Full text of Commercial and Financial Chronicle : May 3, 1956, Vol. 183, No. 5530

View original document

The full text on this page is automatically extracted from the file linked above and may contain errors and inconsistencies.

t,fV r.r-\ .-n- x-j-i-or* 1

-fyV^ iv; &

Unix

u«S||

MICHIGAN

MAY 4

1956

ESTABLISHED 1S39

•KIKB UMIMtrUTIM
It'Mt

-t'l

Reg. U. 8. Pat. Office

Volume

Number 5530

183

New York 7, N. Y.,

Price 40 Cents

Thursday, May 3, 1956

Copy

EDITORIAL

As
Slowly

Broadening the Market

We See It

and

times

somewhat

apparently

saving and spending
a

certain

appears

reorientation.

continuation

Organization of

VA mortgages and sell its

altered trend of

thought could prove in the long
run to be of
very large importance. Early New
Deal philosophy was saturated with over-saving
and underspending theories. One result was that
managers of our national affairs at that time,
and their fellow

travelers, sat up nights thinking
of discouraging saving and stimulating
spending. Of course, it could hardly be expected
that politicians, near-politicians and reformers

up a way

should

think very carefully about the precise
meaning of terms they were using. In much that
they had to say, "saving" and "spending" ap¬
peared to be regarded as quite antithetical—
which is hardly in accord with the fact unless
*one considers the terms "saving" and "hoarding"
to be synonymous. In any event, what with the
redefinition of many common terms under the
influence of Keynes, confusion often appeared to
be the leading characteristic of the discussions
and arguments of the times.

happen to be employed by

low represent

only

ing

for

of
are

Pension
or

could

persuaded

stock

Chairman

the

Trusts

once

were

porate

men

NOW

so-called investment

dis¬

man

page

REGISTRATION

afforded

undertakings in

our

picture of issues

now

stock

levels

again

Roos

defective.
the

March-April

1956 issue of

the "Harvard Business Review" there
appears

comprehensive article

entitled:

Continued

"The
on

Stock

page

address by

Dr. Roos before the New York Society of Security
Analysts, Inc., New York City, April 20, 1956.
♦An

Underwriters, dealers and investors in

—

complete

were

Charles

Confer¬

that

asserted

once

hearings, stock prices have moved
irregularly but nonetheless surely
into new high ground and early in
April the Standard and Poor Index
was about 35% above its level during
the March 1955 hearings. Clearly the
criteria used in the Senate hearings

other

were

whic h might result in declines of
1929-1932
magnitude.
Since those

was

address

are

prices

neophyte in the mortgage

by Mr, Meyer badfore the Eastern Mortgage
New York City, April 30, 1956.

ence,

securities

and potential

investment

economist

nent

mortgage men.
Your
may
have felt that in

Continued

page

In the Spring of 1955, the Senate Committee on Bank¬
ing and Currency conducted an extensive investigation
of "Factors Affecting the Buying and
Selling of Equity Securities." In gen¬
eral, the conclusions were that stock
prices were too high; and one emi¬

invest¬

and

price correlation to dividends

debit balances of member
firms, income distribution change of top 1%, and cur¬
rency-deposit personal holdings; and small spread be¬
tween actual and calculated price derived from multiple
correlation of principal factors affecting stock prices.

bond men,

producing, for better or
worse, some kind of a sample of those who try to invest
other people's money. I for one do not believe that the
presence of so many bond men in this particular invest.

*An

SECURITIES

DEALERS

field and

John M. Meyer, Jr.

borrow

from

choosing

Continued

men

tinct

attention to the close stock

concerned with invest¬

advising

ments

Funds

the long-term trend

and earnings, net customer

with

who

one or two friendly and
competitors in the com¬
mercial banking field.
Perhaps the choice of a newcomer
to the mortgage field may not be too
impractical, for as you know, many

prudently refrained from spending a part of his
income and put these savings on deposit to draw
interest, invested them in bonds or sound equities
or
mortgages, seemed either forgotten or re¬
garded as essentially antisocial in the New Deal
.scheme of things. Designedly or not, steps taken,
the one after another in those days, rendered it
impossible for prudence to find more than a mere
pittance in interest as a reward for frugality.

and, like unexpected

(1) earnings and dividends;
(2) interest rates; (3) investors' purchasing power; (4)
security market credit; and (5) income distribution. Calls

commercial bank which

are

out

know what is happening to:

forthright

who

other

which, Dr. Roos shows, is determined by those who do

with my associates and their general

each

nicians, have little significance

personal views, though, of course,
some length

tenor

cancel

events, and the work of chartists and stock market tech¬

I have discussed them at

•of

man

Hunches

administers and advises upon the investments of various
Pension Trusts and other Funds. The remarks which fol¬

But, however all that may be, the fellow who

The

upset theories that stock market is either a discounter of
the future business trend or purely a game of chance.

Fiduciary Corporation to buy FHA and
obligations against them to
self-administered or trusteed corporate pension and
various philanthropic funds is proposed by J. P. Mor¬
gan's Senior Vice-President as the answer to marketbroadening attempts. Mr. Meyer points out that the vast
and growing pension fund market already totals more
than $25 billion and possesses relatively small amounts
in mortgages. Believes this revival of that intended in
the National Housing Act of 1934 deserves careful study
in view of the operations of the New York Institutional
Securities Corporation Debenture Service.

this

Internationally known mathematical economist's studies

Senior Vice-President, J. P. Morgan & Co., Inc.

to be undergoing

By DR. CHARLES F. ROOS*

Chairman, Econometric Institute, Inc.

By JOHN M. MEYER, JR.*

painfully, current thinking about such things

For FHA-VA Mortgager

cor¬

registered with the SEC

"Securities in Registration" Section, starting

on page

38.

State, Municipal
and

U. S. Government,
'

State and

Municipal

May Investment Letter

Securities

STATE

MUNICIPAL

AND

—®—
COPIES OF OUR

Money Rates and
telephone:

HAnover 2-3700

LATEST

The Stock Market

CHEMICAL

BONDS

"ATOMIC ENERGY
REVIEW"

bond

department

ST.,N.Y.

J. R. WlLLISTON & CO.
(.TABLISMCO

AND

OTHER

HEW

STOCK

YORK
ANO

1.6.

STOCK

EXCHANOE.

HARRIS, UPHAM & C°

OF NEW YORK

Members New York Stock Exchange

115 Broadway, New York 6, N.Y.
Miami

Beach

—

Rye, N. Y.

REQUEST

THE

THE FIRST NATIONAL CITY BANK

EXCHANOC

COMMODITY

DEPARTMENT

BOND

ARE NOW AVAILABLE

MEMBERS

30 BROAD

Bonds and Notes

Copies Available

CORN EXCHANGE

BANK

Public Housing Agency

Bond

Dept. Teletype: NY 1-708

120

Chase Man hahan
BANK

BROADWAY, NEW YORK 5

34 offices from coast to coast

Net Active Markets Maintained

To Dealers,

INVESTMENT

t.l. Watson &Co.
ESTABLISHED

1832

SECURITIES
Members

of the

American

<Souihu>€4t

Exchange

Stock Exchange

BROAD

STREET

NEW YORK 4, N. Y.

£wUhto€4t COMPANY

Executed

All

DIRECT WIRES TO

•

PERTH AMBOY

COMMON

Analysts

Canadian Exchanges At Regular Rates
CANADIAN

Control Co.

BONDS & STOCKS
our

upon

request to

Unlisted Trading

Dept.

DEPARTMENT

MONTREAL AND TORONTO

Goodbody & Co.
MEMBERS NEW YORK STOCK EXCHANGE

BRIDGEPORT

OAttAS

SECURITIES

Teletype NY 1-2270

FIRST

CANADIAN

CANADIAN
Commission Orders

New York Stock

U. S. Thermo

Banks and Brokers

115 BROADWAY

CHICAGO

40 Exchange Place,

New York 3, N.Y,

IRA HAUPT &CO.
Members New
and

other

Teletype NY 1-702-3

WHItehall 4-8161

York Stock Exchange

Principal Exchanges

111 Broadway,
WOrth 4-6000

1 NORTH LA SALLE ST.

NEW YORK

Doxunox Securities
Orporatioti

Boston

N. Y. 6

Teletype NY 1-2708

Telephone:

Enterprise

1820

The Commercial and Financial Chronicle...

(2130)

For Banks, Brokers,

The

Dealers only

Security I Like Best

A continuous forum in which, each

For the Utmost in

in the investment and

Service.

week,

different

Their Selections

reasons

for favoring

particular security.

Metallurgical Corp.*

Fansteel

(The articles contained in this forum

Let

our

network

nationwide

private wires to banks, brokers,
and dealers
try

help

The

throughout the

you

coun¬

find the best markets.
time you

look-

are

phone

TWX call to

Fansteel
I

Metallurgical Corporation
learned

first

during

brain
on

d i

Associate
;

American

120

BOSTON

PHILADELPHIA
Private

Wires

•

CHICAGO

not

were

very

Principal Cities

body
and

plates

Since 1917

l|fcpONNEH&fO.
H

Members
New York Stock Exchange

1
H

TEL. REctor 2-7815

ties

was

of the curiosi¬

stock/ market

the

whereas

investors

stayed

that,
rigor¬

from aircraft stocks
because they felt (quite wrongly)
that the aircraft industry would

ously

away

fold up

after the war, they were

fascinated

by tantalum because of
possibilities,
even

medical

its

certain that the
brain surgery being

was

quantity

decline

would

done

precipitously
stopped. But it

the fighting

also

the ^curiosities

one

Wall Street that these speculators

right too. Tantalum had un¬

were

American Furniture

Camp Manufacturing
Commonwealth Natural Gas
Life Insurance Co. of Va.

STRAOER, TAYLOR & CO., Inc.
Lynchburg, Va.
TWX

Stein, Manager of InDept., Dreyfus'
New York City, (rage 2)

Steiner, Rouse & Co!

Service

Members

producers of elec¬
in

used

contacts

not

automo¬

Kawecki

Carbide, while

small capitalization.

of Fansteel

colet-Ramet

boloy

will

they

million.

That

makes

1955

was

well

when

the

going

could be

'■a

largest

7 ';

neutron

cross-section, which
represents the tendency of a ma¬
terial
its

E. i. Korvette

Hydraulic Press Mfg.
(LS. Thermo Control

absorb

neutrons,
A

reactors.

use

For

current

information
■

•;

;

7*-7 7

Yamaichi

20%

Securities Co., Ltd.
:

Home
V

Established

Office

Brokers

1897

Tokyo-— 70 Branches
Investment

-■

Bankers

111 Broadway,N.Y.6 COrtlandt 1-5638

makes

worthwhile

break

out

into

may

some

sales

Through W. W. Alloys, Inc., Fansteel does a worthwhile business

good

in
r

expansion now
proves fruitful, earnings
$5 a share. This means
plant

OhRadio Industries to

day

bigger business.

Increase

which have copper ^as
the base. Welding electrodes, high
conductivity forgings, fabricated
parts for electrical use, are some
of the products of this subsidiary.
7- Fansteel has enjoyed pre-tax

Magnetic Tape?

Capacity 400% 7.7:

alloys

favors

that

tantalum

This manufacturer of

Brand"

"Irish

magnetic recording tape is increasing
its

productive facilities 400% to sup¬
the mushrooming demand from
the electronic computer, telemetering,
instrumentation, geophysical and other
ply

was

larger

good part, if not all, the financirg
be done by debt.
The $1

a way of
high per¬
formance but of very small size
because of the large surface area
which could be provided.
This

making

use

provided

capacitors

reflection

could

the

metal's

payments will prob¬
supplemented by-stocktowards the year's end. Fansteel
Metallurgical Corp. is listed on

cash dividend

ably

the
New York Stock Exchange;
words, the;
and currently quoted at 44 V2.
J
which made it ?
very thin threads
HOWARD STEIN
process and clean up for use the
and
plates
for
brain surgery,;
fissionable materials used in the
Manager, Investors Service Dept.
made it possible to make minia¬
reactors. Columbium is used in
ture capacitors of very high per-- Dreyfus & Company, New York City
stainless steel No. 347, a high heatMembers, New York Stock Exchange
formance. The, cost was high too,
resisting alloy where its purpose
but the rapid development of the
General Tire & Rubber Co.
is to stabilize the carbon in the
electronic industry, both for de¬
steel. The process by which it does
The active and imaginative man¬
fense and civilian use, provided
this is complex—I have been told
agement of General Tire and Rub¬
a
market where the characteris¬
not to try to understand it—but it
ber has developed the company
tics of tantalum capacitors were
is reasonable to believe that this
into one of the outstanding growth
which

chemical

the

may

Dover Corp.

appear to

/r;' Call or write

.•;

years

be stirring dne
improved Japanese economy.

Vas-

selenium
especially grow¬

contribution, and

unusual corrosion and heat resist¬

its

Carlisle Corp.

remaining at practically

ing demand. Processing of molyb¬
denum
into
sheet, tubing,
etc,
also

that Fansteel is

ing properties and, in the opinion
of some experts—though not all—

Trading Markets

stationary levels for three
now

system,

are

offices

S TO C K S

also

the auto industry

12-volt

to. the

branch

our

after

sales.
Solenium
rectifiers,!? stacks, and reiatec.
items are also important in Fan¬
steel's operations. Because of the

rectifiers

sized company.
be

than

better

;

I A P A N ESE

1955

swing over by

$30

Net per share in
$3 and this year should
over
$3 and next year

for

Fansteel's

over

and

third

the

coming after car-'
Ktmnemetal.
it ac¬

and

counted

$20 million annually, in 1955 they
were
virtually $28 million and
year

bits,

themselves.

bits

and

cars

in its industry,

not have
been

drilling

the

makes

Since 1951;

have

oil

and

in terms

enormous

NY 1-1557

7' > -77 77V

subsidiary which makes tungstencarbide for machine tool, mining

Exchange
Exchange

Mobile, Ala.
Direct wires

is the Vascolett
Ramet Corporation, a 100% owned

companies

Stock

HAnover 2-0700

of tungsten,

use

and

many

York

New Orleans, La.- Birmingham, Ala.

Integrated. with the contact di¬

itself, Fansteel
unique, but there

too

all Ford

approved by others.

well-estab¬

power,

of earning power, does

this

vision, because of their common '

the investor an un¬

earning

standard

now
*

combination

sales

American

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

Chemicals, for instance, while un¬
doubtedly an interesting situation,
does not have large scale,-wellestablished earning power, Union

New

Members

rosion

Bassett Furniture Industries

& Co.,

world's largest

Fansteel for
Security 1 Like Best" now is

are

Bought—Sold—Quoted

—

selling rather rea¬
properties of strength, cor¬
and pre-depreciation profit mar¬
resistance,
high
melting sonably as romance stocks go.
gins of over 18% in five of tne industrial and commercial fields. '
point and 10 years later these Undoubtedly, one reason for this last six
years,
Cash flow in 1955 (■■■ The recent
is that many investors think it is
perfection of equipment
qualities are the basis for a size¬
was about $3.3 million, this year
to use tape in taking motion pictures
just a steel company. Actually,
able and fast growing business.
should be about $3.6 million. This,
it processes
for TV and movies will put heavy de¬
no stetl
at all, its
Fansteel was then and still is
after paying1 the $1 dividend indi¬
name represents an Americaniza¬
mands on this leading manufacturer
much
the largest commercial
cated will be ample to finance the
tion of the German name of its
of the highest quality tape.
V r. *
processor of tantalum and also of
expansion program now author¬
founder—Phanstiehl.
Company estimates 100% increase
columbium. The reason why Fan¬
ized, but if expansion plan No. 2, in sales this
The
big
break for tantalum
year.
steel also processes columbium is
now
being ^contemplated, is put
came in 1949 when Fansteel's en¬
that it occurred along with tanta¬
into I operation,
some ' financing Annual Report available on request»
gineers experimented with it to
lum in the same ore. When tan¬
will probably be needed. However,
make high grade capacitors. Ca¬
talum
predominates, the ore is
S. D. Fuller & Co.
with only $1 million of long-term
pacitors store and discharge elec¬
called tantalite, when columbium
debt and a stockholder's equity 39
trical potential and are the elec¬
Broadway • New York 6, N. Y.
is the major fraction, it's called
of
$14.5 million, including $8.3
trical valves
and
regulators in
columbite.
Columbium also has
million of net working capital, a
countless circuit's.
It was found
usual

Trading Interest in

westors

I pick

reason

which have all of them.

one

Co,

would not be
Walter K. Gutman

par-excellence and shot to
far beyond its immediate

once

Win

own

Marignac *.

of these aspects by

the

(Page 2)

Rubber

Howard

■

good
balance sheet, combined with the
romance
of growth prospects of
new materials.
If you took each

skull.

though

American Stock Exchange
120 BROADWAY, NEW YORK 5

its

the '

Tire

Horizons, Inc.; and Na-; biles, aircraft, railway, electronic
tional Research are known, or be¬
equipment, etc.; .These accounted
lieved to be, researching ways of for
25% of 1955 sales.
Its new
producing tantalum and colum¬ "ventilated" tungsten contacts are

usual

repair

worth.

■<

Copper,

lished

Fansteel, the
only company

prices

grc

—

is. General
~

York City.

Co.; New

in produced form, as
Carbide,
Kennicott

that it gives

needed

Union

yet.

"The

and

for the

stocks

believes

trade

The

romance

RIGHTS & SCRIP

.working

Chemical,

„

far,

of the metals.

delicate

one

scale

.Analyst,

curity

„

companies is, of course,, a symptorn of the broadening usefulness

making tanta¬
lum, became

B, Specialists in

nor

bium. The sudden interest of these

cor¬

of the

SAN FRANCISCO

•

that

tantalum

into

Teletype NY 1-40

small

metal except

could be made

Broadway, New York 5

be,

Senior SeGoodbody
&

process.
Kawecki will' probably
■ not make tantalum or columbium /

vered

sco

threads
WOrth 4-2300

II.

injuries

acids

Exchange

intended

modification

had

roded by

Member

Stock

the

everyone's mind and the

was

1920

Established

Kawecki

Fansteel

about

War

World

time

that

Corporation

relatively

Senior Security Analyst
Goodbody & Co., New York City
Members New York Stock Exchange

doctors

New York Hanseatic

are not

offer to sell the securities discussed;)

*>■

much

Hanseatic.

as an

WALTER K. GUTMAN

ing for fast and accurate service,

place

they to be regarded,

Louisiana Securities

—

K.» Gutman,

Waiter
are

Alabama &

advisory field from all sections of the country

participate and give their

Try "HANSEAT1C"

Participants and

Forum

of experts

group

Week's

This

Thursday, May 3, 1956

have

will

plants

built

strength

—

other

properties
possible to make

H0«R WOfy

7
JEPfim

same

O
in

m
*

SreeneimdCompaTvu
ESTABLISHED

37 Wall St., N. Y.

1929

Tel. HAnover 2-4850

use

for

columbium

industrial
for

and

will

defense

worth

grow

demands

were

high performance

alloys

ex¬

pand.
from their
not

all

processes

West German

of which
nac

Securities

has

and

easy.

purification is
There are six

known in the literature

only

one,

the old Marig-

process, developed in
been used in practice.

Bureau
a

ore

promising

Mines

has

process

1866,
The
developed

which is well

suited for treating low-grade tan-

(9/i/benlmnwi & %
25 Broad St.

New York 4

Telephone

Teletype

DIgby 4-4460

NY 1-3222

talum-columbium
ess

ores.

The proc¬

inherently continuous

Fansteel

reported

planting this technique to
it out commercially.
A

new

and

pilot

prove

factor in the field whose

plant started

late in April

on a

cost.

capacitors

Sixteen

for

percent

1955

record

accounted

capacitors.

Separation of the two minerals

Firm Markets in

the

Fansteel's

situations

sales *

Big Board.
Through in¬

components of such

telligent di¬

A major part of Fan¬

versification

steel's

expansion program, per-\
haps the largest the company has,
ever
contemplated, will be de- ?■
voted
to
tantalum
capacitors.
Plans are to quadruple the out¬

into "trend"

industries

since
are

substantialy

columbium

and

its

are

tantalum

the fastest growing sectors of

business, the bread and
butter sectors, I which also have
the toasty taste of a good future
before them, should not be for¬
gotten.
Fansteel is one of the

rub¬

own

Quotation Services

tire

and

ber

rise

products of the same ore.

Fansteel's

lines, General
has
posted a
n o teworthy

increased

While tantalum and columbium

Over-the-Counter

and

expansion of

put of these capacitors. Capacity
to
make
columbium metal will
also

SAVING6

the

by tantalum

and
•

•

for 42 Years

sales

profits.

National Quotation Bnrean

Earnings in
(fiscal

Howard

1955

year

Stem

Incorporated

ended

Nov.

30)

from

$2.89

Established 1913

soared
the

share
before—both

to $6.29

year

46 Front Street
CHICAGO

Continued

page

NewYork4,N.Y.
SAN

FRANCISCO

Volume 183

Number 5530... The Commercial and Financial
Chronicle

(2131)

Sensible Instalment Credit
To Stabilize the

Economy

By DR. NEIL CAROTHERS
Dean

INDEX

Broadening the Market

ment

selling

probes
"

and

sane

sensible

—John

instalment credit restraints in the past five

debt's usefulness and salient shortcomings
be usually ignored and claims:
(1) many sensible

mountain of

Last fall

conference

one

research

best indus¬

our

organizations

held

There

Sound

These

not

were

stract

■five

ab¬

theo-

«r,ists.

Consumer

econ¬

omists.

Only

are

demic.

aca¬

f; The

others

highly

are

paid

economists

the

homes

largest

our

corporations
commercial

research

or¬

experts

notable

for

consumer

the

credit should

the

questions

was

did

In many hours of dis¬
there was no analysis of

the economics of consumer
no

agreement

to the

credit

consumer

can

buy

build

credit,

influence

prices,
degree

For

sity.

Cars

purchases
in

too

now

high

wholly unsupported state¬
unchallenged.
One

that

there

method

determining when

consumer

debt

families

are

sumer

year

debts in

recession.

concern

following. A

that the benefits of

con¬

boom period out¬

weigh the injury they
panelists

means

cause

In the discussion three

expressed
over

their

serious

the

present volume
But the Chairman said in

of debt.
a

summary that it was agreed that
the present debt "is not alarm¬

ing."
The failure of such

conference

experts to reach any conclu¬
sions illustrates the
complexity of

not.

cases

meet

Personal finance

emergencies

are

harshly competi¬
Charge accounts are

convenience.
Thus

all

of consumer

credit

function

undeniable.

How

Not

Institute of Investment Banking Classes
Names of Class Members)™

they

these

forms

have

useful

economy.
But
justified only when cash

are

large

are

not

possible.

restrained

down

payments

They

and

for

rapid

ization

such

the

many

credit

are

useful

even

credit

are

the cost of

•

availed of

scale,

net deduction

income, a dan¬
prosperity, when
extremely exten¬

at present, and

Continued

From Washington Ahead of the
News—Carlisle Bargeron

Schenectady

•

Glens Falls

Worcester

A. Wilfred

Our

May

Railroad

Registration

Security

Federal Uranium Corp.

Offerings.

43
26

and

You—By Wallace Streete_.

of Trade and

Washington

and

Pan American

Security I Like Best

The State

page

Chicago * Los Angeles

Revlon*

Salesman's Corner——

Securities

Securities.

Now

Prospective

Securities

securities

Reporter's Report

Utility

markets

Direct IF ires

Philadelphia

Our Reporter on Governments

Public

trading

over-the-counter

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

—

350

HA 2-0270

News About Banks and Bankers

Industry

You

Sulphur

Southland Racing Corp.*

Parker Petroleum Co.*
♦Column not available this week.

Twice

Weekly

Common & Preferred

1 Drapers'
Gardens, London, E.
land, c/o Edwards 8c Smith. 1

COMMERCIAL and

FINANCIAL

CHRONICLE

Park

DANA

Reentered

COMPANY, Publishers

Place, New York 7, N. Y.

REctor

2-9570

Eng¬

Mexican

*Prospectus

Subscription

9576

WILLIAM

SEIBERT, Editor 8c Publisher
DANA

SEIBERT, President

Thursday, May 3, 1956

Rates

Subscriptions in United States,' TJ.
Possessions, Territories and Members

records,
state

corporation

and

Other

Chicago

city

news,

Offices:

HI.

135

news,

bank

Union

Dominion

Canada,

Bank

Salle

St.,

(Telephone STate 2-0613):

and

Note—On
rate

$60 oq

a>o<.uu

request

W» V. FRANKEL A CO.

uer

$63.00
per

vear:

INCORPORATED

per

of
1n

Record

the

m»uo

WHitehall

New

York

3-3960

—

Monthly,

Direct

PHILADELPHIA

Wires to

DENVER

fluctuations In

BROADWAY, NEW YORK 6

Teletype NY 1-4040 & 4041

exchange, remittances for for¬
eign subscriptions and advertisements most
ow

year.

(Foreign postage extra.)

account

funds.

Publications

Quotation

$40.00 per year.

the

countries,
Other

clearings,

etc.).
South

Pnn-American
Uuier

Every Thursday (general news and ad¬
vertising issue) and every Monday (com¬
plete statistical issue — market quotation

Second-class matter Febru¬

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

ary

■

HERBERT D.

Gulf-Sulphur

Dana

Company

Reg. U. S. Patent Office

ST., NEW YORK 4, N. Y.

Chicago

maintain

Singer, Bean
Mackie, inc.

a pos-

TELETYPE N. Y. 1-5

Indications of Current Business Activity

Observations

Request

Communist Unions"

The

ger to economic

TELEPHONE HAnover 24300

Nashville

Bookshelf

Funds

Einzig: "British Technological Progress Opposed by

living,

Members New York Stock
Exchange

•

Westcoast Transmission

than

Mutual

Mining Corp.

Cover

Coming Events in the Investment Field.

The Market

Leaseholds, Inc.

(Editorial)

Businessman's

PREFERRED STOCKS

Boston

Gulf Coast

Pacific Uranium Mines Co.*

Bank and Insurance Stocks.

expensive additions to

Spencer Trask & Co.
•

(Pictures and

*Circular

Albany

Corpus Christi Refining Company
6

Co., Ltd. Units

As We See It

neces¬

sary in our economy. But the fact
is
that
all
forms
of
consumer

Philadelphia, Washing¬

pre¬

sented at the conference.
It is a
statement supported by economic
fact.
It
has
already been said
that various forms of consumer

Teletype: NY 1 -4643

Direct wires to

Regular Features

WILLIAM B.

25 BROAD

Rare Earth

The

have specialized in

Broadway, New York 4

re¬

completion of payments.
This
statement is not a mere general¬

ignored by indus¬

many years we

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

to Lose Money in the Stock Market *
(Letter from
investor to J. F. Reilly & Co's Salt Lake
City office)

woman

Published

For

our

sive

are

DIgby 4-4970

Dealer-Broker Investment Recommendations

that

certain facts

are

our

world.

from the national

that

J.F.Reilly&Co.,Inc.

People's Capitalism

lieve the

drudgery of living, and
household furniture is sometimes
a
necessity. In some cases such
instalment selling is justified, in

the economies of consumer debt.
No economist has all the answers
to this question.
But there are

These facts

21 :

Small Nuelear Power Units and Areas of
Application
—Rear Admiral W. D.

cases, but only in some
Household appliances re¬

by terms which call

car

OIL & GAS

Leggett, Jr. (Ret.)

and
justified
-

stricted

was

SOUTH TEXAS

20 :

.'1-' —George C. Astarita

the

third

Canary—Alexander Wilson

RIDDLE

AIRLINES

Problem of Wage Expansion and Take Home
Pay

neces¬

expensive,

credit

should

5V2 million

A Tribute to

become

lion

even

Chances of Convertibility and
Long-Range Outlook
—George R. Potter__

Today's Stock Exchange for
—G. Keith Funston____

The

payments

year

Few peo¬

is too high. Another was that it is
advantageous to have a 7V2 mil¬
car

REFINING

Stock Split-Ups and Government
Bonds—Roger W. Babson— 21

some

cases.

tive

went

has

necessity in

was

homes;

usefulness.

millions

automobile

left unsettled.

Some

CORPUS CHRISTI

necessity of consumer credit - on
home purchases is
unquestionable.

loans

ments

LEASEHOLDS

Savings and Loan Associations and
Principles of Borrowing
: —George A. Mooney

institii-

money/ to
home for cash.'

social

most

debt

In.'

ownership is somewhat
cheaper than renting, and it has

question whether

consumer

enough

save

sion.

was

than

money

GULF COAST

Monetary and Credit Policies Towards
Strength and Weakness
—Beryl W. Sprinkel
11

consumer

special form.

very

ple

agreement
as
to the
to
which consumer credit intensifies
a boom and
aggravates a depres¬
The vital

Development Budgets

Trust Business Importance in
Commercial Banking
—C. A. Sienkiewicz

Credit

sharply differentiate

the many forms.

YORK

building

old

are

NEW

Telephone: WHitehall 4-6551

;

Murphy
and

WALL STREET,

Businessmen Must Make Themselves
Better Understood
—M. J. Rathbone

since

Any consideration of

conference

pages.

not settle.

cussion

Obsolete Securities
Dept.

Automation's Application to Rail
Passenger and Freight
Revenue—Thomas J. Deegan, Jr

Greece.

been

mortgage

household. goods

definite

printed

have

again.

can!

Home

credit in this country.

older

But

•

tions in this country.

The group in¬
cluded
the

Neil Carothers

report

•

Plym¬
outh Rock. Personal
loans, charge'
accounts, and instalment sales of

ganizations.

The

(Indiana)—Ira U. Cobleigh__,

Growing Emphasis Upon Research
'Winthrop H. Snuth_

•

were

Ancient

Uses

There

America

Credit

credit

Bible.

lenders

the: staffs

covers

—Ray

try, by government, and inexcus¬
ably, by economists.
:

were pres-

ent

greatest

into cash

the Economics of

Consumer Debt.

Can't change junk

Achievement of Social. Aims Without
Credit Over-Expansion

stabilizer, the boom is more bloated and depression intensified
by present consumer credit practices.
trial

..Cover

occurred after

; Is There Anything Wrong With Dow-Jones Industrial
Average
A. J. Cortese
Ji

debt-repayment record was at the expense
goods, and (4) instead of acting as a

demand for

new

debt prevents recovery

consumer

1929 when excellent

Standard Oil Company

abandoned; (2) post World War 11 rent control continuation
discouraged home building and vast price inflated building
program was helped by guaranteed mortgages at
"fantastically
easy terms"; (3) consumer debt system "depends for its solvency on a continually accelerating boom," and with a
collapse,'

•

ALL THE KING'S MEN
-

Meyer, Jr

have been

years

Cover

Sensible Instalment Credit to
Stabilize the Economy
—Dr. Neil Carothers_..__

consumer

believed

■

basis, Dr. Carothers

Page

for FHA-VA
Mortgages

Appealing for non-Governmentally regulated placing of instal-

llCHMTfl

"■

••

AM> COMPANY

Articles and News

What Makes Stock Prices?—Dr.
Charles F. Roos

Emeritus, College of Business Administration
•

■.

;

Lehigh University

' /.

■

v.,

SALT LAKE CITY

i'.'

iani'M

i)'-'

The Commercial and Financial Chronicle...
4

Thursday, May 3r 1956

(2132)

getting it out is unlikely to ad¬
greatly (on a per barrels

* "A

-ji*

vance

-v.
'

IRA U.

COBLEIGII

A salute to

must be

bought to supply company needs,
and this veritable Niagara of oil
Company; is marketed through 4,526 bulk
as
a
replants and over 30,000 retail out-

only for purposes of identification.
The
corporate name is

Oil

Standard

simply

and
*

lets,

the

suit

historic
break-up of
the : Standard
19

this

11,

company re-

tained

un-

bring the magnitude
the

within

range

of SN
com-

easy

prenension, consider that of our
national petroleum total. SN pro-

trust

Oil

duces

and sells 8%,,

4%;, refines

and propels about 16% through
mammoth maze of pipelines,

challen gfed

its

business,
amazing thing about this
big

Financing

right
to
the
"Standard"

ye^

moniker in 15

rnidwestern

(although it did market in
an issue 0f 31/3% debentures, now

But its

states.

business

total
Ira

Cobleigh

tjtan

Through subsidiaries,
American Oil Company on

Utah Oil
Refining in the Rockies and on
the
West
Coast, and Pan-Am
Southern in the South, Standard
the

Seaboard,

Eastern

does business in 45

Oil Company

it has never

common

the

There are

of persons across

daily.- customers;

are

SN. Mil-,
the U. S,.;
there are

be a contented lot;
employees of whom
60% regard their employer with
1954 enough confidence and affection

sold a
public,

should

who

51,500

and

out of the 48 states.

shares.

its

own

and total dividends on that
single $1,500, 1912 model certificate, would have, by 12/31/55, exceeded $73,000. From such bountiful investments grow Rocke-

On Nov. 15, 1955

feller Foundations!

Some industries, such as bottling
plants,
cement mills
or

against

fabulous total
other

electric

generating

build

plant

By any standards, Standard Oil
Company is an azure blue chip,
Exceeded in total assets only by

and

Socony

Vacuum, it carried gross
to
an
all-time high of

ones;

for 1956

Standard

$1,781.3

7.3% from 1954. This
plus $32,636,188 in
income (mostly from divion Standard of N. J. com-

million,

dends
mon

carried

owned)

down

of net—up $40 million over the preceding year.
The actual production of crude

$157,117,828

oil has, for the past 20 years, been
the most profitable section of the
oil business;
tion

applies

and this generaliza-

equally

big
So

the

integrated companies like SN.
we'll talk
It's

derived

mainly

United

production first,

about

with

States

the

from

some

Canada; and there's a big 15.000,000 acre exploratory land play in
Cuba,
half

which
and

interest

has

200,000

oneacre

joint exploration in Canada with
Hudson Bay Oil & Gas. Actually

produced, in 1955, about 45%
of all the oil it processed, deliv-

ering 274,000 net barrels of crude
and natural

gas

this,
runs

about

liquids daily.

production

Canadian

principally

8,000

bbls.

from

the

field where SN has

per

Of
now

day,

Pembina

one-half in-

and

systems,
earn

can

it,
addi-

from

without important capital
tion, for years —but not the oil
business.
The search for new
sources and reserves of crude is

Moreover, these dividends in New

Jersey

should continue.
there was in SN
1,587,197 Standard of

common

treasury,

value
million

$236

cost-of only $36

book

shares, 177,000
delivered 12/19/55 to

were

bal¬

The

shareholders.

Indiana

represents a dividend kitty
magnitude, for distri¬

ance

bution in coming years.
As

record

matter

has

inexorable, and in the case of SN paid dividends, without missing a
calls for tens of millions for ex- single year, since 1893. No won¬
ploration each year. Addition to der you find SN entrenched in
plant in 1955 alone was $230 mil- the portfolios of the leading en¬
lion for improved refining, trans- dowed
institutions,
investment
porting and marketing facilities. trusts and insurance companies.
Such outlay will be above $255
Not only is SN rich in oil, in
million for 1956.

In the aggregate

it costs $10,000 to build completely integrated facilities for
handling a daily barrel of oil; or
about $40,000 of investment for
each employee.
While SN has a perfectly voracious appetite for crude, it manages to move ahead year by year
in its reserves of crude and gas.
While not tapping the fabulous
and lush wells of Araby (which
average 6,000 barrels a day), it

has some
America,

10,000
and

wells in North

reserves

2,097

modern

distributing
and
merchandising facilities, in port¬
folio assets, but in that other es¬
sential
ingredient
of
corporate
plant

success—cash.
SN had

end

tal

At the

ended

year-

capi¬
' .'

per share earn¬
against $3.73 the
year earlier and prediction that
SN common will earn above $5 in

ings

1955,

1956

net

$4.81

were

seems

academic.

The

man¬

agement, headed by Dr. Robert E.
Wilson, Chairman of the Board

of the best informed oil
terest in 25,000 proven acres, and million barrels of crude and nat- men in the
world), is among the
170 wells.
ural gas liquids, plus IIV2 trillion most effective in the industry.
To bring all this oil to refin- cubic feet of gas.
(Texas is the
The importance of oil in,our
ery SN, through its Service Pipe largest
single production area.) roster of big corporations is not
Line Company, operates the most The foregoing reserves can, withwidely enough appreciated.
For
extensive crude pipeline in the out undue optimism, be calculated
example, there were at 12/31/55,
world
totalling
17,400
miles to be worth around $72 per com- 51 oil companies whose shares are
(much longer than the Southern mon share presently outstanding. listed on the N. Y. S. E., and the
Pacific Railway total).
Proven oil reserves in the ground total market value of these 51 is¬
Thirteen
refineries
processing are regarded by many as a won- sues was over 18% of the entire
(and

one

derful inflation hedge, since you
know the oil is there, and the cost

PLEASED TO ANNOUNCE THAT

all

listed

issues.

This

" fabulous,
and
fabulously
growing, industry will increase
by'another.6% this year, will spend
above $5 billion in capital addi¬

tions,
WE ARE

value

market

and

will avidly

additional oil

seek

J. KNAPP

consume

now

the

Standard

is among the
IS

NOW ASSOCIATED WITH

US IN OUR

day

factors

year

ago

the

week

Company

industries." Initial claims

totaled 234,400.

The total

benefits

4,000 to

edged up

1,280,700.

1,499,000.

year ago was

drawing

the total of workers

April 14,

ended

insurance

unemployment

said special reports from seven states

The Labor Department

of the nation's auto workers showed
Most
of these job separations were concentrated in four states—Mich¬
igan with 6,300, Indiana with 1,300, Wisconsin with 1,200 and

employing more than 75%

10,000 new auto layoffs in the week enided April 21.

about

New York with

During the same week the same states re¬

1,000.

ported recalls of about 2,000 auto workers. The department esti¬
mated total auto layoffs as of the week ended April 21 at a net
figure of about 123,000.
"forgotten man" in the steel market picture is export.
a prop should domestic demand falter, states

The

This could serve as

"The Iron

Age," national metalworking weekly, this week.
the strength of United States demand is that steel

The key to

producers are avoiding heavy export commitments. Even those
who are talking about a third quarter letdown are not going out
of their way to court the foreign consumer.
- - ~
«'
*
exports to Europe and other foreign con¬

It is estimated that

suming areas will total slightly more than the 4,400,000 tons shipped
abroad last year. The chances are the 1956 total would be a lot
more
if United States mills could spare the steel, continues this
trade

authority.
check

•

lion

tons

drawback

potential

that

Since

orders are going begging here.
The big
of it is in hard-to-get products such as

work

Backlogs of foreign mills are heavy and

Europe

suffering for lack

of needed

this trade weekly reports.

steel items,

steel

producers

built

have

sumers

•

much

plates and structurals.
reconstruction

foreign inquiries indicates that well over a mil¬

heavy

themselves disagree on whether con¬
inventories, it is questionable whether

quarter letdown, if any, will be of any significance. A
in third quarter production will be due as much to
vacations and hot weather as to any lack of business.
third

slowdown

Disagreement among steel leaders over the need for an im¬

Public sounding off on the
Nevertheless, no general
price boost is likely until after the settlements with steel labor.
By that time, tempers may have cooled, this trade magazine adds.

mediate price

increase is deepseated.

subject is more than window dressing.

industry, which closed out its all-time record week

The auto

exactly

one

States

car

stated

ago,

is scheduling its May daily rate of United

Friday of the past week.

schedule, which marks the first downturn since January,

The

calls

year

output 6.2% below April, "Ward's Automotive Reports"

for

24,800 completions daily compared

with 26,450 during

April.
At

the

same

time,

"Ward's"

counted

153,007

car

and

truck

week ago, a 29.4% decline from the like week in
1955 when the industry's all-time record 218,629 total was estab¬

completions

lished.

Thus, production the past week held steady with the prior
153,267 despite an inventory shutdown at Willys in Ohio,

week's

lack

assembly Monday at Chrysler in Detroit and observance

of Memorial Day
Ford

Thursday by several General Motors Corp. and

Division plants in Southern United States/-

Moreover, despite a change-of-pace from 134,000 cars weekly
in the first half to 129,000 in the latter half of April, according
to the statistical

authority, the auto makers operated at 98.9% of

scheduled volume in the month.

April production is estimated by "Ward's" as reaching 556,000
Continued

oil,
(Indiana)

page

mbst renowned and

consider

long-term investments,
SN, its growth, its divi¬

dends and its future.

Standard

Oil

duced results

Ira Haupt & Co.

figures were due to a slack¬

According to the bureau, the lower

resplendent.
If you ever need
proof of the merit of common
stocks

Unlisted Trading Department

re¬

in the U. S.

major
Oil

new

reserves

place the 8,000,000 barrels

MR. REGINALD

claims

first

655,000 barrels a day handle not
only the oil produced but the

The decline, reported by 40 states, brought the
to its lowest level since last November.

April 21.

volume

1955

net working

$479 million.

For

noticeably
V

obvious

Employment Security states jobless pay—
which reflect layoffs—dropped by 21,900 to 202,900 in the week

these

million.

date

Bureau

Its

N. J. shares with a market
that

higher

level than the
"
In the field of employment, it was learned that the United
States Department of Labor reported a decline in new unemploy¬
ment across the country;
•/ ",/
/•->'
.
registered

output

ening in layoffs in "a wide variety of

140,

petroleum in¬

Notwithstanding this slight dip in total industrial production,

comparable period in 1955.

(12/31/55)

stockholders

132,800

past week that fractional declines were

in the

noted

was

over-all

continuing interest in

lions

lot of people with

Industry

reported, in the steel, electric power, lumber and
dustries.
"v V : V

other laboratory
-

Index

Business Failures

J
It

gasoline now marketed

by Amoco are
achievements.

and

first.
Improved oils for
compression motors, and a

lead-free

Price

Auto Production

high

Commodity Price Indea
Food

convertible into
Mention has already been made
COmmon at $43.50 through 10/1/57
of the fortunes that patient share
amj at $46 thereafter). The presholding delivered to early buyers
ent outstanding 33,630,485 shares here.
Recent purchasers haven't
0f common have come into exist- done too badly, either. There was
ence mainly from splits and divia
100% stock dividend in 1954;
dends
on
the
10,000 common and cash, plus Standard of N. J.
shares outstanding in 1912, and shares (one share of N. J. for each
quoted
then
at
$1,500 apiece. 150 shares of Indiana held) cre¬
Fach one of those shares has blos- ated a cash value for 1955 divi¬
somed into 1,800 of the present dends, of about $2.40 a share.

restricted.
The

selling

thus

means,

that

research results
for a number of years. It devel¬
oped, some years ago, the Hydrofrac
process
now
widely used,
with royalties running to SN. Tne
Ultraformer cracking process for
hopping up the octane content is
an

Retail Trade

State of Trade

Standard Oil Company has been.

heavy barrelage which

the "Indiana"

In the above title

Production

Electric Output

Carloadingrs

right up front in

patrician in petroleum.

The

costly!

Enterprise Economist

Steel

basis) over the foreseeable future. /
It's the looking for oil that's so

standard!

Investing in
Company has pro¬

that

are

way

above

WITH

DEEP SORROW WE ANNOUNCE

THE DEATH

OUR PARTNER

EDWARD R. O'KANE
MEMBERS

NEW

AND OTHER

111

broadway

YORK

STOCK

EXCHANGE

PRINCIPAL EXCHANGES

new york

Phila. Inv. Women Meet
PHILADELPHIA,
Pa. — The
regular board meeting of the In¬
vestment Women's Club of Phila¬

delphia will be held Monday, May
7, 1956, at 5:15 p.m. in the Board
Room of Dolphin & Co.
- -

MONDAY, APRIL 30, 1956

JOHN

O'KANE, JR. & CO.

Volume 183

-Number 5530... The Commercial and Financial Chronicle

(2133)

buyers, their number more than doubling, from 683,900 to 1,40^000.?
During the same period, similarly, the number in un-split Socony's
stockholder family rose by 44,000, or 33.9%, On the other hand,
split (in 1955) Cities Service lost 142,000, er 44.4%, of its share¬
•

•

holder total.
,And it

significant that, at that supposedly forbidding
high "un-split" price of $64.50 per share, Ford Motor stock recently
>

By A. WILFRED MAY

was

seems

avidly consumed by 350,000

FINANCIAL FRANKENSTEIN

Price
The

splits! Stepped up to a grand
certificate slicings to the time of 150 have
already been ordered since the turn of this year.
And

now

the deluge in stock

Greatest

Intelligence—Our

Need

for

Thomas

cess—

Good

Spates

—

In--

dustrial

Era

Pasadena, Calif, (paper), $1.
Check

List

Marketing

Man¬

Advertising, MarketResearch,
Merchandising,
Sales
Management and Sales

stockholders'' lunch

Highlights:

demands

splitting from

Cost

Finance;

tion

ences

the

versity

prompting the splitting of stock by
managements; together with the actual results.

wise-caused increase

Infla¬

following table, it

owners.

indicated

the

—again absent in the static Telephone company profit situation.

be concluded that stock-splitting companies

may

bull market.

owner

Year

•

►

■

—Years After Split—

Year

Before

:• Split

Spilt

Years

•

9% *,

which has not been split since 1949, and selling
nevertheless in 1955 gained 7.4% in its number of
shareholders.
Similarly, over the postwar; decade
1945-1955,
American Tel. and Tel., although un-split in the upper 100 price

Foreign

Credit

Corporation,
'

above

Underwriters

2 5 3

terms

American

Broadway,

New York 7, N. Y/

'*•"

Insurance-

Commercial

Investment

Real

lists, all of which have split their stock. Its relatively
high price per share evidently constituted little of a deterrent to
mon

Estate

—

Harold

Wayne Snider—Richard
Irwin, Inc., Homewood, IIlinois (cloth), $4.00.

Board
:

tions

the

Trade

—

WE ARE

PLEASED TO ANNOUNCE

1955

Fred W. Faihman, Jr.

Fair man. Harris &

David j. Harris

Company, Inc.
MR. HARRIS

of Trade, -141»
Boulevard, Chi4, 111. (paper), on request.
and

Loan

United

Annals

States

AND THAT

135 SOUTH

THE

FOLLOWING OF THEIR FORMER

MR. FAIRMAN HAS BECOME RESIDENT

HAVE BECOME PART OF OUR

/*.-

209

BRANCH OFFICE SYSTEM:

for

LASALLE STREET

LOCATIONS

;

CHICAGO, 209 SOUTH LASALLE STREET

CHARGE OF UNDERWRITING

PARTNERAT

SOUTH LASALLE STREET, CHICAGO

(the former fairm an. harris

Savings

Soybeans: The Story of Soybeans,
Soybean Oil, and Soybean Meal,

Loan
League, 221 North
La Salle Street, Chicago 1, 111.
(cloth), .$5.
<r
-iv

HAS BECOME RESIDENT PARTNER

CHARGE OF OUR CHICAGO OFFICE

and

Board

—

PARTNERSHIP OF

THE OFFICES OF

THAT WE HAVE ACQUIRED

Jackson

Savings

PLEASED TO ANNOUNCE

THE ADMISSION TO GENERAL

Facts about the Grain Exchange'
—Public Relations Department,:

cago

were

West

•

WE ARE

Rela-

Chicago

of 10%

Questions and Answers: Important
'

reported, for 126 stocks—42
"down and 84 up;
} r-\ .;v
~
•• v
j
Changes of less than 2% were noted in 263 issues—160 down,
103 up.5
: ■
/•,,
:: ././I
.
<v.
230 stocks changed between 2% and 4%, 148 down and 82 up.
114 stocks lost between 4% ahd 6% while 68 gained that much.
Changes

Chicago

Public

No change was recorded for 50 issues.

433 advanced.

:
•

Department, Chicago
-Board of Trade, 141 West Jack: son
Boulevard, Chicago 4, 111.
:
(paper), on request.

stock

Exchange reported

Marketing Grain Through a Grain
Exchange — Prepared by ; the
University. of r Illinois in. cowith

ON MARKET DIVERGENCE
today that during
total of 591 listed common stocks declined while
Stock

York

New

April, '1956,

Pont,

200,

a greater average * of yearly per cent change—.at
7.6%—than any of the six companies with the next largest com-

■

operation

The

vrange^ showed
1

Life

;

less

OUR LATEST FLASH

Years

outlining

Year

lofty approach, the possibility of post-split
practical disillusionment to the company's own shareholders should
not be ignored.
\
;

With Significant Data Available for Five Surrounding Years

And from

Standard & Poor's Solitting Cos.

Increase in Share Owners of• 13

flowing from this craze of the current

stimulation to stock prices

Increase in Share Owners

—

conclusion, this writer is opposed to splits by companies

which, like "Telephone," have broad social consciousness. Such
directorates have a duty to abstain from furthering the inflationary

accelerated

edition—Free descriptive folder

subscription

dividend-hungry

growth by three years after the operation:

annual ; revised

from the publisher

the

growth immediately follow¬
ing the split; but this greater rate of growth resulting from the
stock split tends to decrease to the former pre-split normal rate of
generally show

Sales and Credit

35th

—

a 71% pay-out by other utilities).
stockholders' pressure should be
directed at the rate-making bodies for higher revenues; their
remedy lying there and not in the splitting-up of stock certificate
paper. Nor is the argument for splitting as a means of increasing
the number of consumers via share-owning, applicable here—since
the company constitutes a monopoly already having as its cus¬

of 75% of its income (vs.

Hence,

the ' serious

some

accompanied by an increased dividend; which is not at all lea-*
case of Telephone.
The company already pays out an

average

».

the record of the splitting companies in Stand¬
and Poor's list of 50 industrials in which there was no other¬

Guide

sible in the

Again, a common reason, if not absolutely prerequisite, for
stock-splitting, is the accompanying presence of growing earnings

ard

Commodity Com¬
Trade; etc.—Uni¬
Chicago Press,

American

examine

Results

Purposes And

Our Largest Corporation

tomers all those who have the means.

Chicago, 111. (paper), $1.50.
Latin

stock-

behalf of an

this is warranted by

Israel;
Econometric
of the United States;

position

First, the popular assumption that stock-splitting importantly
the number of share owners.
Surely skepticism about

models
"Availability" and Other Influ-

;

The Pressure

.The agitation for stock-splitting seems to be particularly in¬
appropriate in the case of American Tel. and Tel., at whose annual
meeting your columnist (representing two trust funds) voiced
his opinion to that effect. A sput is of benefit to the investor only
•

increases

Inflation¬

Controlled

Let

May

conscientious

111.

Political

Welfare

retired jurist

motives

Economy
1956—Containing articles

April

ary

A. Wilfred

Chicago

Boulevard, Chicago
(paper), on request.

The

West .Tarf--

son

allegedly abused philanthropic agency hold¬
ing 650 shares of the stingy company's stock.

Facts -about

Department,

vitriolic

management ior

heinous

;

gathering, major atten¬

tion—and publicity—was occupied by

Price Insurance and Speculatidn
in the Grain Market — Public
Board of Trade, 1*1

shareholder

between

—

cent Amer. Tel. & Tel.

J. Courtney —
Courtney, College of Com¬
merce,
Creighton
University,
Omaha 2, Neb. (paper), $2.50.

Hemphill, Noyes over-all index both rose by about 20%
auring the period).- f; •
...
•'
1 -Vf
,

Promotion —C.

Journal

and the

"representatives" and management. At the re¬

C. J.

Relations

becoming

pensation curbing, dividend liberalization, and

ing

Hedging

device

this

Harold

shows that issues

major facets of "discussion"—along with com¬

for

agement:
"

that

inflation;

study of market action during the calendar
Clayton of Hemphill, Noyes & Company
priced at 70 and over advanced by an average
of 25%, the 40-50 issues by 22%, the 30-40 stocks by 11%, the
20-30 shares by 8.9%, the 10-20 units by only 3%, witn the $l-to$10 issues declining by 1.8% (The Dow-Jones Industrial Average
1955

year

growingly important.. It is even bobbing up
at annual company. meetings as one of the

Relations Section, Cal¬
ifornia Institute of Technology,

linking of reduced price to favorable market action by
by the actual per¬

formance record.

only through its influence on the stock market,
including the stimulation toward its new New

But it is not

Suc¬

stock buyers.

eager new

Market Behavior

the split advocates is likewise rendered dubious

total of 239 in 1955, such
Administrative

and

OF OUR CHICAGO

office)

ACTIVITIES

OFFICES*

NATIONAL BANK BLDG.

EMPORIA, KANS., CITIZENS

HUTCHINSON, KANS., 16 EAST 2nd STREET

Robert Ij. Raclin

their

and

uses

products—Public

Relations

Department, Chicago
Board of Trade, 141 West Jackson
Boulevard, Chicago 4, 111.
(paper).

SALINA, KANS., 315 UNITED

and

Booklet

OUR

BUILDING

«•

Business

PARTNER IN CHARGE

OF COMMODITY ACTIVITIES OF

CHICAGO OFFICES

Law parade—

'f.
.'i

■
*

•

CONTINUES AS RESIDENT

BUILDING

WICHITA, KANS., 51Q PETROLEUM

Tax

EAST FULTON STREET

GARDEN CITY, KANS., 107

tracing high points in,
the law im¬

•: i

•S-'.

♦' ;

*?(!,?

i''

■

.iJ

•»'

'■

WE ALSO

the development of

■

-'•*"

ANNOUNCE WITH

THE WITHDRAWAL FROM

portant to business and its ad¬
visers
Commerce Clearing
House-, 4C25 West Peterson Ave¬

REGi4£T

PARTNERSHIP OF

—

nue,

Myron

Chicago, 111. (paper).

F, Uatcliite

AS OF APRIL 30,

1956

Two Keys to Modern Marketing—
:
Charles G. Mortimer—The Up<

degraff

Press,

Ltd.,

Scarsdale,1

N. Y„ (paper), $1.

Wage

■Problem

—

Economic
310

Trend

the

Farm

Kelleghan
Line

«•

What's New at Alden's—Brochure

showing
•

grally

new

molded

series

of'

inte-

insulation

members

new york

stock exchange
other

•

135 SOUTH LASALLE

_eading

american stock t*change
stock and commodty

STREET: CHICAGO 3

midwest stock exchange

exchanges

209 SOUTH

LASALLE STREET

TEU: FlNANCiA^

designs—Alden Products
Company, Dept. 13 WN, 117
North
Main
Street, Brockton
64,: Mass..;

0-4300

MAIN

OFFICE: 36 WALL

CHICAGO 4

Tel..: DEarborn 2-1421!

con-

■

nector

♦

Co.

Founded 1879

Studies,

South

Michigan Avenue,
Chicago 4, 111. (paper), $1.00.
'

Bache &

-e

Inflation^, and

STREET

NEW YORK 5, N. Y,

highs conceals

Anything Wrong With
Dow-Jones Industrial Average?
By A. J. CORTESE*

Cortese, Kupsenel & Co., New York City
Members of the New York Stock Exchange
'

In recapitulating the

i
J

merit of

•

of the Average to represent major in¬

of the "economy" and not the investment
Offers revision

section of the stock market.

cross

Dow-Jones Industrial Average, Mr. Cor-

tese defends the intent

dustrial segments

better constituted
and computed Average, to wit: (1) daily publication of actual
average price of the 30 stocks, instead of the present series
which is not an average; (2) publication of a factor to convert ~
current data for comparisons with the past series; and (3)
revise composition of the components in the Average to allow
up-to-date continuation of the representation of important
suggestions in the hope of effectuating

stock

that

criticism

has been

and

some

ridicu¬

even

has

lous.

called

been

misleading,
unrepresentav

But

whether

the

mis¬
depends

Average

years

not

true reflection of the

was

•Mr.

Cortese

also

faculty of Fordham

member of

the

University.

This

all

the

such

its

CO,

MASS.

Telephone Richmond 2-2530
Teletype BS-630

cross

Continental Telephone Co.
Grinnell
Kalamazoo

Corp.

some

part

section

true

with the passage of time, theIndustrial Average is!

and*

Index Components Based
Upon
Importance
5
It

is illegitimate,
therefore, to
complain that the Average at new*

also

does the new,
price. Therefore, I

gives J. F. Reilly & Co.'s
Lake City office Buying and

Salt
Sell¬

ing Instructions.
Tnhn F

Jonnr.

Reilly of J.
.

F. Reilly &
lp.,
'n.

Co., Inc., New York ,U^ y,
vided the Chronicle ™

.present 30 stocks do not represent

important industries so
they did when they were

most

following letter

p -

received_by
ofIDc
cont

there

issues in some industries,
companies should be enough

many

-Two.

PHILADELPHIA BANK STOCKS

represent

There

Phila.

Hajoca Corporation

Transportation Co.

Smith Kline & French Labs.

Hercules Cement

John B. Stetson Pfd.

Public Service Coordinated

South Jersey Gas

Corp.

Co.

Strawbridge & Clothier

Nazareth Cement Co.

Warner Co.

4s, 1990

Penn Fruit

Alan Wood Steel Co.

„

Send for

Quarterly bank comparison

they do not pay any
Elimina- Thank you."
in
Vei*y truly,

would permit inclu¬
sion of representatives of the im¬
portant
aluminum,
paper
and
machines industries and

business

ergy.

a company

"Name

STROUD & COMPANY

"P.S.—You may

check my credit

with

Merrill Lynch,
& Beane." V ■

Samuel K. Phillips & Co.
Exchange

wx-

Anaconda

NEW YORK

•

PITTSBURGH

•

ALLENTOWN

•

LANCASTER

the
•

SCRANTON

can

N. Y. Phone
or

better

copper

Kennecott

seems

representative of

industry than Ameri& Refining.
Swift

Smelting
Armour,

Products

E. & M.

Klauber Formed

-M. Klauber
formed with offices at
,

National

Borden

would

Dairy
be

has been
120 Broad-

New York City, to continue
investment business of Edward Klauber and Murray Klauber & Co. Partners are Edward
Klauber and Murray Klauber,
general partners, and Edith H.,
Klauber and Aimee Klauber, lim-

way,

the

the air.

PHILADELPHIA 9

rating

Pierce, Fenner

will

probably
be
engaged
in
the
widest application of atomic energy—on land, in the sea and in

INCORPORATED

Addressor

is unseasoned, to include

Pratt Read Co. Common

Woman

dividends,

Withheld by Editor.

in atomic en¬

It may be premature, be¬
as presently constituted the

present that the company

Guarantee Bank & Trust Co.

COrtlandt 7-6814

* "I
do not desire "to hold-any;
studebaker-Packard stock because

General Dynamics, but it appears

Buck Hills Falls Co.

Pennsylvania Bldg., Philadelphia

immediately. In any event try to
realize 75c to $1 a share prolit
exclusive of brokers fees. .

excessive' items

four

company

Pocono Hotels Units

three
that only

these groups

cause

Company

all the issues.

third
tion

industry,

please purchase for me lOu.shares,
and then when it climbs to 9 or
9^ to 9% please sell the. shares

industries account for one-

perhaps
I. T. E. Circuit Breaker Co.

one

any

four ;chemicals,

are

steels and three oils, so
three

Beryllium Corp.
Teletype

industry reprebalance,
are
included too

seems,

Mentation is badly out of

PH 30

in Utah

in small town

Woman

Be¬
the
ine

of the paoactge ujl time,
lxic
passage of time,
wx

Lose

are, on the other hand,
selected many years ago.
There firm's Salt Lake City
.
.
:
legitimate criticisms of the
■are, for
example, no companies the thought that the
Average as it is constituted and
engaged primarily in the elec- occasion a chuckle or xw .
computed today. Reducing the di¬
tronics, aluminum, business ma-:
Riiey"
i
visor'from the original figure of
"chines, television and radio or "stocks and Bonds
30
(which gave a true average
paper industries. If we judge an
«galt Lake city, Utah
price for -the 30 stocks) to * the
/industry's or a company's impor¬
"Gentlemen:
;
i
present figure of.4.79 (in order to,
tance in the economy by the size
give continuity after splits and
"I notice that Studebaker-Packof its sales, then companies in
substitutions) no longer gives a
ard stock fluctuates widely, af¬
these five industries should be intrue average and furthermore, it
fording a margin of profit within
eluded and Radio Corp.* for ex¬
exaggerates not only the price, but
a short time.
. V '
•
should
surely v replace
also the fluctuations. It may be ample,
"When it goes down to 7Ms or 8:
Loew's.
»f lie**- XX &V"-L> uu"" v~ *
"

W. C. Hamilton & Sons

PH 375

Rockwell

Barron

Money In the
Stock Market

change that seems de¬
sirable has to do with the present

because

1914

Teletype

How Not to

The other

for

27 years.

the

There

Active Trading Markets Maintained in all

Telephones:

Stock

& Co. Inc.
over

Revision of Composition of Index

Phila-Balt.

Halsey, Stuart

BOENNING & CO.

Members

divided

the

Parchment

Phila.-LO 8-0900

been associ3 ted with

multiplier, which
quotient
of
30
by the current, adjusted
divisor, for students who wish to
maintain continuity of the series.
would

Keyes Fibre Co.

ATT

the

has

Rockwell

the
old

composition of the Average.

Vegetable

Established

method

divisor,

the

Also

NY-CO 7-1202

office, 35 Wall
M r.

S t r e e;t.

is exactly

does.

now

average

clude

Substitutions

partment of
the New York

suggest that in addition to the true
current average, the publishers in¬

well

Dow-Jones

one.

effect,

Dow-Jones

amounts

age

ridiculous.

Divisor for Splits and
...

of the municide¬
P81 bond

series fluctuates the same percent¬

.—f.

the: two

nothing

change

cause

such, and apart;

the

-vv.Uuv,

from revisions that may be neces¬
sary

fact

computation

estinent

rlc\ He'Will
"e *n c"arg.e

This,

what

out that not all stocks
are
rising with the Average is
legitimate, but to denounce the
Average for its failure to reflect

American .busi-<

ness, not a cross
stock market.
As

series.

To point

that

^uart„&

quantity

rising! The av¬

Rockwell

irm

opposite •! finds fault old series the same percentage
Average still carries changes that occur in the-new

tion, they would decide that the
Average had better be left as it is.

and

section of the economy,

should deceive

Continuing Interest in

•

is out of date, these critics
and for those stocks in it
that are standing still, they woilld
substitute more dvnamic stocks,'
stocks that are rising steadily and
have
brilliant growth ahead of
them.
It seems that if these two
groups

to the new
by multiplying
(or
either, the price of the
split (or new) stock (weighting)
or
the average itself. The most
accurate way to reflect in the old
series changes in the new average,
for continuity, is to apply to the

because

elected

only two
stock split or

are

V.-P.

has been
Vice-President of the

Barron.

substitution: by adding or sub-

tracting

say,

consider the status of the

misrepresenting

Basically, there
ways to adjust for
a

E. Rockwell
E.

i ii

erage

representation of the most im¬

portant

c)<

the

stability

I
l't v

Halsey, Stuart Elects

figures for compari¬
with the past.

son

to reflect the de¬

stocks that are not

selected, we must conclude
that the Average was meant to
a

mo COURT STREET, BOSTON 9,

the

Leeause

preceding

the

the Average

the

stocks,

failed

rises

clines

were

KELLER BROTHERS

Woolworth, one

Whereas the first quar¬

with

relled

companies at the time the stocks

New Offices

opposite

criticism.

to do.
If

current

.'the

fault of conception.

nor a

the

attempted

our

Curiously, there is another com¬ ..average
plaint, equally senseless, - that is dividing)

cate¬

composers

significance
series computed to
more

critics got together,
compared their wishes and com¬
To represent the whole
of the
stock market, any sampling would plaints and examined the signifi¬
cance
of the Average's composi¬
have to
gories.

visit

The fact that

tion,

stock

revisers of the Dow-Jones Indus¬
trial
Average never

When in Boston

than those Of

of the Average,
does not
constitute a fault in the Average.
It is neither a fault of construc¬

to describe the stock market in its

include

have

tuations

has not risen very much

upon

Cortese

large body of figures

all but in& wltJl a
the actual every day.
the actual flue<
To

average.

current price and

of the components

intended

never

students of the market,

•<

sensible

holder

age.

simple consideration of the
composition of the Average should
it

miscalled

enjoyed in¬

never

say that=
Woolworth give continuity with the past. For
students, there could be published
during the past few years is be¬
also a factor which would convert
ing hoaxed by the soaring aver¬

Nor

the

that

food

student-only
of

industry.

tance of the

market.

show

better representative of the

many

d
usefolness to
faithfully

status, yet steels'were
because of the impor¬

included
mar¬

entirety. It was intended to rep¬
resent, rather, major industrial
what
segments of the economy.
If it
you
think it had
ever been meant to depict the
represents;
stock
market—the whole of it,
and too many critics have failed
that is, —it would have contained
to distinguish between what it is
stocks
of
weak
companies and
and what it is not, between what
strong ones; speculative and blue
it represents and what it never
chip; recessive and growth; poorly
■was
intended to represent
Nor
managed
and
ably
managed;
have they realized that no average
stocks of young companies and
can represent over a long period
those of old ones; stocks of small
ci time what they think it should
companies and those of large ones.
leads

industry

steel

There-

ago.

that

true

the?'stock

fore, say the critics, the public is
being misled and the Average is

distorted and

t i

several

were

selection was me that the simplest and most rePresent the economy and would
solution would be to mean to the market
not quality, but importance in the practical
most important industries, with¬ publish each day the actual aver- the slight inconvenience
out regard to investment merit. agre price of the 30 stocks, instead putmg another set of figures but
which is he is already'accustomed to dealUntil recently, for example, the of' the present series,

the

against

but

is that the basis for

vestment

represent—the whole stock

lieye,

independent automo¬

Dow-Jones ket.
Industrial Average,
as
well as
There have been complaints, for
ether averages, during the past example, that the Industrial Av¬
year
or
two, erage is not telling the truth, that
some
is legit¬ its historic
new hfighs conceal the
imate, some fact that many stocks are declin¬
illegitimate ing or are much lower than they
directed

newcomers

industries
Of the

readers to be-

hard for informed

the fact that the

industry than Corn Products Remarket-fining.' Annual sales of the two "
bile manufacturer is declining.
It
was
never intended
to strike an get the impression from the In- meat companies are each larger
dustrial Average that the average than those of the largest chemical
average between thej strong, and.
stock sells at 500. What is worse, company and those of the two
the weak.
Not only should this
when they read that the Average dairy
products
companies are
be obvious, but it should also be
fell 5 points one day, they get larger, respectively, than those of i
obvious that any attempt to do so
the impression that the average the
second
and
third
largest •
with a choice of stocks that would
stock
fell
5
points. These are chemical companies. In point of
endure over the years would be
futile.
For
what
composer
of serious drawbacks,, but the prob^ salesr Corn Products does not -j
v such an average would want to Jems involved in maintaining a rank among the hundred largest '
true average and continuity at the
corporations.
•
'
' 4/ •
predict which companies will con¬
same
time are many and - those,
rri,„rt„
jw
tinue to be weak over the next
who tackle the problem find that
, 'These revisions in the comp
li¬
five or 10 years?
To- select the
J
multiply
with tion and computetwn of the^ow-. .
dominant companies in the most the ; difficulties
-thought and with the exchange of Jones Industrial Average wou
important industries is a... differ¬
ent
matter, and that is ,exactly ;thoughts, After- a good deal of greatly improve its
what has been done.
The point thought and discussion, it seems to the PublJc» would more

Is There

Thursday, May 3, 1956

The Commercial and Financial Chronicle...

(2134)

ited partners.

Volume 183

Number 5530

The Commercial and Financial
Chronicle

...

(2135)
is

surance

Achievement of Social Aims

the

one

illustrations of

the

finest

It is therefore

acceptance of .that

entirely in order
in the insurance business

-individual responsibility and is in

take

harmony

broad social and economic forces

with

those

American

principles- which have made this which
country
By RAY D. MURPHY *
Chairman of the Board,

,In emphasizing.the
responsibility of insurance
creeping price inflation, Fquitable's Chairman
control to the Federal

to oppose-

men

Reserve; decries growth, dependent

upon ?

sav.<

-i..

„

all

are

;f;

private

....

the

occurrence

of. clainu-It is not

at work in
We have both
are

racy.

our

the

democ-

a
right and
obligation to urge upon the
public and upon our political rep-

resentatives the principles and actions which we believe will preserve

healthy

economic
and
In that spirit I wish
about two subjects which

social order.

together at this
meeting, we have just

to talk

I believe may have an important
concluded- a year of great expan-.. bearing
on
the
future
of
the
sion in our insurance affairs durcountry and hence upon our efing 1955, following a series of fectiveness as organizations,
v'
years

haps

of substantial growth. Perall tend to feel a-bitr

the

about

and

future.

for

can

f think

the fact
our

Ifi

lg35

when

Security Act

the

was

{irst

Social

passed its justi,

„7QC

ds was

many m

must be

that the

efforts in the

in the past, will be conditioned
by the
economic
and
social atmosphere in
which we
are permitted to work.
as

come

during old age for those
who could not provide for them¬
It could be looked upon

selves.
as

and

both
*

risk

property.
surance

that

healthy financial condi-

to detect what

may be

surance bargains.,
The

new

ventures

policy-?

prpgress.'yif,

been

cailed in"

essence

saying

for

example,-

what

that

have

private

in-

examine the amount of individual

substitute, partial

...

total,

or
,

rel.ief payments, but for all
those

included

Passed well beyond the scope of
?®lie.f/ In fact some V? hlgh aiJ"

thority compared it to the compulstates companies, we find a high sory individual purchase through
point- was reached in 1931 fol- taxes of an annuity on each worki0Wed
by a dip which did not er's J.lfe\ Such a comparison was
again reach the 1931 figure until gross y inaccurate, for the plan
1940 The story of annual sales of violated many basic principles of
new'- individual life insurance individual annuities.
Individual
policies is even more dramatic. efluity is disregarded and conseA high point was attained in the fluently there is involved m the
new sales of
1930, after which we Plan a redistribution of wealth
experienced
a
severe
drop
in among the participants.
jife

insurance

force

United

sales,
1930

abolishing the Social Security
do believe,
however4, that

Act.' I
what

changes are made in the Act
will have much to
do with * the
future economic condition of
this
country.

The

Act

has

approaches—and

for

minimizing of hazards

and

unnecessary risks. All
these things we do in one
way or
*

another, with great public benefit.
'</ There

insurance

companies which

two points about

are

our

Not

and

failed

level until

;

private

management.

corporate
sensitive

.needs

come.

Naturally, they like it. That
means,
however, an

ultimately

increase in

Social Security taxes
active workers; but the full
Impact of these taxes is largely

postponed. In fact, the future tax
mcrease, even if it is to be substantial, probably

escapes the at¬
tention of most people.
They will
become conscious of it only when
the increased taxes

their

lustrates
ness

are

recurring increases in ben¬

efits.'

Meantime
faces

marked

know the country
increase over at

least a long period in our
population. A multitude of
tions and uncertainties face

trying

estimate

the

recover

/~v4-

the

1946.

nnmimTtr

timwb

AVI

the

consequences

nothing of

Let my general attitude not be

misunderstood.

not in favor

say

number

which

already

our

Common Stock

($1%

for'

Par
Value)

Price $433/4

private operation in that field.

seems •;

hardly necessary to
say that our privilege of
private
insurance management
imposes on
us also a
special obligation in the
realm

ethics.

Insurance

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

highly technical business, not too
well

understood by the public.
Any^ impression—right or
wrong
■

—which
are

the

unfair

advantage
matter
And

public
that

•

gets

them

public

the

ptiblic

damage

hurts

all. It

lief

that

one

the

.insurance

dif¬

this

BLYTH & CO., INC.

respect
sincere be-'

character

managements

GLORE, FORG AN & CO.

averages

unusuallv

high, but it

ourselves from time toV'
the interests of all in¬

that

surance

companies

preservation of these
ards.
The

other

should

DREXEL & CO.

GOLDMAN, SACHS & CO.

may be well

demand

HARRIMAN RIPLEY & CO.
Incorporated

LAZARD FRERES & CO.

the

high stand¬

fundamental

EASTMAN, DILLON & CO.

KIDDER, PEABODY & CO.
LEHMAN BROTHERS

point I

SMITH, BARNEY & CO.

to emphasize
about
insurance
operations
is
that, in contradistinction to some-

private

schemes, they are
the broad principles of
individual equity. The
premium1

MERRILL LYNCH, PIERCE, FENNER &
BEANE
STONE & WEBSTER SECURITIES
CORPORATION

UNION SECURITIES CORPORA TION

governmental

based

KVHN, LOEB & CO.

to remind

time

DILLON, READ & CO. INC. : THE FIRST BOSTON CORPORA TION

corporations,

ethical

MORGAN STANLEY & CO.

serious

relations.
does not

distinguish carefully between
ferent insurance

have taken

our

since

that

WHITE, WELD & CO.

HORNBLO WER & WEEKS

for-each

risk

determined

PAINE, WEBBER, JA CKSON & CURTIS

Annual!

Meeting rf the U. S. Chamber of C~mmerce, Washington, D. C.,
May 2, 1956.

WER THEIM & CO.

DEAN WITTER & CO.
♦

May 1, 1956.

*An address by Mr.
Murphy before the*
Insurance
Section
at
the
44th
,

fu¬

pen-

in sight to be
non-productive population? Can enough of any such
Continued on page Id

are

paid to

people, and tothat risks which can be
pro¬
vided for
through genuine insur¬
ance
principles have our services
-available. Otherwise we invite the

any

Can increases in national productivity provide adequate means
to meet the increasing benefits

also

governmental

effect of

of private

an
offer to sell nor a solicitation of an offer to
buy any of these Shares.
The offer is made only by the
Prospectus. *

the

the^large number ot private pen
sion plans must oe considered too,

see

substitution

Act

The

1,278,833 Shares

aged
ques-

economic

stands, to

ture liberalizations.

great personal and--

responsibility * to / be
developing insurance

among

taken out

envelopes. That il¬
the political attractive¬

pay

seem

older

get
an
immediate
ot
nearly immediate increase in in-

typical

.of

Tplaces

our

citizens

New Issue

portance. Foremost, our
compa¬
nies are private in their
organi¬
zation and in their
management.
While
they - are
supervised
by

public authority they are not
part
of government. That
permits the
.kind of progress which
is

liberal^

large number of

....

fundamental im-

obvious

ized,

This announcement is neither

thus

eliminate

When benefits

which hazards

a
more serious
handicap
.than in many older
businesses. It
can
also lay intelligent stress on

re-

are

reason.

can

been

peatedly amended to increase the
benefits. It is a tempting
political
opportunity when election time

......

...w

business
-

our

our own preserva-

peoples'self-interest is quick

In-

makes

a r

A group of ex p e rien ce d
insurance '.people
such
as
this
audience needs no demonstration

practicable

tion.

tion

consequences

persons

fairness

holders and for

amelio-

rate adverse

.of

■-

Insurance
-an

always at-

tain perfection in this regard but
it must be our constant objective

upon

Social Security Temptations

present

our

prospects

our

certainly be
excused for having an optimistic

future,

appraisal of the likelihood of

important
risks in life.:

"..

...

effectiveness of

the

may not

*.■

system

interest

the plan by
maintain the
intention that^one. class of
I, occasionally
remind myself definition no means test would
by which our more hazardous
risks
be- sub- that the
history of life insurance
required in order to collect a
citizens may sidized by a class of less hazarddoes not show one unbroken line benefit,
and therefore the Act
share some of ous risksLWe

means

Murphy

conscious too of

the

their

R. D.

of
believe that

our

Insurance Growth

outlook.: But

Security liberaliza*

situation

organizations

created to establish
a

engaged

administration

•

complacent
;

possible economic danger, and warranting objective
study.
V

said

As::w gather

and continued
apparent ease in passing on wage increases inv

tion

Chamber

Ings; and praises Federal Reserve vigilance and
courage. Mr.
Murphy sees inflationary storm warnings in: mort*age-eonsumer
debt; total spending exceeding new capital
formation;
possible capital goods boom^ and price increases in
1956;
Social

...

proposes grant-?

great expansion of credit rather than
upon investment of

,form of higher prices. Sees further

have

of the great-

private enterprise. I
to be true.

and residential
mortgage direct credit

consumer

bulwarks

est

one

The Equitable. Life Assurance
Society of the United States

ing stand-by

Some

great.

that insurance is
..

active

May 3, .1956

Financial Chronicle... Thursday,

The Commercial and

(2136)

Dealer-Broker Investment

Industries.

Firth

issue—Harris,
Broadway, New York 5, N. Y.

120

Convertible

Nordeman &

Stocks

Preferred

and

Bonds

Bulletin

General
Wall

Canada—Dominion

Securities

Limited, 50

Corpn.

—

National

the

Security Trad¬

York Central

New

vs.

Bulletin

—

Associa¬

ers

Security

tion,

Traders Asso*c

t i

New

o n

York, and
Street

Wall

Peter P.

Post

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

Edw. R. O'Kane

1217

No.

Yamaichi Securities

& Exploration,

Bay Mining

Green

Ltd.—Analysis—De Pontet

and

Jr. and Thomas O'Kane.

Company—Analysis—Coburn & MiddleStreet, Hartford 1, Conn.

McElnea Director

M. Oliver & Company

William H. McElnea, Jr., a

brook, Incorporated, 100 Trumbull

analysis—Ralph B. Leonard &
Company, Inc., 25 Broad Street, New York 4, N. Y.

Life Insurance stocks—20-year

oil Limited— Analysis —C.

Imperial

Policy and Its Effect Upon the Banking System,
(Canada)—Study—E. M. Saunders Limited, Victory
Building, Toronto 1, Ont., Canada.

Monetary
1955-56

West

821

Limited,

Pipe Line Company.

investment

Mountain Oil

elected to the Board of

how they operate and how to
them—Booklet—Lee Higginson Corporation, 40 Wall
Street, New York 5, N. Y.

Mutual Funds—What they are;

Wilder

Company,
Newark, N. J.

Sutro Bros. &

up-to-date com¬

and

National
York

Pacific

particular reference to British Columbia
Consolidated Mining & Smelting Co.,
Bloedel Limited, Pacific Petroleums Ltd. and

Adelaide

c a

Northwest Power

Seattle 4, Wash.

tion

Chemi-

Inc., 40 Exchange Place, New York 5, N. Y.
■

■

Plomb

comparison—Stroud

Tool

Company

—

•

Calir
with

-Chemical

is the world's largest
producer of D.D.T. Van Alstyne,
Noel & Co. were the bankers in
the recent financing of this com¬

Company,

Report —Kidder, Peabody & Co., 17

' Wall Street, New York 5, N. Y. Also available is a memoran¬
dum on Arkansas-Missouri Power Co.
*

pany.

Secretary, Rich-,

Richfield Oil Corporation—Annual report

Stauffer

Mackie,

Corpora¬

owned

r. ;

fornia, jointly

Report'— Bozell & Jacobs, Inc.,

—

W. H. McElnea, Jr.

Ltd.—Ross, Knowles & Co., Ltd., 25

Stocks—Quarterly

nufacturer

through Mon¬

Turnpike—Progress report—De Leuw, Cather &

Smith Tower,

&
Company, Incorporated, 123 South Broad Street, Philadel¬
phia 9, Pa.
/
Bank

specialty
organic chemi c a 1 s,
and

Company—Analysis—Edward L. Burton

Pacific Uranium Mines Co.—Circular—Singer, Bean &

Street, West, Toronto, Ont.,; Canada.

Philadelphia

Company, Farm Bureau Building, Oklahoma City 5, Okla.
Pacific

Ltd.,

Powell River Company

m a

trose

Northeasten

with

MacMillan

—

Company, 160 South Main Street, Salt Lake City 1, Utah.
Also available is an analysis of Equity Oil.

.......

Power, Corp.,

Montrose

Study and appraisal

—

Province—Discussion of economic situation in British

Columbia

Company

Co., 120 Broadway, New York 5, N. Y.

Mountain Fuel Supply

market performance over a 13-year period —
Quotation Bureau, Incj, 46 Front Street, New

4, N. Y.

Railroad

Pacific

Missouri

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

Company—Analysis—Straus, Blosser &

diver sified

—Laird, Bissell & Meeds, 120 Broadway, New York 5, N. Y.
Over-the-Counter Index—Folder showing

Gas

McDowell, 39 South La Salle Street, Chicago 3, 111.

City Bank Stocks—Quarterly analysis of 13 stocks

New York

Natural

Montrose

Chemical

Building, Charlotte 2, N. C.

buy

Missouri

Directors

Co.—Memorandum—R. S. Dickson & Co.,

Insurance

been

has

bankers,
of

Missouri

part¬

Alstyne, Noel & Co.,

of Van

ner

C.,

1, B.

Vancouver

Street,

Hastings

Also available is an analysis of Trans

Canada.

by his wife Mil¬

daughter, Mrs. Joan Eurell,
two brothers, John J. O'Kane,

dred,

Co., Inc., 40 Wall Street, New York 5, N. Y.

Ilycon Manufacturing

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

He is survived

17, N. Y.

porated, 300 Park Avenue, New York

King

& Co. Incor¬

Company—Analysis—Evans

Steel

City

Granite

information

Motors

He was

member

of the American Legion.

