch, Pierce,
Fenner & Beane; Lehman Brothers and Riter & Co.

offered

t!o

retire

972

outstanding

class

common

13,988 shares offered for
Proceeds—For general cor¬

Price—$10 per share.

porate purposes.

Underwriter—None.

(letter of notification) 400 shares of common
stock (no par) to be offered to stockholders and a lim¬
ited number of persons who own or plan to buy real
13

property in the Mountain Lake area.
share.

Proceeds—For

retirement

Price

—

$600

per

outstanding and

dial auto-

Underwriter—
;u'/'
.5

I;-,,

stock

common

without

additional

cost.

Proceeds—For

working capital.
Office — c/o Charles
Edmund Pew, Counsel, 314 Fuller
Ave., Helena, Mont.
^

★ Paxton (Frank) Lumber Co., Kansas City, Mo.
May 10 (letter of notification) 6,480 shares of common
stock (par $5) to be offered to employees.
Price—$11.48
share.

per

shares of

Proceeds—To
stock.

common

replace cash used to
Office—6311

St.

redeem

John, Kansas

Underwriter—None.

it Pedalcopter Co.
May 17 (letter of notification) 2,000 shares of common
stock. Price
$10 per share. Proceeds — For working
capital, etc. Office—547 Cedar Ave., Woodbridge, N. J,
—

Underwriter—None.

Pepsi-Cola Mokan Bottlers, Inc.
April 11 (letter of notification) 60,000 shares of common
stock (par 50 cents).
Price—$5 per share. Proceeds—
For general funds of the
company.
Office—207 West
St., Coffeyville, Kan.
Co., St. Louis, Mo.

Underwriter

—

G. F. Church

Philadelphia Electric Co. (6/5)
May 14 filed 609,815 shares of common stock

(no par)

be offered for subscription by common stockholders
of record June 4, 1957 at the rate of one new share for
each 20 shares held; rights to expire on June 25. Price
to

—To

be supplied by amendment.
Proceeds—To repay
bank loans and for construction program. Underwriters
-—Drexel & Co., Philadelphia, Pa., and
Morgan

Stanley

Co., New York.

Plymouth Fund, Inc., Miami, Fla.
Feb. 5 filed 500,000 shares of capital
Price—At
writer

market.

Proceeds—For

stock

(par

investment.

$1).

Under¬

Plymouth Bond & Share Corp., Miami, FltL
Joseph A. Ray vis, also of Miami, is President.
—

it Portland Gas & Coke Co.

(6/10)

May 22 filed 226,194 shares of common stock (par $9.50)
<to be offered for subscription by common stockholders
of record June

10, 1957

the basis of

one new

/each five shares held; rights to expire
Price

share for

about

July 1.
supplied by amendment. Proceeds
for

To be

—

program.

Underwriter—Lehman

York.

Brothers,

Prudential Investment Corp. of South Carolina
April 30 filed 209,612 shares of common stock. Pricer—
$1.20 per share. Proceeds — For general corporate pur¬

Underwriter — None. J. C. Todd of Columbia,
C.f is President and Board Chairman.

poses.

S.
•

Public Service Co. of New Mexico

April 25 filed 181,997 shares of common stock (par $5)
of which 166,997 shares are being offered for subscrip¬
tion by common stockholders at the rate of one new
share

each

rights to expire

are

shares held on May 20, 1957, with
June 12. The remaining 15,000 shares
being offered to employees. Price—$13.50 per share.
for

Proceeds

For

—

construction

Allen & Co., New

program.
Underwriter—
York, for offer to stockholders.

it Puget Sound Power & Light Co. (6/25)
17 filed $20,000,000 of first mortgage bonds due
July 1, 1987. Proceeds—To repay bank loans. Under¬
May

writer—To be determined by competitive
able bidders:
ton

bidding. Prob¬
Halsey, Stuart & Co. Inc.; The First Bos¬

Corp.; Merrill Lynch, Pierce, Fenner & Beane; Stone

Webster Securities Corp.

Broad

St., New York, N. Y.,

Bids—To be received at 90
up

noon

(EDT)

June

25.

Pyramid Productions, Inc., New York
Sept. 27, 1956, filed 220,000 shares of com. stock (par $1)
of which 200,000 shares are to be offered to public and
20,000 shares issued to underwriter. Price—$5 per share.
Proceeds—To retire
tures

tions,

well

Inc.;

and

vision releases.

$125,000 of outstanding 15% deben¬
$173,180 debt to Trans-Union Produc¬

for

working

capital,

Business—Tele¬

Underwriter—E. L. Aaron & Co., New

York.
•

Quinta Corp., Santa Fe, N. Mex.

(5/27-29)

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

March 28
stock

Co., Inc., New York; Clark, Landstreet & Kirkpatrick,
Inc., Nashville, Tenn.; and Minor, Mee & Co., Albuquer¬

(letter of notification) 7,200 shares of

common

$5) to be offered first to stockholders on
preemptive basis; unsubscribed to employees; and
remainder to public. Price—$16 per share. Proceeds—
(par

For

it Mountain Lake Corp.

May

June

Northwest Telephone Co.

Of the total, 27,216 shares are to

shares held by employees, and

.cash.

(jointly); Blyth & Co., Inc.; The First Boston Corp.;
Kidder, Peabody & Co. and White, Weld & Co. (joint¬
ly). Bids—Expected to be received up to 10 a.m. (CDT)
on

manual service to

Co. and

Products Co.,

Philadelphia, Pa. (6/4)
April 30 filed 100,000 shares of common s+ock (^r *1).
Price
To be supplied by amendment.
Proceeds—For
improvements and other corporate purposes. Under¬
writers— Kemphill, Noyes & Co. and Parrish & Co., both
Moore

one

New

Price—To be supplied by amend¬

1, 1982.

Proceeds—To

ment.

and

Office—Buckfield, Me.

★ Pass Creek Mining Co.
May 2 (letter of notification) 100,000 shares of 5% cumu¬
lative preferred stock. Price—At par ($1
per share) with

construction

New

(letter of notification) 300,000 shares of common

stock.

(par

Proceeds—For

Dec. 14 filed $12,000,000 of 25-year sinking fund deben¬

Proceeds—For expansion of serv¬

Monticello Associates,

change at Turner from
matic exchange.
None.

the basis

public.
Price—
Proceeds —For converting ex¬

share).

per

Telefilm

filed

New

Corp.

Mississippi Valley Portland Cement Co.
Dec. 26 filed 1,600,000 shares of capital stock (no par), of
which 708,511 shares are subject to an offer of rescission.
Price—$3 per 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.

Feb. 18

National

working

New York.

properties; for

share.

writer—Bache & Co., New York.
withdrawn.

working capital. Office—2 King St., Middletown, N. Y. Underwriter — Frazee, Olifiers & Co.,
ice

per

debentures due May 1, 1967. Price—To be supplied by
amendment. Proceeds—For reduction of sKort-ierm debt,

$190,000 of 7% regisbonds due May 1, 1967. Price—At 100%

and accrued interest.

Price—$1.25

Indefinite.

(letter of notification)

Corp., New York

testing program; for assess¬
ment work on the Yellowknife properties; and for cost
of a concentration plant, mining
equipment, etc. Underwriter—Gearhart & Otis, Inc., New York.
Offering—

held

Underwriter

(Box 933), Grand Junction, Colo.

Lithium

Feb. 19 filed 3,120,000 shares of common stock

(with
an oversubscription privilege); rights to expire on May
31.
The remaining 18,667 shares have been offered to
public. Price—To stockholders, $1.25 per share and to
public, $1.50 per share. Proceeds —For retirement of
outstanding bonds and working capital. Office—126 N.
Fifth St.

on May 28 at Room 2033, Two Rector St.,
York, N. Y.

-National

v^j:,/

(letter of notification) 170,154 shares of com¬
(par $1) of which 151,487 shares are being
stockholders of record April 1, 1957 on the

seven

(EDT)

a.m.

New

•

($5

par

April
v

8th

Underwriter—To be deter¬

bidding. Probable bidders: Halsey,
Stuart & Co. Inc.; The First Boston
Corp.; Eastman
Dillon, Union Securities & Co.; White, Weld & Co.; Harriman Ripley & Co. Inc. Bids—To be received
up to 11:30

/ Midland Telephone Co.

(5/28)

mined by competitive

Inc.
notification) $250,000 of subordinate
debenture notes (of which $75,000 will mature in six
years, $75,000 will mature in nine years and $100,000
>will mature in 10 years). Price—At face value (in de1 nominations of $100 or multiples thereof). Proceeds—
.For working capital.
Office — 739 Johnson St., N. E.,
Minneapolis, Minn: Underwriter—None.
"**

stock to be offered to present stockholders
of preemptive rights, thereafter to the

sion program of subsidiaries.

it Midland Cooperatives,
(letter

Oxford County Telephone & Telegraph Co. *
April 18 (letter of notification) 6,000 snares of common

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¬

Probable bidders:" Halsey, Stuart
& Co. Inc.; The First Boston Corp.; Blyth & Co., Inc.
Bids—Expected to be received up to 11 a.m. (EDT) on
June 12 at offices of American Natural Gas Co.,
165

Ripley
Co., Inc. and Stone & Webster Securities Corp. (joint-'
ly); Lehman Brothers. Bids—The two received up to 11
a.m.
(EST) on Oct, 30 were rejected.

City, Mo.

repay

competitive bidding.

May

;address. Offering—Expected this

National Fuel Gas Co.

stock to parent, American Natural
$25,000,000 of bank loans and for con¬
struction expenses. Underwriter—To be determined by

same

Nassau

Harland W.

—

it National Beverages, Inc.
May 6 (letter of notification) 400,000 shares of common
stock (par 20 cents). Price—40 cents
per share. Proceeds
—For working capital and for expansion.
Office—1030
So. 6th St., Salt Lake City, Utah. Underwriter—Harrison
S. Brothers & Co., Salt Lake City, Utah.

common

Office—10

week,

pay

Broadway, New York, N. Y.

investment

Investment Advisor

bidding. Prob-1
Corp.; Blyth & Co., Inc.;

Underwriter—None.

Philadelphia, Pa.

Proceeds—For

Hoisington, Inc.,

it Michigan Wisconsin Pipe Line Co. (6/12)
May 15 filed $30,000,000 of first mortgage pipe line bonds
1977.
Proceeds—Together with $3,000,000 from sale
Co., to

Stuart

Minerals, Inc.
(letter of notification) 150,000 shares of com¬
(par $1). Price—$2 per share. Proceeds—For

St., Princeton, N. J.

writer—To be determined by competitive
able bidders: The First Boston

Kuhn Loeb & Co.; Eastman Dillon, Union Securities & Co.'
and Salomon Bros. & Hutzler
(jointly); Harriman

—

Nassau^Fund, Princeton, N. J.
May 8 filed 250,000 shares of common stock. Price—At

due

$3.000,CG0

Underwriter
,

stock

Sachs & Cd.V Inc.;

& Co. and Drexel & Co. (jointly); The First
Bids—Expected to be received up to noon

(EDT) on June 10 at offices of General Public Utilities
Corp.,-67 Broad St, New York, N. Y.

Gas

purchase of royalty and working interests. Office—1518
Walnut St.; Philadelphia 2, Pa. Underwriter—Walter S.

Boston Corp.

'of

Mutual

April 22

Underwriter—To be determined by com¬

Weld

White,

Peabody

profit sharing retirement plans.

Proceeds—For investment. President
Office — 5001 West Broad St.,

Fifth Ave., New York 36, N. Y.
Securities Corp., New York.

petitive bidding. Probable bidders: Halsey, Stuart & Co.

Inc.;

it Mutual Investors Corp. of New York
May 17 (letter of notification) 295,000 shares of common
stock (par 10 cents). Price—$1 per share. Proceeds—To
acquire real estate properties and mortgages. Office—550

of first mortgage bonds due
bank loans and for construc¬

Proceeds—To repay

SharingVa.i;
t
50,000 shares of capital stock (par $1),

filed

Richmond, Va.

working capital.
Office—560 Mills Tower
Building, San Francisco, Calif. Underwriter—Financial
•Investors, Inc., Sacramento, Calif.

1987.

Price—At market.

&nd

Metropolitan Edison Co.

working capital. Ad¬
Underwriter—

Wales, Fla.

—T. Coleman Andrews.

(Claude)

April 30 filed $19,000,000

additional

to be offered trustees of

quisition of production machinery and equipment; pur¬
chase of materials and tooling; advertising; patent ex¬

and

Mutual Investment Trust for Profit
'
Retirement Plans, Inc., Richmond,

March

Corp.
April 18 (letter of notification) 10,000 shares of common
stock. Price—At par ($10 per share). Proceeds—For ac¬

penses

•

mortgage

dress—Mountain Lake, Lake
None.'; "-*• '•
"• *-*

March 21

construction,

payment

current

liabilities

and

working capital. Office—1313 Sixth St., Redmond, Ore.
Underwriter—None.

que,

N. M.

Radiation, Inc.
April 25 filed 226,032 shares of class A common stock
(par 25 cents), of which 186,032 shares are being offered
to stockholders of record May 15, 1957 for subscription
on

the basis of

one

share of class A stock for each three

shares of class A and
■-

Ohio

Power Co.

Sept. 20, 1956, filed 60,000 shares of

(par $100).

expire
cum.

Proceeds—For construction

May 27.

common

stock held; rights are to

The remaining 40,000 shares were

preferred stock

program.

Under¬

Continued

page

The Commercial and Financial Chronicle
48

...

Thursday, May 23, 1957

(2432)

47
selling stockholders.
principal stockholders

publicly for account of
subscription rights of certain

offered
The

were

and exercised by the underwriters,
stock created thereby (129,733 shares) of¬

purchased

and the new

fered to the public.

Price—$12 per share to

stockhold¬

$14 to public. Proceeds—For working capital and
other corporate purposes. Underwriters—Kuhn, Loeb &
ers;

Co., New York; and
Savannah, Ga.

Johnson, Lane, Space &

Co., Inc.,

Raytone Screen Corp.
(letter of notification)

50,000 shares of common
stock (par 10 cents). Price—$3.25 per share. Proceeds
—To reduce debt, for purchase of inventory and for
working capital. Office—165 Clermont Ave., Brooklyn,
N
Y. Underwriter—J. P. Emanuel & Co., Inc., Jersey

Feb. 15

City, N. J.

Drilling Co.,

cents) and stock purchase warrants cover¬
ing 225,000 shares of common stock to be offered in
units of $100 of debentures, 10 shares of stock and one
warrant to purchase 15 common shares.
Price—To be
supplied by amendment. Proceeds—To be applied to the
purchase of off-shore mobile platform and related

.stock (par 20

Underwriters—Hulme, Applegate & Hum¬
Inc., The Milwaukee Co., The Ohio Co. and

equipment.

Stroud & Co., Inc.

Fund, Inc., New York

Resource

shares of common stock (par $1).
Proceeds—For investment.
Under¬
writer—None.
D. John Heyman of New York is Presi¬
dent. Investment Advisor—Resource Fund Management

March 29 filed 100,000

market.

price—At

Co., Inc., 60 Broadway,

New York, N. Y.

it Ridge Citrus Concentrate, Inc.,
May 13 (letter of notification) 2,000
stock

par).

(no

working capital.
•

Davenport, Fla.
shares of common
Proceeds—For

Price—$125 per share.
Underwriter,—None.

Industries, Ltd., New York
filed 75,000 shares of common stock.

Rogosin

March

Price—

($100 per share). Proceeds—For site improve¬
ments and buildings in Israel; for process equipment
and machinery; for utilities; working capital: and other
At par

corporate

Gyroscope Co., Santa Monica, Calif.
May 20 filed 250,080 shares of common stock (par $1) tobe offered for subscription by common stockholders of
record May 31, 1957 on the basis of two new shares for
each five shares held. Price—To be supplied by amend¬
ment.
Proceeds—For working capital and general cor¬
it Summers

porate purposes. Underwriter
Beverly Hills, Calif.

purposes.

Underwriter—None. Statement ef¬

fective March 22.

Louis, Mo.
March 27 filed 1,250 shares of class C cumulative pre¬
ferred stock (par $57).
Price—$97 per share. Proceeds
—To R. M. Realty Co., who is the selling stockholder.
Underwriter
Yates, Heitner & Woods, St. Louis, Mo.
Offering—Expected within the next few weeks.
/
Insurance Corp., St.

St. Louis

—

each share of Lumber company stock.
effective if 95% of the latter
stock is deposited for exchange (and may be declared
effective at option of St. Regis, if not less than 80%
T)i the Stock is deposited).
1
St. Regis stock for

The offer will be declared

May 10; rights to expire on May 27. Price—$23.50 per
share. Proceeds—To reauce bank loans and for working

Office — Rockford, 111. Underwriters — Merrill
Lynch, Pierce, Fenner & Beane, New York; Bacon,
Whipple & Co., Chicago, 111.; and Dean Witter & Co.,
San Francisco, Calif.
.
fr

capital.

Tennessee Gas

Transmission Co.

Stuart & Co. Inc., all of New

sey,

San Juan Horse

stable, etc.; in operating a race track and working capi¬
tal. Office—1040 Main St., Durango, Colo. Underwriter
—None.

Vanadium-Alloys Steel Co., Latrobe, Pa.

to be made by
employees of the company to the Thrift Plan (including
the company's guarantee of such plan).
it Timken Roller Bearing Co., Canton, O. (6/12)
May 21 filed 484,276 shares of common stock (no par)
to be offered for subscription by common stockholders
of record on or about June 12 on the basis of one new
share for each 10 shares held; rights to expire about
July lSv Price—To be supplied by amendment. Proceeds
—For capital improvements and working capital. Under¬
writer—Hornblower & Weeks, New York.
it Titanic Oil Co.