N. Y.

Japanese Stocks—Current

Reynolds & Co., 120

Capsule—Report—General Investing Corporation, 80
Street, New York 5, N. Y.
<

McDermott & Co.,

40 Exchange Place,

Street, West, Toronto 1, Ont., Canada and
New York 5,

—

National Bank of Franklin

General

study of primary iron

industry

Report

Square—Analysis—Blair
Co., Incorporated, 44 Wall Street, New York 5, N. Y.

in Canada with particular reference to
Algoma Steel Corporation, Dominion Foundries and Steel,
Dominion Steel and Coal Corporation and the Steel Company
steel

and

—

John

years.

Company

Porter

age.

been'

O'Kane, Jr. &
Co. for thirty

Industries.

Franklin

Bruns,

—

Co., 52 Wall Street, New York 5, N. Y.

Steel Industry—Comprehensive

Iron &

—

with

Broadway, New York 5, N.

& Co.,

Upham

Review—Late

Energy

Fischer

had

Mr.

30.

associated

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

Atomic

available is a report on Orra-

suddenly

was

years

Co.—Data—Bache & Co., 36 Wall Street, New
5, N. Y. Also in the same bulletin is a brief report on

Dresser

status of atomic industry as of

City, passed away
office on April

his

O'Kane

Carpet

York
Atomic Commentary—Current

York 6, N. Y.

New York 6, N. Y. Also

way,

partner in

& Co., New

O'Kane, Jr.

John
York

Co.—Memorandum—S. D. Fuller & Co., 39 Broad¬

Federal Oil

dio

— Seligman, Lubetkin
& Co.,
N. Y.

O'Kane,

Edward

Bulletin

61 Broadway, New

pany,

Company—Analysis—E. F. Hutton & Com¬

El Paso Natural Gas

understood that the firms mentioned will be pleased
send interested parties the following literature:

—

Street, New York 5,

30 Pine

Recommendations & Literature
It is

Corporation

Eastern

' "

Boston 10, Mass.

eral Street,

Edward R. O'Kane

Inc.—Resume—May & Gannon, Inc., 140 Fed¬

Craig Systems,

Public Utility Common Stocks

field Oil

Corporation, 555 South Flower Street, Los Angeles
17, Calif.
^
: ' — • ■■■/>.,•
V- /-

Comparative figures — G. A.
Inc., 70 Pine Street, New York 5, N. Y.

Saxton & Co.,

—

Cement- Co.-^-New

Riverside

Shift of Institutional

Buying—Discussion—Park, Ryan, Inc., 70
Pine Street, New York 5, N. Y.

Office

Square, Boston 9, Mass.

Signed* Steel

Strapping Co.

views—Lerner

—

'J ■">

Memorandum

—

:; :

Enka

Corporation

—

Data

11 Wall Street, New York 5 N. Y.

data

are

California Electric

—

Thomson & McKinnon,

Also in the

Power, Fairchild Engine

and

Shamrock

Oil &

York
.

5, N. Y. In the same issue are a brief analysis of United
list of 40 interesting low priced stocks. Alsor
is
a
comprehensive tabulation of 40 Railroad

American Hospital Supply

Corporation—Report—Loewi & Co.
Incorporated, 225 East Mason Street, Milwaukee 2, Wis. Also
available

Stocks.

II.

analyses of Northwest Engineering Company,

are

120

_•

Fiber

Thompson

Glass

■

•

-v

Mr.
a

Trans

New York 5, N. Y.
analysis of Celotex Corporation.

Empire Oils Ltd.

Memorandum

—

Also available
'. \

Trico Products

Chesapeake

Ohio

Railroad

—

Analysis

—

Meeds, 120 Broadway, New York 5, N. Y.
an analysis of Panellit, Inc.

Union

Authority—Report—John Nuveen & Co., 135
Street, Chicago 3, 111.

U.
5

Thermo

„

and

Clients

Industry Which
National

Associated Transport

Jarret, Inc.

•

Hauled

—

Analysis

and

Ferro Corporation.
Air

Brake

2400

Members

—

of
Trade
Orleans Cotton Exchange
exchanges

other

Chicago

YORK 4, N. Y.
Pittsburgh

Detroit

•

Miami Beach

Hollywood, Pla.

•

Coral Gables

Beverly Hills, Cal.

Geneva, Switzerland

Co.—Memorandum—Walston
•

•v.

Exchange Bldg.

Y* Cotton

; NEW

New

Amsterdam, Holland

& Co.,

Analyses

LAMBORN & CO., Inc.
WALL

MOUNTAIN FUEL SUPPLY
•

STREET

NEW YORK 5, N. Y.

•

Cooper-

sugar

McLean Trucking Co.

EQUITY OIL

U. S. Truck Lines

Security

Inc.

Exchange,

Board

and

Tobey & Kirk, 52 Wall

120 Broadway, New York 5, N. Y.

Troster, Singer *& Co.
HA

Exchange

York

Chicago

Depart¬

Total

Continental Transportation Lines, Inc.

•

Cotton

Dealers

Association

Trinity Place, New York 6, N. Y.

(

Exchange

Position:

Interstate Motor Freight System

Ryder Systems

Trading

Street, New York 4, N. Y.

Freight In 1955

Trade

Exchange

Ill Broadway, New York 6, N. Y.

DEPENDABLE MARKETS

20%

Stock

Commodity
<

Development

Beaver

in:

Trucking Stocks
Fast-Growing

Company—Analysis-^-H. Hentz & Co.,
Also available is an
analysis of Kearney & Trecker Corporation, and a memoran¬

Western
f

Westinghouse

Suggest You Can Profitably Interest Yourselves

Control—Analysis—Unlisted

S. Tobacco Company

dum

New

Stock

York

American

Street, New York 5, N. Y.

South La Salle

DEALERS

Company of California—Analysis—Dean Witter &

ment, Ira Haupt & Co.,

Milwaukee, St. Paul & Pacific—Analysis—Kneeland!
Co., Board of Trade Building, Chicago 4, 111.

Chicago Transit

>New.

Inc.^115

New

Laird, Bissell &
Also available is

Members

—

Co., 45 Montgomery Street, San Francisco 6, Calif.

Chicago,
&

Oil

1856

H. Hentz & Co.

Reich & Co., 39

—

Analysis — Strauss, Ginberg & Co.,
Broadway, New York 6, N. Y. '
"".'V' ' -

Co.,

investment firm.

Established

Broadway, New York 5, N. Y.

Steel Castings Co.—Analysis—Amott, Baker
Incorporated, 150 Broadway, New York 38, N. Y. !

Neergaard, Miller &

Co.. New York

Beneficial Standard Life Insurance Company—Analysis—Fewel
& Co., 453 South Spring Street, Los Angeles 13, Calif.

Buckeye

Herdeg was for many years

partner of

American

Pipe & Construction Co.—Memorandum—Hemphill,
Noyes & Co., 15 Broad Street, New York 5, N. Y.
*

announced

Co.—Analysis—Shearson, Ham-

mill & Co., 14 Wall Street,

James Manufacturing Co. and Ranco Incorporated.

■-

Broadway,

has

Gas Corp. and a

Gas Corporation.

available

The New York Stock Exchange
firm of Montgomery, Scott & Coi,
-

New York City,
the
association
<with the firm of Royal F. Herdeg.

'Gleamings"—Francis I. da Pont & Co., 1 Wall Street, New

Airplane, General Fireproofing, National Distillers Products

Products Inc.—Analysis in current issue of

Sylvania Electric

bulletin

same

Herdeg Joins

Montgomery, Scolt

McCormick &

Co., 231 South La Salle Street, Chicago 4, 111,*
American

R. F.

Post

;

Co.,

Edward L. Burton & Co.
NY

376

Established 1899

DEMPSEY-TECEIil & CO,

160 S.

Main, Salt Lake City, Utah

Raw

—

Refined

—

Liquid

Exports—Imports—Futures

DIgby 4-2727

Volume 183

Number 5530... The Commercial and Financial Chronicle

(2137)
chemical industry when he said:
years corporate research budgets
"Our growth has been over¬ have increased sharply, both in
whelmingly the :result of internal absolute amount and as a
per¬
development through
research." centage of Gross National Prod¬

And Development

Budgets

About 27%

tional

additions to the Du Pont product
lines in the postwar period.

velopment

Even
a

prediction that research expenditures

can

single

development

product

laboratories

expected to increase 50% by 1965, Mr. Smith reviews the
growing role of research; the research done to aid the inves-

the

effect

upon

the

exert

can

research

survey

spectacular example was demon¬
strated by the Schering Corpo¬
ration
last
year.
In
February

1955,

tor's evaluation of

■

;

a corporation's research
activities, and the
results of 400 corporations in terms of the ratio of sales
private and government financed research. Recognizes our

growing economy's need for
aside

for future research and development

reserves

such activities

continue

can

even

introduced

the

anti-arthritic

scientists and engineers than

forthcoming* and the necessity of allowing industry to

are

Schering

drug called MetiPrimarily because of the

corten.

total

1953,

two-thirds

research

costs

the

enthusiastic reception given Meti,

during bad times.

corten, Schering's sales
doubled in

1955 and

creased

than

earnings in-

five-fold.

Its

stock

their govern¬

few

told

volved in

year.

This figure of $3.7 billion includes
$1.2 billion in projects financed

some

very interesting.
Obviously the
question of semantics becomes in¬

nation's

that

unable

ever, the response was most grati¬
fying and the results, I believe,

repre¬

the compilation of resuits, since no two companies are
likely to define research and de¬
velopment in the same terms or

by the Federal Government. In
the years just before World War to
report figures on the same
II
corporate
research
To compensate for these
expendi¬ •basis.
tures came to less than half a variations
and to protect the iden¬
billion dollars.
*
; '
.

set

that

de¬

were

idea what they spent
research. On the whole, how¬

totaled

and

contracts.

they had

shows

and

expenditures

billion

sented

Foundation

industry's research

$3.7

profound
corporation.
A

that

Science

Others

because Of the classified

nature
ment

The latest survey of the Na¬

$5 hundred million resulted from

By WINTHROP H. SMITH*

Referring to

uct.

over

Managing Partner, Merrill Lynch, Pierce, Fenner & Beane

;

of 1955 sales of

dential basis.
to do

Of course, much
research spending

of the rise in

during the

years was necessitated

mands

war

by the de¬

tity of those corporations which
provided data on a confidential

basis, the results

^industry

presented by

are

groups.

our

fighting forces for
The
figures in Table I are
V
capital gains climbed from 22 to 58.
improved weapons or encouraged'
grouped in five columns.
The
Similarly,: in late 1948 Polariod by high
^ which has not felt the impact of taxes and other taxes were rela-corporate income taxes. first column to
the far left indi¬
science
and
technology.' Steam' tively insignificant.
So the in-. Corporation introduced the first However, since the end of the
cates the number of
:
companies in
engines, telephones, air condition- vestor of yesteryear looked pri- model of its Land Camera. The war and since the
expiration of each
industry which answered our
ers,
X-r ays- y
■■
marily for securities which would spectacular success of this instru¬ the excess profits
tax, corporate survey. The second column
from
and
wonder
ment caused Polaroid's sales to
provide him with large profits
research budgets have increased
the left, showing the total sales
increase more than 15'times and
over
a
drugs are but
relatively short
There is

phase of daily life

days there

were

•

space

;

few

:
•

;

•

Science

has

countless

modern '

n e

and

conveniences;
it

new

u s-

and mil¬

tries

lions

jobs;

Winthrop

H. Smith

has boosted

the

standard

the

likely to place value

efforts

companies

make

Foundation

highs and perpetuate themselves and rebrought huge dividends in human search they undertake to generate
welfare; it is vital to national se- further growth.. :
; curity.
; r
Over the years, the security
Biggest scientific strides have owner has come to recognize the
been made since World War II, immense contribution which rewhich gave America nuclear fis- search and product development
sion
radar, proximity fuses and can make to the well-being of a
:
rockets. Since then scientific re- company and thus to the value of
search has become big business, his
investment. I refer to reAs a result the nation currently search, done by the government,
spends about $4 billion a year on university
and foundations or
research. A study by the United industry, which has led to the
States Department of Labor many new
and better products
shows that in January 1952 some we enjoy today. While generally
two
thousand
corporations em- We tend to think of these creaployed ninety-six thousand re- tions in terms of their effect on
search engineers and scientists, our standard of living, the invesEach two researchers were "sup- f°r> fortunate enough to be an
ported" by three other technical owner of corporations in the foreworkers.
The combined total is front of these development, apunquesticnably higher today since Pf®013*6*5 their significance in a
not all companies were included different way.
of

living

new

well-known

during

the

chemical

thirties

producers
and

early
forties. To explain this situation
in part, he pointed out the com¬
pany had no research
activities
then.

However, to the

his

administration,
has
since sharply

research

budgets.

credit

*
v

most

"•

And

such

totaled

twenty-two "thousand "engineers
each

graduated

now

year.

Gradually, everybody — the government, private industry, consumers—and, of course, investors
too—has come to recognize the
importance of research.
In

fact, industrial research is
important to the investor

most

new^narkets

velop

markets

help

reduce

costs.

portance of research.
the

toward

the

innumerable

At the

same

attitude of management

research,

chemical

typified by
just men¬

company

tioned, has also changed.
Research

you

y®ars outstanding opportunmes f°r capital appreciation
nave developed among the dynamic research-minded compames> °f s®"^a^e<f
growth cornpanies.
The term "growth

the

past

This announcement is neither

400

much emphasis

35 companieS)

would

surely have been taken aback. In
those

spending
was
very
modest.
the annual reports

corporate

days

research

What is more,
of many

companies provided only
fnformation.
In
many

meager

data

even

cases,

sales

and

pertinent elements of the income
account were lacking, never mind

which

have

research and de-

budgets,"

velopment

and

And

rent

some

research

try,

price
*

was

buy

investor
of the
apparently
often
a

symbol

and

by Mr. Smith at the NaResearch
Conference,
Foundation of Illinois

Industrial

Armour

institute

Research
of

leader

the

research—both

standpoint

total

Surveyed

light

the

activities of

cur¬

indus¬

point of reseach
sales.
our

All

survey

contracts

held

and

some government

about

75%

did

Technology,

April

is,

offer to sell

nor a

solicitation of an offer to buy these securities.

made only by the Prospectus.

Par Value $5 Per Shar#

Price

$19

per

Copies of the Prospectus may be obtained in
writers, including the undersigned,

1956.

3-M

LEHMAN BROTHERS

p^ucts
Mr.

Crawford

Prpoj^pnt

H.
r»,,

State only from such of the several Underlawfully offer the securities in such State.

any

may

the result of

COmPany bas in a very few years
*rom the producer of a
fVJ.
m
sand PaPer — to a

than 1,000
Greenewalt

olt

•

cSiaent Ol JL. 1, Du Pont, might
have been speaking for the entire

April 27, 1956.

the

of these figures repre¬
ever,
two chemical companies,
Unfortunately, because of
neither among the largest in the
long-standing policy, some corpo-.
reported research exrations polled would not supply industry,
these figures even on a confi¬
Continued on page 32

Largely

in either of these industries. How¬

each

Class A Common Shares

vestor interest in such firms, we
recently published a booklet on
*
growth stocks. Circulation
Quickly passed the half-million
Of course, there are many
?
*
e,n * requirements for a
growth stock. However, an im¬
P°rtant one is active research,

answering

Corporation

from

research

per cent

companies

800,000 Shares

10 gr°W

its emphasis 6n research, the

the ticker tape. In those

address

tional

of Gross

development budgif such
figures

typical
to

recently
completed 'a research done
by these firms was
survey of almost 400 corporations.
"financed by the government.
Each was asked: (1) "In the 1955
The figures for the chemical and
fiscal year, how much did you
drug industries also show heavy
spend for research and develop¬
emphasis on research.
Research
ment excluding government-spon¬
and development expenditures as
sored
contracts
and
including
a
per cent of sales did not vary
government-sponsored contracts?"
and (2) "What percentage of sales greatly from company to company

such

Because of the tremendous

example.

twenties

and

This

of these

on some

even

Change in Investors

willing

billion

A few comments

figures are perhaps in order. As
might be expected, the aircraft
figures indicate the industry is

...

The

1955

expenditures and from the stand¬

Corporations

demon-

To be specific, I should like to
remind you of a few of the
Horatio Alger stories of corporate
were
published as frequently as history which have resulted from
they as are today, more likely successful research programs. The
than not they would have been Minnesota Mining and Manufacoverlooked entirely.
turing Company
is a superb
research

more.

than

To cast

The offer is

neve^heardVem
Sbed taThose term30 flZ

piacecj

25 or

little

5%.

sent?"

Expenditures

know,

men

C°nceI,t of Growth Companies

KMe-S^e

investor Iooks at

ets.

and

prod! »

for old

other examples, the investor can¬
not help but appreciate the im¬
tfme

least
a

"improved" products for" afl ^esto^and "teSfeHL?ysTs
and better, techniques to

hots',

for

has

these

expenditures

probably
equal to

cer¬

regained the
pace of the growing chemical in¬
dustry.. '
;
■ '%V
With

not

are

the company National Product.
increased its

extent, as a result of the de¬
velopment of new products in the
it

1953

However, the

familiar with the field esti¬

mate

tain

laboratory,

for

yet available.

are

sharply./The trend is

created

has

•

provided

cessities

even

This

I research.
*

of
these
firms,; will give you
species — you would losses have been converted to most
encouraging and, I believe, some idea of the size of
the cor¬
aptl/ call him a speculator profits. - In this case, too, the it reflects more than
anything porations
reporting.- The column
—is by no means extincttoday.- stockholders have reaped substan¬ else management's realization that
in the center lists the research
In fact he plays a vital and con¬ tial benefits. ; ■
.'/■
;/
intelligent and intensive research, and
development expenditures of
structive
role
in our securities
To look at the other side of the is an important factor which
may these
corporations.
The
next
markets.
coin for a
moment, failure to con¬ distinguish a company from its column shows these
expenditures
However, he is by far outnum¬ duct an adequate research program competitors and enable it to do
expressed as a per cent of sales.
bered by the investor (whether
may
have
unfavorably
effects. better than its industry.
And finally the column to the far
an individual or
institution) who About a year ago, the President
Unfortunately, figures on cor¬ right gives the percentage of re¬
looks for growing earning
of
power,
one; of
A m e r ic a's leading porate research
spending for 1954 search and development paid for
higher dividends and moderate chemical
^corporations
acknowl¬ and 1955 as detailed as those
pro¬ by the government.
This figure
appreciation
of
his
investment edged that his
company had failed vided
by the National Science has been rounded to the nearest
over a longer period of time.
He to grow as
rapidly as many other

time;

results

scientific

J. C. BRADFORD & CO.

The Commercial and Financial Chronicle

(2133)

from

bank

credit

would

bility in no way connected with
what they are doing at the mo¬

page

Achievement of Social Aims

creation of additional

ment.

Continued

which

uct

Over-Expansion

Without Credit

ply

Gross National Prod¬
reached a new high—up 7 V2 %:
-

reasonably stable price level we
are
prepared to render a most

re¬

still sat¬

served for the aged and

erosion

dollar, then the protective
services we have set out to render
price level.
Inflation is guilty of grave in¬

the rise in the

And what level of bene¬
fits will be most helpful in our

are

and are

ruthless and discriminatory tax on

few

many

face us,

some

benefits.
Any
marked or long continued infla¬
tion causes people to lose confi¬
dence
in their government and
Undermines economic and politi¬
cal institutions.
It is therefore

In an at¬

exploratory work.
I hope
valuable light may come

urge

ticularly

liberalization of benefits •people,
toward
under the Act until we know far
than

do now about

emphatically urge this
restraint at this time when in the
Senate
consideration is being
would

cannot convince myself
that such a creeping inflation is
inevitable

either

Economists

some

desirable.

most

that

out

point

can

the

prosperous

periods of American history have
coincided with stable or even de-

permanent disability

Both
steps would be very unwise in
my judgment.
The objections to
aged 50 or more.

for those

omy.

given to the House bill reducing
the age of retirement for women
to 62 and introducing a
benefit
for total and

have put

who

some

rising price level is to be expected
as
a
normal result of our econ¬

economy.

are

forward the idea that a constantly

for our

consequences

long-range

influence

our

stable dollar.

There

the

all of us, but par¬
those who are en¬
the savings of the

exert

further

upon

with

trusted

Congress to attempt no

our

Security

incumbent upon

would

But in any event I

from it.

arising from

plans, annuities

Social

throw some objective
on
this puzzling prospect,
the National Bureau of Economic
Research
has been asked to do
tempt
light

payments

and in¬
surance policies.
It robs the aged
of part of the assistance which
they have expected from their

fundamental to the coun¬

try's economic future.

fixed

pension

the

with fixed incomes, and

all those

to inflation?

It acts as a

justice to our people.

maintain stable
prices?
Would the giving of a
disproportionate share of national
production to social security ben¬
to

These

in proportion to

will be nullified

quate?

economic questions which

purchasing power-

the

equipment, will incentives to save
and provide such funds be ade¬

eficiaries lead

the

1 i

prices.
Furthermore,
creeping inflation can hardly be
held under control, for it tends to
them have been presented to the
feed upon itself and eventually
Senate Finance Committee by a
develop- into galloping inflation.
'joint committee of the life insur¬
I emphasize the responsibility of
ance business.
I will not go into
insurance men, particularly life
-detail on this occasion, especially
insurance men, to urge the objec¬
as I wish to take time to call your
tive of a stable price level, be¬
attention

to another

fundamental

cause

question.

nomic
are

not

does

future

enced,

political pressures favoring
are
strong. During the

insurance

the

effective job in

will be largely influ¬

I have said, by the eco¬

atmosphere

which

If given

to work.

permitted

the pressures have been
evident. Almost everyone
talk with is against inflation in

past

Consequences of Inflation

the

inflation

Whether

business

year

quite
I

principle but most people regard
it

something to

the

worry

Somehow

future.

about in

they

sider it the other man's

con¬

responsi-^

are

eral

vavia J. Harris
Fred W. Fairman, jr.
should
concern
itself continuously with/ Co., Inc., as partners of Bache &
the
purchasing J power
of
the Co., in Chicago, and the acquisi¬

Yet

per¬

development
than

credit rather
the investment of sav¬

upon

ings. In

far

it has involved

credit from the commercial banks,
it has resulted in an increase in
the

supply.

money

commercial

banks

loaned

For

up.

Most
are

the

now

borrowing
heavily from the Federal Reserve
as a means of keeping in loanable

Sound Canadian Investments
United States investors

quality

can

buy through

Canadian securities which

us many

Our

interest

high

•

tion

A
in

Correspondence Department set
securities by mail.

Private

teletype service to

Canada and

our

offices

•

♦ •

bonds have dropped in consequence
to a
point where capital ,losses

deal

arrest

may

thrust in

upward

further

and

dollar.

across

done

about

can

Inquiries from investors
are

the price level
and

The

the

should,, be

it?

Dollar

inflation

courage and
the
danger,

has been

LIMITED

TORONTO, CANADA

Calgary

Kitchener

Winnipeg

Quebec

London

Hamilton

Sherbrooke

Vancouver

New York

not

the

this

Federal

Reserve

stand-by power to control
directly the terms of consumer
and
residential
mortgage credit
rather than having to rely on the
indirect effect of general credit
control with .its tightening of all
interest rates? If the Reserve Sys¬
tem
is
granted
such
stand-by
use
as
they
deem
they will be ablg, to
with any future serious ex¬

powers,

pansion in credit.
conclusion

that

reiterate

we can

off

the

private in¬

Robert

continue

John
of

partner-

commodity

ac¬

New

Stock

Midwest

and

xorK

and all leading secu¬
commodity exchanges,
of the country's principal

Exchanges
rities
is

and

one

brokerage
is

and

to
can

firms

investment

and

the

one

oldest

com¬

Fair-

La Salle Street.

has been

man, Harris & Co.* Inc.,

the

primarily an underwriting and
distributing
organization,
with

stable dollar.

offices

political

terms of credit and

over-

pressures

them.. Action will be
swiftly taken if deflation should
vantage to

can

confident

Emporia, Hutchinson,
City, Salina and Wichita,

addition

Kansas,- in

Chicago.

Thus, the acquisition of the Fair-

offices

Harris

man,

Bache

enable

will

Co. to offer even wider

facilities.

investment

of Chi¬

Mr. Fairman is a native

and after graduation from
Yale joined the firm founded by
his father. From 1941 to 1943 he

cago,

with

served

Board

broad goal of eco¬
nomic policy adopted by the Con¬
The. only

Garden

abundance

of credit will be of immediate ad¬

brother,

President

tivities of Bache's Chicago offices.
Bache & Co., members of the

from those who believe that easier

occur.

the

within

prevent future

many

Street,

-company.

in-charge

expansion of credit.
That is no
easy problem as it involves fight¬

ing

late
as

will

panies
like

partner

Salle

Corporation,

Raclin

will succeed in stabilizing the dol¬
lar if

his

vestment

social aims

only

framework of

should

our

achieved

Ratcliffe,

Miami

necessary,
cope

resident

Fairman, Harris
office.
withdrawing from
partnership in the Bache firm to

Why

way?

Fair-

Mr. Ratcliffe is

control

monetary

Mr.

former

have

in
to

1943

Production

War

the

Washington,
1946

from

and
on

was

active

is that contained in the Em¬

duty with the Atlantic Fleet. He
is a director of Van Dorn Iron

ployment Act of 1946. You will
recall
that,
with qualifications,

Works, Tekoil Corporation, Mount
Vernon Corp. and Calvert Litho¬

gress

the Congress

declared it to be the
continuing responsibility of the
Federal
Government to use all
practicable
maximum

"to

means

employment,

be,

tjie struggle against inflation if
directive

this

were

amended

it'clearly explicit that the
goal
oi
maximum
employment
and production is to be achieved
make

within the framework of

Company.

was

Chairman of the Chicago Associa¬

tion

Stock

Firms

Exchange

last year, and is a member of both
produc-' the New York and Midwest Stock

purchasing power." This
interpreted in various
ways, and at times one objective
might be in opposition to another.
It would certainly strengthen the
hands of our monetary authorities

could

graphing

promote

tion and

stable

recommend to the Con¬

consideration of such a clari¬
fying and beneficial description of
our national objectives.

and

ready. to

take

Exchanges.
Mr.

Harris

also

native

Chicago and graduated in
ness
Administration at the

Busi¬
Uni¬

He began his
La Salle Street career with Sills,
TroxelL & Minton, a predecessor
firm of
Fairman, Harris & Co.
He is Chairman of the Central
States Group of the Investment
Bankers Association of America
and a director of Liberty Loan
versity of Chicago.

Corporation, Colonial Acceptance
Corporation and Jahn & Oilier

Engraving Company.

;

Treasury to reach

(Special to The Financial Chronicle)

balanced

With Paine, Webber ;

Joins Hutton Staff

heartening illustration
the persistent efforts

LOS ANGELES,

■

Calif.—Charles!

budget even to the point of resist¬
ing popular but ill-timed demands

Fleming is now with E. F.
Hutton & Co., 623 South Spring

for tax reduction. We also

can

Street.

„

LCJS ANGELES, Calif.—William
nowT co™?®cted

Federal

confidence
Board's

through

the

vigilance

watching

feel

and

the

effort to

discourage borrow¬

ing by the banks
expansion based

and
on

contain

inflationary

bank credit. A further increase in

Paine, Webber, Jackson & Curtis,
626 South Spring Street.

With Marache, Dofflemyre

F. I. du Pont Adds

(Special to The Financial Chronicle)

events of the past year. Five times

they have raised the discount rate
Ottawa

Bache

competence, alive to

courage

Montreal

gress

bulwark "against
public
officials
of

Reserve

Investment Dealers Since 1921

Ratcliffe

direct underwriting ac¬
new
business devel¬

South

209

much

McLeod,Young,Weir & Company
STREET WEST,

Depreciation

only real

action.

invited.

should

dollar.

the

KING

New York.

Membership in The Investment Dealers* Associa¬
tion of Canada, and through our affiliate, membe.rship in leading Stock Exchanges in Canada.

well expect

depreciation

What

Arrest

in¬

discourage further selling.
Many
of
the
typical/storm
signals of inflation are flying and
unless something can be done to

Department with up-to-date informa¬

major Canadian companies.

cash,

tend to

complete investment service to United States investors
A Research

gain

ing Federal bonds. Prices of such

includes:
V

rates.

stitutional lenders-have been sell¬

very sound
attractive growth

possibilities.

are

trying to take care of only their
regular customers and at higher

make

investments. Some of these also have

now

an¬

will

and

opments

that.

months they have been

funds. Commercial banks

hampered

the
J
fully

several

past

was

can

will

man

expansive

depended

has

expansion

great

this

Harris

Salle Street.

succeed

to consumers wage
form of higher

that

How

South

the

partner-in-charge

when the Federal Reserve System

prices.
fact

Myron

Fairman,

Co.

Mr.

that there is adequate

consistent

and

management still seems to find it

The

time the Reserve Board

be claimed

prices. Some oil
companies have announced that
higher prices are necessary for
refined oil products to cover their
increasing cost structure including
expansion
of
plants.
Industrial

spectacle

advocating restraint.

pass on

sad

very

sharp rise in steel
the near future.. That
exert
a
powerful upward

today.

succeed

witnessed

tivities

increases

winter

last

offices

Bache

vanishing point and extending the
payment period to 30 years at the

pressure on many

easy

the

Chicago, with headquarters at 135

goods boom with home construc¬
tion still running at high levels.
Indications
have
already
been

will

nounced

the Federal
Housing Administration reducing
down-payments on houses to the

the

Plans for 1956 indicate a capital

tion

rapidly

$3 billion.

prices

and

Harris

capital formation by nearly

given

must

Increase Scope of Federal

exceeded

spending

which

dollar.

thirds of the increase in consumer

Total

mass

economics,

Reserve

agency

$36 billion. Automobile paper ac¬
counted
for $4
billion or two-

new

well

of credit control. The Fed-'
System is the one

powers

represented
more than normal growth; It was
achieved
by going heavily into
debt.
Total
mortgage debt
in¬
creased from $113 to $130 billion,
or
15%. $13 billion of this 'in¬
crease
in mortgage debt was on
non-farm
dwellings.
Consumer
dpbt increased 20%, from $30 to

debt.

the agency to possess and exercise

1955

formance

time

decline

Reserve Control

the

but

much

one

dealing with questions of

Credit,

course

country,

Too
any

serious

Federal Reserve System should be

lines. Indices of
the
general price level showed
relative
stability,
although declines in agricultural prices off¬
set a rather yeasty situation in
other parts of the economy.

sentiment.

start

changes

j: It is most appropriate that the

growing

are

joyed prosperity with the excep¬
tion
of
agriculture and a few

Expansion Based Upon
Not Savings

mechanism

balance.

applied at

psychology

segments of the economy en¬

closely

Our

business activity just as too easy
credit may
beget inflation.
We

materials
All

sensitive

might

"over-employment." Some
were
in short supply.

delicate

business

employed; a condition character¬
ized

financial

pressure

number of un¬

tions exceeded the

Fairman & Harris

sup¬

services.

labor

and

highly

price

rising

largely dependent on contin¬
uing investment in new plant and

Our
works

Conversely, if we have a ployed. In fact it has been esti¬
level with further- mated that unfilled labor requisi¬

people.

.are

attempts

service to the American

effective

isfy the rewards expected or deimanded by active workers? Since
-increases in national productivity

and

old

stretch prices.

produced
Corporate prof¬
its after taxes reached $22 billion.
Our labor forces were fully em¬
before.

ever

compete".with

goods

Bache & Go. Admits

dollars

relatively fixed

the

mean

new

CHICAGO, 111.—Admittance of
supply are
already stretched. Any further in¬ Fred W. Fairman, Jr. and David
J. Harris, of
crease
in
demand
could
Fairman, Harris &
only

Housing starts were at the annual
rate * of 1.3 million.
More auto¬
than

materials

mobiles and trucks were

productivity

.increased

would

dollars for

1955 produced astound¬

The year

ing results.

now

Thursday, May 3, 1956

...

PASADENA,

LOS ANGELES, Calif. —Byron
A. Curl,

Jr. has" become affiliated

Dofflemyre & Co.,
Spring Street. He was

with Marache,
634

South

formerly with J. Logan & Co.

Calif.—Robert

Elliott has been added to the staff
of

Francis

East

Green

I. du

Pont

Street.

Co., 723
was

merly with J. Logan & Co.

for¬

Volume 183

Number 5530

The Commercial and Financial Chronicle

...

(2139)
such

to
offset
cyclical and
changes in velocity, and
thereby attempt to maintain a

Monetary and Credit Policies
Towards Strength and Weakness

stable,
although
spending stream.

tight

is justified in the

money

current economic climate.

Dr.

now

;

absence

Introduction
„

Before attempting to
evaluate
the potential strength or weakness
of credit in our economy, it would

desirable

appear

briefly
function

Some

under

us,

the

money

Puritan

philosophical

sometimes feel

tions when

recognize that
debt continues

expand

sectors

most

of the economy each

There

year.

is, of course, no necessary inconsistency between the desire to
encourage savings and at the same
time encourage new debt creation.

current

does

not

that

all

herent

ownership

equity
prefer

investment

Many savers
their excess funds

l?lace

^xed
the other

1/lvestments- Pn

hand, those consuming

?-r ^Pendingtheir excess of income
in
find it to
advantage, particularly under current tax laws,
toreiy to acon^derableextenton

debt

flotation

rather

than

sale

equity securities. Therefore, basic-

creation is one of thq

institutional means developed for
transferring
from

-purchasing
to

savers

current

power

dissavers.

stage

the

development

frfe enterprise system, it is

artivitv

and

hence

purchasing
control

power,

over

resources,

maintain

demand

fully

sufficient

keep

our

total

resources

employed. Insufficient debt

creation and

saving,

investment

lead,

offset

has been the
in the past, to depression. On

case

can

the other

that

hand, it is equally valid

creation

excessive

•

pur-

chasing

power through too much
expansion, particularly bankheld debt, can result in inflation

debt

and

should

guarded against.

•

„

well

that not

recognize

all

types of debt have the same
significance. In particular, changes
in

bank-held

changes

debt

result

hence

deposits and

the money supply. The particular

significance of the money supply
(which consists largely of liabilities of banks) is derived from the
close
its

historical

relation

between

changes and changes in total
activity. Many of us be-

economic

that

growth

•

Dr. Sprinkel before the

University of Chicago Management Conierence, Chicago, 111., March 31, 1956.

during

Furthermore,

con¬

since

1951

nearly

now

flation,

the board. Increases in

across

developments

largely offset by
declines in others. It is interesting
and perhaps significant that the
only period in our recent past
when

the

was as

supply

money

low

growth

now was

1920-21,
1925-27, 1928-29, 1929-33, 1937-38,

improved

the

crease

the

Reserve

credit

and

that

sector

our

establishment

Deposit

poration

de¬

the

econ¬

the

Insurance

1934

largely

danger

bank failures

deposit

credit

our

destabilzing influences

The

omy.

mechanism

some

have been

areas

the

monetary

nated

are

and
con¬

encouraging busi¬
ness
stability with growth, there
are
other significant institutional

Despite widespread "talk" of in¬
prices
have
not
risen

prices

operation of the Federal

Federal

significant, ^factor, limiting
decUne ,in the economy,

accomplished

are

creation

have

does

™

„

the

Cor¬

elimi¬

widespread
resulting from large

withdrawals.

1931

1933, depositors made large with¬
drawals from many private banks
in
an
attempt to convert the
liabilities of private banks
(de¬
posits) into currency —a liability
of the Federal Government. Since
the adoption
of this

the recession 1953-54. Most

these

years

of recession

either years

were

not

think

that

our

the

system

ideal

amount

that

As the economy approached full monetary developments
employment in 1955, a tight mone- the cry of "gloom and

assure

tary policy

debt

adopted

was

and

has

entirely

possible,

recent

warrant

doom."

however,

creation, particularly bank-held
debt, win be generated.
Against this background of the

remained in effect up to the pres- that extremely tight money is not
ent time.-This policy has had the justified in the current economic
effect of
keeping
considerable climates It is merely my purpose

consideration

pressure

the

function

bank

posi¬

reserve

point

out

that

the

current

tions, thereby encouraging banks

low

system, I would like to consider
two
questions
relevant • to
an

to sell securities, primarily government bonds. This sale of se-

is continued for too many months,
credit conditions could result in

evaluation

curities has largely offset the
expansionary effect of increased

the

potentiality

weak spot in our econ-1
'

0my:

...

•

J■

■

able

evlder}cer do we have;

and

the

supply

money

when

rapidly,

spending
a

was
rising
reduced money suplimited
the
infla-

*ftat .tne,. Quality
of credit is piy growth
deteriorating through excessive tionary pressures resulting from
expansion of particular types of j
increased velocity of spending.
cre 1

However, in recent weeks there
has

The "Proper" Amount of Money
onl

cause

amount

development
infiati0ns

important

any

evaluation

p0rtant

had previously occurred.
asset

composition

loans and investments of all

com¬

mercial

Gov¬

banks

consisted

this

been

increased

policy

monetary

expansion

weakening of the economy.

matter

fact,

business

many

bullish

are

indicators
at

the*

that

concern

promoting

tight

the Federal Reserve should grad¬
ually shift towards neutral money
thereby
reducing
pressure
on
bank

reserves

somewhat

growth.
very

and

larger

course,

money

easy

allowing

monetary
a
switch to

would

form.

This

event

that

means
severe

system

much

are

thereby

making

banks to raise

though

this

easier

for

funds

condition

any

the

event

and

paid

wag

off

the

that

ultimate

banking
upon

trendsin

Reserve

system
tion of

to
as

reserves

be com¬

$1,000,000
5*4% Sinking Fund Subordinated Debentures Due 1966
(With Warrants to purchase 60,000 shares of Common Stock)

Population growth, and the veloc-

100,000 Shares 60c Cumulative Preferred Stock

m ^e. money ®uPP^j
of about 4% annually would havej
^een consistent with the ™ain~
tenance of
prices and full
employment. The actual growth
has yaned considerably from this
n.orm a"d .^as aveiaSed l?^ar1^
-slnce the latter part of the 19th
century In all extreme business
contractions the money supply de-

aj?

clined, and

all

(Par Value $5 per share)

Offered in Units each
Debentures

ti0n

(velocity j

and

Turnover

tends

periods of business

money

rise

during

recovery

per

share) and 25

SUBSCRIPTION PRICE—$418.75 PER UNIT
The

velocity

detachable Warrant to

shares of Preferred Stock.

minor recessions

improvements

purchase 15 shares of Common Stock at $8

the money supply grew less than
t}ie rate reqUired to offset produc-

decreases.

consisting of $250 principal amount of

(with attached thereto

Company is offering these shares for subscription by its

Common

Stockholders, subject to the terms and conditions set

forth in the

and

Prospectus.

The expiration date of the Subscrip¬

declines

during
recessions
or
depressions. In addition, there has
been

secular

decline

tion Warrants has been extended

not

keen

evident

the

business

+v.

Copy of the Prospectus

post

activity,

some

argue

•,

that

WOUld

through May 9, 1956.

the

vei0city of spending, but this has

desirable for
changes in the money Supply to be

may

be obtained from the undersigned.

GOLKIN & CO.
61

Broadway

The
any

Continued

(A Michigan Corporation)

ity
of
spending
indicate
that;
throughout modern U. S. history

credit

extend

needed.

otheri

productivity,

•

the

depend
the readiness of the Federal

STUBN1TZ GREENE CORPORATION

that it could not be repaid.

Past

squeeze

must

NEW ISSUE

band, in years of declining income
employment, more credit has
turned out to be "bad" in the

liquidity

system

pletely inappropriate at the pres¬

and

to raise

resulting from deposit with¬
drawals, it is nevertheless true

ultimate quality of credit has beeni
years
of high income and em-i
pioymjent most credit was "good";

Al¬

makes

bank

one

the trend in the business cycle. In

banking
liquid,
easier
for

needed funds.

no circumstances to be considered as an
offering
of these securities for sale, or as a solicitation of an offer to buy any
of such securities. The offering is made only by the Prospectus.

implications
fori
the quality of

the

This advertisement is under

past, but it also

squeeze

banks, the assets of the

the

and

Historically, the most im-?
factor
determining the

ernment securities. .Today nearly
40% of bank assets are in this

the

relation

has

changed for the better since the
depression years.
For example,
in 1929 only about 10% of total

be-

depressions

the

bas

credit

about

warranted

concern

money

has been severely / in¬ present, time, but, if the growth
'WnW'i hibited* Most of us would agree in the economy continues to
that this action was highly desir- slacken, it seems probable that

rpLL gPnpratjnf,
amou"lf of monev?
v

loans,

rate

J growth

sv„tprn

;

credit and money in our economic

credit

money

supply
Bank

depression.

....

Too Stringent Credit,

crucial function to perform in our

positively related with the trend

little

six
has

the

tn-

causal

♦An address by

and

that

moderated

extremely low.

addition

identical to the year-ago level and
wholesale
prices
are
up
1.7%.

du.ce Soods and services at stable
^ince ^51, the price level
has~been nearly perfectly stable
with the exception of a few
months in 1953 and 1954> the economy has been very near ful1 em~

of money. In general

use

debt

rpa1i7p

pnd that serious depressions

re¬

has

Stabilizing Influences
In

sumer

and

attempt to discour¬
age
spending in excess of the
capacity of our economy to pro-

times

has

Reserve

tinue to be

time.

stable
for
personal income

period.

\yorid War II period. Since velocis unstable and tends to be

lieve that this relation
one

months

this

Conversely,

inflationary pres¬
sures were in
evidence, the Fed¬
eral Reserve has
promoted tight

impossible in the

services

then,

and
be

made through debt creation if we
are

and

production

contribute

is the primary
danger
monetary growth should

ployment

sharp fluctuations in
supply. It should not be

whpn

with the

sense

fer

reserves

present

would

indication

policy in recent weeks. Ap¬
parently they still feel that infla¬
that

roughly

shown

money,-,

savers

willing to accept the risks in-

are

bank

the

its

when the economy was at full em¬

surprising to find that changes in
money supply are closely reiated
to
changes
in
economic

consuming less
income, is essential
if we are to accomplish economic
growth without inflation through
buiMing our caoital resources. Yet
it

industrial
mained

pansion.

the

_17U

that

money

case

society, but there is nothing auto-? y

grave reserva-

Saving,

easy

the

also

rnatic

horring and
avoiding debt,

than

encourage

has

inflationary danger. There

Federal

tion

it is less clear that it is
equally desirable when the econ¬
omy is leveling out, as appears to

tended to encourage
monetary ex¬

tradition^ of

Sprinkel

Fed's strategy

the

little

1955,

time,

the

encouraging
thrift and ab-

Pr. Beryl

when

rising rapidly

ent

law, there
Ploymjent. Easy money in the re- the immediate postwar 1945-48 have
been few bank failures
and,
the day we haveF™ of 1953-1954 encouraged when special factors were oper¬
of
ating, 1948-49, and during a por¬ hence, there has not been wide¬
wherein most exchanges of goods kusifl?ss
expansion and was a tion of
spread liquidation in the

consider

credit.

the

are

desirable

was

Although some net increase in
spending probably occurred in the
first quarter, it is significant that

The

direct effect

monetary system

inflations

year.

growth

during periods of business decline
and thereby attempt to
promote
higher spending. This action had a

but admits it leaves less protection against
prolonged inflation.

•

the money supply had in¬
only 1% in the preceding
Although reduced money

ary,

creased

economy was

been

weakening of the
operating includ-

our

Praises stabilizing influences
ing the loosened link between gold and
economy.

Through Febru¬

economy.

objective.

continued low rate of monetary expansion for too
many months
could create credit conditions resulting in a

;

the

has in the main succeeded in this

controls, but doubts extremely

Sprinkel refers to past 4% necessary annual rate of money
supply increase; notes the requirement of a leveling-out econ¬
omy; finds that, through February, the past year's low money
growth rate of 1% was as low as the money supply rise in the
previous recession-depression periods since 1920, and believes

Treasury and the Federal Reserve
System, the Federal Reserve has
followed a policy designed to con¬
tribute to business stability and it

In assessing money
quality and functions, Chicago bank econ¬
omist declares credit system is
currently strong, able to

without direct

may
be
somewhat
too
stringent for current developments

money

the

Economist, Harris Trust and Savings Bank, Chicago

excesses

growing

Since March of 1951, the date of
"accord" between the U. S.

By BERYL W. SPRINKEL*

correct

secular

New York 6,

N. Y.

the

acquisi¬
one

bank

page

the

can, reap
that

costs

60%

But

expenditures for

spirit of

think

indirect

are

The

railroads,

than

evenly

any

There

this

several

are

the

but

principal one
is the simple
that rail-

fact

the

The

still

many

"done

today
were

so.

things'
exactly

same

half

T. J. Deegan, Jr.

century

railroads

the

Second,

may

well be the only industry required

by law to integrate their product

one

ago.

single entity,
instead of 130 main arteries—the
they
I

Class
tude

were

have

capillaries

fact

stands

child

reason

operations.

natural

these

it is used in

marks.

not

absorb

in.

set

that saved

cushion

shortcomings.

nical sense, but

to consider auto¬
mation the result of doing auto¬
what we used
manually and mentally.

matically

mation
ion

even

1 nwPH
lagged terhnoWirallv Thi,
technologically. This

back

2 ml**
with

airline

with

techniques
regarded

thmk
think

with

mere

the

dozen

equipment and
then are today

used

archaic.

i
I

as
as

association

industry
ago.
The

years

mP
me

And,

shows

now

account.. Here,

revenue

Even

the

protect

from

a.CUshi0"
own
our

signs of wearing

for
our

senger and. freight patrons.
,

revolution

only

that

writers

second

science
make

advanced

continual

' industrial

stage

fiction

out, but
in the

mechanization

in-

the railroads' in-

research

almost

was

It is still infinitesi-

Fortunately

for

the

New

the

Diesel

locomotive

went

deeply
rail

strengthen
At

made

its

into

debt

install

particularly
bridge structures
heavier

the

time,

this

search to

research

destinations

than

*A1 aidressJ

agement

April

1956.

be-

such

regard from treatment
Tt

•

stifling

nf +hP

feets

government

rea]jze

pf-

treatment

the. stultifying

effects

being in a regulatory straightjacket, nor the frustrations of
being taxed to the hilt while competitors are being coddled by sub¬
sidies.
Can anyone wonder that

When

...

contemplate the dras¬

brinB

the enthusiasm public stronger,
railroad's grows acceptance.

our

••

•

$20 Billion Question

pub-

wiI1

service

almost-

improvement

" Oddly enough, this enthusiasm
,

line

our

offer to sell

nor a

solicitation of offers to buy

of these securities.,

any

■ *

ISSUE-

May 2, 1956

it—you tend to judge
our performance
by the over-all.
through service. Even so, the ef¬
automation,

will

striking that weak links
chain

will

links

strong

forced

become

from

retire

$30,000,000

in the

Duke Power Company

the

fight.

second

obligation

facet

cars

First and

legal

our

interchange

facts concerning them, particularly as to their whereabouts,
?re terribly hard to assemble and

keep current. There are so
opportunities for human

Dated

was

the

Price 102.31% and accrued interest

to-tape system, built around

years of

age,

and its expensive

heavy-weight passenger
28

average

years

age.

given

car

Moreover
papPr

x" concepts.

wo'rk

This past

corn-

detail

has

o^r

speed up

Results

can

gigantic.

For

exam-

train

securities

and

which

the

Prospectus

may

yardin^tefd

out of

distributed.
'}

.10

have

,al° to handlethe
even

effect

doubtless

not

improvement

workings

the

but

The

Clark, Dodge & Co.

our

Railroads
of

Granbery, Marache & Co,
Kean, Taylor & Co.

carriers

size

and

are

the

Dominick & Dominick

Bache & Co.

Bacon, Whipple & Co.

McLeod, Young, Weir, Incorporated

William Blair & Company
Swiss American Corporation

com¬

only

Carolina Securities Corporation

First of Michigan Corporation

Blunt Ellis & Simmons

general

freight
whose operations are basically of
a mass production character

opinion

Republic Company
(Incorporated)

Baker, Weeks & Co.

industry should

our

Central

Robinson-Humphrey Company, Inc.

the

internal

be sizable.
as

Laurence M. Marks & Co.

Here

public

great,

Hayden, Stone & Co.

more complex

bookkeeping.

upon

Francis I. duPont & Co.

«'

horrendous task

inter-line

the

Corporation

Wertheim & Co.

Hemphill, Noyes & Co.

Salomon Bros. & Hutzler

giant
^ digital computer at Buf-

data such

The First Boston

e, .g?*n.g

that terminal, tion discloses some differences of
we

Indeed, it is in terminals than

legally

•'.di')

miih

Bookkeeping

land

The tangible results of automa-

only in States in which such underwriters are qualified to act as dealers

to handlP thp

yard onemtions

Inter-Line

plexity:
Gigantic

Copies of the Prospectus may be obtained from any of the several underwriters

will

P our yara operations.

Now

decades.

f.ru

cars

year

arrives in the

And,

aJso seen the first radically-new
freight car design in several

seconds

enable

May 1, 1986

many

our shippers, but,

first time I met

Due

May 1, 1956

error.
alone in

facing cars for

very

Refunding Mortgage Bonds,

3/8% Series Due 1986

J*1

moss-backed business,

laboratory which

Seminar, University^^Michigan^ into and

25,

fects

off

NEW

....

treat

reguiators

J. Barth & Co.

Julien Collins & Company

Crowell, Weedon & Co.

Robert Garrett & Sons

J. J. B. Hilliard & Son

P*e, the new electronic freight' geared to assembly-line high, volnew
yard that the New York Central ume. Indeed, the railroad train Reinholdt & Gardner
Rodman & Renshaw
William
now has under construction at provides a classic example of the
Buffalo will save about 15 hours so-called "economy of scale." Al- Sweney, Cartwright & Co.
Irving Lundborg & Co.
Sr- D<ifg-?n' jr;,be' in the time a car requires to get though the literature of automa_

to make

The offering is made only by the Prospectus.

us, not

is 0Ur ecluiPment desiSn beginning
to catch up with the first half of
the twentieth century. Even today
America's .freight 'cars average

tion

This advertisement is neither

0 in Setting maximum use of
Mr. Perlman was in his research our ears. The Central is just now
laboratory in Denver in 1947—a completing a marvelous new card-

steam
was

also

railroad public relations, our

This handicaps

fact, the

progressive, forward-looking step.
But when the Diesel came along
several years thereafter, by distributing locomotive weight more

chance

and

accommodate
power.

the Eastern railroads

appearance,

heavier

forward

immeasurable

re_

application of modern

almost half of that group is over
to
"catch
up" in one gigantic
years of age. The year 1955
stride.
;
saw the railroad industry for the
The
best
example of such a first time actually put into use
situation that I know of occurred modern,
light-weight
passenger
a few years ago within
the rail- trains such as General Motors'
road industry itself with the com- Aerotrain,
the Talgo and the
ing of the Diesel. Shortly before Xplorer—all substantially "Train

dustry, it still offers

look

delivery at any point not or,
line—obviously there are fai

that

knowledge

common

now

fabulous

much

caUse they believe public opinion
supports
them.
The
treatment
from the regard
and the

But the impact of automation

though automation is not

done

and> in turn, legislators and

ts by no means limited to. our pas-

outh's performance, but if you
give the central a car of freight

abuse

automobile

tioning!

ha's

You don't judge Fords by Plym-

York Central, its President, A1
Perlman, is a longtime advocate
In

jncjUstry
ment

Freight Location

mal.

the public looks
moribund, decadent
partly because governa

tic uP1'
cHbimprovements that a largely
Relatl9ns

the

evident'around^Michiga^"^ the ^ xS kln^^ the*d by teMype^Vu-h
piece identified'
the
A high percentage of our equip- a^je J"
prod°uce the^facts*orTa
without air-condi- ment is obsolescent and only
museum

know

What makes auto-

non-existent.

hnmp
home

and
will

on our

timely is that the cush¬

vestment

an industry, which is now
almost 130 years old, the railroads
have
have

delays

LXgooadUtrbrnrdrnsPrandUCae

during those des-

for many years

Lagged Technologically

Btrikpl

maximize the
contribution of such managerial

portant that we

automation could produce

out.

Rtnkps
strikes

indeed

permits

tremendous

upon

manpower as we posse^rautomati°n m the form of digital com^ such external circumstances af¬
So you know what puters constitutes a tremendous fected and infected the internal
blessing it will be to tool for this purpose.
- ^
problems of the railroads?

beneficial

passenger

that

resiliency

the

sustain

and

re-

tech¬

any

those

how

Similarly, the intrinsic
of railroad operations

provided

us.

present,

all have had such

you

unmixed

cut

before serious mental disturbances

use

propose

the term automation in

/ ;

tell

should define the term "auto¬

mation"

to-

placed upon the delays that train
and air passengers encounter. Un-

decentralized

responsibility and ac¬
countability. So it is highly imauthority,

was

—

govern¬

lie acceptance. Of course, I realize is strongest just when logically it
relations with our freight
.
,
patrons. For one thing, as I have that complete public acceptance ought to be weakest —when we
already, suggested, our- industry will not come overnight. But the reflect on the $20 billion question.
flanged tends to be judged as a whole,

the

economy

Perhaps, in the interest of clar¬
ity, before we progress this theme,
we

very

the steel rail.
i

survival,
the amazing

that

out:

Psychologists

springs from
the size and complexity of rail¬

road

economy

him

third

until

presumptuous,

nor

analysis

wheel

iShort feeder and terminal lines.

The

for

said

been

critical,

natural

multi¬
representing

railroads—plus

trend

lished

recently that the survival 'of our
profit.
industry over the previous quar¬
Or consider the effect- of such
ter of a
century was more in
spite of than because of the way things as electronic > yards and
it was run. This is meant neither CTC (Centralized Traffic Control)

they

done

Right Moment

opportunity

could

way

the

such a
giant stride in the form of auto¬
mation has come just in time. It

where there
are

everywhere so commonplace
day. Considerable emphasis

experiences.
Comes At

story

waiting lines,

annoyances

doubtedly,

another

not

Street Journal" carried

the

Eastern

roads.

industry
in
this country

burdensome

Thus, it is not alone hugephysical size, but also sheer complexity

presently

attitude

ment toward

business

installed
It is the most of managerial problems that that fair.minded individuals
thing of its kind in the- makes automation so alluring to shouId temDer their criticisms of
world.
Blanketing most-of our railroaders
Previously I stated old_Iine rail
managements with
system, and tied i* with certain that rai roads have lagged techcharjty; but> at the same time, not
other railroads, it will enable you nologically; they have lagged even
fail to Charge them with the lack
to obtain a reservation in seconds more personnel-wise and organi()f imagination and aggressiveness
or
minutes, instead of hours or zation-wise. It was not until very in meeting and correcting such a
recently, for example, that the situation
days.
long since. Scarcely anyxnuubixy juxxicu in uxc wcxx estabJust the other day the "Wall industry joined xxx the well « exu- Qne outside our industry Can fully

no^saddle^vidth ^he vas^t

debts

greatest

need. There is

that

roads

managers of large companies may
achieve equal footing.
,

passenger

are

the

automation,

the

notably

our

untouched

remain

having

were

have

roads

the

those

through

Now;

facet of

would

modern

structures.

stronger

fore,

that

system

gTulcklx to «Jtet ,the situation.

Centronic, you perhaps
know, is the electronic reservation

There¬
had been
getting by with an inadequate
plant suddenly found themselves
in
clover.
For
suddenly
their

and

for

reasons

patrons.

rails, it sharply

the

over

on our

restoring

smallness. The managers of small
companies know what is going on
in their businesses and they know
it right away and are free to move

intangible

absorbing,

feet of Centronic

reduced the need for heavier rails

industry, stand to benefit
by the advent of automation.

hold

and

an
advantage
that they lost when they outgrew

j: Consider, for example, the ef-

industry from automation.

other

that

terms

that

companies

large

ad-

even

scribed

tangible

Centromc

for this growth

reasons

There is

cycle and successfully

In explaining
outlook, Mr. Deegan shows how
the railroads have lagged technologically, personnel-wise and
organization-wise, and views enthusiastically equipment design,
and various passenger, freight and bookkeeping electronic
developments. Expects impact to improve public relations and
help offset stultifying governmental regulation and taxes.
the

try" could be beyond description.

automation

the

effects

industry that stands to benefit

doubt that in general its benefits

will accrue primarily to larger
enterprises. Indeed, the role of
digital computers might be de-

operating costs

the

than any other

—

not

$20 billion to meet forthcoming automation and modern¬

ization

most

that our
for Eastern

there

the greatest fascination for me;

optimism, New York Central official expects the railroad indus¬
try to break through the new money

there

the

terminals.

vances

a new

within

fall

Believing the investing public correctly senses

it-'- is

are

greatest

are

railroads

Staff, New York Central System

—

methods

our

antiquated;

By THOMAS J. DEEGAN, JR.*
Vice-President

Thursday, May 3,1956

fropi^ which it holds for smaller com- potential effects of our rejpining
panies, there? seems td" be little the ranks of "progressive indus¬

ipost

very

ition;
physical "'automation

Application to
Passenger and freight Revenue

raise

....

The Commercial and Financial Chronicle...

(2140)

Automation's

•

b*:rv

the

possibilities

Foster & Marshall

Pacific Northwest

R. Staats & Co.

Company

Sutra & Co.

Townsend, Dabney & Tyson

Volume 183

Number 5530 .The Commercial and Financial Chronicle

(2141)
** v"V',

Where

are

billion

for

going 16 get the $20

automation

modernization

that

and

informed

concern.

generally agree is needed
to do the
industry job right? v. ^
Is

this

another

vicious

with public confidence

.,mAss of ^.conception
Behind

By M. J. RATHBONE*

precedent to
money

new
money and new
condition precedent to

public confidence?

think not.

President, Standard Oil Company

Current

believe the public,

new

railroad industry.
•

spirit in the

Two months
ago Interstate

Commerce
referred

Commissioner

the achievements of business

Clarke

a
speech to what he
railed "the attitude of
confidence

tion

plain,

"This

great-

entering

medium

long

" of

for

many years is

spirit of

we are

van-

finding

attitude

and

Bold, aggres-

Tlew®~

b®*ng/^g^

ness

and

„

—

•

to ' act

bur

nspires

fr^ldy"Cwe treliev^that'w^can

trankiy,

that

effectively

compete

abiy.

believe

and

can

profit-

we believe that we
are
going
break tnrough the new
money
cycle. Cnce having done

so,

our

industry can achieve a wholly
tone—largely owing to auto-

new

mation.

That

our

small

town

not

will,

only

our

relations

of
ex-

but

also

lock
the

forward with

eagerness

day

when we can once
again take pride in your
respect,
take pride in
ourselves as railroaders.

The

eighth

Wright
ment

annual

the

Association

Cashiers'
of

Stock

Firms, will be held

Division,
Exchange
Lee-

Miller, cf Hallgarten & Co., and
vision
..

the

Cashiers'

announced

May
'

....

vtrophy

will

havinnav*n0

*C°Carl

the lowest
the

the

gross
gross

the Division

to make

This law,

section of the Clayton

Antitrust

Act, prohibits mergers
of corporations when they might
have an adverse effect on competition.

The new bill passed by the
House would require companies of
a certain size to give two governmental agencies advance notice of

with,

any merger

stock

any

the purchase

assets

from,

standards for

all

those

served

American

our

ail

institutions,

VV44VX

must

It di-

Examples of this lack of understanding are to be found in many
Some of them

areas.

are, admittedly, less significant than others.

are discovered at
the very heart of our democracy,
in the United States Congress,

not

™,r.T-+Vi

whilp

nnv

sit.

^ce ,DePart^^inann

nnf,r.prin those
notice\in those

vance
one

coses
cases

proposes

the whole or
of the stock or assets of another
company and where the combined
capital, surplus, and undivided
profits of the two companies exceed $10 million; and
(2) Halts all proposed mergers
for the 90-day period, so that the
Department

Justice

The

times

same

;

involved to provide any information that the government agen+V\pv

tne

oeai

mav

need.

wiuuu

object

^u-uajr

ri0d "shall not bar the

institution

Continued

„

IJ. ^ ">■ :•>
*
This advertisement is neither

* in-

••

•

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

any

page

■

of these securities.

NFAV ISSUE

May 2,1956

fashion,

increasing

use

talents

to the
businessmen's
the

critical

point

affairs

complex
In

300,000 Shares

handle

many

they

are

of our govdepartments
putting their

Kaiser Aluminum & Chemical

greater
__

efficiency
ana
consequent
In some

Corporation

and with

savings for the taxpayer.

quarters their work

hasr<j"

^ssman"s
executive

branch

4Vs% Cumulative Convertible Preference Stock

Administration" for the
of

ment.

Beyond the

tional

economy

our

area

and

($100 Par Value)

governour na-

S°.vernm™

bus..nessman today s the subject of movies and P°Pular

"°ve^
Althougha few are""lattering,
may of
3■-

them

are

realistic and
,

..arry

■

tSi'

Price $100 per share

;V fi

plus accrued dividends from date of delivery

..'r!

i' ip v

r»

Artxxrn

formative, some of them down^ght gympathetic
The business-

addre«8 by Mr.'Rathbone before
the Newark RotJu'y Club, Newark, N. J.,

'AprU

24,

rCopies of the Prospectus

may be obtainedfrom any of the severalunderwriters tinclud~y~-. \
trig,the urfdersigned, only instates in which such underwriters are qualified to act
j.
dealers'H'tif securities ,an4fin which the Prospectus, may legally be distributed.. ■
■

it
•

1956.

'■

1 •'

-'L-Tioq■

.•

:;'

•-

•

••

,
.

.....

1-4480

,
,

■

•.

Glore, Forgan & Co.

Hemphill, Noyes & Co.

Incorporated!

Kidder, Peabody & Co.

Paine, Webber, Jackson & Curtis
Schwabacher & Co.

CABLE

.■

,,v.

Dean Witter & Co.

Harriman Ripley & Co.

•••'.

«•

Lazard Freres & Co.

Lehman Brothers

Wall Street
TELETYPE:

;
,

Eastman, Dillon & Co.

Goldman, Sachs & Co.
'"

The First Boston Corporation

Blyth & Co., Inc.

Trading Company, Inc.
NY

„

Carl M. Loeb, Rhoades & Co.

some-

newspapers,

4%% Convertible Pref.

9-5140-1-2

may

(3) Requires, under heavy penalty for default, the corporations

nnritential eiiects upon dusiucss ui. &
number 0f bius actually before
reassuring.
It is the 84th Congress. Some of this
k ghould cause all pending legislation may be news
-

■

Trading 'Market

the

and

Federal Trade Commission
investigatee the case; and

ness.

Brokers—Institutions

TELEPHONE:

where

to acquire
any substantial part

company

condition

employ

Kaiser Ahminttm & Chemical Co.
Stamrowe

an-

longer other company regardless of the
effec- effect of the deal on. competition,
national Bdeflyi the bill:

—

Green

Commission

economic system.

BCwling

Federal

and the Department of Justice in
enforcing what is popularly
known as the "Anti-Merger" law.

dlscloses

one wxuci

of >

...

For

;

recently passed

was

\(1) .Requires all corporations
are
strong words,, but I planning mergers to give
Justhem quite sincerely. Busialmost more than all other- Trade Commission Qn daya
90

4-1—„

aid to educational institutions, to

Golf Committee.

H. R. 9424

man's efforts to give .badly needed

Company, is Chairman
.

highest rates of real income
presently being paid to industrial
workers; of new advances in tecnnology and
productivity wnicn
are
resulting
in
better
living

Assistant

?SSf1Stant

the

now ap-

the

Manufacturers

Mochwart

J I
Vice-President
w.

The

awarded

utiaiu

t by

inember
jnember

Trust

Di_

tlic
the

business into capital investments.
There are reports of
j

ests

Club, Crestwood, N. Y.,
Tuesday, May 15, George J.

President

and industry; and of ho,
Varger amounts of money rurrent- however>
curri
-5i"which is

wood Golf
on

..,

experience to work in the inter-

Tourna-

the

■

that failIUC111
of them

anrl

and places

Walter

Goit

Yet

'V-.V But when they

economT morrthan^90%

economy

Memorial

big

Considering all this current attention to their efforts, you would

ontprnrises.

ernment.

Cashiers' Golf
Tourney

able

American

"hardware

the board

■

These

ness,

corporation, works in a factory,
a desk, or sells in the field to
help his family and his company
along. V 7.

other business ■

internal, employee relations.

We
to

tone

new

course, affect
ternal human

;

apprecia-

parts.

contribution to

mean

with

recorded

welfare.

fervently
manufaccarriers should not be t u r i n g and

...

tive

cultural

nroiects

sits

store,

railroada

for

other

understood to be effective.

owns

compete

the

misunderstanding

would

country's
our country s way oi life
way of

.....

It is intended to aid

rectly depends upon the widest
possible public support for its
functioning and growth. Without
the
combination of
faith, hard understanding there cannot exist
work and risk which is the daily the kind of climate in which busischedule of every man who goes ness
thrives.
The consequence
to business, no matter whether he
could soon be a weakening of our

the
r?!Pi0r/ urges a loosening of largely susstran^flory bonds that now tained by exrim
Pe ?°n among car- Panding min-

right to

should be enough to
businessman out of his

mass

All this attention is naturally
gratifying to businessmen.
It is
pleasant to find credit given for

leled teSdrf

Transportation, mark

the

American business
is concerned, presents a
very real
danger that business could well
be so shackled that it no.

effective represen-

ft..**

Trade

among

tion.

wav

•*

the

VUVA¥

ic
i
confidence, by the economy, now
attribntahii1 + n? fma11 measure a p p r oaching
of President 1°
3Su year's ReP°rt the $400 bil"
Commitf
°WersCabinet li0n 3 year
Committee
on

aarL
rtfn?L
aenrnd

some

imnnrtant

cripntifm
overseas

and^the businessman m our tative of
are
also

a society. HeadProblems of lines and news
stories tell of

„!? C0"nde"Ce

That

ques¬

up a

today
the prominent place of bus

paper

}S ad°PtinS

indiitt?v»°a

the inaustry.

It's difficult to pick

;

":"■**

Pre-Merger Notification

achievements,

parent where

optimism.

posltiv^3

rapidly

by the House.

sort of

any

.complacency.

All parts of American life
depend
for their well being and growth
upon a similar state of good health

•

last,

relationship of business
the other parts of our society.
This is an unfortunate situation.

incompatible with the general welfare of the United:*
Points out that proposed accelerated, stepped-up cor¬
porate income taxes would shift smaller companies from being
maintained and supported by big business to big government,
and economy would suffer without large business institutions.

complex under which it operated

ishing.. In its place
arefreshing new

are

„

businessmen
real insight into

the interests of businessmen

its

essential
-

urge
a

really; operates, what the
true
motives of businessmen actually
are,
and a failure to grasp the

mergers;

that there would be

recognition

believe there is still

States.

is
The defeatist

a new era.

to whether

surface

and

ways

apparent in the railroad indus¬
today." He went on to ex¬

try

transportation,

N. J. Standard Oil President to

acquaint Congressional legislators with

alone

misconception about how business

(New Jersey)

proposals to hamper lawful. business

prompts

establish cruel and unusual punishment upon company oflicials; and to use the taxing power to punish business growth,

especially t^e
investing public, already has be¬
gun to sense the

the

of business

cycle

condition

fact

shock

servers

businessmen deep and thoughtful v to you, but it does exist and that

Businessmen Must Make

obr

.**

other

Merrill Lynch, Pierce, Fenner & Beane
,

Salomon Bros; & LIutzler

•

Stone & Webster Securities Corporation

ADDRESS:

NYSTAMROWE

Union Securities

Corporation

Wertheim & Co.

White, Weld & Co.

:■

The Commercial and Financial Chronicle..

(2142)

banking over the past three decades, both functions complement
each other in that they help to
complete a package of services
that a modern, bank is expected to
provide for its customers.
r
No longer is a bank today an
exclusive
wholesale
institution

Trust Easiness

Importance
Commercial Banking

In
P

SIENKIEWICZ*

By C. A.

Association
Bank of Philadelphia

President, Central-Penn National

Pennsylvania Bankers Association President compares com¬
department stores in their scope and

longer wholesale institu¬

dealing in big balances and self-liquidating loans alone,
Mir. Sienkiewicz states in pointing out need fdr trust depart¬

known

an
integral part of our deposit
banking.
With
the permission
granted national banks to estab¬

lish

de¬

trust

partments at
W

o r

all

banks
now

qualify them¬
selves to han¬
dle trust busi¬

and

ness,

1930's.

tension

mers

ex¬

en¬

Sienkiewicz

and the

public generally.

also calls for concerted action by
units

banking organi¬

our

zation.

hold

banking.

long time,

know,
there existed a wide gap of mis¬
understanding f between commer¬
a

countants because

installment loans

ability

of his greater
business with

much

you

cial bank men and trust

The

men.

these func¬

tions partly through new types of
loans and partly through many

unknown

services

his

older

ties,

installment

yes

bank,
hand, has performed
a

for commercial

the

bank

Fear

without any

—

Some
my

all
a

Boomerang

may think that
plea for cooperation among
departments and personnel of

bank in

building trust business

overlooks

possible
conflicts
in
One such conflict may

banking.
arise

you

when

tion

trustor

indebted to
with

his

heavily

the bank

connec¬

current

business

operations. Another friction might
develop where there is a fight for
corporate control and you are
solicited

the

vote

the

stock

banking,

including fiduciary

and

which his estate

agency services, to our customers.
This is
as
it
should
be under

prototype.
partment of

to do to make
and prosper.

grow

held in the trust department, par¬
which may have become archaic
Seasonal or self-liquidating loams because
of ; changing laws and ticularly if one of the parties at
were regarded as about the only
taxes, or his family situation, size issue is your substantial deposi¬
tor.
Still another source of em¬
proper credit to extend. Anything of his estate, and his wishes,
beyond that category had to be • A well-trained estate planning barrassment may arise when the
bank is requested for a loan upon
very special. Yet today we are
officer, working with the cusmaking these new types of loans. ; tomer's lawyer and life insurance the security of a remainder inter¬
est and such a loan is against the
We also are providing innumerunderwriters, can give assurance
able financial services and iacili- Gf the
most effective manner in general policy of the bank.

ment, and for his success or fail¬
ure.
A modern bank officer has
added

trying

for the purchase of

—

appliances

suitable

cautiously made loans which

The trust man, or

Tasks Differ But Goal Is Same
For

longer

expected to collect at maturity.
mingled
with
suspicion
formed a basis for his credit judg¬

qual¬

larges our
opportunity and responsibility for
broader services to bank custo¬

all

Term

mediate term credit—1 to 5 years

Faith

ified. This

business

new

to business firms in need of inter-

have

and

of, your depart¬
other selective

Among
of

business for * the

them.
5 What about the customer himthe functions of commercial and machinery, equipment, and other self—does he stand to gain much
fixed assets suggest one example under
such a cooperative aptrust departments and, second, of
of change. Credit for - the pur- proach to develop trust business
the
far-reaching
changes
that
chase of automobiles and house- in a bank?
have been taking place in com¬

great majori¬
ty of them

understanding and appreciation,
first, of the relationship between

mercial

commer¬

may

lack

increased

generations

hesitation,
basis is another new credit develProbably his greatest problem toA typical commercial banker of
Long-term
credit
exday is to plan or arrange his
the older school dealt in credit- opment.
debt relationship. He knew that tending over 25 years or longer estate in such a way as to achieve
for the purchase of homes is still the best
possible results for his
his bank was a debtor to its de¬
another illustration.
family and other recipients of his
positors and that it also was a
Bankers
of the past frowned bounty.
creditor when the customer bor¬
This requires competent
rowed money from the bank. He upon this type of lending. They advice and guidance in drawing
ardently solicited deposit accounts considered it as unsound and un- new wills or redrawing old wills

1 d

War, virtually
cial

the

from

and- permanency

books*,to ;trust officer in selecting prospects, ments.
practice wholly Jand this obviously should mean sources

the end of the
first

stemmed

tudes

They can easily " work with the

popular or special ac-

the economy, facilitate economic growth
and employment.

Trust business has now become

prospects.,

are banli
trust stockholders,
safe deposit
box
of commercial bankers.
v
v : v department., In the second place;.,
customers,; arid. depositors.
All
New forms of credit have been by cementing good relations with bank officers cap be
helpful iq
developed to meet the needs of the-'"commercial department,
a this fespect,
if they know and
business and individuals, parties trust officer can enlarge his rela- are convinced of the
validity- of
ularly since the depression of the - tionship with lawyers and • at-' your efforts and of what you are

plete banking package to
middle class families concerning the services banks offer as
fiduciaries which would help provide individual security,
j

and sells check

small customers, a
unknown to the past

offering a com¬
the customer. Urges education of

channel savings into

counts,

complement commercial services in

commercial

new

In enlisting the cooperation of
What about the position of an
officer in the trust department? bank personnel, the trust people
His advantages of cooperating should first sell the service and
with commercial bank officers are value of the trust department to

tions

ment

problems.

dealing in big balances and self- equally positive and comprehen- all
bank
officers.
Next, they
liquidating loans alone. It is more sive. In the first place, commer- should
vigorously. solicit
bank
like a
department store in its; cial officers as a rule know their directors - because
their
activO
scope and variety of operations, customers -— their:'ages, their, fi- support by entrusting their owrL
It, of course, handles big accounts nancial competence, their family estates to you gives, prestige and.
but it also accepts small deposits, status, .their likes4, and .dislikes,
personal endorsement, of the value

mercial banks to modern

variety of operations. Banks are no

exchange of information that the may be valuable to commercial
banker can be of real service to officers, either in dealing with
his client in solving perplexing the same customers or in sensing

President, Pennsylvania Bankers

Thursday, May 3, 19561

the trust de¬
on the other
a function of

njng

changing conditions and needs of

the

business

individuals. .Banks

must

adapt their
policies and
practices t6 the changing credit

custodian and administrator of the

property entrusted to him by an¬

beeds nf

other person under a will or deed
of trust with the understanding

an(j after the man's death,
knowledge
of
commercial

bank

and

dynamic economy,

be protected

can

an(j conserved. In the estate plan-

officers

counsel

available

retention

the

Certainly, by working together, the

liquidation of his business.

You
of

think of other

can

sources

potential

difficulty, such as
where the trust department
fiduciary holding securities
closely held corporation, or

cases

where

the

trustee

ture

bond

trust
d

issue

extending

department

mortgage

the

and

deben¬
bank

commercial
that this property will be man¬ legitimate
requirements
other benefits from bank trust facilities, credit to the company. You can,
regard the trust department in his
as
a
matter of fact, produce a
aged well and safely in behalf of institutions or agencies will be set
n is, therefore, clear that the
bank as a poor relation, operating
cross
fire
of
the best interest of specified ben¬ up to do the job. Bankers of toquestions
which
cooperative approach to the trust
mostly in the red and seldom con¬
would
drive you into complete
eficiaries. His relationship with day are meeting the great chal- business is
advantageous to all—
tributing much to earnings or
the customer usually is defined by lenge of our expanding economy
commercial and trust departments inactivity or into a narrow tech¬
growth of the bank. Not only was
nical isolation as the safest trust
law and the provisions of the in¬ and growing population.
and to bank customers. What is
this view displeasing to the man
strument committing the property
policy and procedure.
in the trust department, but it
Benefit of a Good Team
needed is+.mutual understanding
to his care and management. He
But that is not the bold, pio¬
also apparently superinduced in
' and education as to what each deThis brief background
acts in a fiduciary capacity for
should partment is and does, what its neering way to build the trust
him an inferiority complex. As a
the benefit of his customer and dispel
any
misapprehension
or functions and
methods of opera- department.
A timid, negative
defense,
trust
men
sometimes
not in the capacity
of a wary unjustified feeling that may still tions are, and how each can work approach will never lift trust de¬
stressed
the
superior
qualities
exist between the people in comlender dealing in promises to re¬
on a spirited team to the advanpartments to prime positions to
needed by them because of their
mercial and trust departments of
pay borrowed money in the fu¬
fage 0f the bank, the customer, which they are entitled in our
fiduciary relationship with the
the bank. The nature and scope
ture. This position of trusteeship
cerned.
Under such
conditions, banks. A competent, well-estab¬
customer in contrast to those re¬
is
acquired principally because of banking today have, become so any possibility of conflicts and lished trust department should
quired of their commercial coun¬
the owner of the property, or the complex and inclusive that it is recriminations between the activ- resolve conflicts in most
cases, if
terparts, who were dealing at
necessary to have qualified people
ities of the two departments will trust officers are resourceful, de¬
arm's length in making and col¬ trustor, believed that the bank can
m
best protect his interest and carry
departments of a bank be
minimized, if not entirely termined and thoroughly frank
lecting
loans.
The
commercial
out his wishes with
respect to working together as a vigorous eliminated
v
with their customers.
bank man
commercial banker

was

prone

they, tail

mu.

sound-and

meet

customer

can

derive

enormous

line

this

resented

and

was

helping

attitude

loath to take interest
any

efforts

develop

trust business.
;

The obvious folly of these atti-

s*An address by Mr. Sienkiewicz before
the
29th
Annual
Trust
Conference
of
PBA
Trust
Division,
Harrisburg, Pa.,

April 6,

himself

or-

trust

departments in

tions

—

the

sweeping

changes

the

among, the

good rela-

mean

bank

—

closely

ties

Assuming that commercial bank
officers .have
been
adequately

with

the

with

the

customers their bank; that it is not a poor
relation-or

the

DEALERS

certain

and

has

the

unusual

•

Members*

his

Son Francisco Stock Exchange

PORTLAND

radiotelegraph circuit

».HONOLULU

em¬

•
•

NEW YORK
AND

•

OTHER

deposit account

to be

may

turn out

fluid item, particu¬
changes in ^ manage¬

very

conditions.

a losing item of busi¬
to court failure at the

To accept
ness

property .serving their-estates;

commercial officer
to

offer ; his

additional service of

because

It should
in position to have and share the other bank units.
the latest' information on.tax and not be an "unwanted child" but
other -legal- developments,
new a desirable productive branch of
are

■

ideas

estate

planning,

and

progressive bank. It should and,

can

earn

its

own

way.

•

death.

includes

This opportunity also
good chance to-obtain

Such

information

may

ex-

Conclusion
I

BOSTON

tremely. valuable

•

COAST CITIES

SEATTLE

convinced that, in build¬

commercial ing trust business, close coopera¬
valuable information on the officers .because the
impact of tion between the trust department
amount and type of assets owned taxes on the financial positions and other departments of a bank
by individuals. The knowledge so of borrowers may be decisive in is essential. I am also convinced
gained should be helpful. to both the extension1 of: credit. Discus- that a progressive bank of de¬
the bank and the customer be- sions of current or new problems posit today cannot offer a com¬
cause
it is only with the frank arising from trust operations also plete package of services to its
a

Honolulu

CHICAGO
PACIFIC

his

outset.

another bank; - is

department methods to achieve the customer's
manage
and
conserve
the "desired estate, plan with a minicustomer's assets in the. event of mum of tax or "other expenses,

leading commodity exchanges

IOS ANGELES

will

Honolulu Stock Exchange • Chicago Board of Trade

Private leased

importance
welLorganized trust

los Angeles Stock Exchange • Midwest Stock Exchange • American Stork Exchange

SAN FRANCISCO

will

opportunity

customers

Dean Witter
&Co.

and other

unit. that : is trying to larly with
to; retain; "his develop ..and retain banking busi^. ment or in business

entrusts

Moreover,

PRIVATE LEASED WIRE SYSTEM

cus¬

Peoplef generally are rea¬
and thatJit sonable in meeting costs, if they
- a rlive
part of the team that understand them. It seems to me
upon his death the tfduciary .bank is building' the bank;
that the trust department should
invariably .gets all his<business. ^ More.specifically, trust officers be ja self-sustaining unit just like
bank

DISTRIBUTORS

—'

"step-child" but

All of you know what; ness of all types; that in doing so
happens when a customer "carries dt is prepared: to offer vital servhis commercial business with npe ices 4o bank customers, in conunder

•

our*

a
piece of business at a loss,
ostensibly because of certain col¬

customer, the bank; thriving

any

almost

Upon

business.

BROKERS

Exchonge

with

Many times, in the face
of fierce competition, we accept
tomers.

people; in "officers to keep; them ever con- lateral advantages^ such as in*
scious; of "the Sfcct that .there is creased deposits.
The difficulty
-an
active
trust department in with such an-arrangement is that

New York Stock

emphasize the value

frank

-..

public.

their lifetime..

death of

UNDERWRITERS

•

I want to

How to Cooperate

with* its; cus-

their trust departments. -They can
establish stronger and more* iriti-

during

INVESTMENT SERVICE

relations

bank

Commercial bank off leers' stand 'primed arid are receptive to sugto gain many benefits from workgestions, it is up to the trust

mate

Complete

tomers and the general

faith, confidence, trust,
mutuality of interest. Moreover, ing

same

Good

people in

bank differ,

their foundation is very much the

with

1956.

team.

his beneficiaries.

It is clear, therefore, that, while
the functions of commercial and

Volume 183

Number 5530

The Commercial and Financial Chronicle

...