Wayne Jewell Co., Denver, Colo.
it Trane Co., LaCrosse, Wis.

(6/6)

Scruggs

($1 per
1049
Scherck, Richter

held; rights to expire on May 31. Price—At par
.share). Proceeds—For working capital. Office
Front St.,

Co.

Festus, Mo.
'
/

Underwriter

—

Empire Oils Ltd., Calgary, Alberta, Canada

Plan,

Inc., New York

of record March

Proceeds—For
capital expenditures arid expenditures for exploration
activities; also for other general corporate purposes.
1959.

Virginia Electric & Power Co,

other

corporate

purposes.

•

Southern

California

Edison

Co.

(6 5)

13 filed 1,200,000 shares of cumulative preferred
stock (par $25). Price—To be supplied by amendment.
Proceeds—To retire bank loans and for construction pro¬
May

gram.

•

Tripac Engineering Corp.

(letter of notification) 100,000 shares of class A
stock (par 10 cents).
Price—$1.50 per share.
Proceeds—For working capital; machine tools; equip¬

Feb. 27

common

ment

and

Elmo Ave.,

Proceeds—For

ible debentures due June 15, 1962, to be offered for sub¬

scription by common stockholders of record May 23, 1957
on the basis of $100 of debentures for each 30
common
shares held: rights to expire on June 17. Price—At

(flat).
T4one.

Proceeds—To reduce bank loans.

par

Underwriter—

The largest stockholder, Pyramid Rubber Co.. has

agreed to purchase all of the debentures not subscribed
for by

the other stockholders. Statement effective Mav

17.

Steadman Investment Fund,
East Orange,

Inc.,

Steadman &

Co., East Orange, N. J.

•

program.

competitive

Underwriters—To

bidding.

Probable

bid¬

Stone & Webster Securities Corp.; Merrill Lynch,

Pierce, Fenner & Beane. Bids—To be received up to 11

(EDT) on June 4 at 40 Wall St., New York, N. Y.

a.m.

Electric

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
share for each nine shares

new

held; rights to expire

An additional 1,565,662 shares will be subscribed

June 3.

for by American Telephone & Telegraph
Price — $45 per share. Proceeds — For

Co., the parent.
expansion, etc.
Office—195 Broadway, New York 7, N. Y, Underwriter

—None.

it Western Printing & Lithographing Co.,
Racine, Wis.
May 15 filed $3,037,640 of 5% serial notes due Dec. 1,
1958
to
1967, inclusive to be offered, together with
cash, in exchange for 151,882 shares of capital stock of
Kable Printing Co. (111.) on the basis of $20 of notes and

$6 in cash for each share held. This offer which is to
-expire July 12, is conditioned upon the acceptance by
holders of at least 130,000 shares of Kable stock (about

of Kable

Holders

cash

receive

will

who

stock
the

rate

less than

own

$26

per

share.

Underwriter—None.
Wilson & Co.,

28 filed

Aug.

Inc.

$20,000,000
1976.

due

20-year sinking fund de¬
be supplied by amend¬

Price—To

—
To redeem
presently outstanding
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—

Proceeds

first mortgage

Indefinitely postponed.

Prospective Offerings

proprietary development.
Office — 4932 St.
Bethesda 14, Md.
Underwriter—Whitney &

Advance
Dec.

subsidiary of General Tire & Rubber Co.) may raise be¬
common

Proceeds—For working capital. Un¬
derwriter—Kidder, Peabody & Co., New York.

vately or publicly.

it Airborne Instruments Laboratory, Inc.
was announced company plans to issue and sell

May 16 it

$2,000,000 of 15-year 5!/4% unsecured subordinated con¬
vertible
debentures.
American
Research
&
Develop¬
ment Corp., owner of 31,500 shares or 15.8% of Airborne's stock, propose to purchase $320,000 of the new
debentures.
Froceeds—Together with $4,000,000 to be

2,100 Plan A with insurance; 500 Plan B with¬

insurance; and 1,200,000 Theoretical Units.
Air Conditioning Corp.

Sept. 27

U. S.

Semiconductor Products,

borrowed from institutional

Alabama

Great Southern

June 4 for the

building and

RR.

(6/4)

(EDT)
purchase from it of $2,400,000 equip¬
Probable bidders: Halsey, Stuart

ment trust certificates.
&

Co.

Inc.; Salomon Bros. & Hutzler.

it Allied Paper Corp.
May 13 it was reported company plans to issue and sell
some
convertible
preferred
stock.
Stockholders
on

Inc.

April
par

authorized

issue

100,000

$50

value stock, issuable in series. Proceeds—To repay
debt and for expansion.
Underwriter—Pos¬

short-term

purchase of new materials and working capital.
Office
Phoenix, Ariz. Underwriter — Jonathon & Co., Los

sibly Julien Collins & Co., Chicago, 111.

—

Aluminum Specialty Co.

Angeles, Calif.

March 18 it

United

Utilities, Inc., Abilene, Kansas
filed 105,000 shares of common stock (par
$10) to be offered in exchange for stock of OregonWashington Telephone Co. on the basis of 2% shares for
each Oregon-Washington common share and five shares
for each Oregon-Washington preferred share. This offer

sell

Co.

plans to issue and

cumulative

(par $20).

convertible

pre¬

Underwriters—Emch &

and The Marshall Co., both of

Milwaukee, Wis.

American European

Securities Co.
stockholders approved a proposal to increase
the authorized capitalization from 600,000 shares (con¬
sisting of 500,000 common shares and 100,000 preferred
shares) to 1,000,000 common shares, without par value.
It is probable that additional common stock will be

of America, Portland, Ore.
*

April 30 filed 1,250,000 shares of common stock (pa;: 10

announced company

April 24

subject to acceptance by not less than 80% of each
expire on July 1. Dealer-Manager
—Zilka, Smither & Co.. Inc.; Portland, Ore. t
<

cents).' Price—To be supplied by amendment (expected

was

15,000 shares of $1.20

ferred stock series A

class of stock and will

Uranium Corp.

Bids will be received by the company up to noon

—

■

investor^, for

expansion program.

April 11 filed 500,000 shares of common stock (par $1).
Price
To be supplied by amendment. Proceeds — For

April

and $10,000,000 by the sale of additional
stock, perhaps 25,000 shares or so, either pri¬

tween $5,000,000

Funds, Inc., Boston, Mass,

States

merger

Aerojet General Corp.

May 16 filed (by amendment) additional Commonwealth
Fund Indenture of Trust Periodic Payment Plans as

United

Mortgage Corp., Chicago, III.
reported this company (to be

was

May 10 it was reported that this company (a 95% owned

May 21 filed (by amendment) an
monwealth Fund Indenture of Trust Plan C.

follows:

surviving
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—Expected in June

Mass.
additional 1,000 Com¬

it Trusteed

corporation following

N. J.

May 10 filed 100,000 shares of common stock (par $1)
to be offered in connection with merger into this Fund'
of Fund of Fortune, Inc., Fortune II, Inc., Fortune III.
Inc. and Fortune IV, Inc. Underwriter — William Allen

construction

determined

ders:

★ Trusteed Funds, Inc., Boston,

•

Spalding (A. G.) & Bros. Inc. (5 24)
April 11 filed $2,017,300 of 5%% subordinated converty

(6/4)

May 1 filed 1,000,000 shares of common stock (par $8).

withdrawn.

and

com¬

pany's affiliates. Office—1013 Southern Finance Bldg.,
August, Ga. Underwriter—Johnson, Lane, Space & Co.,
Augusta, Ga.

Price—$2.50 per share (Canadian).

Calif.

capital

Inc.

Price—At face amount. Proceeds—To be loaned to

28, 1957 at the rate of one new share

Underwriters—The First Boston Corp., New York,
and Dean Witter & Co.. Los Angeles and San Francisco,

working

Underwriter—Sire Plan Portfolios, Inc., New York.

ex¬

share exercisable Jan. 1, 1959 through Dec. 31, 1963).

per

filed 600,000 shares of common stock (par 10
cents), of which 50,000 shares are to be offered to em¬
ployees, distributors and dealers; 50,000 shares, plus
any of the unsold portion of the first 50,000 shares, are
to be offered to the public; and the underwriter will be
granted options to acquire the remaining 500,000 shares
for reoffer to the public. Price—At market prices. Pro¬
ceeds—For working capital and f.jneral corporate pur¬
poses. Office—Philadelphia, Pa. Underwriter—Mortimer
B. Burnside & Co., Inc., New York. Statement has been

—For

Price

For

Underwriter—Goldman, Sachs & Co.,

it Village Enterprises,

for each six shares held: rights will expire on March 31,

•

14 filed $1,000,000 of nine-month 8% fund notes.
Price—At par (in denominations of $100 each). Proceeds

—

April 9 filed 436,291 shares of common stock (par $1.25)
to be offered for subscirption by common stockholders

out

Sire

Proceeds

May 9 (letter of notification) $250,000 of 6% % 25-year
collateral trust bonds (each $1,000 bond having option
attached to purchase 100 shares of common stock at $5

May

York.

New

ment.

stock (par $2).
Proceeds—For
Underwriter—Smith, Barney & Co.,

expansion program.

supplied by amendment.

pansion program.

Co., Inc., Washington, D. C.

(Loyd) Co., Festus, lV?o.
April 11 (letter of notification) 54,646 shares of common
-stock being offered for subscription by common stock¬
holders on the basis of one new share for each share
41

bentures

May 17 filed 150,000 shares of common
Price—To be supplied
by amendment.

(6/5)

4, 1957; with rights to expire about June 19.

,.85%).

May 6 (letter of notification) 6,000,000 shares of common
stock (par one cent). Price—Five cents per share. Pro¬
ceeds—For exploration of oil properties.
Office — 704
First National Bank Bldg., Denver, Colo. Underwriter—

Trans

June
—

Western

it Tennessee Gas Transmission Co.
May 21 filed $1,750,000 of contributions

Racing Association

(letter of notification) 259,945 shares of com¬
mon stock (par 50 cents).
Price—$1 per share. Proceeds
—For construction of a horse racing oval; erection of

York.

per

May 13 filed 51,000 shares of capital stock (par $5) to be
offered for subscription by stockholders at the rate of
one new share for each 10 shares held as of record about

(5/28)

May 8 filed $50,000,000 of first mortgage pipe line bonds
due July 1, 1977. Price—To be supplied by amendment.
Proceeds—To repay bank loans. Underwriters—Stone &
Webster Securities Corp., White, Weld & Co. and Hal-

Underwriter—None.

April 29

Regis Paper Co.

April 1 filed 850,000 shares of common stock (par $5)
to be offered in exchange for common stock of St. Paul
& Tacoma Lumber Co. on the basis of 56% shares of

Co.

April 22 filed 170,471 shares of common stock (par $5)
being offered for subscription by common stockholders
at the rate of one new share for each eight shares held

New York.

St.

Daniel Reeves & Co.,

—

Underwriter—To be named by amendment.

—

May 21 filed $1,700,000 of 6% subordinated sinking fund
debentures due June 1, 1967, 170,000 shares of common

phrey,

Marcji 29 filed 530,712 shares of common stock (par $5),
Of the presently outstanding 988,890 common shares.
Proceeds
To the Attorney General of the United
States. Underwriter—To be determined by competitive
bidding. Probable bidders include Kuhn, Loeb & Co.,
Lehman Brothers and Glore, Forgan & Co. (jointly).
Bids—To be received up to 3:45 p.m. (EDT) on June 25
at Office of Alien Property, Washington 25, D. C.

Sundstrand Machine Tool

it Reading & Bates Offshore
Tulsa, Okla. (6/10-12)

share). Proceeds—For exploration purposes.
Graham Al¬
bert Griswold of Portland, Ore., is President.
to be

(6/25)

Corp., New York

(Hugo)

Stmnes

Continued from page

offered to

although

common

stockholders during the current year

offering is presently planned.

Underwriters

Volume

185

Number 5640

The Commercial and Financial
Chronicle

(2433)
—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

derwriters—Kidder, Peabody & Co. and White, Weld &
Co.' about the middle of last
year arranged the private
placement of an issue of $5,000,000 series G first mort¬

459,379

gage bonds.

Arizona Public Service Co.

April 26 it

financing was
privately through The First Boston Corp. and Blyth
Co., Inc.
^
—

done

■

★ Chicago, Rock Island & Pacific RR.

April 9, Bayai-d L. England, President, announced that
later this year the
company will probably issue about
$5,900,000 of convertible debentures. Proceeds—For con¬

Bids

struction program.

Co.

Underwriter—May be determined by
competitive bidding. Probable bidders: Halsey. Stuart &
Co.. Inc.; Kuhn, Loeb &
Co.* American Securities Corp.
and Wood, Struthers & Co.
(jointly); White, Weld & Co.
and Shields & Co.
(jointly); The First Boston Corp. and
Drexel & Co. (jointly); Eastman
Dillon* Union Securi¬
ties & Co. and
Smith, Barney-& Co. (jointly); Lee Higgifcson Corp;* Blytli ■&
Co^IncT v

■

Inc.; The First Bos¬
Morgan Stanley & Co.; Stone & Webster
Securities Corp. Bids—Tentatively scheduled to be re¬
ceived on Sept. 10.
■'■ V;

for

each

held; rights to

Columbia

on Aug. 9, 1957.
Warrants will be mailed on or
May 31. Price—$30 per share. Proceeds—To in¬
capital and surplus. Subscription Agent
The
Royal Trust Co., Montreal, Canada. The
offering will

Feb.

mission.

sell

announced

$50,000,000 of

To redeem

—To

company plans to issue

and

by competitive bidding. Probable
bidders: Halsey, Stuart & Co.,
Inc.; Morgan Stanley &
Co.; The First Boston Corp.; White, Weld & Co. and
Eastman Dillon, Union Securities & Co.
(jointly). Bids—
Expected to be received on or about July 31.

financing,

this

year,

18,

continue

May 7 stockholders approved a proposal to authorize a
class of 100,000 shares of cumulative
preference
stock -(par $100)
and to increase the authorized out¬
standing indebtedness to $15,000,000, in connection with

was

bonds later
of

Inc., New York, handled previous preferred stock financ¬
ing, while Kidder, Peabody & Co. underwrote General

System,

per

000.

plans to issue and sell

•

Inc.,

chase

Underwriter

—

Underwriter—Probably

;

Registration—Expected early in June.

-April 9 it

Illinois

was

Public Service Co.

reported company plans to issue and sell

$10,000,000 of 1st mtge. bonds.Proceeds—To
loans and for construction
program.
determined by competitive

reduce bank

Underwriter—To be

bidding.
Probable bidders:
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
•

sell

late

•Proceeds
*,

1957.

Central Louisiana Electric
Co.,
April 8 it was announced company
-

Inc.
plans to issue and
$6,000,000 of first mortgage bonds.
.Together with $4,500,000 of 4%% 12-year

this

year

convertible debentures
to repay

to be

placed privately, to be used
bank loans and for construction program. Un¬

has

been

shares of company's common stock from
Corp., leaving latter still holding 392,000

shares/ Underwriter-^A. C. Allyn &
?,

Co., Inc., Chicago,

: •

•

if First National Bank of Fort Worth (6/4)
May.: is it was announced company plans to offer to ith
stockholders thei privilege of/subscribing for 100,000
additional shares of capital stock (par $10) on the basis
of

one

will

share for each 6V2 shares held.

new

vote

June

Stockholders

increasing stock to 750,000 shares.
Price
$24 per share. Proceeds — To increase capital
and surplus.' Underwriters r—' Dallas Union Securities
Corp. and First Southwest Corp., both of Dallas, Tex. 7'
on

if First National City Bank of New York (6/24) ; v
May 17 it was reported Bank plans to offer its stock**
holders the right to subscribe for 2,000,000 additional
shares of capital stock (par $20) on the basis of one new

was announced company

held on or about June 24,
July 22, 1957. Price—$60 per
Proceeds-^-To increase capital and surplus. Un¬
derwriter—The First Boston Corp., New York/
General

May 3 it

bank

debt

and

for

other

Consumers

Milwaukee, Wis.

Power Co.

April 22 it

was reported company plans to issue and sell
$40,000,000 of first mortgage bonds this Fall. Proceeds—
To repay hank loans and for construction program. Un¬

bidding.

Probable bidders: Halsey, Stuart & Co. Inc.; White, Weld
& Co. and Shields & Co.
(jointly); Morgan Stanley &

Co.; The First Boston Corp. and Harriman Ripley & Co.
(jointly).

Inc.

Delaware Power & Light Co. 1/6/24)
April 26 H. H. Plank, President, announced that com¬
pany plans to issue and sell $15,000,000 of first mortgage
and
be

collateral

trust

bonds

due

1987.

Underwriter—To

determined

by competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; Eastman
Dillon, Union
Securities & Co.; Merrill Lynch, Pierce, Fenner & Beane
and Kidder, Peabody & Co. (jointly); Kuhn, Loeb &
Co.,
Salomon

Bros.

Hutzler

and

Wood,

Struthers

Co.

(jointly); White, Weld & Co. and Shields & Co. (jointly);
Co. and Reynolds & Co. (jointly);
Brothers.
Bids—Tentatively scheduled to be

Francis I. duPont &
Lehman

received

about

was

Co.

announced company plans to sell in 1957

$60,000,000 of mortgage bonds.

Proceeds

—

For

construction program (estimated to cost about
$89,000,000
this year). Underwriter—To be determined by competi¬
tive

announced application has been made to

construction

ber,

Jackson

Underwriters—Paine, Web ¬
Boston, Mass.; and Mitchum,

program.

Curtis,

Jones & Templeton, Los Angeles, Calif.

/;•/:

General Tire & Rubber Co.

May 10 it
issue

was

reported that this company is considering

convertible

subordinated debentures, prob¬
ably around $15,000,000, which may first be offered for
subscription by common stockholders.
Proceeds—For
working capital. Underwriter—Kidder, Peabody & Co.,
an

New York.

'r"\\

•'-*

"//

Government Employees Corp. (6/3)
March 12 it was announced company plans to offer to
common stockholders about June 3 the right to subscribe
.

for

approximately $500,000 of convertible capital deben¬

tures due

1967. Underwriters—Johnston, Lemon & Co,
Washington, D. C.
Great
Bids

Northern

Ry.

(7/17)

by the company to be received on
July 17 for the purchase from it of $4,965,000 equipment
trust certificates. Probable bidders: Halsey, Stuart & Co.
Inc.; Salomon Bros. & Hutzler.
are

Gulf

expected

Interstate

May 3 it

Gas

Co.

announced

company plans to issue somo
additional first mortgage bonds, the amount of which has
was

not yet been
program.

determined. Proceeds — For construction
Underwriters—Carl M. Loeb, Rhoades & Co.

and Merrill

Lynch, Pierce, Fenner & Beane.

June 24.

Detroit Edison

May 6 it

Telephone Co. of California

was

P. U. Commission for authority to issuo
500,000 shares of 5% cumulative preferred stock
(par $20) shortly after the sale of an issue of $20,000,000 first mortgage bonds which have been filed with tho
SEC (see a previous column in this article). Proceeds—

derwriter— To be determined by competitive

and sell

For

corporate purposes.

the California

10,000 shares of $1.50 cumulative convertible pre¬
(no par). Price—$25 per share. Proceeds—

retire

each five

share/

plans to issue and sell

Corp. (jointly).

Underwriter—The Milwaukee Co.,

for

1957; rights to expire

determined

Consolidated Natural Gas Co.

& Co. and the First Boston

•

Central

300,000

Penn-Texas

this

sell

(jointly).

$12.50)

^ Fairbanks, Morse & Co. (6/17-21)
May 14 it was reported company plans to issue and sell
$15,000,000 of convertible debentures. Proceeds—To pmN-

ferred stock

Corp.

issue

Illinois.

finance

Corp.;

loans

Corp., Erie, Pa.
Richard Fryling, President,

Cleveland, Ohio.

if Consolidated WateK Co. (6/17)
April 30 it was announced company plans to issue and

Harriman Ripley & Co. Inc.; Merrill
Lynch, Pierce, Fenner
& Beane and Stone &
Webster Securities

additional bonds this year.

some

bank

announced
200,000 shares of preference stock
authorized and that the 62,475.
shares of outstanding convertible preferred stock (pai*
$20) are expected to be called for redemption at an
early date.
Underwriter — Fulton, Reid & Co., Inc.,

Co. Inc., New York.

privately. v:;- y //;: ? \ <;
Central Hudson Gas & Electric
Corp.
April 9 it was announced company plans to issue and sell
this year additional first
mortgage bonds. Proceeds—To

done

Underwriters—To be determined by com¬
petitive bidding. Probable bidders:
Halsey, Stuart & Co.
Inc.; Morgan Stanley & Co.; Kuhn, Loeb & Co.; Eastman
Dillon, Union Securities & Co.; The First Boston

new

(par

•

construction.

23,

that

$25,000,000 25-year debentures in October in addition to
$25,000,000 to be sold on June 11. Underwriter—To be
determined by competitive bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; White, Weld & Co. and Paine,
Webber, Jackson and Curtis (jointly); Morgan, Stanley

—

retire

Erie Resistor

April

reported that company plans to issue and
$8,000,000 of cumulative preferred stock.

Carolina Telephone &
Telegraph Co.
March 11 it was announced
company plans to issue and
sell some debentures in an amount which
would permit
substantial reduction of its bank loans
(which approxi¬
mate $12,200,000)., Previous
debenture financing was

Central Illinois Light Co.
May 14 it was announced company plans to sell around
the middle of July
$15,000,000 of 30-year first mortgage
bonds.
Proceeds
To repay bank loans and for new

bonds.

($2,200,000 at Dtec. 31,
1956) and for construction program. Underwriters—Pre¬
vious bond financing was done privately.

bonds,

May 9 it

program.*

to issue

trust

Blackstone

Co., Inc.; White,- Weld & Co.; Stone & Webster Se¬
Corp-, and Estabroph;,& Co.-(jointly>* >
*
-

Proceeds—To

by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
Morgan Stanley & Co.; The First Boston Corp.

Kidder, Peabody & Co., New York.

—

Inc.

year. [On Oct. 24, 1956, $40,000,000
series M, due 1986, were offered and
Proceeds—From this issue and from bank loans,

these

sold.]

Carolina Pipe Line Co.
March 11 it was reported
company plans to construct a
pipe line in South Carolina at an estimated cost of about

construction

For advances to

•-.-//'•/;.*j

proposes

Empire District Electric Co.'
*
March 14, D. C. McKee, President, announced
company

share.)

to pay part of the cost of the
company's 1957 construc¬
tion program which is expected to total about
$146,000,-

Co.,

( ' 1

collateral

—

Underwriter—Dillon, Read & Co.,

25-year

curities

ic Consolidated Edison Co. of New York, Inc.
May 20, H. R. Searing, Chairman, said the company will
probably sell a new issue of first and refunding mortgage

& Rubber Co. in 1956.

Scott, Horner

price of $10

Co. (jointly). Bids—Expected to be received in
Sep¬

plan. There are no specific
objectives involved. Control—Acquired by General Tire

—

company

Valley Gas &
Co., a subsidiary. Underwriter—To be'deter¬
mined by competitive bidding. Probable bidders: Hal¬
sey, Stuart & Co. Inc.; Kidder, Peabody & Co.;-Blyth

Conn.; and Estabrook & Co., Boston, Mass.

its proposed recapitalization

announced

was

$3,750,000

Proceeds

Connecticut Light & Power Co.
Feb. 18, it was reported company
plans to sell not less
than $20,000,000 of first
mortgage bonds, possibly this
Fall, depending upon market conditions. Proceeds—For
construction program.
Underwriter — Putnam & Co.,
Hartford, Conn.; Chas. W. Scranton & Co., New Haven,

new

;

Whiter

sell

'.r Byers: (A. M.) Co.

Underwriter

average

Gas

sell in the Fall

building for the future and earning and paying divi¬
//, /'-//y;

$8,700,000.

Eastern Utilities Associates

and

Columbus & Southern Ohio Electric Co.

dends.

Lynchburg, Va.

Underwriter—Dillon, Read &

Tire & Rubber Co. financing.

April 15 it

company

Feb. 21 it

company may have to obtain

probably

Underwriter—For any bonds to be de¬
by competitive bidding./Probable bidders:
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; White, Weld
& Co., and Kidder,
Peabody & Co.: (jointly), :
;
i

termined

tember.

s»Birdsboro Steel Foundry & Machine Co.
additional

next two years.

Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.;
Merrill Lynch, Pierce, Fenner & Beane and
White, Weld

determined

was announced

Eastern Gas & Fuel Associates

April 3 it was announced company may need additional
capital of between $25,000,000 and $35,000,000 during tha

bers:

Proceeds—

$50,000,000 of 5% series C bonds. Underwriter

April 19 it

pected to cost approximately $87,000,000. Underwriter—
To be determined
by competitive bidding. Probable bid-

(7/31)

debentures due 1997.

new

f•'

announced that it plans the issuance
$25,000,000 additional debentures in Septem¬
ber (in addition to
$20,000,000 additional to be sold at
competitive bidding on June 6—see above). Proceeds—
To help finance 1957 construction
program, which is ex¬

registered with the Securities and Exchange Com¬

was

•

and sale of

—

Telephone Co. of Pennsylvania

Corp.;

'7;

Pro¬
ceeds—Together with funds from private sale of $40,000.000, for construction program. Underwriters—Lehman
Brothers and Allen & Co., both of New
York,

crease

Bell

Stuart

Co.;

stockholders at

about

April 25 it

.Cleveland Electric
Illuminating Co.
Nov. 12 it was reported
company plans to issue and sell
$25,000,000 of first mortgage bonds in the Summer of
1957. Proceeds—To repay bank loans and
for construc¬
tion program. Underwriter—To be
determined by com¬
petitive bidding. Probable bidders:
Halsey, Stuart &
Co. Inc.; The First Boston
Corp.; Blyth & Co., Inc.; Dil¬
lon, Read & Co. Inc.; Blair & Co. Inc., and Baxter, Wil¬
liams & Co.
(jointly); Glore, Forgan &

expire

not be

Halsey,

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

will offer its stockholders

five

ton

//7;//;/7,:r7::77/;

$3,000,000 equipment

bidders:

Co.

new construction.
Under¬
writer—To be determined by competitive
bidding. Prob¬
able bidders: Halsey, Stuart & Co.

Coastal Transmission
Corp.
6 it was
reported the company

May 17, 1957, the right to subscribe for 900,000
additional shares of capital stock
(par $10) on the basis
share

about

Trask

—-To repay bank loans and for

March

of record

of one new

Spencer

Electric

Montreal, Montreal, Canada <5/31)

was announced Bank

Probable

Inc.; Salomon Bros. & Hutzler.

Weld & Co.

May 7 it

certificates.

and

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

expected to be received by the company in July

for the purchase from

trust

^ Baltimore Gas'& Electric Co.
May 6 it was reported company plans to issue and sell
some first
mortgage bonds before July 1, 1957. Under¬
writer—To be determined by
competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co.
Inc.; White, Weld &
Co. and The First Boston
Corp. (jointly); Kuhn, Loeb
& Co.; Harriman
Ripley & Co. Inc., and Alex. Brown
& Sons (jointly).
1
I Bank of

are

Inc.

(jointly); Coffin & Burr,
(jointly). Bids — Now
expected to be received in latter
part of June.

Atlantic City Electric Co.

Halsey, Stuart & Co.

Inc.,

Chance Vought
Aircraft, Inc.
April 15 it was reported company plans to issue and sell
$12,000,000 of convertible securities (debentures of pre¬
ferred stock).
Underwriter—May be Harriman Ripley &
Co., Inc., New York.

was

reported company plans to issue and sell
in late Summer or
early Fall an undetermined amount
of bonds. Underwriter
Previous bond
&

and

bidding.

Probable bidders: The First Boston Corp.

if Gulf, Mobile & Ohio RR. (5/27)
Bids are expected to be received by the company on
May 27 for the purchase from it of $3,030,000 equipment
trust certificates. * Probable bidders:
Halsey, Stuart ©J
Co.

Inc.; Salomon Bros. & Hutzler.-';.,./-

74i Continued

page

The Commercial and Financial Chronicle... Thursday,

Sept. 12, it was announced company

Gulf States Utilities Co.
March

reported

was

plans to issue and

company

mortgage bonds in November. Pro¬
bank loans and for construction pro¬

sell $16,000,000 first

ceeds—To

repay

Underwriter—To be determined by competitive
Probable bidders: Halsey, Stuart & Co. Inc.;
Merrill Lynch, Pierce, Fenner and Beane and White,
Weld & Co. (jointly); Salomon Bros. & Hutzler and
Eastman Dillon, Union Securities & Co. (jointly); Kuhn,
Loeb & Co. and A. C. Allyn & Co. Inc. (jointly); Stone
& Webster Securities Corp.; Lee Higginson Corp.
gram.

bidding.

Gulf States Utilities Co.

reported company tentatively plans to
preferred stock this year. Proceeds
—To
finance construction program.
Underwriter—-To
be determined by competitive bidding. Probable bid¬
ders: Stone & Webster Securities Corp.; Lehman Bro¬
thers and Equitable Securities Corp. (jointly); Lee Hig¬
ginson Corp. and Carl M. Loeb, Rhoades & Co. (jointly);
Kuhn, Loeb & Co.; Glore, Forgan & Co. and W. C. Langley & Co. (jointly).
8 it

April

was

issue and sell some

Steel Co.,

Hanna

Birmingham, Ala.

April 8 it was reported company plans to issue and sell
120,000 shares of class A common stock. Price—$5 per
share. Underwriters—Cruttenden, Podesta & Co., Chi¬
cago,

111.; and Odess, Martin & Herzberg, Inc.,

Birming¬

Offering—Expected in June.

ham, Ala.

Hilo Electric

March 9 it

(Hawaii)

Light Co., Ltd.

bonds, series F, at an

Previous bond financ¬

ing was done privately.

this

$25,000,000 first mortgage bonds, but
timing, etc. has not yet been determined.
Underwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Equitable
Securities
Corp.; Lehman Brothers, Eastman Dillon,
Union Securities & Co. and Salomon Bros. & Hutzler
Fall approximately

exact amount,

(jointly); Lazard Freres & Co. and Blyth & Co., Inc.
(jointly); Kidder, Peabody & Co.
it

that company plans to

reported

was

offer

publicly $22,405,556 of 5%% interim notes (convertible
into preferred stock) and $18,241,944 of common stock
in units.

Part of

common

stockholders at

ent

struction program.

stock will be offered to pres¬

Proceeds—For con¬
Underwriter—Blyth & Co., Inc., San
$10

share.

per

Francisco and New York.

plans to issue and sell
stock in the
Fall in addition to between $10,000,000 to $15,000,000
first mortgage bonds after Nov. 1. Underwriter—To be
company

competitive

bidding,

probable bidders:

(1) For bonds—Halsey, Stuart & Co. Inc.; Salomon Bros.
Eastman Dillon, Union Securities & Co.
(jointly); Blyth & Co. Inc., Lazard Freres & Co. and
The First Boston Corp.
(jointly); Kidder, Peabody &
Co. and White, Weld & Co. (jointly); Equitable Securi¬
ties Corp. (2) For stock—Kidder, Peabody & Co.; Blyth
& Co., Inc., and Lazard Freres & Co. (jointly).
& Hutzler and

Indiana Harbor Belt RR.

(6/5)

Bids will be received by this company up to noon (CDT)
on June
5 for the purchase from it of $8,125,000 first

mortgage bonds due June 1, 1982. Proceeds—To refund
bonds due July 1, 1957.

Underwriter—To be determined

by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Salomon Bros. &
International

Utilities

Hutzler; Kuhn, Loeb & Co.

Corp.

April 17 stockholders approved

increase in the

au¬

thorized

common stock from 2,500,000 to 4,000,000 shares
(par $5). Underwriter—Butcher & Sherrerd, Philadel¬
phia, Pa., handled last equity financing.

Iowa

Gas

Stuart &

Halsey,

Corp. and Blyth & Co. Inc.
Co.

and

if Louisville Gas & Electric Co* (9/4)1*
May 14 it was reoorted company plans to issue and sell
$15,000,000 of first mortgage bonds. Proceeds—To repay

Underwriter—
To be determined by competitive bidding. Probable bid¬
ders:
Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co. and
American Securities Corp. (jointly); Kidder, Peabody &
Co. and Goldman, Sachs & Co. (jointly);. Harriman Rip¬
ley & Co. Inc.; Lehman Brothers and Blyth & Co., inc.
(jointly); The First Boston Corp.; Eastman Dillon, Union
Securities & Co. and White, Weld & Co. (jointly). Bids
—Tentatively scheduled to be received on Sept. 4.
bank loans and for construction program.

Louisville & Nashville

RR.

Electric Co%

April 1 it

are

the

Merrill

Stuart & Co. Inc.; Blyth & Co., Inc.,

Pierce,

Lynch,

Fenner

Proceeds—To

retire

loans

bank

Underwriter—To

and

determined

by competitive bidding. Probable bidders: Halsey, Stu¬
art & Co. Inc.; Kuhn, Loeb & Co.; Glore. Forgan & Co.;
The First Boston Corp.; Harriman Ripley & Co. Inc.;
Eastman Dillon, Union Securities & Co., and White,
&

Co.

(jointly);

Dean Witter & Co.; Lehman
Brothers; Equitable Securities Corp.; Blyth & Co., Inc.
Iowa

Power &

Light Co.

of cumulative preferred
ceeds — To finance expansion.

new

issue

50,000

stock

(par $100). Pro¬
Underwriter — Smith,:

Barney & Co., New York.

Brothers, and Bear, Stearns & Co.

(jointly)

Securities Corp. and Salomon Bros. & Hutzler

Equitable

(jointly);

Corp.; Dean Witter & Co.

Lake

Sulphur Co.

Dec. 27, Eugene H. Walte, Jr., announced company plans
In the
tures.

near

future to sell

issue of convertible deben¬

Proceeds—For expansion

Kidier,
Bids

Co.

capital stock

the basis of one new share for each

five

tion

warrants

expire on July 31. Subscrip¬
July 1.

shares held; rights to

expected to be mailed about

are

Price—At. par ($100 per share). Proceeds
loans.
Underwriter—None.
A

To repay
majority of

—

short-term

outstanding stock is owned by American Telephone

the

& Telegraph

Co.

New

England Electric System
Jan. 3, 1956, it was announced company plans to merge
its subsidiaries, Essex County Electric Co., Lowell Elec¬
tric Light Corp., Lawrence Electric Co., Ha /erhill Electric
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
Marrimack-Essex
Electric Co.
Underwriter—May be

competitive bidding. Probable bidders:
& 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, Pieice, Fenner & Beane,
Kidder, Peabody & Co. and White, Weld & Co. (jointly).
Offering—Expected in first half of 1957.

determined

Halsey,

Stuart

New Jersey Bell Telephone Co.
(9/11)
May 1 it was announced company plans to issue and sell

Proceeds—Together with pro¬
of

common

$100) to parent, American Telephone

stock (par

determined

program.

stock (par $ 100).
of these shares.
Northern

bidders:

Halsey, Stuart & Co. Inc.; Kuhn, Loeb & Co.;
Morgan Stanley & Co.; Shields & Co.; White, Weld &

York

New

Bids

will

Central

Bids—Tentatively expected

(6/11)

Y.,

to noon

(EDT)

the

•

New

York

Shipbuilding Corp.

the

shares for which

(5/28)

registration statement with
Proceeds—To MerUnderwriter—A. C. Allyn
'

Niagara Mohawk Power Corp.
tentatively plans to
issue and sell this fall about $40,000,000 of bonds.
Un¬
derwriter—To be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; The First
Boston Corp.; Morgan Stanley & Co.; Kuhn, Loeb & Co.