(2143)
customers without
having
manned

and

partment.
with

qualified

also

prudent

well-

and

made

self-sustaining,

trust department
can, be

overnight; but

the; long

run.,; ;

;

Long-Range Outlook

sum

be said that the world

can

ever, from a free world point of ?'
view some satisfaction can be dethe general.situation arived*from the» developments of

;

And

probably
certainly in'

impose restrictions after

while.

courageous

policy,
not

had to

Chances of

deV

trust

believe | that,

port market

divided

the

ex-

into

two

•'---f£■fV-%
'S?.
^Administkitor, Foreign Exchange
job obviously is to
keep /t,
>4 Radio Corporation of America, International Division

last

convertibility

think

fi^ld^is^cl?Ind^vidua^truSs
be

smaller

past

but

sizes

they

more, eco-

-The rise of bur

wealthy middle

and

yourselves

/•

(b)

Soft

;;

Currency

hour

the

Countries.

•

basis

which

enables

convertibility which is defined
other

any,

currency

T'1

■*

.v,

whatsoever."
WH<IT5Ut?YCr» V r*

converting "currency
into gold, with no restrictions
-'.A V

-T,<1

productivity,coupled with
ability to -sell products" at

the

pe0p]e

want,-and

illustrate the importance of

$75.1 billion,
but of this total only $21.5 billion
were
'*
against payments in hard

products

they

enabling these people

earn

the

1954 amounted to

-w

and
abroad.1,; As
supply
comes
.comes nearer to meeting ucmauu,.,
nearer w»-meeuns demand,

division, free world exports

VA v

homer

France the Sterling area,
Italy,
Germany and many others.
-

•

man-

this

are

into

Central,,'America.
v

the

arid

of real

;

fidu¬

country to pay its way, is

countries

some

S# S rvsrss "is sjbws

'^s

class has been phenomenal
under y1
the impact of widespread income
:
%
distribution. Your
opportunity to
educate this class as well as bank

officers

hear ,in mind that these are only
results.
The important factor,

currency exchange earnstrongeiv extension oHong-term tkS. supported credit,
including politicalrrisjis^ and -barfer of some products. Stresses
importance of Pound Sterling in world, trade and achievement

sources

are

con-ulated*^]^

Vertibilify.^psslble," and ^ubfit soft

Countries,

•

(or prododirect investabroad (2),commerce:liberalization. to help ^ e
make

Stents
lents

establishment
trust: funds as
an

gold reserves and
foreign exchange reof a country, but please

hard

Venezuela and

U.'SvShare of global ha
RCAforeign exchange
Specialist advises t (1): ^American bankers and business to purmore'£"£8U* long-range overseas expansion policy including stepped-up

on: a,

normally

freely
exchangeable against all others,
e.g., The U. S., Canada, Mexico,

may

basis. The

common

Currency

Those whose currencies

than -in >the > •}*:;:
be

will

creased ..volume

nomical
of

(a) Hard

talk \

first,of

of the

-Your

When

years.

about

major groups of countries today,
They are classified as follows:

.By GEORGE R. POTTER*

• •

15 £

productive

endeavors

they require to purproducts, a country's
health improves.
This

money

chase

these

economic

js UVUXAXig) new, but is sometimes
nothing
a'Va
ciary mysteries is boundless. In
&
mpptintr 'thk't^ir
Many tirhes-during -Z the .past rency countries used a large part currencies. Since the end of the forgotten, although it is basic. As '
meeting this ' task, "you should
war
in Korea, the share in exproductivity and efficiency in-?
lind
an
invflliS assistance in years people engaged in foreign oT the reserves they still had, to port markets of the hard
invaluable
•

r-.:

•

AIV »y j

„

•

derwntere.

citing

insurance

It should

challenge

every

P133.*

trade, and others, have asked what -purchase products from the unj thought of the
chances of con- damaged portion of the world,
vertibility. Currency convertibil- i.e.,-the Americas.
Since these
trust; ity, at best, is a
very large subject convertible
currency
purchases
un-

ex-:

and there

;

many facets to this

necessarily had to

MvvviutwuvvM

savings,
you
are
engaged
honorable business. You need
apologize for your profession.

ipiv/UlCUl

fiduciary capacity,

your

are

vv*,

you safe-

AWU,

cfimrrl
guard thp security nf many
the «ppuritv of mnnv

peo-

mean, thow
the type

sav-

arranged

ings into
and you

the

flow

r»pn-

our

expanding economy;
facilitate its growth and

help create job opportunities. The
heed

for

ing and
as

you

trust facilities

grow-

will meet the .demand

you

moon

tional
to

talk

Louis Stone Joins

Broad

within

try,

St.,

the

York

into

for-

merly: with
J. R. Williston
&

.Company

and

prior
thereto was
with

Horn-

blower

Louis

long

Stone

T^es,dcnt of Kugel,
Inc.

consider

cannot

exchange bar-

that

true

con-

I suggest that it is necessary to
look at some of the recent

hisfory

and

predict

careful

hope
to

disturbances will

•

result

the

whatever

preserve

Stock

Exchange, have
that Reginald J.
Knapp
them

trading department.
previously with

was

known

(

(Special to The Financial
Chronicle)

LOS ANGELES, Calif.
—Bruce

South
the

has

Hill

\t>

become

Richards

affiliated

Co., 621
Spring Street, members of
Angeles

and

ing

nnwr
power

did
did

not
not

maintain the

enable

soft currency

eliminating
exchange

countries

desired

im-

restrictions,

have

found

San

cisco Stock
Exchanges.

Fran¬

natural relaxation of
This will enable the soft

currency countries to

coun-

certain

controls.

is being

able
.

better
hard

reserves

them

referred

This announcement

and

was

practices.

that
be

their

left

means

currencies

freely converted
or

needed

raw

into

•_

mi...-

Thus

ments.

The
■

rnimtrv

trend
.

•

JUOb

world

_____

1—

uuumvu,

i"st°vu« for
disadvantages
disadvantages:for
exporter

since

markets,
.

areas

-x
,

the

gold.

does

not

give

_ __

]jmited

therP

equipment and

of the

matter oj record and is not

based

nara currency

multUateral

Continued

ojjering Jor sale oj

tl.ade

*An

address

per

Share)

to¬
all

Dillon, Read & Co. Inc.

con¬

products, which had been
built up during the
war, soft cur-

1956.

any

Corporation

Common Stock
(Par Value $7

by Mr. Potter before

the

Illinois

In¬

Institute

Trade, Chicago, 111., April 25,

April 27,1956.

re-

on" bUaterar and

did not represent financing by the Company.

Texas Eastern Transmission

sumer

h^rencsr
+

206,547 Shares

internal

arp

maintaining trade

ojjering thereoj having been made by the undersigned.

Such ojjering

pr"

anl

a0rppm(it(! 3Uh ^
Payments^ agreements with the

materials and to sat¬
some

ternational

mar

navmpnts

obtain

demand

University

highly

ixdfh

while

lations
®

American

could

into

isfy at least
for

the

currency

supply
among 1
iornnlitical unheav^ nr
themselves and outside the hard
disasters
one
can
rLtnr^
currency area.
It is unlikely at
° *asi<3 s 01le can reasonpresent that this trend will be he/? ^fter i p
morp rMdiW
reversed at an early date, since avajlable to 'th"
'' ft n[rr7n^
markets so developed are being
countries and one can also
<
retained and expanded by all
ft cnrrpnrip<? to hprnmp
possible competitive means. The:
to be morp rpadilv ronvprfihk*
latter include long-term credits
donars and eold
and capital investments, which
°
*
frequently involve direct finan* ,,1S development nas oecome a
cial support by. foreign govern- **eamy m bwitzeriand, a nation

sources

This meant,

unfortunately still

day,

by being

^be

+v»o

HMiPlnnmpht.
nf
markets
the development of markets

appears as a

these shares,

restrictive

much-

earn

hard currencies

to, once they started buying, and, us much immediate hope for a
therefore, even these countries better competitive position. How-

soft currency countries,
due to their limited
reserves, and

not

Now With Hill Richards

Dunn

and

,is,

started 1 the
immediate
postwar
period with fairly free economies
and made large purchases m the
maae large puicuases in
iuC
r
US. Unfortunately, their earnU. S. uniortunaieiy, ineu tfctui-

countries, • representing the j ma¬
jority of the free world, became

others

with

port
these;

lead

Containment

gold and freely convertible
foreign exchange reserves. These

Ira Haupt &
Co., Ill Broadway,
York City, members of

coun-

eventually
,.,uu
with
q

—

resultant higher standard of liv¬
ing and healthy competition, wil.1

their

New

among

tries

currency

since
since

consolidation,

of the Second World

War, many countries were forced
impose monetary,'restrictions-

Wertheim & Co.

economic

progress

g00(j
good,

occur

Knapp

Currency

soft

among

tries ' |s
tries, is

financial

Recent 'Currency History;-

;

unlisted

ma(je

analysis, one can only
no
major political or

upset

■j'-: As

Mr.

eyen

the

Even then, after

international
predictions.
1

with

Soft

Although

•

w
mUst
therefore
conclude
that "increased economic
activity

Germany and

giUm and Norway 40%; the Netherlands 50% or more.
•

goodn

51 VVV^>*

that

economic

associated

living.

ex-

Britain must export 25% of their
total production to survive; Bel-

so-

was

trends

reasonable

sheer guesswork.

the

out

rTg

e t

increases, and its potential
earning foreign exchange

currencies, and at the economic
facts as they present themselves
today, in order to reach any con¬
expectations' that
such forecasts might be more than

now

and

•/

m a r

abroad

potential

clusions

standard of

It,should be pointed out here and

with

Reginald J. Knapp

industrial

wwn

accounts,'against
in

^bimTof

being the gradual reo£ the soft currency coun-

whose

ex-

restrictions whatso-

vertibility is at hand.

announced

trade

devel-

the need of these countries to

throughout the world.

into

ing the sale of U. S.
ing the sale of US products, we

Reginald Knapp With
Ira Haupi & Co.

New York

drawn up and

were

clearing
;

crease,
and a country produces
the goods for which its resources
andf talents are
best suited
its

declined,

this

port more, in order to raise their

established, lists

currency.

currency

countries for transactions involvinVolv-

Co.,

Potter

country's

there is

tries,

for

s^« ^0"e obvio^to

G. R.

other
no

0pment
covery

steadily

reasons

At th
contracting countries in- more
g
■ time the
advantageous
to
trade
It is interesting, to note
DOrt*ities of increased investamong themselves and, therefore,
that in 1952, it was estimated
t
b
hard currencv capital
by mutual-trade and
payments
.reliable sources, that there were
agreements have continued and ?n
approximately 2,700 such clearing have been
the
very active... The aim
t
accounts; especially designed for of al| this
investor since tbe returns on
activity among dollarlateral, trade in .ex i s t e n c e
investments made in the soft cur *
^ countrtes has been-'and still

rier between the dollar and these

Weeks. Jn the

E??Lhl
Stone &

To cover bi-

products

volved/

that

any

that,

th?t, despite the generally dismal
ever.
It covers
merchandise,;capi- financial situation depicted, there
tal and all other visible and in- were, some countries
which, due
visible transactions.
'Admittedly, to* their Colonies or due to neuthere is
now.
trality, had built up considerable
i.e., partial or semi-official,'congold and foreign exchange , revprtibility ;in some areas,- and serves during the war. Among
-progress has been made recently these some of the South American
in this field by
Germany, Britain, countries, Belgium and Sweden,
the Benelux and
others, but as were the most outstanding. They

Stock

was

freely

gold, with

New

Exchange. Mr.
Stone

and

•debited and credited, .were set up

a coun¬

convert

York

City, members
of

called

non-resident,

Hayden, Stone
& Company,

trade

analysis, purchases and

specific

which

firm,

sident

r e

final

changed

indi¬

po-

and

has

chief

iiau

own,

other

sales would balance.
of

con¬

any

vidual

each

the

ibility,
i.e., the ability

Hayden, Stone & Go.

—

their

bilateral

lateral trade thus

will

full

currency

countries

•

vert

Louis Stone has become associated
with
/
'
-

New1

the
?

which

be devoted.

traders

and

for

complement

S. interna-,

this

have done in the past. "

ity of most
concern

payments among themselves, hoping that their economies could so

01 convertiDii-

direct

you

sitions, similar to

First, I would like to define for
you
the term, convertibility. * I

pie;

WVAV

lim-

very

^thereafter turned to others, in

Full Convertibility Defined

not

Winui 1UUOV

***

attorneys and life

Mvtv

page

Financial Chronicle.., Thursday, May 3, 1950

The Commercial and

(3144) }

aluminum
been

was again the
facet of the stock

Irregularity
dominant
market

after

week

this

list had mustered

just enough

strength to close a downside
gap that had been opened in

aluminum

end.

ac¬

three

chart

centered

than

not

manager

its

re¬

The

the

with

inspired anything
the play that has been

account
was

partner in the NYSE firm of Carmichael & Carson.
ber of the Wall

his

(Special to Tbs Financial Chronicle)

PASADENA, Calif. — Kenneth
H. Bays is now connected with J.
Logan & Co., 721 East Union St.

mem¬

With Merrill Lynch

Street FortiM.

(Special to The Financial Chronicle)

capacity Mr. West¬

new

divide his time between

cott will

Greene

He is

Ladd

Ohio

special

Joins Logan Staff

partment

Stock Exchange

Ticker
Tape," giving the story of the Ex¬
change.

in its research de¬

and

American

on
May 8 will preview a
motion picture "Behind the

has

Westcott

Mr.

1942

associated

executive. Prior to that he

often like

Westcott has joined

Trust Company

field hasn't

the

was

announces

department.

Since
been

petroleum
given-lately to other alumi¬
*
weeks earlier when the list one, with the secondary issues num OUtfitS.
Y %
V.V.".
* L'
*
*
went
into
its ^consolidating taking turns with the blue
chips in showing pinpoint in¬
phase. The market tradition
sales last year
vestor interest. Unlike most ;y Mueller's
is that such gaps are filled in
pushed to a record level of
other i n dust r i e s where a
sooner or later
but the fact
$67.7 million with the alumi¬
backward
member or
two
that the feat did little to spur
num work contributing 13%.
marred the record, the oil re¬
First Quarter results con¬
any new surge toward the alltime peak left the market's ports were almost universally tinued to show comfortable
comforting. Standard Oil of
future somewhat clouded.
gains over the same period a
California, which has reached
year earlier, and the company
the
price range that auto¬
estimated officially that the
The rail average has been
matically makes it a split
using the consolidation to candidate, was able to step 30% improvement would be
good purpose, nudging along out occasionally on a com¬ maintained for the first half.
to successively higher peaks
fortable lift in earnings, Projections put 1956 earnings
industrial

the

firm

aluminum

the

firm of Greene & Ladd

that John M.

expansion programs are

work

its

where de¬

Motion Picture

With Greene & Ladd

the

only beginning to pay off, but

Demand for the Oils

American Stock Exch.

John M. Westcott
The New York Stock Exchange

Aluminum Products last year.

Some

The major group

mand

toward

quired Sheet Aluminum Corp.
the year before and Vampco

figure. It once sold well

;

directed

the

above par.

the

diversifying

mostly

ing

STREETE

that

with the recent attention be¬

THE MARKET... AND YOU
By WALLACE

forgings, and has

active

offices

Dayton, Middletown and Spring¬
field and the New York office./

Record industrial

PASADENA; Calif.

—

William

Anson has become connected with

Merrill Lynch,

Pierce, Fenner &
Beane, 575 East Greene Street.

expansion reported in

that

the

are

1929.

But

best

they

since

seen

were

rather sizable $65
boost in capital ex¬

despite

million

in the

of $5

area

the stock

THE CENTER OF

INDUSTRIAL AMERICA

share, with

selling at less .than

buoyant this week,
eight-times such earnings, and
penditures last year. The ex¬
and Santa Fe, for one, was
yielding better than 5%. The
penditure, however, enabled
dividend was increased last
given to some persistent sink¬ the
company to boost reserves
ing spells.
three times more than last year and again recently.
tired than

The

market

concensus

year's production. An illustra¬
tion of the far-flung activities

imminence

The

wage

opinion overall seems about of such "international" com¬ negotiations with the union
evenly divided over whether panies is the fact that it has made the steel stocks a bit
new tests of the lows might
exploration crews working in nervous and chilled some of
be ahead before any serious 41 countries in addition to the the enthusiasm for this sec¬
thrust to

high levels.

new

;

Auto

domestic activities.

vides

production figures
dour, at least when

continue

tion that,

matched

Motors

stock

marketed

was

secondary in

of the better-than-

average

yields around. Armco

face of

record

Socony Mobil Oil was also
Steel did little
occasionally, a bit of

in favor

against comparable the
impetus stemming from a
periods last year and the
forthcoming 25% stock
automotive shares reflected it
dividend. Unlike Calso, So¬
marketwise with Chrysler a
cony was able to trim capital
bit more prominent than the
expenditures last year by
others because of its appear¬
nearly $52 million and boost
ances on the lists of new lows.
working capital correspond¬
Nevertheless a bundle of

nearly $56,000,000 of General

by and large, pro¬

some

temporary and
mild market approval. Armco,
incidentally, is about as im¬
mune to strikes as any of the

ingly. That the bare figures
the only yardstick is major

8%,

the:

only

given

companies

aren't

the fact that gross was up

even

profit for the
first
quarter of the year.
Similarly the boost in Beth¬
lehem Steel's payment was

Some

its

abound.
aren't

facilities

matter of
unionized
and
continue
to
but net was ahead by nearly
minutes. The 1,075,000 shares
operate even during industry¬
13% through increased divi¬
sold were for the account of
wide strikes, enabling the
dends
from
foreign opera¬
the Sloan Foundation.
company to produce at rough¬
tions.

Individual issues,
able

were

however,

counter

the

trend without,

ing

apparently, be¬
by the general

swayed

market movements to any im¬
portant degree. The issues of
the fallen blue

had

chip, Bon Ami,

whirl that

explained
nounced

when
that

finally
it

was

an¬

United

Dye &
Chemical had acquired a con¬

trolling interest for

undis¬

half

others

when

are

capacity
down

shut

linked pretty
completely.
closely with the fluctuations
of the price of the metal in
A Favored Rail
world markets, now well de¬
Among the rails, some in¬
flated from the recent peaks. vestment sentiment favored
Kennecott, in addition, had to
Chicago Great Western for
contend with
some
chagrin some solid reasons, not the
Coopers

were

when the annual

rather

told

off;cials

meeting

was

clearly that the
the

company

little benefit either in

see

stock:

least

being the good upturn in
for March reflecting

income

the

freight increases that

were

permitted to

cover wage

or stock dividend. Since
price had long since made increases prevailing earlier.
it a split candidate, it was
Despite the lag, the road re¬
on the news.
Issues of
handled a bit harshly marketported net income for the
companies have been

closed amount. The stocks of

United
whirl

both

Dye

were

also given

which

once

sold for above

split
its

well deflated in recent years.
The Bon Ami class B stock,

wise

occasion.

quarter that was comfortably
Undervalued Coppers

ahead of that for the

$70

The copper easiness turned
$6 the search for undervalued is¬
rather repeatedly until last
sues to those companies that
year when its low was $12. It stand to benefit from lower
perked up to a level better prices for the red metal, such
had

around

been

than

down

half

around

dozen

points
above that figure. The class
B stock, which has a dividend

had

record

yet to carve out

a range

much

dozen

better

century, sold
last year

than half

and
a

than half

low

lifted

was

dozen

$25

Mueller
a

which

of the results shown
roads

the

some

by other

expense

maintenance accounts,

has' cago

In fact, the issue has
half

company

points.

is the nation's

points from leading producer of brass and

Moreover, unlike

year.

of the
C h i

sites is

continuing and increasing.

Ohio Edison's annual report

points out that, in addition

the ntrmal increase in new industries

enjoyed each

25 major industrial companies announced their

year,

intention in 1955 of

spending $335,000,000 in making

large expansions or locating sizable branch plants in its
service
with
are

area.

Included in the fist of well diversified plants,

anticipated added employment of 17,500 workers,

manufacturers of cement, laundry equipment,

major automobile companies. Construction has started
on

some

of these

projects; others will break ground

later in 1956.

served by the Ohio Edison System

All of the territory

lies within easy access

of Lake Erie ports. Excellent rail,

turnpike and highway facilities provide the connecting
links. When the St. Lawrence

Seaway is completed in

1959, these lake ports will become
the Great Lakes

inland seaports tying

region to the markets of the world

Anticipating the needs of this growing territory and
making provision for them has kept the
struction program at an

Construction
and

System's con¬

extremely high level each year.

expenditures and other property additions

improvements amounted to $39,929,000 in 1955,

The estimate for 1956 is

For

copy

approximately $53,000,000. *

of Ohio Edison's annual report, write

L. I. Wells, Secretary,

Akron 8, Ohio.

Great Western actually

purposes.
[The
article
time

views
do

not

coincide

expressed in this
necessarily at any
with

those

the
"Chronicle" They are presented
as
those of the author only.]

steel

products and refractory brick, and branch plants of three

pedestrian market life increased credits for such

all year.

The

Brass

Interest in The Center of Industrial America for industrial

Ohio

Edison

Co.

General Offices

•

Akron 8, Ohio

Volume 183

Number 5530... The Commercial and Financial
Chronicle

(2145)
and

British

Technological Progress

the

increase

goods; and

the

volume

services.

But

unions and their members

intoxicated

with

their

retain

too

are

would
efits

power

Einzig

Communist-controlled Trade Unions' resistance

to automation

with the

rapid progress of Soviet automation. Notes the clever
timing of this policy to force employers to retain redundant
labor, and, thus, prevent British industry from matching com¬
petitive technological progress, occurred at the moment Soviet
leaders

wage

demands

long

were

iWay

towards

the

last

four

years—in 1952 and
again in 1955-56—the inflationary
conditions

L O N D O N,

brought

about

by the

Eng. — Amidst a
Lip-Service to Automation
;
wages spiral; forced
the British
woolly phrases about
British trade unions in
general authorities to resort to credit re"the friendly and peaceful inten-.
have been anything but favorable
strictidlis. The" direct and inditions of the Soviet Union towards
to automation.
It is true, in the rect effect of such
restrictions was
Britain" that
past many union leaders paid lip- necessarily a setback in the
progflood

emerged from
the

ten

service

day

visit

and

Bulganin,

the

sive
cold

the

war

aid

sphere of

a u

tomation

has

passed

ticed.
Dr.

Paul

Einzig

Communists

cold

have

unions

unno¬

ened

this

the

out

that

of British industry to
with the tide of techno¬

form

resolution

passed

by the Communist-controlled Na¬
tional Committee of the Amalga¬
mated Engineering Union, accord¬

ing to which the Union declared
firmly opposed to any dis¬
through redundancy.
Workers displaced because of au¬
itself

missals

tomation
full

are

found

for

in future to be given

until

other

them in

the

wages

work
same

matic

fac¬

firm is to introduce auto¬

machinery

without

dictates

the

gree
the

"con¬

policy

of scarcity of labor,
bargaining position

unions

should

remain

the

that
of the

strong

enable them to enforce the wages
demands that follow each other
with

increasing frequency. In the

absence

corresponding

crease

money

the

output

wages

the
of

means

corresponding

rise

course

prices

which

and

the cost of living to offset the dif¬

automatic

automation.

are

Union

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

buy,

any

of such

overlooks
of

that

later

capture

case

there

are

rivals,

bound to

large-scale dismissals,

workers

with

trade

organized labor to

see beyond
prevailing widespread fear of technological unemployment through automation

The

nose.

secures

for the Communists wide-

spread support in the trade unions,
Their

attitude is popular
the workers. Should employers refuse to comply with the
present

among

newly formulated demands, there
is a good chance for the Com-

munist to stir
The

Donald G. Col*

mission

Exchange, of adpartnership of"Donald

npwit7

Salt TakP

who

workers

1935

and

with the

in
„

San
.n

has

firm

been

associated

since.

ever

this

r1UD\

■

•

For the Past several

and

distribution,

its

held

in the satellite

progress

slowed

can

democratic

down

countries,

this

be
the

cause.

would

The fact

gaged in discussing peaceful

enable

number of

perpetuity.
automatic

new

through

are

thus

existence

with

the

were

with offices at 382 Jericho Turn-

British

en-

Kenny,

co-

Weber, Vice-President, and Mar-

Gov-

ernment recalls the experience of
the

middle

of peace

negotia-

able
to

those

fault of their

own,

them by the unions to

President;

Serpico,

Secretary

Donald

American Sees. Co. Adds
(Special to The Financial Chronicle)

GREELEY, Colo.

—

Donald H.

Campbell Adds

BOULDER, Colo.
Donald

Company,
Building.

to the staff Hamilton

of American Securities Company,

3%% Equipment

W. C. Langley & Co.

Central

Incorporated

now

—

Michael

Campbell

Investment

Mountain
He

was

Management

tion.

Trust Certificates, Series S

Dean Witter & Co.

Priced

Hemphill, Noyes & Co.
Brush, Slocumb & Co. Inc.

Elworthy & Co.

Mitchum, Jones & Templeton

Shuman, Agnew & Co.

JE. M. Adams & Co,
Mason Brothers

Camp & Co.

Issuance and sale of these

Sutro & Co.

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

such

Crowell, Weedon & Co.

Pacific Northwest Company

June S. Jones & Co.

HALSEY, STUART & CO. INC.

C. N. White & Co.

Zilka, Smither & Co., Inc.

May 1, 1956.

May 3, 1956.

yield 3.35%

Reynolds & Co., Inc.

The

Schwabacher & Co.

Savings

formerly with

$219,000 annually from June 1, 1957 to 1971, inclusive

(Incorporated)

associated with

guaranteed unconditionally as to payment of principal and dividends by endorsement
by Western Maryland Railway Company

Republic Company

and

(Special to The Financial Chronicle)

Maryland Railway Company

mature

Frank

Treasurer,

Campbell is

While

most"instances'any"obligationim- Lake has been added
on

3°rie

Jr.,

Pearl Harbor when Japan attacked
in

dismissed

Blair & Co.

countries.

when the Soviet leaders

may

legally be distributed.

F. S. Moseley & Co.

years

Soviet Russia

automa-

generous

To be

Company

Re¬

^as ^een Underwriting Manager
a^. H°Sle offices and will continue in that capacity, along with
manageship of the firm's security

increase

the

The First Boston Corporation

Incorporated

Britain, in order to secure a com-parative advantage for the Soviet
bloc in this sphere.
Automation
is making rapid progress in

(Philadelphia Plan)

A. C. Allyn and

£ Victory Fund Committee,

phase of the cold war is to handithe progress of automation in

$3,285,000

White, Weld & Co.

that this new offensive was pike to engage in a securities
large launched out at the very moment business. Officers are Thomas H.

Western

Kidder, Peabody & Co.

.,'

gional Director of the U. S. Treas-

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

'Merrill Lynch, Pierce, Fenner&Beane

Mr- Dewitz joined the firm in
1929 and
served continuously
since that time, with the exception of one year s leave of absence

cap

would

Price $100 Per Share

BIyth & Co., Inc.

J?3?

•

p,®!? er

Plus accrued dividends from date of issue

may

}*r.C°ieniL"S?1agef" 2

(Cumulative, Par Value $100 Per Share)

Prospectus

Active

Diego financial activities,

Preferred Stock, 5.10% Series

dealers in securities and in which the

Titv

joined the Hogle firm

in 1941-42 when he served

trouble,

other aim followed

to the Communist

dismissed.

can

employers

posed

Dewitz

New York Stock

high rate of tions. The lessons of this modi-,
obsolescence cannot be profitably fied repetition of history are all
undertaken unless the superfluous well worth retaining,

afford

Company

sufficient

employers to retain
redundant

the

The California Oregon Power

equip-

reallocation

instances

not

workers

70,000 Shares

members

J, H. Kenny Co. Opens
K
other industries secure
immeasurable
economic,
MINEOLA, N. Y.—T. EL Kenpresent handicapped political and military advantages nY & Co., Inc. has been formed
the

productivity through

tion

Co.,

Amalgamated Engineering

number
of

sooner

their

by shortage of manpower.
The

Dewit*Colebait Lake City.
ol
Mr.

of view of the reduction of prices
that would enable consumers to

power

Britain, pursue a two-fold
They take advantage of
the inability of the rank and file

would be necessarily detrimental from the point

prevent

Hogle

object.

featherbedding

also

Hogle, Managing Partner

G Cole of gan Diego and Herbert

workers at full pay in permanent
idleness. Even so, the practice of

labor among

"ni0I}S)Jn. resisting automation in
Great

productivity
to
such a degree that the employers
can afford to keep the redundant

benefit

Herbert

instances the

some

James E:

industries

Two-Fold Objective

increases

equipment

nof an

Britain.

ment

where

the markets of their British

in which

out

come

slow down further automation

It is true in

countries

Communist-controlled

pretence and

The installation of

This is

able

quite openly with a set of claims
which, if accepted, are bound to

in¬

ference between the rise in wages

sulting" the Union.

this

introduction

enlightened. Instead of aim¬
ing at raising the volume of out¬
put they aimed at raising money
wages.
To that end it is neces¬
sary to maintain the existing de¬

tory. The resolution also demands
that

em¬

from

progress.
The announce¬
of the new policy assumed

ment

encourage

British trade unions has been far

logical
the

Unfortunately, the self-interest

efforts
up

utmost

tion at the utmost speed.

openly with their plan to sabotage
keep

by enlight¬
they would do

card

SALT LAKE CITY, Utah—An¬
nouncement
has
been made by

allowed to proceed with autoThose industries will be

are

AmalgaEngineering Union to dis-

mated

Hogle & Co.

worth

mation.

Communist-controlled

ployers to proceed with automa¬

war,

come

dictated

were

self-interest

their

phase of

new

the

of
improved
technological
equipment. And the real wages of
the workers inevitably depend on
the output. If the policies of the

the

almost

other

of.automation.

raising the standard of living.
They could hardly do less, since, .Hitherto most union leaders,
amidst
over-full
employment while opposed to unhindered progthere is ho possibility of increas¬ ress of
automation, were at any
ing the output otherwise than by rate anxious not to appear to be
increasing productivity with the onnosed to it. It was left to the

offenin

ress

Higher jtiiccs ana r eameroeaamg
Prices and Featherbedding

a
^Com¬

munist

techno¬

msiier

launching of
new

for

need

ening of the competitive

logical progress in the interest of

Kruschev

the

In J. A.

great many

not

have gone a mation,
they are exposed to unhandicapping employment through thestrength-

the
progress
of automation
in
Britain. On two occasions within

interest policy of British Trade Unions.

would

Cole, Dewitz Partners

ben-

automation,

their while to proceed with auto^

sive

discussing their friendly and peaceful intentions
towards Britain. Expresses alarm at the
short-sightedness
displayed towards automation by the unenlightened, self*

from
rule in

workers

oL the

Although they have been pay- mation.
'
r
ing lip-service to the need for
There is reason to fear that the
automation, most unions have in workers will have to
pay sooner
fact been doing their best to slow or
later a heavy price for their
down -its
progress;
Apart from short-sightedness. In addition to
frequent instances of insistence
preventing them from benefiting
on automation
being accompanied by a higher standard of living that
by "featherbedding," their exces- could be achieved
through auto-

the concealed sabotage intent of British

compares

derived

instances

their attitude.

By PAUL EINZIG

redundant

deprive them

Under such

stop to think about the futility of

Dr.

the

McMASTER HUTCHINSON & CO.

Corpora-

(2146)

Brooklyn, N. Y. 25-Year Club, at
luncheon

the

News About Banks

received

meeting

National

First

New

York
a

Leaber

has

since

Chester

the

bank

with

has

lnwpr

from

Total

had

extensive

banking

level

with

floor

the

entrances

ouilding lobby,

mam

ground
the

from

President of the

membership

Mr.

63.

now

the

Fertig,

member of the Sav-

Auditors

and\;Comptrollers Forum, presently serving
their

TV/Ty*
Mr.

j3efaxcations

Qoomc
Saams

ic
is

Committee.

mamHor

r>f
of

member

iY\c*
the

$ 2* ?£nk
01 me DdI1K
election

Lester

Trustee

R.MaFlatbush

is announced by John S. Roberts,
President.
Mr.
Mahoney
is
a

associated with the Overseas

the vault and depositors facilities,

has

branches

the

Division at the bank's Head Office

ers

counter,

the

York.

*"
«rf

First

New

♦

National

York

City

Bank

has

appointed
George B. Humphrey, Jr. and F.
Thomas Ward, Jr. to the position
of

Assistant

Cashier.

Mr.

72nd

Street

Office

the

'bank, will be assigned to the 42nd
street
Street
uiiicg.
Office.
ivir.
Mr.
ward,,
Ward, who
*

has

been

the

Domestic

main

Official

Assistant

Division,

that

...

will

in
re-

of William

•Anthony

as an Assistant Secretary of Manufacturers Trust Com¬
pany of New York

announced

was

April 30 b,y Horace C. Flani-

^esld„ent;

—j

Mr-

Anthony

jomed Manufacturers Trust Com-

June, 1942. He

pany m

assigned

^/he International
Latm Amencan Division
of the

Banking Department which comprises, in addition to Latin America, the EutfT
n-f
Ci^iriiv\
l-opean
countries of Spain 'and
PrU'XCID n

OA11 n

Portugal.
With
"»u«

tuc
the

appointment

Vestman

ati^immciii

Rehg
Secretary and
as

Mrs.
xvxi».

Assistant

Mrs.

Edith

Assistant

Man-

eger of Manufacturers Trust Com-

of New

l.any

May

York

announced

2 by
Flanigan,
President the number of women

Horace^.
""

taficers at the

bank

telletc.

wun

the

merged under that

Earl
Chief

Harkness

President

Executive

Officer

and

The
ine

Vork"Wh?sSaaYsogS^enk fleeted
has
__

?£

ifIt

cha,rman Clarence M. it
of 1he Eoard

is anClarence M. Fincke reFincke r-

i-i*

nonnced.

foQo S

fleeted3President ami Trustee ?n
thich oRicel he held until
when

Fincke

Mr.

jjome

Seaboard

Life

Mr.

officer

the

Company,
Company and

and

elected

was

Chief

Executive

Trustee

Com-

The

Greenwich Savings Bank on Nov.
ik

1040

since that timp the
_

0f'growth

rate
.«

•

of the bank, the third
oldest savings bank in New York

City, has, it is indicated, been one
nf
+hp
prpatpst
of
the
greatest in
in thp savings
the
assets from

chairman

savings

^nf Ld

Bank^

Mr.

Qther

accordinS

...

election

Jr.,

ivarese,

Colonial

Anthony

director of,the

as a

Insurance

^deration Bank and Trust Comannounced

pany of New York

was

April 30 by Thomas J.

Siiana-

1 an, President. Mr. Savarese is
a
iTiember of the law firm of Mum-

Crane,

na,

Costabell,

Cloutman

Savarese,, New York City,
member

the

and

New .York

Mate

Assembly, having held that
post since 1948. During 1941 and
iid9

iu,-

3 942

Cmmrorn

Mr.

Savarese

served

as-

ristant counsel for the New York
Uiate Joint Legislative Commit-

tee

Industrial

Labor

Starting May 1, interest

sav-

accounts of the Federation
J lank and Trust
Company of New
York

will

terly

compounded

the

rate

President

i-nnum,

.Shanahan,
to

all

lrom

O PP/M 1

$10

by Arthur S. Klee-

IGeeman

thp

states 1±atthe

i L.

with

international bank-

dUione™

the

^fe

fnTroo^
,,re
opp

'thp
the

nn
Qn

deposit

vaults

hankinff
banking

main
main

flnnr
floor

been%rovided
provided.

•'

$25,000.

Deposits

ilew York Coliseum at 10 Columbus Circle
It maintains other offices at 34th Street and
8th Ave-

iiue, at 6 East 45th Street and
41-84
Main
Street in

Flushing,

Queens.

9?nd

ThP

annual

nimp

rnmnn^pH

employees
I-

contract

build

up-

branch office and vault for
the Bankers Trust
Company of
Xew York, at 415 Madison
Avethe

northeast

Street, has been

William

Company.

Crow

The

Construction
for

the

The

Dime
N.

Savings Bank of Brooklyn,

will

Y.,

held

Saturday

evening, May 5, in the grand ball¬
room

of the Sheraton-Astor

New

York.

than

^pmVTpr<? an'd^iip^tT ^rp
to

Hotel,
500

pvnppfpd

attend

according to Francis J
Kenna, President of the organizati0n.
jn

The Dime Club

was

formed

^933 to further social relation-

ships

members

among

ficers

besides

Hugh

Mr.

the

sponsor

Field

Open house will

house

the

and

half.

office

Roosevelt

about

A former

Field

year

airport, the

area

the

of development into an
industrial community,
an
office

process

building

and the largest

area,

gional shopping center

Long

T Si]

re-

The

Lincoln

Kenna

Island'

FirH

Na-

its

capital

T*e

First

Wallingford,
of

National

Bank,

whlch

^
per annum, compounded
0iuarterly' wil1 be extended to the

Interest

savings deposits
of these amounts will be

excess
sess

paid

the

rate

per

an-

*num

B*r»k

$200,000,

was

l&S

lparned lrom (hp
learned from tne

l^Xr

th°

wpeklv "Buiweekly
tsui

Currency

trojle• of th<i Curt
*

The-recently

President

the
uic

Long
uu..5

Island
*3.a..u

The

Bank

enlarged

Tom.s

Kiver,

April

18.

The

issu-

of 3,000 of additional shares

ance

National

Philadelphia,

according

tup

±"llct

oi April

relinmr^hina 1. 1 A
nquishing the post he

has been

elected

chairman

o£

tive Committee.

the

Mr.

Exeeu_

Krumrine

joined thg bank £n ig23 a3 vice_
President. The "Inquirer" reports
aetive
was

of
ui

Pennsylvania
tion. Mr

toLn

President

banking af_

recently
iironn
i
Group
1
Bankers

elected

Bank

Tne

Associa-

n?wly

the

ot
of

elected

Liberty

Real

Estate Bank & Trust entered the
banking

business

1Q9R

wRh the Wyoming Bank

cierk

of Philadelphia.

When

?™.L£b<** in
to the "Inquirer"

Vice-President, he

Vice-

was

The

of Newark, N. J. and
Irvington Trust Company of
irvington, N. J., in special meet-

President, Treasurer and Secretary of Wyoming Bank. He was
made Vice-President-Treasurer
of Liberty in 1950 and Executive

ings 0n May 1 ratified the prop0Sal of National State to acquire

Vice-President in 1952.
When Mr. Krumrine joined the

State Bank

through merger and an exchange
0f stock, the property and assets
V>/-1

nnnn w» r\

the

linVvil

the

assume

deposit liabil-

Trust

Company,

shareholders of National Sca.e at
the same meeting, voted approval
of

two-for-one

split

000

additional

the merger;

also, for

for
a

Liberty Real Estate Bank
it is stated that its assets
PtfiH HAA

500,000.

use

change in

terms

the

agreement,

tne

12,000 outstanding shares of Irvington Trust Company stock will
be exchanged for 32,0C0 shares of
$12.50

new

the

value

par

announced

$7,-

"Inquirer"
^

AV„V

ent time.
♦

♦

A stock dividend of
$15,150, effective April 16, has increased
the capital of
the Peoples National Bank of Norristown
Pa

the par/aluG °f the st°Ck f-m from $757,675
$25 to $12.50 per share.
Under this
the

& Trust

were

his

leadership
they rose to
than $90,000,000 at the
pres-

the

says

Under

the

bank's 180,000 outstanding shares
of stock, and the issuance of 32,-

Earl^r

to $772,825

year, on March 6, the bank's
capital was brought up to $757675 from $541,200 by the sale
of

$216,475 of

new

our March

stock, as noted
issue, page 1552.

stock.

intention

the directors of National Sta'.e to
incorporate
iiAwpwdic
the
tne
cu-lcih
20-cent
cau«
extra

69.

was

Well known in
wn m

quarterly
mucx 1

financial and automotive circles, State

Colonel
the

Horton

joined

Pol

nfi

rt P w-i

the

Motors

General

Corp.

salesman

Chevrolet

Retail

ovi

for

Stores

4-L

staff
ol J

the

in
old

New-

ark,

N. J.; New Haven, Boston,
Providence, and New York City,
He became Assistant Manager and
then Manager in Philadelphia of
the Retail Division of Chevrolet

The death occurred

April 22

George H. Stewart, President

the

Valley

National

Bank

upon

his

transfer

New

last

900,000 and has
900,000.
pi

The

ilpto

outstanding
from

National

year.

capitalized

now

surplus of $12,-

number
OHO

v»p

$4,-

f\C f\

s'.iares

iA/>Pitl + i

are 392,000 resulting
split and new stock is-

the

With

of $242,256,593
March, National
State, it is indicated, will acquire

sue.

the

assets

result

mer

assets

end

ter states that
member

$15,000,000

"rwr

Stewart

was

;

was

tsame

Monument Commission
\yarip F

enne^»

uallf*

Presi-

^tate Bank» of

Holivwnn#i
.

XCl

PiTtl^

member

uLfl
Wnrl!J

StatP

War

the

merger.
The forand only office of The
Irving-

the

The lat-

1921-22 and after the First

excess

thl

stated in

Philadelphia "Inquirer."

became

Vice-

President of

York City, Regional Manager. In
1939 be was named Dealer ReNations Counsel on the Staff of

ton

Trust

Company at 732 Nye...
Avenue will be renamed the West
Irvington Office of National State.

the

All

officers

lowingthe

General

X-V AttV»p1 p4

Sales
Mpf

Manager
vyp

of
+L

and

GhevroJet; "e re£ired £rP.m tbe be retained,

General
1940.

Motors

Colonel

World War II

Corporation

Horton

served

employees
J

and

California
Bank of Los

Angeles

will

two

ing with the
Hollywo o d
State Bank in
1930 and
c a m e

State

Island Trust Company engaged in now has 16 offices—13 in NewPublic relations. .
ark, two in Irvington, and one in

Bennett

entered bank-r

IslPnd Trus' Company, in 1944, former President of Irving Trust
and a£ tbe £lme. °£ bls. deatb he Company will be Chairman of the
National

banksi

Mr.

.bining with a similar Board presTransport Division of the 'ently serving the bank's other
First Air Force, Hempstead, L. I. .office in Irvington at 685 ChanHe 3°ined the staff of the Long cellor Avenue. John R. Franke,

combined Board.

The

new

Drive-in office of Na-

9rangu' D?fabs
the

absorption

an announcement by Ralph
Tyner,
Jr.,
President.
The
bank, offering complete services,
including checking and savings

the

f*3!18 for

Irvington

April 6 of the

Lieut. Cob in the

was a Vice-President of the Long

fol-

merger

Advisory

in Board appointed including former
in, Irvington - Trust directors, corn-

^°^or

are:

into

Pa.

of
Trust Company, Garden City, dividend voted last year into the
Chambersburg, Pa.
He was 68
L '' N- Y" and former General regular dividend, thus placing the years ol age.°His death"
whi c"h
Motors Executive, died on April new stock on a 55-cent quarterly Was
sudden, wa? attributed to a
29 at his home in Garden City- basis as a§ainst a comparable 50c heart attack utas

inducted

of
of

Co.

^TSSSPg aUhi
«Tnmiir3

The

announced

Liberty Real Estate Bank

Trust

KTim" ^ ^ * he ** t0
according

Shareholders

ac¬

President

common capital stock of the Trust Co.

April

Mason

capital chairman
v^iicuxmaii

J„ increased from $870,000 by the sale
effective

election

—

of $900,000 of the First National

Harry L. Horton, Vice-

government wartime banking

tivities.

....... thgt he js
fairs
and

the

bythe

the

Colonel

Banking Co. The "News"
states that rhirincr WnrM Wor I Vic
that during World War T he
was placed in
charge of the bank's
Liberty Loan program and other

Albert

voluntary
v™y.
pffpptivp
effective
April 17 having been absorbed, it

ities
Franklin

Essex

ctofpc

from

Conn.^Uhplaced
common

stock

Hioo

The

Newark Banking Co. which later
became the National Newark &

stock

National

According to the New-

facturers National Bank; later he
became
Manager
of
the
Iron
Bound
Branch
of
the
National

the

and

of-

Savings

the

16,

increased

Y„

dent
Wade

Bennett

be-

Presi¬
1950.

V i

c e

President of
*

the American Bankers Association
for the State of
California and im-

Trust by the National State Bank mediate past Chairman
of Group
Newark appeared in our April
5^ 0f the California Bankers Asso5 issue, page 1690.
ciation. The

ing to
were

April

$150,000
dividend of $25,000.

urer.

men

held

tional Bank, of Richfield Springs,

temporary quarters.
A
office building will

tional Bank of Westchester, at
336 Central Avenue, White Plains.
N. Y. will open on May 4 accord-

Two

by
Mrs.
Jesslyn
M.
Arnold C. Jorgensen,

nornmAnv

modern

Vice-President;
Miss Dolores A. Daken, Secretary,
and Howard W.
Pollock, Treas*

National

ark "Evening News" he began his
business career with the Manu-

Other

White,

♦

and

on April 20 was 83
years
He served the bank for

years.

Friday, May 4, following a simfr*
inuiidnraffi
pie ceremony to inaugurate the

^oosevelt- Field, of

T^oseveU

awarded the

plans

corner

Hinnpr-danpp

Clnh

and

the Shopping

Centfr

and

personnel and
charitable
activities.

town

Thp

bank's

The

annum

nounced on April 27.

officers

per

all savings accounts from $5
to $25,000, effective May 1, Joseph
Pulvermacher, President, An-

apply

increasing its

Macy's,

11 wil1 be known

1915

2%%

1° T? .in .August ?£ thia year- °£$3?,C00 of new stock became
just across from

miC

Sterling National Bank & Trust

the

serve the
Roosevelt

Located

Jr.

Roth',

shopping Center, scheduled

His age
°

and a ni«ht aeposiiory facility has
ana a mbnt depository taciiity Has

balances

new

and

parking for
bring to 17 the

offices

Field,

will

one

needs

institution

domestic

April

made up to the 10th of the
month
will figure in that month's inter¬
est.
Federation Bank and Trust
now
has its main office in the

nue,
48th

Island,

Roosevelt

Arthur

Prp^iHpnt

man

F'ield

per

Thomas
rate will

accounts

quar-

of2%%

announced

The increased
PI

from

Avenue, according to

interest rate to

f 'gs

adequate quarters

149 Madison Avenue,

announcement

accounts up to $25,000 W
and
joint savings accounts up to $50,-

Company

Co. of New York is
*

£5.

Madison

Condi-

tions.

Trust

Long

ouc

Savlngs inSs
)£

Company,

York has moved its Midtown

office to

President. This

000.
The

office

Harkness

Trustee

Director of

Trust

Square,

Bank,

the Paymen* of interest at the

Life

age.

Westchester. .Roger G.
will be the Manager,

assisted

is
is

National

increase in

and

Bank

name.

$186 million to

about

$500 miHi0n.

over

are now

~-anklin Square, N. Y., has announced that beginning May 1,

banks svstem with

Wentworth
Quick

& Essex Banking Co. of Newark,
Mr. Pittenger, whose death

serv-

Y" h,?s ann0"nced fpP™Jal o£ New Hav^n cinn
lts aPPllcatl0n
establish an- New Haven, Conn.

new

Insurance

Harkness
and

24.

now

Director

Surety

President

Chairman.

insurance

Manhattan
pany.

became

Life

Franklin

nounced.
£.e ,.as Chan-man of the Boa^d,
ne
iviay i
Deid.ne
effective may x. rie became «
May X. He oecame as80cl?ted p
i!1

1943

v.qwuiw

Westchester's
drive-in

free

will

$125,000

5&.SS
associated

been

organizations which

Franklin

has

1918

since

of
and

will

area'

rooms,

level

street

Bank

of The C^ase Man-

Public banking area, tellers
counters and banking operations

Charlotte

with

area

storage

•„

enecuve

division.

The appointment

will

basement

public banking

Hum¬

phrey, who has been Manager of
'the

Savings Bank, ot Brooklyn, N.

lators.

in New

The

well

The

side and at the corner, and space

tive offices. Basement and main
floor will be connected by esca-

bank's

Shanghai,"

mow

ice,

the 48th Street

Peiping, Rangoon,
Tokyo, Calcutta, Bombay, Mexico
City and Manila. " Mr. Leaber - is

the

occurred

Bank

Line-o-Credit

business
department start of business.

honey

experience.

served

tional

start of

the second floor of the building to be used as uptown execu-

overseas

N. J.

number

May 1 UBuKing ICVCI
of. casement of the building,
Mr.

1920 and

fnr

Bank

Vice-President.
been

4.0I1

TVnct

of_ the Ba

City

appointed

Leaber

watches

Thursday, May 3, 1956 1

...

accounts, safe deposit boxes, personal and commercial loans, Na-

customers,

is
Auditor, is
ings Bank

Board of Directors held
The

inscribed

group

regular

members,
Arthur Saams,

new

and

the bank and

Club.

CAPITALIZATIONS

Bankers

and

OFFICERS, ETC.

REVISED

The

Fertig

them

August H. Wenzel, Vice-President

BRANCHES

NEW

tendered

bank.

Fred

CONSOLIDATIONS
NEW

■

The Commercial and Financial Chronicle

merger of the

*
The

death

*
announced

wood

James W. Pittenger, retired VicePresident of the National Newark

fornia
our

State

Bank

issues

and April

12,

was

with

April

Holly-

the

referred

Calito

5, page 1691

page 1824.

Volume 183

Number 5530

The Commercial and Financial Chronicle

...

(2147)

Richfield Reports
1

•

JN SALES

...through better SERVICE

people!

to more

BALANCE SHEET AT DECEMBER

Assets

1955

Liabilities and

1954

Current Liabilities

Current Assets:
Cash

$ 13,755,825

receivable, less

reserves

Accounts

$ 12,743,038

13,900,000

23,294,171

United States Government securities, at cost
Accounts

31, 1935 AND DECEMBER 31, 1954

35,701,797

1955

securities of

$16,100,000 in 1955 and $12,700,000 in 1954
thereof

the aggregate,

Instalments dues within

Materials and supplies, at or below cost
*

$100,055,933

Capital Assets

—

Advances, at cost, less
Oil and gas

reserve...

7,017,494

4,245,053

•'

equipment and facilities, terminals, office buildings, etc.,
established by the Board of Directors as at

—

year

$366,523,696

Reserves for

Deferred Charges

$333,177,661

174,194,264

153,654,572

$179,523,089

depreciation and depletion

year

3.85% sinking fund debentures, due 1983....

Reserve

for

4,147,709

4,215,328

5,086,892

$304,489,751

39,000,000

$ 84,000,000
$

Contingencies

202,647

Capital stock:
—

Outstanding

7,500,000 shares without

—

par

value
$ 74,699,277

4,000,000 shares

$ 74,496,630

121,910,135

106,300,687

4,719,906

$196,609,412

$180,797,317

$289,904,377

$304,489,751

$289,904,377

504,578

939,183

Other

38,500,000

Stockholders' Equity:

Authorized

Taxes, insurance and rents

25,000,000

2.85% sinking fund debentures, due

$ 81,000,000
"

$192,329,432

Less

$ 20,000,000

year):

13, 1937, plus subsequent additions at cost, less

retirements

$ 17,500,000

one

1974

Thirty

at amounts

March

•

3,249,118

247904,413

$ 26,880,339

payable to banks (3.25%), due in equal annual in¬

Twenty-five
.

stalments to 1963

lands and leases, oil wells and

equipment, refineries, marketing facilities, transportation

J ■

(due after

$101,416,329

Notes
and

3,000,000

3,777,024

25,000,000

Long Term Debt

<■

6,435,002

7,148,438

24,071

7,797,015

3,000,000

long term debt

27,461,171
.■

Investments

one year on

Other liabilities

29,549,873

below market

49,810

8,176,437

Other taxes

Crude oil and refined products, on basis of cost deter¬
mined by the annual last in first out method and, in

$ 10,834,209

income less United States Government

held for payment

Inventories:

1954

$ 11,877,068

payable

Federal taxes

31,482,947

Capital
:

Earnings employed in the business

INCOME ACCOUNT FOR THE YEARS 1955 AND 1954
1955

1954

Gross operating income

$245,295^088

$223,310,969

Cost of sales and services

$139,782,484

$130,205,210

Selling, general and administrative expense

26,336,783

25,772,250

Depreciation and depletion

22,493,965

20,633,985

7,611,309

7,671,135

Dry hole losses and abandonments

$196,224,541

1,416,918

$ 50,451,726

Production of crude oil

—

Crude oil

net

and

Interest

bank loans and debentures

income

.....l,

Net income per

17,900,000
$ 29,609,448

Net income i

WE WILL BE PLEASED TO SEND YOU A

COPY

RICHFIELD
Executive offices: 555

South Flower Street,

OF OUR 1955 ANNUAL REPORT.
WRITE: SECRETARY, RICHFIELD
555 SO. FLOWER ST.,

$7.40

$31,736,557

5,666

Ncpber of employees at year end

$ 47,509,448

Provision for Federal taxes

40,122,000

$33,939,000

2,874,606

•

s.:

20,809,000

41,137,000

50,876,000

products

20,729,000

5,520

Payroll

Payroll and employee benefits

Nonoperating income

1954

26,746,000

44,508,000

processed at refinery

Sales of refined

Employees

1955

26,723,000

gross.

$ 40,445,307

_2,942,278

Barrels

$ 39,028,389

1,381,179

Production of crude oil

$184,282,580

$ 49,070,547

Operating Statistics

OIL

Lds Angeles 17, California

OIL CORPORATION

LOS ANGELES 17, CALIFORNIA.

CORPORATION

The Commercial and Financial
20

Chronicle... Thursday, May 3,

1956

(2148)

Savings and Loan Associations
And Principles of Borrowing
MOONEY*

By GEORGE A.

mortgage

for

demand

the year.

money

for the greater part

not match

do
of

One big reason, as you

know, is the peculiar bell-shaped
curve of home
building in much

sociations
In

Bank

Superintendent

urges

N. Y. State-chartered Savings and
restraint to help "stem

Loan Associations to exercise borrowing

In practice, it is hard to object
seriously to borrowing that evens

have other financial
institutions, to the call for monetary discipline. Compares com¬
mercial and savings banks' policy of borrowing only as a
matter of last resort with savings and loan associations who
make borrowing "a relatively commonplace event." Admits a
new look and reappraisal on the subject of borrowing is needed
in order to hammer out a sound, firm policy suitable for the
inflationary tide" and to respond, as

the

everyone

that

ceptions

advances, howrecognizes the exmay
have to be
If it

made for distress situations.

takes

ten year loan to work out

out these temporary

the

between
for

difficulties and put an

where seed loans are ex¬
in the spring and repaid

after the crops are

borrowings

all sources as of year-end
1955 shows: 65 associations reported less than 6% of total resources accounted for by debt, 11
associations had between 6 and
10%, and two had between 10

from

thoughts. Before we apply and 15%, and only one association
the operation of our as- had a ratio greater than 15%.
sociations in New York State, let *
You may be interested in the
frequency with which associations
are
found in the borrowing col¬

look at some history.

Historical View

idea of

The

of funds from

umn.

central reservoir

which savings and

borrow

might

associations

loan

state

For the last five years,

associations

indebtedness

reported

every

while, by contrast, 30

some

year-end,

associations

consistently revealed a total absence of any borrowing.
For the
ings and Loan Bank of the State rest, they
were
rather evenly
of New York was chartered and divided
between
one
and four
this served as a" model for later borrowings in this five-year peFederal legislation.
ri0d.
The Federal Home Loan Bank
The Banking Department takes
back to 1915 here in the EmIn that year the Sav-

goes

harvested.

breakdown

ther

these to

pattern has long character¬
lending by commercial

tended

its feet, who

tribution? * I am afraid we have
no public statistics. In our Statechartered system, however, a fur-

ferent

farm

banks,

changed conditions of modern times.

supply
Much the

and

funds.

mortgage

same

ized

discrepancies

demand

portfolio

mortgage

of ..individual
associations
and what is its dis-

ings

nationwide

issue stands.

long-term

ever,

back

fully justified. And

are

the

there

that is in
institution
is to quarrel
plateaus in the summer months,
over fine points of theory?
and
the
seasonal
recession
of
So here we have a lot of difhousing starts in the fall.

of,the country: the usual rise in
the spring, the peaks and high

State of New York

Superintendent of Banks,

is, to, some extent, seasonal. The
monthly inflow of savings and the

pire State.
Scarcely

has

year

gone

within the past decade without
the setting of a new record
kind

another

the

of one

by savings and

Your

wmrnm

iftiP'

growth and
tell

success

those

billion

by
from

the
the

associations

Loan Bank of the
New York has been a

and

relatively commonplace event.
The
department's interest
in
borrowing in the past has stemmed

dollar

its

liquidity.
liquidity," we believe,
less self-reliant institu¬
one where liquidity is

total

mark

borrowing

loan

State

passed the

and

By
savings

only of last resort.

matter

Savings

reached

now

•

Federal Home Loan Bank

b y

have

State

and

York

New

concerned with bor¬ possible withdrawals during divi¬
loan asso¬ dend periods. In these days of
As you know, borrowing rate-conscious
competition
for System originated in
widespread in your in¬ savings, people wait until divi¬ time when mortgage

contrast,

you

chartered

Department

from

"Borrowed

resources,

forcefully

Oeorge

re-

minded

Types of Borrowing

Temporary borrowing, as you
know, may arise to take care of

long been

ciations.

that

rowing. The Banking
has

dustry than in commercial banks
or
in savings banks where it is

eloquent
story. When I
think

detail

rowings by savings and

loan associa¬
tions.

explore with you in greater
the broad subject of bor¬

and

t\.

muoney

denotes

than

tion

over

concern

stitutions.

funds.

market, just as much as between

right across the street.
have the "Christ¬

institutions
Then
mas

also

you

Club" outflows in November.

Next there is intermediate bor¬

grade

mate concern.

Act

Borrowing Policy Reappraisal

The

cays

wnen

you

reappraisal of bor¬

rowing policy is definitely needed
at this critical time. For the health

felt over¬

other savings institutions of greater size must surely
by

awed

general

economy,

our

the less borrow-

d0 for the time being, the
better off we all shall be. Because

even

jng

passing into history. I say that,
though I realize that you,
here in New York State, live in
the shadow of financial giants, un¬
like associations in many other

matter

row,
sure

was

for

the
the down-

put together,

had been

three years. The job
did not look easy. No-

going

body in his right mind was
to be

unduly technical about maadvances.

turities

knew that it would

the

economy

Everybody

take years for

pull

while the original need

What about) future borrowing
policies of savings and loan associations and future lending policies by their reserve institutions,
after the present inflationary upsurge has passed? To discuss these
policies in any detail would lead
me into neighboring jurisdictional

its territory which I hesitate to enter
uninvited. Let me express my per-

out

doldrums.
But

/•

Future Borrowing

Loan

Home

the

for

sonal belief, however, that a new

liquidity or to make up long-term lending has mercifully look and reappraisal of borrowing
an impairment of capital.
passed,
other possible uses
of policies is needed to help us reWhere do we usually find in¬ long-term credit for savings and orient our thinking about borrowloan associations have come into ing under the changed conditions
termediate-term borrowing? Well,
view.
One of the facts of life * of modern times. There are queslet us take areas such as the many
in these United States is the long- tions
of maturities, of interest
rapidly growing suburban loca¬
standing savings deficit of many rates, of screening
tions.
The lending
capacity of
of
the
Southern
and
Western rowers, of open market operations,
many associations is probably not
states.
To finance their needed an<?
°*;her aspects of system
quite up to the demands of people
and
equipment expendi-• activities that
us
who need homes. So this shortage plant
tures,
local improvements
and here JJ New
of
mortgage money has to be
either for

appreciative. They are
A

tered

•

of recovery

enjoy.

So to help in

up.

time

the

inally short-term advances.

country

which you

these figures,
our State-char-

resulting from removals of nom¬

they virtually dried

before
their

Bank

spreading the word. Their "thank
you" is the tremendous patronage

which show that

putting some life into home buildSuch shifting may occur between ing, central reserve banks were
different savings channels, such as created and given extensive resavings accounts and the stock sources and lending powers. Conshift

significant role in the na- not offset by indebtedness,
This borrowing raises more seri¬
Nor has this fact
Added to our traditional inter- ous
questions
among
financial
gone unnoticed by Governor Haresj. jn borrowing is a natural con- people,
including '* supervisors.
riman, who, as you know, declared cern today with infiation which
Quite often we are asked how ap¬
a special Savings and Loan Week
s0
importantly affects the value propriate such advances are for
in observance of the 125th anni- 0f money, investment decisions by
a savings institution as a regular
versary of your industry.
banking institutions and the sav- practice. We are not talking now
What I like most about the way jngg habits of our citizens.'To the about
panics or distress situations,
you have approached your funcextent that borrowing by associa¬ as in the '30s. Then, many finan¬
tion is that you nave rolled up tions may add fuel to inflation, we
cial houses, including quite a few
your sleeves in mobilizing savings
have, of course, a deep and legiti- commercial banks, had to borrow
And your cus¬

satisfaction

rowing, which might be distin¬
guished by actual periods running
from one to five years, in part

declared

are

tional economy.

tomers are

had

institutions generally are
keeping their borrowing within
prudent limits. On the other hand,
we cannot help but note that borrowing during 1955 doubled, risgress permitted the Federal Home
jng from $11.7 million in 1954 to
Loan Banks, first, to go straight $23.4 million,
to the open market for funds and,
Some of you may say this $12
more
recently, to apply, if need million increase is negligible. For
be, directly to the Treasury for my part, I certainly do not want
an
amount up to $1 billion.' All to overemphasize its magnitude,
funds that could be raised were - For inflation is not to be overto be turned over to member inlooked: it is everybody's fight,

dends

withdraw

your

for home building.

1932, at a
money

from

whom

you

bor¬

the ultimate effect is pres¬
on the supply of money.

individual bor-

home

construction funds have

c1°;sely a:ffect
York State. I am
sure
.^e would all
en 1
a W1^e.r di^ussion of t j3
whole subject by qua

made up somehow. Sales of older
be siphoned all the way from the
let
parts of the country. W'f
: me make one point clear, because mortgages, in the secondary mar¬ East. Some people find it plauket,
especially
Government-in¬
Now that you, yourselves, are
I think it important that we avoid
therefore to advance the students,
sured and guaranteed loans, are sible,
attaining such admirable size, and
any
possible
misunderstanding one way of supplying funds. theory that one of the functions
Conclusion
with it maturity, your industry later
on:
In what I have to say I
of the Federal Home Loan Banks
.
T
Other ways are purchases by the
has given evidence of changing
am
not attempting to lay down
is to help make up this deficit.
cpr,rP
cnrnP
npw'snaners mav
FNMA, mortgage warehousing in
and even discarding some of the
the law or commit the Banking
To appraise these theories and sum
up
my
remarks this way:
a
broad
sense* and even direct
ways
and habits of yesterday. Department to any future policy
lending by the Veterans Admin¬ put them in their proper setting, "Money urges savings and loan
Many of you are beginning to
let us take a look at current prac- J^tions to Qd borrowing to
regarding borrowing. A firm po- istration.
But, of course, you are
realize that the paternalism so
tices,
Who are the borrowers
minimum. Urges shortest maipp?t\y inteypted in the supply, of
typically bestowed on an "infant
.°"
among savings and-'loan associa- .turiUes on advances to stem infla¬
mortgage
furicls through your
industry" is no longer appropriate
tions? How much and how often
tionary tide „ But you> in the more
central institutions.
in your new status.
levels, sitting down with your
they borrow.
unhurried
atmosphere
of
this
What about repayments of in¬
One
central banks, will all be partici¬
striking statistic
is
that gathering, understand that I am
Transition Period
termediate advances?
Maybe as
nationwide total
pants in hammering out a sound
adyances^from
This, then, is a period of transi¬
long as five years will pass before the Federal Home Loan Bank- equally interested in a reappraisal
policy.
0f borrowing philosophy in the
tion that finds you in search of
such active local housing markets
ing
System at the - end of last savings and loan industry,
In borrowing, many people benew policies, the kind of policies
show -signs
of saturation.
That
year were running at less, than
T
.
Ju
that befit mafum financial insti- lieve,( with„ Shakespeare: "Neither makes it quite a long time' before
4°7rt of total member resources.
4% ot total member resot'lrohsLetconclude with -a word
tQ those<)f you who may feel most
tutions.
I' "am lJdeei5l^ 'Interested % borrower nor b lender be." To savings have a chance to catch
in this search- I want to give you -be frank, .a\ certain bjas among up with "mortgage5 demand,'' and fc Fctr State-chartered! institutions^ deepiy about the recent tightening
here
in New York,
borrowings 0f your credit. Restrictions on
supervisory
authorities
against
every help and encouragement at
only then can associations con¬
borrowing has to be admitted.
from the Savings and Loan Bank borrowing were not imposed to
my disposal.
veniently repay these advances.
That includes
the Banking De¬
and the Federal Home Loan Bank hurt you or to stifle your progress,
In a recent speech in Florida, I
The
third type of
borrowing on the same date were as low as None of
partment of the State of New
you want to go back 10,
had occasion to comment on the
York. But none of us is tied to old that comes to mind is in a class
1.9%.
20, or 30 years, when you were
efforts
of
your
Federal Home
by
itself.
Here maturities are
sayings, prejudice or even tradi¬
.
„
,
still small institutions, struggling
Loan Bank Board more closely to
Borrowing Record
tions for their own sake.
What really stretched out, technically
against considerable odds. Then,
approximate the function of a we
want is principles. But where up to 10 years and in actual prac¬
But all interested parties know the money managers could afford
central
or
reserve
institution.
tice, including roll-overs,
even that it usually takes a lot of sta- to leave you aside, because your
do you go to find them?
Specifically, the board apparently
Such advances fully de¬ tistics to tell the entire story. As operations were not significant
Let me say, right off, that if any longer.
But

before

further,

TTr

s.ition

tbis fbject is stiU to .be

tl^%^toth stVand naUonal'

„

pull away from being
supplementary source of
Government share capital, in and
out of season, and regardless of

wants

mainly

to
a

monetary conditions in the coun¬
try at large.

This

move

towards

magic guidebook to borrowing ex¬
ists, I have not found it. More to

found that much
practice of
borrowing is not immutable but

the point, I have

of the philosophy and

changes with the times. This apcredit tightness is bring- plies to savings and loan associa-

financial responsibility during the

present

ing applause, deserved applause,
to your industry and to the board,
In

remarks today I should
like to extend this line of thought
■

tions, as well as other banking
institutions.
For a start, let us

!00k at various 'yPes of borrowlrig'
To take it from

■

the top, there is,

i956nMan^'m^,Mc.":«„\^WSarv'i^: first' short-term borrowing.
Association
New

York

League of New York
City, April 24, 1956.

State,

our

state-chartered savings and

loan associations show,

borrowing

serve

the

term

supplementary,

permanent share capital.

mercial

this

Critics
take the

second

finding, note that boris not at all universal,
Among State-chartered associations in New York, only 79 out

rowing

type

„

credit

position that since com¬
banks ordinarily do not

159, or roughly one-half, were
And

affect the national
But today it is different.
With $38 billion of aggregate assets in the nation and $3 billion
of assets here in New York State,

enough

economy.

has

immediate

neither
should savings and loan associa¬

borrowers at the end of 1955.

what

remember, these figures are con-

tions.

servative

of the

impact on the money and capital
market. That plainly is why you

is the peak of the borrowing season. At any other time of
the year we would probably find

must respond, along with other
financial institutions, to the call
of monetary discipline,

borrow

What
term

proponents

borrowing

cite you
the

long-term,

say?

of longThey will

both Federal statutes and
Congress, as shown

intent of

in the

legislative history, to make

their point that long-term
advances

to savings and

capital

loan as¬

because

end

the

year

fewer

associations and

smaller

proportion of their resources involved in

What

borrowing.
the

range

of borrow-

you

This

lesson

which

you

must

learn in your chosen profession is
one that we have all had to learn
long ago as individuals, and one

Number 5530...The Commercial and Financial Chronicle

Volume 183

that-.every family
instill

end

man is trying
teenage young¬
grown-up is not the

sters:

of< the

rainbow.

responsibilities
fices

ulating

his

ahead,

and

There

tions

By ROGER W. BABSON

even

Babson Park acalyst

savings and loan
industry in the State of New Yorl* 1

down,

•

vital

sees no

■

•

national

warns

Canary

much

appears in the news¬
today about stock splitI believe readers will be in¬

papers
-

ups,

tumbled down

terested to know why
Most of the

split-ups

flight of stairs.

little

fellow

terribly

was

tual

he wculd live
ups

not.

has

We grown¬

aid

the

solemnity, that
fel¬

never seen
a
bird with
vibrant personality or one

who cculd scatter
and

sunshine

man

which is full
and exaggerations.
Dick his
loved

name was,

Dick

was

handsome

living and
liest thing

canary

mere

joy of

human in the wide universe.
Yes, Dick was no respecter
persons—the
rich

and

great,

all the

"He

gave

and

Here
man

then

not

them
is

the

now

and

pretentions, but

so'oist

want

quoted

Let

humble,

mit

60, which looks lower

did not know

Stocks

Bonds

since 1929, so

you.-

Street

business.

engage

;

Opens

* :

J Bernard S. Needle is conducting
at

securities
437

business from

Fifth

offices

Avenue, New York

City.

55%

Am.

94%

174%

Price

Sugar Refining--—

Anaconda

Curtiss-Wright

;

22
100
76

30%

104%

12%

Storage Battery

256%

114%

2 '/a

93%

jl5%

(Special to The Financial Chronicle)

SAN

Many prominent bankers and
businessmen believe that the gov¬
ernment debt should be cut down.
vital

may

be right; but I

reason

for

Government is
definite

this.

Investment

Co.

with

offices

Heal

business.

engage

has

been

2500

El
a

formed
Camino

see

securities

has

Perry A. Bygdnes, Vice-Pres¬

idents; E. Ernest Gustafson, Sec¬
retary-Treasurer.

and

inflation.

the

that

over

Pre¬

Mutual

previously

Batten

with

Francis

du Pont & Co. and Bache & Co.

Slade Joins Carroll
f

(Special to The Financial Chponicle)

become

associated

with

Car¬

thereto he

was

partner in Wiley

W. White & Co.

•
r-

Reporter

all

the

real

rights,

very

powers,

and

to be

appears

■:

estate

valu¬

undeveloped
many
other

are various
of figuring the government
debt.
Also, in addition to its

Governments
i

minor lessening of the gloom whicxi has enveloped;
It is reported that a modest amount of >

tne Government market.

interest

buying has appeared in selected issues of Treasury obligations,;
getting a bit more of this atten¬
tion than the longer term maturities.
The somewhat improved
tone which has been in evidence in the corporate and tax exempt

evidently imparted a slightly better feeling towards
Treasury issues. Just the same, volume and activity is still:
very restricted as far as the Government obligations are concerned. the

liquid

and

inflationary

get

re-elected.

Senators

30 cents.

far

Such

our

still

very sizable in spite of the
developing towards the tax exempt*
Caution, however, is still the watchword

the money markets go.

Non-Governments

measures

.1 "

Feel Impact of

bond

yields of others than those of the Treasuries. It is evident
that the competition for the investment dollar is still very keen
and as a result the rates for corporate and tax-free borrowing
have shown

dollar will go to

fairly sharp increases, especially in the

ernment

Bond holders, yes — in¬
vestors, employers, wageworkers,
and housewives, too—will suffer.

example of the higher cost of borrowing

offering of

issue

disturbed.

Sheffey With

this

type

nearly

of John

resentative

years,

o m

in this demand.

o n

J r

were

brief

badly

followed

1953

the

It is also indicated that t.ose tnat

are

interested

for construction, improvements and other
similar purpose, namely the large borrowers, are not having any
difficulty either in getting the necessary funds. It is the conten¬
tion of these borrowers that the rate which has to be paid for the

obtaining

money

that is being borrowed is not too important to them in
light of the prevailing high taxes and the predictions that they
will be in the market for funds for many years to come. This will
money

President

from the

whole

Demand for Loans Unabated

mmi

unsettlement

Despite the uptrend in the cost of obtaining loanable funds,
there does not appear to be any important signs yet of a let-up

e w

Y,<■

market

asiue

rep¬

Howard,
Inc., in the Middle Atlantic States,
f

bond

interest

by the Treasury of the "Humphrey" 3V4's of June 15,
1978-83.
[At this time there is no pressure on the money market
from Treasury financing.]

The appoint¬

—

Sheffey

Eaton

York and New

The

This is the highest rate paid on

offering

Eaton & Howard, Inc.
ment

offerings

the recent

was

AA rated public utility bond that went at

the borrower of 3.815%.

cost to

period in 1953 when the money markets

BOSTON, Mass.

new

which have been coming into the market.

In that case, most Gov¬

John M.

Credit Policy

The effects of the tight money policy of the monetary author¬
ities was felt recently in a somewhat more forcible manner in

pottage." I know noth¬
ing
about
the
possibilities
of
World War III; but if it
comes, I
forecast that

vote

mess

issues

issues of short maturity.

just to
politicians
are selling our
country "down the
river," or as the bible says, "for
a

short-term money available for investment in the most,

Government

attraction which appears to be

should

the opportunity
period of time.

give

them

over

and

founder of

that organiza¬

of averaging the cost of borrowings

Crucial Period Ahead

tion.
Mr.

became

t h

J?1?. o t.

John

Sheffey

upon

estment

Companies when it
in

has

and

1940

was

been

1945.

His

work

include,

his

special

take any of

post

>'
:

He received his A. B. degree at
Randolph-Macon College and the
LL.B1 degree from Harvard Law

eight years

entering the investment
company business in 1936, becom¬
ing Assistant Treasurer of several

companies in the Tri-Continental
group.

■

investment companies
undertaken by the Securities and
Exchange Commission (1936-40).

also participated

tiations
sisted

Senate

with
the

the

SEC,

and

as¬

hearings before the

Banking

Committee,

in the nego¬

which

and
led

Currency
enact¬

bearing issues, such as Governments, corporates and taxobligations, with the non-taxable bonds getting somewhat
more attention than the others.
The successful reception that has

given to some of the recent offering of corporates and taxobligations must mean that rates for these new issues have
reached levels that are attractive to buyers of these securities.
been

free |

Intermediate Governments Favored
There also appears

ing

for

certain

because the feeling
to

reflect

any

to be a somewhat better interest develop¬

the

intermediate

term

Government

issues,

is that thtse securities will be among the first-

change in monetary policy. If there should be a
it should not be very important because of

decline from here on,

proximity of the maturity date.
The more distant Treasury bonds have been showing signs^ of
working out a trading area on light yolume.
Institutional in¬
vestors have appeared in the market at intervals, and tnis has
the

mainly responsible for the slightly

ment of the Investment Company

been

Act of

been witnessed in these issues.

1940, the basic statute reg-

though the common stock market continues to be a star

Even

;

performer in spite of some minor adjustments here and there,
there are reports that rather substantial amounts of money haveM
been taken out of it, with the proceeds being put to work in fixed

He collaborated in the five-year

study

the pressure away from the Government market.

free

he practiced law in
area

;

income

School. Admitted to the New York
Street

•

strong and

Money Withdrawn From Stock Market

broad back¬

1929,

continued

assignments

ground and experience.

what goes on in the money market, because
booming common stock market will not

direct influence upon

Executive

new

what takes place as far as the Central Bank rate is. con¬
The condition of the equity market will also have at

cerned.

organized

Secretary of the Association since
will

markets are concerned. The trend of loans will have to be
^watched closely because the continued strong demand for credit*,
in the next six or seven weeks could have an important effects
monry

As¬

National
n v

opinion of money market followers that between now
and the middle of June will be the important period as far as the

secre-

sociation
I

It is the

Sheffey

Wall

Furthermore, there

ways

Mr.

name

America.

By JOHN T. CHIPPENDALE, JR.

before

$14,000,000,000;
mineral

The pressure is still on the money markets, even though there

danger which all

for

the

about

400,000,000 acres' of land,
about 400,000 buildings which cost
able

Our

Government Bonds is

Congressmen

including

over

Johnson, President; Alf Carstens
and

;

lack

carefully watch
fight. This is especially true
democracy like ours, where

corporation with

an inventory of these Federal
holdings can be secured • from
Senator Hayden of Arizona. This

water

Axel

investors

assets.

are

The

Inflation

bar

nrthe United States! I understand

Officers

Building.

Bonds.

assets,

one-fourth

The

report shows that the government

MATEO, Cal.—San Mateo

in keeping with his

Security for Government Bonds

that

iForm San Mateo In v. Co.
.

Low

American Radiator

They

B. S. Needle

not to

1932 Recent

High

(.■«■'

await

•

So. California Edison... „s

L. Lion has opened offices at 3900

and

from offices in the Times Square

Charles F.
as

Company

fact

nounced

stock prices,—I sub¬
following interesting ta¬

New York Central

securities

there

the

been

Have

ble, using stocks which have not

Electric

Calif.—John

of the

taking any position

been split

mislead

prima

Jersey to Virg i n i a,
has

Prominent

the

Street, Northwest, un¬
firm

market has

price

lower

much

Lion Opens Office
ANGELES,

people.

Government

(Special to Thb Financial Chronicle)

whether you should now buy
stocks,—or put your money into

and

unaffected

donna of my home.

Ingraham

world.

built

investors

new

plumaged

instance,

correspondingly. This dan¬
ger can largely be offset, however,
by buying short-term Government

split, it sold at about

now

around

Without

was

LOS

talk

any

Done Since 1929

hiy house do honor to man's gen¬
tlest
friend
and playmate — the
once

was

addition,

was

What

applauded.

our

there

split-up.

sang

distracted

the

one-half

before.

vestors who

sincere and humble,
his anthems for saint
and-sinner alike, just to brighten
who

after

However, because
the stock was split 3-for-l, this
really represents a price of 180.
The new lower price misleads in¬

Mankind is often proud and con¬
ceited with fancied presumptions
and

was

to most

sound

understood

your

near

kindliest

Office

of whose voice
the wise and unwise of this

both
earth

low-priced

125.

reverently render homage to one
of God's loveliest
creatures, who
was dumb and
yet was not dumb,
but

Electric

epitaph any
might covet but

and

was

has

decline

split-up stock may be misled
the price of the shares. For
instance, just before General

woman

deserve,

his

Funds

se¬

offices

with the intermediate term issues

to him—

same

the

from

Y. — News¬ roll & Co., Denver Club Building.
paper Securities Company is en¬ Mr. Slade has recently been active
gaging in a securities business. as an
individual
dealer; ; prior

.Hence, if the value of the
dollar declines, the price of longterm
Government
Bonds might

one"

for

split.

best."

before

old,

the great and

poor,

v/ere

and

young

such

harmed
action.
If it's

stocks, the sum
total of the "split-up" stock for a
while is usually worth more than

and

any

two legs, animal

for

indeed the friend¬

was

nothing un¬
No stockholder

However, owing to the gullibil¬
ity of investors and to their desire

and our be¬

for the

sang

made

der

conducting

business

16th

ROCHESTER,... N.

fixed.

what it

this side of heaven.
Dick

There

split-up should be only

discords

winsome

bird

Roger W. Babson

world,

For

suffer from

payment

are

basically

value

much music

3636

DENVER, Colo.—Russell Slade

Form Newspaper Sees.

con?

their coupons, such bonds

on.

could

split-up, and if
you have 10 shares of stock, you
are sent,
without cost, 10 shares
more.
The
capitalization
is
doubled, but the assets are the
same.
Hence,
theoretically the

have
a

curities

(open-end investment
having combined net
$240,000,000.

S. Government Bonds default¬

fer

stock.

"two

Stock Fund, both mu¬

Government Bonds
fear Of present
outstanding

ing

may

helped

Alexander Wilson

low, whose spirit has departed for
the heavenly choir
invisible, was
loved by everyone, who was for¬
tunate enough to make his
ac¬
quaintance.
such

taxes,

should

with

very

"The Fly in the Ointment"

Although

ethical about this.

sad, for be

little

a low price, the brokers
strongly advise split-ups in such
cases
to
help the marketing of

tonight
household

the

tig
:

willing to buy

said

stocks at

ing things.

Mil;

and

much

gentlest of liv¬

Eaton

Opens

the. 1

vestors

family—, the

corporation would do, but is
charged to Operating Expenses.

:
approximate50%.
As in¬

feathered

for

lin La Batten is

funds

assets of

vate

tot

pay

estate

comes

1924 : to

investment

distributor

security for

which;

giving first

community, it is. not listed in
Capital Account, as every pri-

utors

trou¬

when it

Post

new

help the exec-V

ble, especially

right

your

and

sold

keeps books in
manner.

the

his stock must

pres¬

ence

ment

o m e

died

lutely helpless
in .the

was

servative

stockholder:,

abso-;

are

occur.

the

and

print money, which no other cor¬
poration has, the Federal Govern¬

•

very large'.

shaken in his busted cage, and all
that day we didn't know whether

they

tax

power

are

\* due to the fact

that's
The

WASHINGTON, D. C^-Frank-

companies)
~

The bird's cage slipped ont of the
late Mrs. Wilson's■ grasp ; and

clients

& Howard

By ALEXANDER WILSON

Boston

Inc.,

Howard Balanced Fund and Eaton

of the danger of inflation, compares government
to business accounting, and discusses stock split-ups.