April 22 it

was

and Eastman

reported

(Minn.)

Power Co.

States
was

reported

company

1957 $15,000,000

if Ohio Power Co. .
May 15 it was reported that this company now plans to
issue and sell in September, 1957, $28,000,000 of first
mortgage bonds and $7,000,000 of preferred stock. Pro¬
ceeds—To repay bank loans.
Underwriter-^-To ;be de~
termined
by competitive bidding.
Probable bidders;
(1) For bonds—Halsey, Stuart & Co. Inc.; The First Bos*
Corp.; Blyth & Co., Inc.; Eastman Dillon, Union Se¬
curities & Co. and Salomon Bros. & Hutzler (jointly),.
ton

(2) For preferred stocks-Eastman Dillon/Union Securi¬

(jointly); Harri¬

Ripley & Co. InCi and Stone & /Webster Securities?
Corp. (jointly); The First Boston Corp.; Blyth.& Co.,
Inc.; Kuhn, Loeb & Co.; Lehman Brothers. Registration
statement filed Sept. 20, 1956, covering a proposed issue
man

60,000 shar.es -of preferred stock (par $100); for which
rejected on Oct. 30, last, is stilT alive.

bids were

Outboard Marine Corp.

April 22 it
tional

f announced company plans to offer addi¬
(sufficient to raise about $10,000,-

was

stock

common

000) first to stockholders and sell publicly $10,000,000 of
or

notes.

Underwriter—Morgan

Stanley

Meeting—Stockholders will vote May 24
approving financing .proposals: and a 3*for-l stock

;/^/////.:•

split,

Pacific

April

17,

company

Power & Light Co.
Paul B. McKee, President, announced that
expects to raise about $30,000,000 between

and the end of the year.

on April 16
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 Brothr
ers. 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 Dilloa, Union
Securities & Co. (jointly); Blyth & Co., Inc., Salomon
Bros. & Hutzler and White, Weld & Co. (jointly).
now

Stockholders

approved an increase in the authorized

Pacific Telephone &
Jan.-

Telegraph Co.

Cantlen, Vice-President, announced
company plans to spend $159,000,000 in 1957 and
$157,000,000 in 1958 for expansion and improvement to
be financed in part, by debt borrowings and stock issues.
About 90% of Pacific's stock is owned by American Tele¬
14,

James

that

phone & Telegraph Co. Underwriter—For any bonds, to
be determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Morgan Stanley

& Co.

Pennsylvania Electric Co.
Sept. 12 it was announced company plans to issue and
sell $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 &
Co. and White, Weld & Co. (jointly); Equitable Securi¬
Corp.; The First Boston Corp.; Harriman Ripley &
Inc.; Kuhn, Loeb & Co.
,

ties
Co.

Philadelphia Electric Co.
'Feb.

was

announced

the

company

and sell in the second half of 1957

plans to issue

additional first mort¬

Proceeds—For expansion program. Under¬
competitive bidding. Prob¬
& Co. Inc.; White, Weld &
Co.; The First Boston Corp.; Morgan Stanley & Co. and
gage

bonds.

writer—To be determined by

bidders: Halsey, Stuart

(jointly).

Principal Retail Plazas of Canada, Ltd.

for the

SEC recently became effective.

ritt-Chapman & Scott Corp.
& Co., New York.
■
-

•

company

June

May 7 it was announced that a secondary offering of
191,660 shares of common stock is planned. This is part
of 211,254

Drexel & Co.

in New York,
purchase
from it of $6,450,000 equipment trust certificates. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Salomon Bros. &

•

Co.

There are no present plans to sell any
,/ ■/> .' '
•
>■
./

sell in the Fall of

able

RR.

received

Gas

plans to issue and
first mortgage bonds.
Proceeds—For construction program.
Underwriter—To
be determined by competitive bidding. Probaole bidders:
halsey, Stuart & Co. Inc.: Merrill Lynch, Pierce, Fenner
and Beane, Kidder, Peabody & Co. and White, Weld St
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.
/
March

& Telegraph Co.,

expansion program. Underwriter
by competitive bidding. Probable

Co.; The First Boston Corp.
to be received on Sept. 11.

Illinois

May 9 it was announced stockholders will vote June 11
on approving a new issue of 300,000 shares of preferred

will be used to pay for
—To

Hutzler.

Iowa Southern Utilities Co.

April 2 it was announced company plans to issue and
gell $5,000,000 of first mortgage bonds later this year.
Proceeds —To repay bank loans and for construction
program. Underwriter—To be determined by competi¬
tive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Kuhn, Loeb & Co.; White, Weld & Co.; Lehman

Jefferson

and

May 21 the directors approved an offering to stockhold¬
ers of record June 20,
1957 of 584,176 additional shares

•

April 10 stockholders approved

The First Boston

Beane

Peabody & Co. (jointly); Blair & Co., Incorporated.
—Scheduled for week of June 17.
v-////:/

ceeds from sale of 900,000 shares

Weld

sell

$10,000,000 of convertible debentures due 1977. Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey,

Ry.

Co., New York.

(6/17-21)

Utilities Co.

Montana-Dakota

$30,000,000 of debentures.

bonds.

construction.

Northern

debentures

underwriting, with oversubscription privileges.
•

Inc.; Salomon Bros. & Hutzler.

offer¬

System operating companies during the
three-year period 1957, 1958 and 1959.
Underwriter—
Previous stock offering was to stockholders, without
of

stocks

(6/13)
received by the company on
purchase from it of $6,450,000 equipment
certificates. Probable bidders: Halsey, Stuart & Co.
expected

are

trust

ing of new common stock within the next year or so.
Proceeds—About $19,000,000, for investment in common

mortgage
new

Halsey,

if Middle South Utilities, Inc.
May 8 it was announced company may consider an

was reported company now expects to issue
and sell in the second quarter of 1957 $11,000,000 of first

for

Norfolk & Western
Bids

June 13 for the

ties & Co. and Salomon Bros. & Hutzler

expected to be received by the company some
time in the Fall for the purchase from it of $14,400,000
Bids

if Mountain States Telephone & Telegraph

around 200,000 to 225,000 shares of common

Co. Inc.; The First Boston
(jointly); W. C. Langley &
Smith, Barney & Co. (jointly).

bidders:

(7/1)

if Idaho Power Co.
May 16 it was reported

determined

1, 1958 and for construction program. Underwriter
be determined by competitive bidding. Probable

May 20 it was reported company plans to issue and

Gas & Oil Corp.

Houston Texas

Jan.
—To

equipment trust certificates.
Probable bidders:
Stuart & Co. Inc.; Salomon Bros. & Hutzler.

Lighting & Power Co.
13 it was reported company may offer late

Houston

March

Long Island Lighting Co.
April 16 it was announced company plans to sell later
this year $40,000,000 of rist mortgage bonds, series J.
Proceeds—To refund $12,000,000 of series C bonds due

announced company plans to issue and

was

sell $2,000,000 of first mortgage
interest rate not to exceed 6%.

Feb.

(7/16)
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 to be
received up to 11 a.m. (EDT) on July 16.
Jersey Central Power & Light Co.

Continued from page

•

May 23, 1957

(2434)

company

Dillon, Union Securities & Co. (jointly).

(Canada)

early registration is ex¬
pected of an issue of $15,000,000 of subordinated deben¬
tures due
1982 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
Feb.

was

reported

that

—

about
in

two-thirds

issue.

April 15 ft

...

„

Public Service

sell

be underwritten

Balance to

Canada.

was

Electric & Gas Co.

(6/18)

announced company plans to issue and

250,000 shares of cumulative preferred stock.

ceeds

—

About $25,000,000 for

derwriters—May be

Morgan

expansion program.

Stanley

Un¬

& Co., Drexel

/Co. and Glore, Forgan & Co. (jointly) or Merrill
Pierce, Fenner & Beane.

Pro¬
&

Lynch,

Volume

Number 5640

185

The Commercial and Financial
Chronicle

(2435)
Purex Corp., Ltd.
(Calif.)
April 30 it was announced that proceeds of at least $1,200,000 are to be received by the company prior to July
1, 1957. from the sale of new capital stock and used for
working capital. Underwriter—May be Blyth & Co., Inc.,
San
•

★
Tampa
May 8 it

sell

;"V. V!

rill
be

465,000 equipment trust certificates, due semi-annually,
from Jan.. i, 1958, to Jan. i,
1972, inclusive. Probable
bidders: Halsey> Stuart; & Co.
Inc.;' Salomon Bros. &

Ar Rochester
May

15 it

sell
and

some

announced

was

later

additional

common

\
issue

and

Underwriter

bends, to be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Shields &
Co.; The First Boston Corp.; Kidder, Peabody & Co.;
White, Weld & Co. (jointly); Salomon Bros, & Hutzler;
Blyth & Co., Inc.;; Eastman Dillon, Union Securities &
Co. and

Equitable Securities Corp. (jointly). For
stock, The First Boston Corp., New York.

negotiations

com¬

April 25 it

Probable bidders: Halsey,
Inc.; Morgan Stanley & Co. Bids—Expected

Edison Co.

20, Harold Quinton, President, announced that
for the balance of this year the company's present in¬
tention is to issue additional bonds and
probably a pre¬
ferred stock. He added that the company will
in

1957.

Proceeds

about

•

Southern

Californna

Gas

Co.

Utah

(6/27)

Southern Pacific Co.
Bids

April

for

• Southern Union Gas Co.

For

program;
Underwriter—May be Blair
Incorporated, New York.-

Proceeds—

summer.

April 15 it

construction

ments

let

and

level.

own

The

York

to its

current

offering
Co.,

New

Blackstone.

The

this

Public

ex¬

Service

Co.

priced

$70

taken

million

callable

Colorado's

IBM

delay.

; Telephone bonds, it
out, are by no means

was

piece,"

Even

currently

that

the

fact

are

pointed

"museum

bit

Soaks

though

1,050,223

amounts

IBM stock

is held

stitutions such
situation

week,
still

with

changed

down

fresh

around

ferings.^
This

offerings.
they

this

prospective -buyers

inclined to hesitate

however,

•

little

in .taking

Ultimately,
to

appear

absorbing

current

get
of¬

indicated

that this far, despite

havb been able

seeming

place

distribution

issue

for

the

new

offer¬

taken

other

recourse

ments

present

attract

rather

such

have

induce¬

buyers

turbulent

the

money

terminate

selling

The

agree¬

Electric

the

that
.

borrowers

With
for

Gas

New

York

State

issue, of $30 mil¬
lion, appeared to drag its feet for

investor

many

in¬

desire

prior rights
new

...

New

price

IBM

$220

should

rate

well

over

$220 million of additional capital,
which

bespeaks

drain

substantial

available

investment

funds.
t

Slow

Week
of

Ahead
new

week

which
even

is indicated for

though there has been

—Morgan Stanley & Co., New York.

small

are

Co. six months ago.
include

and

goodly
smattering of equity offerings.
a

Mr. Campbell became
with

Reynolds &

1956

after

associated
October,

Co. in

service

the

Army.

Customers' Brokers Assn.
To Hold
The

1957,
be

quarterly

will

Restaurant

held

meeting of
Customers'
at

Whyte's

Thursday, June 13,

4:15

served
a

With W. H. Morton

Quarterly Meeting

Association

p.m.

5:15

Cocktails
p.m.

rated,
York

Morton

Incorpo¬

Daeschler

now

associated

with their firm.

followed

at which time all will have

Also
will

Co.

will

Named Director
William

p.m.,

20 Exchange Place, New
City, announced that Robert

"Dutch Treat" dinner at 6:00

slow¬
next

July 9.

Manufacturing Co.

"My

elect

mittee.

this
the

meeting members
Nominating
I

Com¬

Saunders,

Vice-

President of A. G. Becker & Com*
pany,

has

Favorite Stock."

securities

Proceeds—

April 11, Gilbert W. Chapman, President, stated that the
company plans some long-term financing.
Underwriter

the opportunity to report on

probably will welcome the
down

York, N. Y.,

Remaining issues for the week

the

(7/9)

Co.; Morgan Stanley & Co.; The First Boston
Bids—Expected to be received at 195 Broadway,

certificates.

for

stock, it is indicated

Telephone Co.

in"
outward
complaint
of
Reynolds Representatives
digestion."
PHILADELPHIA, Pa. — Rey¬
The major undertaking on the
calendar for that period is Ten¬ nolds & Co., members of the New
York Stock Exchange and other
nessee
Gas
Transmission's
$50
million of bonds due out Tuesday principal
stock
exchanges,
an¬
by the negotiated route.
On the nounce that Donald J. P. Burke
same
day National Fuel Gas Co. and Frank J. Campbell III are
will market $15 million of deben¬ now associated with their Phila¬
office,
1526
Chestnut
tures, Community Public Service delphia
will sell $3 million of bonds and Street, as registered representa¬
Wabash Railway will open bids tives.
for $6.6 million of equipment trust
Mr. Burke joined Reynolds &

Brokers
a

new

announced company plans to issue and sell

Yale & Towne

Allyn

take

trust funds and

one

held.

Distributors
recent

probably

their

ratio

each

probably
the
of any "sweetener," such
five-year non-callable clause,
to assure buyers of the initial re¬

At least there
neces¬

the

Tele¬

Some1

who

exercise

lag

market.
course.

has not been any apparent
to

reasons

others

absence
as

the

sluggishness, sponsoring syndicates

sity

the

Inducements

turn for at least that period.

appears

ings in due

phone's

fact

One

Funds

out of the general market.

money

surprising.
Special

the

shares is bound to

considerable

obstinate side, the sluggishness of
the issue now on the market is

Underwriters and dealers found

national Business Machines Corp.'s

the

non-

moved

corporation's
holders get first chance to sub¬
scribe, an offering such as Inter¬

reason,
in
that buyers

for

and

addition

similar

provision

buyers.

yield 4.40%, will be
without
any
serious

with

was

Stuart &

Corp.

(other than Eastern Utilities

con¬

the

slow

Securities

$30,000,000 of 35-year debentures due 1992.

also announced Blackstone plans to offer
stockholders

4^s,

away

and

For construction program.
Underwriter—To be deter¬
mined by competitive bidding. Probable bidders:
Halsey,

paragraph.

fident

the

(joint¬

latter, in turn,
the first three

negotiated sale

offering, also for $30 million, and

not

Dillon,

fortified

got

Union

Co. (jointly); Kuhn, Loeb
Co., Inc. (jointly); Kidder,
Peabody & Co.; The First Boston Corp. * (2) For any
common stock"(probably first
to'stockholders), The First
Boston Corp., Merrill Lynch, Pierce, Fenner & Beane,
Robert W. Baird & Co. and William Blair &
Co.(jointly).
Co.

Co.,

this week; but observers are

equity financing out of the way,
things may pick up a little in the
new issue
market, notably in the
fixed term security section.

Dillon,

Wisconsin

start

ample,

Perhaps with International
Business Machines Corp.'s massive

Fenner & Beane, Salomon Bros. & Hutzler and Eastman

Under¬

Bids—Tenta¬

a
time even though it carried a
five-year non-refundable clause.
But
it
picked up this week as

///'''Wr/

Telephone

company,

Electric

mentioned

was

common

security seek its

dispose

securities

new

Gas

assets

proposes

$10,000,000 of debentures this

announced

was

For preferred stock, to be determined by competi¬
bidding. Probable bidders: Merrill Lynch, Pierce,

April 3 it

Valley

certain

reported company plans to issue and sell

about
.

Blackstone

equipment trust certificates. Probable bidders: Halsey,
Inc.; Salomon Bros. & Hutzler.

& Co.

announced stockholders will vote May 28
increasing the authorized preferred to 300,000 shares
200,000 shares and the authorized common stock
from 3,000,000 shares to 4,000,000 shares. Underwriter—
from

subsidiary of
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

(7/25)

Public Service Co.

was

Valley Gas Co.

Stuart & Co.

was

stock.

(7/10)

$20,000,000

Wisconsin

April 24 it

(1)

common

Power Co.

announced company plans to issue some
senior securities, probably about

was

bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Eastman Dillon, Union Secu¬
& 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 to be received up to 11
a.m.
(EDT) on July 10.

tive

ly); Lehman Brothers; Blyth & Co., Inc.
tively scheduled to be received on Oct. 1.

are

May 16 it

determined

rities

also announced company plans to offer

was

bidders:

of first mortgage bonds due 1987. Proceeds — To
repay
bank loans and for new construction. Underwriter — To
be determined by competitive

(10/1)

public 400,000 shares

Penn

additional

issue and

Fenner & Beane
(jointly); Eastman
Union Securities & Co. and Smith,
Barney & Co.

expected to be received by the company on July
25 for the purchase from it of
approximately $9,000,000
of

the

V;!: 4..;.

Probable

Dec. 27 it

Oct. 1.

Light Co.

com¬

by competitive
Halsey, Stuart & Co. Inc.;
Dillon, Union Securities & Co.; and Lehman
Brothers (jointly); Blyth & Co., Inc.; Smith,
Barney &
Co., and White, Weld & Co. (jointly); W. C. Langley &
Co. and The First Boston Corp.
(jointly).

bidding.

(10/1)

Pierce,

Co., Inc.
Lynch, Pierce, Fenner & Beane (jointly);
White, Weld & Co. and Eastman Dillon, Union Securi¬
ties & Co. (jointly).
Bids—Tentatively expected to be

Underwriter—To

gram.

writer—To be determined by competitive bidding. Prob¬
able bidders: Kidder, Peabody & Co. and Merrill
Lynch,

Meirill

;

Power &

15,
15,

Eastman

$15,000,000 of first mortgage bonds due 1987.
To repay bank loans and for construction

March 12 it
to

writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co.
Inc.; Blyth &

June 27.