F. L. Batten

counsel, and is also manager and

....

to cut Federal debt

reason

^Howajrd,

individual

prosperous

A Tribute to

opera¬

companies.

institutional, fiduciary and

serve

mature, responsible and

founded

the

rewards. And the reward is great
-r-a

management

investment

6re

with

the

Eaton

sacri-*

even

together

(2149)

better tone, which has

The Commercial and Financial Chronicle...

(2150)

while

all

our

guide

population

outside

New

President, New York Stock Exchange

and double dividend tax revision
In

You

■

bit

/■»

T3ii4*

Member

•

has

been modernized

tape

announcers,
been

A"P

installed

been

automatic

—

for

example,
services

—

streamlined

and

rules

and

procedures revised. Only recently, we embarked on a mammoth two-year study — the most
extensive

undertaken

ever

—

years

that
was

campus

home.

able

was

work

closely

there

with

fine

group

young

who

men

were

taking a
searching
look at them-

selves,
the
uiic
live

G. Keith Funston

we
we

But because of the

trading

Exchange

—

in.

Then, almost five years
ago, I exchanged
the spires of
that campus—and the presidency
of Trinity College—for the towers
of Wall

Street.

sharp transition like that, if
will forgive a few personal
observations, is many things to
many people. It was an exciting
challenge to me, and a cause of
you

some

concern

family

and

friends. To others, it was a source
of wonder that anyone would ex-

change

petitive world

business.

out.

The

first

that

is without its problems.

job

merely

exchange

ficulties

test,

enjoy

well-being

assured for

means

—

The
is

the

—

underlies

national

our

mention

entered

business

completely
being — a

acid

much

challenges.

new

arena

of dif-

The

how

point I would

the

world

set

one

another.

think,
our

second

this:

for

well-

These facts

us.

are

understood, of course, but
perhaps not well enough, on our
cellege campuses and elsewhere
in America.

Our business system
—which includes almost everyone

America—is

dividual

the

incentive.

thp

bought and

easily.

None

sold

what

these

it
u.

ern

have

i.tav+u

move,

ri^rpnpp PanZn
Clarence Randallthat

Giit

free

our

plant that is

aid

the

chanical marvels of

have

of the

one

what

into

seen

our

own

operations

and

problems.
j doubt that five years

other

major

industry

uttle

about

ago any

its

knew

system

Some

companies

with

the

owners

financial

the

right
listed

our

their

provide

interim

Finally,

97%

For

stocks listed

carry

reports.

rise

financial institutions such

great

pen-

funds, investment trusts, and
companies as impormarket factors, special new
trading techniques have been developed
to
meet
institutional

tant

needs.

mented

direction
tional

From the

has
our

given
educa-

in the

seen

facilities
lion

worth

business

porate

dollar

greater
of

least+ half-a-dozen committees of
outstanding men have worked
tirelessly to help the Exchange
$?•!?•
meet its new responsi-

with

than

the

Modern

gj-ow

and

facilities

°f

have

vanished

Exchange

must

r sodetyf™ heGsadi'd "it* is ha"dli"g~at

Exchange's

with
Granted

concern

the past is not academic.
that what's

convinced

done

that

done,

are

growth must
financed soundly and through

broad

public

tion.

Our

future

venturesome na¬

right

people have the
an

that,

economic

its

directly in

probable

despite

and downs, is likely to con¬

ups

tinue

upward.

participation.

after all,

are,

new

And

indicates

ought

they
do

encouraged

research

Our

so.

simply

in¬

credible amount of capital needed
to

meet

billion

1965
will

goals. At least $60
required in new

equity money,
raised

nation
tne

the

available

triple the

last

evidence

has

the

sum

The

years.

indicates

capacity

the

raise

money.
But the figures tell
nothing about the will to raise

This

resolve

created

must

view

Exchange Program

some

tential
ests

background, what

are

of the steps we have taken?

stockholder

vast

po¬

corporation's best inter¬
be

can

served

traveling

the equity

road.
Exchange
these

have

•

the

effort

undertaking

educational

tried

adopting

jobs.

dramatize

this

public

relations

and advertising theme,
phrase "Own Your Share of

the

American
Behind
that
is

Business."

this

theme

the

fact

quiet economic revolution

taking

place, in

the

United

States/- Today, the, jjob" Of
capital
creation is pinned squarely to the
middle
and

and'!

women.

income men;
are-the .only;
of : furnishing the

upper

They

cor-

exist

-in

vto

the ""one

...

modern

wholesale

Stock

The ";&>*^Successful

Exchange..

investing is levied

j;Who
are

are

these

families with

people?

They:

insurance

pro¬
through the. capital -gains tax.
play of forces that once -seemed VAnd ; the ;unsuccessful
investor? tection, government; bonds, steady
•
t
jobs and ;Jncomes; upwards ^of
achievements remote, but that now. exert .a We are-mot; too solicitous of him
" A ; '
tremendous influence on our mar-'-'-either. For he as afforded inade- $5,000 a year. ;;:
the onoortu-

seizins

satisfying

cor¬

"U^Siug people to- invest on the group capable
bulk of the tremenod,us amounts
hand, and then on the, other
of creative capital -needed.. They
changes around it. Just as mod--.through ill-advised and restric-also have the most' to gain/ by
ern
America
has
grown
extra- 'tive taxes—for discouraging their,
/AA ;
V. *
V-K
ordinarily complex, so has ' the "investments.- A whopping penalty doing - so A
cannot

indifferent

vacuum,

pressure

our 1 recent
out

pros¬

that

find

issues.

The

both

institution

exception

stock

The

Cornerstones

no
man
being * an island continuing need for new investequally true of institutions. To ment money.
Yet, this country
remain vigorous and responsive,; has , a
unique predisposition for

American

and

oth

prise,

the

unhealthy
on

actually borrowed $3
for every $1 raised through new

Dlllties-

about

changed
thereby

decade

it.

volume

every

processors,

our

bil-

$33

stocks

But

trans-

through

some

members

sales

industry
food

year

Our

transacted

stock

fact that

last

hands.

perous

effort

With this
Past

much

that

become

Looking back

Moreover, by drawing on the —first, by persuading millions of
experience and Judgment of far- prosperous non-shareowners that
T?nc? Pr°Sressive members tne future is bright, and that
of the Exchange Community, we sound stock ownership is a way
were able to study and revise our of sharing in it; and second, by
intenial proceaures as wed. At persuading management that in

Break

research

could

levels.

important than these The Exchange's continued efforts
actions with a broad and some- very
positive
steps,
there
has in Ihe tax field should be mentimes
bewildering system that emerged in the last few years tioned first. Here, in a sense, was
spans an entire continent.
Some a new and deeper concept of the .an early forerunner.of our drive
measure
of
the
Exchange's Exchange's role and its responsi-/^ maintain, a healthy market. It
achievement in this regard can be bilities. What John Donne wrote is- ,unarguable • that
there ms - a

days

recently,

vote.

with

me-

replace

primitive method

the

that

belief

our

And it

porations

time. The

our

the

Todav's

—

Stock

seared

extr<™ely low cost

place

break

needs "of

investors

ket

services

responsive

+i8S comparatively few

enterprise

from a buttonwood
coffee house, to a mod-

burden

tax

partial relief from the double tax
on
dividends, * granted by Con¬
gress in 1954, is only the first of
several necessary steps that must
be taken in the tax field.vWith
all its vigor the Exchange will
continue to press for an easing,
of the capital gains tax, and for

research
into
the
public's
attitudes, and by the most searching
and
critical - self-analysis

necessary

decisions.

common

Exchange

de-

sion

™ore Pf0plA „The old days~the

the

full

insurance

seen

NYSE's Traditional Concept

securities

^' nity to make Exchange

success.

information

investment

example, all

can

the

receive

sound

grew,

years

tailed

never-ending challenge,

has

the only device

vestors

owned or dealt in by the
Exchange itself. This concept is
the pillar on which all Exchange
activities
have
been
built.
It

poses a

the

make

equitable and productive.

have been strengthened even
further to make it easier for in-

are

nniVG i°r- success' and

tive

additional

mes

quickly and

and retail trade,

encourages

you.

market place where securities

spring of in-

iovin^the fruit^AfFl?
joying the fruits of that
*

sight of the

Historically, a single concept
has guided the Exchange's affairs;
It is that the public must be
provided with a fair and open

tree, to

Today, in retrospect,1 two things

—

should like to discuss with

the

supposed
calm
of
campus life for the frantic, com-

stand

lost

and

world
wuuu

never

customers,
or
steps wkere
they lived, or what motimust be planned to provide for
vatea their purcnases, as did the
tk®Pukllcs future needs.
**■,,
securities industry. . But through
determine

very

bappy

have

ability to main¬
broad, healthy market. -It
explains our considerable effort
a

addition, at the Exchange it- fact that our primary duty is to further dividend tax relief. .vA'i.
self, our future physical; needs provide
a ; market
place,' our A Beyond our immediate market,
have been provided ;for >in the broader view of the Exchange's
place a second problem has oc¬
form of a new skyscraper rising role
has
led
us
down
several cupied much of our attention. Cor¬
adjacent to our present quarters, significant paths in recent years. porate; growth ; has
been : unThe
last few
years
have seen r. Let me explore some of them paralleledi - But
it
has " been
revised trading hours established with you.
And let me add that achieved by paying too little at¬
and permissive incorporation" of our course" has been
guided; by tention to common stock finane- ;
members
instituted.
Equipment the most painstaking and produc- ing, ;; and by piling up debt to

floor—
an
area
slightly smaller than a
The numbers of shares, listed
football field—millions of people
a
hroad and continuing research
are
able to express their invest¬ on the Exchange, and thus more
program-we
have now learned
ment needs freely and instantly; readily
available to satisfy inmany 0f the answers. And in the
vestment needs
has increased
industry is able to raise each
pr0cess we discovered
how treyear
new
billions
of
growth
JLa3 Shares listed
P°i! 100% since January, mendous the potential investment
1950.
passed
the- market is<
money. In the complicated work¬
We found
that foUr
ings of our economy, the Ex¬ four .billion mark several weeks out 0f fjve business and
profeschange is thus continuously help¬ a£0,
,m.k
inter- sional men with earnings of over
ing to pump new blood into our ested that it took the Exchange
$7>500
a
year
are
not
share.
138 years
economic lifelines.
from 1792 to 1930
owners.
We
learned
what
the
It is the Exchange's
specific to list its first billion shares, and great mass of
Americans, shareand subtly-changing role in our only two years 1954-1956 to list
owners and potential shareowners
economy—what we have done in the latest billion.
alike, don't know about the inthe
recent
Accompanying this growth, our vestment
past, and what we
process, and about our
hope to do in the future—that I high standards for listed compa- market
—
—
place. It was this docu-

for

several

grown.,-Rather, it is the product

Exchange's

tain

underscores

a
determined effort to accept
responsibilities that extend bethroughout 'the-yond our trading floor.
While

communities

have

*0/1

the future.

York* City. of

New

have

VkA/int

593

Well,

•

the

removal.

miles.

Stock

be¬

cause

*v»

square

geo¬

graphy

#*1 •»* y\.

■» t

find

now

offices

state.

tries can find the funds with
which to finance future growth,
The nation's continental boundI mention this incidental aries embrace some three million

demands of

alone, and another 102 offices in

about 100 miles north of New York,
there is a college witn a lovely
campus.

us,

healthy market — the
years,
our
Members kind I believe we have today —
their offices-by- 3%%.*>simply
doesn't 'spring
up
full

can

Firm

oit^,

pleasant Connecticut

five

increased

believes $60 billion in new equity
capital will be required by 1965; corporations should be
encouraged to finance future expansion through common stock
issues; share ownership should be broadened and that the
middle and upper income ranges can furnish the bulk of
creative capital; NYSE should not only provide a market
place but also keep it healthily orderly and liquid, broad, and
encouraging to industrial growth; the Exchange's successful
education program is helping to create a "People's Capi¬
talism"; and that a rise in shareholders from present 7% 1°
I2V2 million by 1965 should provide the answer to "gloomy
Red predictions about the future of capitalism.": Mr. Funston
recommends improving investment climate by capital gains
Stock Exchange President

City rose about 20% in the

last

Without this concept to

millions.

the

-.across

York

FUNSTON*

By G. KEITIl

challenges,

Firms

the Exchange, for all its
country have opened new offices marvelous
physical
equipment,
and
recruited
new
people.; In would in my opinion be nopeNew
York
State, for example, -lessly unable to deal with the

Today's Slock Exchange
For a People's Capitalism
i

these

meet

Member

Thursday, May 3, 1956

with

events

—

has

quietly
the

—

the

caused

inter-r

/'us Uo?'Qu.ate tax considerations"-

significantly'". Quite

but

past.

r.-

are

urged to build sound

longer suf- Jnvestment programs- that stress
ficient for us to provide just V. the benefits of dividend income,
market place or a-custodial senM But the investor: finds that, after
ice. To confine ourselves to such^-corporate profits are taxed at the
Basically,

it is

restricted role would be to

ourselves to the investment
of

How ; numerous, are they?
By
early 1955 they numbered about
20 million families — a jump of

130%

over

the last 15 years, even

after

adjusting for. higher:prices
and higher taxes..
; > ;";'.
A
If these

people

are

alerted and

blind-;s?urce, his share of the profits— willing to seize their investment
needs- his dividends— are taxed a sec- opportunities we are likely to see

of the

54 uv°Stya- as &

people,

apart from capital gains,

public, to the equity needs
industry, and to the nation's

ond time as part of his income,
is no* too surprising that out

a
startling change in
try's economic
face.

the
The

coun¬
new

and unfair America will offer not only a
ture.
prota* structure we find a confused steadily higher standard of liv¬
We as
a
people are a people duction and mass
idea that we must provide a mar- and often reluctant body of in- ing, but additional millions will
distribution, the
f?iven
to
easy
phrases,
but
I Exchange has added a third "M" ket
place, the Exchange has vestors;, a perceptibly low per- actually own the tools and facili¬
know of no better
way to define —mass investment. Today's stock added a second
concept: We must centage of savings dollars going ties that make that living stand¬
the "heart" of our economic
sysmarket is a mass market. It will
help maintain a healthy market into stock ownership; a reluctance ard possible. In the truest sense,
tern than
developed methods of

by pointing to the New

York

Stock

pause

Exchange,

the

free

It is beinvestment

market

the

of which the
Exchange is
center, that America's indus-

*An address by Mr. Funs.c
Nev York
„

State

Uew

York

Chamber

City, April

before ,he
Commerce,

1956.

become

ahead.
able to

even

more so

Increasingly
serve

need for

people willing to venTherefore, to the traditional

mass

in the years

that

must

customers in super¬

well.

mands

just

theF be °f

servative

^CUritieS-whether

Speculative

nature.

Or COn-

means

market

orderly and liquid; that
is broad enough to meet the de-

ing

That

market

quantities, while providthem with an ample supply

millions

thousands;

enough

industrial

billions

that

encourage

growth

dollars,

people, not
is
sound
an

annual

measured

just

not

this

paradoxical

the

part

corporations

shall have created

"People's

raise money through new issues Capitalism."
of common stock; and an investThe Exchange, of course, is not
ment climate sufficiently chilly merely an interested bystander in
to discourage

many

investors al-

together.
This
course,

est

kind

has

this development.

climate,

definite bearing

of
on

of
we

lies in
the
are

American
of

Our self-inter¬

being of service to all
such

people.
service

Unless
there

Volume 183

Number 5530..

The Commercial and Financial Chronicle

(2151)
not much
for

long

institution

our

course

will show

has

action

been

sire to

positive program of public edu¬

cation

that

meaningful

specific

make

can

prosperous-

retrospect,

monumental
ficult

this

has

job, made
a

;

goal is

Problem of Wage Expansion
And Declining Take Home

Americans

investment market place,
that market in

money

and

future

good health, Thereby assisting in¬
austry
to
obtain
the
growth
money needed for the future. Out

maintain

these

of,

we recognize that
research
points* out .that'
of four adults are un¬

Boettcher and Company, Colorado
Springs, Colorado

Mr. Astarita poses

educational
p rngr a'pi. :ship.«-*
Nevertheless,-; there^u is"; alrand^htl-^ We -are : convinced that if we
evidence
that
substantial- gains follow the
path we are pursuing,

out

Pay

By GEORGE C. ASTARITA

twin

obligations comes
unrealistic, I knowpko try^ our; program designed to broaden
to measure
accurately the success" the nation's base of shareowner-

budgetJ- But
when

three

millions

*It is

small

with

The

program.

their

The Outlook for the Future

prospect
of
the
their country.

growth

dif¬

some

it.

been

relatively

have

people -provide

perfectly healthy de-

risk

the

and

„

We think that out of this

knowledge

know it.

economy as we

Our

tunities.

range future
or for the

—

paradox involving continued increasing V
proportionately smaller income after taxes, higher pro- »

wages,

duction costs and
prices, and declining consumer spending. ?
a common
stock, it have been made in the last few^';the-•securities industry will be
Does not believe government
spending to take up the gap will »
js; obviously necessary to tell the years. \ There
is
certainly v a dbirig;- its share to deserve the
avert a standard of
; shareownership
story in its most broader: public understanding of, "privilege of that man-made
living decline.
'*
gift
the
elementary form. ;
Exchange's function :,and - air-free enterprise,
^ ^ *
There exists, what appears to a
still
greater amount, such
Through our- own advertising wider -appreciation of Vitslrolfe. /.
me, a fly in the ointment of in¬
;
spending; while taking up the
and;-the- efforts of our fMember And there are several other sign-:
flation* Large and ever increas¬
slack of consumer
Firms, we set out to describe the posts of progress. **>'
spending,
1 >1
ing wages .during recent ; years would exercise an
^investment process in a
irregular effect
periodic stock m a r k e t ; Gilbert W. Kahn, partner in h a v
way that : ; Our
e'served,
;
is" both
upon industry and would not pre¬
personal and dramatic/ "portraits" show-the public
"gen-^Kuhn^Loeb and Company, New in large part,
vent a reduction in the standard
Merchandising' assistance has erally is approaching sensibly the York, and Eaton
Taylor, partner to create a
of living of the American
people.
been; provided our Member serious business of-investing in in Dean Witter and
Company, San dynamic
In any
Firms.
In some 40 -cities across stocks listed on the
event, it would seem
Exchange. We '
economy
and
that industry will be called upon
the country a local Investor's In¬ are experiencing a
able to define

•

V Directors

predominantly *-

formation Program and speaker's

investment market in which"

bureau—spearheaded by Member

pie

Firm officials and registered
rep¬

paying

resentatives

—

work- with

Commerce,

civic
groups and educational organiza¬
tions.
to

vestment

Over the years, we
expect

develop

about 200

similar, programs

communities.

terial

prepared

magazines,

for

and

ly.

Our

own

widely

quoted

America
and
of

monthly

future

now

boasts

been

and

individual

any

don't

will

stock

the

leave

doubt

not

reserve

warned

about

well

*in

turn

rewards

un¬

that risks
inherent

are

stock

ownership.
We
have
entirely clear about this: In¬

been

vestment is
No

think

act of

should

one

can

risk-taking.

be fool enough

predict

the

future

with absolute

certainty.
addition, we have kept up a
running fire against the sharp
In

promoters who prey
ble.

would-be investor that he

against
against his

ill-advised

Finally,

can

things,

many
own

hasty

actions.

have developed

techniques

for

ownership

keeping

During

that

Mr.

bringing

new

share-

period,

within

$40

country,
there is
on

the

month,

statute

for

quar¬

across

New

and

new

states

including
a

the

York,

welcome law

books.

was

de¬

signed by the Stock Exchange to
permit
stock
gifts
to
children
without

the

pensive

red

countered.

similar
in

frustrating and
frequently

tape

We're

ratio

The

year.

continuation

calls for

list

extent

20%

day.
significant aspect

Most

has

half-a-dozen

the

hopeful

other

our

market, and

investment

states

Trust

nesses

this

number

estimated

spring

had

one

million,

new

will

owners

grown

Phila. Sees,
„

and
of

census

provide

newer

shareownership

goal

ure:r

the

modest

ancj

public busi-

our

not, in

ownership
the

our

capitalism.

job

•

'■

companies

and

risks

and

oppor-

finance

ways

needs

list

their

to handle the
institutional

determining
provide

our

growth

our

Secretary: Pauline VaillancourS,
Librarian, Mary Immaculate Houpital School of Nursing.
Assistant Secretary: Lenora

Cheever

Charge

dictate

not

still be with

us.

Department,

and

Fairchild

Treasurer:

Donald

Director:

Gertrude

brarian, John Price
pany,

incentives;

finally, of pushing ahead with
public educational job that has
obviously

answers

face.

But

have

not
a

have

L. Low, L5-

Three Fiscal Months Ended

Shipbuilding contracts

March 28,1955

$18,254,283

$21,404,115

•

3,202,795

2,431,576

Ship conversions and repairs

•

Hydraulic turbines and accessories

Other work and

Totals

operations
»

Estimated balance of

•

♦

•

1,172,595

3,236,124

1,529,489

3,447,741

$24,159,162

$30,519,556

•••♦

At March 26,1956

At March 28,1955

$200,205,562

$155,915,415

maior contracts

unbilled at the close of the

period

•

Equivalent number of employees, on a
40-hour basis,
week of the

working during the last

period

••••••

The

•

Company reports income
such income for any period will
unbilled

balances

are

10,665

11,866

from long-term shipbuilding contracts on the percentages-completion basis;
therefore vary from the billings on the contracts. Contract billings and estimated

subject to possible adjustments resulting from statutory and contractual provisions.

By Order of the Board of Directors

all

problems

the

Hotalinri

Jones

begun.

Publica¬

Inc.

March 26,1956

Billings during the period}

goal and

April 25, 1956

Indexing

Chief Librarian, Newsweek,

Should

should

Librarian

Morgue

tions.

therefore,

reduced and

Tully,
of

registered repre¬

and

the

Aliesky, Research Librarian,
Ogilvy Benson & Mather Inc.

Major Contracts and Number of Employees

complex

investors;

schedules,

sentatives with proper

just

taxes

Vice-President: Eleanor

M.-

their

how, ' with

commission

Second

the government collect and spend

through stock issues; of obtaining
tax
relief
that
will
bring out
more
venture capital; of
finding
new

Usher, Acting Librar¬
ian, Metropolitan Museum of ArL

problem of progressive taxa-

tion will

discuss

and,

the

First Vice-President: Mrs. Eliza¬

lower rather than

brackets

Election

brought into office the

Quarterly Statement of Billings, Estimated Unbilled Balance

find

higher

will

Hotel.

beth Reuter

$100,taxa¬

reduced

expediency

larger cuts

outlook,

equity capital

can

awareness

will

taxation

Tower

Saturday,

p.m.

Gerritt, E. Fielstrr*,
Assistant, New York
Public Library, Information Desk.

receive

reduction

severe

12:30

President:

wages

political

Vice-

de-

Reference

argu¬

absurdum,
to

were

meeting
at

Newport News Shipbuilding and Dry Dock Company

attracting more qualified
Member
Firms; of encouraging

that

understanding

future

the

28,

enough

shall

our

Stephens,

needs, and to the gloomy Red
predictions about the future of

broad effort

its

cause

Should

company's current operations

growing share-'T;

family

answer

expansion, or
will
be
in
for

■

target and I'm quite prepared to
admit it may be revised
upward.
But whether the goal is conserva¬
tive

President-research

some

65% greater than at present—12^
million people who constitute the
owners

and

reductio

workers

use

progressively debilitating effect
the economy as the price
gathers momentum.

the

debt

following slate:

rise

club- A- L- Gustin, Jr., President,
L- M. Kelly, Secretary and Treas-

Looking ahead to 1965, we can
reasonably and realistically aim

luncheon

of officers

upon

luncheon meeting of-the Phila?^Phia BecTitiesn Aasociafaon on
Wednesday, May 9 at the Racquet

share-

still

all

Beekman

The static income group in the
meanwhile will continue to exert

figure
T

Hear

over-all

declining

Special Libraries
Chapter Elects

April

without any de¬
the over-all impact on

minimum annual wage of
000 would not progressive

^ss f|ber Products, will address

this

propor¬

and, therefore, the
standard of living for the nation?

„

The New York Chapter of the
Special Libraries Association held

increase
a

wage
will mean

crease

N Y

at
has

family units. As the
progressive
taxation,

industry costs.

tion

face

employed

ment

maintain

industry

proportionate in¬

each

now

fully

both,

tionately smaller net increase in
purchasing power for those gain-

Corn-

PHILADELPHIA, Pa.—Officials
were
owned by only 6V2: of' Gustin"Bacon
Manufacturing
people. Three years later Co » a fading manufacturer of

million

low

be¬

from

real

moving up appreciably. We discovered, in 1952, that public busi-

our

the

pany.

three

„

for
of

progress, perhaps, is the fact that
the
number
of
shareowners is

ex¬

out.

The net aim of
is thus to create

Equitable

virtually

almost

Mr. Taylor has been with the
security firm since 1936, and a
partner since 1940. He was previously with American Trust Corn-

that-a

turnover

volume

million shares

en¬

legislation will be passed

fore the year is

with

each

And

been

the

trouble,

in "take home" pay or net

however,

has

such

the result of

operating

result

purchases—many of them
ter.

with

was

vestors have made their first stock

little

Kahn

will add fuel to the flames

benefit

company's

banking firm since 1927, and a
partner since 1931. Previously, he

the
Our problems here in the na¬
practical
people.
Through tion's market place, however, are
the Monthly Investment
Plan, for by no means solved because the
example, thousands of small in¬ future is bright. We still face the

reach

the

growth program,

with

pace

served

of; progressive taxation

inflationary
still higher

crease

studied banking in several European countries,

alerted to the dangers of
get-richquick schemes. It has become sec¬
ond nature for us to warn the

protected

approximate

steps

ex¬

celeration

meant

pany.'He attended Princeton and

the gulli¬ voting
Millions of people have been nesses!

but not

tant

•

represented about
20% of the total number of listed

the

handy for the

every

main-

mounting
wage

If the expansion
in'volume tapers off as the result

Astarita

The rise in wages until now

elected board chairman said the
additions to the board are impor-

Indeed,

capacity.

transactions

credo. The

our

emergency.

the turnover ratio of the last two

and r by

is always urged to
get
facts, seek advice, deal with
reputable broker, and keep a

predictable

even

decades.

investor

cash

transactions

wages

Taylor

elected

economy

three million shares
daily, we will

prices

the
a

liquidity.

been

Hycon Mfg. Company,
PSsadena, Calif,
Trevor
Gardner,
recently

day mark,

have

di-

progress * rectors

necessary

minimum

unless

Exchange's specific role we have
developed sound guideposts for
the investing public. These
yard¬
sticks have become

Eaton

already roaring
Francisco,

grown

investor,

million

level

tain

up or down.# These are
that must be
weighed by

individual

measure

Exchange has approached the

three

Member Firms.

our

witnessing
of
unleasing
powers
and shortly

Gilbert W. Kahn

profit margins.
*

George

are

the

that

appears

This

move

factors

has

profits

prices.

Now

is that the volume of business

stock,
try to

know—or

determine—whether

present,

Another

We do not pass on the

the

de-,

by the individual judg-~

facts.

redesigned

100,000. New films are
telling the investment story per¬
suasively and entertainingly.
) In all this effort, it should be
perfectly
clear
that
the
Ex¬
change's job is not to try to sell
merits

liv¬

ward pressure

judgments are being made
calmly, and in full view of the"

over

securities.

;

ever

result of

productivity, despite
huge
expenditures
for
capital
improvements. Only sharply
higher volume in recent years

ing cost, de¬
spite an up¬

such

paid circulation

will

increase

has

stabilized

right

under

the

pansion which greatly exceeds the

pro¬

operate

costs

and

duction

buying

permitted

indicates

ments of millions of investors.

the most

publications

has

—

This

course.'

termined

radio

efficient

have, of'course, nov
predicting * the market's

way

ma¬

magazine,

Exchange"—one of

securities

further

past

years

record

reasons.

stations has been expanded
great¬

"The

Plan

their

fori the

newspapers,

television

for

that people generally- are
the rright
stocks

addi-

tion, the flow of educational

cash

the

few

and using credit
sparingly. Our
experience with the Monthly In¬

Chambers

for

peor?

buying for the long-term,

are

R. I. FLETCHER,

Financial Vice President

Core.j

Small Nuclear Power Units.
And Areas of Application
-

Engineering Vice-President endorses small reactor condetermine more quickly which type of *
reactor is better. Besides military and electric power genera¬
tion, A^iral Leggett notes demand arising from possibilities: »
(1) in the far North where heat and power demands are quite
high, fuel unavailable and practical study can be made more..
Safely; (2) of small municipal utilities being able to compete /
with encroaching big utilities; (3) in furnishing heating loads:
in local industrial plants; and (4) colleges and universities.
Discusses need to explore governmental assumption of insur- :
ance
above a certain limit, and the prospect of lowering
; :v:. power generation costs.
•
- V
>/,
strnction program to

*.
"

.When

started

far

"Small Nuclear Power Units" be¬

the

cause

the

this

differs

stainless

I had had any

other

other reactors.

these

this

izcd

nuclear

reactors

JI'.

had

have

small reactors has

been

ing

the

hundreds

point

ment dollars.
she

merged. The
goes

from

ease

These

new

concept

fare

from

cient

add

sel

much

very

thinking
security.

warranted

tion to

of
a

this

sort

reactor

use

casualty to either the primary
secondary loons from spread¬
ing over the countryside.
Ad¬
vantage is, of course, taken of
a

its

bulk

for

call

power

time
and

reactor.

This

package

Army,

you

certainly would not get a first
impression of it as either pack¬

provided at the present
nuclear

serves

the cost

terminology

itself warrants some elaboration.
When you look at the model of
the power plant we ^re
building
in Ft. Belvoir for the

shielding.

populated area. It is a very ex¬
pensive
additional
item
which

must

job

additional

The vapor container is essential
for a nuclear power plant in a

Technical Features
our

container 64

active vapors or liquids which
might be released in the event of

such power plants.

vapor

capable of withstanding 75 lbs per
Its
purpose is to prevent any radio¬

introduc¬

discussion of the

ves¬

square inch internal pressure.

the

make-up.
How¬
ever, since I am talking primar¬
ily from a background of the
Army Package Power Reactor
which Alco is building I believe
that a quick go over of the tech¬
features

pressure

generator are

steel plate and concrete structure

technical

nical

steam
a

feet high and 36 feet in diameter.
This container is a combination

commercial or applications as¬
pects of nuclear reactors than at
their

reactor

the

and

installed in

our

This meeting with a title of
"Prospect for Atomic Energy in
New York State" is obviously di¬

rected

the

Both

war¬

reactors—suffi¬

national

old

of submarine

small

influence

and action

sub¬

with which she

believable

submariner.

clear

power

further

plants

unbalance

differential between

nu¬

and

chemical plants. Don't
get the idea that I am advocating
.

doing a:way with the
tainer. I just hope we
ter

vapor
can

con¬

do bet-:

with

into units
which fit easily in today's trans¬

it than we are doing
It is becoming something
symbol of the nuclear plant—
and, I think, not a good one. Our
particular
container
has
been
over
designed to afford ample

port

protection to our'lawmakers and"

aged power or as air trans oortable. However it is
designed so
that it

can

be broken up

aircraft.

Naturally

its

new station it would not
look like
the unit in Ft. Belvoir which is to
be a school and

thing of

perhaps some¬
show piece. The im¬

portant fact is that Units of this
design could easily be
trans¬
ported to an isolated station and
that the total weisht hauled
would
be quite comparable to the
weight
of fuel required for a

year's op¬

eration of

conventional

power

plant.

today.

other

♦An address by Admiral
Leggett given
at the Atomic
Energy

Conference, RensPolytechnic Institute, Troy, N. Y„

officials

believe that

our

the past,

power

job at Alco today is the

struction

the

small

con¬

nuclear

plant for the Army, but we
coming to the point of our

power
are

economy.

pointed to the fact

Military Power Plants

tion

for

reason

The

course.

companies will write. Any other
would tend to penalize
the small reactor unduly and this I
.

in turn,, as I have ; tried ;to em-.
phasize, would penalize the coun-

•

that England and Russia particu¬
larly had
cogent
reasons;/ for

have

tlons

made

to what
of

cost

some/

^alcuiai-

submarine

this

applica¬

j
,

could do on :
.

generation in
Militarv power plants are im¬ pushing ahead with the develop¬
a
10,000 KW unit taking advanportant because they are decid¬ ment of the large power plant
at the present time. "This gave tage of all the possible savings
edly further along than any other
we now know.
We have come up
nuclear power applications today. the impression: that we- in the
There

of insurance commercial :

Course

the

power

letting other with a number of 18 mils per \
nations
get ahead of us.
The kilowatt Which is quite high by j
"Times" very pertinently pointed comparison with chemical plants,/;
out that "we have abundant fuel but pretty good, in the, nuclear ;
resources.
It would be senseless power generation field; It marks, ]
United States

were

obviously warranted
years ago that the navy was able
to get appropriations which en-/
abled it to pioneer the develop¬ to underrate these in an, effort or it will when we realize it, a
considerable step down the path ;
ment of nuclear power. The next to develop atomic power, which
toward
more
economic nuclear j
best justification I believe is in costs far more than power pro¬
In two or three more '•
the remote areas of the far North duced with the aid of coal and power.
turns -around the circle perhaps '
At the Geneva atomswhere heat; and power demands oil.
for-peace conf erence of last we will have something really ;
are, quite high and where fuel is
simply not available.
Here also August we showed plans for a competitive to offer.
Since Writing, this I have seen 1
communities are small and the half dozen reactors of different
so

was

small

nuclear power

justification

today.

plant has a! types. All of these were far ahead
of what the Brjtish and Russians
/ disclosed.

There

has,

been

course,

our

operations in both the Arctic
Antarctic.

and

found

titled

One

"Weather

those

Magazine

from

Which

these is the

best?

J- Far North \^

*...

I
an

Na¬

We need the Atomic Energy
Commission's Power Demonstra¬

tion Reactor Program to answer."
And

answer

can get this
quicker and

kind of
cheaper
through the construction of small
reactors

on a

release estimating be20 mils per kilo¬
10,000 KW plant.
I should like to.say just a word
now/about the potential use of the
small nuclear power reactor as a
15

tween

tool

for

instruction

our

Small Municipalities

col¬

leges
and - universities.
The
college type research reactor gen¬

erally does not pretend to

shorter time table.

which

gives

into consideration suth factors

one

recently voiced to me by a
grateful friend in the ship repair
business.

pedition
states

The
was

arid

Arctic

supply ex¬
returning to the

there

were

many

ice

damaged ships in the task group!
This is good for the
ship repair
business
needs

which

some

•

heaven

the

good

the

nuclear power
Arctic.

plants very desirable. I will
enumerate a few of these

power

just
that

quite

are

think

about

First let

obvious

you

them.

the

small

We made

power.

gen¬

study

that in

nu¬

plants, as in every
other development
attempted, we
may

power

sooner

trouble.
we

find

This
out

boundaries
more

later
often

what
are.

small power

our

in today's

possibility of providing

of in¬ power, or small power plant end
generating in this field of the' business. We are proud to
and in the horsepower range from have been the first company with
10,000 KW down. We could see a fixed-price contract for a nu¬
is

terest

radical

some

changes.

Thinking

chemical fuel plants

terms

could be dangerous.

where

economy

small

another

There

power

ing.
ments

great

our

many

plants are operat¬
talking about local

industrial

which, including the heat¬

for

steam

forming

area

10,000

KW.

pretty bare for the

simply because there

possible way to obtain govern¬
ment assistance for the erection
no

such

plant.

happy to be asso¬
industries of
great State of New York in
are

ciated with the other
the

this endeavor.

We are
ment

and

grateful to our govern¬
our

Armed Forces for

they have done toward in¬
itiating this development and car¬
rying it to the point of demon¬
strated feasibility.
We applaud
what

the
in

wisdom

that

disseminating

industry

government

information

rapidly

possible

because we believe that with the

large

amount
of
talent
now;
brought to bear on this problem,
progress will be much more rapid
and that consequently those of us

would be sizable even for a

the

way

company.

But the nuclear plant
shows up much better in this area
because
pressures,
temperatures
onrl

economically, and of

course we

The investment

into

practical

establish¬

ing load, I think could be satis¬
fied with a reactor capable of
This

plant which gives us
double incentive to produce this

clear power

power
area

run

Naturally the
plants we have

power :

A tremendous amount

on.

moment

assume

civilian side

the

plants

other

are

knows

help. It is also

for

at*P

f^nerollv low.

and

for

watt

erate

en¬

the/ White
vivid de¬

a GE press

generation reactor
for the University of Florida and
scription of the kind of isolated economy in these United States
became (quite enthusiastic over
small power plants still exist in
stations
now
operating around
this unit as a tool for instruction
the
utility operations in small
the "top of the world."
Obvi¬
as did the University.
It will, if
they
have
ously human life and operations municipalities, - hut
adopted, provide an actual power
in such an area depend on a re¬ been having a hard time making
go of
it.
Big utilities have plant for instruction as well as
liable source of electric power a
making available the other nu¬
and heat.
For those bases which moved in, transmission lines are
We believe it will
an established fact and the pos¬ clear facilities.
can be reached by ships,
supplypromote understanding and stim¬
is seasonable; limited to short pe- * sibility of reversing the trend is
ulate interest among a very im¬
riods when the icebreakers can not one which any small reactor
enthusiast
would
tackle
with portant segment of our popula¬
batter their way through.
Un¬
tion—4he people who are going
But there will be
favorable weather may throw the relish today.
to
operate the plants we
are
some small
municipalities which
re-supply schedule off completely
building and carry on the future
for any one year and transporting want to hang on to the gener¬
Who developments in nuclear power.
fuel by air is really an expensive ation of their own power.
The interest of these youngsters
knows but what some day small
business.
in college and in fact all the peo¬
nuclear plants may even prove
I tried to find out just what
ples of the world in nuclear
competitive with the big com¬
kind of a
reasonable price we
panies with their
transmission power stems from a recognition
might set on fuel delivered to
of the basic importance of this
expense.
The thinking today is
these bases.
Unfortunately, mil¬ greatly influenced by the high new factor in our lives on the fu¬
itary accounting is not designed
ture of mankind.
pressure, high temperature, very
to show up such a specific charge
Alco is proud to be one of the
efficient
central
stations.
The
for each individual base.
We do
actively working" on.
best nuclear plant won't compare. companies
know, however, that the cost is We need new thinking and new nuclear power. We are particu¬
generally five times and maybe facts. The AEC recognizes this larly
proud
to r have
designs
as much as 10 times as
great in
and, as usual, is pursuing a course finalized, hardware in the shops
these bases as it would be in a
which will stimulate both indus¬ and construction at the site pretty
United States location. Even this
try and local government activi¬ well along. We feel that we are
multiplier, I do not believe, takes ties to
get together and carry fortunate to be in the package,
North"

primary interest clear

for the civilian

amount

•

reasons,
of
Although the military, aided by. course, which make small nuclear

technical advances in

consequently ;
development cycle

arid

ahjr con¬ YdrK; 'Tlme^'Xor ^MarcK^/24 en- try in slowing down development,
in the economy of the titled "The LaginAtomic PoWer." :-W.iy Costs Per Kilowatt * / .•?
- "•••*-/'.• rf; This editorial

sequence

There

generous
appropriations
from
Congress, have spearheaded the
development of nuclear power
plants as they Have riiariy 'other

of nuclear power is of

plant

Primary Interest

be based on the size or value of
the reactor rather than on the

plants,- the

be built

can

argument

Washington.

Our

•elaer

here today is in the production of

Technically, the APPR belongs

April 4, If56,

government

Government Insurance

of
electric through a
or
so-calledr "generation"
units. .We; are a
more
building power plants — mostly '.rapidly.,.;.;7* ■
As an example of what X paean,
military — today and it will/ be
some time
before -the generation I noticed an editorial in the New

Geographic

surrounding
the pressure vessel.
This water,
the level of which may be raised
above the top of the reactor, pro¬
vides
shielding
for
personnel
when
they are engaged in re¬
placing fuel elements.

medium to another

one

hardly

surfaced

better

such

tional

water

plants

generation

power

very
interesting was
in
the April,
1955,

erated than the small
smaller

industry than they arc quickly

article

tank

the

gen¬

great deal in print recently about

isolated, stations

today

invest¬

The NAUTILUS is

completely indifferent
whether

its

plants

generate 2,100 kilo¬
watts of electricity.
Shielding of the reactor vessel
is primarily by cylinders of iron

sufficient

convinc¬

s.eam
up

This steam
at 200 lbs. pressure and 407° tem¬
perature then goes to a conven¬
tional generator set where it is

influencing

millions

flows to the
Here it gives

loop of the plant.

ary

in these

seen

heat to form steam in the second¬

perience with today and insofar
as actual operating
is concerned,
that has been precious little.
But what

in¬

when

through this core at

perature

ex¬

any

and

generator.

have

subassemblies

from 431° to 450° F at which tem¬

are

really the
only kind any
W. D. Leg get t,

4,000 gallons per minute.
During its passage through the
core
the
temperature is raised

that

small

used

A number of these

subassemblies,

circulated
rate

real-

con¬

plates

the reactor core.
Water under 1,200 lbs. pressure is

background.
Then

previously

stalled, make

naval

forms

brazed

are

because

wae

steel

plates, each about 22 inches long,

with.

"thought

material

fissionable

personal dealFirst

the

manufacture

the

power

New York

any

rather than in other materials or

only kind

ings

from

constructed, however, in that

tained

was

terested

nuclear

family of pressurized water

reactors.

Alco's pri¬

soon.

State,: "

to the

preparing for

this talk I thought how fortunate
I " was to
have
the
subject of

very

interest is not as many peo¬ our chances are of minimizing
Sriiall nuclear reactors haye the ^
ple seem to suspect a nuclear damage* .and > learning these les¬ same problems' as big ones. ' This
sons
where they will
powered
locomotive.
We
are
be least is also true in the realm of such 1
should
an
incident items as insurance, Of course no-. ,
keeping our eye on the nuclear expensive
locomotive.- I expect that some¬ occur.
/
•'
•/:
body knows exactly what the in¬
day we will build one. For the
Best Type of Reactor
surance situation is
going to shape £
immediate future, however, it ap¬
We know that the cost of jiu- up to be. Damage from a small :
pears that we are in the nuclear
nuclear casualty could be quite
clear
power
plants
will come
power business as a diversifica¬ down as we
get more experience serious. I am personally relieved :
tion from, rather than an exten¬
in building them. While it is true to see the trend toward the gov* •
sion of our locomotive building.
that the larger plants are more ernment assuming responsibility ;
I judge that the people of the
efficient, > consequently less ex¬ for insurance above a certain
State of New York are more in¬ pensive per kilowatt-hour
limit. I hope, that this limit will '
.

ALCO

step

Thursday, May 3, 1956

mary

By REAR ADMIRAL W. D. LEGGETT, JR. (Ret.) *
Vice-President of Engineering, ALCO Products, Inc.

The Commercial and Financial Chronicle..

(2152)

great

nmammkl/vPI

ntr

ttr i

»ta

Number 5530

Volume 183

derive

benefits

selves,

The Commercial and Financial Chronicle

...

for

our¬

Marks

loved ones andthe
of the world .than could
our

peace

otherwise be the

(2153)

Forty Years'Service
Bank and Insurance Stocks

Willi Brown Brothers Harriman

case.

Morgan Stanley Group

By ARTHUR B. WALLACE i

Sells General Motors

This Week—Insurance Stocks
Hartford

nationwide

underwriting

will receive all of the net

largest secondary distribu¬
tions of equity securities/ in his¬
tory.
\
• '•
/r«y

They

Minnesota, .and London, Canada,
of insurance is written by *
be of excellent quality.
The company ranks exceptionally high in the
industry, and has a
better-than-average record of profitable operations.' Its risks are
well diversified both geographically and as to lines of coverage.
Hartford Accident is a very important adjunct as its volume of :

Sloan,
being sold pursuant

are

trustees

diversify

the

board

the \ Foundation

^itsV investments.

foundation

does

it.

stock

These

any

were

Mr.

The

Mrs.

and

Cash

the

with

amounted

total

sales.

and

car

The

1931,

and
49%

Bank

■

corporation

Forty

pro¬

first

sories,

household appliances,
Diesel
engines and locomotives,
aircraft engines and earthmoving
equipment. The corporation and
its

subsidiaries
' the

have

United

123

the

States,

planned

calendar

capital

General

1956

year

expenditures

Motors

amount

the

New

York

office

Brown

Union

Pacific

associates

Railroad.

She

Massoletti's

was

of honor

guest

Restaurant

the

Now

the

sales

increased

from $7,465,$12,443,277,000
and
from $506,199,000
$1,189,477,000.
Earnings
per

were

stock

and

1955

after

$4.30

dividends

the

stock

common

equal

ferred
for

rose

pre¬

adjustment

split in September.

For the first three months of this

net sales were $3,064,583,000
and net income $282,593,000, equal

year

after preferred

per

dividends to $1.01
common
stock

the

First Boston

000 Duke Power Co.

mortgage

The bonds

group

interest

cents

common

stock.

The stock

was split two-for-one
October, 1950 and three-forone in September,
1955.

CHICAGO, 111.—John J. O'Brien
Co., members of the New York
and
Midwest
Stock Exchanges,
231 South La Salle
nounced

Roy

the

Miller

resentative.

merly
Air

Street, has an¬
appointment of Lee
as a
registered rep¬
Mr.

Miller

for¬

was

pilot in the U. S.
Corp.
a

Navy

With Keim & Co.
(Special to The Financial Chronicle)

BOULDER,
Schoembs is

Colo.

now

—

Edgar

its

101.529

and

102.31%

the

for

contrasted

the

$16,511,983; in

1954

tion in 1955

was

4.4

$312,453,000; the market value at

$23,936,000.

Ten-Year

Statistical

1946

Adj. Und.

Invest.

Value

Profit

Income

$66.44 —$0.28

$2.32

Record—Per
Federal

Share*

Net

Price Range

Div.

Barns,

Taxes

$0.09a $2.13

Low

High

61 %

$1.20

433/4

was

Model,

senior

$25

partner

transaction which

finance

tinuing
part

the

construction

was

term loans.

program,

treasury
expenditures

subsequent

and

con¬

the

repay

construction

part

to
to

Nov.
pay

total

Director

Amsterdam

Corporation,

seas

commercial

Over¬

short-

estimated

financing

and

in¬

$99,000,000 for 1956-1957.

dent of the corporation. Mr. Model

joins

bonds will

whole

Duke
50

Power

the Board, among others,

Alain de Rothschild of the

counties

part,

sells

electricity in Toronto,

North

and

South

2.59

0.32

5.70

1.20

10.03

2,92

2.69

10.26

1.20

58%

481/8

1949

88.42

12.48

3.36

4.70

11.14

1.80

75%

56%

96.78

6.39

3.98

2.69

7.68

1.92

92%

671/4

102.56

4.49

4.42

1.13

7.78

1.92

921/4

781/8

112.37

5.16

5.00

2.86

7.30

1.92

108%

84 y4

1953

119.92

8.72

5.81

5.28

9.25

L92

111%

943/4

1954

115.26

7.94

6.57

5.70

8.81

2.16

1571/4

1955

155.22

8.70

7.07

6.18

9.59

2.16

187

♦Adjusted for stock dividends in the period:
a

recently

194'), 33 y3 %

45%

953/4
142

1954, 25%; 1955,25%.

Credit.

■

In the above

liquidating value increased 130%;
adjusted underwriting gain 320%; investment income 214%; net
earnings after taxes 167%; dividend, 80%.
All data is on a con¬
solidated basis.
The gain to the shareholder in the period was
$104.90, or at an annual rate of $10.49. This $104.90 gain was 155%
of consolidated liquidating value at the start of the decade; and
it

was

ten-year

about 200%
Fire

Hartford

span

of the 1946 price range mean.
is

present

annual dividend basis,

costly that many dividend records were interrupted at about that
time.
Since organization, cash disbursements of Hartford Fire
have totaled $128,280,000.
As the stock of this company lends
ments of

folios

itself to growth require¬

institutional investors, it is found in many port¬
colleges, endowment funds, foundations, life insurance
many

trusts. It is bought by many accounts for this
rather than for the 1.87% return available at the present
price of around 160.

purpose

organized

$8,-

000,000 venture capital company.

BANK

NATIONAL

Quarterly Analysis

of INDIA, LIMITED
Bankers

13 N. Y. City
Bank Stocks

and Uganda
Bishopsgate,
London, E. C. 2.

Head

Office:

West

End

13,

Government

the

Colony

Kenya

Baron

French Banking House of Roths¬
redeemable,
child
and
Jonkheer, J. A. G.
at general
redemption prices, ranging from Sandberg of the Dutch banking
105.31% if redeemed prior to May firms of Pierson & Co., and Held1, 1957, to 100% if redeemed after
ring & Pierson.
April 30, 1985, and at special re¬
Mr. Fleck is also President of
demption
prices
ranging
from
Five Arrows Securities Co., Ltd.,
102.31% to 100%.

The

3.43

75.15

companies and
international

in vestment
firm, it was announced
for
by Camille Gutt, Chairman of the
in¬
30, Board, and G. Peter Fleck, Presi¬

The construction pro¬

will

gram

firm's

Stone has been elected

per

underwritten, will be used in

66.19

1948_

payable quarterly. The company's unbroken record of payments
goes back to 1873, some 84 years.
The incidence? of the great
Chicago conflagration in 1871 and that in Boston in 1872 was so

Model Director
Leo

the

1947

$14,-

was

587,058.

accrued

sale

Net income for 1955

1954.

yield 3.50%.
from

in 1955

$119,911,with $112,650,879

being

are

and

stockholders

share
not

with Keim & Co.

1955,

competitive

revenue

bonds, along with an estimated the New York and London In-,
$9,149,950 derived from the sale vestment banking firm of
Model,
of 367,478 shares of common stock
Roland

curred

With John J. O'Brien

Proceeds

part

coupon

reoffered

per

bid

its

awarded to the

operating

for Duke Power totaled

494,

were

May

1955.

issued shares of

re¬

3%%

bonds,

series, due 1986.

279,078,858

first and

Total

funding

has

Carolina, covering 214 cities, towns
and unincorporated communities.
Among
the
cities
served
are:

Charlotte, Winston-Salem, Dur¬
ham, Greensboro, Burlington, and
A group headed by The First
Salisbury, North Carolina; and
Boston
Corporation
yesterday Greenville,
Spartanburg
and
(May 2) offered publicly $30,000,- Anderson in South Carolina.

indicated

Motors

Group

Offers Buke Power Bds.

$309,407,000 or $1.14 per share
respectively for the first quarter

General

31.9
...

1952

compared with $3,100,739,000 and

quarterly dividend of
share was paid, on
March 10, 1956. In 1955 the cor¬
poration paid dividends of $2.17
per share on the common stock,
adjusted for the stock split in
September.
- •
•
■ ■

;

1951

sale

1950

James and the late Moreau Delano.

five-year

net income

4.4

underwriting profit margin figure. Consolidated investment in¬
come, before taxes, was $17,714,000 in 1955 versus $16,459,000 in
1954. Realized and unrealized gain in investment portfolio valua-*

City, Miss Murphy lives in Manhattan.

period 19511955 the corporation's consolidated
555,000

district,

Foreign investment department, she has served as
secretary to several prominent former partners of the firm, which
marked
its 100th anniversary two years after she was
hired,
among them the late James Brown senior partner; the late Ellery

senting the largest total capital
expenditure ever scheduled by the
corporation in any one year.

net

13.6

_____

Liquid

A native of New York

On a consolidated basis, in 1955 Hartford showed a favorable
underwriting profit margin, approximately 9.5%. As the corre¬
sponding ratio for the parent company was 6.2%, it is apparent
that the principal casualty unit considerably bolstered the fleet's

gathering

financial

" ."

8.9

.......l

was

;

the end of 1955, $478,208,000.

Brothers

given by the partners.

total expended in 1955 and repre¬

the

work

Co., at 59 Wall Street, on April 19, 1916, as a stenog¬
rapher. Miss Murphy is not only the oldest woman employee in
point of service, but the only woman in the history of the bank
to have served that long.
•
1/
Today, marking her fortieth anniversary with the 138-yearold banking firm, Miss Murphy received a defense bond from
E. Roland Harriman, partner of the bank and Chairman of the
of

approximately $1,000,000,000, an
amount
exceeding, by 65%, the

plants
six
in

For

went

Harriman &

Canada and 28 in other countries.
...

years

0.2

Stocks.......

Stocks

"■

•

12.8

The cost of these assets

of New York and international banking and in¬
vestment history have been made since Miss Gertrude A.
Murphy

duces automobile parts and acces¬

' "

19.2

Miscellaneous Admitted Assets

factory

also

Obligations..

Insurance Stocks

truck

Government

Preferred Stocks

about

States

Common

States have exceeded those of any
manufacturer in each year
1955

;

3.4%',-,;.;;.- ,''v.

_______

Industrial, Rail and Public Utility Bonds

sales

United

other

commencing

Foreign, State and Municipal Bonds

vehicles

____

United

Sloan.

corporation's factory

motor

■

versus

Real Estate and Mortgages..1.2*

gift

from

lines

ac¬

quired for the most part by

list " of

previously held by

latter

broad

Hartford's investment-policy is conservative. At the end of
1955 admitted assets broke down into the following percentages: •

present intention of selling the
949,937 shares of General Motors
common

writings exceeds that of the parent company ($185 million
$148 million).
:'V:: •
;
:' 7

The

have

not

Co.

the fleet; and the risks are considered to

front' the'estate

decision

Indemnity Co., Hartford Live Stock Insurance Co., New York

Insurance

and trusts of Mrs. Alfred P.

Jr.

;

Twin City Fire Insurance Co. of

}

received

;

serious loss

Underwriters Insurance Co., Citizens Insurance Co. of New Jersey,

of the

were

equity amounting
\

San Francisco

proceeds !of the sale. The offering,
with a dollar value of approxi¬
mately $55,949,000 represents one

stockholders' equity in the company^

early in this century was that caused by the
conflagration following the 1906 earthquake. This/ '
net loss of some $6y4 millions was partly made up at that time -■
by the issuance of new/stock which increased capital to $2,000,000; from $1,250,000, and added $3,000,000 to surplus. •
; "
r\
;
Hartford Fire heads a fleet of'.companies: Hartford Accident V

books closed. The shares

sold for the account of the
Alfred P. Sloan Foundation, Inc.,
were

Foundation

There is also

unearned premium reserve at the same date, the
to approximately $54,000,000.
•
:

priced at $43% per share.
This offering was oversubscribed

The

Connecticut.

Dec. 31, 1955.

stock

the

company

writer

for public sale 1,278,833 shares of
General
Motors
Corp. . common

which

Insurance

giving the

group headed by Morgan Stanley
&
Co.
and
numbering 259 in¬
vestment firms on May I offered

and the

Fire

Company began business in 1810, the distinction of being the oldest fire under¬
Capital at the time of organization was
$150,000, and through stock dividends and rights the capital has
grown to the present $25,000,000, with surplus at $190,138,000, and
a voluntary reserve of
$85,000,000, bringing policyholders' surplus '
(otherwise designated book value) to just over $300,000,000, as of

Corp. Common Slock
A

(London)

St. James's
in

Branches

Branchi

Square, S. W.

India.

Pakistan,

Burma, Aden, Kenya, Tanganyika,

Uganda, Zanzibar, and Somaliland

Protectorate.

Authorized Capital

Paid-Up
Reserve

Capital
Fund

Analysis on Request

Ceylon,

£4.562,500

__£2,851,562

Laird, Bissell & Meeds
New

American

120

£3,104,687

banking

and
also

exchange business.
and Executorships
undertaken

BROADWAY,

Telephone:

The Bank conducts every description of

Trusteeships

York

Members
Members

Bell

(L.

Stock
Stock

Exchange
Exchange

NEW YORK

BArclay

5, N. Y.

7-3500

1-1248-49
Glbbs, Manager Trading Dept.)
Teletype—NY

Specialists in Bank Stocks

The Commercial and Financial Chronicle

(2154)

...Thursday, May 3, 1956

Institute of Investment Banking Classes

Securities Salesman's Corner

Sponsored jointly by Education Committee of the Investment Bankers
Association of America and the Wharton School of

By JOHN DUTTON

Finance and Commerce.

Don't Take It Easy!
In

these

days

when

the

high level and the public are in¬
terested in investments, there is
natural tendency for a securities
salesman to disregard the cultiva¬
a

tion

for

present

"trade

Some
and

accounts.

new

markets

Rising
opportunity

the

outs"

Prospecting for

vol¬

of securities business is at

ume

new

pleasure if you can help other
people to build up their assets,
obtain more income, or do some¬

"switches."

thing better than they have ever

overpriced

done it before.

The

salesman makes

commission

that

and

;

also

pretty

other

The

opening of
mine.

attended

the

bank and I

was

day

new

the

met

door

had

lapel and he

a client of
flower in his

smiling broadly.
happen to have known his ear-'

was

busy
servicing his regular clientele. It's

lier start in life and his

nice way to
while it lasts!

pretty good to be

goal

make

have

—

security

every

that his

such

cus¬

implicit

con¬

fidence in him that he does most
of his business over the

lar

conference

accounts.

and I said,
rector in

salesman should be
tomers

living

The

you

ago."

fort that is necessary in building
a
clientele pays off if you take
care of your customers.
This is as

reason

Past

salesman

pick

the telephone and talk to

sev¬

eral hundred clients and, without
a

discussion,

substantial

conclude

can

volume

business

is just why he should force him¬
self to seek
out
new
accounts.

Sometimes

centrate

a
few
larger
neglect his other

salesman

will

con¬

counts and

years

BUT

WHERE

YOU

THAT COUNTS."

END

RIGHT

CHARLES J.
Chas,

ROW:

FREDERICK

Kay,

Santa

TED

■>.'

ROLLA
...

Co.,

• -

Co.

Mead,

The

ically and mentally lazy. Instead
of enjoying a constant increase in

White,

Kaiser

Aluminum

CHARLES

E'.

REESE E.

Co.,

Corp. 4x/8% cumulative
preference stock at
($100 per share).

Wertheim

THOMAS

par

The shares

are

common

stock

through

May

$56

per

1, 1966,
share thereafter.

per

and

$64

THOMAS

Proceeds
from
the
sale, to¬
they settle back
with proceeds from the
and enjoy themselves. While the gether
of
$120,000,000
first
party lasts they have a good time. placement

Bank,

Charlottesville

Singer,

DE
&

ROBERT

BEN NEVILLE

BELL

Bache

Marks

Co.,

New York

FRANK L.

have

they

to
are

day

when they
and sell again

out

rusty.

Not only will they
they have lost some

find

that

good

25-year

comes

contacts

(through

neglect)
but also the habit of
doing a full
day's work.
Work Is

institutional

used

must

keep your meptal
processes sharpened up by using
them

order

obtain the

results from your efforts.
are used to
putting forth

best

If you
a

good

bonds

investors,
the

new

construction will total

building of

annual

reduction plant

rated

capacity of
125,000 tons of primary aluminum
on a site
adjacent to the corpora¬
an

tion's

sheet

construction
W.

Va.

foil

and

The

mill

under

you

old

and

new

customers

—

The

going to keep in shape

are

new

Ravenswood,

Ravenswood

reduc¬

Cleveland

work

creatively and

find

you

if redeemed after

iq7fi

Corp. is

Chemical

major producer of pri¬
aluminum and fabricated

mary

better

obtain larger and
tory clients when

products.

Its

alumi¬

operations include the min-

ing and processing of bauxite in
the production of alu-

There is

opportunity to Jamaica;
satisfac-

your customers

mina
the

from

bauxite

reduction

alu-

happy with their investments, minum in Washington and LouThey will help you to get new isiana; and the fabrication of
Just

good

times.

suggestion

aluminum
—

there

must be many executives of busi¬
ness
firms
in
your

community
who would welcome a call
today
from
man

that

some

who

would

reputable

would

help

way out of their

dilemma.

securities

suggest

them

find

stocks,

and

aluminum

pilots

variety of products in
Washington, California, Ohio,
Pennsylvania and Maryland. It
a

also produces basic refractory ma¬

terials, dolomite and magnesia.
Consolidated

plan

high income tax

Growth

into

net

sales

for

the

nine

months ended
February 29,
1956, totaled $235,546,000; for the
nine months ended Feb. 28,
1955,

monthly income plan, will appeal net sales were $194,276,000.
to these men who are
plagued
Kaiser Aluminum's net income
with high income taxes and wish
for the nine months ended Feb.
to invest in
something that can 29. 1956, was $28,143,000; for the
give them an opportunity to build nine
capital.

months ended Feb.

was

Co.,

LAMAR

The

Co., New York

STACEY
T.

Cleveland

Jr.

Robinson-Humphrey

Vance,
JOHN

Sanders

St. Louis

Co.,

Inc.,

Dodge

Company,
New

Co.,

FRANK

Chicago

Kansas

First

National

New

York,

New

STURGIS

Bank

Co.,

JOHN

New York

DeWITT

Hutton

JAMES

Baker,
G.

Weeks

;

Paine,

Co.,

New

York

y:. ,V

;

& Hutzler, New

Union

York

Co., New York

JOHN

Sherrerd,

Philadelphia

SIXTH

RICHTER

Butcher

Jackson

Curtis,

$19,119,000.

28, 1955,

Philadelphia

Wood

and

BRADFORD, Jr.
Clark, Dodge & Co., New York

HARRY

White,
FRED

Weld

The

CABOT
&

New

Co.,

York

St. Paul

Ball,

Company,

Inc., Chicago

JERRY

Varnedoe,

Chisholm

Co.,

Inc.,

Savannah

Co.,

•

Canton

Dominick

CLIFFORD

devine,

Wertheim

Edwin

Co.,

Corporation, Raleigh

JOHN

Sanders

Chase

SUTHERLAND

Bank,

New

Dominick,

New

McKINNEY,

JR.

York

St. Louis

& Co.,

MILLER

Miller

Co., Los Angeles

ORB

Lynch,

HIGGINS

Drevel & Co.,

MARCH

The

Roberts

Poole,

Beane,

REMER

Philadelphia

SCULLY

Ohio Company,

Columbus

ROBERT F. SEEBECK
Smith

Fenner

Pierce,

Parke,

Co., St. Louis

Barney & Co., New York

BARNARD

Witter

Dean

Co., Chicago

Philadelphia

RIVEL

Manhattan

GEORGE G.

HAROLD

ROBERT

Chicago
JOHN

ROBERT

York

Toronto

Co., New York

Jr.

New

SANDERS

Ltd.,

Co.,

& Co., Chicago

Walker

RICHARD

SMITH

Walker

GEORGE

Richmond

Paine,

VADEN

Schmidt,
DONALD

JR.

McINTIRE

WILLIAM T.

Cleveland

Securities

Cruttenden &

robert

Corp., New York

KNOWLES

Knowles

Merrill

SAUNDERS

Corporation, New York

KEMP,

White, ,Weld

ROW:

IJAMS

Boston

Securities

Revel

VINCENT

JACK

Curtis,

'
&

Kraus,

Richmond

JACKSON in

Abbott, Proctor &

RANNEY

Carolina
THIRD

Jackson &

Stiver

Burge

Company,

CHARLES LEE

SHULL

Saunders,

•BRUCE

RAHN

Illinois

ROBERT C.

HOLMES,

KELSEY

JAMES

.>/"

Sons, Baltimore

Co., Baltimore

Higginson Corp., New York

Union

GEORGE

Company,

Milwaukee

LINDSAY

HOWE

First

JOHN

SAWYER

Webber,

for

Bank

Juan

Craigie
D.

MAITLAND T.

York

New

ROW:

Paine,

Inc.,

HARRIMAN

DANIEL D.

JOHNSON"*'*"

Garrett

The

DIGNAN7,
Corporation,

San

Hutton

Lee

WILLIAM

Sherrerd,

Development

Rico,

JAMES

Company, Inc., Chicago

Securities

HARRY

Co.,

Reynolds & Co., New York

and

KANE

r- ,7

Space

GALLARDO

MARK

& Beane,

DuGENE..

THOMAS S.
'

Lane,

GRISWOLD

SLOAN

Inc.,

Pierce, Fenner

Webber,

Pierce, Fenner & Beane,

ARTURO

LAWVER

Co., Detroit

FERRIS

Puerto

Waeckerle,

MUHPFRYf"

Allyn

Harold
ROBERT

Inc.,

Chicago

ABBETT

Hutton

New York

Co.,

KERESEY'

HAVEN

ROBERT

f
New York

Atlanta

'.r'

& Company,

SORANSON

Solomon Eros.

York

New

JR.

Roney

Johnson,

JACK

CHARLES E.

PETER

Robert

Lynch,

•

,:L

FUNSTON

J. C.

CORBETT

Hutton

City

York

DURY,

Orlando

City

RANDOLPH

JR.

FARLEY

Merrill Lynch,

Philadelphia
Hutzler,

Stringfellow, Richmond

DAKIN B.

Inc., Des Moines

York

WALL

Eisen

York

New

JR.

DAVIS

Government

not

New York

Hammill & Co.,

Wm.

Atlanta

York

Corporation,

CRON1N,

JOHN

Phoenix

The

New

Evans-

Lucas,

SAUL

&-Go.,

GODSHALL
A.

•

Fidelity Trust Company, Pittsburgh

I.,!"

Co.,

but

Institute

the

Co.,

Bros.

JOSEPH D.
V

HENDERSON

ROLL, Jr.

Clark,

HICKOK

ELLIS

BILL

•

BERKOW

Shearson,

STACHELBERG

Clement

LEONARD

JOHN

Scott

& Co.,

Jones

Henderson

Drexel

Philadelphia

Atlanta
JOHN

JAMES

OGLESBY

Louisiana;

alumina

are

customers

TOLAND,

Drexel

aluminum
New Customers Now

Co.,

WILLIAM

Hallgarten & Co., New York

WARDLEY

York

Ross,

Aluminum

num

Hammill

Reid

Butcher

Kaiser

sales

ability and your
creativeness has become dull and
ineffective.
;
your

1961 to 100%
Mav i

will

Shearson,

OWEN

PETER

class -picture were:

CHARLES CONNOLLY

KEY

ROW:

Baltimore

LaTOURETTE

RUSSELL G.

Fulton,

FIFTH

Co.,

Wertheim

Salomon

New

BOYD

Watts

WILLIAM I.

stock will be redeem¬

able, in whole or in part, at re¬
mentally. But if you take it easy,
demption prices, together with
coast along, hit the
high spots and accrued
dividends, ranging from
try and take the short cuts to
1n,rfnw
104% if redeemed prior to May 1,

LtpnfnoUvTo
eventually become earnlng™.wl}J
difficult

Baker,

Merrill

day's work—planning, writing let¬ tion
plant has been designed so
ters,
telephoning,
interviewing, that it can be expanded to an
creating trades, and talking with annual
capacity of 220,000 tons,
both

EDGAR

Newburger & Co.,

Group, .The,,

-t

will

company's

$178,000,000, and will be com¬
pleted by early 1958.
A major
portion of the program includes
with

You

toward

4x/4%

current expansion program. Estimated

the

Habit

with

Vf':

BARNETT

Securities

Union

Company, San Antonio

Edward D.

ROW:

& Co., Jackson

attending

Scribner, Pittsburgh

But if the

Those

Co.,

7
..77.y::7
Charlotte *-

—

avpearing in this

JOCKUSCK*

Dittmar

Hutzler, New York

HERBERT LAUNER

SMITH

Laurence
SECOND

7---

ALBERT

JOHN

JR.

Co., Inc., Toronto

JOHN O. KROEZE

SMITH

Distributors

Co., Philadelphia

Deane

;

Philadelphia

RUSE

ROBERT E.

McLANAHAN, Jr.
Glore, Forgan & Co., New York

GEORGE

Chicago

TREBELL

ROBERT BENNETT,

ROBERT

MARTIN

Incorporated, Boston

Kroeze, McLarty

ALLEN rT->7-

Bros.

i*./" ':

;

Company,

Greenshields,

Townsend, Crouter & Bodine,

Solomon

DUER

Drexel

business

WILLIAM

;

FURBER

RICHARD E.

McCONCHIE

National

Co.,

San

Jose

HENRY

SHIRLEY,

Boettcher

York

and

JR.

Co., Denver

LORREL L. BEDFORD

WILLIAM

Thornton,
HOWARD
E.

EDWIN

Smith,
JOSEPH

Co.,

Baltimore

Corporation, San Antonio

Philadelphia

York

GORDON

WEAL, JR.

Rothschild
S.

Co., New York

TADDONIO

Bros.
L.

Co.,

HERBERT,

JR.

Philadelphia
JR.

Hayden, Stone & Co., New York

NORMAN

Norman

Hutzler,

TOWNSEND

New York

and Company, Inc.,

Wagenseller
BRUNSWICK,

TEACH

Allyn

BROOK

MURDOCH

Newburgher
S.

RICHARD

Salomon

(Guest)

LEON

New

Waeckerle, Inc.,

City

LAURENCE

Co.,

JOHN

WALKER

ESTABROOK

Eisen

Kansas

BERTRAM

PEARSON

Barney &
A.

Mobile

CARTER

Texas

Lucas,

Farish,

SIMPSON

Jones

WELDON
First

CRANE

Mohr s&

•

EATON
Eaton & Howard, Incorporated, Boston'

& Bodine, 7

BUFFUM

Bodine,

•)-«:

JR.

WITHERS,

FRANK

Company^ Inc.,

BACON,

;;i\ V-v";'-,/1""

Eaton & Howard,

SHUTThEWORTH

New York

& Co.,

Dickson

JOSEPH E.

Philadelphia

New York

Co.,

Marino

HUNDT

DeHaven

DONALD E.

San

Company,

CompanyfcJ&p., Pittsburgh

Stroud

York

Mason-Hagan, Inc., Roanoke

convertible into

Peoples

GEORGE'

New

HOWARD

Chemical

convertible

Company, Tucson

ZANKEL

Hallgarten

BOESEL, JR.

Loeb

PHILIP

Philadelphia
Stroud

GEORGE

Chicago

Townsend;'Crouter

WILLIAM S.

Chicago

.-7-

Company,

.£

Bacon, Whipple & Co.,

STRONG

CRARY

Hutton

ARTHUR

Co.,

LIPHARDT

CHITTICK

New York
Kuhn,

EVANS

California

DeHaven

EATON

Witter

NEWBOLD

Dean

Dean Witter & Co.
yesterday
(May 2) offered publicly 300,000

First

SMITH

Weld & Co., Chicago

BENJAMIN

and

T"
7;

;

Milwaukee

ROBERT

Minneapolis

& Townsend, Crouter &

RICHARD E.

Baltimore

Co.,

St. Louis

JAMISON

Miller

EDWARD

"•

E. FRIDAY, Jr.
Morgan Stanley & Co., New York

FARWELL

; DeHaven

FOURTH ROW:

■.7"

•

ROBERT J.

WILLIAM

Montreal

BIRR, III
California Company,

Francisco

■

-ZWS"

Dempsey-Tegeler & Company,

RICHARD

■77VV'-£;'^.

Limited,

'■

I
r

Boston +:

GITTINS

;

JOHN S. CURTIN
H"'
Kalman & Company,

•v

•

SEVENTH ROW:

V
Bridgeport

Co.,

BUTTRICK; Jr.

Estabrook & Co.,

PENDLETON

Ames

First

underwriting group headed
jointly by The First Boston Corp.

EALRY

Scranton"&

STEDMAN

Hammill

ly : '
Pittsburgh

Co.,

Barbara

RAYMOND

San

TURNER

Shearson,

-,V;'

RUDOLPH

Richards

HARRY

ac¬
cus¬

tomers. Others become both phys¬

their

FIRST

Witter Group Offers
Kaiser Pref. Shares

can

long

back

your

LEFT

Performance

FROM

JOHN

But You Can't Rest

considering that
carried
beer
cases

First Boston-Dean

it should be.

The

FIRST YEAR CLASS

bank

post,

ef¬

it feels
big shot di¬

where you are at the half mile

his

strenuous

struggles

guess

replied, "Yes it feels
good, but it's not where you start,
or

regu¬

"Harry, I

once

around

telephone

with

</,'■

issues

other

and

legitimately be offered; in
their place.
The customer feels
good when he takes a profit and
is willing to try again in a new

The

Keep-

and

overvalued

finds

The tempo

favorable.

selling edge sharp and build
contacts now. • Selling is,.a,

your

can

another

times

become

stocks

investment.

the

customers

new

is not difficult today.
of

Durst,

WARD,

Ward

GARDINER

Chicago

3rd

Inc.,

Los

Angeles

JR.

Co.,

Pittsburgh

YOUNG

Stetson Securities

Corporation, New York

Volume 183

Number 5530

...

The Commercial and Financial Chronicle

(2155)
FRED L.

DIXON

Folger,

Nolan-W.

Hibbs

Co.,

Webb Wilson V.-P. of

Inc.,

Washington
JAMES «L.

MORRIS

Scott, Horner & Mason, Inc., Lynchburg
FREDERICK
Drexel

Webb

Philadelphia
& Company,

St. Paul

many

COGER

CABBLE,
Burns Bros. St Denton, Inc., New York
PEYTON EVANS

Securities

JOHN

Trust

■

York

City, it

was

announced

Francis

Company,

Randolph,

New York

Chairman
FOURTH
JAMES
J.

Wilson

Company,

Thomas

SECOND YEAR CLASS
FROM

LEFT

RIGHT

GEORGE

FIRST /JOW.¬
HUDSON

BOYD

Johnson,

Lane,

Space

Co.,

Company,

TOOMBS,

Company

BULLOCK,

"Webber,

Toronto

Jackson

Curtis,

LAURA

Burr

Pierce,

TAYLOR,

A. Hogle

Boston

Drummond,

Inc.,

Stein

BENJAMIN

STOREY, JR.
Company, St. Paul'

Fulton,

Hallgarten &
VIRGIL

Cleveland

Securities

York

Merrill

THORPE

•

Pierce,

Winston-Salem
BRUCKNER

Merrill
New

Lynch,

Philadelphia

Smith

Space

Co.,

Inc.,

Wulburn,

ALVIN

Fenner

Beane,

Inc.

York

JOHN
R.

JAMES

Alex.

ELZEY

ROW:

Securities

Brown

MICHAEL

GEORGE

Sons,

Bros.

Diexel

Hutzler,

New

RALPH

JAMES

Curtis,

STEWART

Midland

Securities

Corp.

WILTSHIRE

Greenshields
H.

NEIL

Bankers

The

Co., Inc., Montreal

DANIEL

G1LMAN

and

Stroud

Chicago

Dahlberg

New

York

Co.,

Louisville

Inc.,

JOSEPH

H. SULLIVAN,
Cunningham, Schmertz & Co., Inc.,
Pittsburgh

GORDON
E.

Company,

Harold

Wood

Philadelphia

The

National

First

CLYDE

Co.,

Knoxville

Fenner

Co.,

New York

Pierce,

Fenner

Beane,

Pierce,

Fenner

Beane,

Fenner

Beane,

WIZFR

Merrill

Lynch,

Pierce,

Trenton

PETERS, JR.

Writer

Christensen,

Those

Inc.,

DANIEL

REA

Trust

this

Institute

class picture

but

not

were:

CULLINAN

Chaplin Si Co., Boston

Pittsburgh

Company,

the

attending

appearing
H.

Chicago,

JONES

WILLIAM
Chas.

Edwards, Inc., Oklahoma City

Scott,

FALSEY,
Scranton

EDWIN B.

TUBERGEN

Granbery, Marache & Co., New York

Los Angeles

Lynch,

York

SHOEMAKER

Charlotte

JR.

New

Horner,

JR.
&

HORNER,

New Haven

Co.,

JR.

ROOSEVELT

Mason

Drexel & Co.,*

JOHN

Lynchburg

Co.,

LIPPINCOTT

York,

RICHARD

JR7'

City Bank of *

York t

New

FUR YEAR

CHARLES

Bache

MANUEL

PUTNEY

Witter

Dean

Co.,

York, London and Tokyo.
The
$70,000,000 American portion was
foreign corporate issue

offered

the

Co.,

New York

San

RIGHT

E'stabrook

Morgan

Stanley Si Co.,

DEAN WITTER,
Dean

WILLIAM

PARKER

New

York

FRANK

NORMAN

New York

Brown

Sons,

Clement

New

JOHN
G.

New

Evans

Hanover

& Co.,

ALEXANDER

Parker

York

St.

Louis

STEINER
&

Group,

Redpath,

THOMAS

ROW:
A.

Wm.

S
J.

St.

Louis

Cleveland

Co.,

Inc.,

Cleveland

Inc.,

Lazard

WILLIAM

Chicago

Freres
J.

Co.,

BUTLER,

Co.,

JR.

Sutro
New

Furman

RINKER,

Greenville

Co.,

nounce

JR.

will

Pierce,

Fenner

that

Stock

Co.,

members

Exchange,

Beane,

Williamsport

Milton

has

Beere

Manager

their

new

branch office to be opened on

about July 1 in the new Standard
New

York

JR.

Moseley & Co., New York

THIRD

ROW:

JAMES

MERICKA

Mericka

Wm.

Brands
Si

Co.,

Inc.,

Cleveland

Avenue,

Building
New

Edward

its

B.¬

successor,

he negotiated the company's
public financing

York

625

Madison

City.

partner and the opening of
branch office at | Sinking

new

Spring, Pa., under his direction.

an¬

become associated with them and

EHRGOOD

Lynch,

Bros.

York

Co.' and

Robinson

Chicago

Philadelphia

HUNT, JR.

PHILADELPHIA, Pa.—Aspden,
& Co., members of the
Philadelphia Baltimore Stock Ex¬
change, announces the admission
of Frederick W. Phipps as a gen¬

VERMILLION

Mr.

1945,

eral

MOYER,

Moyer & Co.,

1942,

Aspden, Robinson Partner

Trust

Open Uptown Branch

Inc., Boston

PETER

Deposit

Sutro Bros. & Co. to

JR.

Howard,

Merrill

LORD,

Company,

The Ohio Company, Columbus

FOWLER

Mericka

GEORGE

PETER

for

Milwaukee

Thorsen,

LEIGH

ROY F.

Bank

Baltimore

Barney

and

Juan

GUMMERSBACH

EDWARD T. SHEAN

Co., Limited, Toronto

GROTHAUS

Distributors

Eaton

Inc., Atlanta

McDonald & Company,

Ames

HAROLD

Demp8ey-Tegeler
ANDREW

MYERS

Hilsman

SECOND

JOHN

Walker & Co.,
N.

(

Bank,

SHEPLEY

Adolph G.
ALBERT

Smith,

LANGEN

Alester

Co.', Inc., Atlanta
The

York

ROBERT
A.

SIMMONS,

Boston

Co.,

STANLEY

Auchincloss,

Washington

EDWARD R. ADAMS
WESLEY

TODD

FARQUHAR

Alex.

Saunders, Stiver & Co., Cleveland

JR.

Witter & Co.,

DYER:;:

ARTHUR

ROW:

LAWRENCE

RICHARD

VICTOR

dissolution to

second successful

SWANK

Mercantile-Safe

Company,

urer,

Baltimore

Development

THADDEUS

THIRD YEAR CLASS

Sons,

Puerto

Rico,

when

and
Airplane Corporation.
Fairchild director and Treas->

gine

SOUSS

Government

1934

departments

SEMANS

Robert Garrett

1934

public financing of Fairchild En¬
As

PEDRO

Second

with

Reynolds & Co., New York
TRUMAN T.

with

continued

until

Smith, Barney & Co., and while
the latter, handled the 1939

for

SCHILL

;

comply with the Banking Act of
1933 prohibiting Federal Reserve
System members from maintain¬
ing securities affiliates.

Smith
Bank

York market

Company

the company began

ing

Puerto Rico, San Juan

WILLIAM

Wilson

Between

Development

New

that time.

Wilson headed the corporate buy¬

RIVERA

Mr,

Los Angeles

REYNOLDS, JR.

Government
,

in 1922, Mr. Wilson
banking career in the
buying organization of the Guar*anty Company of New York, sub¬
sidiary of Guaranty Trust Com¬
pany.
He became manager for
Japan in 1927, and a year later,
served as chief Guaranty repre¬
sentative in the Orient during ne¬
gotiations for a $122,000,000 To¬
kyo Electric Light Co. bond issue
marketed simultaneously in New

began his

The Bankers Bond Co., Inc., Louisville

School of Business Ad¬

Vice-President

National

ROBERT E.
;

as Treas¬
from 1942

graduation from Harvard

Graduate

Guaranty

MACKEY

First

New

company

1949.

up. to

Philadelphia

COLEMAN B. McGOVERN,
The

the

committee

1942, and

the largest

First;California Company, San Francisco
'

FIRST

KAUFMAN

Goldman, Sachs & Co., New York

LEFT

ministration

HAROLD

Beane,

was

•

Merrill

Pierce,

Wilson

Mr.

executive

the

After

Asheville

;

Corp.,

LEWIS

FROM

from 1939

WRIGHT

Merrill

di¬

and
Corporation
between
1939 and 1949, served as a mem¬

Company, St. Paul
Bank

Airplane

Trust

and

1949,

was

director of Fairchild Engine

ber

Bank

corporations.

Previously,

DAVIDSON

National

both

Providence

PORTER

EDWARD

RICHARD VAN

Company,

Co.,

CAMERON

LUCIAN B. WILKINSON

Denver

York

Securities

Barney

GERALD R.

Tucson

CRARY, JR.

Hutton

New

Co.,

JOHN L. MONTGOMERY,

Fidelity

Dickson

THURSTON WOOD

HIESTAND

Lynch,

NORMAN

YOUNG

BRUCKNER

Merrill

Peters,

Company,

STACK, JR.

L. P.

Inc., Philadelphia

R.
■i

JACK

Smith,

November,

in over-all direction of the affairs

Seattle

Co.,

January.

Oklahoma

Augusta

Corporation,

Higginson Corporation, New York

First

Co., Baltimore

MORGAN B. AYRES

ROW:

FIFTH

HODGES

Company,

Lee

FELIX

attending the Institute butnot
appearing in this class picture were:

Company, Inc.,

for

Bank

Juan

BALE

Walker

FREDERICK

Those

Piper, Jaffray & Hopwood, Billings
RUSSELL

York

and
Cor¬

May, 1950, to February, 1954, and
of the former from May, 1953, to
February, 1954, and participated

GERRISH

Chicago

O'CONNELL

Henry

New

JR.

Bond

President

Kaiser Motors

from

until last

for

COLLAZO

Witter

Vice

rector of the latter company from

San

Rico,

THOMAS

HOOD

Reynolds & Co.,

WRIGHT

OSCAR C.

York

Pressprich & Co., New York

Reynolds

Louis

Angeles

Bank

Juan

Hopper, Soliday & Co., Philadelphia

Co.,

Willys Motors, Inc.^
May, 1953, Mr. Wilson also

urer

BURNS

JR.

Securities

Union

Limited,

CASEY,

Allyn

ARTHUR

Montreal

CHARLES

CLARK

Cumberland

Jackson

Milwaukee
WILLIAM

PHILLIPS,

San

Development

LLOYD

Witter & Co., Los

Dean

Sachs

HARRY K.

Philadelphia

Co.,

St.

Development

Assistant

and

poration

RODRIGUEZ

President

Treasurer

Co., Baltimore

Rico,

ROBERT

GARDNER

BRACEBRIDGE

JR.

Co.,

GATES

York

WAITE

Webber,

Walker &

HORATIO

Winston-Salem

LARAY

Salomon

Paine,

HOLMES, JR.

BURKHAM,

LORD

SOUSS

Dean

Ardmore

New

Vice

Treasurer

York

served

TOWNLEY

Co.,

Baker, Watts &

Company, Dallas

GIFFORD, JR.

York

J. WILMER BUTLER

DORSEY

Poine, Webber, Jackson & Curtis, Chicago
SECOND

Abbett

New

Watts

Puerto

BERNDT

Goldman,

Barney & Co., New York

HARRY

Portland

Inc.,

Puerto

New

MACLEOD

Co.,

Government

Co.,

Newbold's

Lord,

Southwestern

Pierce,

Corporation, the

nation's largest diversified closedend investment company.

ROW:

PEDRO

GOEDECKE

Washington

Dominick,

Government

PIERCE

HEIMANN

Smith,

York

Bank, New York

Barney

GEORGE I.

Co.,

OSBORN

CHARLES

ROW:

WILLIAM S.

ROW:

ROBERT

JACK L.

SIXTH

Inc.,

JOHNSON,

Smither

FIFTH

WELLS

Hanover

KENNETH

JOHN

Beane,

New

Co.,

Tri-Continental
&

Patton

ZILKA

Baker,
&

Paul

Webb Wilson

firm,

which is the wholly-owned secu¬
rities underwriting subsidiary of

since

BERMJNGHAM, JR.
Pressprich & Co., New York

Abbett

St.

Co.,

DONNAN

Dominick

Company, San Francisco

Baltimore

Corp.,

„

Fenner

Zilka,
JAMES

CIAPPONI

Carrison,

FOURTH

Lynch,

The

ac¬

stment

n v e

b^nVipcr
Company, Philadelphia

Phillips

JAMES H.

TREVOR

Lord,

Co., New York

Company,

Pierce,

Research

PAUL

Jacksonville

Hamilton

PHILIP L.

York

SCHWARM

National

New

WILLEY

ROBERT J.

New

Co.,

Paine,

Boyce,

Savannah

Hartford

HANSEN

McJunkin,

MOUNGER

WILLIAM A.

Stroud

GOTTESMAN

DAVID

new

tivities of the

New York

BOGLE

Caldwell

Son, Louisville

BELDING

American Trust

WARNER

Johnson, Lane,

Reid & Co.,

Stone &
S.

DAVID

BUTLER

with

business

Detroit

SHERBURNE

Whipple & Co.,

WALTER

DABNEY

Hilliard

Equitable Securities Corporation, Jackson

Baltimore

WOLFE

Bros.

DAVID

& Co., New York

WILLIAM

and

JR.

SHEEHAN

Proctor

Hayden,

ROYCE

STEVENS, JR.

RICHARD

Incorporated,

White

Kalman

Beane,

Bacon,

will-

concerned

primarily

Pittsburgh

Roney & Co.,
H.

The Wellington

RUTLEDGE

BYAM

•

Bangor

FRANK

LOUIS

LAWRENCE
J.

JR.

WAGNER

Fenner

Cooley & Co.,

Miller & Co.,

Abbott,

Coftin

.Mead,

Limited,

York

ALFRED

WATSON B.

Pierce,

WILLIAM H.

FRANK

Gairdner

Paine,

PAINE, JR.
Abbott, Proctor & Paine, New York

Philadelphia

WILLIAMS

JOHN

HUGH E.

Co.,

THIRD ROW:

Savannah

New

KNELLER

Johnson, Lane, Space & Co., Inc.,

ARTHUR

HAROLD

RONEY, JR.

HAROLD

MAXWELL

MURRAY

BANKS

Sachs

Merrill Lynch,
Washington

Inc.,

Augusta
GEORGE

Goldman,

Minneapolis

HARRISON

WILLIAM
Wm.

the Board. Mr.

PETERSON

Dain

JOHN

ROW:

for

6 5

New

Corporation,
■

ADAMS

Manufacturers

THOMAS H. MITCHELL, JR.
Cumberland

and in-,

executive

years,

Broadway,

Nashville

banking

has been elected a
Vice-President of Union Securi¬
ties- Corpora-

Cumberland Securities Corporation,

Wilson, corporate

vestment

AWS

Irving J. Rice
JOSEPH

CLEMENT

Co.,

KENNETH

Joins Walston Staff
(Special to The Financial Chronicle)

SAN

FRANCISCO,

Calif.

—

Douglas E. De Tata is now with
Walston & Co., Inc., 265 Mont¬
gomery Street, members of the
New
York
and
San
Francisco

Stock Exchanges.

The Commercial and Financial

always introduce subjective
as
(a) lack of confidence

can

Continued from first page

;

of the non-farm population, a new

means of -these studies Kuznets'
by Simon Kuz- series-can be*: estimated quarter.
care- by quarter, so that d current series
fully computed from federal in- is available..
i

"Thp

author* says*

narits

determi-

imoortant

most

™tock

prices are:

nets.5

dividend regression value of the stock,
write the trust laws so that in¬
"Effects of monetary changes and vestments could
be
made
in
in
other Political developments decommon stocks, and ventured the
(2) The size of the
resld^
pend upon the position of stock
come of the public after
prices
in their characteristic opinion that the world had been
and
customary
expenses
have
ranges
about the earnings-divi- moving away from socialism for
and

profit

The

"(1)

outlook

rociHuni

r,t

*1™

run

«/o\

been met.

"(4) Money market conditions,
particularly as they influence the
availability of funds.
"(5) The flow of savings into
the stock market.

The.tax outlook for both

"(6)

individuals and corporations.

statistical

the

But

verification

hypotheses is confined to simpie
linear correlations between
(1) Standard & Poor's Industrial

affect

tops

Sc hpfl! Taxes
before tJy!
National

Product.

correlations

None

these

convincing to one

are

1942

were

about

relation value
levels

have

half

the

cor*

and the correlation

changed significantly

Qhnrtiv

arfinin

Economics,3 June 29 and

First Study in 1937
In my first 1937
paper I reported that "stock prices are only in

relation is obtained by comparing
earnings for the period for which

ahead.

with

earnings

for

sUch corrections

trans-

the

and

company

the

Fred

upon

current

i;"ei^vTi!C34^
71-80.

pp.

The quotation is from

5 ci,arltes F- Roos' "Business
3 Charles

Stock

Prices

72.

paper

mission

.»uiv

23.

1937, Cowles Comfor Research in Economics.

interest rates. At SUCh

TABLE I
.

Savings Banks and Commercial Banks
Open-End Investment Companies—
Closed-End Investment Companies

0.9"

5 2

3.0
6.1
0.8

Personal Trusts, Bank Administered

Holdings..

0.3

5.5

3.5

0.1

3.6

3.0

0.5

3.5

6.3

0.7

7.0

32.7

and Trusts.
Religious, Educational & Charitable Funds

4.3

37.0

57.8

8.7

66.5

4.7

0.4

5.1

189.5

Foreign Holders of United States Securities
Individual Investors

}.9

5.2

6.9

196.4

have

investors'

Total Potential Market
Supply

252.0

16.0

268.0

of Trading and Exchanges, Secu¬

funds

7.31

3.00

—1.64

0.736

8.34

2.68

—2.56

0,626

—

4.70

—3.15

0.515

7.99

11.25

—4.16

0.717

7.97

16.08

—2.99

0.884

7.89

17.45

—3.24

1.101

6.98

18.85

—3.11

0.792

10.90

10.37

—2.77

0.565

14.01

2.10

—2.85

0.574

17.18

—2.04

—2.84

0.681

19.63

—1.37

—2.94

1.181

19.28

3.22

—2.56

1.301

17.86

5.85

—2.45

1.325

16.75

6.84

—2.76

1.593

301.3

—

7.13

19.61

4.70

—2.10

1.950

23.28

6.54

—1.00

2.745

Dividends

—

Bond

Yields,

f Data

Securities

the

from

Loans

for

Reserve

Accounts

Others—Economic

Institute,

Ex¬

Income

$1920-

Inc.;

1932-

Board.

Net

Net Change in

Capitalized

Dividends

of Member

of Non-Farm

Population

(*)

1920

1926—

1927

1929

1931—

1932—

1934

1035™,T

68.2

27.0

44.5

69.2

24.9

57.1

28.7

99.7

38.4

34.1

162.8

27.Q

.62.2

12.4

14.3

1.9

37.3

-0-

46.3

7.3

53.5

20.1

1938—

53.0

—

81.3

—

77.4
95.3

mmmmrn.

108.3

mmmmmm

124.4
>
-

•-

168.1/

242.7 1

1452

78.6

802

75.0

—

•

40^

54.0

—T —

73.4

762
100.4
122.7 :

55.7.

56.4

60.1

19.1

35.6

27.5

36.3

65.5

36.1

30.3

5T.0

43.7

25.8
21.2

152.6

66.9

52.3

43.8

mi/

111.4
112.4

25 2

101.4

41.4

23.6

92.0

31.4

33.7

14^

66.5

1072

36.4 \

46.9

1944—

29.5

34.2

49.4

34-1

90.6

1572

1945—

55.8

39.4

45.3

-29.9

97.5

168.6

60^

23.8

32.6

32.1

104.5

154.2

1947

71.2

60.1

23.2

37.8

62.1

155.1

1948

71.9

96.6

20.7

150.0

23.6

36^

92.9

113.8

28.0

36.7

-0-

172.1

1950:—

120.5

115.7

48.6

35.0

3.4

223.9

1951—-

130:9

253.7

41.4

100.9

53.5

1952T—..^118.0

96.9

54.5

43.3

108.1

93.4

65.5

For lack of
able to

1953—.

250.1

123.5

112.3

80.2

49.2

33.7

299.6

investors' income

1955—

133.3

147.7

112.9

67.9

42.9

405.4

the change in the
*

disposable income of the top 1%

Net

of Automobile

44.4

1954—

use

and

252.9

38.0

better proxy vari¬

measure

F. Roos

39.5

Associates,

Dynamics

Demand, New York 1939,
published by the General Motors Corp.

Capitalized Dividends,

t 12

+. .04).
$ 4.114 x
8 16.97 x (Net Change in
5.00).
11 5 x (Personal Holding
1920-1939 = Sum of Columns 1 to 4—57.1;

Customer Debit Balances of Member

Income

Distribution

of Top

(Capitalized Earnings
Firms NYSE.

of Population

Currency and Deposits + 2.04).
= Sum
of Columns 1 to 5—99.3.

1940-1955

;

73.07

1946

1949

95.2

66.7

56.8

74.5

52.1

1943

64.1

mmmmmm

64.5

•'

45.4 r

29.7

51.8

1942

48.0

mmmnmrn

60.6

40.2
.

(**>

62.3

67.2
.

46.9

Price

,1936—rU 40.4

1937^.

Calculated

69.6

25^

—

72.5

21.9

37.0

14.6

1933.,—

26.2

16.3

69.1

31^

26.3

38.6

1930—

21.3

36.2

71.3

32.3

1928

25.9

24.7

64.1

25.0

—

66.7

21.0

17.7
22.2

17,8

9.1

16.2

1925—

63.6

19.7

Total

Holdings
of Currency
St Deposits
(11)

(B>

22.2

15.2

1924

(?)

20.3

11.6

1923—

(t)

13.3

Year—

of Top 1%

Firms-NYSE

Earnings

„

Personal

Inc. Distrib.

Customer

tional stock funds and their pres¬
ent effect on stock prices.

4 C.

SOURCE: Estimates crmpiled
by the Division
rities and Exchange Commission,

stock

become much.more

and I believe that

I decided to
-

in the late
insti¬

impor¬
they are
apt to have increasing influence
on
stock prices.
However, there
are large statistical gaps and to?
day (Hie can only make informed
guesses as to the size of ' institu*
tant

0.882

Debit. Bals.

2 to

But in recent years,

tutional
;

1941—

time

0.866

—1.14

TABLE III

of total investors' income
some

—1.06

0.41

Contributions of Principal Factors Affecting Industrial Stock Prices

1940—

0.43

5.60

247.4

1939—.

1940s.

Total

1.37}

5.46

246.9

—

Brokers

good proxy

prior

0.8

Self-Insured Pension Funds

1931

super¬

upper

—1.46

226.0

—

Earnings

income

probably

1.312

3.63

182.7

—•

1955 Federal

income series which our

was

—1.72

7.73

Commission,
$ 1M20-1947 Simon Kuznets, "Shares of Upper
Groups in Income and Savings"; 1948-1953 Econometric Institute, ln£.

institute developed in 1938 in con¬
nection with a study of the de¬
mand for automobiles.4 I believe,*

measure

1.1

—_

Property & Liability Insurance Companies

Total Institutional

numerary

the

1.103

2.46

1.126

change

investors' disposable income. This

—

1955

series

proper

similar

one

of the population would be a
better measure of the individual

Commoi/'prefe'rred"

Class of Holder—

;

1954—

in¬

•

1.301

—1.07

5.80

;

422.4

1953—_

Weston in his point (2)

has indicated that

—0.90

1.80

—0.73

——

149.4

t->

1952

difficult of

even

—L28

3.74

—

154.8

1922

pOin£ One posable income of the

(Billions of Dollars)

Life Insurance Companies

definition.

dividends

Estimated Holdings of Common and Preferred
Stocks,
At Market Values. December 31,1954

vestors

0.907 7

1.18

164.2

—

1921

0.348

—0.58

148.0
—

1951___

posits after 1950.

income

—0.37

122.9

—

may

disposable

1.512

146.7

1950

underestimate total investors' de¬

The

■

3.958

—0.61

87.5

—

1949—,

be presumed in
statistical study that
deposits of individuals will

bank

•*"

___

2.40

this

2:423

—1.20
r''

1.389

—1.43

114.5

—

1948___

common

Irr view

1.082

•

106.5

—

1947

—

1946

the percentage
buying has in¬

further.

—1.04

117.2

—

1945

I1?0re than tWlCe its level at the however, that'"this series has in¬
time and said: "In short, there is cluded too much lower-middleclass income; and this income does
no way to - explain current low
not
find
its way
into security
mfHet levels, on the basis of past markets*: I* believe that the dis¬
relation of earnings, dividends and

institutional

creased

lalrtsud'lF
Stoek' M««, was worth

Roos, "The Relation of
Earnings and other Fac-

—

1944___

—0^2.

'■ •'

149.2

—

1942___

only 18.0 and it is

that

likely

quite

an average of
and

—

1943_

bought by institutions

were

and individuals

In this study, I in-

earnings

42.6%

'mm mm'

146.3

—

and 53.0% by individuals. By 1954
institutions
were
buying 76.6%

about

1951

—

1940

—

100.9

—

1941

deposits

owned

stocks

Standard and Poor Index of In-

juSrSTSw

0.900 7

96.8

—

1939—

other two suitable proxy
bank

The

corporate bonds. I concluded that
' on the basisi of this:correlation the

tni'!,he.Secu7
UnUrZe
eIZLu. Lj s.aiZcs
junA

3.89

89.7

—

1938

sists at least of deposits and

divided by current yields of Aaa

indexes

113.4

—

1937

charitable and educational organ¬

second

stock pnces Wlth

Market

■

•

75.8

1936___

the

money

—

1935

for the

°* over.50 add*tional quarterly

industry—

Weston, "The stock

1932

variables have to be developed.

—

1934

(1)

u„?

—

1931

1933

the

—

1930;

power

In my .195° sAtudy 1 reexamlned situation, it
my Previous studies in the light advance of

iv.

purchasing

—

1929

clearly consists of the following:

dicated that the best correlation
of stock prices with earnings, divld?nds ?nd mt.erest rates was obtained by a simple regression of

depending

power

Investors'

(n + l)th quarter. Nevertheless,
prices during each period — a
quarter, six months, a year, or two
years,

the

and other
investors con¬
other
money owned by individuals, in¬
vestment
trusts, pension
funds,

the

0.640

—0.98

0.630

—0.93-

mm mm mm

•

89.8

—

(

1.48

observations

3.21

0.540

Investors' Purchasing Power

nth quarter and dividends for the

—0.80

3.64

must be made. m some

Results of 1950 Study

quarterly reporting company,
prices for the nth quarter correbest

—

3.39

70.5

.—1.22

53.5

For

late

—

0.430

63.9

0.540

—1A7

$ Billions

—1.25

2.87

104.7

0^ten

averaged and dividends

period

1925_.„

5.43

the interest rate. New inventories, redistributions of in-:
come> wa^e changes, and a variety
of °tther impacts will be sufficient
change the character of the solutions."

rough way determined by earnings and dividends. Highest cor-

—

Firms-NYSE

•

Percent

■

;;

6.00

chasing

bpon

are

1924___

izations, casualty and fire insur¬
ance companies, personal holding
above findings and showed that corhpanies, and certain other cortypically these equations had porations. Of this group only the
quasi-cyclical solutions for stock bank deposits of individuals are
P.nc?s- 1 showed that ."whether a definitely known. Prior to 1951
single- or multiple-period solution these deposits probably represent¬
or combination with exponentials
ed by far the greatest portion of
(growth)
is
obtained,
depends
deposit money of investors. Then,

1937.

the

t*—

1.69

"v,,

60.1

——

1923_._

tern of integral-differential equaturns which conformed to the

to the Cowles Commission for Re-

for

1922___

163.6

^n. the

presented to this Society 2 on
June 2, 1950, and in two papers

prices

49.7

——

S Billions

2.76

212.6

powles Conference, I set up a sys-

July 1

1921>._

ef Member

•

(8)

5.37

continuation of earlier work which

search in

% Per Share

612

168.5

cer-

This study is

1026 =M)0

1928—

of the factors listed

significance.

—

Balances

Population

4.72

led

c£*SSg

tain others and tested their statis-

tical

'.-Net Cu«-

tomers' Debit

Topi %

of Non-Farm

Deposits.

4.27

Business

quotation and

124.9

tical

above

•

100.0

i°g£& iST « = - be relatively

the

(t)

1927__„

Har^ard

1920_._

and interest

changes in personal
taxes
and
in periods of rapid
credit changes.
This observation

around a value determined by the

(»>

•

■

Ineotne Distrib.

Holdings of
Currency

Dividends

Price Index

1926___

peared in the

measures

Earnings &

50 Mid. Stocks

bank deposits and other
(2)
wexj_defined correlation scatters money owned by investors;
with accurateiy defined variation the disposable income of invest¬
ranges.
Where the earnings are ors, and (3) changes in loans made
s
negative, prices of the by investors. But obviously data
stock fluctlfate characteristically exist on only the third factor and

the correlation values; stock prices
in

Personal

obvious after-the-

jnstances

•

—Net Change in

•

Capitalized

Poor's

significant

aPPear t? be^random
ctiir scatter diagrams of price and
in?Q9qwpST about twice earnings—no dividends paid—into
ohm A
twW
in
1929 were

prices

and

the war and
at other times when there were

^r eLmoTe ^averSe ^ form whkt
n

Re*

fact conclusion that investors' pur¬

ticeg

ana

finn

Economic

Standard

corresp^

ticed in the analysisthe economic
of practical
furthermore

data

TABLE II

rates occurred during

"Earnings as reported by comCan not alWayS be USed to
obtain regression prices of stocks;

rrnl
Gross

9nH
and

Profits

Bureau

Industrial Stock Prices and Faetors
Affecting Them

systematic residuals in a correiaimply additional casual fac¬
tors. Examination of the residuals
of the. 1950 study indicated that
the wide differences in prices of
stocks
and levels
indicated by

Tnta?'PnrnnrstP Panies

!nH

National

tioh

•

1953,

search.

year.

dividends,

earnings
adjusted
for both inventory gains and in¬
ventory losses. Theoretically, these

Kuznets, Share*, of Upper In¬
Groups in Income and- Savings,

mathematical statistician

earnings,

stock price index. These
as-used in our study are

5 Simon
come

might well be the
The
corrections which make the ac- principal missing variable.
main difficulty then was to de¬
counting practices of the company
fine investors' purchasing power.
with accepted prac¬

PrSL h^fnroCTavi« In^N^Hnnal
WnmP

To the

and on|y slightly, if at all,
prices which are at the

ranges

Price Index and Gross Na-

Stock

at least

regression values. Stocks in
higb parts 0f the ranges drop
quickly when deflationary developments
are
on
the ' horizon,
whereas those prices that happen
to be in the bottom of their characteristic ranges are little affeeted
similarly, mildly inflationary
situations will, in general, start
upward prices of stocks in the
bottom
of
their
characteristic
dends

"(3) The state of confidence.

This series has been

this fluctuate widely about the regres* sion lines; and the average of the
maximum quarterly deviations for.
100 stocks is about
of the

Perspective."

in
the

naner

index developed

the

permanence of earnings;
(Jb) the growing importance of
savings in forms hot suitable for come tax data and is available for
Factors Influencing Stock Prices
stock
market participation, and the period 1920 to 1947. The Eco¬
(c) the trend toward socialism." nometric Institute has made care¬
To sum up, the variables which
In 1950 I briefly discussed each ful studies of personal income dismight determine common stock
point, forecast at least three years tribution in relation to dividends, prices are listed below
of rising earnings, indicated that officers' salaries, entrepreneurial
(1) Corporate earnings per share
legislatures were beginning to re¬ income, and other elements. By of the companies included i» the

Prices?

What Makes Stock
Market

factors

Chronicle.Thursday, May 3,1950

(2156)

Number 5530... The Commercial and Financial Chronicle

Volume 183

should also be, adjusted

earnings

Earnings

Dividends

—

Bond

rate

other non-recurring elements: Yields Combined Into One Factor

for

and for unusual bookkeeping prac-

tices.

particular,

should
be adjusted for accelerated depreit

when

ciation

they

not

proper

charge against earnings.
per

share of the corporation included
in the stock price index.
.

chosen

(tends,

and

earnings,
vields

bond

variable.

singie

combine

variables'

sonal

dividends

Corporate

(2)

have

three

observation

has

led

casts

earnings.

For the

bonds

equal weight to the two series I

measured by Moody's index

Ml'individual

savins

the

dennf

fnrm of demand and
form nf demand and

time
time depos-

varfahle for investors'3 ha°n k
f.md^ Th^refnre ehaneec; b? the
Irnnnrtinn^nf^ee,',HHe« hnuiht hv
FnffiVnnn? SnK S the
institutional investors from
™?11 lfwiiv find'

have multiplied dividends by two
and added the product to earn.

Thig

Jents

departure

most

for

about

Such

million

reinforce

un-

so
SO

short-term

securities

investments fon .earmarked funds
that in this study we have chosen
to

omit them.

servations

investor

behavior

this

From

point

investors

stock

mon

individuals
I.

welfare

with

But

funds

(Q)
i W

pension

a*ye.JLwevn,

nual series

graohical

variables

have

over

Narrow Multiple Correlation Range

Table
rjvjppc

cent change

net

in-

shows

III

actual

with

comnared

a^rshows

customer

variables

in Tahle TT

the

cal-

der levels.

The President's

mes-

credit

are

;

or
of

Unpredictable Events
unpreaictaoie events

study of what makes stock
be

can

complete

incident

instructive

in that it illustrates how

unpre-

taken

in
It is

situations.

to past
example of the.

response

Many

other

examples

changes

pensated
.

the

seven

study,
stock

m+i°rS influence
iU?f m
little

have

calculated

stock

old

cnr,h_

man

Sa£h» «

^
factors, no

f/p

e- Y! c ef

Russelfw
scliaffer
| A fe/e

Lcker ^

Necker & Co.,
Secretary,
?
^
J'
i

AsodenRob-

Treasurer

John

K1ddpr

Brooks

Diver

Demnsev

?' Bempsey,

ahnrfv

Pas* President ■ Mcllvaine was
Placed on the Board-of Governors
for a one-year term, while Eugene
LYf

S. Boothby,

Dillon & Co. were
elected to serve two-year terms.

Golkin Underwrites

Stubnilz Greene Offer
Stubnitz Greene Corp.

is offer-

ingt^holders oTits^ommon^stock
0f record March 26

1956

rights to

Sfunl!' Lr$loo0,000
nf FilA %

sinlrincf fund onhnrdinatM
of 5Vz% sinking fund subordinated

debentures due May 1, 1966 and
shares

mo 000

fiO-eent

cumula-

holder

fS^^
from the

deviations

100

basic trend

Un¬

offering each

an.d stock'will brentitled

unpredictable influences. 10 However, he has

fundamental,

•rieblueut»

pi(Jh^ u
M^Tliainp'

der the terms of the

Stock Market Technician

un-

Tahlc

ZT
force,

„

tive preferred stock (par $5).

when

n..nn

„

1UU'UUU shares 01 bU cent cumula

prices.

President s illness, Supreme Court stock market technician fit into

Clearly

„

can

without

consideration of the effects of

M_plrpv

9°'' a
Eastman,

particular

Aiieci
Affect

The

—

J- Armold, of Harriman, Ripley

pub-

own risk.

Pa.

Muniicipj^Bond^iCI.ub o^PhUadel-

current economic tendencies. This

Econo- cited to show that random news
metnc Institute with the warning items, unless they refer to develthat clie*ts
" do so at their opments which will cause uncom-

the contdbution of

^chalS°ofSh?hWeS

market

PHILADELPHIA,

sage merely accentuated the then

™^corrl ^ons «jars and peace, and the ^ture The answer seems to
other government actions.
be that he does have short-term

nortraVpd

stock

nrire5?

said that certain prices were too
high. A decline in commodity
prices was already indicated by
excessive and wavering new or-

both available monthly. Hence, tendency of government
one can construct a monthly cri- very late in its actions.

prices

disposable personal

series,

method

eco-

often
a".af
fT?4
djctable government , action is

security

and

1% of the non-farm population.

The

tbe

nomic recovery already underway and clearly portrayed by
rising levels of new orders.
On April 2, 1937 President
Roosevelt in a press conference

lndex of dividends. Interest rates
and

Club Elects Officers

unex-

signif-

event merely accelerated

ratio of dividends to earnings one

in the personal income of the top

(6)

that

little

ings and Federal Reserve policy

improved.

of^tock6 prfcra ^ds'can beVuite
0£i P
quite

hvt(nf1'?{.-»
combining the rat.o of these
with the per

thesis

have

events

was directed toward lower interest rates.

earnings, dividends,

tL
terion. Such an index ;
good's- and" lished regularly by the

nnaiv«jp«s*

equallv

are

dePendent

growing rapidly,

funds to total

pnrrPiatinn

moreover

income

However

^^up'any le'ads^^thatThe
L#K|M

the

shown

gultg

However

most

own

stocks

common

Table

use

;

This is a proxy variable for
the disposable income of all com-

could

one

multiple correlation analysis in*
inHpnpnHpnt
vpH2
P
(<0,

tion

the

The end of the War with Japan
in July was followed by only a
very short-lived decline in stock
prices. The reason is that investors expected quick repeal of
the excess profits tax to offset an
expected decline in gross earn-

Also from this index and the

ent varlables-

(5) Per cent changes in the disposable personal income of the
top 1% of the non-farm popula-

few

from the 1950 study in which 1 interest rates> and security mar.In September, 1939, the outsimply added earnings and divi- ket credit and interpolates the break of the second World War
dends. Both theoretical consider- other series on a quarterly basis, was followed by an immediate
utions 7 and my own personal ob- But even this calculation can be rapid rise in- stock prices.
This

have

other u.es as temporary
oiner uVs~as temporary.

many
many

icance.

these

description

pected

nHoPc

frequently been used by the
bears as temporary havens.
But

floated

may

have led me to believe that longSince 1938 the Econometric Interm interest rates should have stitute has published a monthly
rfimu!fpH fr^m
fnrmni^ C the same weight as earnings and criterion of industrial earnings
L n!?f 1
dividends. To achieve this end I calculated from production and
Thp?p L also some question as to divided the index of earnings and shipments, prices of finished
i
There is
dividends by the yield of Moody's goods, prices of raw materials and
whether other liquid assets such
long.term £aa c*rporate bonds, wage costs. This criterion, or curas the short-term bills and notes
This led to a single variable, (cor- rent index of earnings, has been
held by individuals and instituporate earnings +2 Dividends) + at various times geared to diftional investors should be added
/Bond yields)
which is not sig- ferent earnings indexes.
It has
to our bank fund series. Unquesnjficantly correlated with secu- recently
been geared to the
tionably,
short-term
securities
rit
ioans or ^e other independStandard and Poor's earnings inhave

inH

issues

new

other historical developments will

Hfvwinr.«

brief

optimistic

thinking

during the"y£&K

In any event our calculated
level shows that the market was
a bargain.
In general, the calculated stock
Price index has led actual prices
when annual data are used. The
lead characteristics are brought
out more clearly if one substitutes quarterly data for the an-

pe-

yields of Aaa long-term corporate

number

ues.

riod of the study, 1920-1955, dividends have amounted to about
half the earnings. Hence, to give

(3) The long-term interest rate

year

well have influenced market val-

the average investor
gives about equal weight to diviand

the

employed.

believe that

dends

and

called

per-

that

edly competent government fore-

the

into

earnings.

witnessed a"succe^idh 61 stibpos-

divi-

Extensive

(2157)

common

to subscribe

to one unit consisting of ^250 nrin-

^ra^'oVnt 'of ZenLreVand
o'i

cumulative

stock

Drke

preferred

S4?8 75

unTk'subscrfpUon righ" wUl

Dire

Mav 9

ner

ex-

1950

^ bNaianCyenSrk0fSt"ekm^erbfiTS P^es
the ye\r?iC9™55StFCor
existing8 move" lllT" ^ °Ur
Vari" Attached to 'the debentures are
Is proxy variable for theC credit chlnef7n neL'nal^holdints "If ment is accentuated. An imporFinally, we want to observe 5-year common stock purchase
used to purchase common stocks.
urwV anrdeposits ha^
tant hrobIem arises only when the that the study completely upsets
sSfc, of lommon
In the late 1920's and early 1930's
ISdfrom thlcalculated price unpredictable acts against the the theories of those economists "J"'
°The offer
brokers loans for the account of
i do not believe the Musi™ of !!;end
alrea.dy in Pregress- of who.believe that the stock mar- ft0oC^,lfn8„Pfnrri^fJrttfpJ L roll
others represented another impora

^is

tant source of stock market credit,

Today

various

holding or
quasi-holding corporations appear
to be able to arrange with nonbank

for

sources

purchase
loans

kind

this

the

_i_$3 6
-

abroad.

However, most of these
activities are probably correlated
with
it

tuai

1950j

The

listing

mere

variables

does

weights which
in

these

not

cial

the

yield

influencing the prices of

readiiy

r"a

prices;

half

mtlUp^^TrelaUoI6

stock

com-

variables
with

for

other.6

correlated

correlation
the

use

this

one,

with

series.

dropping
single

Where

all

that

ultimately

statisticians
results

non-sense

two

are

character-

was

un"

used

can

reverse

the

same

economic

Either of these situations
ean be detected by several of the
econometric indicators. Thus, a
series
of
confidence-destroying
events ar* detected by a drying
"P of orders for consumers' and
durable

goods

this

and

'Production, earnings,

precedes

and

I°0 'Low'"Ta? is happening to
ao ^now ^v"at is^hltlIm 1^°

■

„

The debentures are redeemable
Jbr°ugb the sinking fund, on at

least 30 days notice, at the par
value theieof, together with accrued interest to the date fixed

aTsoTubWt

are

redempb™^

alsa suoject 10 reaempnon ai

£an}ings> dividends, interest rates, the option of the corporation in

°
securuy market credit.
to

See, Herbert E. Jones, "The Theory

of. Runs a. Applied .to Time .Series," Re.
port of lhird /f"nua' Research confer-

anv°Va"SaI debe°ntureVat

IL
any

ttae

In
on

gether whh

llast

dall''no-

at least ^5U aays no

awruedTnt^esl^q the

for

redemXn

adie llxea 101 reuempuun.

Re'archllf'Ec5;,^!:"
Mff? f:

divi-

l6-"!5-??<!..lmp°rtant. tr?nds in

were

also

consid-

This

negative

residual

production

and

corpo-

7 Charles F. Roos, "The Dynamics of

3fved

have
are

stable

Significant changes in corPorate °r personal income tax
rates affect either earnings after
taxes and dividends or the per

cent of income of the
of the population.

ket

October,

break

New York, 1939.

8c. F. Roos, "A General

of Fit

for, Lines

Variables

Metron, 1937,

long

apt

forces.

and

invariant

Planes

ac..kc

Cri-

when
"

Voi:exin,b)ppC,3-20. Er'°r"

9 Herbert E. Jones, "Some Geometric
Considerations in the General Theory of
Fitting Lines and Planes," Metron, Vol.
XIII, 1937, pp. 21-30; Herbert E. Jones,
"The Nature of Regression Functions in
the Correlation Analysis of Time Series."
Econometrica, 1937, Vol. 5, pp. 305-325;
and H. T. Davis, The Analysis of Economic Time Series, Bloomington, 1941.

orders
.

"res?

Aaa

bonds

were

Pre^ident

money

craaio a, becre-

/ branch
.

n«,H0n

Manadpr

Inc

•
iq

,,'1

Wa 14
If

Orancn

V
.Tnnps

D_-..I

Romananv flnone

IxrtOUl r\OITl«ria.UX VypcIlS
Raoul

Romanaux

.....

securities

engaging
.

business

from

of-

ingj and (3) individuals bank de-

positS

had
_

dUCecl

been
rpc;i1it

result

Somewhat
nf

the

-P

£rdSad0U™arrworrklIg
additional woiking

re¬
InrPe

largt

fices
York

CUv

lOIK Uiy

Fifth

stubnitz Greene Corp. is a lead-

indePendeiTt producer of heavy

duty seat and back spring assem-

Tht Krfrlr.v! blies for commercial vehicles and

TTtah

ManaSer is Walter Jones.

snread-

yieias Ol ^aa DOnuS weyO Spreaa

of Morgan & Co

™

sUDDlv and exoectations Of higher
v;pid<;

Vke

news of the Presi-

the

Robert Dver

d^"^Bobe t Dy^er, Vice-P:resident capital.

been

popularly

tightening

Inc

c0"tinae to specialize in mining the corporation s new plant being
?n
01i a^?d g?s{ stocks> mutual constructed in Vincennes, Ind.; and
fu"ds» ba"ks and insurance stocks, the balance will be added to the
dent

bG6n

the purchase price of the assets
acquired, from Reynolds Spring
Co.; approximately $70,000 will

;

mar-

in August and September, 1955;
t^ie Federal Reserve Board
had

S-U
i l^aS
been ^ auged to proximately $100,000 will be used
^°1'?an & Co., Inc. The firm will for machinery and equipment m,

upper 1%
stock

However, the facts
sharp decline in new
for Capital gOOds OCCUrred
^
"

(1)

are:

1955,

has

JJ^aced illness.
to the
Economy,
dent's

break

highly cora
multiple
correlation.
See,
for
example,
Ragnar
Frisch, Statistical Confluence Analysis by
Means of Complete Regression Systems,
Oslo 1934, or C. F.
Roos, "Annual Survey
ef Statistical
Techniques," Econometrica,
Vol. 4, 1936, 368-381.
variables

first

under-valuation may well have

terion

obtained

the

direction,

The

year

prices

1944.

levels

All

examnle

weight of which act in the

variable.

down.

known

for

bllrish forelastforthe postwlr

is by far the safer one
particularly in cases where the inter-

6 Mathematical

are

been due to the preponderance of

but

general, the second technique

correlations

1929
sne-

that

actions,

^ the' Korelrf^ar"sOddenlv* yleld6-?

Stock

combining the correlated

variable
In

are'

and
were

factors

accumula-

lesser

many

trends.

10%

erably below the calculated level

high inter-correlation of
"independent" variables, one has
choice

there

are

tion of

ket is either a discounter of the
future trend of business or purely
a game °f cbaacf; While many
trad£rs undoubtedly buy and sell
on. hunches, no information, or
uilsmf°rJliatl0n» their actions tend
\° ^an5e} out.and leaye the trend

Lesser "government action !>gton' 194b ,ppdeveloped and speculative excesses'-merely-eauses minor moves in the .<.
deveioped throughout the'■^efcon-cmarket.vr t4.',
».» •H: '• »
•:
Now Morgan & Co

there is

the

1932,

vear

vva

ward

over the
period 1920high enough to forbid

1950 is not

nricesl

1943>

t^e

particular,':

already called attention
close correlation')between>

the

lc-

b^ween

than

less

the

hed -by S'°W and ~>mewhat

have

that

identifiable.

i959

of government
ucti°u to override fundamental
f°rces has usually been grossly
exaggerated. Only unusual govpower

several

highly

are

each

The

ernment action
particular

additional

the

billion

principal residuals
1944;

six

they should have

within

were

caiPliiated

in eacb

and

in-

1933-1939

year

of -$1.3

usually

The

variable for

proxy

and

small

them.

For

billion

Notice

debit balance series and

our

serves

changes
range

cases 11 ean be said that:

significantly

resiL.s (luflrences

arranged

are

net

^row

loans to
stocks.
Some

would

the calculation.

durin" the

stance

large

common

factor

improve

large

Avenue,

New

•
£ tbe largest independently-owned producers of seat and
back spring assemblies for pleas¬
ure cars. The company also manul

factures mechanical springs,
plastisols for
P
£abrics
versified

products.

coating
and

markets

vinyl

metals,
for di_
electronic

paper

and

The Commercial and Financial Chronicle..,

(2158)

Thursday, May 3, 1956

responsible in large part. It was true in 1953, and it
various other occasions. The real ques¬

Continued from first page

tion

We See It

modification

preferred pattern of be¬
havior for the ordinary man had to be made when allout war came, but such changes were labeled temporary
and special, and as soon as the war was over there was
a
general return to the common New Deal concept of
how the consumer ought to act and to the same old type
of policy designed in part at least to persuade him to be¬
have as desired. The fact is that much of this type of

But it

happens that for

one reason or

another the

Federal Reserve authorities have not of late been
to feed

further boom in

willing
spending. They certainly have

been built

situation has

the

case

Savings

Other

and

enticing.

about

the

ment bond aspect

and

other
to

seems

from first

are
quoted in the
Among
the
corporate
bonds held by the funds are sub¬

Broadening the Maiket

stantial

For FHA-VA
ment
field creates the slightest
prejudice for or against mortgages
or
for or against any other type

investment.

men,

for

the

have

closed

have

and

These

most

minds.

should

But

have

involved.

competitive factors

prudent men they,
will go slowly and take time to
make up their minds when ap-

proaching

field

of enterprise
they will and
do examine and weigh all the advantages and disadvantages of any
given investment proposal in the
light of the requirements made of
a

them.

new

But

them

and, as I have just said, in
the
light of values offered by
competitive investment proposals,
Pension Funds and Mortgages

course

have already
thought
long

you

much

and

heard

play as
a possible source of funds has attracted
an
increasing share of
your
interest if the number of
mortgage bankers who have called
upon us in the recent past is any
may

guide to your thoughts.

for

sale through so-called
private placement to a

number

The yields on such bonds
usually higher than on public¬

thi

including

offered

of funds

£ensl2? Fu2?s. administered by

also attracted to

are

gotiated
,

conditional

"tightening up" has not

gone

far

students of financial history are well aware. To
the younger generation whose
experience in the financial

largely

Deal, Fair Deal and the

mainly confined to the New

current

Neo-Fair

Deal, it

may

otherwise, but a glance at the facts of history soon
reveals that a 3 % discount
rate, or any of the other money
appear

market rates,

can

not be

regarded

Deal and post-New Deal standards.
the

high except by New

When

one

remembers

high income tax rates of this day and time and recalls

that interest paid is tax
deductible, one finds it difficult
to believe that such interest rates as
those now

charged
can be
any very serious deterrent to any legitimate busi¬
ness.
Any effect produced will be, we feel certain, a result
of
uncertainty about getting the money needed when
needed, or of the so-called "warning" that recent Federal
Reserve policy is
widely believed to carry.
Of course, there is a certain "risk" in such
policies as
that of the Reserve authorities in
recent months. There
need be no doubt that if there is a
downturn in
with

business,

will be

rise in

unemployment, the Federal Reserve system
viewed by a good
many managed money devotees

and

size

potentrust mar-

at rate, under certain mar¬
conditions, in excess of open
rates
for
Philadelphia

ket

market

Plan Equipment Trust Certificates

•

™

About 75% of the total amount
of trusteed pension funds apparently has been invested in bonds,
Recently, however, a somewhat
lower percentage of the net addi¬
tions—approximately 65% or $1.3
billion a year has been going into

b?nds or obligations of various
kinds.
These latter figures would
reasonable

of the

measure

size of the fixed

seem

income

bond market available to
borrowers from this source,

all

...

t°

have residual values.

and

available

are

induce
there

and

from

Point No. 2—The

difficulties

Title

because

extent—are

the

in-

bonds, because
be purchased from time

may

time

because

substantial

the

and

investment

because

and

tion

are

and

most recent I have seen indicate

lished by The Russell Sage Foun-

indicate

that

the

amount of money

presently accumulated in pension funds of corporations
(other
than
Pension
Funds of banks, insurance companies and railroads) is about $25
that

and

the

increase

running at about the rate of
$3 billion a year. These figures do
include

State

and

tanedenanalysfsn is^made^'of

^t v^lue
stocks

+1,

60%

insured plans and

$15 billion in self-

administered

which

about

$2 billion

added

each

trusteed
most

part

ranging

year.

Pension

diversified

trusteed plans to

may

you

Funds

and

being
know,

for

the

government

stocks.

The

hnn

anH

QTY?rmn+

I
a

of June 30, 1955

0
T

colleSe and university endowment

funds

covering 38 such funds in-

funds.

kinds

represent
interest

lion.

$2.1

follows:
Cash & Bonds

31%
56

Real Estate &

Mortgages

Miscellaneous

re-

—

about

investments

such

funds

and

are

investments.

Mortgages must also

compete with preferred and
mon

stocks

for

and

endowment

Neither of these

has

ment
over

the

few

well-managed
day,
most

anyone

years.

pension

dowment funds

funds.

forms of invest¬

disappointed
past

com¬

investment

earn

Many

and

over

en¬

4% to¬

that overall rate is a
important competitive fac¬

and

tor.

All

lend

weight to the point of view

this

would

seem

that when talking about FHA and
VA

mortgages

for

fund

pension

investment

and
we

comparison solely
on
the spread between the net
yields on them and those on gov¬
our

ernment and

publicly sold

corpor¬

ate bonds.

Problems of Mortgage Portfolio

100%

self-administered

philanthropic funds
values

that these

suggest

Total
So

cannot base

and

which

medium of increasing

Their holdings were divided

valued

Commo^Stocks!:::::"::

high-grade

endowment

assets

corporate

pension

with

investments of this
represent 15% or 20% of

bil—

dicated

bonds

SEC

ported that at the end of 1954 the
f
trusteed funds studied by them
,

12
JJ
investments and bonds a-

sold

some

funds

costs

govern¬

familiar,

pension

I now come to the second major
point confronting those who
handle pension
and endowment

trus-

fund

pattern of investment

from

common

are

mar

inis sluay r<:veals tnaJ

municipal

Of these total dollars about 40%
ut tnese total dollars about 4U h

about

ac^ouTtT^for^ve?1^^^

A report

is in

°nu^»

This study reveals that

funds.

apparently

the

now

not

for

potent, though per¬
haps as yet unappreciated source
of competition with other fixed

£ vf? JanaJ

s+envt^ Ifjt
*]o

than

publicly

therefore

MJ&XS
Insurance)

administrative

endowment

best

the costs of acquisi¬
much
greater and

greater

kind

billion

not

are

securities.

The

officer

satisfy himself only as to the
credit standing of one borrower,

counsellors. Figures here are more
obtain.

amounts,

investment

need

total

and the Institute of Life

of invest¬

they all provide
than those obtain¬

marketable

that philanthropic foundations at
the end of 1955 had a total worth
which confront many of those °f about $4.9 billion. This figure
who handle pension trust in- appears in a book recently pub-

the SEC

the Na¬

Housing Act.

yields

mortgages

vestments

avail¬

now

VIII

they

FHA

new

able

purchasing and administering
and

Lastly,
Capehart mort¬

higher

the

banks

which

rates

debentures

under

tional

purchase.

the

are

gages

able

their

foregoing—

perhaps, I has neglect-

some

These types

of paper are sound and have been

field which I suggest

addition

which

I mention these field

Philanthropic Funds
and here is

reserves, production from
is purchased by large oil
companies and which frequently

proven

ment

principal and rate of interest be¬
ing assured by large oil com¬
panies, and of oil payments on

difficult

ket.

best figures presently available (a
combination of data published by

business world is

two

tial of the pension

are

will of themselves
encourage

the funds

yet,

the

ne¬

con¬

tracts

ments

length

great

sale

your group,

I will therefore not dwell at too

bonds
of
Certain types

corporate

comparable quality.

New ^°r,
?.
shows a or corporate bonds. So-called
V
?r
cen*a.f2
(62%) in Corporate Bonds with leasebacks, used by corporations
to finance many purchases, afford
J?1 ° Jj* ® aj? ?
representing only yields above those on publicly
0-244% of total investments. So
offered and
quoted
bonds. The
by using Jhese reports, we can same is true of
bare-boat charters
Produce the following general
of
tanker
ships, the return of
conclusions:

current

Trusts

A recent study by the N. Y.
State Banking Department of

to be

Pension

Invested^in
*.

gages."
that

96%—the

eoual

not

are

costs.

mnrf«a«ptj

about the question of "broadening
the market for FHA and VA mort-

And I know that the role

fered

are

fi£,ures

various

that

of
prospective
purchasers in order to avoid the
expense of registration and other

2% Cash.
Th

and

publicly sold or quoted.
Many
good corporate bonds are now of¬

limited

Stock,

4% Preferred

amounts

of obligations

direct

ig% Common Stocks,

they do
impartial

I
18% U. S. Government Bonds,

and

to the relative

the average

54% Corporate Bonds.

not

inquiring minds. From experience, if nothing else
they
are quite aware they do not know
all
the
answers.
And
they are
willing to explore all types of investments—their principal standards necessarily being satisfactory
security and a net return suitable

invested

were

follows:

investment

part,

kinds

subsequent

This process of

mis¬

which

vjce

Really Tight Yet

market.

Many of these are invested b>
banks or receive investment ad-

Not

Funds

would

and VA's with a net yield
higher than the yield on govern¬
ment
and
high-grade corporate

page

bonds

ings of the rank and file. Whether such policies as these
saving by the rank and file
-—saving, that is, in cash form and placed at the disposal
of others for
spending—remains to be seen, but this con¬
cern for the
saving of the public is wholesome.

govern¬

gage banker needs to do is to offer

Continued

Point No. 1—The

tutions

thinking

of Pension Trust

take to conclude that all the mort-'

make.

something less than sure that they can get all
they would like to have from the banks. Insti¬
have begun to compete rather
actively for the sav¬

in
and

investment

and the creation of
at least

But

corporate

vestment accounts of various other
Funds primarily philanthropic in
nature, Endowments, Foundations,
charities, colleges and schoo\.

borrowers

Investments

The size of this market is large

points
which I am told should always be
examined before taking up such
comments as
I
shall
go
on
to

some

and

larger life insurance companies.

upon

particularly restrictive—with the discount rate
3% or under and no great outpouring of their holdings of
governments—but neither have they hesitated to "sit
tight," as it were. The net result, or one of them, as every¬
one knows, is a
firming up of interest rates quite generally
situation in which

Banks

FHA

not been

mort¬

scattered

are

widely and not concentrated

the basis of loose credit policies, it is pos¬
by any means at our dis¬
posal without causing a recession of one degree or another.
All these are important if rather technical matters.
What encourages us at this juncture is the apparent
awakening of a good many to the fact that saving as well
as investment and
consumption is essential to healthy and
wholesome expansion and growth.

this

thinking is to be observed even unto this day. Statistics
have long included elaborate measures of the spending of
this, that and the other factor in the economy, and when
the indications make it appear that such spending is to
be large, the outlook is ipso facto regarded as good. "Sav¬
ing" as employed in current statistics often is a rather
artificially defined term, but in any event most com¬
mentators appear interested in it only either as an indica¬
tion that spending may or may not be as great as desired
in the early future or else as a promise of greater or lesser
spending at some future time.
Now thoughtful students have all along fully realized
that any effort on the part of the population as a whole
to spend more than is earned would be a futile process
which could not fail, if persisted in, to give rise to higher,
or inflationary, prices.
Such an effort is, of course, stimulated by a rapid rise in bank loans, particularly when
made without much regard for the purposes the borrowed
funds are to serve. Ideas of this sort, however, seem
rarely to give the politician much concern, and when a
boom gains sufficient headway, few others take such a
danger too much to heart. But left to run its own course
a
process of this sort tends to create a situation which is
likely to bring its own end rather promptly unless pro¬
longed by undue expansion of bank credit. It so happens
that at this particular time our hoard of gold is so enor¬
mous—thanks to foolish policies of the New Deal—that
if used in accordance with the rules of the pseudo-gold
standard under which we live at present could form the
basis for an enormous further expansion of credit which
might well keep interest rates abnormally low and spark
a further spurt in the effort on the
part of all to spend
more than they earn.

once

These funds

gages.

sible to hold it within bounds

Temporary War Changes
Some

is whether

high pitch

and spend it—it appeared to matter little how it
spent—was the hero of the piece.

money
was

relatively small amounts

has been true upon

fu^dVpIus
seem to have

$20 billion—and

investments.

This point has

to do with the difficulties involved

the

tion

purchase
FHA

and

administra¬

VA mortgages.

Number 5530...The Commercial and Financial Chronicle

Volume 183

(2159)

These

difficulties

they require
from

Those

me.

most

such

are

that

detailed comment

which

the

are

troublesome,

particularly
for investment managers ot such
who

funds

have

not

exten-

mortgage departments are:

sive

effect

net

(b)

The

with

important
and large,
too

troublesome

need

for

Trustees to qualify to do business
in certain states if it is necessary
'•

market

up to date

much

funds.
future

trouble

whicht,-_by

has not had

finding

It may be that

its

supply

the

available

tervals

scheduled by FHA and

VA.

Again

nothing to this

force

idea—you

all

vmi

various

of couL<Hf
usual^vicing

This

vear

above the
The
±ne

and

over

costs

osti

charges

investor
investor

holding
noicung

relatively small amounts of mortgagp
gage honds as comnarpH tn an inDonos as compared to an in

surance

would
would

bank

company or savings

be even greater nartienlaroe even greater particular-

since

contrary to law

(in
least) for corporate fiduciaries to participate
mortgages and since each trust,
except the very largest, would

New York State at

have to confine its investment to
small

amounts

number

mortgages in a
separate
blocks
in

accounting

techniques
such
have

made

easier

keep records
if

bought

for

and

create

and

ques-

tions,—to take the time involved
—why not consider doing it in
con3unction with representatives
from four or five Trustees of
company and bank administered
trusts or funds? If your association wished to delegate four or
companies. NoF would tbere feP five members to pursue this mat1° be *ny g°od reafn to refral" ter, I suspect you would have no
fr°m -g°mg b3Ck 3 fGW ye*rs *nd great difficulty in finding the
examining

However, if there are only
mortgages" in
each
block

There is another difficulty that
bank investors run into

number

that

real

States.

estate

is,

owned,

That

might happen in case of foreclosure, the Bank may be held to be
doing business in the State in
question. In a few States the Bank
may be held to be doing business
just because it employs a servicing agent

even

if there is

fore-

closure.

In any State where the
might be held to be doing
business, it must either qualify

basis

high

points.

spelled

are

out

considerable

detail

in a recent report by the
Commissioner of Housing of New
York State to the Governor of that

State.

Of course, all of them are
of degree
and are im-

matters
-

portant

primarily

affpet

the

comes

downlo

basic

because

they

nroblem—which

retuTn

the net

investment and its relation to
the

return

net

other

suitable

investments that

are

available. Or

was

necessary

portfolios

gage

portions
which

higher

pro-

proportions in

many

cases

A New Corporate Organization
The
needs
that

another way, the investor's problem is—gross yield, less
ascertainable costs, resulting in a
net yield

best
of

description

"our

have

kind

come

the

investor"

across

which must be compared

2™

^tta

hMnm

1nortgsto be trans-

you

know

well there

systems

only
the

and

methods

reduce

your

overhead

which

not

costs

but

own

costs

those

whom

creation of a - ^corporation who
could act as mortgagee and whose
sole assets would be cash, U. S.
Governments and FHA's and VA's.
There would seem to be no reason
^hy such a corporation with fulltirT\e management of competent
and experienced men of integrity

Such

arrangement apparent-

and

procedures which

unknown

well
close the gaps and solve the problem of reaching a sizable portion
of

the

kind

potential
have

market

tried

which

may

to
for

the

describe—
better

our money supply

removed

one

factors

the

which

au-

earlier

Lnd ,nYw tha\an ^vestment de- provided

mand from relatively

us with some proteccapital tion against prolonged inflation.

new

the

This is par¬
metal and

*•

uati0n' There are ample inaications for believing that
are

extensively to date, and consider,

areas that
undergoing ex-

credit

expansion

expanding

now

1955

much

loWer rate with the exception of
kanfc ioans where special factors

evident,

are

appeared
cessive

n,?t

Z
^ of tbe taols stored
the/e .that fave not been used

Jake

IV
Quality of Credit
A

indicated earlier

tL busTness

the

cvcle has

Lfn

Conclusions

status

In genera1' U is

conclusion

^en due- Y«
d^[ p3^ " '

inflations as in earlier years. Although I have some reservation

of a

current monetary policy, it seems
clear that Federal Reserve policies

feasible-but seldom have gath- 9■ "edlt i; dHicult to measure

enngs of responsible, reasonable
people failed to come up with at
least something which is produc-

from time to t|me. In New York
State the Institutional Securities
Corporation through its Debenture

Service

has

authorized

and

P"or- to the time it actually be-

comes pad.
Several studies by
the National Bureau of Economic
Research have attempted to do

tive and useful.

3n<

RIulil.Eircl RacIaiI
UIJIH rllal DU9IUII

appears

Cl.

UrGSOII ^616^60 wiKi

eg on Power Co. at par ($100 a
share) plus accrued dividends.

Somc of the economic condi-

bonds,

due May 1, 1986, to be sold
competitive bidding on May

iariy jn the real estate and

the

organization

the

of bank assets> and the change in
our money supply

the relation of

comnanv

Capitalization 01 tne company,

weak spot in

con-

the

ability

ness_

economy,

our

than usual

free

our

economy

trols#

credit

excesses

areas

without

particular

direct

con-

(2) price increases in the assets

[iii D l|Alac
■

commoditv inventories

M^rLol

HILD WOlCS Oil IVIflinOV

PnHiir*

nT plLYbon
.

nffprint*

<fci9finnnnnn

1Credit
Fcdcri Homc ?Ln pink«?^
^a^Y
ofritc Ir iSr
^
^
ntYc a^Q?fi
ccurred in late 1954 and in callable notes dated^Maj^ 15, 1956
con

(.3)

purposes.
of

guch

FDIC' the change in the nature

to correct

outstanding bank
loans totaling $23,000,000 used for
Capitalization

1951 have been superior to
policies followed prior to that
time. In addition, there have been
important
institutional
changes

sumer credit area as well as in
short-term loans of banks to busi-

retire

construction

gince

the

are or were, recently should exercise

ceeds, along with the proceeds of typically
bought with credit such
the sale of a proposed issue of ag j-gaj estate, common stocks and
mortgage

appropriateness of the

-prudence
in
granting
further
A rapid increase in the vol- credit increases, recent market adume of credit and debt, particu- justments have again emphasized

company will use the pro-

first

the

^1()ns that have m the past been Furthermore, although credit deassociated with credit quality de- velopments in 1955 suggest lenders

BJyth &^Co^ Inc. and The First tenoration

Boston Cwporation jo^
an^ uiidemriti \g group^ which of^ed pubbcly °1_kJ"ay 1 a .total of
$70,000 shares of 5.10% series preterred stock of The California^OrThe

to substantiate

about

r?P
mcrease» the to gold, which have significantly
quality of credit declines.
reduced the potentiality of credit

ft mil 11 ftfforc ftollf
9^1^.

'cSSLfSl

the popular assumption that at

IIIOlip IffTvlS llullla

1956,

a d d"e
^
mSGj'^v^apments suggest yesterday (May 2) by the Federal
j

that lenders should be especially

Home Loan Bank Board through

created 50 mil^ dentures sold ^S^nds will consist^$64
credit,in~ ^erett Smith, fiscal agent of the
h1"
000,000 in long-term debt; 136,122 ever™there^are °ir?di?atkms^that
terest Yntec tiv^iiii savings banks,
rates to 101
^curities^ea^er^^h^no^es^re
chares
nreferreri
®
' tn^re arJ, maications tnat securities dealers,
ine notes are
and as of the. year end it held
fnd 1 638 699 h ^
of L" reCunt ^"thu
pnCed at 100%of

about $280,000,000 FHA and VA
mortgages located in 37 States
against Certificates of Participation held by 58 savings banks.
Now

perhaps from

your

stand-

®o '

mon

stock

SL^

w'n

nor

value

revenuees of the
c°mpany for 19S5 were flg.948.000

expenses
we-are

and

difficul-

not called upon

concerned

Last year many were
that
the
consumer

credit expansion was too great.
co^par_ed wdb 1954 s $17,046,f)00 In recent months factors have

asYgaTnst^Tie.oTfl8

crtdd.

in 1954. consumer
California Oregon Power is an terms to finance
furnishing electric service

adjustments

Tota^I operaiting

because

obviously lightens the

have brought about the proper

">mmon stocK, ¥2U par value

operating

four

e s

except.that if.could have an appeal to "our kind of investor"—

electric

communities
area«?

and

Klamath

public

utility

adjacent

rural

Tarkson

Tosp-

tightened

1955

The

tending

The purp0Se of the offering is
to

refund

j75,000,000

Series

D-

1956 27/8 notes maturing on May

and to

15,

provide funds for making

additional credit available by the

federal Home Loan Banks to their

companies member institutions
due

the

Upon completion of the financ-

shortage of funds in the banking
sys^em> and finance companies
^er,e t?rcea fp. JYauc®
me.ir

ing and tbe retirement of the May

ma^Urity, outstanding consolinntpv; of thp Ranks

will total

in other profitable and
competitive fields of investment

3y>G3S ?
Jackson, Jose dealers to adopt tlghter ^rms to dated notes of the Banks will total
Pbine> Lake and Douglas Counties ultimate consumers. In addition, $913,240,000.

and because, perhaps, a Fiduciary
Corporation could be set up under

in Oregon, and in Siskiyou, Modoc, the

assume

appropriate legislation and operated in a manner which would

supply of mortgages and other in- has also
vestments seem to have increased tomatic

and created collateral trust bonds

produce

to us,

$16,000,000

around

corner

*•

Itth® « ££ tLf"1^ °

"! ' fh»
J}i, f
really new. Now that the relative tween gold and

ly was contemplated in the 1933
Housing Act^Title III National
Mortgage Association but as far
as I know no,pharter was ever
granted.
Others have proposed

you* sell your mortgages,
Perhaps there are now, or are just
the

standard

•

aagYJ bf

burden

credit for devising and furthering

gold

under such an arrangement today Of course, it is possible that such the wuty of
and the probable need for new a group would conclude that such {r:ibute > the deveiopment
purchasers would permit the a Fiduciary Corporation is not bus^t

ties which

great

sys-

true

products industries where
the prospects for either higher
prices of steel and/or a steel

but we
°verexpansion ot credit in
out we particular areas and that there is
this earlier ,ittIe reason for beiieving that dln™
rect controls of particular credit
?"? nT say-"we've heard it all eliminated from our credit sys- markets would improve the sitof the

mi_

it worthwhile to take another look tiUve and constructive product- repay ™eir debts
at is? Perhaps the volume possible one beneficial to all concerned

You

deserve

monetary

ticularly
metal

Z
possible purchasers, whether g tJ^JSant dete?mi- that our credit system is currently
cst-bearing obligations
■
their present application to fertile ±ar
tJrta^S2 ofntdebto^to strong and is not likely to con"
Yes77th*Vn/ °}d, one—but Jsn t ^f.lds woald no} crf.ate a compe- "a"tvottht-^
when Hup
Yet
tribute to depressions or sharp

"paper work" for FHA's and VA's.
gentlemen

domestic

our

business inventories.

tem has been loosened in the last strike, appear to be dominating
few decades, so that an outflow business decisions. However, the
of gold need not result in a se- shortage of funds in the banking

cons

Ict hP^ nStionf

vestment°rmS °f appropriate ,in" PfreasoTto "onsiSfr^t^Lfnhas been great improvement over
the years in the handling of the

and

runs

something like this-

to that obtainable from other and

Now

thought.

than existed in 1946 and

to have been attained.

seem

and

to put it

other bank unless

some

" celerated rate which
That concludes my comments— should recognize that
to
brine^ their mort^as 1 sald ln thf, be,glnlimg 7". you d,lsturbl.ng factor has

at the

Some of these and other points

J?.ot bt^bIe to ,r.esolIe tbe
difficulties I have mentioned; sell,
under
State laws,
if permitted,, at appropriate-xates, its corporate
which may expose it to tax dan- obligations to all concerned ingers present or future, or from
eluding self-administered Pension
a
feeder corporation to own the Trusts,
Bank administered Penmortgages. - Feeder corporations slon Trusts, fei^owments, Investare somewhat costly and cumberment counsel,T small insurance
some
and, although free of Fed- companies,
Trustees and other
eral income tax if owned by a
bond buyers;, and buy suitable
Pension Trust, may be subject to mortgages
frpjh all concerned,
State or local income taxes, fran- mortgage
bahkers, brokers and
chise taxes, etc., which in some originating bank?.
run

serves

♦

bank

cases

HCflKUCw

FHA's by savines banks and others to continue

pur-

Trustee

WflaVHACC

QUU

chased, some of the usefulness of
the single debit svstem disappears,

HIIvilMIU

few

911(1

MfAlllllH

W"®

**"

I VAlvlvS

••••■■

vere
reduction in
our
money system
has undoubtedly dampsupply, and conversely an inflow ened the growth in bank loans.
of gold need not result in a larger The terms on lending in the real
money supply.
Under the gold estate area have also been tightstandard, it was the obligation of ened in recent months and the
the Central Bank to allow rates have risen.
changes in the monetary gold
i wouid contend that the eviproposals made then same number of representative stock to hp rpflpctpd in
thp mnnp
wouia coniena xnat tne evibut reiected for one reason or an- TVnctnoo
^,YY?
to pe retiectect in tne mone- dence up to the present time sugiu
3
?
/j
Trustees from around the country tary policy followed. This is no eests that our economic svstem
other—particularly today when it who would be willing to join you
longer
the
case
It
is
not
now
§
*con°™lc. syslem
ceems difficult to exoect the Durin
Cn0n^in<i
+; "Y
longer rnf f e*
1 .?s
does automatically adjust to cori
aT
ruf J;
spending the necessary time appropriate to argue the pros and rect overexDansion of crpdit in
chase of VA's and

mortgages
sized blocks.

good

TAWHTAC

Pa 11(11 AC

VlCUlK

small

investors

«■■*■■■

1.70(1 it

through the sale of securities will clip, on a seasonally adjusted
Corpora- result in a like reduction of re- basis, due to the accumulation in

fee™1°

order to obtain proper geographidiversification. The improvewhich have been worked out,
as
the single debit system,

ITlUllvlQI V QUU

cal

ment

ailfl

present fields nor does there these specific

knnw

MAKAfarV

today, as in the past, it is not
what you want or what the investor needs or wants, that it is not

^ g°od reas05
mail* have been^Z'dJof so-railed fr3m frT explorl?g eYe.n fu^f»
home office exoense
In the case
means °* Y13^111? 5 S
of
insurance
Romanies holding 3 Y S
palatable ta'those
manv manv millions of mortsaeef
Jnve.stors wb? do not have the exthese' estimates run around one' {fns,lve facllltles of ou^ savings
auarte/of 1% ner mortgage ner ba s ?nd Aiarge
vjnsurance
A<?

* y

gen-

to the conclusion that

come

sources, will possible to form such
fields heretofore tion which could live

into

■

lar?5
untapped. But even prior and sell its obligations at com- the Federal Reserve adds to the
that time, when and if it ar- petitive yields. But, if you feel it total.
!*lvfs' there+
P? reasof to,Peg" is worthwhile exploring again
Finally, the link between gold

'old

vaae

there

tlemen may have explored it even
in the past few months; you may

have

Continued from

perhaps

say

other and larger

obtaining
"

to foreclose.

itself

procedures and competitive standards^ and even more

funds, in conjunction with those

yield;

problem

The

accustomed

certain

profitable and prudent outlets for

the resultant

diversification*

te)

has

worse

(a) The cost of acquisition and
administration

Del

Norte,

rnunties

Trinity

anci

California

Shasta

The

com-

increased

volume

out-

standing consumer credit resulted
higheAr repayments. Both of

Moore

ocnley Admit

Moore & Schley, 100 Broadway,

bounties in uaniornia.
ne com
Pany also furnishes electric serv-

these factors have tended to mod-

ice to Grants Pass, Klamath Falls,

sumer

of certain funds which, of course,
need repayment of their loans but

Current loss ratios on consumer May 3 will admit Grant B. Schley
Oreeon
and Alturas
Crescent crfd,it are, still at a near histont
general partnership and Ken3
i f™ " cal low although there has been
*
»
p
City, Dunsmuir, Tulelake, Wged a slight increase of late. Bank nedl
®cb ey»
•

perhaps not at such frequent in-

and Yreka in California.

satisfactory security at
competitive yield. Such a Corporation might tend to solve some
of the long-term investment needs
a

Lakeview

erate

further increases
credit in recent

•

con-

months.

New

York

y't

Stock

Exchange,

Medford and Roseburg

loans continue to rise at

rapid

partnership in the firm.

(2160)

The Commercial and Financial Chronicle

Continued from page

tress

of acute personal dis¬

large numbers of people.
are the salient facts about

Here

was

production
Signing
a

future

duce

and

temporarily

production
spondingly.

re¬

corre¬

paper

mad competitive race some

automobile

their

companies

dealers
of

numbers

household

collection
and losses on defaults

expenses,

the

from

deductions

net

are

for consumer
goods of real value.
Instalment
buyers pay on the average 16%
oi
their total debt as carrying
available

money

(3) Instalment sales reduce the
amount
of capital available for
people

When
cash pur¬

our economy.

later

for

save

chases their savings pour into en¬

and

incomes

future

their

mortgage

people

When

terprise.

nothing there is

save

net loss of cap¬
It is

ital for investment.

personal incomes in
American history, the percentage
of incomes saved went down. The
reduction in the rate of saving
wholly

due

the tremen¬

dous increase in instalment debt.

In the

main instalment credit is

granted

houses, cars, furniture, house¬
appliances, and clothes. In
orgy of instalment sales an ab¬

hold
an

normal

arises

demand

these

for

particular goods, with a conse¬
quent scarcity of materials and
rising prices. The enormous sales
of houses, cars, and appliances in
the past two years
ages

created short¬

of steel which affected every

American
uted

industry

contrib¬

and

the economic

troubles

fanners.
can

powerful promoter of sense-

less

extravagance and socially in¬
jurious waste. There is no impli¬
cation in this statement that peo¬

ple should be prohibited from
buying what they want to buy.
Sumptuary

legislation

But that fact
merchant

use

wrong.

defense for

credit

device

persuade people to buy things
they do not need and cannot af¬
ford.

The goods which

are sold on

instalments, including houses,
goods which
sary,
wide

appliances,

are

useful and

debt.

large expansion of consumer
is

debt

boom

debt

consumer

If
de¬

phenomenon.
expanded

pression and contracted in boom
times, it would be a great eco¬
nomic stabilizer.

In reality it op¬
exactly the reverse fash¬

ion.
are

In prosperous times wages
high and credit is easy.
As

increase

wages

force

extraordinary

into operation. Wage
assume
that next year's

comes

earners

earnings will increase still

instalment

Many
their

more.

buyers

base

current

purchases, not on
earnings, but on expected
earnings in future. In a

current

has

Instalment

degenerated

some

orgy of

high

pressure mer¬

chandising.
During the
home

war years

building

tailed.

was

Rent control

probably
Federal

which

ment

sales

general

makes

instal¬

faster than

grow

level.

wage

The

while their savings, in
prosperiqus period in
nation in all history, steadily

numbers,
the

most

any

Undoubtedly it has
mountain of mortgage
which will cause distress in

debt
the

wisely.
and

since 1941

severely
was

After

cur¬

Thus
sion

that

reckless

instalment

This

time

ments

collapse.

when the
on

auto¬

boom

and

feverish, until the

inevitable

There

comes

burden of pay¬
debt cannot

consumer

be increased

purchases

when

and

abnormal

the

past
stroyed later demand.

have

de¬

1929 Repayment Held Back

Recovery
When
comes,

the

inevitable

the mountain of

that
to

debtors

prevent

collapse
consumer

struggle desperately
repossessions. In the

great

reflection

the

victims of depression. But the delenders of instalment selling miss
of

entirely. Not

the

repayments
pression goes into

one

made

dollar
in

de¬

stalment sales make

the face of the lesson of destruc¬
tion of housing in all France

bloated,

done

make

business

Having tensify

the

new

boom more

certain
the

end,

depression

collapse
and in¬

when

everything possible to dis¬ arrives.
courage home building, Congress
What of the future? Every sta¬
embarked on a vast
building pro¬ tistical figure shows that the riot
gram
which
guaranteed
mort¬ of instalment selling has about
gages on fantastically easy terms. reached a point that prompts real
One law was so
stupidly drawn concern. At the present time the

not

than

often

This

1932.

since

article does not advocate govern¬
ment
sales.

will be

instalment

regulation

sufficient if the

government will gradually get out
of
the
housing business. What
this article proposes is that the
makers of instalment goods in the
interest of all concerned put in¬
stalment

selling on
basis. They

page

ceed 4% of

about one-third

both

sales; two drug firms,
of ethical drugs,
research was over 6%

producers

reported
of sales.

the electrical

CHICAGO; 111.
tions

additions

and

nounced by C. W,

were

an¬

of the company.

ing Sales Manager, has been ap¬

pointed

General

Sales

Manager
and George A. McKeon, formerly
a Chicago representative, has been
appointed
City Sales Manager,
Chicago. Both men are veterans
of the Nuveen organization, Hak¬
from 1941 and McKeon from

anen

1945.

Robert

Hammond, formerly
of Taylor &• Co., has become asso¬
ciated with the company as a sales
representative attached to its Los
Angeles office. Robert E. O'Brien,

formerly

Advertising

Insulation

Materials

ers

its

and

research

almost

80%

expenditures for
the total.
Thus,

the

while

statistics
are
by no
complete, they do reflect
the importance which this indus¬
try attributes to research.
means

In the

case

of the food industry,

the fact that government-financed

projects account for 10% of the
group's total research is due to
substantial

contracts

government

held by one company.

Then while the number of

com¬

panies in the petroleum group is
small, the list does include most
of the major firms in the industry.
The statistics for the radio-tele¬

ordinator

co¬

sales

Nuveen's

de¬

Additions to the

trading depart¬

John Nuveen

Robert

Co.

in¬

Flynn, Chicago
office, formerly of A. C. Allyn &

Co.,1 Chicago,

and Kenneth
D.
Owens, New York, formerly of W.
W. Jones & Co., New York.
Carl T. Nelson, Jr. has been
elected
Assistant Secretary and
Louis

Weiler

pointed Cashier.
came

has

been

Both

men

ap¬

be¬

associated with John Nuveen

& Co. in 1946 and both

are

located

Bache Adds

Staff

(3pecial to The Financial Chronicle)

BOSTON,

Mass.

—

national

corporations, such
answered

our

total.

This

relatively few large

those which

bulk of industrial research,

■?

Now at this point I would like
to be able to give you a factor or

coefficient

which the

cur¬

rent

research expenditures of a
corporation could be multiplied
arrive at the sales,, or better yet
the profits of the company, at
some

future date. There have been

attempts to do just that.

Minne¬

sota

mining has calculated that,
every dollar spent on research
eventually yields $25 in sales. Put

spent on research it must eventu¬

ally spend $6

capital expendi¬
products its re¬

searchers have discovered

research.

correlation between research and

As for the tobacco

fact

that

small

research

relative

industry, the
is

unusually

sales

due

tures to make the

of Bache & Co., 21 Congress St.

im¬

proved.
At

best, however, the statistical

capital expenditures, sales or prof¬
its, is most tenuous in the major¬
ity of cases. I am not aware of any

part to the inclusion of tax stamp

successful

receipts in the sales figures.

own,

The

figures for the transporta¬

small compared to gross rev¬
Insofar as the railroad in¬

alone
of

one

concerned,

estimate that the to¬

attempt, including our
to establish such a relation¬
ship. The host of economic and
political factors which affect sales
and

earnings militate against a
simple statistical approach to this
problem. Even so, figures on re¬
search spending measure the

quantity
work

but

done.

tal research expenditures of rail¬

successful.

roads, the Association of Ameri¬

back

can
Railroads, and the Railroad
Equipment Manufacturers amount

to not less than

$10. million

annu-

ally.

As for the total

figures,

you

will

note that research expenditures of
all the companies answering our
survey represented 1.9% of sales.
This is very close to other esti¬
mates. You will also note that 80%

the quality

not
And

not

one

For example, a while

of our researchers visit¬

ing Jefferson Chemical's research
laboratories at Austin, Texas, was
told that out of five research proj¬
ects undertaken, maybe one will
get to the pilot plant. Thus, the
investor cannot regard the mere
fact
a
corporation pursues re¬
search as a guarantee of its growth
or

survival.
Research Done

for Investors

If, then, there is

of research expenditures were fi¬

correlation

penditures

and

between

nanced

selves,

the companies them¬
and 20% by the govern¬
by

ment.

The survey of the National
Science Foundation concluded that

of
re¬

every

search project undertaken proves

research

future

statistical
sales

ex¬

and

earnings, how can the investor ap¬
praise a firm's research and de¬
velopment budget?
At most he

TABLE I

Corporate Expenditures for Research and Development—1955
Number

Research

Companies

Agricultural Machinery.

Sales

Research
As A

Expenditures

(Millions of Dollars)

of Sales

% Research
Gov't

Financed
*

$1,791

$49.3

2.7%

2,779

142.8

5.1

75%

2,520

27.4

1.1

1,319

15.2

1.2

5,463

179.8

3.3

704

33.2

4.7

361

11.7

3.2

2,448

168.5

6.9

6,228

30.1

0.5

287

5.6

2.0

Machinery

674

21.1

3.1

Motion Picture Producers

230

1.8

0.8

Office

1,060

28.6

2.7

17,724

130.3

0.7

920

58.8

6.4

975

24.6

2.5

1,734

3.1

0.2

and

Parts:

Automobile Accessories-

Building Supplies
Chemical

Drugs—Ethical

Drugs—Proprietary
Electrical EquipmentFood

Household Equipment

Equipment

Petroleum

Radio-Television

....

5
7

Transportation
Other Manufacturing

1,706

4.2

0.2

7,118

96.5

1.4

178

$56,041

$1,032.6

1.9

Curtis

Keith has been added to the staff

the

survey, carry on

larger companies in the
industry. In this case, as in the
case
of the electrical equipment
industry, our sampling is not large
but does show the importance of

Railroad Equipment
Tobacco

in the Chicago office.

the

leader in research, but do include

Aircraft

velopment activities.

20%

suggests that

two of the

Reporting

;

another way, Monsanto Chemical
has found that for every dollar

Manager,

now

industry do not include
Corporation of America, a

vision

Manufactur¬

Chicago,

Corp.,

our

Finally, ! thirik it very interest¬
above
t h e
estimated
electrical ing to note that while the number
manufacturers industry average of of
companies included in our sur¬
6% of sales. Our figures do include vey is quite small,
(they come to
Westinghouse Electric, which only about 5% :; of the domestic
dominates the sampling. Westing- corporations which have research
house sales account for slightly'
laboratpries), their research ex¬
more than 50% of the group total
penditures amount to more than

Private-Government Financing

formerly act¬

Paul A. Hakanen,

bit low be¬

inadequacy of

government contracts.

has, how¬
reported its research and de¬
velopment costs in 1955 were well

aware

Laing, President

the

ever,

equipment industry do not include

dustry

A number of
staff promo¬

—

figure may be
of

re¬

General Electric which

for

enues.

John Nuveen & Co.

of industrial

government-financed.

was.

sampling of the aircraft, electrical
equipment a n,d radio - television
industries, all of which hold large

are

John Nnveen & Co.

Our

cause

statistics

The

tion

sane

choose to do so.

clude

the point

long been a
enterprise. He

regulation when it has been un¬
wise, and it has been unwise more

ment of

solely for the votes of tehants, in

controls.

free

publicly opposed government

has

depression
many
people
rode to the bread lines in expen¬
sive
cars,
sometimes
in
mink

the

war

has

writer

defender

Announces Additions

demand
for goods. Such payments merely
pay off past debt.
Abnormal in¬

rent

from

Giowing Emphasis Upon Reseaich
And Development Budgets

Radio

future.

con¬

exten¬

credit

matically intensifies
makes

the

debt largely

consumer

depends for its solvency on a
tinually accelerating boom.

imposed,

state

entire

governments
continued rent controls long after
they should have been repealed,

continued

The
savers
are
steadily
growing fewer, while their net
savings grow larger. The nonsavers are endlessly increasing in
way.

coats. This is

instances into what is tantamount
to

Continued

industry include both rail¬
and
larger
roads and airlines.
As would be
sensible
can control
long-continued boom instalment
objectionable instalment selling by expected of a nonmanufacturing
selling has a built-in automatic
research
expenditures
their dealers and agents if they industry,
accelerator

credit, invariably men who fi¬
nancially benefit from it, cite the
light of these facts, only
astonishing degree of repayment
tinder rigid restraints is instalment
of consumer debt in the great de¬
credit desirable or essential.
In
pression after 1929. They do not
the past five years in innumer¬
know their economics. It is true

selling

lion. One deplorable feature is a
separation of the population into
two groups, the savers
who do
not
buy on instalment and the
non-savers
who
buy practically
all durable articles in no other

built up

Degenerative Credit

have been abandoned.

bil¬

about $29

now

enterprise.
Stabilize

Credit Should

neces¬

restraints

housing has stated in print that
spreads.
A
couple
may
now the
government's reckless and un¬
marry, buy a house, all household sound policies in financing hous¬
equipment, clothing for the bride ing have intensified inflation and
and
groom,
and
a
honeymoon raised the cost of housing to the
with hotels and planes, for a small owner. The truth is that Federal
down payment and a promise, to
housing
has
discouraged
more
start life with an overwhelming economical
building by private

In the

sensible

income.