—

21 it was announced
company plans to issue and
$35,000,000 of first mortgage bonds due 1983. Pro¬
ceeds—To repay loans and for new construction. Under¬

are

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

sell

received

which

Union Securities & Co. and

Jan.

and

stock

company plans to

Jan.

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¬

—

scheduled to be received

dated

Washington Water Power Co.

early registration is expected

Light Co.

certificates, series H, to be

April 1, K. M. Robinson, President, stated that the

Underwriter—To be determined by competi¬
bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; The First Boston Corp. and Blyth & Co., Inc.
(jointly); Salomon Bros. & Hutzler; Eastman Dillon,

(2) For preferred stock: The First
Corp. and Dean Witter & Co. (jointly).

trust

pany

common

announced

(5/28)

Halsey, Stuart

tive

$30,000,000

Kuhn, Loeb & Co.
Boston

was

& Co. Inc.; Salomon Bros. & Hutzler.

program.

total of

$70,000,000 may be raised in 1957, in¬
from the sale of 1,200,000
shares of $25 par preferred stock early in June
(see
preceding column). Underwriters—(1) For any bonds, to
be determined by competitive
bidding. Probable bidders
may include: Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.;
The First Boston Corp. and Dean Witter & Co.
(jointly);

cluding

Power &

sell about

than $180,000,000 of new money in 1957 and
1958,
to the $37,500,000 bond issue of
February,

addition

Inc.; Kuhn,'
Corp. (jointly);
Hutzler; Eastman Dillon, Union Secu¬
Co.; Stone & Webster Securities Corp.; White,\

West

Utah

certain

Dealer-Manager—May be Kidder*;

1957 and mature in 15 annual installments from Jan.
1958 to 1972, inclusive. Probable bidders:

not subscribed for by minority stock¬
Proceeds—To pay in part the conditional sales
covering 33 Lockheed aircraft. Underwriter—

March 12 it

payment

Valley

common stock, plans also to sell in
$20,000,000 of debt securities, r Probable bidders

Wabash RR.

ment

working capital.

require

•

★ Transocean Corp. of California
f
May 21 it was announced company plans a public offer¬
ing of securities to provide about $6,700,000 of new

March

Bids will be received by the
company up to noon (EDT)
on May 28 for the
purchase from it of $6,615,000 equip¬

•

Airlines, Inc.
of

part

stockholders

stock

Weld & Co.

was announced

common,

common

additional

rities &

None.

for

part of May.

Southern California

Salomon Bros.

securities

any

contract

18.- Registration—Planned

receive

for bonds may include:
Halsey, Stuart & Co.
Loeb/& Co. and American Securities

subscription by common stockholders on a
share-for^share Itesis.: Hughes Tool
Co., owner of 74.2%
of the TWA
outstanding common stock will purchase
holders.

latter

sale

offered for

000,000 of 29-year debentures due June 1, 1986. Proceeds
Underwriter—To be deter¬

June

V '

; Virginia Electric & Power Co.
March 8 it was announced
company, in addition to pro¬
raise late this Spring $22,000,000 through the

Auchincloss, President, announced

pf 3,337,036 /shares

mined by competitive bidding.
on

and

$2,500,000

posal to

were under way

Trans World

—For construction program.

received

last standby.

parent)

the

Peabody & Co., New York.

with an underwriting firm
looking to a public offering of capital stock. Proceeds—
For working capital.
Business—Electronics. Underwriter
—May be Lee Higginson Corp., New York and
Boston,
who handled previous stock
financing.

Southern Bell Telephone & Telegraph Co. (6/18)
Feb. 25 directors authorized the issue and sale of
$70,-

★ Tracerlab, Inc.
May 17 Samuel S.

Underwriters-rGoldman, Sachs & Co.; Halsey, Stuart &
Co. Inc. arid Lehman. Brothers, all of New York.

Stuart & Co.

Co.,

Blackstone properties.

Allyn & Co. Inc. (jointly); Mer¬
Lynch, Pierce, Fenner & Beane. Bids—Expected to
received on July 17.

manager

it Sears Roebuck Acceptance Corp.
May 15 it was reported company plans to issue and sell
between $50,000,000 and $100,000,000 of debentures be¬
fore the end of 1957, depending upon market "conditions.

Gas

—

217,286 additional shares of common
stock, first to stock¬
holders of record5 /about June 28 on. a l-for-10
..basis;/
rights to expire on July 16.
Price—To be set by the
directors on June 26.
Underwriter—The offering may
be underwritten.
Goldman, Sachs & Co. acted as dealer-

—For

mon

mortgage

its

latter

the Fall

of first mortgage bonds

stock in 1958.

first

the

_'.>V

plans

company

this year $15,000,000

Tampa Electric Co. (6/28)
May 8 it was announced company plans to issue and sell

Gas & Electric Corp.

$18,000,000

Associates

plans to issue and
bonds.
Proceeds

company

Loeb & Co. and A. G.

be .received by this company up to
riooh (EDT) on May 23 for the purchase from it of
$2,-

(7/17)

Bids jare expected to

Hutzler.

Co.

announced

To 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,

Francisco and New York. ;■

Reading Co.' (5/23)

Electric
was

Chicago

been

investment house,
to the board of

elected

directors of Pacific Far East

Line

Inc., it was announced by Thomas

Chronicle

The Commercial and Financial

(2436)

The following

Indications of Current

latest week
week

Business Activity
STEEL INSTITUTE:

AND

IRON

May 26

Week

Ago

Latest

*84.2

§2,220,000

COMMERCE

2,396,000

2,269,000

*2,155,000

CORPORATIONS—U.

Month

—

DEPT.

condensate

and

(bbls.)

Gasoline output

26,214,000

2,080,000

ENGINEERING
8.

12,264.000

12,451,000

7,952,000

7,828,000

March

(000's

197,402,000
21,907,000

198,332,000
21,105,000

202,904,000

187,708,000

79,119,000

19,823,000
74,156,000

19,332,000
64,945,000

37,571,000

36,758,000

33,119,000

718,924

673,964

777,606

616,408

610,677

612,180

660,686

$357,673,000

$385,205,000

$394,532,000

$300,211,000

—May 1G
.May 1G

10
10

82,260,000

38,745,000

—

Public construction

Bituminous

....

municipal

234,218,000

(pounds) March 31
(pounds)
s
(pounds)

Consumption

54,551,000

May 11

SALES INDEX—FEDERAL RESERVE
SYSTEM—1947-49 AVERAGE == 100
May 11

498,000

122

(tons)

Shipped (tons)

263,956

205,384

___________j

_—

_______

Produced

Linters

76,261-

•

(tons) March 31—

Stocks

129

*132

INDUSTRIAL)

AND

(COMMERCIAL
BRADSTREET, INC

FAILURES

—

Hull Fiber

steel (per gross ton)
.....
(E. & M. J. QUOTATIONS):

Scrap

5.670c

Louis)

..May
May
May
May
——May
May
.—May
.May

...

at
at

(St.

Lead

(delivered) at_—
...——.—.
Zinc (East St. Louis) at
;
Aluminum (primary pig. 99% ) at
Straits tin (New York) at
fZinc

$64.56

DAILY AVERAGES:
Bonds—

$44.17

$42.17

31.100c

31;575c

31.500c

45.659c

29.300c

2U.OIOC

2.9.570c

44.200c

15
15

15.500c

16.000c

15.800c

15
15

12.000c

12.500c

14.000c

Utilities

Industrials

12.000c

13.500c

25.000c

24.O00c

98.500c

98.375c

99.625c

89.55

89.48

89.94
96.54

U. S.

105.00

benefits

100.16

100.49

101.31

108.16

Death

98.57

98.88

99.36

106.74

96.23

96.69

104.66

Disability payments
Annuity payments ——

Utilities

Public

88.27

88.40

89.64

93.97

95.16

103.64

107

*129

*121

;

$192(500.000
52,600,000 -/
8,800,000 v

66,500,000

98.85

105.17

Policy

96.85

97.16

97.78

10,900,006

8,900,000

61,506:000 •»%. 40,700,000

41,900,000

Surrender values ____'—

96.54

fv-

106.04

2.90
3.45

3.72

3.67

3.27

3.82

3.79

3.35

3.39

4.03

4.02

,3.74

dividends

;

3.96
4.44

86^000,000

4.14

-4.06

(000,000's omitted):

3.97

3.95

$3,123

$2,580 ;

495

464

510.;

1,242

"'683

$4,898

$4,2G9

$3,686

$30,129

•$29,884

$27,009

$3,161

3.53

3.99

$595,900,000 ^ $451,400,000

PURCHASES — INSTITUTE
LIFE INSURANCE—Month of February

3.72

,4.14

76,800,000
80,000,000^-

122,100,000,!.

$495,000,000

Ordinary
Industrial

3.47

4.53

98,000,000

94,400,000
;—-—

—

LIFE INSURANCE

3.84

3.44

•3.99

4,54

■'*

3.99

,/•

•3.95

May 21

Group

3.34
3.97

3.38

_—May 21

506-;

3.39

3.93

3.89

406.3

407.5

,417.3

■
'

412.0'

—.May 21

MOODY'S COMMODITY INDEX-

MANUFACTUBEBS' INVENTORIES AND SALES
(DEPT. OF COMMERCE) NEW SERIES—

'xT

NATIONAL PAPERBOARD ASSOCIATION:
Orders received (tons)
Production (tons)

—May 11

257,884

381,000

259,607

251,309

__.May 11

291,074

272,124

284,442

294,894

—

—May 11

•>:

456,700

493,679

463,194

583,953

OIL, PAINT AND DRUG REPORTER
1949 AVERAGE = 100

PRICE INDEX—

Month of February

(million of dollars):

Inventories—

—May 11

Percentage of activity
Unfilled orders (tons) at end of period

*124

96.23

.May 21
May 21
Group

i-.

$236,906,000
-

56,400,000

93.97

—May 21
May 21

Group

1C4

•121'

■:

v -

$207,400,000

—-—

100.49

—May 21
May 21
May 21

Aaa

Industrials

132

Total

Average corporate

'•

135

Matured etulowments

96.23

May 21

115

INSURANCE—BENEFIT PAYMENTS TO
— INSTITUTE
OF LIFE

—May 21

AVERAGES:

Z-5

93;

INSURANCE—Month of February:

May 21

Government Bonds

Railroad

115

POLICYHOLDERS

94.73

95.77

Group

BOND YIELD DAILY

MOODY'S

;

1.370

97.125c

15
15

95.62

...

Group

5,115
"•

100

(average

.May 21

Public

,J[.-

SECOND FED¬
FEDERAL

(average

May 21

••

V.V'r 1,263

1,310

1,299

monthly), unadjusted
daily), unadjusted._______—
Sales (average daily), seasonally adjusted—
Stocks, unadjusted __________—
.____—
Stocks, seasonally adjusted

14.000c

11.500c

SALES

.May 21

Group

673 V

-3,133

1,089
1,336

—

Average=100—Month of March:
Sales

15.800c

—

Railroad

/>,4

2,886

—

832

•

BANK OF NEW YORK—1917-19

Sales

16.000c

15.300c

LIFE

Baa

745

100

456

;

DISTRICT,

RESERVE

—May 21

140,983 "

-*•

---_

STORE

DEPARTMENT

May 21

•

corporate

Average

—

149,181

$50.33

May 21

U. S. Government

a__

.--i

Shipped

$60.29

$45.83

MOODY'S BOND PRICES
*

^____h-__—_____
(1.000 pounds)—

5.179c

$64.56

821

Motes, Grubbots, etc.

279

5.670c

800:
574

ERAL

—

at—

refinery

Export

at..

refinery

Domestic

553

PRICES

Lead (New York)

-J_

—

Stocks March 31

Electrolytic copper—
'•

302

208.617;,

;

(per gross ton)

Pig iron

;

148,579

Produced

10,875,000

267

5.670e

.May 14
May 14
May 14

Finished steel

METAL

''.I'

152,075

264

May 1G

COMPOSITE PRICES:
(per lb.)———...u——

(RON AGE

(1,000-lb. bales)—

224,957

111,642 ;

128,329

220,461

—

113,352

/
'

(running bales)—

Shipped

DUN

101,977

123,833' :

11,485,000

11,311,000

11,519,000

199,479
140.675

109,175

j 74,372 ::.

Stocks March 31_.

■DISON

May 18

229.954 A

;■;

64,569

;

86.064

■•

(tons)

Stocks March 31—

ELECTRIC INSTITUTE:
Electric output (in 000 kwh.)

250,690

238.857

156,669 v :

228,210

192,415

—

—__

DEPARTMENT STORE

133

396,811,000
288,422,000
132,848,000v 180,538,000 *
113,600,000- 148,382,000/

Hulls-

9,850.000
402,000

9,900,000

*9,570,000
499,000

9,655,000
479,000

May 11

—

285,071,000
106,624,000
109,669,000

—

March 31

(tons)

Produced

Shipped

(tons)

168,001,000^ 155,007.000- ~
Z 170;419,000 P .170,524.000 . 141,750,000: < 193,507.000 T

113,689,000

Produced

108,564,000

26,447,000

140,395,000
33,201,000

GG,198,000

Refined Oil-

(U. S. BUREAU OF MINES):

anthracite

<*/// ^

Shipped (pounds)

137,096,000
163,115,000

140,284,000

173,596,000

168,020,000

227,801,000
166,731,000

211,609.000

894,539

139:383,000

„

Cake and Meal-—

123,455,000

496,535

1,176,052

142,267,000

(pounds) March 31

Stocks

coal and lignite (tons)

Pennsylvania

''.43,354:,.
:40l,57ftvv

801,003

Produced (pounds)

ENGINEERING

Federal

COAL OUTPUT

Stocks

;

38.263

399.699

>24,650"^

—

(tons)

mills

(tons)

(tons) March 31

Stocks

723,392

Crude Oil—

construction

State and

Stocks

construction

Private

Crushed

$1,607,100

$335,400

SEED PROD¬
COMMERCE—Month of

•

Received

8,244,000

COTTON

AND

Cotton Seed—

11,462,000

8,370,000

—May 16
;——.___—.May 16
—_.——May 16

CONSTRUCTION

March:

12,772,000

SEED

UCTS—-DEPT.

7,911,000

freight loaded (number of cars)
May 11
freight received from connections (no. of cars)—May 11

NEWS-RECORD:
Total

2,263,000

ASSOCIATION OF AMERICAN RAILROADS:

CIVIL

7,028,950

2,048,000

COTTON

26,403,000

2,134,000

7.633,000

2G,019,000

output (bbls.)
Distillate fuel oil output (bbls.)—
.May
Residual fuel oil output (bbls.)—
May
Stocks at refineries, bulk terminals, in transit, in pipe lines—
Finished and unfinished gasoline (bbls.) at
—May
Kerosene (bbls.) at
May
Distillate fuel oil (bbls.) at
—
I
—May
Residual fuel oil (bbls.) at
May

i Revenue

7,441,950
7,899,000
26,322,000

7,529,450

7,483,800
!I8,050,000

..May lo
__May 10

;

:—:

Kerosene

Revenue

Ago

$1,670,700

output—dally average (bbls. of
42 gallons each)
;
_May 10
Crude runs to stills—daily average (bbls.)
;—
May 10
oil

Year

Month

AMERICAN PETROLEUM INSTITUTE:
Crude

CASH DIVIDENDS—PUBLICLY REPORTED BY

97.3

88.7

that date:;

are as of

of quotations,

Ago

«86.7

May 2G

cases

Year

Equivalent to—
Steel ingots and castings (net tons)

or,

either for the

are

Month

Week

(percent of capacity)..

steel operations

Indicated

that date,

production and other figures for ths

cover

Dates shown in first column

month available.

month ended

Latest
AMERICAN

statistical tabulations

23, 1957

..Thursday, May

Durables

19.888

*21,614,

21,718

Nondurables

$51,847"

$46,897

>. 29,179

•29,183

27.224

3.96

4.16

3.69

6.31

6.47

4.82

4.85

4.6 L

4.58

-2.92

2.99

4.16

4.35

109.08

110.97

110.44

—May 17

TRANSACTIONS FOR ACCOUNT OF MEM¬
BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which registered—

•$51,490

ROUND-LOT

Total

purchases

Other

sales

330,700

176,290

169,320

341,490

1,400,690

963,230

928,980

1,341,180

Railroads

1,731,390

1,139,520

1,098,300

1,682,670

Utilities

.Apr. 27

392,220

—

Other transactions

Initiated

the fiodr-—

Total purchases

—

.Apr. 27

427,860

Apr. 27

594,739

Total purchases

Short sales
Other

—-—

—

sales

68,110

425,430

78,490

520,319 '

886,548:'

501,4a0
630,320

598,809

1,026,198
2,681,849

.Apr. 27

706,535

1,702,300

1,772,060

—

504,650

265,160

312.560

2,715,098

1,742,439

1,653,810

AND

2,007,599

1,966,370

•

Service. Industries

Dollar value

•

;
'<

1,474,328

1,001/859

*74,561,79*

$48,716,705

Customers*

short"eales;

Customers'

$80,669,715

1,303,349/.

.1,289,8*0

.Apr. 27,

-$66:219,290

.Apr. 27

——-

Apr/27 r

Number of shares—Total sales.

.Apr. 27

Short sales
Other sales

855,302 -

855,325

7.562

;

1.149,154
/'*

9,809."

847.763

TotaL nonagrtcultural.

$35,786,084

$57,937,557'

PRICES
.-

226,880;

All

262,400

213.150

35*640
518,200
>

FOB ACCOUNT

MEMBERS

Total round-lot sales—i

(SHARES)

• v

262~400

226~08O

369,720/. :

.'r

343,330

Apr^27

> 657,060"

8,664,680

Apr. 27

_i._

13,932,630'

8,409,770 -»
8,862^90

9,047,-350*

AH' commodities^
-Farm

products
Processed foods.

—

C. S. DEPT. OF

;

117.2

14
:

May 14 -

90.0

105.L

AtajriAr
-May 14

13,820,540

•

90.8

125;3

88.6,

*125.4

114.3

117.2

*90:2

*104.4-/

;

90.7

•10fc8

86.6

125.3

121.8

;

79.6

fIncludes 875,000 barrels of foreign crude runs. fBased on new annual capacity of 133,459.150 tons, ae.
baais'of 128.363,090 tons. : ^Number of orders -not reported-since introduction of
Monthly Investment Plan. tPrime Western Zinc sold on delivered basis at centers where freight frorrr East St. Louis exceeds

...1
.

'if%' •?«*.

304D

321.3-.^

Vv:
23-^'

'■■•uX-U. 237..
236

/;■

237'

221

h—

238
260

;

;
;;

>1-263

;

274-

403\t

458 vf

221.,

266

•/•

«'

245-

.196

',224

>'•'

150

?%L'

211 z*

153

459-

26ft--

221

249--

187

157
v -

267

•

223-

'■'%

260

448?

•„

v/"-.'-

1744.

235..
'v

265

————

v267*..'
-r-

181"

;

235

236

250r_

255-?

,.r_v 18*

22$--,

233-'
225

230

Poultry; and: eggs_

REAL

90.8

104.6

...." 1

>■

224--

—

«•,■- j

- .

* - ^

:''

ESTATE^ FINANCING

AREAS
-

IT/ Si —HOME

BOARD—-Month

of- Feb;

NON-FARM
BANK
omitted^ i ■-

LOAN

(OGO's

associations
Insurance companies —
Bank and trust companiesMutual sasings"banksIndfyiduals

$644,050

Savings and loan
\

1957^as against Jan<-1,-1956

po.UDdy-»_^

28.0*

.•

c~*y\

Meat animals

■

;T; Wool u

*Revised figure,

one-half fept. a

3(A7-r

V
"

31^14

—

Dairy products,

All commodities other thaa. fann and foods.
=•"

INDEX

>. Livestock..

13,297,780

Meats

—

products——

Tobacco

WHOLESALE PRICES, NEW SERIES
LABOR —<1947-49= 100):

Commodity Group—

farm

Potatoes

.*■' *:

.522,760

453.720

382,770

: -13,275,630-

Apr: 27.

TotaLsales

FARMERS

Fruit

Other sales.-

5.71

Oil-bearing crops

Short sales
,

RECEIVED

Peed, grains and' hay_
Food, grains

609,670

4»ii.

7.2 ;
>

i.'.z

*cottoir

—

37,2.:

-4-2012
—32232-ffr-

Crops
Commercial vegetables^ fresh-

.: &

;

6.7

; 309

— "fTi
S. DiPC OF- AGRXCUL>
TUBE—1940-1611=100—AS Of March 15:

•/.

Apr: 27

29.6

.-i

38.9

7.5

BALER ON TUT N. Y2 STOCK

3L4-

51.5

——

58.4 v'

61.5-

'■*

'39.0 f

NUMBER

;

EXCHANGE AND ROUND-LOT. STOCK TRANSACTIONS

213,1501

dealers

TOTAL BOUND-LOT.STOCK

95.1
'

-r"

220.3

;

-6.7-

thaeme

6,222

1,142,932

846,492

$41,380,676

354,640

Apr; 27" ;

Eaund-lot purchases by
Number of shares

31.5

Other labor income;
—,—s:——
Proprietors and rental income________—
Personal interest Income and dividends—_

Round-lot sales by dealers—V
•

61.8

10L9-

10$:9

—

$378.6

:'233c?->;i

14.109

.Apr/27

other-sales.

$336.6# i ;

'•

234.2

Total transfer payments-.,—;—

•v

.Apr/27

;

Dollar value-,

•;

1,493,9.79

964.343

$44,658,718'*

$337.6

—Apr: 27

-__

£25,390,000 f-

£17,205,000

•'

contribution for special- in-

Less employees'

—

—_

^'Government

sales-,by dealexA (customers'-purchases>T—t
,/ ' Number of shares
——Apr. 27
Odd-lot purchases by dealers- (c.ustomjpra' sales)— :
Number of-orders—Customers'. total 6ales_

3.67

personal income
Wage and salary receipts, total
Commodity producing industries
Distributing industries .—

Gddi-k>i

___—

£20,9983)00.;

COMMERCE)—Month

(DEPARTMENT

2,779,965

EXCHANGE COMMISSION:

2.89. v-

THE UNITED STATES

of March (In billions):

2.348.365

3,219,748

ODDSPECIALISTS ON N. Y, STOCK

SECURITIES

«•"

431,600

.Apr; 27

——

STOCK TRANSACTIONS FOR ODD-LOT-ACCOUNT OF
DEALERS

PERSONAL INCOME IN

2,465,145

.Apr. 27

IN GREAT BRITAIN
MIDLAND BANK LTD.—Month of April

774,645

.Apr. 27

.......

4.35

ISSUES

CAPITAL

Total

sales

4.97
4.66
.

541,445

128,840

^___—1- "

(lO)

(199)

Average
NEW

—

Short sales:

EXCHANGE

383,380

Insurance

Tel.) (24)—

.Apr. 27

Total sales

LOT

322,650

(25)

(not incl. Amer. Tel. &

300,650

237,750

account of members—

Total purchases

Other

223,350

269,270

(125)

Industrials

22,000

258,890

139,650

.Apr. 27

;

Total sales
Total round-lot transactions for
;•

14,400

floor—

Other transactions initiated off the
W

199,310

10,380

462,160

.Apr. 27
.Apr. 27

sales

Total sales

322,810

264,870

34,300

.Apr. 27

Short sales
Other

COMMON

1,694,880

Apr. 27

—

Total sales

100

1,GOO,890

1,119.610

1,081,760

—.Apr. 27
—Apr. 27
—Apr. 27

—

Short sales

AVERAGE YIELD OF
STOCKS—Month of April:

WEIGHTED

MOODY'S

Miscellaneous

% j v.

Total

/lending

308,346
95.845

$658,837/

352,771 r

136,430^*
"421,330_

116.755'.v*

27L303..

303,865-

324.867

institutions—

$699330

133:612. ^ V

104.879 •'
.

1127.468
; 269^39 T-,
.

376.440-

$1t749;322.'v ^'..
,

395,215:

$t,042,280 " '$2,00,780 ;*

^ - v. vvK r-f-'

Volume

Number 5640

185

.•.

The Commercial and Financial Chronicle

(2437)

•

Ira

(Special to The Financial Chronicle)

CHICAGO,

111.

Mutual Funds

Robert

—

Crumb and Robert

Wick have

Weeks, 134 South La Salle Street.
Crumb

was

Mh Wick

with Lamson Bros.

was

Long-Term Prosperity Seen by Schreder

& Co.

"While the need for

Joins Griffin McCarthy
.

(Special to The Financial Chronicle)

remains, there is
_

MIAMI

BEACH, Fla. —Jack L.
has
joined the staff of

Terner

Griffin McCarthy,' 8340 Northeast
Second Avenue. -'
; : • ■
•

short-term correction in the stock market

rising tide of evidence that the 1955-57 lows

for the prominent

stock indices

established last February,"
leading investment economist
Group Secu¬
rities, Inc., $103,000,000 mutual fund. "Although
the adjustment that has been
going on for the
past year and a half is not over yet," Mr.
were

according to Harold X. Schreder,
and Executive Vice-President of

Schreder

added, "any additional business and
changes during 1957 should be rela¬
tively moderate."
"Basically,

INVESTMENT

other

this

section of

should

year

represent

that

corrective

market

advanced

than

movements

already

are

those

Using

FOLDER AND PROSPECTUS TO
YOUR INVESTMENT DEALER OR

the

RESEARCH CORPORATION
Established 1930

Harold

Schreder

Mr. Schreder is in Cleveland in connection with his
appearance
speaker at the Annual Convention of the National Federation

as a

Analysts which is being held at the Statler Hotel in

Mr. Schreder pointed

out that during the "sideways" move¬

ment of stock market averages

INCOME?

htMithtd 192$

amount of correction in the

fist

securities

selected

possi b I

for

GROWTH of CAPITAL and
INCOME in the years

stock market."

Mr. Schreder stated that the

invested

mutual fund

declines of 20% to
"In short," he added, "there has already been a tremendous

40%.

Investors

FUTURE

since September 1955, many leading

individual stocks had suffered "bear market"

..jrporaled

opportunity for

"spread" in stock prices reflected

change of position by investment managers to

take advantage of the long range outlook for the economy*

"Personally," said Mr. Schreder, "I can't tell

ahead.

for

A Incorporated

E?
INCOME?

■

*
Income **
Fund
whos, ,its(

w'">ou.
P'tncipol.

than

are

market*"

prtce and

are

below
are

value charts of

seem

prospectus

each ~*;v.

investment dealer»

to be individually

"Despite the fact that

risk, good income stocks to

own

retail trades,

utilities, tobacco and food: in such 'depressed' industries

building,

Vk'W
^Boston, Mass.> »>';
•

bear

mind

that

think

that

the

1955-57

yet, I do believe that
business

background

nor a

said Mr. "Schreder, "while I do net

business

one

and

market

should not expect

adjustment is
a

services

over

measured

from

decline in

severe

decade, "with attendant high levels of

em¬

Corporate earnings,.as

by the Dow-Jones Industrial Average, should increase

today's $36 per share level to the $55-$60
today's $23 level.

the

Average stock

(Dow-Jones Industrial)

800

decade.';.-.'

dividends

area,

Thus, the normal value for
should

and stock prices could well double

more;

<■'

easily rise to
the

over

Legislation
Congress would

the

upon

passage

New

York

equal to $32.90
.849,602 outstanding
These compared with $27,879,299 or $32 a share on 871,312
shares on Dec. 31 and
$28,485,704
or $30.68 a share on
928,360 shares
on March
31, 1956. Net asset value
on
April 24, 1957 was equal to
$34.36 a share, an increase of 7%
over
Dec.: 31, 1956, and an in¬
share

worth of

47%

over

starting net

$23.35

per share in Au¬
gust 1954, Armand G. Erpf, Presi¬
dent of the fund, and
Henry C.

Brunie, Chairman of New York
Capital Management Company of
Canada, Ltd., investment adviser
to the fund, state in the
report.

86%; short-term liquid items, 9%;
other priorities, 5%.
NonCanadian securities, which include
Canadian incorporated companies
having their assets outside of Can¬
ada, amounted to 31% of holdings.
and

The report said that there

May 15, 1957, up . 55.9%
$2,579,156 on Sept. 30, 1956,

the end of the fiscal year. In the

period the net asset value
per share increased 24.4%, rising
from $143.28 to $178.18, while the

same

increased 3.3%

age

few

were

changes in the fund's invest¬
during the first quarter of

ments

the

current

year.

Dome Exploration

ited

were

subordinated
stock

Holdings of
(Western) Lim¬

increased

attached

with

Trans-Canada

Pipe Lines Limited,

Continued

aver¬

and

> debentures
a

new

com-

page.

from 45.35 to

46.83.

During the period demand
Energy Fund shares pushei

for

the total of shares outstanding t
record

22,572 against 18,001 a
beginning of the period, a rise

the

of 25.4%.'

Energy Fund,

open-end in
company
with " share,

vestment

selling at net asset.value (with
out sales charges of any kind)
i[

,;tT4. ""W.?*-.' '■'> & ."*<2W5

We will be

managed and distributed by Ralp
E. Samuel & Co. of New Yorl
and

you

specializes in investments i"

industries
activities

and
are

companies

Energy Fund shares

balanced fund has
than

firsl

were

made

available to the public or
19, 1955 at which time total

Oct.

assets

with asset
$119.98 and
$7,920. In
months ended May 15, 1957.,
share

per

preferred and

outstanding

objectives of reasonable

total net assets climbed 323% an<
•the
per
share
price
increased

capital

return,

Poor's

while

gains

500

stock

11.3%

from

amounted

Standard

average

appreciation possibilities

185%

investment basis.

For

movec

The

42.07.

preservation of

capital, and long-term

distribution in the period off $4.7

share),

common

stocks selected with the

52.4%(including

diversified

500

holdings of investment
quality bonds, and both

$950,216

were

describing Inves¬
Mutual, Inc. This

tors

the fieh

glad to's&id

free prospectus-

booklet

whose

of energy and its sources.

your

prospectus-

booklet, just write:

in¬

outstanding
in the period.

With Cosgrove, Whitehead1
,

(SpeclaV-to Tue Financial Chronicle)

DIVERSIFIED SERVICES,

INC.

CLEVELAND, Ohio—Warren G.
Investors

90S

Steffen
with

has

become

Cosgrove,

Gammack,
Steffen

associatec

Whitehead

Hanna

was

Russell &

,•

shares.

form

$600 billion level of national output of goods and

to around $35 from

Haupt

Total net assets of Energy Fund
reached a record high of $4,021,-

^up

ployment, income, spending, sayings, etc."

31 compared with that of
Dec. 31, 1956 and March
31, 1956.
Net assets on March
31, 1957
totaled $27,950,827,

Reach New Record

over

collapse in stock prices."

the next

*vw"v*

March

crease

the

■r'j

per

discussing the prosperous long-term outlook, Mr. Schreder
sees

Energy Fund Assets

crease

said he

certain

material is beginning—and I emphasize beginning—to show direc¬
tional improvement for stocks,"

being

number 3 of

pending bills.

the 19

important

sold

operation

value

"It

the

already been planned and will

aviation, oil, chemicals, drugs, electrical equipment

before

farm equipment, rails and railroad equipment; and in such growth

.=*

.V- 200 Berkeley Street

w-P"

The fund's holdings on March
therefrom being payable to share¬
holders
sans
Federal
taxation. 31, 1957 were distributed as fol¬
equities
and' equivalents,
Several funds of this nature have lows:

and buy, if one

and electronics."

The Parker Corporation

Hence,

industries

fund is available from
your

number of stocks,

looks around carefully in such suitable industries
A

this point,

high grade bonds," said Mr. Schreder, "I think that there
lot of low

illustrate

leading issues selling at levels which offer yields

many

permit the creation
of
mutual
funds of the general type to
spe¬
cialize
in, investments
in ;state
and municipal bonds, with income

individual

lot of attractively-priced

price and income basis.

now on a

thousand

one

representing 14 major industries, which
attractive

ti,k
*

that there

in -today's

sliotved Ms audience

there
uttdu,

seems

stocks- available

I J**""

J' mutual land

stocks

CURRENT

derived

type

be : subject
to Federal taxation.
The ruling is applicable to a fund
based on the fixed trust principle

where any

you

particular stock average will go, but by continuously following the
market values and action

INVESTING1

specific

Standard & Poor 500 stock

"breaking up" of the old-fashioned business cycle, and afforded

the

fund
proposed to be created would not

770

Cleveland, May 20 to May 23.

for

from

the

of Financial

INVESTING1

May 20 that the income

into

J.'

Broadway, New York 5, N. Y.

ruling received by the firm
Treasury Department on

now

considerably
industry, and

S. economic history.
He characterized the present period of
"rolling adjustment" as a "healthy function of a dynamic growing
economy" and stated that, in his opinion, any further decline in
business activity and market prices
during 1957 would be slight.

NATIONAL SECURITIES &

120

via

from the

FREE INFORMATION

<*».r

in¬
Early establishment of the first vestment company, for the first
municipal bond fund by Ira Haupt quarter of 1957 shows an increase
in
& Co., New York
per
share asset value as of
City, was assured

series of charts to illustrate his talk, Mr. Schreder
drew a parallel between the recent "sidewise
plateau movement"
of securities prices and the record of the 1951-53
period. The
speaker pointed out that such intervals are not uncommon in

WRITE FOR

•%

report
Fund of

fund will be limited to
5,000 units
at
$1,000 per unit.

excellent
opportunities for investment
presently exist in bonds, and particularly in
common stocks for long-term growth.

Divide/id Serial/

Interim

that

Haftonal

■

and occasional eliminations

address delivered to Security Dealers of
Cleveland at the Mid Day Club. He told his
securities

* ..<«**

Haupt aiul Co.
ft
Capital
Light
Fund Reports
Municipal Fund Capital
Canada, Ltd.,

made.

audience

fp>

being added

an¬

the sturdy

1955-57 bridge to
great economic prosperity," said Mr. Schreder

FUND

•% »->

which means, in this instance, that
the portfolio will be
largely static,
with no new securities

market

A MUTUAL

N.Y.

By ROBERT R. RICH

previously with

Robert G. Lewis & Co.

♦-

*r.

Gets Green

joined the staff of Hornblower &
Mr.

Two With Hornblower

Building.

Building

Minneapolis 2, Minn.

&
908

formerly with J. N

Co., Inc.

American
EATON & HOWARD
—A XT; S.

incorporated mutual fund

viding diversified, managed investment in
mail this ad te

Canada. For free prcepectus

BULLOCK

anced

Managed by
Company
between

selected

Established 1894

STOCK FUND

A Balanced Investment Fund
Th«

CALVIN

EATON & HOWARD

BALANCED FUND

Business Shares

pro¬

•.

ONE WALL STREET, NEW YORK 5

selected

for

supervises
bonds

portfolio balpreferred stocks

stability, and common
growth possibilities.