The mania

representing luxury, os¬ debt prevents
recovery. The de¬
tentation, and conspicuous waste. fenders of unlimited instalment

cases

well

policy of "nothing down, pay decline. There are millions of
you like" in their furious
families which have not a cent
battle to obtain a competitive ad¬
irk savings and owe on short-time
vantage.
Retail stores, acutely debt instalments from 30 to 50%
hurt by specialty stores, followed
of their annual incomes.
;
suit in many cases.
Some have
even
devised a banking service,
Cost of Housing
the "revolving credit," to finance
The
outstanding
expert
on

ranges

able

rents

homes. The

when

are

but also goods which have
price ranges, with the upper

clothing,

and

eral

system

Instalment credit

(5)
most

area

goods,

dealers have adopted a gen¬

some

erates in

(4) Instalment sales distort the
entire economic structure.

cars.

the

ing fact that in 1955, the year of

was

abnormal
The dealers in

grant incredible terms.

shock¬

greatest

pressure

sell

their instalment sales.

charges.

maintaining

who

law.

the

drafted

duction.

cost, insurance charges,

home

mortgages

has investigated all persons
with this unsavory af¬

turn

(2) Instalment sales reduce the
national
income.
The
interest

in¬

includes

incomes

and

surance

Con¬

alike.

tenant

and

ernment

promise to pay out of future in¬
come
cannot increase total pro¬
;

mortgaging of future and yet

unearned

open

fair except the Congressmen

(1) Instalment sales do not in¬
crease production.
They increase

20% only eight years

was

It is true that this unbeliev¬

able

connected

Salient Credit Facts

come.

in¬
invitation to stalment debt on a short-time
basis equals 14% of the national
unscrupulous builders to rob gov¬
it

that

gress

credit:

consumer

for

ago.

To Stabilize the Economy
cause

families

all

fixed annual payments is
30%<of
the total national disposable in¬

Sensible Instalment Credit
sible

commitments

Thursday, May 3, 1956

Total..
♦Negligible.

Volume 183

Number 5530

The Commercial and Financial Chronicle

...

H r.t,:

(2161)
get

can

figure

scription of

brief

de-

company's research

activities in its annual report-Ob-

viously,* this
adequate.

would

extensive

help

far

the

from

can be expected to increase
at least 50% in the next ,10
years.
.
„
' ' " :* t

are

that

organization like ours, for
example, spends about as much on
an

research in relation to annual
enues

most

rev-

leading companies,

In fact, our latest annual report is
devoted to a discussion of the
type
research

for

investors,

•

Shortage of Science Personnel
One limiting factor will be the

minds,
particularly really creative minds,
Our growing economy alone calls soft currency countries. To Europe
for far more scientists and en- alone, Switzerland's exports have
gineers than are now graduating. risen by %>% between 1952 and
In recognition of this problem 1954-

President

Eisenhower

appointed

national

committee

and engineers to "foster the development of more highly qual-

budgets is but

function

one

into

account.

trv

example, they

determine'

corporation has
leader m re-

and

Another

whether

its

/oxe,?ru 4^aV€
(2) Whether a

rent

en succ,essful?

company's
expenditures

research

cur-

com-

favorably with those of other
corporations in the industry?

pare

(3) Whether a firms research is
original or is it simply a form of
imitation designed to enable it to
keep pace with its competitors?
(4) Whether the products or
offer
3

Swftl
(5) Whether

to. develop

research

designed

products

new

limiting

ran

because

ever

lm-

fle*d,one

in which the
company has produc¬

experience

and

marketing

facilities?

!"°JJ?h_and_ 'Is ear,n,mf?
stable

.power

enough to enable it to

pur-

its program through fair
days
and foul and to tackle those
prob¬
sue

lems of basic research which
may
make
the
greatest
contribution
to

the

corporation's

long-term

growth?

Obviously
these

the

questions

available.

answers

not

are

out

tKhe,m?"ey'

p]0baDly

iUoir.
their

re-

ISil
t7w!;tr!

they try to keep up
developthe fields they cover

Thev examine stacks

literature

scientific

daNend all k nds of

th^

mnmarxt

e^ar"Ple> we
JJA jl® s.ervices °f two topnnrnf?rgy- authont^snf thp^inHWrf 11™.
amem^her
fM ?
ilai-0n f?gram
'

that

direction

national pride

as,

part, did

Again

1954

leaders

nance

business

them

devalua-

statesmen

promised
of

the

and

went

high

far

fito

J "J?d"fipyrp^°"ld

ture research and
..

f1'

Hevplnnmpnt

£ynrkri

^ptivhiPc

nrnhip'mc

If thp<?p

and

pfntimm

the

poo

extraordinary

stand-

to this day' has sti11 not keen
achieved by the leading soft curre"cy 90Untriesi
Belgium and Germany have
made considerable advances in
permitting purely financial trans?^tlons and tbe resul.t has been
_

C3Plt

toact™

a£d °* lAying

we enjoy today is

yesterdav6! can'onW n?e" l°eS
r"ejth!r ^onn nor
h
?f_us??l!a^.llk^/°.ac„h/ev® rea
djct tJle achievement tomorrow convertibility. About 40% of soft

ducted

dlS

new standards of prosperity for
entire

our

society.

currency

world trade involves the

sterling area in one
other, and the Bank

way

Lehman-Bradford Group

Sells Nationwide Stk.
underwriting

„

nlnce

tire

Central

bankpr

sterling

block

for

thp

pn-

Before

shares
snares

the

tained by London, and even, if
I*
"
"
"
now> sterling area reserves of gold
and hard currency were to reach
thp mapip fiPiirp nf 5R?l hillinn
thic
the magic figure of $3 billion, this

(par
(Par $5) of Nationwide would not necessarily insure com$5) of NationwiHp would not
porP a^ $19 per share. This offer- Plefe freedom for the Pound, the
,lng was oversubscribed and the real reason hoing that unless the

bo°ks cIosed-

net

proceeds

wfli

^0o onn

cbase' at ?135

from

the

salp

1™m l?e faie

™A°X»lma y
be.vused 10„ „P^7
h.

a share, 33,266%
shares out of total of 100,000 capi-

tal

American

Balance

the

111.

cag°»

Norfh

Insurance

proceeds wju

used

for

Chi-

net

^he

ac-

qU,isition of control or substantial
interests in other insurance com-

panies

they

become

fre,ely convartlble

reserves of a

nation are backed by productive

panoPitv

aHpmmfp

mLt

ternational comTCtitttm

nil

world

markets convertibihty cannot be
sustained for long. Nowadays this
means mostly that Britain, and
others in her position, must be
able to earn dollars, because, as
bas recently been said, the dollar
is no lonSer on the gold standard
but S°ld is now on the dollar

available

company's prospects.

son

then,

between

holders.

funds

which

prises

liaiand

potential stock-

We seek

client's

channel

into

are

those

ises

time,

the

must

the

from

the

ca-

prom-

the

same

enable

our

losses which

thp

failurp

! failure to
that nothing is so con-

cnange.

trend

expenditures

Our

corporate
is

own

research

variably told that budgets
increased.

Dr.

Leed.v of the Armour

are

Harold
research

be-

JTns.Vranc.(l CA'

subsldiary of

the,

pf£Ap' fn T!p<T^
^r^P vPIr

?y®Fafadr®?lnHnlr
representing

ance companies.
present

c pa

holdings

a ma-

jority of the voting shares of two

subsidiaries, Nationwide Life

and

National

Casualty

Nationwide

17,651

Assurance

4'45y
tional

rn1„m,

racnnltv

National

Detroit.
owns

shares
Co

A.
in-

stitute has predicted annual expenditures of government and in-

Mutual

Nationwide Corp.), constitute the
anf^pplv PonvArf[hlp lp^^^^^^
Nationwide group of insurance a
f^e:ly <:onver1tible yen than slim
are
companies.
if f°r
other reason
that
Nationwide Corp. is engaged Japans terms of trade have dePrimarily in acquiring control of tenbrated'0e*P°rt/riCe,o«or a substantial interest in insur-

„„r„npp

continuing upanalysts, when

asking corporations about their
research programs, are almost ining

bv Nationwide

Nationwide Corp. consist of

few words about the future,

ward.

owned

Insurance Co. and Nationwide
the IL S. and 10.5% for GerMutual Fire Insurance Co. which, many.
Another island nation,
together with Nationwide Life

concluding, I should like

say a

The

avoid

accrue

rpppffnf7o
c gmze

future

attempt

clients

our

enter-

alert to and

pable of capitaiizing
of

are

as a

corporation

the

its stockholders

act

chares
-hares

Life

Boston, Mass.

of
ot

Corp.
of

In-

nVl.

Co.
Sun

of
also
Life

Canada

and
Na
Na-

Co.

this

Payments Union.
these
countries

new

trade

The
with

represented 13% of total Brazilian
imports and 21% of her exports,
More

and

some

lar arrangement, and it would ap-

Tbe

94.6% in the

offer

the

foreign

what others

custo¬

are

rency countries with needed pro¬
ductive materials and
equipment,

will

the

serve

central

purpose

aiding in their economic

bilization

and

sta-

development.

Should the political risks of
long
terms be covered
by our Gov¬
ernment, I believe that we will

*ibd *ong t®rms
be very good
business, since the
bllslneSR since the commercial
rnmmernsl

banks, who will do the actual fi¬
nancing and thus bear the com-

mericai

risK,

stances

win,

m0st

most, in

able

to earn more
-interest money, than they could
earn from prime loans in;t this
country. All bankers know that
the chances of a foreign central
bank reneging on its long-term
commitments are very slight,
Therefore, the possible percentof losses under expanded
Government export insurance
will be relatively small.
-:

age

Another important factor in this

general picture is

our

willingness

to allow foreign countries to

■

these

reason

being

are"

entered

agreements
into is that

dollars

market.

There

our

also

great

earn

might be in-

progress
towards
convertibility stances when we can sell soma
must necessarily be gradual, until- of the products we would like tosuch time as at least a good por- export if we were only

willing

tion

the

soft

currency

tries have rehabilitated

coun-

further

take

products

built

standard

arc

able'to

trade on at
semblance of equal terms,

Britain

today

convertibility
Specuiative

nV>pn

thus

and

again,

too
nthor

manv

100

many

would

avenues

tnn

openJ }°

declare

were

otn^r

many

weak

c°untunes- and Britain would risk
reserves would probably

S ,! S!m\m

comd be bullt up"
American
American

of ' the

some

abroad,

thereby

overseas customers
of their
dollars.

some

living

pr0gressively
least

barter

from

^feir p^ductive ca- to conserve
helping our
up
their internal

pacities,

•+

andqukk
vertibility.
vertibility.

^rutionTtowards
Although
Although

con-

there micht
there might

temporary expedients, as outiined) the long-term trend in our
export efforts should be to supply

!rp V eiIoris snouia oe to suppiy

the

free

things

world

technical

with

the

best

have to give, such
know-how,

advanced

products, efficient methods, and
our

Businessman
Businessman

Tan
Can

distributing

unique

tech-

nlc!ues- By this means we shall
only maintain but greatly ex-

Iln
Do

not

seems moftinteresting
but fi^i
ap°ve scems^most__lnterestlngi but tional °^r jeaders.hip in irJtbr,natrade, and convertibility
at
the
same

ab„ve

time,

wonder

what

you,

businessman

can

you

may

Ameri¬

banker

can

will

come

quence

natural

conse¬

with the resulting benefits

all.

immediate
?° lo syivf.*your irnnieaiaie nrobprop
lemUntll
economic
stability

abroad
only
At

has

stop

taken

further

from

Dillon, Read Sells

developed,

measures

gap

can

day to day.

Tex. Eastern Tr. Shs.

the

same
time, however, in
enlightened self-interest,
American business will pursue a
long-range policy of overseas expansion. U. S. concerns will step

its

own

demand

—

for their products

parts of the world
dicious
advertising,
and

many

juf

direct

investments, such as the establishment of assembly or manufacturing facilities abroad.
Obviously,
you
cannot
sell
nylon
stockings where the people need

A secondary

mean

that

This

does

should

one

Texas

that

markets

implies

efforts

already

that

are

exist,

but
diversified

tariff

barriers.

This

world

markets

cessible to

us.

Meanwhile,

A
M00re' 4iai ^ast L-arsoa

With J. Barth
(Special to The Financial Chronicle)

ing

LOS

ANGELES,

Doan

Barth &

now

Calif.—James

connected

with.

Co., 210 West Seventh

Street.

will
ac¬

Joins Bateman, Eichler

•

exchange

„nrh

eralization

Qf existing quotas and the lower_

Calif.—Alton

^avBe°°btehcoa^ ^saoUdatedAwUhgEb
£aYfe Aec°™e

the elimination

BEACH,

occn^intort

trade unless it is accompanied by
liberalization of commerce. Lib-

make

.(Special to Tw: Financial Chroniclf)

LONG

Please remember, that even if
convertibiiity comes, convertibil.,
ag
such
^^1 mean little in

means

^-Prl1 26 by

Two With Elliott Moore

street,

needed.

Transmission

Billon, Read & Co. Inc., at $20
Pfr share, with a dealers discount
of 65 cents per share. It was
oversubscribed and the books
closed-

diminish

(heated

Eastern

^?.1JP' was 1?ape

not

one's efforts lo serve the limited
efforts to serve

offering of 206,547

sl}ar£s of coj111^011 stock (par $7)

and'shelter.

food

S™"J 3.6%
Jrv
drop of

points since 1954, and her import
prjce index rose by 0.4% points to

transac-

(Special to The Financial Chronicle)

which relieve the current
dollar demands on soft currency

ANGELES, Calif;—Arthur
B. Davidson has been added to the

countries

of Baterian, Eichler & Co.,
453 South Spring Street, members
of the Los Angeles Stock Ex-

tions

LOS

same period.
Consequently, the terms of trade index

dronned from 102.9% in
98.7% in 1955.

temporarily to these areas. Longterm credits, to enable us to com-

gradual

Pete with our commercial rivals,

currency

and to help the soft currency
countries postpone their dollar

First California Adds

payments until such time

(Special to The Financial Chronicle)

tbe

Columbian
Columbian

Insurance

there

and South American countries to

convert!- that her

bility could not have been main-

headed

group

„

the

England

present crisis in Britain

well, and

talk about adding other European

deve.loped

......

But, unless the Pound Sterling

•

In essence

tioiung fairly

IV°f^
we all know that convertibility, future.

wnnid

nne

feet

the

recently Egypt, Germany
other European counconvertibility/ tries have been discussing a simiand

standard.
for purchase from time to time
The important figures to watch
t
TW
Upon completion cf the offering in order to determine the outlook
cL^i'JLTc
Pu°"5 capitalization of the company will for convertibility are the terms of
of^rrmoidanf devf^onrr!pri!« jfn^fcomprise 800,000 class"a common trade and the productivity indices,
4V,
shares with a par value of $5 a which are the measures of a counplace them in a nroner nersner^
d
fivg
3 pri?per perspec' share and 2,010,500 class B com- try's ability ^ produce efficiently
to
live once fhln
mey aie Known.
mon
shares with a par value of and to sell in competition with
Many years of experience en- $1 a share. Each
class elects half others in the hard currency marable our specialists to
weigh the the directors and each has certain ketsvarious factors involved in
eval- preferences on
liquidation, after
Britain, for instance, increased
uating a firms research activities which
all
shares
participate her man-hour productivity, i.e.,
as well as other forces
which af- equally. All of the
class B shares ppr capita output, in 1955 by only
n

agreed to between Brazil

Accident

nntcvfi'o
flrAm4
experts. At

pniictc

?duS'ry'

induct™

addition

moves

called Hague Club in which lim
ited
multilateralism
has
been

speak of its advent, as if it were pear that more agreements of this
practically around the corner, but nature will follow in the near

thpm<!PivA«!
rn em selves.

with the latest scientific

rash

Some

reason
benpfi(,iai

thmnfxh
through

laboratories and talk with

ments

They

the firm's top research
personnel
and at times even with the scientjofe
lists

there

Hrms

many

™ cn could not afford to do

readily

iu-

and

the final result
tion of 194g

in-

by Lehman Brothers and J. C.
Bradford & Co., on April 27 offprprl
fiOfl OOO
0the""individua"l fered 800,000 class A common

right

romnanipc
companies,

con-

strictions had to be imposed with Brazil, by the end of 1955, already

nave

But this is the
way our

specialists try to get them.
go

all

wft«n timei3 are bad,

oopi

(6) Whether the financial posiof the corporation is
strong

tion

hi«h

research

muld

tion

fantnr

timpc

further

.the ill-fated British effort in 1947.
This attempt by the Bank of England lasted 37 days and, thereafter, more stringent currency re-

f^dusixv?^
isJ>nly too willing to
has

processes under

development will
high profit margin or find

for

vertibility does not lie in sudden

activities
research

case in point is the EuroPayments Union which, despite some difficulties, mostly due
totfee very strong position of Ger-

;

traditionally been

cellent

pean

ified
technological
manpower." by countries whose position looks one hand, and Germany, Britain,
Industry, too, must give ^serious temPOfarily favorable, and con- the Netherlands and Belgium on
consideration to this problem.
vertibility can also not be based the other hand, seems to be funcSet-Aside Reserves

]'l

For

solution

already of¬
fering. If such financial support
is given and if we make
greater
efforts to supply the soft cur¬

has functioned well over
the past several years. The so-

* Lonvertlbility

The

ment

and

mers

many,

recently

enable them to make financial

arrange^entsvfpi; long-term sales;

**)

Convertibility
Long-Range Outlook

And

acute shortage of scientific

for the development of scientists

our research specialists. Aside
from just looking at the figures,
they must take many other things

*.*

needed by American exporters

Chances oi

Looking at research and developof

'fee

available in the financial district.
It may come as a surprise to learn

Continued from page 15

investor,

facilities

research

dustry for research and development

moment,

deveiopment

the

towards

convertibility is
creased

1954

reflected

in-

limited multilateral trade

means

could
to

considered

increase U. S. exports

their

staff

change.

capabilities

have

LOS ANGELES, Calif .—John D.

gr<>wing> and who

brought increased exchange

earn-

Desbrow has joined the staff of

and

should
also
improve
our
chances to sell more. Increased
U. S. Government support might

among areas

whose productivity is

are able to offget against each 0ther the credits
debits

resulting

sales and their

from

purchases.

their

ex-

industrial
ings,

First

California

Co.,

South Spring Street.

Inc.,

647

He was previously with Hill, Richards & Co.

and immediate economic repercussions
among all members of the country's
industrial community.
It
further, S 3516 says the violator would not be very practical help
shall be enjoined from working to cut the tax rates of smaller
for any "competing company."
.companies while, at the same time,
Here again the bill has a super- their incomes were. being* elimificial appearance of merit. ; But. mated or drastically reduced; This
and

Texas

Group of ISA Elects Officers for 1957

CORPUS

receiving any compensation
during that time. Going a big step

meeting of the

CHRISTI, Texas—The 21st annual

Driscoll

Bankers Association at the Hotel
attended by about 350 investment bankers.

was

permanently,

perhaps

from

Texas Group ol the Investment
Robert

1956

The Commercial and Financial Chronicle... Thursday, May 3,

(2162)

im¬
community.
they are good lawmakers, they
will ask questions and, in their
own
way, reach a better under¬
standing of your aims and prob¬
plain the economic and social

portance of it to your

lems.

*.-•.

Two-Wayv"Street - •
what troubles me about it is the boils down to the possibility that*"
almost medieval
quality of the instead of having small business^ ^Understanding, of course, is a/
two-way street, so don't be afraid
punishment. A company official maintained and supported by "big
to listen to what your legislators
who violates the Sherman Act is business," ' that
small
business,
have
to
say. ; Rotary dubs, it
now subject to fine and irpprisonmay have to be supported by "big
;

;

also

would

bill

This

ment.

bar

earning his" livelihood
after he has satisfied the normal
him

from

This is more

penalties of the law.

Lon

Dean P. Guerin

Almon

Earl

Fridley

Hill, Chairman of the Board of Central Power and
Light Co., welcomed the Convention to Corpus Christi. Principal
speakers were George Davis, Davis, Skaggs & Co., San Francisco,
President of the Investment Bankers Association of America;
Murray Hanson, General Counsel of the I. B. A., Washington, Dr.
Harold

by the Texas Group, to take office after

Taylor B. Almon, Rauscher, Pierce &

Co., Inc.,

Henderson,

Alliston

Co.,

take

without
pay because he has followed in
good faith the advice, given in
good faith, of the most competent
counsel on the law's interpreta¬

San

Antonio.

Secretary-Treasurer:

Dean

Guerin,

Eppler,

Guerin

Committeemen:

Russell R. Rowles, Rowles, Winston & Co.,
Houston, for three years; William F. Parvin, Austin, Hart & Parvin,
San Antonio, two years; and J. Wesley Hickman,
Schneider, Bernet & Hickman, Inc., Dallas, one year. W. Wallace
Payne, First of
Texas Corporation, San Antonio, and Milton R.
Underwood, Un¬
serve

long vacation

tion.

Turner, Houston.

derwood, Neuhaus & Co., Houston, will

officer of any company

the

force

Vice-Chairmen: Earl G. Fridley, Fridley, Hess & Frederking,

John

Stepped-Up Corporate Income Tax
Far

sweeping ill JL to imin its 111!plications for all business and the
country's economic health is H. R.
9067, a bill which would realign
corporate income tax rates so that
I

ex-officio.

X Ol

mvxc

they would be graduated from
Continued

from

time of any action or pro¬
ceeding with respect to such ac¬
quisition under any provision of

you

law."

not sell to

after

meeting the re¬
quirements of the law, the sword
of Damocles would still hang over
the
businessman.
Even
though

the government concludes that the
deal is lawful, the businessman is
not

given

any

expression of offi¬

cial views to that effect.

men, just as much as all citizens,
to prevent mergers which would
to

monopolistic

business

the

Every
present

which

mergers

lessen competition.
tion to

the

accepts

With that law

books, there is no opposi¬
authorizing an appropriate

government

agency

serv¬

Any 100% sub¬

for

commercial

corporation

the

$10,000,000 category, could not be
by the parent, nor taken
by another 100% subsidiary

over

unless

the

stop such
take place.

proposal

This

bill
also

the government.
not

with

problems

government
flood of reports

and

act

other words, it would
of

for

two

investigate

work

law

formid¬

It would present

but

one,

agencies
to

becomes

about

administrative

government

upon.

add to the

along

with

before they
But the present
pre-merger notice
bill would place in the hands of

greater confusion for the business

government

amount

mergers

agencies

effectively to hinder
of companies above

any

even

though there is

able

effect

upon

the

power

merger

certain size
conceiv¬

competition.

textile

company,
for
example,
with assets of
$11,000,000

wishing

acquire a corporation with a
plant worth only $50,000,
or, for
that matter only
$5,000, must first
approach the government. A com¬
pany engaged in the sale of
shoes,
women's wear, or automobiles
on

the

main

the

United

able

street

sell

States
out

town

any

might
an

not

community.
to

Thus, in an attempt
a
relatively
small

prevent
of

undesirable

business

activity, H. R. 9424 introduces
new

solely
vised

ordinary
business
transactions
which,
under
no
stretch of the imagination, could
violate the law.

This bill obvious¬

ly holds potential interference for
great many day-to-day business

operations.

Penalty#for

Company

Officials

to the government.

Senate, labelled S 3516.

"Pre

Merger

this
name

Notification,"

the

bill applies to situations
where no
merger at all is involved, in the
usual sense of that word.

Any
$10,000,000 corporation engaged in
commerce would be
subject to in¬
vestigation by the government be¬
fore it might acquire as little as
6% of the assets of any other
pany

also

engaged

com¬

commerce.

tax
to

laws, of
provide

revenues

designed
government with

course,

our

well

are

stimulate

high level of capital investment,
expansion of our economy, and to

of them represent the intersmall groups of highly
vocal constituents, that others are
pet projects of particular Senators
ests of only

Representatives, and that many

have

"social objectives" no matter how
these

objectives

may

to be.

seem

There

be,

can

course,

quarrel with the aim of increasing
the health and

business

prosperity of small

firms.

But

9067

would from every possible viewwould, from everv oossible"view

point,

produce

effects.

exactly

opposite

For it is predicated on the

misconception that large business
organizations

inimical

are

smaller ones, when the actual fact
is that they both depend on the
other for their well being.
The

present
now

bill

would

remove

from

In effect,

little

being enacted

ever

Such' explanations

law.

fact of their Existence dem¬
dangerous ignorance
business on the one hand,

very

onstrates
about

and the need foiPaction to combat
SrtrJ

Incompatible With General
Welfare
The

of ignorance is plainly

area

defined by the demonstrated feeling of legislators from both par¬
ties that the interests of business¬
in

are

men

some

the

ible

with

the

United

incompat¬

way

general welfare of
Businessmen

States.

themselves know how false that

But oBvtously some leg-

notjon ^
...

uictT.llc+

lslators d?

.f.

nrono_

mirr(jred in

P?irrpn+

sals 1

iawful

Proposals to hamper
merge^ £tJnfchmpnt
and unusual P«hishment
ing forcing a ^n fro ^

inrlud

"^lud^

to penally

thousands

smaller

companies"
-

for

goods and services.

An example most familiar to
is

the

States

1956

and
me

by the

domestic affiliates of Standard Oil

Company
money

(New

Jersey).

This

represents the re-invested

profits

belonging

build

and

modernize

than

facilities

capable of supplying the increas¬
ing energy needs of the American
consumer.

000

Much of this

tjife- actions, motives,

ance

$475,000,000 being spent in

United

*»<?n0?e mofe s^than this ignorabout

$475,000,-

company

actions

economic; effects of business.

Replacing,

with

truth

the

should be the Concern of all busi¬

\%h.

nessmen.1,,.

the

that

•*

which
u

seems

-feel

the

guilty of

antitrust
a

point

true

misde¬

—

and

75%

these

sup-

there

makes

are

example,
the spe¬

are':,

vital

the

entitled to proper

representation by" legislators.

their

50% of the dollar total of the pur¬
chases made by Jersey's domestic

provide
individuals,

affiliates.

men

during the period of
violation. In addition, they shall
be enjoined from
rendering any
service to the company
employing
them, for not less than 90 days

companies

You

are

can

receiving about

see

that if

con¬

direct in¬

note tell¬

A continual

display of interest in

his problems and activities is the
most effective method of build¬

ing

his

your

mind

Certainly
proach

this

long-range

better

ap¬

understanding

relationship of business¬

with

Congress.

legislators
business

see

Too many
hear from their

constituents

they have
cific

preferable to what is often

seems

the usual
men

interest

business affairs.

own

only when
complaint about spe¬

legislation,

or are seeking a
all, business is a
ingredient in many of the
principal interests of our law¬

favor.

After

chief

makers—the

ployment,

maintenance of

extension

defense
it

conflict,
and

when

those

atmosphere

self-seeking,
possibility of mistaking

less

aims

your

well

session.

hint

for

legis¬
in the "off

a year,

there

This

logical

know their

periods

times

nation.

Congress is

em¬

research,

technology, and

our

only

lators 365 days
season"

progress

the

businessman

trying to explain the fundamen¬
tals

tant

they

business

and

how

impor¬

to the health of

are

which- supports

economy

our

all

citizens.

our

In many

other

have

too, busi¬

ways,

the

responsibility

for

extending this understanding
nwidely
among
other
public
Plant

visits

turn

can

community indifference or sus¬
picion into friendship. The spon¬
soring
by
business
of
Junior
Achievement

companies brings

knowledge of
tem

when,

they

a s

economic

.our

boys and

girls at
learn

sys¬

age

doing,

t^e lessons will really sink home.
The cheerful assumption by com¬

the

small —of civic

own

national

than

any

towns, states,

scale

will

—

far

words—convince

public that business organiza¬

tions

interested

are

profits by improving

in
our

making
society,

extracting from it what the
will

bear,

Certainly there is no reason for
any businessman to feel that the
r

job

ing

better

public understand¬

accomplished just because
a popular subject these

business is

days.

knowfedge

and ^background
such representation.

and

fiscatory

plants

what

taxes cut the amounts
have to invest, there would be

mat¬

your approval.

traffic

ness

acted

have

and sincere

not by

The

has

it, write him

terest in

ing of

voting record.
he

measure,

ter whether you

busi¬

district

panies—large

business is measured). The small¬

pay

wisely about

of Cbngress know what

business;'tick.

areas, and are

feel

you

duties in their

cific responsibility for seeing that
members

Follow his

When

^ ^
.me,
for

businessmen; have

meanor, shall be subject to a $50,000 fine, and shall forfeit twice

Senate.

sional

com.-

respect

of view,
beginning of
;
;; < ■■
;
am
recommending is

the

and

done?"

natural;rejoinder,

very

one

is. that-to.

."How

States

lead to

other's

groups.

pliers employ less than 500 people
(the yardstick by which a "small"

provisions
shall

the

will

constant

and take the time to go and hear
his story. Read his speeches
given
on the floor
of the House or the

busi-

penal
laws

for

nessmen

ne®s

iS Always dangerous

being spent for materials
supplied to us by more than 26,000

authorize

munication

which

and
you

ask

offices.

make

or "

Congress¬

your

Senators

visit

Show

do,

your

them

and

ex¬

Familiarity is no substitute
understanding. And real un¬
derstanding is worth working for,
for

since the future of
economy

our

stake

industrial

and,

along

with it, the future of every Amer¬
ican.

•

will

you

^complete

But the very; process

businessmen

separate companies in the United

who

that

agreement.

of;. friendly.- and

makes

subsequently held to violate the

officials

provides

immediate

the

such ignorance on the other.

j^Sirg^er

be^ngTnvested°for

with

introduced

been

into

consumption. They are
not designed to achieve so-called
laudable

organizations and industrial
plants of a state -or a congres¬

bill

likely,! that ;

achieve

diency. It is undoubtedly true that

encourage

330,000 stockholders, put to work

Also in the antitrust field is a
bill recently introduced into the

Note, too, that despite its

of taxation would be reduced. The

company having assets of
000 without

$10,000 giving 90 days notice

to falter and fall back.
These potential laws might be,
and often are, explained away on
the
grounds
of- political
expe¬

not comfort me. Whether or not
suck
eYe,r,
^

about

interstate

off, finding no space in which to
move ahead, it
might well begin
f v
-v
o—"

is presented is the guise of helping smaller companies whose rates

Washington would have to be ad¬

Reduced business activ-

decrease.

hope of their

No longer is the
corporation
obliged
observe the law.
Now

soon

ity would squeezejhe wage earner,
the farmer's"" income would
shrink, and thert would soon be
less and less goods for the con¬
sumer.
As our Economy leveled

philosophy.

citizen

would

reported

was

bring

Jaw the govern-

some

in advance.

conditions.

appealing.

prohibiting

could

which

formed

reasons

able

law

might

you

of several

one

reasons.

sidiary

bill

businessman

you—the sole
owner—had incorporated for good

would

seem

This

in practice, that

stations

So, at first glance, the aims of this
may

with which

familiar:

are

mean,

ice

example,

tax

revenue

historical pattern of business tax¬
ation followed by our government,

absorbed

It is in the interests of business¬

lead

Taking

tax

This proposed law, which represents a radical departure from the

Themselves Better Understood
at any

such

With

ment's

of 22%
to a high of 75%.
(That is correct, three-quarters of
a
company's income in the top
bracket.)

Businessmen Must Make

low

page

—

and

even

Dallas.

Houston,

but the judges of this measure be -stopped dead in wisdoms
What I
highest court often disagree their tracks. They would be forced '
on
what
is
right and what is to forego expansion plans Which that businessmen should work to
develop understanding with legis¬
wrong. Few statutes are less un- are important props to our preslators
in - the
derstood or subject to more dif- ent and future prosperity.:;. The
same
ways
they
ferent
interpretations
than
the effects of this action would be would do so with their customers
or friends.
Sherman and Clayton Acts. What felt very promptly-not only by the
Find out where your
is right and accepted in one year larger
corporations directly in- congressman or senator is plan¬
can
be, and has been, judged il- volved, and the sjnaller companies ning to speak in your neighbor¬
legal in the next. The present bill the proposed law, is supposed to hood
and not alone before or¬
if it were to become law might help, but also by "every American,
ganizations to which you belong—

the convention of the National Association at Hollywood, Florida,
in November, are:
Chairman:

their -.minds.: ! And

don't think it's overly Important,

our

Council of Texas.
New officers elected

ample
effects

what's,-on

not only lawyers

Vagtborg, President of the Southwest Research Institute,
E. Tinsley, Executive Director of the Municipal Advisory

and

fer?-y^-V
When you multiply this ope ex^

thousand ?fold the true
the worst felon. Just as the law
of this proposed tax lawu
of ancient England
chopped off become uncomfortably'plain. Our:;
the hand of the pickpocket, this- large business institutions, -which
law would take the right arm of have - grown
large because they
the businessman.
And this is to have big services to perform in
be done to enforce a statute where this growing country, would by
severe

Taylor B.

that given

treatment than

seems to me, are ideal forums for"
government." '1 wonder whichlawmakers4o utilize in revealing
course small business would prer

♦

Number 5530

Volume 183

...

The Commercial and Financial
Chronicle

(2163)
Continued

from

page

The State oi Tiade and
and

cars

99,500

trucks,

the

latter

95.5%

occurred.

planned

clined

•

recapping this year's output pattern, "Ward's" stated manulacturers built 29,100 cars daily in January and pared to the
26,000 level thereafter—to 28,400 in February, 26,160 in March
and 26,450 in April..
•
*, /' *•;.
.
v
,v
"

involving

week

1955.

Concerns

$100,000 totalled 19, the

failing

with

May bift now has reduced the objective by 6.4%, which
38,000 final, assemblies off the May target. •.
^ ,/
'•
May's projected average is 14.8% below this year's high of
29,100 car assemblies daily reached in January. 1: V
J:
:

:.,;A i

.to

last week*

same as

5.9%..

Capacity

•

Record

second

quarter steel mill

operations

predicted

were

cottonseed

oil, hogs and lambs.
/
<
The index represents the sum total of the price
.

;
31

some

analysts believe there

being
short

24,
a

inventory, the metalworking authority stated there
little likelihood of a general
inventory recession like \ve had in

late 1953 and
The

the

across

board.

in the automotive

that

stocks

are

being fattened up
concentrated principally

tories.

They
consumption

are a

general

incentives

for

piling

forms

steel

and

the

need

for

steel

grain

steel held at

The

$128.02

American

Iron

and

Institute

announced

the

99.5% of capacity for the week beginning April 30, 1956, equiva¬
lent to 2,450,000 tons of ingot and steel for
castings as compared
100.5% of capacity, and 2,473.000 tons (revised) a week ago.
The industry's ingot production rate for the weeks in
1956 is
based on annual capacity of 128,363,090 tons as of
Jan. 1, 1956.
For the like week a month ago the rate was

2,406,000 tons.

year

placed at 2,331,000 tons

was

ago

the actual

96.6%.

828,310 tons

of Jan.

and power

Car

of
•

week, and

increase of 137,255
corresponding week in 1954.

cars,

21.9%

above

the4

S. Automotive

Production Last Week-Held
Steady
With the Prior Week But Declined
29.4%
Below Output For Like Period In 1955

Automotive output, for the latest week ended
April 27, 1956,
according to "Ward's Automotive Reports," held steady with the
previous week's level, but registered a decline of
29.4% from the
same
•

week

year ago.

Last week

the

industry assembled an estimated 129,960 cars,
compared with 129,930 (revised) in tHe previous week. The
past
week's, production total

units,

cars

and

trucks

amounted

153,007

decrease of 260 units below the
preceding week's output,
"Ward's."

states

Last week's

car

output

above that of the previous week
by 30 cars, while truck output showed a greater loss the
past week
of 290 vehicles. | In the
corresponding week last year 184,279 cars
and 32,350 trucks were assembled.
rose

Last week the agency
reported there were 23,047 trucks made
in the United States. This
compared with 23,337 in the previous
.

week

and

32,350

the

Business Failures Show Further Declines in Latest Week
Commercial
week
to
a

and

industrial

ended

Dun &
year ago

failures

declined

236

the

Apnl 26 from 252 in the preceding week,
according
However, the toll exceeded the 212 of
and the 234 of the comparable 1954 iv^ck."
Continuing

Bradstreet, Inc.

pick-up

week

38.030

and

March

Thursday, May 10, 1956

Park

bread

active and

was more

mod¬

and "refined

raw

prices

the

moved

irregularly

lower

last

week.

market

reversed itself following the
parity loan rate, which was below

82.5%

against

the

61,700

for

last

would

result

the

dumping

delivery commitments.

spot

bales

by fears that the substitute proviso

program

tive terms.

were
relatively small and
week, against 38,400 the previous
Mill consumption of cotton during

to a daily average rate of 36,656
bales, from
during February. The March 1955 rate was 35,730

bales.

work

Trifle Above Like Period

fifth

term

and

The total dollar volume of retail trade in the period ended
Wednesday of last week was 1 to 5% higher than a year ago,
according to estimates by Dun & Bradstreet, Inc. Regional esti¬
mates varied from the comparable 1955 levels by the following
percentages: New England 0 to +4; East -f-4 to -f8; South +1
to
-f5; Middle West, Northwest and Pacific Coast +2 to -j-6

Summer

women's

Volume

—5

sales

—1%.

somewhat

suits,

stimulated

tee and

dresses

cotton

buying of
lightweight coats.

and

moderately.

sales

country-wide

from the Federal Reserve Board's index

basis

of the week

21r 1956, increased 1 % above those of the like period of last

istered

slight increase

New

above

York

City the

past week

the corresponding

period

According to the Federal Reserve Board's index, department
in New York City for the weekly period ended April
21, 1956, increased 7% above those of the like period last year. In
the preceding week, April 14, 1956, an increase of 20% (revised)
of 3%

was

the index

For

the

recorded.
recorded

period of 1955.

four

Chairman

record-breaking
term, to seek

for

three-year

presently serving

member of the Floor

Halsey, Stuart & Co.
McMaster

Hutchinson

Inc.

and

Co.

are

offering today (May 3) $3,285,000
Western
Maryland
Ry.
3%%
equipment
1957

trust

certificates,

se¬

S, maturing annually June 1.
to 1971, inclusive.

The

certificates

yield 3.35%

scaled

all maturities.

Is¬

are

and sale of the certificates

are
subject to the authorization
of the Interstate Commerce Com¬

mission.
The
the

issue

following
to

be-secured

equipment

esti¬

cost

$4,114,521:
two
switching lo¬
comotives; 75 flat cars; four dump
nooner

April 21, 1956, a gain
For the period Jan. 1, 1956 to April 21, 1956
above that of the corresponding

cars, and 45 cov¬

cars.

Formed in New York
Formation of the firm of

Ward,

Ryder & Co., Inc., 49 Wall Street,
New York City, underwriters and
dealers

ment,

United

tax

Carroll J.
new

and

Govern¬

corporate

announced

today.

Ward is President of

organization, and Patrick

J. Ryder
Mr.

States

exempt

securities,
the

is Vice-President.

Ward

Mr.

and

Ryder

Both
were

formerly associated with Bartow
Leeds & Co.
Edward

retary

M. Fiizpatrick is Sec¬
and Treasurer of the new

firm.

was

D'Avigdor
was

Co.

formerly
with
prior thereto

and

officer of J. B. Roll & Co.

Joins R. A. Harrison
(Special to The Financial Chronicle)

SACRAMENTO,
dreth
th«

2200

Calif.

Dambacher

sta'f

16th

Richard

—

has
A.

Hil-

joined

Harrison,

Street.

With Hannaford Talbot

weeks ending

rise of 2%

-no

hopper

Ward, Ryder & Co.

year

Trade observers placed the gain at 2 to 4%.

recorded.

exchange.

Halsey, Stuart Group
Offers Equipments

reg¬

store sales

was

1956

year.

preceding week, April 14, 1956, an increase of 11% was re¬
ported.
For the four weeks ended April 21, 1956, no change
was
reported. For the period Jan. 1, 1956 to April 21, 1956 a
gain of 3% was registered abov^ that of 1955.
volume

the

taken

ended April

In the

trade

retired

Transactions and Securities Com¬

millinery, sportswear and lingerie was at the level
of the previous week.
A slight rise in the buying of men's
tropical suits was reported, while the call for furnishings declined
stores

pro¬

mittee.

consumer

Department

consecu¬
was

Chairman of the Finance Commit¬

Southwest

a
regular board member.
elected to the board again

was

for-*-

apparel, linens and housewares. However, the total dollar vol¬
was slightly above that of the similar
period a year ago.

ago.

Mann

early

ume

Clearance

Market

dinner

consecutive

post

ered

Ago

There was a slight dip
in retail volume the past week,
despite numerous sales promotions and clearance sales in women's

fi¬

boy

page

Diesel electric road

Slightly the Past Week With

A Year

and

The

behalf

Mr.

mated

Over-All Volume

Curb

posed by the membership accord¬
ing to Mr. McCormick, to pay
tribute
to
Mann's
outstanding

declined
bales

York

1925, is the only individual in the
exchange's history to hold the

suance

markets

the

year.

career

New

ries

in the trade had expected.

at the

Hotel.

Mann, who started his

nancial

the cor^espondipg datp, a, yea#

Lane

Mr.

parts of the Winter

noted.

brisk with both

prices

export

44,000

Retail

was placed at 11,470 cars and
2,926
previous week Dominion plants built 11,458 cars
and 2,909
trucks, and for the comparable 1955 week, 11,307 cars
and 3,085 trucks.

rain in

the

fair gains largely influenced by
Activity in grain and soybeans futures

was

the

cotton

Sales

J. Mann,
testimonial dinner to be held

at the end of his

corn

was

^76,447 bags

strength,

cotton

totalled

year ago.

Canadian output last week

trucks.

early

unwanted

Loadings Advanced 2.9% the Past Week

Loadings for the week ended April 21, 1956, totaled 763,437 '
cars, an increase of 62,005 cars, or 8.8% above the
corresponding"

and

made

Trade Volume Eased

revenue freight for the week ended April
21,1956,
increased 21,384 cars or 2.9% above the
preceding week the Asso- ;
ciation of American Railroads
reports.

E. T. McCormick

Chairman, John

chairman's post for five

selling developed

snow

buying

cotton

announcement

Loadings of

1955

late

Some selling was induced

This week's output declined
27,000,000 kwh. under that of.
the previous week; it increased
1,168,000,000 kwh. or 12.0% above
the comparable* 1955 week and
2,477,000,000 kwh. over the like
week in 1954.

date

past week-end.

of export

the level many

Preceding Week

industry for the week ended Saturday, April 28, 1956,
at 10,867,000,000
kwh., a decrease below the week¬
1956, according to the Edison Electric Institute.

Investment buying of

Domestic

1, 1955.

ended April 21,

the

in the main producing areas, and

some

Trade in sugar

After

125,

was.estimated

slightly for the week. Lard prices moved irregularly upward,
influenced by strength in vegetable oils and a
steady to firm un¬
dertone in the hog market.

The

The amount of electric
energy distributed by the electric light

274.31

and

retired

pro¬

The operating rate is not

Electric Output Continues Decline of

John J. Mann

up¬

the

ago.

weekly production

comparable because capacity is higher than
capacity in 1955.
percentage figures for 1955 are based on annual
capacity of

move

was

Some

the

and compared with

with

duction

Chicago Board of Trade expanded sharply last week with
total sales averaging about 67,100,000 bushels
per day, compared
with 62,400,000 the previous week, and
43,400,000 a year ago.
Cocoa
prices finished slightly higher following irregular
movements during the week.
Warehouse stocks of cocoa showed
a further slight drop to
340,299 bags, from 343,512 a week earlier

operating rate of steel companies having 96.1% of the steelmaking, capacity for the entire industry will be at the average of

97.7% and

crops.

Oats and rye prices
strength in other grains.

finished

that

crops

over

est volume

Steel

wheat

reports of

ing light.

net ton.

continued

Corn prices advanced sharply with country
offerings continu¬

over a possible strike of steelworkers.
The scrap market remained
strong, with "Steel's" price com¬
posite advancing 33 cents to a new record of $55.33 a gross ton
in the week ending April 25. "Steel's"
price
on

earlier

week

business.

wheat belt

carry

composite

and

corn

export

probable steel price increase at midyear; heavy

most

level

the

threatening 1956

inven¬

price

stimulated also by a growing tightness
in the supply of "free"
wheat, the fact that drought conditions are

are not expected to
strengthen the steel indus¬
try's bargaining position with labor in the June contract talks.

three

from 293.22

Demand for wheat

Inventory buying is
industry and mainly in cold-rolled carbon sheets.

listed

commodity

price supports for this

not

These inventories

"Steel"

general

year ago.

year's

reason

pound of

Grain markets showed considerable
strength during the week,
influenced by the announcement of higher

1954.

major

per

The daily wholesale commodity price index,
compiled by Dun & Bradstreet, Inc., registered 295.24 on April 20,
the highest point reached in almost four
years, or since June 13,
1952, when it stood at 295.54. The index closed at 294.98 on April

tons of steel in

«...

ward the past week.

18,000,000 to 20,000,006

are

recently

Commodity Price Index in Latest Week
Registered Highest Level Since June 13, 1952

The

While

honor

Wholesale

possibly small sizes of hot-roiled carbon bars are expected to be
in short
supply throughout the year.
If there is no steel strike
this summer, the magazine said cold-rolled carbon sheets
may be

supply.

President,
Exchange

that

would

raw

Plates, standard structural shapes, wide flange beams, seamJess mechanical tubing, line pipe, oil
country tubular goods and

Exchange

foodstuffs and meats in general use and its chief function
is to show the general trend of food
prices at the wholesale level.

The metalworking publication said that despite this
high produc¬
tion level, many forms of steel will remain difficult to
get.

easier to get as automakers work off
part of the inventories
built up.
But this will not affect other forms of steel in

McCormick, Ameri¬

announced

Monday of this week by "Steel" magazine, as production of
steel for ingots and castings last week
edged above 100% of prac¬
tical capacity for the first-time'this year. ^The mark:
100.5%.

Stock

Twenty of the items included in the index showed no change
in price last week, with
only eggs quoted lower. The 10 commod¬
ities advancing included
wheat, corn, rye, oats, hams, lard, butter,

^ '1

Steel Production Set This Week at 99.5% of

Edward
can

has

liabilities

Extending its upward movement, the wholesale food price
index, compiled by Dun & Bradstreet, Inc., rose 3 cents to a new
five-month peak of $6.04 on April
24, the highest since Nov. 15,
last, when it also registered $6.04. It compared with $6.42 on the
corresponding 1955 date, with the year-to-year decline narrowed

in effect cuts

Al Testimonial Dinner

year ago when 177.
liabilities under $5,000, de¬
the previous week and from 35 in the

failures

from

Wholesale Food Price Index Holds to
Higher Trend

A S E to Honor Mann

members

Originally, the industry planned to operate at April's daily

rate

excess

J
1

Small

comparable

down 28% from the 326

Failures with liabilities of
$5,000 or more dipped to 207 from
214 last week but were more
numerous than a

Industry

attaining

volume.

below the pre-war
level, failures wei*e
recorded in the similar week of 1939.

SAN

FRANCISCO,

Oliver H. Brouillard is
i-

i+v»

Hannaford

519 California Street.

Calif.
now

—

affil-

Talbot,

The Commercial and Financial Chronicle...

Industrial Production la Boom in Fall

Putnam Fund

After Year at Peak Levels, K nip Says

Mutual Funds

Assets $131 Million
*

Industrial

production which
peak in this
country last winter is expected to

year ago

value

asset
to

$13.25

May,
1955.
Number of shares
outstanding
and
shareholders
were also at new highs.
On
March 31
common
stocks

of the fund's
compared with
and 66% on Dec.

65%

represented
total

'Total net assets of the 152 member

$9,835,921,000,
of

total

gain

$9,036,609,000,

report.

The

ago

year

companies-

Billion

March 31, 1956 amounted

number

of $799,312,000 over the 1955 year-end
according to the association's quarterly
March 31 total assets of NAIC member

investment

with

accounts

67%

year ago

31, 1955.
New additions to the fund

dur¬

included:
9,000 shares Filtrol Corp.; 15,000
Ford
Motor Co.;
10,000 Granite
City
Steel
Co.;
20,000 Loblaw
ing

the

first

quarter

weeks.

Wellington

breakdown

drop

and price

the

that

said

executive

resi¬

which

production,

ended

million

decline has

Portland

Gas

Mfg. Co.;

6,700

Coke

Co.;

of shares

included:

Bank & Trust Co.

10,000

4,000 Boston

Central

15,000

Co.;

(Denver); 5,000

bal-

primary objective of which is
to provide an investment in a diversified group of bonds, preferred
and common stocks selected be-

tained

ago

year

portfolio

pur¬

March 31, 1955 and $437,966,000,

the first quarter, totaled

which

members

5.6%

$1,280,427,000, compared with $1,199,-

March 31,

Securities

Established 1930

New York

Broadway, New York 5,

compa¬

J
company's reducing equity hold¬
ings in a prolonged market rise
and reinvesting proceeds in fixed

Nation-Wide Sells Stock
As Market Goes

invest in

Nation-Wide

ATOMIC SCIENCE

Securities

Com¬

pany,
Inc., a balanced mutual
fund managed by Calvin Bullock,
sold
common
stocks on balance

through

ATOMIC

the

market

rose

over

the

past

income
as

March

16.26%

3i, 53.30% of its
in common stocks,
preferred stocks,

13.83%

corporate

holdings

the

pany's report for the six

months

cash

and

This does

total

net

MUTUAL

ended

FUND, INC.

not

GET THE FACTS AND FREE PROSPECTUS

March

31, 1956.

that

mean

the

Nation-Wide

feels a decline in
common stock prices is imminent,
the report says, but reflects the

rest

government
like.

the

assets

and

bonds,

March

Nation-Wide

shareholders

new

reached

$27,414,000,

$19.98 per share, and total shares

outstanding

1,372,151.

were

►

■

Tel.

FEderal

tion of 37

Credit
and

Feb.

capital gains distribu¬
cents per share paid on

for

were

preferred
stock.

common

substantially

include

Airplane

In¬

Co.,

Bur¬

Aircraft
&

Co.,

Inc.

reductions

General

Engineering

made

were

Motors

Corp.,

Grum¬

Louisiana

Corp.,

Exploration Co., and Union Pacific
Co.

the

reports
March 31,

quarter ended

of $29,515,-

1956, total net assets

393, equal to $39.65 per share on
ni"

shares outstanding. This
with $22,134,238, equal
to
$35.59 per share on 621,940
shares outstanding for the same
744,379

lllV6StOrS IVlIltllQl

compares

Sets New Records

period

ferred

1956,

31,

stocks

its semi-annual

ago.

year

March

Inc., largest
mutual fund affiliate managed by
Investors Diversified Services,

Mutual,

Inc., disclosed in
the

had

fund

reached

new

Wisconsin

1955

net

assets
from

of'

between

Sept. " 30,

March

31, 1956, an in¬
$106,825,577. Net asset
the

31,

compared with $8,earlier, and $10,644)941 at the 1955 year-end. Net
assets per share amounted to $5.61on March 31, compared with-$5.40
on
March 31, 1955 and $5.84 on
Dec.
31, 1955.
The figures for

Investors

reported
1956, of

Inc.,

March

$11,338,984,

$846,644,515 to

and

crease

Fund,

assets

628,523

period in its history,

net

stocks, and 28.74% in bonds

and cash.

highs in the first fiscal six months
of 1956, topping figures recorded
at the end of any annual or semi¬

rose

common

represented 61.89% of the
Fund's assets, with 9.37% in pre¬

report to its 215,000 shareholders

$953,470,092
ANNOUNCE THAT

Corp.,

Massachusetts Life Fund

1, 1955.

Investors

Pfizer

Chas.

Land

into

Boeing

Substantial

man

Ginger

Corp.

Corp., Chrysler Corp., Commercial
Co.,
Container Corp. of America,

roughs

1, 1956, which compares with
3114 cents per share distributed

Mutual

PLEASED TO

Inc.,

dustries,

Feb.

v'Total

3-1000

WE ARE

also attained

Ale,
and
elim¬
shares of Hilton

Dry

investments

amount

in¬

Admiral

Standard

holdings and
4% %
convertible

increased

added

Power

Chemical

stock

Common

Railroad

Canada

Mohawk

Southern
Air¬

newly

Radiator

converted

were

31, 1956, net asset value per share

annual fiscal

STREET; H. VfWASHINGTON 7, 0. C.

Corp.

stock

holdings

after

per

com¬

United

stocks

Corp.,

pared with $14.80 on Dec. 31, 1955
and $13.15 a year ago. The March
is

73,-

holdings,

City

and

from

inated

Co.,

appeared

Olin-Mathieson

Hotels

investment

Kansas

Common

Niagara

Inc.,

American

Sanitary

1033 THIRTIETH

numbers

120,

were

Trane

Corp.

Corp.,

March 31, 1956.
asset value per share as of
31, 1956, was $15.38 com¬

highs

that

Securities

management

Development Securities Co., Inc.

Dept/C-

craft

1955 and ap¬
37.6% over the net
asset value of $173,902,917 as of
March 31, 1955.
The number of
shares outstanding an the num¬
ber

stocks

Co.,

vestments.

were

bonds,

dividends

year

changes

Among

Railway

Dec. 31,

income

common

new

investments.

six months, according to the com¬

DEVELOPMENT

Atomic

all-time

proximately

Net

increase in

reached

March

capital of $7,450,000, resulting from the
sale of new stock, bank loans and other sources totaling $7,586,000,
offset by the retirement of stock or bank loans of $136,000. In the
same period last year closed-end companies had a net decrease in
capital of $1,794,000.
'
1

Corporation

Research

had

$15.63

Further

pared with 110 in 1955.

1956, Fidelity
asset

31,

reported that the net

596,660

1955.

During the first three months of 1956 the closed-end
nies

with

year-end.

reported

this

over

Dec. 31, 1955 and $1,219,788,000 lor the 29 companies

were

rose

March

quarter

increase

Net assets of the 26 closed-end member companies at the end

085,000

compared

1955

were

share
of
8.2%

per

Investors

31, compared with
69,284 three months earlier. First

$239,368,074. This is an
of
approximately
10%
the net asset value of $217,-

high

or:

National

120

at the close of 1955.

investment

your

period

$416,401,000 and $274,999,000, respectively.

March

value

by the

$341,542,000, or 5.2%

from

same

Fund

126 mutual funds totaled $508,565,000 on March 31,
1956, representing 5.9% of total net assets. This compares with

high current
yield possibilities in relation to
the risk involved. Prospectus and
Other information may be ob¬
dealer

In the

were

the

222

Cash, U. S. Government securities and short-term obligations
held

-J

of relatively

$359,151,000.

the

of shareholders which totaled

new

chases and sales

$16.91,

gains

To $239 Million

were

the

cause

fact

Fidelity Fund Rises

anced mutual investment fund,

the

opened by investors for the
regular purchase of mutual fund shares during the month of March

Securities purchased by the open-end companies for investment
portfolios (excluding U. S. Government securities) totaled $540,092,000 during the first quarter. Total sales of portfolio holdings

INCOME?
National Dividend Series is

evidenced

occurred

$363,664,472,

value

asset

program,

30,447 in the fourth quarter of 1955.

FOR

INVESTING

net

has been introduced into the pro¬

equal

Over $43

31, total net assets of

were

Fundamental

gram

1956,

increase

so far reported.
During the first quarter of 1956,

The number of accumulation plans

Fund

Wellington Fund's
Mr.
Kulp
said the degree of caution which

ing period of 1955 purchases by investors and redemptions were

the

months

highest

Discussing

investment

For the correspond¬

(redemptions) totaled $116,972,000.

peak of 15,355, bringing the total of new plans for
the first quarter to 40,993, compared with the previous high of

—i

by investors during the first

record high of $349,907,000 while repurchases

31,

gain

$90 million.

On March

the

activities of all kinds.

struction

$330,099,000 and $140,039,000, respectively.

was

Groceterias Ltd. "B."

Loblaw

Purchases of mutual fund shares

quarter were at

shares Anaconda Co.;
Insurance

$7,837,524,000.

2,100

Gypsum Co.

Eliminations

moderate

the

in the first quarter of 1956.

been

reported

board, Marine

than

peak, have sta¬
satisfactory
levels.

34%

assets

March

bilized

Up 34% Gain

reveals

net

last year's record

Island

veer

'Investors, Inc.
Quarterly Report to share¬

total

automobile
are off
from

fully offset by the rise in capital
expenditures for plant and equip¬
ment and the rise in general con¬

Fundamental

holders

building ..and

Their

Out¬

attitude,

traditional

risks.

93rd

Companies, Ltd. "B"; 5,600 Long

10,000

fund's

Of $90 Million

quarter.

Association's 126 open-end company members at

Co.;

bearish

the

ex¬

March 31, 1956.

Lighting

rose

recent

He reported that this does

Chalks

back to a high rate

snap

fourth

The

figures shows

quarterly

Fundamental

in¬

output is then

Steel

dential

net assets of the
$8,555,494,000 on
This is an increase of 31% over the $6,524,486,000
ago, and $717,970,000 over the 1955 year-end total
of

market

of adjusting the portfolio
abrupt shifts in relative values

al¬

been

policy
and

of wage

pected to
in

the

rather

director of the in¬

not

high ground

but

outlook, Mr. Kulp said that
no strike, steel produc¬

creases.

152
companies amounted to $71,477,000 for the first three months of
1956, compared with $62,413,000 in the same period a year ago.
Distributions from realized capital gains and other sources for the
first quarter totaled $61,205,000 against $30,698,000 a year earlier.

rise

has

report on the general busi¬

ticipation

by the

shareholders of investment income

Payments to

new

represent

than
seasonally in' the third quarter
because of forward buying in an-,

investment,

lowed

invested

percentage
stocks

Vice-President

tion is expected to

present association members.

the

not

if there is

com¬

during the first quarter to a total of 2,339,345
This represents a gain
of 276,645 over the 2,062,700 shareholder accounts reported by the
146 companies which were members on March 31, 1955.
152

sea¬

that

expected,

vestment committee of

increased by 66,796
the

than

Fund, stated.

panies (many investors have holdings in more than one company)
for

better

Kulp,

Moyer

ness

shareholder

when

improvement

and Executive

$7,744,274,000.

were

record

fall

the

sonal

companies of the National

Association of Investment Companies on

per share in¬
compared with
$12,065 a year ago and $12.75 at
the
year-end, adjusted for the
100% stock distribution paid in

Net

creased

ROBERT R. RICH

Investment Company Assets $9.8

and $121,220,021 at

year-end.

into

reached

with $105,347,-

332.452, compared

common

continue close to these levels into

George Putnam Fund of
Boston
reports for the quarter
ended March 31, 1956, total net
assets at
a
new
high of $131,The

835

Thursday, May 3, 1956

(2164)

year

value
t*
•jcj"
f

MR.

etiu',;

•'

>ii"

SHEFFEY

'fn'i

•

• •.

f,',.

ik.

NOW ASSOCIATED WITH

fund's

front $18.15 to

creased

Formerly Executive Secretary of the ■
National Association of Investment Companies
;

THE COMMON

STOCK

JOHN

in¬

$19.32 per

during the <£irst half of the

fiscal

year,

66.76%

the report showed.

March

this

of the portfolio of Ipves-

Mutual, Inc.. was in common
stocks, 18.97% in preferred stocks,

FUND

Group Securities, Inc.
Incorporated 1933

tion

Jan. 31,

cents 'per

/*'' '

1956.

share ' on

;

year,

tors

March
31, 1956 are after pay^
meffitof the capital gairiis distribu-.

Bond

The

the

assets

Fund

Boston

net

fiscal

its

March 31 were $3,646,615,
and 11.87% in bonds.
Cash and equal to $8.11 per share, accord¬
This
other
net
assets
amounted
to ing to the annual report.
compares with net assets of $3,2.40%.
Unrealized appreciation of in¬ 347,907 at the end of March, 1955,
to $8.20
per
share.
vestments
climbed
during < the amounting
first half
of
the current
fiscal During'the 12-month period the
number of shares outstanding in-,
year to a record high of $249,creased from 408,062 to 449,533.
125,732, an increase of $49,636,898
The report notes that all bonds
over
the unreal'zed appreciation
year on

A mutual fund
for

investing

income and

through

common

EATON

growth
stocks

HOWARD

INCORPORATED

selected for their invest¬
ment

Investment

quality.

figure of $199,488,834 at the be¬
ginning of the period. Dividends
derived entirely from investment

Managers

BOSTON
a

prospectus

request

Distributors Group, Incorporated
63 Wall

Street, New York 5, N. Y.

income,

Federal Street
boston

Russ Building
San

francisco

paid

last

Established 1921

from your investment dealer

months

six

declared
ended

March

the
31,

held

are

Fund's
the

of bank quality.

total shares at

latest

fiscal

year,

Of the

the end of

34%

were

individuals, 32% by fidu¬
ciaries, 8% by insurance compa¬

held by

other

corporations

1956, totaled 3^M> cents per share
compared with 31 cents per share
for the like period in the previous

nies,

13%

and

the

charitable

and

year;

tutions

profit-sharing funds.

balance

by
religious,
educational insti¬

Volume 183

Number 5530... The Commercial and Financial Chronicle

MUTUAL

...

FUND

STATISTICS—MARCH

31,

195S

service-to

(000's of dollars)
Mar. 31,

Dec. SI, '55

'56

Total Net Assets________$8,555,494

June 30,'55

1st Quarter

March

Redemptions

February

1956

$349,907

39,337

116,972

________

$540,092

$375,633

359,151

233,406

Sales

few

weeks

ago

stated

was

by the Norfolk & Western

(Excluding U. S. Government Securities)
4th Qr. 1955

$1,640,656 $1,363,398

sponding

968,033

1,098,224

the

1955

period."

This

4th Qr. 1955

Year 1955

$65,681

$72,101
152,470

$241,036

$200,102

222,018

129,933

From Investment Income

From Security

Other

From

Profits___

Sources

56,351
2,

160

$1.44

552

per

able

increase

having
Number of Accumulation Plans Opened

Month of Feb.

1st

12,648

15,355

Qr. 1956

4th Qr. 1955

30,447

40,993

Year 1955

31,'56- 2,157,468

Dec. 31,'55—2,085,325

months

industrial

Taft, which he joined as
member
of the legal staff in

the

per

latter

part

the

the first

The

the

first

two

freight
in

was

industrial

rate

March

public

utility

eral

centers

Northeast

and

the

afford

quarter.

of the

same

gen¬

units

for

diesel

purpose
.

re 50 diesels and the balance for
acquisition of 8,550 freight
cars'
modernization of three

yards» and the expansion of the
Roanoke car shops,
The Norfolk & Western

earned

$6.70 per share in 1955 including
the benefit of 70 cents per share
from the $3,963,000 tax deferment
due to accelerated amortization,
It is reasonable at this point to

North

haul

Ports¬

aer/lce inthe Shenandoah District
be7veen ?;®5n0^e' ^a' an(*
frst°wn, Md. Capital expendi???,
? !! fi6,2 million in 1955>
de
program calls for
°,yer
—$9-5 million for

expect that 1956 earnings will be
higher unless the expiration of
the wage contract in the steel in-

almost the same length as the export movement to the Norfolk

or,

Durham,
ordered

between

Ohio and Cincinnati, and
order
was
placed this

quality for coking in steel production and it is also top grade
for steam power for public utilities and others. Shipments to the

fact, the

common

without

increase

and

and notably at the present time, from, the steel industry.
Pocahontas coal is of the highest
sources,

almost exactly as much pro-

months

Dec. 31,'54—1,703,846

two

matter of

net

portionately

for

sham

Personal Progress

first

is the domestic demand from

ern

freight rate increase to
increases that be-

1955.

was

Mar.

share, this sizdespite the handi-

effective

gain

114,974

Number of Shareholder Accounts

ever,

offset the wage
came

(83 Funds Reporting)
Month of Mar.

this is turning out to be, howthe backbone of the coal
traffic of the Norfolk & West-

common

the

cap

West-

over the greater part of the
main line of the road. Important

a gem of underEarnings for the first
quarter of this year amounted to

Year 1954

haul

has

statement.

1st Qr. 1956

Norfolk

ern,

turned out to be

Shareholders by Open-End Funds

Distributions to

the

service

traffic

between.

and
then

road

for 50

year

case

its coal originates in eastern
Kentucky,
West
Virginia
and
western Virginia, and produces a

man-

agement that "first quarter earnings are expected to exceed the
$1.07 per share for the corre-

Year 1954

Year 1955

for

line

Va.

The

mouth,

Norfolk & Western

92,501
A

1st Qr. 1956

another

Purchases and Sales of Portfolio Securities

Purchases

By GERALD D. McKEEVER

$290,417

37,157

1955

$117,756

all. the

branch

placed

were

handle

Lynchburg,
more

4th Quarter

$109,005

Shares—

Sales

the

Railroad Securities

Dec. 31,'54

$7,837,524 $7,185,699 $6,109,390

Month of

diesels

purpose

126 Open-End Funds

;

(2165)

dustry

July 1 leads to

strike.

These shipments northward For one thing, the road comes out
gain in earnings is, of course, move largely to Hagerstown, Md. well in the freight rate increase
The
election
of Jacquelin
A. 1932.
He also is a
director of
largely the heavy volume of coal where they are delivered to the as against the wage increases of
Swords as a director of Hudson Federal
Gas, Oil & Coal Company moving for export, stimulated
by Pennsylvania RR. which controls last
year.
Despite
the" "holdFund, Inc., was announced
by and of Kycoga Land Company. H# the
resumption of coal shipments the Norfolk & Western through down" on the coal rate increase
James W. Maitland, President.
is a graduate of Harvard College
to Free Europe
under the eco- 45%
ownership of its common to 15 cents per ton the freight
Mr. Swords is a member of the and holds an LLB from Columbia nomic aid
program. The prosper- stock. .
rate increase should produce about
law firm of Cadwalader, Wicker- Law School.
ity of Free Europe is vital to our
The main line of the 2,128 mile $9 million additional revenues at
a

this

for

reason,

vigorous

area-

...

interests, and the key to the
a high level of in-,
dustrial
activity abroad is the
availability of coal, and more coal
than Free Europe itself can pro-

own

Public

Utility Securities

Norfolk

duce.

By OWEN ELY

has

During the past two

years

there

has been renewed interest in util¬

growth companies — a trend
slightly
reminiscent
of
1929,
though at" that time the growth
.

idea

greatly exaggerated and

was

High?

(IBM

earnings.
"Blue

to be the
earnings.)

chips"

phenomena—their price advance
is
apt to be compounded, due
both to rising share earnings and

split)

consolidated share

ings of $1.18, without

depreciation
The

charge

earn¬

visible

any

expenses:

currently
(1)
the non-growth
companies such
as
those in New England, Iowa,
etc., which offer attractive yields
list

utility

may

into three groups:

be divided

5V2-6%; (2) utilities of average
growth, yielding perhaps 4-5Vi%\
and (3) the "rapid growth" utili¬
ties which yield only about 2V2-

latter

The

eral average for all

with a gen¬
utilities some¬

where

around

and

low

12-13 for non-growth com¬

compares

15,

ratios

best

for

prospers

such

the

gains.

stockholders

earn

fat return.

accompanying table two
groups of growth stocks are com¬
pared—utility and industrial—the
utilities
being
further
divided
geographically. The table is not,
of course, all-inclusive.
Because
of

variations

policy,
used

dividend

payout

ratios

price-earnings
better index

are

market

in
market appraisals, nevertheless it
seems
safe to conclude that, on
the average, the larger the per¬
centage gains in share earnings
In recent years the higher the
price-earnings ratios will be. This
variety

illustrated

averages:

age
an

the

average

gains
of

chip

group

14%

aver¬

sell

18 times earnings;

industrials,

gains averaging 17%
sell

two

the utilities with

annual
blue

involved

factors

multiple

with

annum,

times

plant.

Access
to
the
South
:s
gained through connections with

try

the Atlantic Coast Line, Seaboard

the extra dividend last

However, the road

consumers.

took

little

chance

for

coal

the

I13® rtecen"y tu™ed l° AiUine ?nd S°"the™ ^
50 cents to 75
United States.
The soft coal
With about 58% of its revenues

the

extent

same

industry

and

its

move

stand to benefit

this

roadsV which

the

product

renewed

tidewater

indefinitely from

foreign

demand.

tidewater

its

area

terminal

the

highly profitable

business for the Norfolk

West-

the similar hauls of the
Pocahontas
carriers,
since it is long haul traffic.
In

ern, as are

other

two

soft

coal

source

steelmaking.

This

Norfolk

Virginian

Railway

Pocahontas

$4 52

1954

1955

total

share in

inrrpasp
rw

«R6 70

pnmmrm

VPar

navmpnt

rat

mTnimum

tation for 1956 fn

set-back

tv»r

exnec-

the ah^enre of

unimaeined

tSde

from

year

highly conservative and

was

this should be

shown by the following table of
revenue
indices based
on
the
1947-49 average as 100:

& Western

sham

energy and as an industrial factor

outside

the

<K3 75

increasing

per

from

The

in most recent years until
1955 in line with the relative decline

cents

earnings

derived from the movement ;• of
soft coal, the revenue trend of the
Norfolk & Western has tended to
lag

The movement of coal for export
Norfolk

vjew

ma<mi

unima^ined ma*ni-

Cil3rl6S WfiMIGf JoIllS

Class I

112
104

than

1953

114

109

113

119

1952

117

127

117

118

Hammill

disappointment where
anticipated "growth" doesn't work

1951

124

137

•122

116

Charles S. Werner has joined the

1950

101

106

company as

the

growth

sedate

utilities,

non-

well

District

Average

occasional

•

■

101

Shearson, Hammill Go.
CHICAGO,
&

111.

Co.

Even

"Growth"

Stocks—Comparison

Earnings

Average

P-E

Gains

the

Norfolk & Western

revenue

trend

Aver.

manded

Increase

Price-

In Earns.

Earns.

1951-1955

■

UTILITY
Texas

STOCKS

Ratio

Companies:

Houston

13%

stock, the road has

obligations,

bonded

States

Community P. S._—
18
fcl Paso Eiectri&X2~JjVj 9;

Arizona

Companies: !'

Tucson

G. E. L. & P._

Florida

Power

fro*8
"18

Tacific Coast

Pacific

Corp._

Tampa Electric

Companies:
&

Puget Sound
Calif.

Power

Electric

Manager of the Insti¬

Idaho

City

E.i

Electric

Power

Public Service of Colo.

Southern

Company

Rockland
General

& P

Telephone

Average for Utilities

February,

its

when the road's
peak, total ob-

ligations have been
$88 million or 71%.
other

The

reason

reduced

for

the

high

regard in which the securities of
the

14%

Norfolk

that

this

Monsanto

Union

Alcoa

IBM

Amerada

fifth in

1955

this

for

score

208

will

road

Its

services

effi-

also ,been due somewhat to the rer
luctance of the Norfolk & Western to dieselize. As late as 1954
year-end, the Norfolk & Western

Trans-

Ratio of 28.9% ranked
principal Class

group of
was

stated in the road's

report that the average tonper

freight train hour, namely 77,547,
also

new

peak.

was

pointed out that this iauer figure

owned

stated above, it has

diesels,

and

with

Werner

and the accessibility of coal,
however, the Norfolk & Western
has begun to give in, and in Ocness

tober of last

year

eight

general

cor-

porations .and
i

n v e

stment

dealers in
Ti/ndwpct

the

arpa

Mr- Werner entered the mvestr"'enI banking business in 1933,
shortly after his graduation froth
Wesleyan University. Except for
four

years

has

with

service

the

Navy in World War II, he

been

with

continually

investment

rGcpntlv

with

associated

banking

Wprthpim

most

*/ro

gently with Wertheim & Co.
Joins Hooker & Fay
(Special to The Financial Chronicle

the

exception of one electric locomotive, it operated
by
steam
power. Despite the relative cheap-

insti-

|- tutions,

mmm

Charles

to fi¬

nancial

very

1955

and

g e d

a r

expanded

cause

While this is largely due to the
road's historically high level of

en-

the various roads, the way
to^viejy; the .fdctot of gross! ton-*
miles per freight train hout, the

efficiency,

head

Shearson,
Hammill's

among

given period.
Largely bethe Norfolk & Western was
already a highly efficient operation in 1946, for instance, the
gain in this efficiency measure
since 1946 has been only 25% as
against a gain of over 40% for

Street.

Mr. Werner

any

South

Salle

last reported, it represented over* 70% of the road's
1955 tonnage. Because of the differences in
the
traffic
consist

enues

office,

cago

the

held

train in 1955 was the
highest ever handled and that
the
1955
gross
ton-mileage per

nage

I roads. It

was

17%

made

the firm's Chi¬

heavy type of the greater part of
this road's traffic. While coal accounts for less than 60% of rev-,

are

Western

operation.

portation

De¬

partment

railroads of comparable or greater
length, but due allowance must

Class I roads.

Aver, for Industrials

1925,

reached

Paper

1955 year-end,

Electric

Scioto

is provided
maturity by a voluntary
sinking fund. It is pointed out in
the 1955 annual report that since
for

General

$3,384,000

Minneap.-Honey well

Carbide

and

National
Pont

debt, consisting of $32,Norfolk & Western first

1996

the

cient

equipment

non-callable

10 INDUST'L "BLUE CHIPS"

Lead

the best for American

Valley & New England first 4s of,'overall measure ,of operating ef1989
and
representing together, ficiency, is to consider its imonly 6.2% of total capitalization provement
percentagewise over

debt

Utilities:

American

Paying cash
and
rolling

its

and

that

tutional
was among

Companies:

Florida

Other

9-v

4Q8,000
4si

.'*uh

■>>.

Arizona P, S.__^
Florida

b:>c.riOI6>

One

be said to be

may

debt-free.
locomotives

West

com-

investment

reasons.

Utilities-

Central & South
Gulf

its

for

high

two

this road

that

was

securities

its

very

for

rating

virtually

Utilities

Texas

{

the

failing to
keep quite, abreast of the general

Ratios
Yearly

when

years

Shearson,

—

announces

out.

Scott

per

major classifica-, for the steel industry; since it is
yard,
the Atomic
Energy stated
that
25.4%
of
the
coal
Commission is building a huge originated
by the Norfolk & West$1.1
billion
gaseous
diffusion ern in 1955 moved to steel indus-i
tion

101

Atlantic

popularity.
While there is no
definite
rule,
because
of
the

At Portsmouth, where

road has* its

125

the

year's result nevertheless
depends largely on smooth sailing

107

^.larg^.V;retainedearnings,j "nde"
and

Columbus.

This

—

128

.being content to. let

Portsmouth, Ohio at which
point a branch runs northward to

126

smaller pro¬
portion of earnings in dividends—
out

pay

via

102

Moreover, growth companies fre¬

quently

Cincinnati

1954

offer

only 2%.. Also the Argentine,
longer able to look to Britain

1955

and

usually

20% over the prelevel while coal production is

The

Obviously, yields are of lesser
importance to wealthy investors
than anticipated capital gains, and
stocks

Brit-

westward

investor
in
rapid
growth issues must be prepared
for
greater
market fluctuations
panies.

4%.

growth

Great

bull market

are

In a bear
nearly all utility stocks (but more rising P-E multiples.
reverse
occurs,
of
particularly the holdings compa¬ market the
nies) sold at fantastic multiples course. As compared with indus¬
of earnings.
Perhaps the prize trial blue chips, the utility stocks
example was Cities Service (at do not seem specially over-valued
that
time
considered
a
utility at an average P-E multiple of 18.
holding company) which sold as
high as 68Vfc
(after a
10-for-l

case

increased

war

seems

favorite at 37 times

ity

the

ain, for instance, steel production

Are ^"Growth" Utilities too

the 1955 traffic level as against
the $7.1 million wage increases—
both on an annual basis. -

Norfolk & Western extends from

continuation of

SAN

FRANCISCO,

David

Driscoll

nected

with

Montgomery

Hooker

Street,

Cali
now

Fay,

con-

_221

members

f
'
tbe New York and San Francisco
AU

Stock Exchanges.

The Commercial and Financial Chronicle...
Thursday, May 3, 1956

(2166)

★ INDICATES

Securities Now in
Abundant Uranium,

Inc., Grand Junction, Colo.

(letter of notification) 3,000,000 shares of com¬
mon
stock (par one cent).
Price—10 cents per share.
Proceeds—For mining expenses.
Office—319 Uranium
Feb. 23

Center, Grand Junction, Colo. Underwriter—Ralph
Davis & Co., Grand Junction, Colo.

if Adams Express Co.
May 2 filed 528,792 shares of common stock (par $1) to
be offered for subscription by common stockholders of
record on or about May 23, 1956 on the basis of one new
share for each five shares held; rights to expire on or
about June

Price—To be supplied by amend¬

6, 1956.

Proceeds—For investments and general corporate

ment.

Underwriters

purposes.

—

Hallgarten & Co. and R. W.

Pressprich & Co., both of New York.
Alexandria

Steel Fabricators,

American Frontier Corp.,

Inc.

C.
Memphis, Tenn.

other

stock (par
Price —$10 per share. Proceeds —Together with
funds, to purchase 1,000,000 shares of common

stock

(par $1) of American Frontier

Feb. 15 filed 175,000 shares of class A common

$1).

Lif^fjnsurance Co.

Underwriter—None.
American

—

Odess, Martin & Herzberg, Inc., Birmingham, Ala.

if American International Corp., New York
May 2 filed 375,100 shares of common stock (par $1) to
be offered for subscription by stockholders at the rate
of

share for each five shares held (with an over¬

one new

subscription privilege). Price—To be supplied by amend¬
ment. Proceeds—For investments and other corporate
purposes.

if American Mining & Smelting, lnc.,Spearfish,S.D.
April 27 (letter of notification) 300,000 shares of com¬
mon stock (par 10 cents).
Price—$1 per share. Proceeds
—For mining expenses.
Address—Spearfish, S. D. Un¬
derwriter—None.
• American
Shopping Centers, Inc. (5/14)
April 16 filed $2,000,000 of 5% convertible debentures
due May 1, 1968. Price—To be supplied by amendment.
Proceeds^—To repay certain obligations." Office — Min¬
neapolis, Minn. Underwriter—Carl M. Loeb, Rhoades &
Co., New York.

•

American

Shopping Centers, Inc. (5/14)
April 16, filed 200,000 shares of class A common stock
(par 10 cents) and 100,000 shares of class B common
stock (par 10 cents) to be offered in units of one class
A share and one-half class B

share.

Price—To be sup¬

plied by amendment. Proceeds — To discharge certain
obligations and for construction of new centers and
working capital. Office—Minneapolis, Minn. Underwriter
—Carl M. Loeb, Rhoades & Co., New York.
Anchor

Casualty Co., St. Paul, Minn.
20,000 shares of $1.75 cumulative con¬
vertible preferred stock (par $10) to be offered for sub¬
scription by common stockholders on the basis of two
preferred shares for each 11 common shares held (with
an
oversubscription privilege).
Price—$40 per share.

March

filed

Proceeds—To enable company to write a
larger volume
of insurance premiums. Underwriters—Harold E. Wood
& Co., St. Paul, Minn.,
Minneapolis, Minn.

and

Dain

Co.,

Inc.,

(C. R.) Co., Oklahoma City, Okla.
April 11 (letter of notification) 1,250 shares of class B
common stock
(par $100) to be offered to employees.
For

book

value

($218.50

per

share).

general

corporate purposes, including
Office—701 North
Broadway, Oklahoma

Proceeds—

expansion.

City, Okla. Un¬

derwriter—None.
Arizona

ciated

Oil

Pictures Corp., San Diego Corp.
the following basis: Four shares
common; 2.4 shares for one share of
Airfleets common; one share for each share of Albu¬
querque common; four shares for each 5.25 shares of
RKO common; 2.4 shares for each share of San Diego
common; 13 shares for each share of Wasatch cumulative
preferred; and 1.3 shares for each share of Wasatch
common.
The registration statement also covers 1,250,000 shares of 5% cumulative preferred stock (par $20)
which will become issuable upon and to the extent that

Public

Finance

Co.,

Phoenix,

RKO

shares of

writer—None, sales to be directly by the

company or

•alesman of the insurance firm.

Atlas

stock

common

preferred

are

convertible into

Stockholders will vote

stock.

shares of

merger

Statement effective April 20.

Atlas

Investment

Co.,

Las Vegas,

at $50 per share and 8,800 shares are to be offered in
exchange for preferred stock. Proceeds—For payment of
Underwriters—
Utah, and M. D.
Close Mortgage & Loan Co. and Jack Hemingway Invest¬
ment Co., of Las Vegas, Nev.
bank loans, and for capital and surplus.
Rex Laub and Max Laub, of Tremonton,

•

Big Dollar Food Stores, Inc.
April 9 (letter of notification) 25,000 shares of common
stock (par $1). Price—At market (about $2.50 to
$3 per
share). Proceeds — To selling stockholders. Office—42
East Post Road, White
Brothers & Co., Inc.,

Plains, N. Y. Underwriter—Baruch
New York.
No public offering

planned.

Big Horn Mountain Gold & Uranium Co.
(letter of notification) 9,300,000 shares of

Feb. 23
mon

stock

(par

Proceeds—To

one

cent).

Price—Three cents

per

com¬

share.

be used

for exploratory work on mining
Office—1424 Pearl Street, Boulder,

mineral properties.
Colo. Underwriter—Lamey &

Co., Boulder, Colo.