Prospectus

;

and

upon

request

EATON

stocks

24 Federal Strong
.

BOSTON

Ad dress

;

New York

Lord, Abbott & Co.
—

Chicago

—

Atlanta

—

•

Prospectuses from
Los Angeles

Ru88 Building

BOSTON
•

established
_

HOWARD

Name

INCORPORATED

your

SAN FRANCISCO

itu
-

Investment Dealer

the above.

The Commercial and Financial

Chronicle

Thursday, May 23, 1957

...

(2438)
has

this

saving involved in the replacement of the
road's 7% first preferred on the basis of $100 of 5V2% income de¬

Railroad Securities
Western
The two-stage

McKEEVER

Maryland Railway
of Western Maryland common
this year's stock market. The

rise in the price
phenomena of

has been one of the

Western
date

gain of 28% points from this year's low of 49 for
Maryland common as well as the net gain of some 26 points to
finds few rivals anywhere in the market and, of course, nowhere
total

among

may

preferred shares, made the exchange last
January and the exchange offer has been reopened until May 31
for the 8,332 shares which had not been exchanged when the origi¬
nal offer expired on March 29. While this revamp does not reduce
the total outlay for interest and dividend as against the require¬
ment for the 7% preferred, it does provide the Federal tax saving
referred to previously and, also of great importance, it disposes of
the greater part if not all of a noncallable issue.
The new 5^2%
income debentures and the new 5% ($30 par) first preferred are
both callable—the debentures at 106 initially and the preferred'

uable to be used as a fuel for en¬

laggard rails as far as actual gain in price is
Proportionally, on the other hand, the total gain of
60% for Western Maryland common to date has been ap¬

the generally

of the 177,420 7%

Chicago & North Western common

proached only in the cases of
International Railways of

Central America common with total
gains of 51% and 52%, respectively.
The upward move of Western Maryland has been in two fairly
distinct stages and has been followed to a lesser degree by the
road's 4% second preferred which is convertible share for share
into the common. After hovering around the 50 area for the first
two months of this year, Western Maryland common added some¬
thing over 10 points by mid-April, and then hung in the 61-63
range until early this month when the second and more spectacu¬

and

land

the

Gain
%

—Monthly—
1<)5<>

15157

March

-Cumulative—

least until

$0.67

45
77

1.98

1.25

1-23
a

0.83

3.21

2.08

For years

brief statement of April earnings

been paid on Western

from

entirely conceivable that the required consent might
payment on the common in view of

be obtained to make a modest

circumstances of the road in more ways than one, the
$2Vz million balance of the loan is due to mature at the end of the
current year. It is equally conceivable that this obligation might
be anticipated, but there is, nevertheless, no known basis for ex¬
pecting dividend action on Western Maryland common before the
close of the present year, or perhaps early in 1958. As a matter of
fact, a statement from the road's office that current resources
would not support dividend action at the present time caused a
2 V2-point break in the price of Western Maryland common on
May 9 when it closed at 691/2, but this reaction was short lived.
The gain in the earnings of Western Maryland this year is
quite remarkable in that it has been achieved in spite of a decline
in traffic which, although less than for the Class I total and much
less than for the Alleghany district, has, nevertheless, been sizable.
While loadings of the Western Maryland were down only 3.4% for
the 17 weeks to April 27 as against the corresponding decline of
5.7% for Class I, the drop had widened to 5.5% for the four weeks
ended April 27 and to 6.2% for the last week of this period. The
corresponding declines from similar 1956 periods for the Class I
totals were 8.6% and 11.5%, respectively.
Notwithstanding this decline in loadings, the Western Mary¬
land has been able to show a healthy gain in revenues which

the improved

amounted to

to the March,
as

acquired.

holdings

made

were

1956 figure and

10.5%

income

dividend
share

Fund, Inc., held a diversified list
of 47 Canadian common stocks. Its

Corporation Limited, General
Mining and Finance Corporation
Limited
and
Ventures Limited.

traffic

from

such

the

new

Cumberland

plant

mining
companies
represented
17.95% and paper and pulp com¬
securities, $5,742,192 panies represented 14.60%.
or 20.5% of net assets; metals and
mining, $4,695,896 or 16.8%; util¬
ities, $3,389,584 or 12.1%; food and
merchandising, $2,584,617 or 9.2%;
Make
paper,
$2,201,423 or 7.8%; pipe
lines, $1,650,325 or 5.9%; and life
Scudder, Stevens & Clark Fund,
insurance, $1,577,250 or 5.6%.
Inc. reports total net assets of
$73,076,756 on May 17, 1957, equal
to $36.61 per share on 1,996,194
and

gas

Scutlder Funds

ating revenues is reflected in the increase in the road's net income.
While it is true that a large part of the reduction in the total oper¬

ating cost ratio is attributable to

rather sharply lower relative

maintenance outlay, there has also been a notable reduction in the

BRICCS & STRATTON

CORPORATION

fbRICGS&STRATTON)

Canada Fund

outstanding

Shares Rise

Canadian
mutual fund

Inc.,

the

first

United States

the

created "for investment in Canada,

old this month. Shares
first
offered
publicly
on
April 30, 1952, and the fund be¬
came available on
an "open end"

872

of May

asset

outstanding

public offering to
April 30, 1957, shares outstanding
increased

from

900,000

$10,611,000 to
The fund, which is

648,000.

Studied by

$44,-

from

$24.67

The

of thirty-five cents
capital

par

15,
1957.

value) of the Corporation,' payable June
1957, to stockholders of record May 31,

L. <3h REGNER, Secretary-Treasurer.

Milwaukee.

May

Wis.

1957

21.

;

655,403

ago.

year

new

Group
of "Petroleum

edition

man¬

Bullock, Ltd.,
group of U. S. and

Calvin

On
set

per

value

share basis, the net as¬

the oil industry.

ments in

shareholders.

Canadian

Fund,

Inc.

publication "discusses : the
enormous
growth of the petro¬
chemical industry, which has de¬
The

April
$20.19 on April 30, veloped at a rate 27% greater
1957, a rise of 81%?, adding back than the burgeoning chemical in¬
Oil and gas
$1.14 in net securities profits dis¬ dustry as a whole.
tributed over the period. In addi¬ now supply a quarter of the raw
material used by chemical manution, the fund has paid dividends

has increased from $11.79 on

30,

1952,

DIVERSIFIED

A CLOSED-END

INVESTMENT COMPANY

LISTED ON THE NEW YORK
STOCK EXCHANGE

The Board of Managers
DIVIDEND NOTICE

has

declared dividends of

15<

per

share from net

ordinary income
35*

CALIFORNIA-PACIFIC

5.40% Convertible Preferred

51/2% Convertible Preferred .v.

May 20,1957

common

June

stock pay¬

1957,

27,

3, 1957.

•

WILLIAM B. VIALL, Sec'y

The increase in the per diem car rental rate from $2.40 to
$2.75 effective with the beginning of this year is also adding to the
income of the Western Maryland which, like coal roads generally,

long-term

stockholders of record June

following rates per

5% Convertible Preferred"

lation.

the

able

Common-

share from net

capital gains

Quarterly dividends payable June 15 to
shareholders of record June 1, 1957, have
been declared at the

per

realized

UTILITIES COMPANY

;

........

25*
25<f v.
27*
27Vfe*
40*

FIRST

D.J. Ley,
.

VICE-^RES. A TREAS.

QUARTER

REPORT

AVAILABLE ON REQUEST
-

48
I

I
I

(35c)

the

Investor," issued by Distributors
Group, 63 Wall Street, New York
managers of a
Canadian
investment
companies 5, on behalf of Petroleum Shares
of Group
Securities, Inc. covers
whose total assets exceed $400,the latest technological develop¬
000,000, now has more than 17,000
aged'

5% Preferred

declared

has

Directors

dividend

share 'on

Petroleum Outlook

2,100,000, and total net assets have
grown

value

quarterly
per

Board

$24.13 per share on 524,708 shares

From the first

have

with $12,658,Per share net

The

outstanding shares, compared with

1952.

15,

ago.

year

were

DIVIDEND

date.

compares

1957, compared

17,

is five years

basis

that

with total net as¬
sets
of
$57,305,539 a year ago,
equal to $37.46 per share on 1,529,700 shares then outstanding.
Scudder, Stevens & Clark Com¬
mon Stock Fund, Inc. reports total
net assets of $16,166,511 on May

This

year

was 30.2% for the first quarter of this
against 32.5% for the corresponding 1956 period. This
reflects a real gain in operating efficiency that has been made pos¬
sible by improvements to the Port Covington terminal and other
yard and terminal facilities and to further progress in CTC instal¬

,BACHELOR,

Secretary

Reports

Transportation Ratio which
as

May 15. 1957

the

Plate Glass Co. and additions to existing industrial
the road's line.
addition to the gain in revenues, an improvement in oper¬

JR. W.

and in

1957 to stockholders

14.

Major group investments were:

oil

Pittsburgh

plants

pay-

ated.

Part of

stock

common

record June 4. 1957.

fifty cents ($.50) per

the

largest holdings were in the shares

gain for the first quarter,

partly responsible, notably in grain

sources

of.

able June

of oil and gas companies, which
Holdings of Distillers Corporation-' represented 18.90% of total assets,
Seagrams Limited were elimin¬ while the shares of metals and

obviously reflects freight rate increases—it was stated in the
road's 1956 report that about 40% of the 10.6% revenue gain of
last year was from this source—but some up-grading in traffic is
to

1957, declared a
regular quarterly

As of April-30, 1957, Canadian

Ameri-

Export Lines, Inc. at a meeting

this

believed

held 'May 15,

$1.80 per share.

Philippine Long Dis¬
Telephone Company, Asbes¬
of

13.9% increase for the month of March as compared

compared to revenues for the first quarter of last year.

also

The Board of Directors of

investment

from, net

Reduc¬

Fund,

interest of two-thirds or more.

^ \

AMERICAN EXPORT LINES, INC.
can

were

By 81 Percent w; *

million as of the 1956 year-end. The terms of
the payment of any dividend on the com¬
stock as long as any part of the loan remains unpaid except
the consent of participants in the loan having an aggregate

While it is

.:4

DIVIDEND NOTICES

;<:/

Stock

of 1955, and which

reduced to $2.5

with

Distributors,

from

page

the 7% first
the help of the $4.5

this loan agreement bar
mon

available

are

Group, 63 Wall St., New York 5.

must be viewed as a specu¬
the premise that there will

78th

Maryland common.

there was the accumulation of arrears on

preferred which were finally cleared up with
million bank loan arranged in the latter part
was

posits in. Utah, Colorado, Wyom¬
ing and other western states. *
Copies of "Petroleum Investor-,",

recently.

tos

easing of the trend, this

ever

solid form in the great shale de¬

Mutual Funds

tance

the acceptance on

35% of this amount.
No dividend has

locked in

are

Common

indicates some
performance has been the background for
the part of many of the projection of around a
50% increase in 1957 net per common share over the 1956 figure of
$10.22. Similar "sharp pencil" figuring might also suggest that even
with as little as a 40% "pay-out," the common dividend might be
initiated at $6 per share, but possibly without too much considera¬
tion for the fact that almost $4 per share of such projected net is
represented by the temporary factor of tax deferment arising from
accelerated amortization, and which it has come to be the fashion
to call an overstatement of earnings. If one, nevertheless, assumes
the possibility of a $6 per share dividend rate for the common and
appraises this stock on a 6*4% yield basis, Western Maryland com¬
mon could sell at 90 or more. Hence the enthusiasm, and the price
response is accentuated by the relatively small floating supply of
this stock.
There are only 660,908 shares of Western Maryland
common altogether and the Baltimore & Ohio owns approximately
Although

known

present

—

Dividend

tions

$0.97

$0.67
0.57

—

the

reserves

by the road, and also that dividends will be initiated at a higher
rate than the $4 per share that has been generally looked for, at

mitment,

Gain

15156

l<»57

$0.97
1.01

February

world

sparked by successive jumps

present year are as follows:

January

times

—five

let-down in the cyclical industries served

further material

extraction

The publication points out' that as
much as one trillion barrels of oil

not one agrees with the optimistic projection of

For others, Western Maryland common
lation at the present advanced price on

ings which have seemed to
per

developments

commercial

the

petroleum from shale is also dis¬
cussed
in
"Petroleum Investor."

early dividend possibilities there is no question
the basic improvement in the situation of the Western Marywhich is the source of attraction to the long-term investor.

in earn¬
indicate that the 45% increase in net
common share reported in January was not a mere "flash in
pan." Earnings per common share reported thus far in the

These two moves were

1957 earnings and

Continued

lar rise set in.

Whether

and heating.
quickening of

ergy

at 35.

concerned.
almost

eventually make it too val¬

7% share.
94%

By GERALD D.

It is also suggested that
the chemical uses for - petroleum
by 1965.

plus one share of $30 par value of first preferred for each
The Baltimore & Ohio, owner of 167,127 shares, or some

bentures

increase

will

figure

that
to 50%

it is predicted

and

facturers

Another gain

substantial credit figure in its car hire account.

in net is seen in the tax

Walt

Street

New York 5, N.

Number 5640

185

Volume

The Commercial and Financial Chronicle

and.

Engelman to Haad

'
N. Y. Bant Auditors

President

Man¬
Vice-

Blanchett,

Trust
was

Company

named

Assistant

Charles

Vice-President

special

Chase

the

was

and

the

New

Harper,

and Duncan.

Mount,
Bergen

The

No.

hold

spring party "at the

NOTICES

International Salt

The Board of Directors of

declared

Dividend

14.

HAMILTON,

COMPANY

Common
on

cents

the Common Stock

DOLLAR

ONE

at the close of

the

business June 3,

D.W.JACK"

the close of business
Checks will be mailed.

Secretary.

1957

'■

business

May 31, 1957.

Secretary

^May 17, 1957

June 14, 1957. The

pany

will not be closed.
hervey

Vice-President & Secretary

stock transfer books of the Com¬

John Corcoran,

holders of record at the close of

of the Company, payable
1957, to shareholders of record

May 20,1957.

J. osborn

Exec. Vice Pres. &;

Secfy.

UNITED FRUIT

Golf

.if z:.

COMPANY

DIVIDEND NOTICES

DREWRYS

E. I. DU PONT DE NEMOURS & COMPANY

4v 4

of 1957 has been declared

The

Board

of Directors

20,

May

has

1957

of business

declared this

able

25,

July

record

July

Preferred

87'A < a
Stock—$3.50

ferred

the

and

10,

Series,

1957,

the

1957;

the Common Stock

both

business
share

Board

Consecutive

Directors

Quarterly Dividend

International Business Ma¬

declared

JEANNERET,

Common Stock

quarterly cash divi¬

holders of record June
7, 1957.

10, 1957, to stock¬

The

Board

holders of record at the Close

Slock

able June

of business

quarterly

business

P. S.

May

May 21, 1957.

forty

27,

1957.

INTERNATIONAL

Directors

dividend

($.40)

cents

Treasurer

Both

International

per

Convertible

dividends

1957

are

the

June

record

30,

June 7,

stock

payable July 15, 1957,
of record at the

stockholders

of business

GERARD

June 14, 1957.

Dividend Notice

declared

INTERNATIONAL

IBM

BUSINESS

KENNECOTT

CORPOIATION

COPPER

Corporation

holders

the

meeting

of the

Board

JOMWS-MAimitJ

regular quarterly dividend of 25^

per

this

the

Company,

stock

common

June

payable

record

UODiJ

per

meeting
declared

the

one

CTI

Common Stock pay¬

June

1957,

ROGER

May 20,1957

the

10,

1957.

Byrd

May 22, 1957

Secretary

cash

dis¬

per

was

June

24,

payable

May 31,

1957.

1957,
PAUL B. JESSUP,

quarterly dividend of

Secretary

11, 1957, to stockholders

of record

Southern

May 27, 1957.

Paul E. Shroads

President

Big Spring, Texas

May 27, 1957.

June

holders of record

R. L. Tollett,

16,

June

share on the capital
which will be payable

stock,

May 31,1957.

May

declared,

today,

$1.50

the close of business
a

record

dollar per

able

the

business

on
a

1957, to stockholders of record

The Board of Directora at

quar¬

terly dividend of 50c

15,

1957, to stockholders of

declared

tors

Consecutive

Copper Cor¬

held

tribution

Dividend

Directors of Kennecott

110th

per share on
Corpora¬
1, 1957, to stock¬

Stock .of- the

Street, New York, N. Y.

poration

The Board of Direc¬

(37y3<t)

cents

Common

business

May 17, 1957

NOTICE

the

tion, payable July

CORPORATION

DIVIDEND

dividend of thirty-seven and

one-half
MACHINES

Johns-Manville

DIVIDEND

LOUISIANA

The Board of Directors has this date

COSDEN

The Board of Directors has declared

BHREVE PORT,

Secretary

May 20, 1957

April 30, 1957

161 East 42d

petroleum

GAS

HEIIBRON

,'PX.

New York 22, N. Y.

J. EGER, Secretary

corporation

UNITED

CORPORATION
SEYMOUR

quarterly dividend No. 169 of fifty
(50^) per share on the com¬
to

-4

cents
mon

Preferred

payable

stockholders

590 Madison Avenue

Directors

EMERY N. LEONARD

Secretary and Treasurer
Boston, Mass., May 20, 1957

1957.

COMPANY
The

Common

the

Stock.

HARVESTER

Harvester Company have declared

declared

has

regular quarterly dividend

$1.60 Cumulative

C. V. BOULTON,

Pont, 3rd, Secretary.

Stock and the

interim

dividend for 1957, payable June
14, 1957, to stockholders of record at the

this Company has been
declared
July 15, 1957, to share¬

payable

Preferred Stock

Secretary and Treasurer

A dividend of
seventy-five cents
per share on the
capital stock of

NOTICE

DIVIDEND

chines Corporation has today

dend of $.60 per share, pay¬

the second

$1.50

The

1957

Limited U. S. A., Inc.

T. E.

pay¬

stockholders

com¬

10,

South Bend, Indiana

Pre¬

also

the

June

May 24, 1957.

Drewrys

Stock—$4.50

payable

stockholders of record at the close

day regular quarterly dividends of $1.12'A
Series

stock,

mon

Del.,

232nd

DIVIDEND

quarterly dividend of forty (40)
cents per share for the second quarter
***■

IBM's 169th

.QUARTERLY

Wilmington,

■

CONSECUTIVE

Senior Vice President

Edison

■

California

Company

Public Service Electric

HACKNEY, Treasurer

and Gas

DIVIDENDS

Company

newark,

The

n. j.

of Directors has

Board

authorized the payment

of the

following quarterly dividends:

C VAiVAJVT ID

ORIGINAL

PREFERRED STOCK

Dividend No. 192

QUARTERLY

"FLORIDA RESORTS

American Cyanamid Company

clared the

The

Board

clared

(87^2#)

Directors of

quarterly
share

per

Cumulative
holders of

Preferred

such

American

the close

Company today

the

Common

Stock

the

Common Stock of the Company,

Company,

at the close of business
on

additional
stated

June 3, 1957, such dividend to be paid
on June 3rd, and not on the

distributed

stock

dividend

IS SURGING TO

below;

NEW HEIGHTS,

and

authorized
one
mon

ness

distribution, in the

share of Common

Stock

June 3,

the

Stock

nature of a stock

1957, payable July

at the

4.30% Cumulative Preferred

$1.40 Dividend Preference

•

TOO"

$1.02
1.045
1.075
.35

....

Common

All
or

.45

dividends
before

stockholders

payable

29,

STOCK,

27 cents per share.

The above dividends

1957

record

May

Secretary

12,

PVBLIC SERVICE
OF

THE

pay¬

holders

Checks

will

record
be

June

mailed

from

Company's office in Los-

F. Milton Ludlow

CROSSROADS

are

able June 30, 1957, to stock¬

Angeles, June 29.
P. C.

31, 1957.

close of busi¬

S. Kyle, Secretary.

PREFERRED

4.32% SERIES

the
are

June

1957, to the holders of
the close of business June 3, 1957.
R.

York, May 21, 1957

dividend, of

each of the shares of the Com¬

Company outstanding

such stock of record at

New

May 31, 1957.

"INDUSTRIAL (XPANSI0N

of record at the close of business

the shares outstanding

4.18% Cumulative Preferred

payable June 25, to stockholders

payable June 28, 1957, to the holders of such stock of record
only

the

per

quarterly dividend of seventy-five cents (75f)

the

CUMULATIVE

Per Share

4.08% Cumulative Preferred

quarterly dividend of 32c per

share has been declared

Dividend

Stock

Miami, Florida

Dividends

share;

Dividend No. 41

Class of

COMPANY

following dividends

quarter ending June

30, 19S7:

POWER ft LIGHT

1957, to the
business June 3, 1957,

The Board of Directors of American
Cyanamid
declared

FLORIDA

Cyanamid Company today de¬

Stock, Series D, payable July

Common

for the

of Eighty-Seven and One-Half Cents
the outstanding shares of the Company's 3l/z%

stock of record

NOTICE

Dividend

dividend
on

60 cents per

The Board of Directors has de¬

DIVIDEND

Preferred

DIVIDENDS

EXPECT THEIR

FIMIST SUMMER!

1957.

payable July 1, 1957, to stock¬

Stock

June'12,

today

Company, payable July
1,1957 to stockholders of record

172 :

share has been declared

annual

Seattle

Directors

capital stock of this Company,

a
meeting held today, declared a quar¬
terly dividend of 30 cents per share on the

904

has

dividend of 36

COMPANY

NO.

value

May

NOTICE

of the

DIVIDEND NO.

COAL

Board

declared
per

company

Seattle

its

DIVIDEND

PITTSBURGH

MINING

Board of Directors

904

Wash.—The

DIVIDEND NOTICES

Bale

forty cents ($.40) per share of $12.30
Capital Stock, payable June 12, 1957
stockholders of record June 3, 1957.
Checks w'U be mailed by Irving Trust Com¬
pany.
Dividend Disbursing Agent.
«i .'
,

Spring Party

will

Patten,

•

HOMESTAKE

COMPANY

The

DIVIDEND

tCv

JOHN

Club

UTILITIES

are

Rogers, President;
Rogers,
Secretary-

DIVIDEND NOTICES

SEATTLE,

M..

Officers

has joined the staff of Mer¬

Lynch,
Pierce,
Fenner
&
Beane, Board of Trade Building.

CONSOLIDATION

Jersey

Seattle Bond Club to

Bond

CHICAGO,. 111.—Roger J. Cole¬
man

rill

A dividend

Secretary-Treasurer. 4}

Hold

business.

Theodore

NOTICES

(Special to The Financial Chronicle)

race

DIVIDEND

curities
and

DIVIDEND

Treasurer.

;

elected

Leist,.

Gottstein, Campbell,

are:

with entries by

;

Bank

Bulls

is also scheduled,
Sutherland, Meyer,
Foster, Jordan, Phillips, Mott,
Prosser, Dingle, Easter, Harmon,

New

leading banks.

Joins Merrill Lynch '

(Special to The Financial Chronicle)

; v..

PASADENA,: Calif. —National

Schelke.

York's

executives

National Sees. Formed

Securities Corporation has been
formed with offices at 232 North
Lake Avenue to engage in a se¬

"Bears."

Sanders, Schlichting, Hinton and

opera¬

Comptroller

the

Daniel. Bramhall, MacLeod, Boyd,

Comptrollers. The group includes

hattan

between

contest

and

Bears

City Conference of the National
Association of Bank Auditors and

tional

May 24. CCday will be

the

are:

"Bulls"

auditors, comptrollers and

(2439)

Easter, Van Duesen, Markey, Morford, Moore, Harris, Jones, Nathane, Lindsey and Cameron.

named President of the New York

feature

putting

Morris A. Engelman, Auditor of
Bankers Trust Company, has been

Charles

Racing Club

FAST

May 17.1937

HALE,

Treasurer

May 23, 1957

The Commercial and Financial Chronicle.. .Thursday,

1
;

(2440)

BUSINESS BUZZ

Business
on

•

Man's
BeVtml-the-Scene Interpretation*
from the Nation's

Capital

sixty's

strategy,

Also, it is now

convinced practical
politicians that Eisenhower is
rapidly cutting himself off from
public
opinion
and effective
political leadership.

flim

ward

It says that

happened is that
Master Benson, who is smarter
than he sounds, places a far
more
serious
evaluation upon
the undirected national will for

than

7?4

esti¬
mates show that the Eisenhow¬
er
Administration will collect
Actual

What
Mr. Benson said, in effect, was
that
boys, none of this non¬
sense is working, so let's try to
-

This

1958.

ment in

combination

plus

urge

than

51/-

1 |

President Eisenhower, in jus¬

tifying his large budget, insists
that one cannot do in the com¬
of an appropriation re¬
quired in the year 1900, what

pass

economy

is required by

the modern times

Congress

control

governmental purse was incor¬

Likewise,
that

able

priations

pay

later

done.

committee.
SBA Achievements
was

Senate
for this

the

soil conservation and price sup¬

for 1957,
proposes to borrow a gimmick
prevalent some three centuries
ago.
before Parliament began

ports.

class

third

current

Federal

other two being

the

j ! subsidy,

ery

has precipitated

long, grand, and unholy

try

figure

row

the matter

of the

new

farm

for 1958 election
chandising.

mer¬

out

program

What

such

possibly could guess.

getting

To those

money

from

offered

many

for

nos¬

sale

purchased by Congress, it is dif¬
ficult
,,

as a new

views.]

imagine such

thing

Detroit, Mich.—Paper.
Factors

School,

Harvard University,

Cambridge, Mass.

RAPING MARKETS

before disbursing

necessary

Botany Mills
Campbell Co. Com.
Fashion Park

United States Envelope

Morgan

Engineering

National Co.

it was embar-

Carl Marks

Co. Inc

Riverside Cement

Flagg Utica

There is

ever

slight, but

20 BROAD

approval of loans until Congress
could provide additional funds,"

Outside Budget
a

TEL:

nevertheless positive behind the

tion

bill

Administra¬
provides that
"the

Accordingly

FOREIGN SECURITIES SPECIALISTS

to suspend the

STREET

HANOVER 2-0050

LERNER & CO.

NEW YORK 5, N. Y.'

•

TELETYPE NY

1-971

Investment Securities

10 Post Office Square,
Tax Cut Sentiment Is Fading

•

Basing Interna¬
tional Business Abroad — Wil¬
liam J. Gibbons—Harvard Law-

Tax

Indian Head Mills

Mr. Barnes related.

farm program.

(quantity

copy

A. S.

Congress

came

been

the

Wash¬

C.—Paper—$1 per
prices,; on re¬
"...
j ; ". V [

ington 5, D.
.

1012

Association, Inc.,

not coincide with

the "Chronicle's" own

tration, said Wendell B. Barnes,
its Administrator, to the House

have

seen

and may or may

disaster

Adminis-

trums of the last 30 years that

have

of each loan

pretation from the nation's Capital

also transferred to SBA.

rassing to its lending activities.
"On several occasions it be¬

who

Immunities of Labor Unions
Pound—American En¬

quest).,
.
.
of assets totaled 469,- Motor Truck Facts: 1957 Edition—•
in the total
amount of $4.5 billion.
Automobile Manufacturers As¬
sociation, New Center Building,
Mr.
Maxwell
also
asserted

Banking Committee, found that

now

Japan—$2.50.
Legal

number

000

governmental purse.

one

small
to

$50,000

from

the King) in
in control

program

new

might possibly be,

was

loans

flect the "behind the scene" inter¬

function,
loans,

remaining
making of

of being

The Small Business
"

RFC

the

iary

past year—in English—Oriental
Economist, Nihonbashi, Tokyo,

Fourteenth Street, N.W.,

[This column is intended to re¬

was

financial and

developments in the

establish its supremacy over

the Executive (i.e.,

Nevertheless, it is very likely

that Benson

government

to the

Corp.,
remaining

disbursing loans
to "small business."
A subsid¬

function

industrial

$50,000 apiece.

application cost the government
$784 per loan application.

Finance
main

chief

Japan's economic,

terprise

that the processing

become

created

Board

$250,000
,

—Roscoe

Additional

draft of the SBA bill before the

SBA

Y.—Cloth—$20.

6, N.

Economic Yearbook 1957—
Devoted to study and analysis of

aggregating $1.7 bil¬
concerns with assets of

businesses

incorporated
in the Administration-approved

— Arthur WiesenberCo., 61 Broadway, New

York

loans

less than

actually

the Republican successor

ger

lion

ap¬

spending after it is
Such a proposal was not

Reconstruction

that

and

ness

the

whose

will restore the money

along

come

Reserve

Federal
a survey

Altogether the nation's com¬
mercial
banks
had
on
their
books at that time 608,000 busi¬

will be requested to give
authority to
authorize
money
for adminis¬
trative costs and the Congress

17th an¬

companies

small business.

gress

Mr. Eisenhower in
order to modernize the machin-

—

of study of 231
mutual funds and 52 closed-end
edition

nual

of Oct. 5, 1955,
all commercial bank loans to

made

the Budget Bureau

can

Investment Companies

Japan

The.

government

to
distribute
the
money when the workload in¬
creases.
Accordingly, the Con¬

1,041 U. S. Cities)—Pan
Coffee Bureau, 120
York 5, N. Y,

Wall Street, New

was a

tion.

personnel

Report

American

witness for
American Bankers Associa¬

the

(from

of what

was

Bankers Associa¬

East 36th Street, New
16, N. Y. r
.
/

York

training * procedures

American

tion, 12
•

small-town banker, Arthur
President of the
National Bank of Bidde-

ford, Me.

said

Barnes

Mr.

improving
—

Maxwell,

First

equally uncomfort¬
being limited by appro¬

Branch"

of 1957.

may

agencies of the Execu¬
(of government),
Mr. Barnes explained.
the

tive

—

Inter-American Trade

owned commer¬
cial banks have done in lending
to small business was related to
the House Banking Committee
privately

to; Welcome

Employee

SBA assisted

By contrast, the story
the

porated in a bill which "has re¬
ceived unanimous support from
all

Achievements

Bank

the

over

a New Bank
Guide to assist in

—

How

9/100 of 1% of its clientele.

tion of the Republicans.
It

the United States,

relief from the ancient

four million small

appropriations made in advance
when
lending
government
money.

Key to Full Pros-

—

perity—Conference on Economic
Progress, 1001 Connecticut Ave¬
nue, N.W., Washington 6, D. C.
Paper — 50c (quantity prices
on request.
^
v
.j;

534,000. There being more than
businesses in

appropriations."

the "soil bank" as a mad inven¬

However,

(i.e.,

words, the agency
would not have to be bound by

however,

Back to 300 Years Ago

disposition to kill

less

years.

due to

was

plus

program

other

prove

disburse¬

the

collections

billion

$373

Promptly the House slapped
back and killed off tentatively;
"soil bank" money for

Truman Ad¬

of the

years

ministration were $342.2 billion.

Eisenhower.

figure something else out.

D. Roosevelt

aggregated $224.1 billion.
Collections I of
taxes during

chief,

his

does

na¬

Administra¬

the

Franklin

Government

beginning of the

the

through

tion
tions

has

all taxes collect¬

by the Federal

from

President

came

compilation

this

periods:

Subsidy Jeopardized

economy

Commerce

of the
comparative costs of taxes un¬
der Eisenhower and in previous

nomics.,

;

States

United

Treasury

April 22, 1957, SBA approved a
grand total of 5,896 business
loans in the aggregate of $278,-

lending)
funds necessary for
its revolving fund in lieu of re¬

Such

V \

Chamber

the

with

come

What

Bigger Than All

Rest

The
of

again. Master Ben¬
had apparently meantime
his second lesson in eco¬

Sees

fiscal year

the

through

1953

September

authorized

set up

From the time it was

Administration
borrow from

Business

Small

Consumption
-

questing direct

Eisenhower

If lower
supports
lessened prices and
this led to cut production, then
prices would rise and surpluses

had

about this again!"

going to speak to you two

the

them) wouldn't work.

son

amount of "new

basis.

economics, Ezra
discovered that
"flexible" price supports (not
that
he
had
seriously -tried

would

"I'm not

to¬

"cuts" in new
obligational authority voted by
the House—this compilation be¬

Benson

15 East 26th Street,
10, N. Y.—Cloth—

$6.75.

will

by $1.5 billion the

school lesson in

"y"'"./.

ing strictly on a 1958

Co.,
York

New

obligational authority" (permis¬
sion to spend or lend in vari¬
ous
ways plus appropriations)
voted by the House exceeded

political pot. Like a youth who
had taken only his first high

Douglas H. Bellemore —
edition — The
Ronald

Press

is beginning to
inroads into
flamming.
Up
to
two

weeks ago the

Collec¬
H. Irons

and

economy

and

Credit

second

make some serious

pitch of the 1960 political cam¬
paign was the plunging of the
whole farm question into the

national

the

Thus,

mounting

the

111.—Cloth.

tion Practice—Watrous

out¬

that he could see
real hope of stopping it in
Senate
if it
passes
the

House.

has

Chicago, Chicago,
Commercial

few days ago
no

sign

(for

report

Dec. * 31, 1956) —>
Board of Trdde *of the City of
ended

year

of the postal rate
boost told this correspondent a

the

One

Senate,

the

But

Eisenhower's insistence upon
bis big budget despite the evident
national will for economy, plus;
his continued ignoring of even
"modern Republicans" in Con¬
gress,

the City of Chi¬

99th annual

cago—

standing foe

their egos).

;

5, N. Y.—Paper—$1.

New York

Board of Trade of

Now it

thing.

same

industry—Foresight Investment
Advisory Service, 70 Wall St.,

individual

in the House and pass.

The
malady destroys, if unchecked,
their
political
influence and
the

and

one

ment?—Analysis of mutual fund

bringing it up in the House.
is expected to come up

term

Invest¬

Funds a Good

Are Mutual

the Senate so there was no use

President
thinks his large electoral major- :
ity and his own omniscience are
second

the

York, N. Y.—Cloth.

New

privately indicated only a
couple of months ago that a
postal rate boost could not pass

Egotitus" is a "disease" of the
judgments of Presidents of the
United States elected to second
terms by huge electoral major¬
ities. It is a "disease" in which

Inc.,

cosson—Dodd, Mead & Co.,

considered that

outstanding

the Ana¬
F. Mar-

conda Company—Isaac

acted into law.

(See p. 44 of the "Chronicle"
14, 1957. "Second Term

of Feb.

1107

America,

ington, D. C.—Paper.

and of thus being en¬

this year

Figures.

Air Transport

Anaconda: The Story of

postal rate increases have a
considerably better than ever
chance of passing both Houses

cal dead duck.

—

Street, N. W., Wash¬

Sixteenth

—

edition

18th

Association

backing off

now

are

from it.

they can already see down the
long lane of events to where the
President will become a politi¬

—

this

the Democrats for

among

boys and girls who have been
around, that Dwight Eisenhow¬
er's case of Second Term Egotitus is so far
advanced that

Transport Facts and

Air

become ef¬
fective Jan. 1.
Some of those
who
were
original advocates
this year, to

House

political

obvious to the

sentiment
the

voting of tax cuts in

for the

national political
campaign is off to a premature
and vigorous start.
-

diminishing

scenes

WASHINGTON, D. C.—Nine¬
teen

;

Telephone
HUbbard 2-1990

•

Boston 9, Mass.
Teletype
BS 69

Full text of Commercial and Financial Chronicle : May 23, 1957, Vol. 185, No. 5640

FRASER