Birnaye Oil & Uranium Co., Denver, Colo.
April 6 (letter of notification) 1,000,000 shares of class
A common stock (par five
cents). Price — 10 cents per
share. Proceeds
For mining expenses. Office — 762
Denver Club Bldg., Denver, Colo. Underwriter—Birkenmayer & Co., Denver, Colo.
—

Blue Lizard
Jan.

filed

Mines, Inc.
$900,000 of 8%

convertible

subordinated

Price—100% of principal amount.
Proceeds—To make additional cash payment on purchase
contracted and for mining expenses. Office—Salt Lake
City, Utah. Underwriter—None.

if Blue Star Mining & Survey Corp., Colville, Wash.
April 18 (letter of notification) 130,000 shares of com¬
mon
stock
(par 15 cents). Price—25 cents per share.
Proceeds
For mining expenses.
Office
208 Collins
Building, Colville, Wash.- Underwriter—None.'
—

—

if Boston Fund, Inc., Boston, Mass.
26 filed
(by amendment)
1,000,000

April

stock

(par $1).
Proceeds—For investment.

Price

additional
At market.

—

For mining expenses.
Office—2660 South Williams St.,
Denver, Colo. Underwriter—None.

Grocers, Inc., Seattle, Wash.

April 20 filed 5,703 shares of common
stock; $2,000,000
of 25-year 5% registered convertible
debenture notes;
and $1,500,000 of 5% coupon bearer
bonds. Price
Of

Nov. 23 filed 37,000 shares of class A

Price—$38

tional

retail

Office—5301

per

stores.

share.

common

Proceeds—To

Business

—

stock (par

open

Supermarket

Northwest 37th Ave.,

Miami. Fla.

addi¬

concern.

Under¬

writer—None. Statement effective March 7.
California Oregon Power Co.
(5/8)
April 9 filed $16,000,000 first mortgage bonds due
May 1,
1986.
Proceeds—Together with funds from sale of $7,000,000 of preferred stock, to retire bank loans and for
capital expenditures. Underwriter
To be determined
—

by competitive bidding. Probable bidders: Halsey, Stu¬
art & Co. Inc.; Blyth &
Co., Inc., and The First Boston
Corp. (jointly); Lehman Brothers; White Weld & Co.;
Merrill Lynch, Pierce, Fenner & Beane and
Kidder, Peabody & Co. (jointly). Bids—To be received up to 8:30
a.m.

(PDT)

cisco 20,

May 8 at 464 California Street, San Fran¬

Calif.

due

—

subordinated

May 1, 1976.

Price—To be supplied by
Proceeds—For expansion program. Under¬
Hornblower & Weeks and Union Securities

Corp.
Cherokee

New York

Boston

Philadelphia

Pittsburgh

San Francisco

Private Wires

all

offices

Chicago

Cleveland

capital.

capital

Proceeds—For

Office—North

Tami-

Underwriter—Nqne.

Chemical Corp.,

Yazoo, Miss.
stock.

common

share). Proceeds—Together with

bank loans, to be used to construct
tilizer plant. Underwriter—None.

and

operate

fer¬

if Coffee Time Products of America, Inc.,
April 26 (letter of. notification) 68,000 shares of class A
common stock
(par $1). Price—$4 per share. Proceeds
—For advertising and promotion of Coffee Time in cur¬
markets

rent

and

Avenue, Boston
&

man

new

16,

markets."

Mass.

Office—25

Underwriter

—

Huntington

Fried¬

Co., Inc., New York, N. Y.

if Coleman Engineering Co., Inc.
April 27 filed 40,000 shares of 6% cumulative convertible
preferred stock. Price—At par ($12.50 per share). Pro¬
ceeds

$250,000 to retire short term bank borrowings;
$192,500 as additional working capital. Underwriters
—Wilson, Johnson & Higgins, San Francisco, Calif.;
Lester, Ryons & Co., Los Angeles, Calif.; Davis, Skaggs
& Co., San
Francisco, Calif.; and Jones, Cosgrove &
Miller, Pasadena, Calif.
—

and

Uranium, Inc.

(5/21)

Nov. 9 filed 2,500,000 shares of

stock

(par one
per share. Proceeds—For explora¬
tion and development expenses and for general
corporate
common

Price—40 cents

cent).

Office—Montrose, Colo.' Underwriters—Gen¬
Investing Corp., New York; Shaiman & Co., Denver,
Colo., and Honnold & Co., Oklahoma City, Okla.
purposes.

eral

^Colorado Resources, Inc., New York, N. Y.
(letter of notification) 150,000 shares of

April 27
mon

com¬

stock

(par 10 cents). Price—$2 per share. Proceeds
mining expenses. Office — 50 Broad St., New
York, N. Y. Underwriter—A. T. Geyer & Hunt, New
York, N. Y.

—For

if Colstone Restaurants, Inc., Boston, Mass.
6 (letter of notification) $250,000 of 6% subor¬
dinate debentures due June 1, 1961 in
exchange for out¬
standing shares of Colstone Foods, Inc. at a rate of $5.30
per share.
Office —18 Matthews Street, Boston, Mass.
Underwriter—None.

April

Columbia General Investment
Corp.
March 29 filed 100,000 shares of common stock (par
$1)
to be offered for subscription
by stockholders only. Price
—A

maximum

additional

General

$4.50

share.
including

Proceeds—To make

per

investments,

Life

Insurance

Co.

stock

Office

Columbia

Houston,

—

Tex.

Underwriter—None.

Commonwealth, Inc., Portland, Ore.
March 23

(letter of notification) 5,912 shares of 6% cu¬
preferred stock to be offered to shareholders

for

a period of 30 days and then to others.
Price—At par
($50 per share). Proceeds—For working capital. Office
—Equitable Bldg., 421 S. W. 6th Ave., Portland 4, Ore.

Underwriter—None.
Commonwealth Life Insurance Co., Tulsa, Okla.
March 28 filed 70,000 shares of common stock. Price—To
be supplied by amendment. Proceeds—For working

cap¬

ital, etc.

Underwriter—To be named.

Consolidated Edison Co. of N. Y., Inc. (5/22)
April 24 filed $30,000,000 of first and refunding mort¬
gage bonds, series L, due May 1, 1966.
Proceeds—To
repay short-term bank loans and for construction pro¬

Underwriter—To

be determined by competitive
Probable bidders: The First Boston Corp. and
Halsey, Stuart & Co. Inc. (jointly); Morgan Stanley &
gram.

Co.
on

Bids—Expected to be received
May 22.

Container

Uranium Mining Corp.
April 5 (letter of notification) $180,000 principal amount
of 6% convertible debentures
due April 15, 1966. Price

(EDT)

a.m.

(par $10)
being offered in exchange for common stock of The
Mengel Co. at the rate of one Container share for each
two

Mengel

when

shares.

Container's

The

offer

holdings

become

effective

Mengel stock has been
increased to at least 90% of the Mengel stock outstand¬
ing. Statement effective March 30.
Continental American

Fund, Inc.,

Jersey City, N. J.
March 30 filed 300,000 shares of capital stock
(par $1).
Price—At net asset value plus a premium of 5% of the

offering price.
—Continental

Proceeds—For investment.
American

Management

Underwriter

Co.,

Inc.,

Jersey

City, N. J\
Continental Equity Securities Corp.
March

28 filed 40,000 shares of class A common stock
(par $5) and 80,000 shares of class B common stock (par
cents). Price—Of class A stock, $12.50 per share, and

B stock, 50 cents
capital and surplus.

per

share.

Proceeds—To

in¬

Office—Alexandria, La. Un¬

derwriter—None.
•

Crampton Manufacturing Co. (5/16)
April 24 filed 137,814 shares of 6% cumulative converti¬
ble preferred stock (par $10), of which 125,009 shares
are
to be offered for subscription
by holders of 5%
convertible preferred stock and common stock on the
basis

one

new

preferred stock held and

for
one

each
new

Underwriter—Columbia Securities Co.,

change for the 5% preferred stock

city.

to 11

Corp. of America

—100% and accrued interest. Proceeds—For
mining ex¬
penses.
Office—608-610 Equitable Bldg., Denver, Colo.
same

March 9 filed 115,276 shares of common stock

crease

amendment.

writers

Coastal

430

share).

per

March 22 filed 399,986 shares of class A
Price—At par ($25 per

Of class

if Celotex Corp., Chicago, III. (5/16)
April 26 filed $10,000,000 of convertible
debentures

($100

par

ISSUE

bidding.

if Brown-Miller Enterprises Inc., Denver, Colo.
April 27 (letter of notification) 10,000 shares of common
capital stock. Price—At par ($5 per share). Proceeds—

$25).

REVISED

advertising and working
ami Trail, Sarasota, Fla.

mulative

debentures due 1976.

common

Price—At

Colohoma

Nev.

Jan. 9 filed 20,800 shares of class B common voting stock,
of which 12,000 shares are to be offered for public sale

B-Thrifty, Inc., Miami, Fla.

Ariz.

Sept. 16 filed 78,006,081 shares of common stock to be
offered for subscription
by holders of life insurance
policies issued by Public Life Insurance Co. Price—20
cents per share. Proceeds—For
working capital. Under¬

Associated

Co.,

one

shares of

-At Anthony

Price—At

Feb. 28 filed 9,890,095 shares of common stock (par $1)
to be issued pursuant to an agreement of merger with
this corporation of Airfleets, Inc., Albuquerque Asso¬

Development Co.

shares of common stock (par $1).
$2.50 per share. Proceeds — To expand service
business.
Office — Birmingham, Ala.
Underwriter —

Price

stock.

Corp.

May 24.

Insurors'

10 filed 400,000

Feb.

Atlas

ITEMS

if Circus Hall of Fame, Inc.
23 (letter of notification)

if Atlantic Oil Corp., Tulsa, Okla.
April 30 filed 2,000,000 shares of common stock (par $1).
Price—$1.50 per share. Proceeds—For working capital
and general corporate purposes.
Underwriter — To be
named by amendment.
•

April

Underwriter—None.

for

Office—Alexandria, Va. Underwriter—Seaboard Se¬

curities Corp., Washington, D.

stock, $50 per share; and of notes and bonds, 100% of
principal amount. Proceeds—To reduce bank, mortgage
loan, or other indebtedness; and for working capital.

and Wasatch Corp.

April 13 (letter of notification) $250,000 of lVz% deben¬
tures due 1966. Price—At par. Proceeds—For expansion,
etc.

Registration

ADDITIONS

SINCE
•

common

stock

held.

preferred stock

three

are

share for

The

to
on

remaining
be
a

each

offered

eight
12,805

ex¬

share-for-share

Number 5530

Volume 183

basis.

The Commercial and Financial Chronicle

...

Price

— $10
per share.
Proceeds — For working
Underwriter—Baker, Simonds & Co.,' Detroit,
Mich:^ Statement expected to become effective on or

Proceeds—For

capital.
-

aoout May

15.

Street,

'>4

★ Dixie Auto Insurance Co., Inc., Anniston, Ala.
April 12 (letter of notification) 100,000 shares of capital
stock (par $1).
Price—$2.50 per share. Proceeds—For
capital and surplus. Office—Commercial National Bank

Co., Denver, Colo.

ic Dalton Finance, Inc., Chevy Chase, Md.
April 26 (letter of notification) 300,000 shares of com¬
mon class A stock
(par 50 cents). Price—$1 per share.

Crater Lake

Mining & Milling Co., Inc.
March 8 (letter of notification) 575,000 shares of common
stock. Price—50 cents per share. Proceeds—For mining
expenses.
Office — 1902 East San Rafael, Colorado
Springs, Colo. Underwriter — Skyline Securities, Inc.,
Denver, Colo.

mining expenses. Office—1730 North 7th
Junction, Colo. Underwriter—Columbia

Grand

Securities

Proceeds—To expand Mt. Ranier

remainder

the

Center

4304

Whitney

•

start

Street, Chevy Chase, Md.
Underwriter
Co., Inc., Washington, D. C.

—

mon

stock (par 10

cents).

Price—$1

share.

per

com-

Proceeds

—For

machinery and equipment. Business—Construction of ports cruisers.
Office — 472 Fire Island Ave.,
Babylon, L. I., N. Y.
Underwriter—Lepow Securities

Corp., New York.

Cullen Minerals Corp.
^

•

March 30

:
•

(Texas)

(5/7)

(letter of notification) 300,000 shares of

com-

stock

mon

(par 10 cents). Price—$1 per share. Proceeds
and for expansion and working
Underwriter/— Lepow Securities Corp., New

—To repay bank loans,

capital.

•York.
-

Doctors

:
,

Oil City, Pa.
Nov. 28 (letter of notification) 46,000 shares of common
stock (par $1).
Price—$6.50 per share. Proceeds—Tc

stock

(par

Price—10

cent).

one

cents

share.

per

loans

bank

pay

debts; and for working
Bldg., Oil City, Pa.
Co., New York.

and

Feb.

Business—Manufacturer

Libaire,

Proceeds

—

(par 10
working
exploring,

For

acquiring,
—

Douglas

Corp.,

Fort Collins,

Colo.

March 26 (letter of
notification) 2,997,800 shares of com¬
stock

mon

(par

cent). Price — 10 cents per share.
Office—155 North Col¬
lege Ave., Fort Collins, Colo. ; Underwriter — Columbia
Securities Co., Denver 2, Colo.
one

Proceeds—For mining expenses.

aluminum awning
similar products.
Underwriter — Eisele & King,

Tampa, Fla.

share.

per

pay

casement windows, jalousies, and
—

—

gas properties; and to
off $13,590.80 liabilities. Underwriter
James C.
McKeever & Associates, Oklahoma City, Okla.

Under*

^ Dibbs Aluminum Products, Inc. (6/4-7)
April 27 filed $360,000 of 7% convertible subordinated
debentures due June 1, 1966 and 180,000 shares of com¬
mon
stock (par 10 cents) to be offered in units of $50
of debentures and 25 shares of stock.
Price—$100 per
unit. Proceeds—For additional equipment and working

Office

Price

capital, to be devoted mainly to
developing and operating oil and

writer—Grover O'Neill &

and

Underwriter—None.

Oil

Corp., Carrollton, Tex.
filed 500,000 shares of common stock

cents).

capital

Office—40 National Transit

capital.

* Dafmid Oil & Uranium, Inc., Grand Junction, Colo.
April 16 (letter of notification) 2,700,000 shares of com¬
mon

•

capital and surplus.

crease

Dennis Run Corp.,

Underwriter—None.

^Dixie Fire & Casualty Co., Greer, S. C.
April 12 (letter of notification) 11,000 shares of common
stock (par $10). Price—$26 per share. Proceeds—To in¬

subsidiary balance and
in Virginia.
Office—

office

Bldg., Anniston, Ala.

^ Crestmark Cruisers, Inc. (5/14)
April 25 (letter of notification) 300,030 shares of

>39

(2167)

Duke Power Co.

(5/7)

March 30 filed 367,478 shares of common stock
(no par)
to be offered for subscription
by common stockholders

St<j>ut & Co., New York.

of record

May 3, 1956 at the rate of one new share for
(with an oversubscription privilege);
on May 21, 1956.
Price—$25 per share.

each 25 shares held

HEW

rights to expire

CALEHDAR

ISSUE

Proceeds—For construction program.
N. C.

May 4

(Friday)

Sierra Pacific Power Co.

Colohoma

Preferred

(General

(Exchange offer—to be underwritten) $4,025,000

May 7

Corp.)

Jackson

Curtis)

Common
shares

1,156,250

Consol. Edison Co. of New York, Inc

Common

(Bids

Salt

Lake City, Utah.
Underwriter—Filosa
Co., Grand Junction, Colo.

(Tuesday)

May 22

$300,000

$1,000,000

Co.)

International Oil, Inc

Common

Shaiman

and

EDT)

a.m.

Bonds

$30,000,000

Mark
(Central

Nemaha

Oil
»

Co.,

Republic

(Bids 8:30 a.m. PDT) $16,000,000

(Gearhart & Ous, Inc.)

Aviation

Florida Public Utilities Co

$400,000

Corp

(Starkweather

25,000

139,523

Power

Iowa

(Bids

EDT)

noon

$4,620,000

Iowa Power

Niagara Mohawk Power Corp..
11

(Bids

EDT)

a.m.

Bonds

Co.,

Gas

debentures

(Offering

stockholders—no

Piedmont Natural Gas
(Offering
'•

•

underwriting)

stockholders—to

White,

447,797

Co., Inc

Weld & Co.)

underwritten

(Bids 11

EDT)

a.m.

(Bids

Bonds

•

Lewisohn

(George

(Eisele

100,000

June

—

Commonwealth

Debentures & Com.

Thyer Manufacturing Corp

Libaire,

King,

Common

Breen)

paper

and pulp.

Busi¬
Un¬

offered

record

each

for

subscription
on

by common
the basis of $100 of

May 22

common

stock held;
supplied by

June 6.

Price—To

expansion

program.

Un¬

—

(Thursday)

Copper Corp

„

Corp. for $1,000,000.

seller

Ekco Products Co. (5/14)
April 23 filed 50,000 shares of common stock (par $2.50).
Price—To be supplied by amendment. Proceeds—To a
private trust.
Underwriters
Lehman Brothers and

Common

$9,650,000

Dibbs Aluminum Products. Inc.— Debs. &

May 10

and

derwriter—Hornblower & Weeks, New York.

(Monday)

•£>

Adhesive

Proceeds—For

amendment.

—

Brothers)

for

rights to expire

$6,600,000

Corp

June

•

invited)

(Vickers

$4,500,000.

Cement

Republic

41,530

Savannah Electric & Power Co.__
•

debentures

.Equip. Trust Ctfs.

Reading Co.

Common

stockholders

Bonds

(Thursday)

May 24

.Common

* Eastern Stainless Steel Corp. (5/23)
May 1 filed $5,277,500 of 15-year convertible subordinate

snares

(Wednesday)"

May 9

Chemical

derwriter—White, Weld & Co., New York.

(Bids 8:30 a.m. PDT) $40,000,000

National Fuel Gas Co..

bleached kraft pulp mill at a cost of
$10,000,000,
acquire an 80% interest in the capital stock of

ness—Manufacturer

$7,500,000

2^,006

Ascot

Inc.)

Co.—*!*——————.Common

&r Light

California

Southern

Bonds

invited)

(Bids to oe invited)

$30,000,000

Evans

Light Co

(Bids

York, Chicago & St. Louis RR. Equip. Tr. Ctfs,

par

new

and

Common

Clement

and

Co.

Common

(Offering to stockholders—no underwriting)

Hornblower

Common

common

—At

Debentures

to stockholders—to be underwritten
& Weeks) $5,277,500

(Offering

International Metals Corp
National

stock held; rights to expire on May 15. Price
(flat). Proceeds—Together with funds from
sale of $10,000,000 of senior notes to institutional in¬
vestors, to repay outstanding indebtedness, to construct

Common

Stainless Steel Corp

Eastern

.—Bonds

Power

Express

(Offering to stockholders—to be underwritten by rtaltgarcen
& Co. and R. W. Pressprich & Co.) 528,792 shares

(Tuesday)

May 8
Oregon

Adams

15, 1981, being offered for sub¬

common stockholders of record May 1, 1956,
basis of $100 of debentures for each nine shares

the

(Wednesday)

May 23

....Common

Corp., Bangor, Me.
$4,090,200 of 4J/2 % convertible subordin¬

scription by

(Whitney-Phoenix Co., Inc.) $300,000

California

New

(Dominick & Dommick) 141,420 shares

Securities

filed

ated debentures due May

Common

(Clayton & Co.)

Common
25,000

Inc.)

Eastern

April

(Offering to stockholders—no underwriter) 367,478 shares

Inter-County Tel. & Tel. Co

Office—Charlotte,

Underwriter—None.

Durango Minerals & Oil Co.
April 23 (letter of notification) 3,000,000 shares of com¬
mon stock.
Price—At par (five cents per snare). Pro¬
ceeds—For mining expenses. Office—32
Exchange Place,

Common

Inc

Corp.

Webber,

(Paine,

——

Securities

(Lepow

Duke Power

Uranium,

Investing

White Eagle

(Monday)

Cullen Minerals Corp._

(Monday)

May 21

(Bids

Co.)

Com.

Shearson, Hammill & Co., both of New York.

$720,000

* Empire Studios, Inc., Orlando, Fla.
April 12 (letter of notification) 20,000 shares of common
(par 50 cents). Price—$2.50 per share. Proceeds
For motion picture production.
Office
101 North
Orange Avenue, Orlando, Fla. Underwriter—None.

(Tuesday)
Co

Edison
invited)

Stout

Bonds

$35,000,000

stock

$50,000,000

—

Brooks & Coi,

(P.

$765,000

Inc.)

June 6

(Monday)

May 14
American

•••■#?$*

American

Loeb, Rhoades & Co.)

Rhoades &

Loeb,

Co.)

Products

Debentures

Shearson,

First

Hammill & Co.

•

General

Electric

Co.)

$299,370

Co. Inc.)

Pennsylvania Electric Co

••*

...

•

(Bids

■

EDT)

a.m.

(Hornblower

Crampton

and

Securities

June

(Bids

invited)

July 11

•

■

Preferred

(Wednesday)

(Bids

EDT)

Northern Illinois Gas Co
(Bids

Tiarco

_.Bonds

—

CDT)

a.m.

$6,225,000

$15,000,000

Corp.

(Offering

Common

stockholders—to be underwritten
Plohn & Co.) 375,000 shares

by ;'*'*• '<

Charles

May 18
stockholders—to

Lane,

Monterey Oil

Space

•;*'»?•

be underwritten by
Co.) 159,561 shares

be invited)

September 11
Carolina Power

Common
Johnson,
<y.

Common
by-

Debentures

(Bids

to be

invited)

Lewis Corp.
(letter of notification) 60,000 shares of 7% preferred stock. Price—At par ($5
per share). Proceed*—
For working capital and general
corporate purposes.

$20,000,000

surance

stock

Bonds

are

selected group of licensed general in¬
agents in Georgia and South Carolina. Pricea

supplied by amendment.
of

First

Proceeds—To purchase
Georgia Fire & Casualty Co. (to be

formed) and for general corporate purposes. Underwriter

(Tuesday)
,

Debentures
$30,000,000

—

65,439 shares

(Monday)

(Bids to be Invited)

—

to be offered to

Bonds

Columbia Gas System, Inc

class A share for each five shares of common stock held
of record May 18, 1956. The remaining

(Tuesday)

(Bids to be invited) $10,000,000

October 2

Co., Inc.

Banking Co. of Georgia (5/18)]
19 filed 225,000 shares of class A common stock
(par $1), of which 159,561 shares are to be offered for
subscription by common stockholders on the basis of one

Bonds

Tampa Electric Co

Petroleums

First Railroad &

to be invited) $15,000,000

Virginia Electric & Power Co

compensation in connection

April

(Tuesday)

September 25

General brokerage business. Office
165
Broadway, New York, N. Y. Underwriter—Basic Indus¬
tries Corp., 31 State St., Boston, Mass.

$30,0G0,000

& Light Co

(Bids

October 1

stockholders—to/ be underwritten
Lehman Brothers) 225,810 shares

(Offering

•

(Friday)

First Railroad & Banking Co. of Ga
(Offering

"ptfs

five

St.,
Century Pioneer

Business

(Wednesday)

Consolidated Natural Gas Co

—Equip. Trust
(Bids noon

•

..Bonds

Baker, Simonds & Co.) $1,378,140

Erie RR.

each

First

$18,000,000

to be Invited) $20,000,000

July 25

for

Corp.; Ltd. and Rickey
Ltd., both of Toronto, Canada.

Securities

$10,000j(jbo

Corp.)

Manufacturing Co.—

and for expansion of such program. Office—80 Wall
York City.
Underwriter — 20th

Florida Power Corp
(Bids

new

New

(Monday)

(Offering to stockholders—to be underwritten by

•

...Preferred
be

may

one

* First Hellenic American TV Hour, Inc.
April 18 (letter of notification) 100,000 shares of com¬
mon stock (par $1)J
Price—$2 per share. Proceeds—For
working capital and will be used to pay operating expenses of the present weekly telecast over Station WATV

100,000 shares

vBoston Edison Co

remaining 285,714 shares art to be is¬

offering. Price—$1.75 per share. Proceeds—
explore, develop and exploit the TL Shaft area. Un¬

& Mines,

..Common

Rhoades & Co.)

rate

The

derwriters—Alator

Bonds

$10,000,000

(Wednesday)

the

March

Debentures

Union

invited)

—

Weeks

sued to the underwriters

with

stockholders—to be underwritten by William
Co.; The First Boston Corp. and Carl M. Loeb,

Preferred

-May 16 I Wednesday)

Corp.

Drexel

•

Celotex

$9,000,000
..

York

New

250,000 istfarfes

$12,500,000

underwritten

States Life Insurance Co. of

(Offering
Blair

__^_Bonds

EDT)

11 a.m.

June 20

$300,000/000

Pennsylvania Electric Co.—7——
.

United

—-Common

(Bids

1956

shares held.

Debentures

—

(Lehman Brothers and A. G. Becker &

(Thursday)

stockholders—to

(Bids

(Morgan Stanley & Co. and Goldman, Sachs & Co;)

Murphy Corp.

Common

Indianapolis Power & Light Co.—

Preferred & Commop

(Talmage

Eureka Corp., Ltd., New York
April 30 filed 2,276,924 shares of common stock (par 25
cents-Canadian), of which 1,991,210 shares are to be
offered for subscription bv stockholders of record
May

Co.; Merrill Lynch, Pierce, Fenner & Beane;
and Smith, Barney & Co.) 202,800 shares

(Tuesday)

Dubl-Check Corp

underwritten

Pennsylvania Banking & Trust Co.—Common

(Offering

•

74 ^

50,000 shares

May 15

1,105,545

18,
7

June

—Common

Co.)

(Offering to stockholders—bids to be invited) 232,520 shares

Common

(Lehman Brothers and

Delaware Power & Light Co

(Lepow securities corp.) $300,U00

Ekco

.Common

Inc

stockholders—to

Eberstadt

$2,000,000

Crestmark Cruisers, Inc

Airways,

(Offering

200,000 units

Shopping Centers, Inc.—

(Carl

Braniff

Commoit

Shopping Centers, Inc

(Carl M.

(Wednesday)

—Johnson, Lane, Space & Co., Inc., Savannah, Ga., for
159,561 shares.

Continued

page

The Commercial and Financial Chronicle...

(2168)

Continued from page
i

price—$io

per

production of oil and gas as a joint venture. Office—
Fort Worth, Tex.
Underwriters — William D. McCabe
and E. S. Emerson, South Texas Bldg., San Antonio, Tex.

shares of common stock (par $1)..

■

Proceeds—To expand company's

share.

Office—Fort

Lauderdale, Fla.

public sale in minimum units of $15,000.
various property and explor¬
atory well costs and expenses. Business—George P. Hill
and Houston Hill are engaged in exploration for and

C. Dean,

Florida

Towers

Corp.,

Clermont, Fla.

April 30 (letter of notification) $50,000 of 6% first mort¬
gage notes.
Price—At par (in multiples of $500 each).
Proceeds
To
complete construction of commercial
—

International, Inc.
June 30 filed 300,000 shares of common stock (par 10#),
cf which 250,000 shares of for account of company and
60,000 shares of five selling stockholders. Price—$3 per
ahare.
Proceeds—For working capital; for exploitation
of "Totosave" system; and for marketing of "TropicRay" infra-red space heater. Office — Pittsburgh, P*.
; Underwriter—Barrett Herrick & Co., Inc., New York.
Fort Pitt Packaging

Calif.

and Oil, Inc.
Jan. 4 (letter of notification) 1,200,000 shares of comraon stock (par five cents).
Price — 25 cents per share..,
Proceeds—For expenses incident to mining operations.
Office—Kemmerer, Wyo. Underwriter—Philip Gordon
& Co., Inc., New York 6, N. Y.
Gas Hills Mining

„

•

American

General

Transportation

Corp.

April 6 filed $23,810,700 of 4% convertible subordinated
.

debentures, due May 1, 1981, being offered for subscrip¬
tion by common stockholders of record April 25 on the
basis of $100 of debentures for each 10 shares of stock
held; rights to expire on May 9.
Price—100% (flat).
Proceeds
For working capital.
Underwriter — Kuhn,
—

& Co., New York.

Loeb

Seneral Electric Co.

•

Corp., Inc., Montgomery, Ala.

Hydro-Loc, Inc., Seattle, Wash.
Oct. 25 (letter of notification) 1,674 shares of capital
itock.

Wash.

Corp.
March 29 filed $50,854,200 of convertible debentures due

-May 1, 1971 being offered for subscription by common
stockholders of record April 18, 1956, on the basis of
$100 of debentures for each 23 shares of common stock
held; rights to expire on May 7,, 1956. Price—100% of
principal amount. Proceeds—To purchase securities of
subsidiaries and for general corporate purposes.

Under¬

writers—Paine, Webber, Jackson & Curtis and Stone &
Webster Securities Corp., both of New York; and Mitchum, Jones & Templeton, Los Angeles, Calif.
Uranium Corp.

(N. J.), New York

filed

400,000 shares of common stock (par 10
cents). Price—$1 per share. Proceeds—For plant facil¬
ities, survey of property and underground development.
Maurice Schack. Middletown, N. Y.,
Statement effective March 11.

Underwriter—None.
is President.

it Gibraltar Uranium Corp., Aurora, Colo.
April 24 (letter of notification) 1,000,000 shares of
«

•

com-

stock

—

Golden

Dawn

Uranium Corp.,

Buena Vista, Colo.
Dec. 27 (letter of notification) 3,000,000 shares of capital
stock (par five cents). Price—10 cents per share. Pro¬
ceeds — For mining expenses. Underwriter — Bel-Air
Securities Co., Provo, Utah.
/

if Greenbelt Consumer Services, Inc.
April 18 (letter of notification) 4,000 shares of class A
stock, 9,500 shares of class B stock and $15,000 of 5%
three-year promissory notes. Price—For stocks, $10 per
share.

Proceeds—To

center

„

and

Branch

Md.

;

the

store.

purchase equipment

balance

Office—133

for

equipment

Greenbelt
the

Piney
Centerway Road, Greenbelt,

Underwriter—None.

* Greenwood Corp., Washington, D. C.
April 19 (letter of notification) 5,000 shares of common
stock.
Price —At par ($10 per share).
Office
7821
Morningside Drive, N. W., Washington, D. C. Under¬
writer—None.

Griggs Equipment, Inc., Dallas, Texas April 12 filed 400,000 shares of common stock (par 50£).
Price
$5.75 per share. Proceeds
For purchase of
Griggs Equipment Co. capital stock for $1,924,565, and
—

for

—

working capital.

ment.

Business — Public seating equip¬
Underwriter —Southwestern Securities
Co.. Dal¬

las, Texas.
Guaranty Income Life Insurance Co.
30 (letter of
notification) 24,000 shares of capital
ttock (par $5) to be offered first to
stockholders; then
policyholders and the public. Price—$10 per share. Pro¬
ceeds—For working capital. Address—P.
O. Box 2231,
Baton Rouge, La. Underwriter—None.

Dec.

Hard Rock

Mining Co., Pittsburgh, Pa.
(letter of notification) 1,000,000 shares of com¬
mon stock (par one cent).
Price—Five cents per share.
Proceeds—To purchase
machinery and equipment and
for working capital. .Office —377 McKee
Place, Pitts¬
Feb. 20

burgh, Pa. Underwriter—Graham
* Harrison

(D.

& Co.,

Pittsburgh, Pa.

L.)

Corp., Dallas, Texas
April 18 (letter of notification) 100,000 shares of
mon stock (par 10 cents).
Price—$2.50 per share

Power & Light Co.

(5/23)

Underwriter-^-To be
bidding. Probable bidders:

gram.

First

Boston

(letter of notification) 120,000 shares of com¬
mon stock (par 10 cents).
Price—$1.50 per share. Pro¬
ceeds—For exploration and development expenses. Un¬
derwriter
Fenner Corp. (formerly Fenner-Streitman
& Co.), New York,'
"
—

Ideal-Aerosmith, Inc., Hawthorne, Calif.
Dec. 16 (letter of notification) 150,000 shares of capital
stock (par $1).
Price — $2 per share. Proceeds — For
equipment, machinery, inventory, etc. Office—12909 So.
Cerise Ave., Hawthorne, Calif. Underwriter—Samuel B.
Franklin & Co., Los Angeles, Calif.

if Income Fund of Boston, Inc., Boston, Mass.
filed

shares of

(by

common

amendment) an additional 300,000
(par $1). Price — At market.

stock

Proceeds—For investment.

Pro¬

New York.

Corp., New York,

Kassel Base
Feb.

Metals, Inc.
(letter of notification)

120,000 shares of capital
10 cents), of which 20,000 shares are
being
sold by Burt Hamilton Co, and
100,000 shares
stock

(par

by Kassel
Price—$2.25 per share.
Proceeds—For min¬
ing expenses.
Office—1019 Adolphus Tower
Bldg., Dal¬
las, Texas.
Underwriter—First Western Corp.,
company.

Denver,

Colorado.

if Keystone Custodian Funds,
Inc., Boston, Mass.
April 26 filed (by amendment) 750,000 additional
shares
of Keystone Custodian Fund
certificates of participation,
series K-l.

Price—At market.

Proceeds

—

For invest¬

ment.
•

Lester

Engineering Co., Cleveland, Ohio
(letter of notification) 37,500 shares of common
$1) to be offered for subscription by common
stockholders of record March
1, 1956 on the basis of one

Feb. 24

Corp., Wilmington, Del.
April 3 (letter of notification) 150,000 shares of common
stock (par $1). Price — $2 per share. Proceeds — For
working capital.
Office—100 West Tenth St., Wilming¬

stock (par

ton, Del.
Underwriter
Hoboken, N. J.

ployees.

Dynamics

—

World

Wide

Investors

Corp.,

Industrial Minerals Development Corp.
March 7 (letter of notification) J,000,000 shares of com¬
mon stock. Price—Five cents per share.
Proceeds—For

development and working capital. Office—Moab, Utah.
Underwriter—I. J. Schenin Co., New York.
Installment Finance Co., Champaign, III.
April 9 (letter of notification) $100,000 of 5M>% senior
subordinated debentures and $50,000 of 6^%
junior
subordinated debentures. Price—At par (in denomina¬
tions of $1,000 each). Proceeds—For additional
operating
funds, expansion of business and to transfer short term
indebtedness to long term.
Office—74 East University
Ave., Champaign, 111. Underwriter—Hurd, Clegg & Co.,
Champaign, 111.
Insulated Circuits,

Inc., Belleville, N. J.

Nov. 10 filed 100,000 shares of 6% convertible preferred
stock (cumulative if and to the extent earned). Price—
At par ($5 per share). Proceeds—For general corporate
purposes. Underwriter—Alexander Watt & Co., Inc., has
withdrawn as underwriter; new one to be named.

Inter-County Tel. & Tel. Co. (5/7-11)
April 16 filed 25,000 shares of common stock (no par).
Price—To be supplied by amendment. Proceeds—To re¬
pay bank loans and for construction program.
Office—
Fort Myers, Fla. Underwriter — Central Republic Co.,
Inc., Chicago, 111.
N
International

Atomic

Devices

Corp.

Feb. 21

(letter of notification) 59,900 shares of common
(par $2). Price — $5 per share. Proceeds — For
working capital and general corporate purposes. Busi¬
stock

ness—Manufacture of Educational Atomic Kits.
18

North

Office—

Willow

St., Trenton 8, N. J. Underwriter—
Louis R. Dreyling & Co., Jamesburg, N. J.
International Basic Metals,
Jan. 27
mon

new

share for each 4^ shares held. Of
the unsubscribed
up to 7,500 shares are to be offered to em¬

portion,

Price—$8

corporate

Inc.
(letter of notification) 1,000,000 shares of com¬
(par 10 cents). Price — 25 cents per share.

stock

Proceeds—For mining expenses. Office—155 West South
com¬

Jurassic Minerals, Inc.,
Cortez, Colo.
Aug. 26 (letter of notification) 2,855,000 shares of non¬
assessable common stock (par one
cent). Price—10 cents
per share.
Proceeds—For expenses incident to
mining
activities. Office
326 West Montezuma
St., Cortez,
Colo. Underwriter
Bay Securities
—

March 7

April

Corp.,

New York.

—

Idaho-Alta Metals Corp.

Industrial

(par one cent). Price—15 cents per share.
Proceeds
For mining expenses.
Office — 710 Moline,
Aurora, Colo. Underwriter—None.
mon

Iowa

—

General Telephone

—

working capital.

Underwriter — Morgan Stanley & Co.
Goldman, Sachs & Co., both of New York,

determined by competitive
Halsey, Stuart & Co. Inc.;
Corp.; Equitable Securities Corp.;
Kidder, Peabody & Co.; White, Weld & Co.; Union Se¬
Honey Dew Food Markets, Inc.
curities Corp. and Blair & Co.
March 12 (letter of notification) 200,000 shares of com¬
Incorporated (jointly);
mon stock (par 10 cents).
Price—$1.50 per share; Pro- r Blyth & Co., Inc.; Lehman Brothers; Kuhn, Loeb & Co.
ceeds—To open or acquire additional super markets and
Bids—Expected to be received on May 23.
for working capital. Office—811 Grange Road, Teaneck, ' • Iowa Power &
Light Co. (5/23)
N. J.
Underwriter—Brown, Barton & Engel, Newark,
April 25 filed 249,558 shares of common stock (par
$10)
N. J.
of which 226,871 shares are to be
offered for subscrip¬
tion by common stockholders on the
basis of one new
Honolulu Oil Corp.
share for each eight shares held as of
record May 23,
April 30 filed $3,275,000 of Interests in the company's
1956; rights to expire on June 7. The balance of
Incentive and Stock Ownership Plan fbr its Employees,
22,687
shares represent stock which
may be acquired in stabi¬
together with 50,000 shares of common stock (par $10)
lizing transactions. Proceeds—To retire bank loans and
which may be acquired under the Plan.
for construction
program.
Underwriter—To be deter¬
if Huse-Liberty Mica Co., Boston, Mass.
mined by competitive
bidding. Probable bidders may
April 17 (letter of notification) 1,500 shares of common
include Smith,
Barney & Co., New York.
stock (par $5).
Price—At market (estimated at $16.67
"Isras" Israel-Rassco
Investment Co., Ltd.
per share).
Proceeds—To a selling stockholder for fur¬
Sept. 28 filed 9,000 ordinary shares. Price—At
par (106
ther investment in the Trust.
Office
171
Camden
Israel pounds each, or about
$55 in U. S. funds), payable
Street, Boston, Mass. Underwriter—F. L. Putnam & Co.,
in State of Israel
Independence Issue Bonds only. Offiee
Inc., Boston 10, Mass.
—Tel Aviv, Israel.
Underwriter
Rassco Israel

and

General

DeKalb Ave., Brooklyn

April 25 filed $7,500,000 first mortgage bonds due 1986.
Proceeds—To repay bank loans and for construction
pro¬

The

Price—At par ($100 per share). Proceeds—For
working capital, etc. Office—603 Central Bldg., Seattle
4, Wash. Underwriter—Pacific Brokerage Co. of Seattle.

Jan.

369-375

—

(5/15)

filed $300,000,000 of sinking fund debentures
due 1976. Price—To be supplied by amendment. Proceeds
—To retire bank loans and for capital expenditures and
April

—

Proceeds—For investment.

writer—None.

Office

Underwriter—Kamen & Co.. New York.

if Investment Co. of America, Los Angeies, Calif.
April 25 filed
(by amendment) 2,000,000 additional
common stock (par $1).
Price
At market.

filed

shares of

125,000 shares of common stock (par $1).
Price—$5 per share. Proceeds — To expand operations
of subsidiary and increase investment therein. Under¬

April

|...

Hometrust

Jan.

Inc., New York.

equip¬

ment, etc.

Calif.
April 13 (letter of notification) 250,000 shares of capital
stock. Price—At par ($1 per share). Proceeds—For min¬
ing expenses. Address — P. O. Box 308, Winterhaven,
Calif. Underwriter—Arthur B. Hogan, Inc., Hollywood,

writer—None.

Frigikar Corp., Dallas, Tex.
18 filed 104,500 shares of common stock (par 50
cents). Price—To be supplied by amendment. Proceeds
—To selling stockholders.
Underwriters—Southwestern
Securities Co., Dallas, Tex., and Muir Investment Corp.,
San Antonio, Tex.

writer—Gearhart & Otis,

Holden Mining Co., Winterhaven,

building, for improvements and working capital. Under¬

International Plastic Industries Corp.
Oct. 12 (letter of notification) 150,000 shares of common
stock (par 10 cents).
Price—$2 per share. Proceeds—
For advances to Arliss Co., Inc. for
purchase of

Hill & Hill 1956 Oil Exploration Capital Fund
13 filed $450,000 of participations in this Fund

March

filed

uct.

to be offered for

Underwriter—

President of company.
'

International

Metals Corp. (5/8)
400,000 shares of common stock (par 16
cents). Price—$1 per share. Proceeds—To finance ex-'
ploration and development of mining properties of Recursos
Mineros Mexicanos, S. A., Mexican
subsidiary,
and to discharge note.
Office — Houston, Tex. Under¬

—

capital.

Offering will be made through James

None.

•

For equipment, raw materials and working
Underwriter—Garrett & Co., Dallas, Texas.

Proceeds—For payment of

Sun Life Insurance Co.

Florida

March 16 filed 32,000
business.

ceeds

Thursday, May 3, 1956

Temple St., Salt Lake City, Utah. Underwriter—Melvin
G. Flegal & Co., Salt Lake City, Utah.

purposes.

land, Ohio.

per

share.

Proceeds

Office—2711

—

Church

For

Lewisohn Copper Corp. (5/10)
March 30 filed 100,000 shares of common

improvements,
F.

Cleve¬

stock (par 10

cents). Price—To be supplied by amendment.
—For exploration and evaluation of
leasehold
purposes.

general

Ave.,

Underwriter—None.

equipment

Office—Tucson,

and

Ariz.

Breen, New York.

for

Proceeds

properties,

general

corporate

Underwriter—George

Long Island Lighting Co.
April 5 filed 120,000 shares of cumulative preferred
stock,
series G (par $100).
Price—To be supplied by amend¬
ment.

Blyth

Proceeds—To repay bank loans.

Co.,

Inc.,

The First

Boston

L&Sgley & Co., all of New York.

Underwriters—
Corp. and W. C.

Offer£ug*~-Postpone<J

because of present unsatisfactory market
conditions.
Lost Canyon Uranium & OH Co.
Oct.

(letter of notification) 3,000,000 shares of non¬
(par one cent). Price—10 cent!
per share.
Proceeds—For expenses incident to
mining
operations. Office — Simms Bldg.,
Albuquerque, N. M.
Underwriter—Mid-America Securities Inc. of
Utah, Sail
Lake City, Utah.
assessable capital stock

if Lumberman's Investment & Mortgage Co.
May 2 filed 50,000 shares of common stock
(par $10).
Price—$12 per share. Proceeds—For working
capital and
general

corporate purposes.
Underwriter—None.
M.

Office

—

Denver,

Colo.

Display Mfg. Corp., Alhambra, Calif.
April 20 filed 100,000 shares of common stock
(par $1).
Price—To be supplied by amendment.
Proceeds
For
plant construction; machinery and
equipment; to retire
existing indebtedness; and for other corporate
—

Underwriters

purposes.

Bateman, Eichler & Co., Los
Angeles,
Calif; and Dempsey-Tegeler & Co., St.
Louis, Mo.
• Manati
Sugar Co.
March

—

filed

$2,184,300 of 6% collaterial trust bonds
being offered in exchange for
presently out¬
standing 4% bonds maturing Feb. 1, 1957 on a
due

1965

par

basis.

par-for-

Unexchanged bonds

may

sold

by "com-

Volume 183

Number 5530... The Commercial and Financial Chronicle■>

at approximately the principal amount thereof
plus
interest.
The
offer
will
expire on May
10.
Proceeds—To retire old bonds.
pany

Underwriter—

None.

Manufacturers Cutter Corp.
(letter of notification) 300,000 shares of class A

National Fuel Gas Co.

stock. Price—At par

($1 per share). Proceeds—
repay loans, and for new equipment and
working
capital. Business—Cutting tools. Office—275 Jefferson
St., Newark, N. J. Underwriter—Paul C. Ferguson & Co.,
same city.

May 8, 1956, on the basis of one new share for
each 10 shares held (with an oversubscription
privilege);
rights to expire on May 25. Price — $17.75 per share.
Proceeds—To be used to purchase common stock, or for
loans to the operating subsidiaries; and for other cor¬

Manville Oil & Uranium
Co-, Inc., Douglas, Wyo.
Feb. 21 (letter of
notification) 300,000 shares of common
stock (par 10 cents).
Price-—50 cents

porate purposes.

ceeds—For

stock

of record

per

mining
St., Douglas, Wyo.
Co., Denver, Colo.

expenses.

Office—308

share.
East

—

For

Proceeds

—

National

Metallizing Corp.
March 5 (letter of notification) 24,000 shares of Class A
stock (par $1) and 40,000 shares of Class B stock (par
$1) to be offered for subscription by Class A and Class

For

B stockholders of record Feb. 1,

purposes.
Busi¬
ness—Manufacture and sale of water well supplies and
water systems; tubing and
forged steel unions and fit¬

tings.

1956 on a l-for-4 basis.
share. Proceeds—For vacuum metallizing,
conditioning, slitting and inspection machinery. Office—
1145-19th St., N. W., Washington, D. C.
Underwriter—
Price—$2

Underwriter—Dominick & Dominick, New York.

March 23

(letter of notification) 120,000 shares of com¬
(par 50 cents). Price—-$2.50 per share. Proceeds
—Expenses for expansion of vending machine opera¬

National Old Line Insurance Co.

stock

mon

tions.

Office—107

writers

—

French &
Mesa

Nov.

15 filed 50,000 shares of class A common stock
(par $2) and 50,000 shares of class B common stock
(par $2). Price—To be supplied by amendment. Pro¬
ceeds
To selling stockholders. Office — Little Rock,
Ark.
Underwriter—Equitable Securities Corp., Nash¬
ville, Tenn., and New York, N. Y. Offering—Indefinitely

South

Willow, Tampa, Fla. Under¬
& Co., Tampa, Fla., and
Crawford, Inc., Atlanta, Ga.
Louis

McClure

—

Oil

& Gas Ventures, Inc.
(letter of notification) 900,000 shares of com¬
(par one cent). Price —15 cents per share.
Proceeds-—For expenses incident to oil and gas

March 29

postponed.

stock

mon

•

proper¬

ties.

Midland General
Hospital, Inc., Bronx, N. Y.
Jan. 12 filed 24,120 shares of common stock

(no par)
30,000 shares of $6 dividend preferred stock (no
par). The company does not intend presently to sell
more stock than is
required to raise, at most, $2,700,000.
Price
$100 per share. Proceeds
For construction,
—

Niagara Mohawk Power Corp.

Co. and Union Securities Corp.
& Co.; The First Boston Corp.

ited partnership interests in the venture to be sold in
..•minimum units of $25,000.
Proceeds—For expenses in¬
cidental to oil exploration
program.
Underwriter—Min¬
eral

Projects Co., Ltd.,

to 11

New

"best efforts basis."

shares.

Price—$40

per

unit.

Proceeds

—

For pur¬

machinery and equipment. Office—New Albany,
Underwriter—Lewis & Co., Jackson, Miss.

Cincinnati, Ohio
notification) 3,000 shares of 8%
f cumulative convertible preferred stock (par $50) and
23

(letter

3,000 shares of
units of
*

Nicholson

Jan.

^ Mohawk Silica Co.,

-March

one

stock (no par) to be offered in
share of preferred and one share of common.

Price-—$60 per unit.
Proceeds
For mining expenses
;and processing silica. Office—2508 Auburn Ave., Cincin¬
nati, Ohio. Underwriter—None.
i Monterey Oil Co., Los
Angeles, Calif. (5/18)
April 25 filed 225,810 shares of common stock (par $1)
—

to '

offered

common

stockholders

record

May 18, 1956, at the rate of one new share for each seven
shares held; offering to extend for a
period of approxi¬
mately two weeks. Price—To be supplied by amendment.
Proceeds—To carry on a program of offshore oil explo¬
ration
nia

with

The

coastline.

York.

Texas Co. along the southern Califor¬
Underwriter — Lehman Brother^, New

(jointly); Morgan Stanley
Bids—To be received up

May 8 at Room 232

—

120 Broadway,

(W. H.)

filed

& Co., Wilkes-Barre, Pa.,

•

Mormon Trail Mining Corp., Salt Lake
City, Utah •
(letter of notification) 3,000,000 shares of capital

stock

(par one cent). Price—10 cents per share. Pro¬
ceeds—For mining expenses. Office—223
Phillips Petrol¬

Bldg., Salt Lake City, Utah. Underwriter—Frontier
Investment, Inc., Las Vegas, Nev.
eum

Mountain Top Mining & Milling
Co., Denver, Colo.

March 20 (letter of notification)
6,000,000 shares of common stock (par one
cent). Price—Five cents per share.
Proceeds—For mining expenses.
Office—406 C. A. John¬

Bldg., Denver, Colo. Underwriter—Columbia Secu¬
rities Co., Denver 2, Colo.

son

Murphy Corp., El Dorado, Ark. (5/15-16)
April 25 filed 250,000 shares of common stock (par $1).
Price—To be supplied by amendment. Proceeds
For
retirement of $112,000 of 3% unsecured debenture
bonds;
$600,000 for investment in a proposed bromine project;
—

and

for

other

corporate purposes. Business—Crude oil
and natural gas; also
liquified petroleum products. Un¬
derwriters—Lehman Brothers, New
York; and A. G.
Becker

Co.

Inc., Chicago, 111.

Mutual Investors Corp. of New York
March 21 (letter of

notification) 295,000 shares of

mon

stock

...

20,000 shares of

is President.

common

stock

(par $5).

North Star Uranium, Inc., Spokane, Wash.
March 15 (letter of notification) 1,500,000 shares of com¬
mon
stock (par 10 cents).
Price—15 cents per share.
Proceeds—For

mining expenses. Office—W. 408 Indiana
Avenue, Spokane, Wash.
Underwriter—Pennaluna &
Co., Spokane, Wash.
Northern

Illinois

Gas

Co.

(5/16)

April 18 filed $15,000,000 of first mortgage bonds due
April 1, 1981. Proceeds—For new construction and gen¬
eral corporate purposes. Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Glore, Forgan & Co.; The First Boston Corp.;
Blyth & Co., Inc. Bids — Expected to be received up to
10

a.m.

(CDT)

May 16.

York, N. Y.
York.

Underwriter—Stuart Securities Corp., New

Nucleonics, Chemistry & Electronics Shares, Inc.
17 filed 400,000 shares of capital stock (par $1).
by amendment (expected at $10
per share). Proceeds — For investment. Office—Englewood, N. J. Underwriter — Lee Higginson Corp.. New
York. Name Changed—From Atomic, Chemical & Elec¬
tronic Shares, Inc. Offering—Not expected until the lat¬
Price—To be supplied

ter part of June.

Oak Mineral

& Oil

Corp., Farmington, N. M.

Nov. 8 (letter of notification) 2,000,000

shares of common
(par five cents).. Price—15 cents per share. Pro¬
ceeds—For exploration and development and other gen¬
stock

eral corporate purposes.

Co.,

New

Underwriter—Philip Gordon &

York.

held

(with

oversubscription privilege);
rights to expire May 22, 1956. Price—To be
supplied by
an

100

stock

common

held

being

common,

nine

and

stock for each 40 shares of

new

preferred

This offer will not be made to holders of the

6,492,164 shares of

stock issued for the acquisi¬
properties under an offer of June
28, 1955. The warrants will expire on Dec. 31, 1957.
Price—At par ($5 per share). Proceeds—For working
capital and general corporate purposes. Underwriter—
tion

the

common

Sinclair

Statement effective March 27.

Pennsylvania Electric Co.
April

(5/15)

filed

$25,000,000 of first mortgage bonds due
$12,500,000).
Proceeds—To redeem $12,500,000 of 4V8% first mortgage
bonds due 1983 and to repay bank loans. Underwriter—
To be determined by competitive bidding. Probable bid¬
ders: Halsey, Stuart & Co. Inc.; The First Boston Corp.;
Kuhn, Loeb & Co.; Kidder, Peabody & Co.; Equitable
Securities Corp.; Harriman Ripley & Co. Bids—Expected
to be received up to 11 a.m. (EDT) on May 15.
*
1986 (reduced on April 19 by amendment to

Pennsylvania Electric Co.
April

filed

90,000

(5/15)

cumulative

preferred

stock, series G

(par $100). Proceeds — To repay bank
loans and for construction program. Underwriter—To be
determined by competitive bidding.
Probable bidders:

Kuhn, Loeb & Co.; W. C. Langley & Co. and Glore, For¬
gan & Co. (jointly); Kidder, Peabody & Co.; The First
Boston Corp.; Smith, Barney & Co.; Harriman Ripley &
Co. Inc. Bids
Expected to be received up to 11 a.m.
(EDT) on May 15.
—

it Pennsylvania Life Insurance Co.
April 23 (letter of notification) $300,000 of 6% certifi¬
contribution

surplus

issued

nominations to $1,000 and multiples thereof.
For

surplus.

de¬

Proceeds—•

Office—1616 Walnut Street, Philadelphia,

Underwriter—None.

Pa.

Petroleum

Equipment Service & Maintenance Co.

March 23 (letter of
stock

common

notification) 35,000 shares of class B

(par

Price—$3.25

cents).

per

share.

inventory, equipment and working cap¬
ital. Office—Allentown, Pa. Underwriter — Osborne &
Thurlow, New York, N. Y., for 20,000 shares.
*
Piedmont

Natural

Gas

Co., Inc. (5/9)
April 12 filed 41,530 shares of common stock (par $1)
to be offered for subscription by common stockholders
at the rate of

one

share for each ten shares held

new

of about

May 9; rights to expire on May 23. Price—To
be supplied by amendment.
Proceeds — Together with
funds from private sale of $2,000,000 of first mortgage
bonds, for construction program.
Underwriter—White,
Weld & Co., New York.
Pinellas

Feb.

Industries, Inc., St. Petersburg, Fla.

(letter of notification) .8,000 shares of class A
stock

common

(par $1). Price—At the market (maxi¬
Proceeds—For working capital. Office—34th

$6).

St. & 22nd

Ave.; North, St. Petersburg, Fla. Underwriter

—Eisele & King, Libaire, Stout & Co., New York.

^ Plastic Molded Arts Corp.
April 20 (letter of notification) 15,000 shares of com¬
mon stock
(par 25 cents) to be issued upon exercise of
Avarrants.
Price—$3 per share. Proceeds—For working

capital.
N. Y.

par) to

oversubscription privilege).

Price — To be supplied by
amendment. Proceeds
To purchase life insurance in
force and assets from other life insurance companies.
Subscription Agent — Old Southern Trust Co., Houston,

City,

Power-Freeze, Inc., Atlanta, Ga.
shares of common
Proceeds—To re¬
duce
outstanding obligations and for inventory and
working capital. Underwriter—Franklin Securities Co.,
Atlanta, Ga.

March 28 (letter of notification) 3,300
stock (no par). Price—$15 per share.

Prudential

Federal

Uranium

Corp.

March 21 (letter of notification) 6,000,000 shares of com¬
stock (par two cents).

mon

mining

Price—Five cents

expenses.

Securities, Inc., Denver 2, Colo.
Pulaski

per

share.

Underwriter—Skyline
■*

Veneer A Furniture

Corp.

March 28 filed 170,000 shares of common stock (par $5).

Price—$5.75

per

share.

Proceeds

—

repay

bank loans

and for machinery and equipment and working capital.
Office — Pulaski, Va. Underwriters — Scott, Horner &

Mason, Inc., Lynchburg, Va., and Galleher & Co., Inc.,
Richmond, Va.
Quo Vadis Mines, Inc., Las Vegas, Nev.
March

(letter of notification)

300,000 shares of com¬

stock

(par 10 cents). Price—$1 per share. Proceedi
—For mining expenses. Office—Viener-Jones Bldg., 230
S. 5th St., Las Vegas, Nev. Underwriter — First Jersey
mon

be offered for subscription by stockholders on the basis
of one new share for each nine shares held (with an

44th Avenue, Long Island

Office—12-01

Underwriter—None.

Securities

Old National Insurance Co., Houston, Tex.
March 29 filed 48,108 shares of capital stock (no

Feb. 14
stock.
For

Corp., Newark, N. J.

and

Minerals,

Inc., Reno,

Nev.

(letter of notification) 500,000 shares of common
Price—At par

mining

expenses.

(10 cents ner share).
Proceeds—
Office—5<3 Mill St., Reno, Nev.

Underwriter—Utility Investments, Inc., Reno, Nev.

—

Underwriter—None.

• Facific Finance
Corp. (Calif.)
Aprjl 10 filed $25,000,000 of debentures due 1971. Price
—To be supplied by amendment. Proceeds—For reduc¬
tion of short-term bank loans.
Underwriters—Blyth &
Co., Inc. and Hornblower & Weeks. Offering—Tempo¬

rarily postponed.

National Aviation Corp. (5/8)
April 17 filed 139,523 shares of capital stock
(par $5)
to be offered for
subscription by stockholders of record
May 8, 1956, on the basis of one new share for each
four

stock held.

Rapp
March

Paria

Oct.

Uranium & Oil Corp.
(letter of notification) 3,000,000 shares of com¬

stock

Price—10 cents per share
mining expenses. Office — Newhouse
Bldg., Salt Lake City, Utah. Underwriter — Western
States Investment Co., Tulsa, Okla.

mon

Proceeds

(par five cents).

—

For

(Fred P.), Inc., St. Louis, Mo.
filed

150,000 shares of 5V2% cumulative pre¬
$10). Price—To be supplied by amend¬
Proceeds—To repay bank loans incurred by com¬

ferred stock (par
ment.

com¬

Price—$1 per share. Proceeds
—For working capital. Business—To
purchase and resell
mortgages and properties. Office—550 Fifth Ave., New

by stockholders of record Jan*

the basis of nine additional shares of

each

common

Proceeds—For

Feb!

Tex.

(par 10 cents).

for

mum

•

Feb. 9

Proceeds—For

Price—$25 per share. Proceeds — For working capital.
Underwriter—None. A/E. Nicholson Jr. of Kingston, Pa.

common

210,823

—

chase of

Miss.

(5/8)

Niagara Uranium Corp., Salt Lake City, Utah
April 3 (letter of notification) 2,400,000 shares of com¬
mon stock
(par 3V3 cents). Price—10 cents per share.
Proceeds
For mining expenses. Office —345 South
State St., Salt Lake City, Utah.
Underwriter—Birkenmayer & Co., Denver, Colo.

ic Mission Appliance Corp. of Mississippi
April 23 (letter of notification) 7,475 shares of preferred
stock (par $20) and 29,900 shares of common stock
(par
$5) to be offered in units of one preferred and four com¬
mon

a.m. (EDT)
York, N. Y.

30, 1956
stock

cates

(5/7-9)

April 16 filed $30,000,000 of general mortgage bonds due
May 1, 1986. Proceeds—To repay bank loans. Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co. Inc.; Kuhn, Loeb &

—

Underwriter—None.

Mineral Projects-Venture C, Ltd.,
Madison, N. J.
Feb. 7 filed $4,000,000 of participations in
capital as lim¬

;

Co., Dallas, Texas

standing indebtedness. Office — 2206 Mercantile Bank
Bldg., Dallas, Tex. Underwriter—Whitney-Phoenix Co.,!
Inc., New York.

and

working capital, reserve, etc.

Nemaha Oil

April 11 (letter of notification) 200,000 shares of common
stock (par $1). Price—$1.50 per share.
Proceeds—For
exploration and development costs and to retire out¬

Office—421 Glenwood Ave., Grand

Junction, Colo.
Underwriter—Columbia Securities Co., Denver, Colo.

■

per

None.

Merchandising, Inc., Tampa, Fla.

filed

shares of

None.

(par one cent). Price—$1 per share. Proceeds—
mining expenses. Office — 556 Denver Club Bldg.,
Denver, Colo. Underwriter — Investment Service Co.,
same city.
..
■■
■•/■
•.. <
•

Underwriter—Colorado Investment

To be supplied by amendment.
working capital and general corporate

Corp., Donver, Colo.

Dec. 27 (letter of notification) 300,000 shares of common

Pro¬

Center

*Mark (Clayton) & Co., Evanston, III. (5/22)
April 27 filed 141,420 shares of common stock (par $5),
of which 100,000 shares are to be offered for account of
the company and 41,420 shares
by selling stockholders.
Price

Underwriter—None.

National Lithium

offered for subscription

(5/9)

Peabody Coal Co., Chicago, III.—
Feb.

March 28 filed 447,797 shares of common stock (par $10)
be offered for subscription by common stockholders

Oct. 18

(2169)

amendments Proceeds—For investment.

•

common

pany

to redeem

and cancel all of the issued

and out¬

standing shares of 4% and 7% preferred stock; and for

expansion prpgram. Underwriter—Edward D. Jones &
Co., St. Louis, Mo. Statement may be withdrawn as com¬
pany may be acquired by ACF-Wrigley Stores, Inc.
^ Reading & Bates Offshore Drilling Co.
May 2 filed 170,000 shares of class A (cumulative con¬
vertible) capital stock (no par). Price—$12 per share.
Proceeds—To repay loans and advances and for work¬
ing capital.

Office—Tulsa, Okla.
f

Underwriters—Hulme,

Continued,

page

The Commercial and Financial Chronicle... Thursday,

(2170)

Applegate & Humphrey, Inc., Pittsburgh, Pa.; The Mil¬
Milwaukee, Wis.; The Ohio Company, Co¬
lumbus, Ohio; and Stroud & Co., Inc., Philadelphia, Pa.
it Reliance Uranium Corp.
April 3 (letter of notification)

6,000,000 shares of com¬
mon stock (par one cent).
Price—Five cents per share.
Proceeds—For minipg expenses. Underwriter—None.
Inc., Inglewood, Calif.
Dec. 19 filed 4,000,000 shares of common, stock. PriceAt par ($1 per share). Proceeds—To purchase real prop¬
erty, for construction of buildings and other facilities"
and for general corporate purposes. Underwriter—Wil¬
ton & Bayley Investment Co.
Reno Hacienda,

Republic Cement Corp., Prescott, Ariz. (5/24)
April 20 filed 965,000 shares of capital stock. Price—$10
per share. Proceeds—For construction of plant, working
capital and general corporate purposes. Underwriter—
Vickers Brothers, New York.

* Republic Gas & Uranium Corp., Dallas, Texas
April 23 (letter of notification) 200,000 to 300,000 shares
of common stock (par five cents). Price—16 cents to 25
cents per share.
Proceeds — To Robert A. Howard of
Scottsdale, Ariz., the selling stockholder. Office—533
Mercantile Bank Building, Dallas, Texas. Underwriter
—None.

St. Regis

Paper Co.
Feb. 21 filed 540,000 shares of common stock (par $5)
being offered in exchange for outstanding common stock
of Rhinelander Paper Co. on a share-for-share basis.
The offer will be declared effective if 90% of Rhinebe

than

stock is deposited for exchange;

common

80%

effective

declared

lesser

amount,

and may

but not less

shares, are so deposited. This offer
May 16. Dealer-Manager—White, Weld

of said

will expire

& Co., New York, and

A. G. Becker & Co., Inc.

Savannah Electric & Power Co.

(5/9)

mortgage bonds due
1986. Proceeds—To repay bank loans and for new con¬
struction. Underwriter—To be determined by competi¬
April

of first

$4,500,000

filed

Farmers Trust Co.,

Chemicals, Inc., Greenville, S. C.
$742,800 of 5% subordinated convertible
debentures due April 1, 1971 being offered for subscrip¬
tion by common stockholders of record April 17 on the
mon

.per

ers;

New York.
& Television

Electronics

Corp.
March 16 filed 470,000 shares of common stock (par 10
cents). Price — At the market. Proceeds — To selling.,
stockholders.

Underwriter—None.

/•'*•'

;

Norris
S.

stock

Calif.

Underwriter—None.

—

810 South Flower

due 1976

accrued

business. Business—Manufactures-and sells prefabricated
homes.

basis of 0.6158

Price—$7.50
to

share for each

new

per

share.

share held.

common

Proceeds—For

expenses

manufacturing and sales of carbon dioxide.

incident
Office—

1600 East Eleventh St., El Paso, Tex. Underwriter—None.

it Senogas Corp., Miami, Fla.
I
April 19 (letter of notification) 6,000 shares of partici¬
pating preferred stock. Price—At par ($50 per share).
Proceeds—To produce engineering specifications needed
to

conduct

^nd

negotiations

continue

their

Street, Miami, Fla.

with

potential

research.

Office

manufacturers
—

579

Flagler

Shangrila Uranium Corp.
Dec. 30 (letter of notification) 300,000 shares of com-l|
mon stock.
Price—At par ($1 per share). Proceeds—
For mining expenses. Underwriter—Western States In¬

Sierra

Pacific

com¬

(5/4)

April 12 filed 80,500 shares of preferred stock, series A
(par $50) to be offered in exchange for the outstanding
35,000 shares of 6% preferred stock on the basis of 2.3
shares of new preferred for each share of old
preferred.
Prise—To be supplied by amendment.

Proceeds—To

re¬

deem old preferred stock or to retire bank
loans. Under¬
writers—Names to be supplied by amendment. Stone &

Webster Securities Corp., New
York, N. Y. and Dean
& Co., San
Francisco, Calif., underwrote last
equity financing. Exchange offer expected May 4 to
expire on May 24.

Witter

Sierra

Prefabricators, Inc. (Calif.)
(letter of notification) 149,500 shares of cap¬
(par $1). Price—$2 per share. Proceeds—For
working capital and general corporate purposes. Under¬
March 12
ital stock

writer—S. D. Fuller & Co., New York.

Simca, Paris, France
March

filed

(1)

such

number

as may be
issued (on a basis
for each underlying
capital

two

American

share) in respect of 1,455,(2) the 1,455,713 capital
being offered to the holders
presently outstanding capital shares,
including holders

713 capital shares of Simca and
shares. These securities are
of
of

American

rate

one

(or

American

representing capital shares, at the

additional

one

share)

capital

additional

held

American

for

each

capital

for

each

April 30, 1956, together with
privileges. The subscrip¬

certain additional
subscription
tion price will be

5,500

per
can

capital
•♦share.

shares will
June

share and

francs

(approximately $15 71)
approximately $7.86 per Ameri¬

Subscription rights of holders of capital
expire at the close of business in Paris on

6, 1956, whereas warrants evidencing
subscription

(5/16)
stock (par $1)

common

of record about

Price—To

May 15; rights to expire about June 5.
supplied-by amendment. Proceeds—For

production

equipment,etc.; and to repay short term
Business—Research and development of new and

loans.

improved commercial processes, techniques and equip¬
ment for electrolytically depositing chromium coatings
directly on various types of base metals. UnderwriterCharles Plohn & Co., New York.

ton, D. C.

: >

Togor Publications, Inc., New York
-Y
March 16 (letter of notification) 299,700 shares of com¬
mon stock (par 10 cents).
Price—$1 per share. Proceeds
—For- working capital and general corporate purposes.
Office—381 Fourth Ave., New York, N. Y. Underwriter
—Federal Investment Co., Washington, D. C.
'• YY
..

Southwestern Oklahoma Oil Co., Inc.
Feb. 27

(letter of notification) 15,001 shares of common
(par 10 cents) to be offered for subscription by
Price—$10 per share. Proceeds—For ex¬
penses incident to development of oil and gas properties.

stockholders.
Office—801

Washington Bldg., Washington, D. C. Under¬

Transportation Vendors, Inc.
(letter of notification) 299,750 shares of
mon
stock (par five cents).
Price—$l:-per share.

writer—None.

March 23

ceeds— To

com¬

Pro¬

indebtedness, and for expansion and
working capital. Business—Vending machines.' Office—
60 Park Place, Newark, N, J.
Underwriter — Midland
Securities, Inc., New York, N. Y.
*
;
pay

Stubnitz Greene Corp., Adrian, Mich. 29 filed $1,000,000 of 5V2% sinking

March

ordinated

debentures

due

1966

~ ; -

-■

fund

(with warrants to

pur¬

chase. 60,000 shares of common stock) and 100,000 shares
of 60-cent cumulative preferred stock
(par $5) being
offered

for

warrants

stock at

for

subscription

March

attached
100

stockholders

common

$250 of debentures

purchase

$8 per share)

each

units

Tunacraft, Inc., Kansas City, Mor
17 (letter of notification) $250,000 of 6%

sub¬

Jan.

registered
'due

1,
outstanding

common

—

Jacinto

Co., Inc., Spokane, Wash.

unit; and to public, $10 per unit. Proceeds—For
capital improvements •;and general corporate purposes.
"Office—Norwood, N. J. Underwriter—None. Y

Uranium Exploration Co., Salt Lake City, Utah

Feb. 13

;

(letter of notification) 77,875. shares of common

stock

For mining

mining operations. Office—
Harney Hotel, Rapid City, S. D. Underwriter—Morrii
same

per

Springs Uranium Corp., Rapid City, S. D.
(letter of notification) 1,200,000 shares of commoo

Brickley,

(letter of notification) 150,000 shares of con¬
preferred stock (par $1) and 30,000 shares of
common stock
(par 10 cents) to be offered in units of
five shares of preferred stock and one share of common
stock first to stockholders.
Price—To stockholders, $9

Summit

Oct. 3

Fiberglass Industrial Plastics, Inc.

vertible

improvements and working capital. Of¬
Sprague Ave., Spokane, Wash. Under¬

writer—W. T. Anderson &

March

Developers, Inc., Spokane, Wash.
Feb. 2 (letter of notification) 920 shares of 6% cumula-'
tive non-voting preferred stock
($100 per share) and
2,160 shares of common stock (par $10). Price—Of pre¬
ferred, $100 per share; and of common, $15 per share.
West

Underwriter—Mickle &
*
.•»"

Building, Houston, Tex.
Co., Houston, Texas.
,

Suburban Land

fice—909

12-year
debenture notes

stock (par 10 cents). Price—$1.25 per share. Proceeds—
For expenses incident to oil production. Office — San

stock

Price

fund

Union of Texas Oil Co., Houston, Texas ; ' -'Y'
Jan. 19 (letter of notification) 240,000 shares of common

common

and 25 shares of preferred stock

May 9.

sinking

1968. Price—At par. Proceeds—To reduce
secured obligations. Underwriter—McDon¬

ald, Evans & Co., Kansas City, Mo.

(with

presently held;
$418.75 per unit.
1-roceeas—lor expansion and working capital. Office—
404 Logan Street, Adrian, Mich.
Underwriter—Golkin
& Co., New York. Statement effective
April 24.
rights to expire

subordinated

Jan.

itock (par 10 cents). Price—25 cents per share. Proceed*-

Power Co.

P. W.

—

be offered

—For expenses incident to

vestment Co., Tulsa. Okla.

Underwriter

for subscription by common stockholders
at the rate of one new share for each three shares held

Spurr Mining Corp.
Nov. 9 (letter of notification) 300,000 shares of common
stock.
Price—$1 per share. Proceeds—For mining ex¬
penses.
Underwriter—Cavalier Securities Co., Washing¬

Proceeds—For

Underwriter—None.

Toledo, Ohio.

it Tiarco Corp., Newark, N. J.

Pro¬
mining expenses. Office
32 Exchange
Place, Salt Lake City, Utah. Underwriter—None.

record

Schwartz Carbonic Co., El Paso, Texas
Feb. 27 (letter of notification) 30,700 shares of common
stock to be offered for subscription by stockholders on

—

Co., Inc., New York.

April 25 filed 375,000 shares of

Strategic Metals, Inc., Tungstonia, Nevada
Jan. 4 (letter of notification) 1,200,000 shares of com¬
mon stock.
Price—25 cents per share.
Proceeds—For
expenses incident to mining operations.
Underwriter-—
R. Reynolds & Co., Salt Lake City, Utah.

Bank, New York City.

Office

Brooks &

For

—

interest; and for stock, $4.12per share. Pro¬
working capital in connection with increased

ceeds—For

St., Los Angeles 54, Cal.

it Spiral Uranium Co., Salt Lake City, Utah
April 26 (letter of notification) 3,000,000 shares of
mon
stock.
Price—At par (10 cents per share).
ceeds

sinking fund debentures
(with warrants attached) and 40,000 shares of
capital stock (par $1), Price—For debentures; 100% and

1216

other firms.

April 13 filed $600,000 of 6%

Southern California Gas Co.
(5/23)
Y
April 23 filed $40,000,000 of first mortgage bonds, series
B, due 1981. Proceeds—To repay short-term indebted¬
ness
owing to parent, Pacific Lighting Corp.;. and for
construction program.
Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart
& Co. Inc.; Blyth & Co., Inc.; Lehman Brothers, White,
Weld & Co. and Union Securities Corp. (jointly). Bids—
To be received up to 8:30 a.m. (PDT) on May 23 atRoom

Underwriters
Edgar Mr
Co.,; both of Greenville,

Furman

!• Thyer Manufacturing Corp.r(5/10)-

1. :r

■

seven

Corp., Dallas, Texas
Jan. 20 (letter of notification) 99,990 shares of common
stock (par $1); Price
$3 per share. Proceeds—For
"working capital and general corporate purposes.. Office^
—Meadows Building, Dallas,.; Texas.; Underwriter
Thomas F. Neblett, LOs Angeles, Calif.
Yv* ;Y V,'Y*

Sonoma Quicksilver Mines, Inc.
April 9 (letter of notification) 640,000 shares of capital
(par; 10 cents) to be offered for subscription bystockholders." Price—45 cents per share. Proceeds—For
mining expenses. Office—41 Sutter St., San Francisco,

C., and

working capital.
Alester

and

Tex-Star Oil & Gas

;

Sayre & Fisher Brick Co.
Sept. 30 filed 325,000 shares of capital stock (par $1)
later amended to cover 234,641 shares now being of¬
fered for subscription by stockholders of record April
13, 1956 at the rate of one new share for each two shares
held
(with an oversubscription privilege); rights to
expire on May 7. Price—$5 per share. Proceeds—For
of outstanding 4V2% sinking fund bonds
due 1960; balance for general corporate purposes, in¬
cluding additions and improvements and working capi- *
tal. Underwriter—None. Warrant Agent—The Hanovei

stock held; rights to expire on May 8. Price—$98.50 '
$100 debenture/ plus accrued interest, to stockhold¬
and at par to public. Proceeds—For capital expen¬

ditures and

Skiatron

bidding. Probable bidders: Halsey, Stuart & Co.
Inc.; White, Weld & Co. and Kidder, Peabody & Co.
(jointly); The First Boston Corp.; Blair & Co. Incorpo¬
rated. Bids—Expected to be received up to 11 a.m. (EDT)
on May 9 at 90 Broad St., New York, N. Y.

prepayment

19 filed

basis of $100 of debentures for each seven shares of com-;

stock

tive

Texize

March

The subscription is to be handled by a group
of French
subscription agents.
Proceeds—To finance
a
program of expansion and improvement.
Business—
Simca is engaged in the production and sale of passenger
automobiles, trucks, tractors and other products in
France.
Depositary—For American shares: City Bank
31, 1956.

waukee Co.,

lander

•

rights of holders of American shares will expire on May

Continued from page

May 3, 1956

(par 25 cents).

Price—$1

per

share.

Proceeds—

Office—538 East 21st South St.,

expenses.

..Salt<Lake City, Utah.
Underwriter — Pioneer Invest¬
ments, Salt Lake City, Utah.
'
"

address.

Sun Oil Co., Philadelphia, Pa.
April 18 filed 229,300 shares of common stock. Price—At
the market.
Proceeds—To selling stockholders. Under¬
,

Utco

Uranium Corp.,

Denver, Colo*

JanYsO (letter of notification) 200,000 shares of
mon

gtock, which

are

com¬

covered by an option held by the
cents per share.
Proceeds—For

writer—None.

underwriter.

Superior Uranium Co., Denver, Colo.
(letter of notification) 29,600,000 shares of com*
mon
stock.
Price—At par (one cent per share). Pro->
ceeds—For mining operations/
Office—608 Calif omit
Bldg.; Denver, Colo. Underwriter—Securities, Inc., P. O
Box 127, Arvada, Colo.

mining expenses. Office—310 First National Bank Bldg.,
Denver, Colo. Underwriter — Amos C. Sudier & Co..
same~city.
~
Y

Nov. 9

-Target Uranium Corp., Spokane, Wash.
(letter of notification) 1,000,000 shares of com-1
mon stock
(par five cents). Price—20 cents per share.
Proceeds—For mining expenses.
Office --— 422 Paulsen
Blag., Spokane, Wash. Underwriters—Percy Dale Lanphere and Kenneth Miller Howser, both of Spokane,

•

■'*

Taylor

Petroleum

Corp., Norman, Okla.
200,000 shares of common stock (par $1).
Price—To be supplied by amendment. * Proceeds—For
working capital, drilling and completion of additional
wells, possible acquisition of interests in additional oil
and gas leases and exploration for oil and gas. Under¬
Feb.

filed

writer—Hayden, Stone & Co., New York.
Texas
Nov.

Eastern Transmission

Vance

Jan.

March 1

Wash.

Price—10

Corp.

Evanston,

III. v!

Value Line

Special Situations Fund, Inc.

(N. Y.)

April. 18 filed 2,000,000 shares of capital stock (par 10
cents). Price—$3 per share. Proceeds—For investment/
Underwriter—Value Line Distributors, Inc., New York.

it Vicar, Inc.
April 12 (letter of notification) 2,500 shares of common
capital stock. Price—At par ($10 per share). Proceeds—

incident to wholesale and retail distribu¬
photographic equipment and supplies. Under¬

For expenses
tion

writer—None.

West Jersey

Jan. 23

filed

Inc.,

(letter of notification) 7,000 shares of common
stock (par one cent). Price—$7 per share.- Proceeds—
To selling stockholders.
Office —r2108 Jackson Ave.,
Evanston, 111. Underwriter—Arthur M. Krensky & Co.,
Inc., Chicago, 111.
Y
■"
•

►

Industries,

Title & Guaranty Co.

(letter of notification)

10,000 shares of common

200,000 shares. of cumulative preferred
stock (par $100). Price—To be supplied by amendment.

stock

Proceeds—Toward redemption of presently outstanding
190,000 shares of 5.50% first preferred stock.
Under¬

ing preferred stock on a 2-for-l basis; any shares re¬
maining will be offered to common stockholders. Price—
$25 per share. Office—Third and Market Sts., Camden,

writer—Dillon, Read & Co., Inc., New York.
Temporarily postponed.

Offering—

(par $10) of which 8,000 shares are first to be
a period of 30 days in exchange for outstand¬

offered for

N. J.

Underwriter—None.

Volume 183

Number 5530... The Commercial and Financial Chronicle

43 ^

(2171)

★

Western Electric Co.', Inc.
April 13 (letter of notification) 2,595 shares of common
stock (no
par) being offered for subscription by minority
stockholders of record April
10, 1956 at the rate of one
new share for each
nine shares held; rights to
expire on
May 31, 1956. An additional 1,409,071 shares are to be
sold to American
Telephone & Telegraph Co.r owner of
99.82% of the outstanding
voting stock. Price—$45 per
share. Proceeds—For
plant improvement and expansion.

& Co. Inc.; Glore, Forgan & Co. and Blyth & Co., Inc. '•

Prospective Offerings
Air-Vue Products Corp., Miami, Fla.
Feb. 20 it was reported early registration
L

Price—At

is expected

Price—Around $4.25
share. Proceeds — For expansion program. Underwriter—Arthur M. Krensky & Co., Inc., Chicago, I1L
American Telephone

new

issue of deben-

par

■*'.

(non-convertible) amounting to $250,000,000. Proceeds—For additions and improvements to Bell System
telephone service/ Underwriter —• To be determined by
competitive bidding. Probable bidders: The First Boston Corp. and Halsey, Stuart & Co. Inc. (jointly); Mor¬
gan Stanley & Co. Bids—Expected to be received some¬

March 15 it
-

•—To purchase
for working

properties

Arizona Public

White

bidders:

White Sage Uranium
Corp.

;n
T

15,000,000 shares of capi- *
(one cent per share). Proceeds

—For mining expenses.
Salt Lake
City, Utah. :

Office—547 East 21st South St., "

Underwriter—Empire Securities

Corp., Salt Lake City, Utah.

Williamson Co.,
Cincinnati, Ohio
(letter of notification) 20,666 shares of class B
common stock
(par $1) to be offered for subscription
by
class B common
stockholders on a l-for-7 basis. Price—
$6.84 per share. Proceeds—For
working capital. Office
—3500 Maison
Road, Cincinnati, Ohio.
Feb. 20

Underwriter—

None.

Wilmington Country Club, Inc., Wilmington, Del.
April 2 filed $1,500,000 of non-interest
bearing deben¬
tures, due 1991, to be offered to the members of the
Club.

Price—At par

—For

construction

ments.

($1,000

per debentures).
Proceeds
golf house and other improve¬

Underwriter—None.

Wilson

(Russell)

Industries, Inc.

Office—Winnsboro, Texas. Underwriters—J. J.
Holland Securities
Co., Inc., New York, N. Y., and Dag¬
gett Securities, Inc., Newark, N. J.

★ Wing E-E, Inc., Denver, Colo.
April 10 (letter of
notification) 299,900 shares of
Price—$1

share.

per

?710,000
Feb.

Proceeds—For

expenses, selling, and distributing
toys
novelty items. Office—609 Eauitable
Bldg., Denver
2, Colo. Underwriter—Columbia Securities
Co., Denver,

Colo.

holders
bonds

record

each

April 24

shares- held

the

(with

stock

common

one

(par $10)

stockholders

new

oversubscription

ilege); rights to expire
be

offered

Proceeds

For

—

for

priv¬

on May 15.
Unsubscribed shares
employees. Price—$28.75 per share.

construction

None.

4%%

debentures, series A, due

its
outstanding convertible
par-for-par basis.

41/2%

Co.

issue

(6/25)

Underwriter—If by competitive bid¬

fixed by

(6/6)

(

authorized

Proceeds—For

general

program.

Underwriter—

Nov. 21

(letter of notification)
3.000,000 shares of. com¬
mon stock.
Price—At par HO cents
per share).1 Proceeds
—For mining expenses^
Office—Virginia Truckee Bldg..1

Carson City, Nev.

Underwriter—Cayias, Larson, Glaser,

Emery, Inc., Salt Lake City, Utah.
-

Wycotah Oil & Uranium, Inc.,
Denver, Colo.

cor¬

Nov. 10 filed 1,500,125 shares of
common,stock.(par one
only to the owners of percentages ofworking interests in certain oil and gas leases and to the
owners

of certain uranium

properties, and in exchange
for such working interests and
properties; Price—Shares

to be valued at

arbitrapr price of $4

per

share. Pro-^

eeeds—To acquire properties.
Underwriter—None.

California
19

some

Electric

Power

Co.

reported company plans to issue and.
additional securities in June or July. Proceeds
was

—To retire bank loans and for

able bidders for

bonds may

new

construction.

include:

Prob¬

Halsey, Stuart &

Co. Inc.; Shields & Co.; Merrill Lynch, Pierce, Fenner
& Beane and Kidder, Peabody & Co. (jointly); Blyth &

Co. Inc.;

The First Boston Corp. and Salomon Bros. &
(jointly); Lehman Brothers; White, Weld & Co.
Previous common stock financing was underwritten by

Woodbury Telephone Co., Woodbury, Conn.

March 27 (letter of notification)
5,300 shares of common
being offered to stockholders of record April 20,
1956 on the basis of one new sliare for
each share

stock

rights to expire
per

share).

held;

May

18,

1956/ Price—At

par ($25
Proceeds—To repay short term loans and for
Underwriter—None.

construction.

Woods

;

Oil & Gas Co., New
Orleans, La.
Aug. 29 filed 400,000 shares of common stock (par
$1).
Price-^$5 per share.- Proceeds—To retire outstanding
obligations. Underwriters—Woolfolk & Bhober and Howard, Weil, Labouisse, Fredricks & Co., both of New
Orleans, La. Statement effective Feb. 28.
1
;

Carolina
March 22 it

it WPFH Broadcasting Co., Philadelphia, Pa.
Apijl 24 (letter of notification) 150,000 shares of class A
common stock
(par $1). Price—$1.871/fe per share. Pro¬
ceeds—For working capital. Office—1425 Walnut
Street,
Philadelphia 2, Pa.
Underwriters — Boenning & Co.;
Hallowell, Sulzberger & Co.; Woodcock, Hess & Co.,
„Inc., and Suplee, Yeatman & Co., Inc., all of Philadel¬

Power
was

Light Co.

(9/11)

Central Illinois

Light Co.

April 3 it was announced company plans $8,000,000 addi¬
tional financing during 1956. The type of securities to be
issued has not yet been determined.
Proceeds—For con¬
struction program.
Underwriter—For bonds; to be de¬
termined by- competitive
bidding.
Probable bidders:

Halsey, Stuart & Co. Inc.; Morgan Stanley & Co.; Kuhn,
Loeb & Co.; Union Securities Corp.; The First Boston
Corp.; Harriman Ripley & Co. Inc.; Merrill Lynch,
Pierce, Fenner & Beane and Stone & Webster Securities
Corp. (jointly).

—

Avenue, Yardley, Pa.

Underwriter—None.

(jointly); Kidder, Pea¬

(jointly); Carl M. Loeb, Rhoades & Co.; Blyth & Co.
(jointly); White, Weld
& Co. and .Shields & Co. (jointly); Lehman Brothers.:
Bids—Expected to be received "on or about June 6.

Inc. and The First Boston Corp.

Edison

Co.

20, Walker L. Cisler, President stated that "tenta¬
tive plans are that about $60,000,000 will be obtained
from investors in 1956. Internal funds and bank bor¬

Corp., Houston, Texas
application has been filed
with the FPC for construction of a 565.7 mile pipeline
system to cost $68,251,000. Underwriters—May be Leh¬
man Brothers and Allen & Co., both of New York.
was

announced

was

offered

(10/2)

Underwriter

—

sell
To be deter¬

mined by competitive bidding. Probable bidders: Halsey,
Stuart & Co. Inc.; Morgan Stanley & Co. Bids—Expect¬
ed to be received

Commercial
March 12 it

was

Oct. 2.

Credit

$25,000,000 of junior subordinated deben¬
—
Kidder, Peabody & Co. and The
First Boston Corp., both of New York.
Underwriter

Edison

Co.

(6/5)

was announced that company may issue be¬
$35,000,000 to $50,000,000 of bonds. Proceeds—For
program.
Underwriter—To be determined
by competitive bidding. Probable bidders: Halsey, Stuart

Jan. 24 it
tween

construction

handled Du Most Laboratories class A stock fi¬

& Co.

nancing some years ago.

;

Stockholders of Laboratories
Broadcasting firm.

Oct. 10 approved formation of

Dubl-Check Corp.

(5/15)

April 9 it was reported company plans to issue and sell
58,700 shares of preferred stock and 58,700 shares of com¬
mon stock in units of one share
of each class of stock.
Price—$5.10 per unit.
whereby
casher.

Business—Check cashing service,

coin operated camera photographs the check
Underwriter—Talmage & Co., New York.
a

Erie RR.

(5/16)

Bids will be received

by the company up to noon (EDT)

May 16 for the purchase from it of $6,225,000 equip¬
ment trust certificates to mature in 15 equal annual in¬
on

stalments.

Probable bidders:
& Hutzler.

Halsey, Stuart & Co. Inc.;

Salomon Bros.
First

National

San

Trust

Diego, Calif.

Savings

Bank,

offer to its stock¬
additional shares
the basis of one new share

April 4 it was announced Bank plans to
holders the right to subscribe for 43,200

capital stock (par $10) on
10 shares held as of April 27 (following pay¬
ment of a 100% stock dividend); rights to expire on

18. Price—$31 per share. Proceeds—To increase
capital and surplus. Underwriters—Dean Witter & Co.,
Blyth & Co., Inc., William R. Staats & Co. and Dewar
& Co., all of San Diego, Calif.
May

First

Corp.

reported company plans early registra¬

Commonwealth

Kuhn, Loeb & Co. and Van Alstyne, Noel

derwritten.

for each

Inc.

announced company may issue and

$30,000,000 of debentures.

Mont Broadcasting Corp.

dividend, contemplates that additional shares .will be
to its stockholders.
This offering will be un¬

Columbia Gas System,
15

rowings will probably provide for the remainder of the
$95,000,000 necessary this year to carry forward the com¬
pany's program of expansion of facilities." Financing
may be in form of 15-year debentures to common stock¬
holders. Underwriters—None. Offering—Tentatively ex¬

Transmission

Coastal

Feb. 29 it

tures.

★ Yardley Water & Power Co., Yardley, Pa.
April 23 (letter of notification) 2,000 shares of common
stock. Price
At par ($25 per share). Proceeds — For
outstanding note, pumping station and repayment of
advances from developers.
Office — 50 West College

Co. and Union Securities Corp.

com-

W. C. Langley &

Laboratories, Inc. of 944,422 shares of common stock as

announced company plans to issue and

tion of about

phia, Pa.

Probable bidders:

body & Co. and Merrill Lynch, Pierce, Fenner & Beane

first mortgage bonds due 1986. Under¬
writer—To be determined by competitive bidding. Prob¬
able bidders: Halsey, Stuart & Co Inc.; Kuhn, Loeb &
Co. and A. C. Allyn & Co. Inc. (jointly); W. C. Langley *
& Co. and The First Boston Corp. (jointly); Equitable
Securities Corp.; Blyth & Co., Inc.; Kidder, Peabody &
Co. and Merrill Lynch, Pierce, Fenner & Beane (jointly).
Bids—^Scheduled for Sept. 11.

Feb.

Underwriter—To be determined by

Aug. 10 it was announced that corporation, following is¬
suance on Dec. 2 to stockholders of Allen B. Du Mont

sell $15,000,000 of

;
,

pected in June.

Blyth & Co., Inc. and The First Boston Corp.

com-"

the board about June 1. Proceeds—For construc¬

Detroit

cent V to be offered

Co.

Underwriter—To be determined by

petitive bidding.

Underwriter—F. Eberstadt & Co., New

Hutzler

Woodstock Uranium Corp., Carson
City, Nev.

Feb.

March
sell

Power

tion program.

be named: later.

Price—To

• Delaware Power &
Light Co. (6/6)
April 27 the directors approved a plan for the1 sale of
232,520 additional shares of common stock to common
stockholders of record June 6, 1956 on the basis of one
new
share for each eight shares held.
Unsubscribed
shares are to be offered to employees.
Price—To be

about June

on or

summer

III.
Elliott, President, on March 18 stated in part: "To '
meet the cost of present proposed capital expenditures,
it appears that some additional financing may be neces¬
sary." Underwriters—Morgan Stanley & Co. and Clark,
Dodge & Co.

an offering to stockholders
5,1956, of 1,105,545 additional
shares of common stock (par $2.50) on the basis of three
new
shares for each five shares held ,(with an over¬
subscription privilege); rights taiexpire, about..June>20*.

company

of record

the

Crane Co., Chicago,

May 8.

and

F. F.

ding, bidders may include Lehman Brothers; The First
Boston Corp.; Harrimarv Ripley & Co. Inc.
Bids—Ex¬
pected up to noon (EDT) on June 25. Registration—
Scheduled for May 22. Meeting—Stockholders to vote
on new

now

in the Fall.

was

struction program.

between

petitive bidding.
Probable bidders: Halsey, Stuart &
Co. Inc.; Harriman Ripley & Co. Inc. and The First Boston Corp. (jointly); Morgan Stanley & Co.; White, Weld
& Co. and Shields & Co. (jointly). Offering—Expected

income

27 it was reported company plans to issue some
preferred stock during 1956. Proceeds—To reduce bank
loans.
Underwriter—To be determined by competitive
bidding. Probable bidders: W. C. Langley & Co.; Estabrook & Co. and Stone & Webster Securities Corp.
(jointly); Salomon Bros. & Hutzler; Kidder, Peabody &
Co.; Harriman Ripley & Co. Inc.

Edison

O'Neill, President, announced that the *

sometime

construction.

Blackstone Valley Gas & Electric Co.

Boston

April 7 it was reported company plans to issue and sell
$30,000,000 of first mortgage bonds. Proceeds—For new

York.

common

basis

Feb.

March 30 filed 463,641 shares of

First

1956, will probably do some additional financing. Pro¬
ceeds—For expansion.
Underwriters—The Milwaukee
Co.; Harley Haydon & Co., Inc.; and Indianapolis Bond
& Share Corp. underwrote class A common stock offer¬
ing made last August.

1, 2010, which it proposes to offer in exchange to

porate purposes.

Wisconsin Electric Power Co.

will

of convertible

Halsey, Stuart & Co; Inc.; Morgan Stanley &

company

to issue up to $54,-

company

Consolidated Water Co.

Baltimore & Ohio RR.

(7/25)

announced company

Jan. 16, Frank A.

estimated

To reduce bank loans*

and. Paine, Webber,

Consumers
.

April 11
common

and

years

Braniff Airways, Inc.

manufacturing

being offered for subscription by

Co.

announced company plans to offer 180,000
shares of preferred stock (par $100). Proceeds—For con¬

March 13 (letter of
notification) 3,000.000 shares of com¬
stock. Price—At par (10 cents
per share). Proceeds
—To repay bank
loans, for drilling well and working
capital.

(par 10 cents).

five

April 25 it

mon

stock

the

March 22 ICC authorized

„

Service

announced company

was

—

Corp (jointly); White, Weld,
Jackson & Curtis (jointly).
Bids—Expected to be received on July 25.
&

plans to spend dur$94,000,000 for
new construction.
Of this amount, $41,000,000 is expected
to come from within the company, and the balance from
outside sources.; No new equity financing is planned
for 1956. About $16,000,000 is expected, to be spent this
year/ Bond financing is expected to be done privately
through Blyth & Co., Inc. and The First Boston Corp.

:
/ ing

Feb. 13 (letter of
notification)
tal stock.
Price—At par

March 23 it

was

Co. and The

Eagle Oil Co./and
Office—Tulsa, Okla. Underwriter
—Paine, Webber, Jackson & Curtis, Boston,
Mass., and
New York, N. Y. V
capital.

Proceeds

plans to issue and
$30,000,000 ef debentures due 1981. Underwriter—
be determined "by competitive bidding.
Probable

sell

time after the middle of June.

1-for-10 basis.

Consolidated Natural Gas Co.

tures
'

★ White Eagle International Oil, Inc.
(5/21-24)
April 27 filed I;l$6,250 shares of common stock
(par 10
cents). Price—To be supplied by amendment. Proceeds
♦

Co.

was

Underwriters—Putnam & Co.; Chas. W. Scranton & Co.
Offering—Expected in June.
f

& Telegraph Co.

March 21 the directors authorized

($1 per share). Proceeds—To start
brokerage business. Office—921 Sims Bldg.,
Albuquerque, N. M. Underwriter—None.*

dealer,

Power

reported company plans to issue and sell
$5,200,000 of new preferred stock and offer to common
stockholders 71,132 additional shares of common stock

per

Western Securities
Corp. pf New Mexico
Feb: 13 (letter of
notification) 50,000 shares of common
a

Connecticut
March 1 it

of 150,000 shares of common stock.

Underwriter—None.

stock.

(jointly); The First Boston Corp.

March

Pennsylvania Banking & Trust Co. (6/7)1
it was announced Bank plans to offer to its

202,800

stockholders

June
To

shares of capital stock

additional

on the basis of one new share for each 10
held on or about May 28; rights to expire on

$10)

(par

22.

Price —To be established

later.

Proceeds—i

Underwriters—Drexel
Co., Philadelphia, Pa., and Merrill Lynch, Pierce, Fen.

ner

increase

capital and surplus.

Beane

and

Smith, Barney

& Co., both of New

Continued

page

The Commercial and Financial Chronicle... Thursday,

(2172)

Continued

from

Merrill Lynch, Pierce, Fenner & Beane
& Co. Incorporated.

page

Meeting—Stockholders will vote May 28 on

York City.

Johns-Manvilfe

2,028,000 shares

increasing authorized capital stock from

tion

registration is expected
Price — Probably
$5 per share. Underwriters—Fairman, Harris & Co., Inc.,
and Straus, Blosser & McDowell, both of Chicago, 111.
of

Dec.

of common stock.

Florida
Feb. 20 it

reported early

was

159,000

was

announced company plans to

April

stock

(par $3).
Proceeds—For construction program, etc.

common

later.

writers—Starkweather
A. Evans &

Union Securities Corp. (jointly); Lehman Brothers
Bear, Stearns & Co. (jointly). Amount and timing
not yet been determined (probably not until first
half of 1957).

Co., Inc., Atlanta, Ga.

Kansas

Power

March 21 it

shares of

New

common

stock

the

50%

The

Fruehauf.

of Fruehauf
in

received

sale.

the

228,000

represent

about

that the Strick family

stock

common

Underwriter—Kidder, Peabody &

Co., New York.
General

stock

basis.

stockholders
First

Boston

Corp.,

York.

was

announced that the

—Expected

New

late

•

General Contract

G. H. Walker &
General

sible that
for

new

issue of

subscription by

1957.

common

rities

stockholders

authorized

common

stock

proposal

2,500,000 from 1,750,000
shares and the authorized preference stock to
1,000,000
from 350,000 shares; also a
proposal that any issue of
debentures may include a privilege to convert into com¬
mon stock and
permit the company to issue warrants to
purchase common stock, provided the total that may be
outstanding at any one time does not exceed 600,000
shares. [The company expects to issue
23,000 additional
preference shares—5,000 for acquiring stock and prop¬
erty and 18,000 for cash. Having completed long-term

$15,000,000 in debentures.]
body & Co., New York.
Giannini

(G. M.)

the

than*

Underwriter—Kidder, Pea¬

Underwriters—G.

was

announced

program. Underwriter—To be determined by
competitive bidding. Probable bidders: Halsey, Stuart &
Co.
Inc.; Union Securities Corp.; Blyth & Co., Inc.;
Lehman Brothers,
Goldman, Sachs & Co. and The First
Boston Corp. (jointly); W. C.
Langley & Co., White,

disclosed company

additional

financing through sale of equity
st?ch .(the method and amount has not yet been deter¬
mined). Proceeds—For expansion
program. Underwriter
—Kuhn, Loeb & Co., New York.
6

was

reported

may

later

1956,

Issue and sell $9,000,000 first
mortgage bonds. Under¬
writer
To
be determined
by competitive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Lehman
Brothers; White, Weld & Co.; Kidder,
Peabody & Co.;
Union Securities
Corp., Salomon Bros.1 & Hutzler and
—

bonds

later

Underwriter

—

For

Proceeds—For construction program. Underwriter s
determined

first mortgage bonds.
Proceeds—Together with $5,000,000 to be received from American Natural Gas Co.,

parent from | sale to
be

used

determined

for

construction

program.

common

stock, to

Underwriter

competitive

ders—Halsey, Stuart
Co.; Glore, Forgan &
ly); Smith, Barney &
& Co., Inc. (jointly);
-

it of additional

Co.

bidding. Probable bid¬
Inc.; Kidder, Peabody &

Co. and Lehman Brothers (joint¬
Co., Kuhn, Loeb & Co. and Blyth
Harriman Ripley & Co. Inc.

★ Missouri Facific RR.

Beane, Kidder,

(Kingdom of)

Norway

April -17 it was announced a registration statement will
be filed next week covering a proposed issue of $10,000,000 to

later.

of
of

$15,000,000 of 15-year bonds., Price—To be named
Proceeds—Together with $15,000,000 to $20,000,000

borrowings from the World Bank, for construction
large hydro electric power plant. Underwriters—

Kuhn, Loeb & Co.; Harriman Ripley & Co. Inc.; Lazard
Freres & Co., and Smith, Barney & Co. and associates.

Gathering Corp., Houston, Texas
C. Bintliff, President* announced

Offshore

David

are expected
to be received by the company for
purchase from it of $2,625,000 equipment trust cer¬
tificates, series E, to be.-dated June 1, 1956 and to

the

mature in

15 equal annual installments.
Probable bid¬
Halsey, Stuart & Co. Inc.; Salomon Bros. & Hutzler.

Montreal

April 23 it

Transportation Commission
was

reported early

pany

and

Savard

Hart

has filed

Commission

registration is expected

(jointly); Lehman

for

Brothers;

com¬

application with the Federal-Power

certificate

necessity

to?-build

submarine gas pipeline off-shore the coast

364-mile
Louisiana

from the

the State of

Sabine River to the Gulf Coast of

Mississippi. It is estimated that this gather¬

ing system will cost approximately $150,000,000.. Type
yet been determined,! but tentative

of financing has not
,

and
(probably
convertible into preferred stock at maturity, and

plans call for private sale of first mortgage bonds

public offer of about $40,000,000 of securities
notes,

common

New

stock).

Underwriter—Salomon Bros. & Hutzler,

York.

it Oklahoma Gas & Electric Co.
April 20 it was announced that stockholders will vote
May 17 on increasing the authorized preferred stock
from 240,000 shares to 500,000 shares and the authorized
common stock from 3,681,000 shares to 5,000,000 shares.
Underwriters — (1) For any common stock (probably
first to stockholders) — Merrill Lynch, Pierce, Fenner
Beane.

(2)

For preferred stock, to be determined by-

competitive bidding. Probable bidders: Merrill Lynch,
Pierce, Fenner & Beane and White, Weld & Co. (jointly);
The First Boston Corp.; Lehman Brothers and Blyth &
Co., Inc.
&

(jointly); Smith, Barne.y & Co.; Kuhn, Loeb

Co.; Harriman Ripley & Co. Inc.
Pacific Northwest

of
$11,500,000 of sinking fund debentures due 1976.
Underwriter—To be determined by
competitive bidding.
Probable bidders: Shields & Co.,
Halsey, Stuart & Co.

Inc.

Bids

(jointly),; Merrill Lynch, Pierce,
Peabody & Co. and White,.Weld & Co. (jointly); Equitable Securities Corp. and
Union Securities Corp. (jointly); Smith, Barney & Co.;I
Lehman Brothers and Riter & Co. (jointly); and Glore,
Forgan & Co.
&

Fenner

preferred stock also

bidding. Probable
Co. Inc.; Blyth & Co., Inc. and

by competitive

The First Boston Corp.

Underwriter—To

program.

issue and sell

bidders: Halsey Stuart &

this

Milwaukee Gas Light Co.
,,April 26 it was announced company plans to file soon
with the SEC for permission to issue and sell
$13,009,000

ders:

Light Co.

company

bonds).

(Minn.)

Co.

1986.

considering

be determined by
Probable bidders: Halsey, Stuart &
Co. Inc.; Morgan Stanley & Co.

* Inland Steel Co.

Jersey Central Power

mortgage

competitive bidding.

(jointly); Kuhn, Loeb &
Co.; Equitable Securities Corp.: Hemphill, Noyes & Co.
and Drexel & Co.
(jointly). Bids — Expected June 7.

;

struction

Weld & Co. and Shields & Co.

Feb.

company

April 19 company applied to the Michigan P. S. Com¬
mission for permission to issue and sell
$30,000,000 of
40-year debentures later this year. Proceeds—For con¬

(6/7)

struction

seek

first

Power

$20,000,000 of first mortgage bonds due:

year

Nov.

announced company has applied to the,
Indiana P. S. Commission for
authority to issue'and sell
$10,000,000 of first mortgage bonds. Proceeds—For con¬

will

additional

States

—To

that

Michigan Bell Telephone Co.

Houston, Texas

was

April 26, Joseph L. Block, President,

later this

Inc. and Union Securities
Corp. (jointly); Kidder,
Peabody & Co. and Drexel & Co. (jointly); The First
Boston Corp.

application has been filed
the FPC for permission to construct a 961
mile
pipeline system to cost $105,836,000.
Underwriters—May
be Blyth & Co., Inc., San
Francisco, Calif.; and Scharff
& Jones, Inc., New
Orleans, La.
it

Northern

Co.

Indianapolis Power & Light Co.

reported company plans to spend about

was

Jan. 19 it was announced company plans to

by competitive bidding. Probable bid¬
ders:
Smith, Barney & Co. and Goldman, Sachs & Co.
(jointly); Salomon Bros. & Hutzler; Harriman Ripley &

with

March 21

reported

Inc., Blyth & Co., Inc., and Merrill Lynch, Pierce, Fen- & Beane (jointly).
Bonds may be placed privately.

to be determined

Mo., and Hill, Richards & Co.,

Houston Texas Gas & Oil Corp.,
Feb. 29 it

sale

000

capital.

New

ner

(jointly); The First Boston Corp.
Metropolitan Edison Co.
April 16 it was reported company may issue in June
or
July, depending upon market conditions, about
$5,000,000 of preferred stock (in addition to about $5,000,-

was reported company plans to issue and sell
100,000 shares of convertible preferred stock (par $20).

working

and

Drexel & Co.

April 11 it

Proceeds—For

issue

(probably about $5,000,000 — in June or July).
Underwriter—To be determined by competitive
bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; White, Weld
& Co.; Blyth & Co., Inc.;
Kidder, Peabody & Co. and-

& Co., Inc., Pasadena, Calif.

Walker & Co., St.
Louis,
Los Angeles, Calif.

plans to

$20,000,000 to

was

Halsey, Stuart & Co.

$52,000,000 for new construction in 1956 and 1957 ($29,000,000 in 1956 and $23,000,000 in 1957). Gf the total
about $30,000,000 will be obtained from new financing,*
the type of which has not yet been determined. Under¬
writer—For any preferred stock, Central Republic Co. *

year,

insurance
more

•

Northern Indiana Public Service Co.

—

Probable bidders:

bidding.

March 13 it

Metropolitan Edison Co.
Feb.

October

during

Underwriters—To be determined by competi¬

Inc.; Salomon Bros. & Hutzler; Kidder, Peabody & Co.

$25,000,030 first mortgage*
Underwriter
To be determined by competitive
bidding. Probable bidders: Halsey, Stuart & Co. Inc.;
W. C. Langley & Co.; Blyth & Co., Inc. and The First
Boston Corp. (jointly); Blair &
Co., Incorporated and
Baxter, Williams & Co. (jointly); Smith, Barney & Co.'

borrowing negotiations of $30,000,000 from
companies, the company expects to sell not

Fall

plans to issue and sell

bonds

May 8 for the purchase from it of $4,620,000 equipment
trust certificates. Probable bidders: Haisey, Stuart & Co.

Treasury Department. Underwriters—
Rupe & Son; Estabrook & Co.; and

bonds.

mortgage

sell

increase I

Dallas

first

•

Co.

Long Island Lighting Co.
April 14 it was reported company

offered

stockholders before April,
bank loans, etc., and for con-

approved

the

and

England Power Co.

York, Chicago & St. Louis RR. (5/8) - Bids are to be received by the company up to noon (EDT)

expansion, estimated to cost an
Underwriter—Blyth & Co., Inc.,

Straus & Blosser.

General Tire & Rubber Co.
24

Steel

plans to merge its

company

The First Boston Corp.; Equitable Se¬
Merrill Lynch, Pierce, Fenner & Beane,
Kidder, Peabody & Co. and White, Weld & Co. (jointly).

during the first half of the current year. Proceeds
$77,745,000 indebtedness of company held by

Probably

struction program.

Feb.

Star

announced

was

Lehman Brothers;

—To retire

common

Proceeds—To repay

Lone

curities Corp.;

York.

the RFC

stock will be

$37,000,000.

Proceeds—To

24, E. B. Germany, Presided, announced that the
company plans the private and public sale of new secu-

Utilities

Corp.
April. 2, A. F. Tegen, President, said that the company 1
plans this year to issue and sell $28,500,000 of new bonds ;
and $14,000,000 of new preferred stock.
It is also pos¬

stock.

common

sell

Inc.; Kuhn, Loeb & Co., Salomon Bros. & Hutzler, Union ;
Securities Corp. and Wood, Struthers & Co. (jointly);

Jan.

Co., St. Louis, Mo.

Public

additional

used to pay for further
additional

Ma v.

Corp., St. Louis, Mo.
April 18 it was announced that company plans $5,000,000 ■
additional financing in near future. Proceeds—To go to >
Securities Investment Co., a subsidiary.
Underwriter—...
t

sell

Pipe Line Co. of America

reported company plans to issue and

England Electric System

1956.

tive

ther financing, the nature and extent of which has not
yet been determined, except it is not the present inten¬
tion

estimated

Gas

$10,000,000

plans fur¬

company

2 it was reported company plans to issue and
$15,000,000 of debentures due in 1966, $10,000,000
of capital debentures due in 1971 and about $3,500,000
of common stock.
Underwriters—Paine, Webber, Jack¬
son
& Curtis and Union Securities Corp.
Registration

April

sell

announced that it is

minimum

was

New

Kimberly-Clark Corp., Neenah, Wis.
Nov. 22 it

company

Jan. 3 it was announced company

Acceptance Corp.

.f 1*

common

Underwriter—The

—

Co.

Kay Lab., Inc., San Diego, Calif.
March 26 it was reported company plans to sell between
$900,000 and $1,000,000 common stock early in May.
Underwriter—Shearson, Hammill & Co., New York and
Los Angeles.

received the shares in connection with the sale of Strick
Co.

Light

reported company may soon offer addi¬

was

common

1-for-10

Price—To be supplied
Strick family, who

(par $1).

Proceeds—To

amendment.

tional

subsidiaries, Essex County Electric Co., Lowell Electric
Light Corp., Lawrence Electric Co., Haverhill Electric ;
Co. and Amesbury Electric Light Co., into one company 1
during 1956. This would be followed by a $20,000,000
first mortgage bond issue by the resultant company, the
name of which has not as yet been determined.
Under¬
writer
May be determined by competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.; Kuhn, Loeb
& Co., Salomon Bros. & Hutzler, Union Securities Corp.
and Wood, Struthers & Co. (jointly); Lehman Brothers;
The First Boston Corp.; Equitable Securities Corp.; Mer¬
rill Lynch, Pierce, Fenner & Beane, Kidder, Peabody & '
Co. and White, Weld & Co. (jointly).

has

it Fruehauf Trailer Co. (5/22)
April 30 it was announced a registration is expected
to be filed with the SEC on May 4 covering 228,000
by

New

Jan.

and

Under¬

Spring $35,000,000 of first mortgage bonds due
1976.
Underwriter—If determined by competitive bid¬
ding, the following may bid: Halsey, Stuart & Co. Inc.;
White, Weld & Co.; Lehman Brothers and Union Securities Corp. (jointly).

and

Co., New York; and Clement

Corp.

late this

increasing

proposal

Natural

bidders: Halsey, Stuart & Co. Inc.; The First
Corp. and Blyth & Co., Inc. (jointly); Equitable
Securities Corp.; White, Weld & Co. and Shields & Co.
(jointly); Kuhn, Loeb & Co., Salomon Bros. & Hutzler

Commission for authority to issue
of

the

Feb. 20 it

Boston

the Florida RR. & P.U.
and sell 25,000 shares
Price — To be determined

applied

company

approved

of $200,000,000. Underwriters—
Co.; Harriman Ripley & Co. Inc.; and
The First Boston Corp.

City Power & Light Co.

stockholders

Kuhn, Loeb

Probable

(5/23)

Utilities Co.

•

amount

bonded indebtedness of the company by $20,000,000. Un¬
derwriter — To be determined by competitive bidding.

Registration—Planned for June 14.

Florida Public

Kansas

construction expenditures planned to start in
the current year and to be completed in mid-1959 will

New York.
•

March

was reported an offering is expected in May
approximately 30,000 shares of common stock. Under¬
writer—Paine, Webber, Jackson & Curtis, Boston and

April

that total

issue and sell

Forgan & Co.; The First Boston Corp.; Union Securities
Corp. and Harriman Ripley & Co. Inc. (jointly). Bids—
11.

National Steel

Kaman Aircraft Corp.

$20,000,000 of first mortgage bonds. Underwriters—To
be determined by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Kidder, Peabody & Co. and
Merrill Lynch, Pierce, Fenner & Beane (jointly); Leh¬
man
Brothers and Blyth & Co., Inc. (jointly); Glore,

Expected July

April 16 it

(7/11)

Power Corp.

Corp.

studying possibilities for expansion that could
require financing, adding that the management had no
definite plan for the issuance of additional stock other
than those required for the two-for-one split but "the
situation could change."

Houma, La.

Flo-Mix Fertilizers Corp.,

;

White, Weld & Co., Blyth & Co., Inc. and Union Securities Corp. (jointly); Kuhn, Loeb & Co., Glore, Forgan
& Co. and Salomon Bros. & Hutzler (jointly).

(jointly); Blair

March 9, Leslie M. Cassidy, Chairman, said the corpora¬

2,230,800 shares.

May 3, 1956

•

Pipeline Corp*
March 20 C. R. Williams, President, announced that
about 280,000 shares of common stock (par $1) are to be
sold in connection with subscription contracts which
were entered into at the time of the original financing
in April of 1955.
Price—$10 per share. Proceeds—To-

Volume 183

Number 5530

w-.

The Commercial and Financial Chronicle

(21*73)
i v.

gether with funds from private sale of $35,000,000 addi¬
first mortgage bonds, and $10,000,000 of 5.6%

new

cumulative,preferred stock (par $50) first in ex¬
change for/outstanding 6% preferred stock (which is
callable at 115). (See also under "Securities in
Registra¬
tion" in a preceding
column.) Underwriters
May be
Stone & Webster Securities
Corp. and Dean Witter &
Co. if exemption from
competitive bidding is obtained.

tional

interim notes and borrowings from banks, will be used
to construction program. Underwriters—White, Weld &

South Carolina
Pan Cuba Oil & Metals

April

Corp.

(Del.)

March 9, S. C.

Walter E. Seibert, President, announced that
will soon file a registration statement with the

company

SEC preparatory to an equity offering planned

Offiee—120

to take

reported

was

financing

construction

1956

and .1957.

determined

Hampshire

and

and
are

determined.

additional

finance

bidding;

stockholders later this year of
stock

common

Tampa Electric Co.

•

was

This

June 20.

mortgage* bonds.
-Underwriter—To be determined by
competitive bidding.
Probable bidders: Halsey, Stuart & Co. Inc.;
Kuhn, Loeb
& Co,, American Securities
Corp. and Wertheim & Co.

(jointly); Salomon Bros. & Hutzler; Stone & Webster
Securities Corp.; White, Weld &
Co.; Union Securities
Corp. Bids—To be opened on Sept. 25.

sell
&

Electric

Wells

April

was

reported

company

later this

may

$50,000,000 of bonds. Underwriters—Stone

writer—The First Boston Corp.

additional

April 12 it

vote

common

l-for-10

Thiokol

& Webster

Halsey, Stuart

basis

and

80,500

pansion.

common

York.

downed

cluded.

If its 90%

JATO *

included,

holds,

earnings would
have been around $7.80 or so.
Prospects for the current fiscal
year

are

even

divisions

exciting.

understood

are

All

operating at capacity levels and it
appears earnings could mount to
a

now

share,as the capitalization is
constituted.

Particularly
further

impressive

the

potential

the

growth

rocket and guided missile sphere.

(Jet

which

Air

developed
Take

Off)

was

based

Assisted

used, it will be re¬
membered, to launch the carrierlaunched

Force

the

first

planes
attack

that

the

infancy,

the'

strong

enable

foothold

that

field.
The

active

•

ancl

*: imaginative

management,f under ! the \0'Neil
family, is not resting 6n these

accomplishments,

however.

The

is in negotiations
purchase of A. M. Byers, for
company

ample.

for
ex¬

Apparently, it is believed

overdone.

actual

True,

earnings

made up,

the

stock

be boosted, but
dilution will be

Finally, I like the stock iparticularly because the common-

may

with

some

capitalization

small

and

would
still
be
moderate * even
earning
power.
The though
the
planned
additional
present rising trend, and the
postock were issued.
It's
a
fasttential of General's new
projects,, moving > vehicle for substantial
point,, to such a development.
capital gains, and to my
mind,
^Therefore, I believe ' that on underpriced at the moment,
spare,

increased

both technical grounds

(the stock,,

has met good
support between 57
and 59 and is down on news that
is

not

necessarily bearish) and
dynamic prospects for further
long-range growth and earnings
gains, General Tire common af¬

•

■

*■

| gVlAI1 K (Jfl_ N()Uf
"

Incorporated

and

Company, 364 North Camden
Drive, announces that it has ac¬

S. Armed

Forces, and will

used, as well, in the first arti¬
ficial satellites to be launched
by
the United States.
The chemical and plastic opera¬
are also
expanding at a fast

tions

clip.

Latest

venture

move

with

was

Paso

joint

Natural

sheeting.

their

facilities

gain

pro¬

was

capitalization

quarterly payment)

the U.

Since
in

* Wyandotte Chemicals Corp.,
Wyandotte, Mich.
April 23 it was reported company plans to
issue and
se|l some additional stock in the near future. Under¬

ex¬

cilities.

are

and

family, probably with production
of plastic pipe, a
relatively new

Propellants
developed
by
Aerojet-General, fuel the princi¬
pal guided missiles now used by

motors,
siles

Underwriter—Blyth & Co., Inc., New York

Francisco.

fords unusually good value.
True,
dividend return (from the $0.50

components, including
propellants and test fa¬
mis¬

San

butional facilities of this company
can
be
fitted into the General

ranks

and

plans to issue and
Proceeds—For new equip¬

company

II.

rocketry

reported

that the

Gas
to
construct
an
$8,000,000
copolymer plant for production of
synthetic
rubber
near
Odessa,

rocket

was

Japanese mainland in World War

a
subsidiary,
largest factor in
this country devoted exclusively
to development and manufacture

Aerojet-General,

is considered the

Airlines, Inc.

stock

Proceeds—For

field, and is expanding

duction

growth

interesting.
Aerojet-General, incidentally, is

equity in Gen¬

record

writer—Lazard Freres & Co., New York.

tire

having

were

common

tire activities to
replacement
tires, rather than original equip¬
ment.
In
1955, it broke into the
original equipment passenger car

substantial

for

$5,000,000 of debentures.

ment.

••

unusually
famous

were

1955
earnings would have been
$7.67 a share, and on the basis of
its 100% ownership, which Gen¬
now

for

whollynot in¬

now a

eral Teleradio had been

eral

basis

sell
some

Underwriter—Probably Lehman Brothers, New

Security I Like Best

Teleradio,
subsidiary,

stock this year. Stockholders

increasing the authorized

its

adjusted for a 10% stock dividend
paid last December.
Profits
of
General

April 26

by 500,000 shares to 1,000,000 shares.

planning to offer

stock to its

stockholders

Corp.

reported company may issue and sell

common

April 19

Continued jrom page 2

The

Chemical

was

announced company is

was

62,576 additional shares of
stockholders

its

May 9.

Western

April 9 it

Power Co.

offered

& Co. Inc.

May

approving a proposal to increase the authorized
preferred stock by 100,000 shares (par $100), of which
it is planned to issue 50,000 shares later in 1956. Under¬

Pacific

Bank

right to subscribe for 100,000 additional
capital stock (par $20) on the basis of one

held; rights to expire on
Price—$75 per share.
Proceeds—To increase
capital and surplus. Underwriters—Dean Witter
& Co..
Blyth & Co., Inc., and The First Boston

year

Sierra

the

share for each 4%

new

Fargo Bank, San Francisco, Calif.

April

Philadelphia, Pa.

Securities Corp., White, Weld & Co. and

Corp.
vote

New York.

Tennessee Gas Transmission Co.

Halsey, Stuart & Co. Inc.; Salomon

announced stockholders will

Products, Inc., New York
was reported
early registration is expected
shares of common stock Proceeds—To
selling
stockholders.
Underwriter—Granbery, Marache & Co.,

was

Jan.

was

Food

.of 60,000

reported registration is expected
early
May of sufficient common stock to raise approxi¬
mately $500,000.
Proceeds—To a selling stockholder.

Probable

Rochester Gas

Vita

April 23 it

Underwriter—Stroud & Co., Inc.,

Bros/ & Hutzler.

(9/25)

announced company plans to issue
and sell
of first and refunding

was

,$20,000,000

Virginia Electric & Power Co.
Feb. 6 it

company

Reading Co. (5/24)
April 5 it was reported company plans late in May to
issue and sell $6,600,000 equipment trust
certificates.
bidders:

Underwriters—William

Blair & Co., Chi¬
111., and The First Boston Corp. and Carl M.
Loeb,
Rhoades & Co., both of New York.
Registration—Ex¬
pected about June 1.
Offering—Tentatively planned for

Taylor Fibre Co., Norristown, Pa.
April 9 it

two-for-one stock split, provide for
pay¬
stock dividend and the sale
to stock¬

cago,

(10/1)

reported

100%

stockholders.

Underwriter—None./

may issue and sell
1, $10,000,000 of first mortgage bonds. Pro¬
ceeds—For construction program..
Underwriter—To be
determined at competitive
bidding.
Probable bidders:
Halsey, Stuart & Co. Inc.; Stone & Webster Securities
Corp.; Goldman, Sachs & Co.; Kidder, Peabody & Co.

large expansion, the company says, can be
wholly by debt and from internal sources. Un¬
derwriter—If determined by competitive
bidding, may
include Halsey, Stuart & Co.
Inc.; The First Boston Corp.

some

(with

16 it

Feb.

financed

basis

holders of 100,000 additional shares on
the basis of one
new share for each two
shares to be held. Continental
Casualty Co., which owns 51% of the
presently outstand¬
ing stock will reduce its holdings and Continental
Assur¬
ance Co., which owns about
24% would sell shares to

$20,000,000 budgeted for

ment

around Oct.

Puget Sound Power & Light Co.
Feb. 15 the company announced that it estimates that
its
construction
program
for the
years
1956-1959
will
amount to $87,000,000,
including

rata

pro

announced

stockholders will vote
May 14
changing the capital stock from 250,000 shares of
$4
value to about 1,100,000 shares of
$2 par value, in

order to effect

Porter-Stacy Co., Houston, Tex.

(jointly).

March 21

par

was announced
company plans to offer pub-*
licly to Texas residents 75,000 shares of
capital stock.
Price—$1.50 per share. Business—To produce, sell and
distribute syndicated films for television.
Underwriter—

probable bidders include Halsey, Stuart & Co. Inc.; The
First' Boston Corp.; Kuhn, Loeb &
Co.,~ and Lehman
Brothers (jointly); Morgan Stanley & Co. and Drexel &_

1956.

Spencer Telefilm Corp.,
Beaumont, Texas
Jan.

construction program. Underwriters—For
any debenture
bonds — may be determined by competitive

Co.

(6/20)
April 12 it was

is considering is-.*

company

oversubscription privilege).

the time of sale

Proceeds—To help

sale to

and

suance

Co.

announced

mortgage

United States Life Insurance Co. of
New York

1956

York; Wiliam R. Staats & Co., Los Angeles, Calif.;
California Co.* San
Francisco, Calif. Bond*
to be placed privately.

was

plans to issue and
$35,000,000 to $40,000,000

company

1956,

(jointly).

company plans to sell in

Southern Union Gas

April 16, Lyle McDonald, Chairman, estimated that re¬
quirements for new capital this year will be approxi¬
mately $80,000,000 to $85,000,000. The types and amounts
not been

■

14,

Co.

First

April 19 it

Public Service Electric & Gas Co.

have

announced

was

•,

Power

stocks). Proceeds—For construction pro¬
Underwriters—For stocks: Hornblower &
Weeks,

New

—

and

.■*

Nevada

Sept.

repay

common

gram.

—

securities to be issued

•

announced

was

and collateral trust bonds.
Proceeds—
bank loans and-for construction
program.
Underwriter—To be determined by
competitive bidding.
Probable bidders: Halsey, Stuart & Co.
Inc.; Lehman
Brothers and Bear, Stearns & Co.
(jointly); Blyth &
Co., Inc. and Union Securities Corp.
(jointly); The First
Boston Corp.;
White, Weld & Co. and Shields & Co.
To

approximately $10,000,000 of new securities (probably
$7,000,000 first mortgage bonds and $3,000,000 preferred

$8,000,000 of first mortgage bonds. Proceeds
To pay
cost, in part, of construction program. Underwriter—To
be determined by competitive
bidding. Probable bidders:
Halsey, Stuart & Co., Inc.; Kidder, Peabody & Co. and
Blyth & Co. Inc. (jointly); Equitable Securities
Corp.;
White, Weld & Co.; The First Boston Corp. and Coffin
& Burr, Inc. (jointly); Lehman Brothers.
Bids
Ex¬
pected sometime in June.

new

Southern

Feb. 25, it was reported
company plans to issue and sell

of the

V ;

prior

first

was

Nov. 7 it

Public Service Co. of New

sell

Fenner & Beane.
.

Electric Co.. (Missouri)

April 23 it

•

by competitive bidding. Probable bidders:
Halsey, Stuart & Co. Inc.; Blyth & Co., Inc.; The First
Boston Corp.; White, Weld &
Co.; Merrill Lynch, Pierce,

Harriman Ripley & Co. Inc.

determined

competitive bidding for any bonds. Probable bid¬
Halsey, Stuart & Co. Inc.; Lehman Brothers, Stone
& Webster Securities Corp. and Union Securities
Corp.
(jointly); The First Boston Corp.; Lee Higginson Corp.;
Dillon, Read & Co. and Johnston, Lemon & Co. (jointly);
ders:

Corp.

was

Union

reported company may in the Fall offer
$15,000,000 of first mortgage bonds. Underwriter-^To be

•

reported company may offer an issue of
up to $7,000,000 of debentures.
Underwriter—Hirsch &
Co., New York.

Southern Counties Gas Co. of California

Jan; 30 it

some

Proceeds—For

Underwriter—To

program.

plans

UM & M T-V

April 2 it

bonds.

Underwriter—Kidder, Peabody & Co., New York.

company

program.
The company proposes to obtain a
part
its new money requirements from the
sale of $5,000,000 of preferred stock and the balance from the
'" private sale of $5,000,000 principal amount of

additional

McMeekin, President, announced that

Potomac Electric Power Co.

April

Electric & Gas Co.

tion

Broadway, New

May be placed privately: Pro¬
outstanding $60,000,000 bank

expected that $10,000,000 of new money will be re¬
quired in connection with the company's 1956 construc¬

..,

debentures in November.

ceeds—To retire presently
loan.

place later this year. Business—To explore, drill and
operate oil, gas and mineral properties in the United
States, Cuba and Canada.
York, N..Y.,. .I;' .
•-

■M tf

Transcontinental Gas Pipe Line Corp.
'j?April 17, Tom P. Walker, President, announced that ne¬
gotiations had been cpmpleted for the sale of
$40,060,000
first mortgage pipe line bonds in
May and $20,000,000 of

—

Co.; Kidder, Peabody & Co.; The Dominion Securities
Cor pi; and Union Securities Corp.
Registration —Ex¬
pected soon.
•
-

t..

Texas.

As
as

producer

the

Originally,

is,

tion of

possible

Byers, provision

issuance

acquisi¬

was

made

additional

some

stock.

Announcement of plans to
increase the capitalization brought

selling

into

earnings into
paying out

than

tion at the

not

large,

plowing back'
growth, rather
large propor¬

expense

of expansion.

Eventually, I would expect to
the

stock

higher,

selling

once

the

see

considerably
aggressive

preciated by investors, and would

The

confined

reflects

growth trend has

around

lilm

and

this

been

integrated

now

but

the market.
General Tire common, which had

some

York

General

facilitate

64, dropped to 57.
At this writing, it is just under
59, after having fluctuated in a
two-point range for some time.

General

largest
plastic

expanding field.

for

pipe making and distri¬

issue

Stock

strikes

listed

that

fully

ap-

the dividend to be upped

substantially

when

newly

ac-

HILLS, Calif.—The
Taylor Corporation,

Lynden
doing
business

quired and
vestment

will

continue

business

Company,

of the former

and

the

in¬

Taylor and

partnership,

has been dissolved.

Gifford

Taylor

which

All personnel

partnership, except

Phillips and Roland Ma-

roney, will be associated with
new

the

organization,
de¬

Officers of the

Howard

corporation^

Taylor,

are

President;

the

New

the

selling

quired facilities have added their

Lorenz

strength to

Exchange.
me

expect

been

BEVERLY

Deckert, Vice-Presidents; and

the company's

niably large earning

unde-

power.

Carol

Evers

Slott,

and

Harlan

Secretary-Treasurer.

The Commercial and Financial Chronicle

(2174)

The following statistical tabulations

Indications of Current

latest week

Business Activity

week

month available.

month ended

Latest
AMERICAN

Week

Ago

or,

Ago

of that dates'

are as

*100.5

97.7

96.6

May

§2,450,000

*2,473,000

2,406,000

2,331,000

7,129,900

7,155,900

117,436,000

7,163,265
7,970,000

6,831,800

7,551,000

7,099,000

Apr|, £0

24,599,000

25,417,000

25,788,000

23,974,000

April 20

2,044,000

2,067,000

2,533,000

2,250,000

(bbls.)
-Apri 20
Residual fuel oil output (bbls.)
_____
-_-——-——April 20
Stocks at refineries, bulk terminals, in transit, in pipe linesFinished and unfinished gasoline (bbls.) at_
April 20

11,982,000

12,170,000

12,321,000

10,382,000

8,182,000

8,178,000

8,628,000

Year

Month

§99.5

Month

Ago

8,005,000

oil

Crude

(net tons)

gallons eachj
—
Ap™ £0
Crude runs to stills—dally average (bbls.)—————April 20
42

(bbls.)
(bbls.)

output

Gasoline
Kerosene

output

___

fuel oil output

Distillate

————

196,801,000

17,607,000

17,710,000

61,926,000

60,832,000

65,912,000

CONSTRUCTION

—

32,788,000

34,047,000

Public

State

and

742,053

679,867

660,741

coal

Pennsylvania

and

$459,450,000
245,184,000

$458,531,000

(tons)—,

149,829,000

214,266,000

163,676,000

119,912,000

158,874,000

14,620,000

29,917,000

55,392,000

9,900,000

10,050,000

9,930,000

SYSTEM—1947-49 AVERAGE

ELECTRIC

Electric

output

553,000

545,000

496,000

409,000

178,296,000

:■

April 28
INDUSTRIAL)

AND

—

212

263

252

April 24

5.179c

5.179C

5.179c

Pig iron (per gross ton)

April 24

$60.29

$59.71

$56.59

Scrap steel

April 24

$55.50

$52.50

$35.67

April 26

INC.-

METAL

(per lb.)

(per gross ton)

PRICES

Electrolytic

(E.

April 25
April 25

Zinc

(St.

Louis)

(East St. Louis)

46.500c

47.125c

47.875c

98.500c

{98.875c

98.625c

April 25
April 25

16.000c

number

U. S.

15.800c

13.500c

STEEL

Contracts

91.500c

Shipments

closed

;

14.800c

LIFE

i2.oooc

INSURANCE

LIFE

93.82

96.28
109.24

Ordinary—.
Industrial—.:.———•

110.52

112.93

106.92

106.74

109.06

104.83

106.92

109.60

100.49

102.13

103.47

103.80

105.00

105.17

105.40

105.69

100.04

107.44

107.62

2.99

3.03

2.98

2.77

3.46

3.33

3.30

3.14

3.01

3.46

3.34

3.72

3.62

3.49

3.54

3.39

3.52

1
1

3.45

3.44

3.30

3.40

3.41

3.30

3.15

420.2

424.6

415.5

241,807

247,625

271,210

235,321

281,098

285,493

285,966

263,794

100

April 21

557,227

602,710

554,885

483,631

INDEX—
107.97

108.62

109.06

April 27

dealers

EXCHANGE

(customers'

Short

1,711,897

1,239,287

1,453,569

$90,602,135

$65,796,336

$75,979,537

$47,931,382

1,103,530

1,296,296
6,527

1,380,984

1,092,462

1,289,769

$70,967,466

$55,588,549

$64,306,337

$43,803,793

April

342,490

293,700

346,990

April

3~4~2~490

293,700

346"990

238T90

;

8,609

April

536,470

422,380

653,300

474,190

533,670
14,647,090

9,547,130

April

14,763,510

11,998,350

15,180,760

9,865,350

Total sales

TRANSACTIONS FOR ACCOUNT OF MEM¬
BERS, EXCEPT ODD-LOT DEALERS AND SPECIALISTS:
Transactions of specialists in stocks in which registered—

Short
Other

Total

1,160,660

312,770

189,890

1,191,400

1,396,480

972,080

1,863,350

1,463,560

1,709,250

1,161,970

7
7

39,990

25,000

21,860

409,510

316,200

326,040

201.370

327,790

362,210

449,500

341,200

347,900

633,258

580,972

690,430

93,720

54,870

97,180

806,002

671,751

764,521

899,722

766,621

861,701

April

(1947-49

2,921,828

2,305,352

2,817,890

commodities

other

and

foods

barrels

537,010

392,030

431,810

256,560

2,675,562

2,179,351

2,487,041

*57.3

53.0

28.7

•28.6

26.7

36.2

*36.2

'34.3

5.7

contribution

for

foreign

special

in¬

income

and

income..

income

5.0

7.2

and

dividends

payments

7.2

6.8

49.5

rental

*49.2

48.8

28.3

*28.1

17.8

:
—

—

298.8

25.3

17.7

17.0

*298.6

277.7

(BUREAU OF MINES)—

January:
(barrels)

(at

21,440,000

mills

(barrels)—:

(per

cent)

23,075,000

20,223,000

13,273,000

month—barrels)

16,979,000

13,314,000

25,456,000

;

- 17,536,000

'23,437,000

RECEIVED
U.

230

FARMERS

DEPT.

—

226

INDEX

farm

—

3,212,572

2,571,381

2,918,851

AGRICUL¬

April 24
April 24
April 24

88.6

88.0

87.4

92.8

101.2

100.7

100.1

102.8

77.5

76.6

73.8

120.8

115.8

15:

fresh

244

■

grains
grains

and hay

245

crops

Potatoes

Dairy
Meat

and

262
269
198

220
•

239

212

204

products

239

264

196

175

200

453

—

243
-

173

223
211

Oil-bearing

262

174

Fruit

243

231

290

452

437

221

products

220

243

250

256

248

221

animals

215

260

84.1

♦121.3

March

239

vegetables,

Food

1,875,404

113.7

products

267

1,618,844

113.5

121.4

April 24
of

Jan. 1, 1956, as against Jan.
1. 1955 basis of
Monthly Investment Plan.
{Corrected figure.

86.3

57.3

industries

CEMENT

112.9

110.4

Poultry

crude

125,828,319

runs.

tons.

§Based

tNumber

on new

annual capacity of

orders

not

reported

128,363,000 tons as
since introduction of j

and

187

STATES
OF

EXPORTS

AND

199

226

281

$1,343,000

UNITED

188

224

eggs

Wool

BUREAU

754,000

200.3

*94.1

receipts,

interest

Livestock

than farm

Ulncludes

$293.2

*216.2

Commercial

STATES

Crops

1,752,830

April 24

Meats

*Revised figure.

UNITED

COMMERCE)—Month
•$312.7

transfer

NUMBER

All

100):

products
Processed foods
All

PRICES

Farm

2,017,179

93.8

Tobacco

commodities

87,677

2,355,166

216.0

Feed,

April

DEPT.

104,348,807

2,341,533

other collateral

83,103

$313.1

Capacity used

Commodity Group—
All

175,806,386

105,443,575

75,611

Govt, issues

209,558.874

103,832,165

U. S.

505,664

April

48,556

335,933

1,022,005

223,887,163

bonds

and. of

445,394

April
U.

34,499
340,905
913,175

total

from

60,270

—April

—

31,334
959,837

producing industries

Stocks

385.880

April

sales

<■

-.342,027

billions):
income

Shipments

207,770

April

Total sales

S.__'

balances

listed

TURE— 1910-1914=100—As

credit

nonagricultural income

Month of

206,290

April

sales

__.

;

6,400

406,940

April

WHOLESALE PRICES, NEW SERIES

free

listed

salary,

Production

floor—

sales

—

1,765,250

272,160

April

LABOR

1,396,590

403,300
1,460,050

April

Total round-lot transactions for account of members—
Total purchases
Other

1,881,630

April

sales

$2,700,929

894,597

(in

labor

Personal

floor—

Total sales

Short

customers

Industries

PORTLAND

April

purchases

$2,774,420

„

April

transactions Initiated off the

employees

Total

April
April

Total sales

325

5.7

and

Proprietors

ROUND-LOT

Total

value

personal

Other

318.22"

11,524.160

Other

102,992

278

$2,817,297

surance

661,650

sales

791,280

102,384

■.

Government

14,101,860

sales

560,924

106,381

;

net debt balances...

customers'

Distributing

Less

Other

663,586

583,169

MANU¬

: -

hand and in banks

Service

Short

$29,817,000

March:

carrying margin accounts—

extended

Wage

294,180

April

the

$30,228,000

FROM

omitted):

February

Total

April

sales

24,649

434

cars..

PERSONAL INCOME IN THE

dealers—

purchases

*27,023

EXCHANGE—As of March

(DEPARTMENT

Other

Total

(OOO's

Commodity

Total sales

$43,256

689,984

SALES

trucks

borrowings
Member borrowings

238,190

sales

19,228

*$46,299

$24,028

869,416

shares—Total sales

Other transactions initiated

STOCK

Market

3,505

April
April

purchases

*19,709

buses

passenger

Market value of

872,921

11,068

1,389,593

Short sales

Other

*$26,590

$30,163,000

omitted)__

S.—AUTOMOTIVE

Cash

April

Short sales

dollars):

vehicles..!

motor

Credit

919.857

STOCK SALES ON THE N. Y. STOCK
EXCHANGE AND ROUND-LOT STOCK TRANSACTIONS
FOR ACCOUNT OF MEMBERS
(SHARES):
Total round-lot sales—

Total

SERIES—

$46,800

ASSN.—Month

TOTAL ROUND-LOT

•

Total customers'

—April

sales

Other

Number

by dealers—

Round-lot purchases by
Number of shares

$3,358,000

$26,941

FACTORY

Member

sales

NEW

(millions

(OOO's

Total

other sales

Number

Member firms

April

Customers'

Dollar value
Round-lot sales

Feb.

VEHICLE

Number

106.91

April

short

$3,742,000

544,000

19,859

Number

COMMISSION:

Dollar value

620,000

'/>••

Total number of

purchases)—t

Odd-lot purchases by dealers (customers' sales)—
Number of orders—Customers' total sales
Customers'

PLANTS

STOCK

$2,194,000

450,000

CIRCULATION—TREASURY DEPT.

NEW YORK

100

$2,445,000
847,000

—

FACTURERS'

at end of period

SECURITIES

27,165

MOTOR

STOCK TRANSACTIONS FOR ODD-LOT ACCOUNT OF ODD-

—

285,434

524,000,:

Sales

398.5

May

Percentage of activity

227,789
_

$2,588,000
;

3.17

April 21
April 21
April 21

(tons)
(tons)

sales

■_

MONEY IN

ASSOCIATION:

Orders received

Number

„

*285,380

;

Total

3.31

May
May

MOODY'S COMMODITY INDEX

EXCHANGE

*331,497

306,760

3.19

May

Group

365,517 y

COMMERCE)

February

Nondurables

3.14

May

3.21

May

Baa

Odd-lot

OF
of

Durables

3.22

$3,707,000

Month

3.35

SPECIALISTS

6,878,000

Inventories—

3.34

AND

595,000

(DEPT.

110.34

DEALERS

9,323,000

Total

109.97

107.62

May

LOT

16,201,000

*9,775,000

MANUFACTURERS' INVENTORIES AND SALES

■.<-

*16,821,000

104.31

3.31

AVERAGE

•

146.6

110.52

1949

-V
V

7,046,000... *7,046,000

Group

May

PRICE

103.3

;•

9,761,000

107.09

OIL, PAINT AND DRUG REPORTER

*157.9

16,807,000

CONSTRUC-

92.79

May

Unfilled orders (tons)

7,375,000

*107.0

INSURANCE—Month of February

omitted):

107.62

Aaa

Production

5,403,000

.-•••

PURCHASERS—INSTITUTE

May

NATIONAL PAPERBOARD

158.4

> •' •-

(tonnage)—estimated

-May

Group

'• V '

(AMERI-

(tonnage)—estimated

104.83

Utilities

*5,526,000

15.000c

93.75

May

Railroad

*7,703,000

•

STEEL

107.44

Average corporate

Industrials

7,679,000

___—ii——__v

STRUCTURAL

INSTITUTE

37.075c

15.800c

13.500c

15.800c

3.46

Public

-12,778 000

•

104.83

Group.;

*13,229,000

-—-

May

Government Bonds

Group

13,199,000

11,485,000

104.83

MOODY'S BOND YIELD DAILY AVERAGES:

459.4

Avge.=100)—

goods

Lay

Group

481.7

DEPT.

employees in manufac-

May
Utilities

9,653,000

469.6

Average=100)—All

Baa

Industrials

11,740,000

___„—

May

I
.

Public

19,365,000

106.7

(1947-49

/lay

Government Bonds

Railroad

22,390,000

19,428,000

TION)—Month of March:

(OOO's

Aaa
Aa

21,971,000

April 25

corporate

19,350,000

_„i—

vlay

19,365,000

<■

5,520,000

:—

Nondurable goods

MOODY'S BOND PRICES DAILY AVERAGES:

Average

19,418,000

«■

21,997,000

workers)

(1947-49

turing industries—

CAN

45.775c

136 616

l,797,'l92

1,500,113

19,350,000

place Mar.

SERIES—Month

(production

goods

Indexes

Durable

35.700c

46.525c

46.150c

April 25

152,625

1,250,523

All manufacturing

copper—

refinery at
Export refinery at
Straits tin (New York)
Lead (New York) at

151,622

PAYROLLS—U.

Indexes

FABRICATED

r*.

Domestic

Lead

4.797c

J. QUOTATIONS):

•

893 238

1,869,607

11,855,428

manufacturing

Estimated
-

steel

760,590

1,759,389
16,524,478

—

goods

manufacturing

IRON AGE COMPOSITE PRICES:
Finished

AND

manufacturing

All

236

BRAD STREET,

916,396
1,730,102

15,462,034

of March 31——

LABOR—REVISED

Nondurable

9,699,000

10,992,000

10,894,000

10,867,000

March:

DUN

$77,300

March—_

Active spindle hours per spindle in

Employment

(in 000 kwh.)

*$82,800

$83,500

COM¬

__—

INSTITUTE:

(COMMERCIAL

spindles active

Payroll
FAILURES

month

Durable

112

114

113

April 21

SPINNING (DEPT. OF COMMERCE):
Spinning spindles in place on March 31
Spinning spindles active on March 31—1
Active spindle hours (OOO's omitted) Mar. 31

RESERVE

100

22,400

COTTON

308,490,000

All

EDISON

11,700

24,100

consuming establishments as of March 31
public storage as of March 31

8,542,000

386,544,000

DEPT.

—

Stocks March 31—1

124,484,000
25,557,000

$536,373,000

3471,686,000

April 21
April 21

—

INDEX—FEDERAL

SALES

$43,300

*12.400

Linters—Consumed month of March

150,041,000

$525,982,000

LINTERS

EMPLOYMENT

lignite (tons)

anthracite

DEPARTMENT STORE

AND

Cotton

COAL OUTPUT (U. S. BUREAU OF MINES):
Bituminous

*$46,300

COM-

February

dollars):

MERCE—RUNNING BALES:

613,598

April 26

municipal

Federal

OF
of

$178,924,000

12,500

DEPT.

—

SERIES—Month

$162,087,000

24,200

$189,804,000

$46,800

NEW

Consumed

701,432

662,943

763,437

697,248

April 26
April 26
April 26

construction

thousands)—

INVENTORIES

COTTON

ENGINEERING

construction

SYSTEM—Month

Wholesale

construction

Manufacturing

April 26

Private

Retail

44,619,000

NEWS-RECORD:
Total

(in

(millions

65,678,000

32,829,000

192,933,000
18,070,000

freight loaded (number of cars)—
Apr.{ oi
freight received from connections (no. ef cars)—April 21

ENGINEERING

GOVERNORS

179,741,000
20,429,000

195,059,000

Vpril 20

Revenue

March

MERCE

ASSOCIATION OF AMERICAN RAILROADS:
Revenue

Total

April 20
April 20

at
—:
Distillate fuel oil (bbls.) at
Residual fuel oil (bbls.) at
Kerosene (bbls.)

CIVIL

DEBITS—BOARD

BUSINESS

(bbls. of

condensate output—dally average

and

BANK

THE FEDERAL RESERVE

INSTITUTE:

AMERICAN PETROLEUM

either for the

are

Latest

steel

Equivalent to—
Steel ingots and castings

quotations,

cases or

Year

May

Indicated

Month

Week

AND STEEL INSTITUTE:
operations (percent of capacity)

IRON

production and other figures for th&

cover

Dates shown in first column

that date,

Thursday, May 3, 1956

<..

►$1,276,200

•$1,237,400

1,078,000

*1,072,900

*849,800

IMPORTS

CENSUS—Month of February

(OOO's omitted):

Imports

Number 5530

Volume 183

.The Commercial and Financial Chronicle

(2175)

A. L

McDougal, Jr.; With/: /

(Special to The Financial Chronicle)

;

Herbert

South

McDougal

was

of Municipal
was

Sims &

La .Salle

formerly

'■

Joins King Merritt

PORTLAND,' Me.

Gordon
with

has

King

Casco

become

Bank

Co.,

Building.

; /

Keljikan,

meeting

Seventeen

share
able
at

(in

the

and

held this

business

day, a dividend

(17V2c)

declared

was

June

per

DIVIDEND NOTICE
Trustees of Title Guarantee

pay¬

and Trust

29,

clared

Company have de¬

dividend of 30 cents
as the second regu¬
quarter-annual dividend for 1956,
payable May 25, 1956 to stockholders

1956.

per

MICHEL,

share designated

lar

President and Treasurer.

GUARANTEE

and Trust Company

Iflftifl

1956, to shareholders of record

DIVIDEND

TITLE

1956

Directors

Cents

Funds)

23,

155

Board

One-half

Canadian

July 30,

NO.

the

Dome Mines Limited,
of

NOTICES

of record

NO.

DIVIDEND

and Smelting Co.,

LOUIS,: Mo.—^William
is

H.
Hill

mem¬

the

New

York

and

Board

Hathaway
-*

June

of record

Mid¬

Exchanges. Mr. Mans¬
previously^ with Dempsey-Tegeler & Co. / • V
-

Berkshire

declared a
share on the

per

payable

uotaers

Inc." has

cents

Stock,

Directors

1956,

May 7,

on May 7, 1956.
WILLIAM H. DEATLY
a

President

and

dollar

Common

Stock-

of record at the close of business

President

The Board of Directors this

day declared •
quarterly dividend of thirty cents (30f) per
on the
outstanding Common Stock of
this Company, payable
June 20, 1956, to
stockholders of record on May
31, 1956.

J. F. McCARTHY, Treasurer.

Pipe end Foundry Coapaay

Burlington, N. J., April 26, 195f
•

May 11, 1956.

CHACE, JR.

April 26, 1956

United States

share has been declared on the
Capital Stock of this Company, pay¬
able June 11, 1956, to shareholders
per

1956.

MALCOLM G.

Limited

one

twenty-five cents ($1.25) (Canadian)

dividend
to

Dividend

The

with

now

west Stock

Robert

April
DIVIDEND

business.

CLIFFORD W.

Brothers, Security Building,

was

Mansfield
bers

Building.

| /With Hill Brothers

previously with Jay W. Kaufmann field
& Co. and Keller & Co:

securities

•••- a
are

Hudson Bay Mining

ST,

Inc.,

/He

gage

DOME MINES LIMITED

en¬

Treasurer. V. /

j(8pecial to The Financial Chronicle)

associated

Merritt ,&

Fifth

•

Sidney

—

276

Avenue, New York City, to

AUGUSTA, :Ga.—F. S. Boyer is
now; with Sellers, Doe & Bonham,

.: v

(Special to The Financial Chronicle) j

offices

NOTICES

been

(Special to The Financial Chronicle)

Marion

DIVIDEND
DIVIDEND

has

President and Secretary; and John
G. Keljikan, Vice-President: ana

With Sellers, Doe

Ltd.

Officers

partner in McDougal and

Company.

Investors,

New York Stock Exchange.

Mr.

Securities, Inc. and

Oil

formed with

officer

Form Oil Investors

Street, Northwest, members oftfre

Co., Inc.,

Street.

ATLANTA, Ga. —William R.
Porterfield has been added to the
staff of Courts & Co., 11 Marietta

Dougal, Jr. has become associated
39

(Special to The Financial Chronicle)

/CHICAGO, 111.—AKred L. Mc¬
With

Joins Courts Staff

Herbert J. Sims & Co.

•

was

The transfer books will remain
open.
United States Pipe

Foundry Company

and

JOHN W. BRENNAN, Secretary <5* Treasurer

DIVIDEND

HARBISON-WALKER

NOTICES

Bayuk Cigars Inc.

REFRACTORIES COMPANY
Pittsburgh

AMERICAN & FOREIGN
TWO

COMMON
;

RECTOR

POWER COMPANY INC_

STREET, NEW YORK 6.

STOCK

DIVIDEND

N..Y.

■

not

be dis¬

The Board of Directors of the

tributed

Company, at a meeting held
this day, declared a quarterly

Preferred .and Common Stocks

dividend
share

cents

the

for the

for payment June 11, 1956 to
the shareholders of record

have
new

der

are

the

tion

the Common Stock

this

Corporation

such
exchanged

entitled

are

de¬

was

May 31,

1956.

Checks

April
Board

ending

June

will

Treasurer

April 26, 1956

Secretary

CORPORATION

able June
record

Aircraft

per

Radio

June

1956.

Treasurer

No. 10

the

declared

no par

Company,

pay¬

5, 1956 to shareholders of
the

regular dividend of

Twenty-five cents ($0.25)
on

payable

May

(20c)

1956, to
May

18,

stockholders of record

business

9, 1956,
JAMES

M. J. FOX, Jr.

DULLEA

stock

payable May 16,
holders

April 26, 1956

H. M.

the

Treasurer

May

April 28, 1956

the

NATIONAL DISTILLERS

to stock¬
the

company,

1956

record

business

Secretary

twenty

per

stock

common

Corporation

dividend

common

*/■>.

PRODUCTS

1956.

CORPORATION

KINGSLAND, Secretary

;,..

THE FLINTK0TE COMPANY

New York

Common Stock

,$0.35

has

declared

been

stockholders

acr

EASTERN

the

INDUSTRIES

INCORPORATED

LOUISIANA

business June

quarterly dividend of $.60 per
has
been declared
on
the

A dividend of 621/2

the

4 Per

vertible
of

COMPANY, INC.

this

been
June

preferred

payable

1956,
on

June

business

the outstand¬

stockholder*

May

11,

1956.

PAUL C. JAMESON

April 26, 1956.

Treasurer

1956.

WILLIAM FEICK, Jr.,
Treasurer

$50.00 par

value 5% cumulative

SOCONY MOBIL

the

has de¬

The transfer books will not close.

15, 1956, to stockholders of record
at

record

Preferred Dividend No. 197

Directors

quarterly dividend of

25c per share

June

1, 1956.

Common Stock

ing Common Stock, payable

the close

of record at

Board

clared

Stock payable June 15, 1956, to

Secretary

NOTICE

DIVIDEND

The

Preferred

$4 Cumulative
t■

SHREVEPORT.

20, N. Y.

quarterly dividend of $1.00 per

sTz}<J~7

OIL.

share in U. S.

per

declared

Montreal

April 24, 1956, the Directors

cents

close of

Series;.
.$1.25
Convertible Series..$1.18%
Convertible Series, a
.$1.12%

TEXAS

business

The Board of Directors has

May 11, 1956.

declared

Preferred

quarterly divi¬

value shares of this

Company has declared

First Preferred Series//. $1.37%

Preferred

Sixty Cents

currency was

Preferred Stock,

5.50%
Stock, 5.00%
Stock, 4.75%
Stock, 4.50%

the

Bloomfield, N. J.

declared

CORPORATION

Dividend No. 93

stockholders of record

Security

has

NOTICE

Balgooyen,

Amount
r

DIVIDEND

following quarterly dividends, all payable

Directors

DIVIDEND

April 26, 1956

/ ■/ \

25< per share on the out¬
standing Capital Stock of the Company
of the par value of $12.50 per share,
payable July 2, 1956, to holders of record

ALUMINIUM LIMITED

Common andPre/erred Dividend Notice

Board

dividend of

un¬

Boonton

DIVIDEND NO. 236
The
a

Philadelphia, Pa.

New Jersey

May 7, 1956:

AND LIGHTING COMPANY. INC.

J. T. CULLEN,

April 27, 1956

business

formerly

April 24, 1956

dend of

CRONMILLER, JR.
President and Secretary

INDUSTRIES, INC.

THE SAFETY CAR HEATING

Charles L. Nace

AIRCRAFT RADIO

June 1,, 1956,

Vice

urged to communicate with the Company.

The Board of Directors of the

for

quarter
1956 DIVIDEND of ONE and
ONE-HALF
(1V?%)
PER CENT or $1.50
per
share on
PREFERRED
STOCK,
payable July
20, 1956 to shareholders of record July 6, 1956.
Also dpclared
a
DIVIDEND of
70c per
share
on
COMMON STOCK, payable June li, 1956 to
shareholders of record May 10,
1956.

April 27, 1956.

the

1956
declared

30,

of Reorganiza¬
Company. , /

Executive Vice President and

„

has

Plan

the

H. W.

•

26,

Directors

be mailed.

until

been

securities to which

/ those holders

May 10, 1956.
Holders of the old stock

holders of the old

Company

per

'the Common Stock

clared payable June 15, 1956,
to stockholders of record

.IMPORTANT

This dividend will

quarterly dividend of
twenty-five cents (25tf) per

SAFETY

Pennsylvania

con¬

May 2, 1956.

stock

Corporation has
declared

MUU.lxtK

payable

1956, to stock¬

Dividend

Notice

holders of record at close
of business

The

May 15,1956.

Board

Electrochemical

Directors

Company

1956, declared dividends

Common Dividend No. 146

the

The Board of Directors

April 24, 1956, declared

quarterly

the

stock of this

common

has been declared

stockholders of record

June 15,

the close of business

May 7, 1956.

payable

1956, to stock¬

holders of record at close

25% Stock Dividend
April 27, 1956, the Board of Directors declared

25% stock

dividend payable in shares of capital stock of the Company on

June 18, 1956, to stockholders of record at the close of business

of business June 1,

per

$4.25 Cumulative Preferred

FIRE INSURANCE
share
Stock

the

business

COMPANY
CF PITTSBURGH,

June

PA.

1956./

Corporation

dividend of 50 Cents per share payable June 9, 1956, to

NATIONAL UNION

27,

payable June 28, 1956, to stockholders of
record

Cash Dividend No. 181

Hooker

April

follows:

Quarterly dividend of $1.0625
on

A dividend of $1.00 per

Quarterly dividend of $.25

per

the Common Stock payable May 25, 1956,
to

stockholders

business

May

record

the

pany

1956.

ANSLEY WILCOX

138'" DIVIDEND DECLARATION
The Beard of Directors of this

II, Secretary

today declared

dend of
on

the

Fifty Cents (50fi)

shara

paid June 21, 1956

stockholders

com¬

cash divi¬

capital stock. This cash divi¬

dend will be

1956.

C. Allan Fee,

of record

business

June

th«

195&

Vice President and Secretary

May 7, 1956.

W. D. Bickham, Secretary

April 26, 1956

HOOKER ELECTROCHEMICAL COMPANY
1

Niagara FolW, N. Y.

Treasurer

May 1, 1956

The Commercial and Financial

Chronicle.... Thursday, May 3, 1956

(2176)

bill

Board's

Credit

BUSINESS BUZZ

will be cited

of the Hoover Commission rec¬

ommendations

cited

will

political

the

agricul¬

the

field."

credit

tural
•

•

passes,

"carrying out

cam¬

paign.

Capital

from the Nation'*

that

All

And You

Behind-the-Scene

them

comes

these

buck,

last

sharp

guys

agencies

lending

government

and the Farm
approved. The
PCC's are to be abolished and
are to be merged with the Fed¬
eral intermediate credit banks.

ways

magnitude of $100
million—but that isn't news.

funds in the

ever.

point any practical
with the recom¬
mendations of the Hoover Com¬

individual ;

mission comes to an

tax

income

legally and directly in¬
graft. In fact, it is

not

dividual

proposed by act of Congress to
make it strictly Supreme Courtproof legal.
sure,

tax-paying privatelyowned banking institutions. The
business of these blokes in the
the

with

government institu¬
up. Their life is even

protected
tions goes

with

And

secure.

promotions and in

business goes

roundabout

this

the

way,

Farm Credit

The

"Merger"

of this story

beginnings

back 21 years ago when un¬
der Henry Morgenthau, Jr., as
Governor of the
Farm Credit
Administration and President

F. D.

the

Roosevelt, Congress passed
Credit Act of 1935.

Farm

envisioned

Act

That

! dream of setting
on

>•

••

«,

known

institutions

PCA's) that even R. B.

seed
nice
12 production

in
that
the
consisted of the

green

stuff. The

$120
million of this seed stock. Their
method

successful

horticulture

nance

setting

scattered

all

consisted

farmer

associations

around

depositing

fi¬

farm

local

these

credit

production
and

had

corporations

eredit

the

each

land,

nice

chunk of government bonds. The

PCA's clipped the
lived

thereon

coupons

until

they

and
got

established with some money of
their

taKe

wouia

tions

from

the

income

tax

money

markets

and

the

antedate

would remain put in
the system. And then the capital
would be retired and it wouldn't
be retired. Some
$160 million
would remain as a contingent
fund which could be drawn at
the demand of the Farm Credit
Board to further fertilize "co¬
Act)

talized

the

corporation
a
tap on the
of the land

government-capi¬

Federal

intermediate

credit banks and have paid back

something
100%

between

the

dough

90%
sunk

and

into

them 21 years ago by the Treas¬
ury

through the PCC's.

has

instance, the Farm Credit
proposed that it exempt
itself, despite its huge Federal

Board

—

With¬
out relating the abstruse tech¬
nicalities, the repayment method

available for the purpose.

arithmetical
ratio of about this: Farm Credit
Administration could not merely
works

out

eat its cake and
could

eat

have it too;

and

have

some¬

PCA's in relation to the Farm
Administration

Credit

are

respect like national banks
to the Comptroller

one

relation

the

Currency.

The

one

supervised by the latter, or ex¬
amined. Banks pay for the ex¬
penses

of examination. The FCB

provide that the Treas¬
ury-created surplus earnings
could
be
u s e d
to
pay
for

would

expenses

examination

PCA's,

supervision

and

the

sys¬

and

the

PCA's rather than to the Treas¬

want

fund

revolving

callable from the Treasury from

million

$130

try it.

thing

the

increase

not

did

will

comprehend the ins and outs of
the
proposal.
The
delicious

dinner

obscur¬

technical explana¬
bill, using most pro¬
language,
flatters
the

highly

rare

pipe

Congressman

and

who

the

June 4, 1956

election.

Bond

"Hoover

One

what they

sure

rise

are

each

one

that

day:

can

the

sun

the

sum¬

Hollow

Sleepy

1956 (Philadelphia, Pa.)

of Philadelphia

Accomplishment"

thing

New York

Investment Traders Association

Country Club, Scarborough, N.Y.
June 8,

Fed¬

(New York City)

Club

outing

mer

Exchange annual

June 8, 1956

Federal

the

and

(Chicago, 111.)

Midwest Stock

eral subsidy."

Congressmen

less

understand

Country Club.

ex¬

production credit

institutions

merged

Finan¬

Municipal Bond Club of New
York outing at the Westchester

business

intermediate credit banks to the

just what in the heck are you

And

tne

Mass.)

convention at the

(New York City)

June 1, 1956

"Governor,

say:

talking about?"

Budget

the

corporations

It would

admit his ignorance and

would

serves

Club.

May 20-24, 1956 (Boston,
National Federation of

tion of the

members of Congress.

pressly agreed with the philos¬
ophy of subsidy contained in
the
bill, declaring
that "we
have no objection to donating
the
nresent
surplus and re¬

antism, is that its disorganized

found

out

Director

Gov. Tootell's ex¬
the* bill, a mag¬

exercise

nificent

government

May 18 at the Richland

Country

Eisenhower Administration. The

about

17 at the Hillwood
Club; golf and other
activities followed by

May

ner

three

the

outing
Country

summer

Whitemarsh

Club, Whitemarsh, Pa.
as

will

TRADING MARKETS

Farm

poor

help

can

cooperatives exempt
taxation, from fall¬

■

from income

Fashion Park

Geo. E. Keith Co.

helping the poor farmers get
-

Indian Head Mills

ing down miserably on the job
of

Security Dealers of Nashville
annual party: cocktails and din¬

Sheraton Plaza.

those

points, the bill has the blessing
of the economy-minded, get the

very

(Nashville, Tenn.)

May 17-18,1956

cial Analysts

get
through
because
few members of even the
committees on agriculture can

largely

planation

Club, Linworth, Ohio.

Country

Subsidy

amended

million.

$160

Stock

outing at the Brookside

outdoor

Ad¬

Eisenhower

the

Third,

ministration

(Columbus, Ohio)
& Bond Club

May 17, 1956

Country

ury.

Favors

the

surplus
earned
capital would
eventual "owning"

their

banks,

with government

would

Champions

the

course

thing

Wright

Columbus

People, if any one ever did

and

thing like three cakes.

raid

Fearsome,
by

nual

annual

be damnated on the floor of the

dare

This, incidentally, is $30 mil¬
lion
more
than is at present

for

Drooley

the
Add to Revolving Fund

banks

sug¬

plan

is, such a scheme,
never concocted, would
despite
its technicality, be sure to rate
a
column nationally by some
struse

8th An¬
Memorial
Golf
Tournament, at Leewood Golf
Club, Crestwood, N. Y.

Stock Exchange Firms

second, the bill was rigged so
that in the event of liquida¬
tion of the intermediate credit

tematically the resources of the
Federal Reserve System.
Ab¬

Senate

operative credit."

this

respects

commercial

May 15, 1956 (New York City)
Cashiers Division Association of

capital, from budgetary controls.

imaginable

some

For

credit

many

The
Administration
objections.

essarily.

and

Analogy

gests

Maryland.

Objections

Not that it will all pass, nec¬

growing

Full text of Commercial and Financial Chronicle : May 3, 1956, Vol. 183, No. 5530

FRASER